Just as when Doug Kass says, "Tell me something I don't know," I think this market knows something we don't know, either about a turn in commercial real estate to rival that of residential -- the real estate investment trusts are holding in well -- or a second stimulus plan, a real one that will put more people to work.
The employment numbers aren't good enough to merit this kind of rally, and we know the layoffs for June were preposterously high. We know that the auto build will be slightly better than expected a few months ago, but it's still pathetic and the auto idlings are about to start.
Still, the rails like Union Pacific (NYSE: UNP) (Cramer's Take) and the coppers and minerals like Freeport (NYSE: FCX) (Cramer's Take) are so, so strong that it makes me feel like something's imminent.
Of course, it could just be a gigantic inflow for the beginning of the month, but this market, as exhibited by the utilities and by the REITS and industrials and perhaps most important by the corporate bonds, makes me feel like we have a growth-with-little-inflation rally going on, and that's the best kind of rally you can have.
Random musings: Pending home sales data yesterday is consistent with the bottom and should compel some serious buying in Bank of America (NYSE: BAC) (Cramer's Take), JPMorgan (NYSE: JPM) (Cramer's Take) and Wells Fargo (NYSE: WFC) (Cramer's Take), which have lagged.
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Bank of America, JPMorgan and Wells Fargo.
The Week in Preview: Beige Book, Smithfield Foods, Talbots, Men's Wearhouse
Krispy Kreme: Time to Take a Chance?
Comfort Zone Investing: M&A: Good News ... or Bad?
Reader Comments (Page 1 of 1)
7-02-2009 @ 11:11AM
david french said...
Well for starters Cramer me lad. Why are you looking at the unemployment figures. They are a lagging indicator. Look at GDP growth. Alot of companies like BAC are already (or have already) turned the corner. As for the stimulus. You don't just snap your fingers and whoopee billions end up in consumers hands. Outside of banking it takes 6-12 months to get money to get into projects to get them running (infrastructure, schools etc.) to see any benefit. What do you think..Obama is down on an NYC subway platform handing out cash. Does anyone in the news media even have an economics degree anymore?
7-02-2009 @ 1:37PM
robert said...
If what Cramer is saying is correct, this would be the greatest insider trading scandal ever. Lets postulate, the government is going to change the course of the stock market and only the companies that benefit and the people that give the money know?
7-03-2009 @ 2:36AM
beachpaul said...
Well, here we are back @ DOW 8200. Will the floor continue to hold? Will commercial REITS make their dividend payments? That is why they exist, isn't it Jim? You are on the limb, Jim? Let's see if it is as strong as the DOW floor.
7-03-2009 @ 2:42AM
beachpaul said...
Like you and a used car salesman, it knows there is an ass for every seat.