TheStreet.com 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) 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."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV