Bearish investors may be using Goldman Sachs’ loan renegotiation with CIT Group to hurt the former’s stock, Cramer said during Tuesday’s Stop Trading!, as well as the market.
There’s been “chatter” that a big loss is coming with CIT , Cramer said, but “I don’t believe it.” He thinks instead that bears are drumming up negative sentiment from which to profit, and a market leader like Goldman is the perfect target.
“The bears know if they can knock it down,” Cramer said, “they can really get some downside pressure on the market.”
Elsewhere in stocks, St. Jude Medical’s negative pre-announcement of third-quarter earnings has hit other medical-device companies as well. Boston Scientific doesn’t deserve the mistreatment, Cramer said, as he thinks that company is taking share from STJ.
“They all go down,” Cramer said, “until you find out that one’s better than the other.”
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