Cramer says 'innovation and self-help' allow stocks to resist the pull of the bond market

• CNBC's Jim Cramer said Wall Street felt the effects of rising Treasury yields and Federal Reserve Chair Jerome Powell's comments that teased more rate hikes.
• He said companies with innovative technology and ones that are taking "self-help" measures are better off than most in these market conditions.

CNBC's Jim Cramer lamented Thursday's market action, saying Wall Street felt the effects of rising Treasury yields and Federal Reserve Chair Jerome Powell's comments that teased more rate hikes. To Cramer, stocks able to do well in these uncertain conditions have strong innovation and effective cost-saving measures.

"Innovation and self-help are what allows stocks to buck the pull of the bond market," he said. "I think we actually could've had one more up day — we would have, I think, if it weren't for Jay Powell's comments."

Cramer said many stocks that can "defeat the downward pull of interest rates" need a good secular growth story — such as artificial intelligence — or superior technology.

He pointed to names in the "Magnificent Seven," including Microsoft, which he said is seeing its stock soar because unlike some touting the potential of artificial intelligence, it is actually making money off of its AI products. Cramer added that Nvidia is dominant in the AI chip landscape, and Amazon has been using AI for years. He said Meta and Alphabet are effectively using AI to bolster ad sales, which are higher than many traditional media channels. He also said Apple's products are "special" enough to withstand pressures from the bond market.

Cramer then highlighted Disney, which he said is managing a powerful turnaround despite bond market stress. Cramer was impressed by the company's plan to save $7.5 billion, as well as the fact that it added seven million subscribers to Disney+ over the past quarter.

"Remember the names that were doing well up until Powell delivered the coup de grace, even the ones that did well this very morning," he said. "Because those will be the first to bounce back when the smoke clears, and, after a few days, it will clear."

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple, Alphabet, Microsoft, Amazon, Meta, Nvidia and Disney.

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