Stocks generating positive pin action have been a lot more powerful than the stocks generating negative pin action this earnings season, CNBC's Jim Cramer said Monday.
The action buttressed positive activity across the stock market helping the Dow Jones Industrial Average to rise more than 57 points, the S&P 500 climb 0.69% and the tech-heavy Nasdaq Composite rally 0.91% by session close.
"We're getting some tremendous positive pin action here with some very important companies putting up excellent results and it's reverberating," the "Mad Money" host said. "Their stocks roar higher and drag whole groups with them as we've seen ... I've gotta tell you, that's pretty encouraging."
By pin action, such as in bowling, Cramer's referring to the market phenomenon in which shares of one company influence the stock action of other businesses in related sectors.
Sales of the iPhone 11 are helping shares of Apple break out to new all-time highs, he said. The stock turned in a record close, the 13th time this month according to FactSet, on Monday above $240 per share. On top of better-than-predicted phone sales, Cramer gave CEO Tim Cook credit for talking with leaders from both the United States and China "to navigate his way through the trade war" and said it appears to be working.
Apple's stock is up nearly 11% since it first revealed its new iPhone more than a month ago. Cramer said its helping the value of several semiconductor companies to rise as well, including Cirrus Logic, Texas Instruments, Broadcom and Skyworks Solutions.
Those four names rose Monday, with Cirrus leading the group with a gain of 2.6%. The stocks, with the exception of Broadcom, have also rallied since mid-September with Skyworks Solutions surging 12%, according to FactSet.
"In other words, Cook's not waiting for the trade talks to be resolved. ... He's on the the front lines, front lines of the trade war trying to calm things down," Cramer said. "A rally in these stocks can trigger a dramatic move in the whole Nasdaq. It's a mammoth breakout that silences the macro junkies" worried about "a big economic slowdown that's pretty hard to find if you're examining most domestically oriented companies."
Cramer also noted the impact that J.P. Morgan Chase, which posted record revenue in its third-quarter earnings report last Tuesday, has on the banking sector in the market. The stock rallied 2.5% in Monday's session and Cramer said the move influenced a number of other bank stocks.
"The stock of J.P. Morgan is ridiculously cheap. You can't have a real bank rally without this one, it's the best of the best," Cramer said. "That's why the stock's fabulous move today was a locomotive that pulled Citigroup, it pulled Bank of America and it pulled Morgan Stanley along with it."
Disclosure: Cramer's charitable trust owns shares of Apple, Honeywell, Citigroup and JPMorgan.