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Why Intel, JPMorgan Lost Their Bellwether Status

The days of bellwether companies holding their respective sectors hostage seems to be over, Cramer said Wednesday. That’s no longer possible in this global economy.

Witness the effect Inteland JPMorgan Chase had on the market after reporting their earnings. Or more to the point, their lack of effect. Despite announcing what Cramer called “fine numbers,” these stocks sunk lower. The bears immediately tried to jump on investors’ lackluster reaction, saying the market as a whole couldn’t rally higher without the largest chipmaker and the largest bank in the US. But their theory didn’t exactly play out.

Rising copper and gold prices pushed up the mineral stocks. CSX’s strong quarter catalyzed the rail stocks, in addition to the stocks of the freight they carry, including timber, fertilizer, coals and the metals. Intel, a tech, couldn’t get in the way of Cisco Systems , Cree , Qualcomm and Google . Or Apple and Salesforce.com , for that matter. And Prudential Financial , State Street and Travelers spiked in the face of JPMorgan’s decline.

“We shoot two generals and what happens?” Cramer asked. “There’s 10 behind them ready to take up the fight.”

That’s because there are so many different factors at work in this market, not even Intel and JPMorgan can slow things down. And why should they? The former has been caught up in “Apple’s creative destruction tornado” of iPads, iPhones and iPods, Cramer said, while the other lacks the international exposure of Citigroup . And there’s little point to taking cues from JPM when worldwide growth is fueling companies like DuPont , PPG Industries and Caterpillar .

That’s why Cramer urged viewers away from the bears’ outdated arguments. They can’t afford to “impute too much to the actions of a few big companies,” he said, “and then we miss the action in the vast nation of stocks.”

“This is a big reason why so many people keep missing out on this huge rally,” Cramer said.

When this story published, Cramer’s charitable trust owned Apple, Cisco Systems, Intel, JPMorgan Chase and Prudential Financial.

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