Sometimes even Jim Cramer has to admit—the stock market is dumber than a bag of hammers.
This is exactly what he was thinking on Wednesday night when Micron reported an upside surprise and the stock immediately rose. But then as soon as the conference call began, management lowered numbers on account of sluggish chip sales.
Investors quickly realized there was more homework to be done, and it went right back down. Yet somehow the stock ultimately stabilized, closing down just 40 cents on Thursday.
That's exactly what happens when your company is located in the country with the strongest currency in the world, and they got hit hard translating overseas earnings back into dollars. They are also competing with foreign goods that can be offered at cheaper prices made in countries with cheaper currencies.