Cramer calls a 'Captain Obvious' rally in infrastructure stocks, says buyers beware

Published Mon, Nov 8 202110:35 AM ESTUpdated Mon, Nov 8 202110:56 AM EST

CNBC's Jim Cramer warned investors who want to buy Monday's rally in infrastructure stocks, which were getting a big boost from the House passing and sending to President Joe Biden a more than $1 trillion bipartisan infrastructure bill. Cramer pointed out that many of these so-called infrastructure plays have been going up for weeks as the White House pushed the House to take up the bill, which the Senate passed back in August . Biden is expected to sign the legislation in the days ahead. Thirteen House Republicans supported the infrastructure bill. Six Democrats voted against it. The measure passed in a 228-206 vote late Friday night. "The president just never stopped talking about this thing. It was just endless," Cramer said. "Many people did realize that it could pass. They're in the stocks." But he said these stocks might not have legs in the coming weeks because a lot of the infrastructure lift in these names has already happened. "I'm calling this obvious market," Cramer said on "Squawk on the Street," as shares of heavy equipment giant Caterpillar and steel company Nucor were soaring in premarket trading. Both opened higher on Wall Street. Nucor, which Cramer has been covering all year, has more than doubled its share price year to date. "There's a catalyst buy Caterpillar and Nucor has been up day after day after day," the "Mad Money" host added. "Obvious wins in this market." Shares of Caterpillar have gained more than 17% in 2021. In a Monday note to clients, Baird named Caterpillar a " fresh pick " following the passage of the infrastructure bill and said the stock is underappreciated. Baird has a per-share price target of $290 on CAT, which would be roughly 40% higher than Friday's close. Cramer also noted gains in the Global X U.S. Infrastructure Investment ETF . The exchange-traded fund, with trades under the ticker symbol PAVE, hit a record high Monday morning. The ETF's top holdings include stocks like Nucor and Vulcan Materials. It does not own Caterpillar. "This is ridiculous. Everybody knew it [infrastructure bill] was going to pass," Cramer said, pointing out that many of the electric vehicle charging stocks were advancing as well. " ChargePoint is getting another day in the sun. … People make money today, and then tomorrow we forget about the infrastructure bill" and investors get "stuck" in these names, he said. "Shouldn't you have bought ChargePoint last week? 'Captain Obvious,'" Cramer added, referring to a funny hotel ad campaign .

A Caterpillar (Cat) Excavator is seen working at a construction site near the New York Harbor in Brooklyn, New York, March 4, 2021.

Brendan McDermid | Reuters