This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here TV Recap: Viewing Stocks Through a Fed Prism

On Tuesday, retail stocks got an upgrade and went up. A lot of market players see a stock price and think the quarter must have been good, but in fact "the Saks (SKS) quarter was not that good," he said. "There was no gross margin improvement and Saks is now annualizing some really hard compares." That stock, Cramer said, has gone from being a strong buy in his book to being a hold.

" Lowe's (LOW - Get Report) had nothing good to say," he continued. "They did mention they were going to annualize easy comparisons, but a lot of that is because lumber costs have come down and some of that is also because the northeast had better weather than last year."

The stock went up from $26 to $29 despite this because "the Fed has changed the psychology, and their downtick, which is basically what they predicted, is now considered to be better with a notion that there could be someone to rescue Lowe's," Cramer explained.

Historically, retail has been "a fabulous place" to be when the Fed stops raising rates and starts cutting. "People need to think of that prism," he said. "They can't just look at the company," because otherwise they'd be shorting Lowe's.

"What I'm emphasizing is use the lesson I've learned, which is that don't be so granular," Cramer advised. "Don't look at Lowe's and puzzle over why it is going up. Look at it and understand that we've flipped in the ways we look at things."
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SKS $0.00 0.00%
LOW $75.40 -2.00%
TOL $27.52 -5.70%
AAPL $95.03 -2.90%
FB $117.52 7.90%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs