In this market, the slightest good news can drive a stock higher for days, Jim Cramer told Mad Money viewers Tuesday. And after 40 years on Wall Street, Cramer said he had never seen a market move as slowly as this one.
It seems like every day we’re discovering or rediscovering stocks that are doing better now as vaccinations ramp up and COVID-19 may finally be on the run. However, as investors remain cautious, some of these revelations take place over several days. In fact, some stocks don’t move at all.
Cramer spoke to Norwegian Cruise Line Holdings Monday night ((NCLH) – Get the report CEO Frank Del Rio about it The company’s ongoing battle with the CDC over when cruise ships can reopen. Despite the fact that NCL and other cruise lines still can’t sail, stocks rebounded on Tuesday. Norwegian stocks are up 14% this week alone, despite not having sailed from a US port in nearly 18 months. The stock rose 4.61% in regular trading to close at $ 31.08. In the after-hour session it rose by a further 2.4%.
Everyone knows restaurants will do better when the economy reopens, but Tuesday Yum Brands does ((YUM) – Get the report rose 3.1% on analyst upgrade from sell to hold. Shares in Chipotle Mexican Grill ((CMG) – Get the report also pinned another 2.4%.
All of these stocks are slowly driving the markets higher, Cramer concluded, as investor confidence builds along with our vaccination scores.
On Tuesday on Wall Street The indices fell, the day after stocks rose to all-time highs on optimism about an economic recovery in the US
The Dow Jones Industrial Average fell 97 points, or 0.29%, to 33,430. The S&P 500, which hit an intraday record at the beginning of the session, was down 0.1% and the tech-heavy Nasdaq down 0.05%.
The Dow and S&P 500 closed on records on Monday After U.S. employers put most workers on payroll within seven months and other data provided evidence that the economy was improving.
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Executive decision: Honeywell International
In his first “Executive Decision” segment, Cramer spoke to John Waldron, President and CEO of Honeywell International ((YOU) – Get the report The Security and Productivity Solutions division will discuss with musicians and technology entrepreneurs the collaboration that led to Xupermask, a new face covering that offers both ventilation and filtration with two interchangeable H12 HEPA filters.
Will.i.am said the inspiration for the Xupermask came from his own experience of needing a quality mask that was safe but also had style. He said the futuristic design of Xupermask came straight from the Hollywood designers who outfitted Spiderman and Black Panther.
Waldron added that Honeywell was able to take the designs from Will.i.am and combine them with Honeywell’s technical expertise from decades of manufacturing N95 and N99 respirators. The result was a patented filtration design that offers style, comfort and safety.
Will.i.am said he expects masks to be around long after COVID-19, as is the case in many Asian countries. The Xupermask will be available this week on Xupermask.com.
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Outside of normal readings
In his “Off The Charts” segment, Cramer asked his colleague Tom DeMark whether the market rally could soon run out of breath.
DeMark first looked at a daily chart of the S&P 500 and found that the index rallied 7% in both February and March that lasted nine days before the price reversal. Based on today’s market, with a 6-day upward pattern, he believed there was likely only two or three days of upward movement left.
However, the same does not apply to the Nasdaq. DeMark believed this tech-heavy index could counter-rally to $ 347.72, with the Dow Jones Industrial Average and S&P giving up their gains and the Nasdaq games catching up.
DeMark also looked at Bitcoin’s daily chart, which he believed could hit $ 66,347, or 14% gain from current levels, before seeing the next leg lower.
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At the time of publication, Cramer’s Action Alerts PLUS had no position in the stocks mentioned.