A whole new set of unexpected bull markets are rolling out, Cramer said Wednesday. Despite Washington’s pressure on Wall Street and the slowdown in China, some stocks seem to being quite well.
“Sectors that have been left for dead are rising from the grave: media, cable, commercial real estate, housing, the regional banks, the drug stocks,” he said, adding autos and biotech too, “all groups the bears told us needed to be put out of their misery in 2010.”
First media, where Time Warner and News Corp. just reported two of the best numbers seen during this earnings period. And believe it or not The New York Times Co. at one point today was an S&P 500 leader. Also, it looks like we’ve seen the genuine bottoms in Gannett and McClatchy, Cramer said. He thinks the sector is starting to get bullish.
Then there’s cable, an industry that was supposed to be slowing down. But Comcast’s numbers were amazing, Cramer said, and its business is speeding up. At the same time, VerizonCommunications and The DIRECTV Group are both doing just fine.
How about commercial real estate, which according to the bears was to be 2010’s biggest catastrophe? Reports say that commercial real estate investment trust managers are lamenting that they raised so much equity but there is nothing for sale. If there is money and there are banks that have to get rid of bad loans or bad commercial mortgage securitizations, Cramer said, you’d think buyers would be connected with the distressed sellers.
The housing sector seems to have taken a turn for the better thanks to Florida, Nevada, California and even New York, with home sales producing impressive returns in the real-estate market. Cramer thinks the industry could work its way back to boom level.
As for the autos, Toyota Motor’s recall is probably going to be far more damaging than most people realize, Cramer said. But TM’s pain will be a gain for domestic automakers, with Ford Motor going still higher.
Now that Wall Street reform seems to be dead in the water, investment banks like Goldman Sachs and JPMorgan Chase are on the move. And earnings from the regional banks were the best of this period. Everyone from Huntington Bancshares to Fifth Third Bancorp to Marshall & Ilsley to PNC Financial Services Group is doing really well.
The drug stocks are back since the special election in Massachusetts put an end to the Democratic supermajority in Congress, and put healthcare reform on the backburner. Biotech is on fire, Cramer said. He thinks it’s the best-performing stock group of the year.
The bottom line: Some stocks are working despite all predictions to the contrary – even Cramer’s. And that gives us a number of plays, he said, “to rotate into while we wait for Washington and Beijing to take their collective jackboots off the market’s jugular.”
Cramer's charitable trust owns JPMorgan Chase and Goldman Sachs.
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