This Day On The Street
Continue to site
ADVERTISEMENT
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

Cramer: You Can't Fight CAT

NEW YORK ( TheStreet --

Debra Borchardt:

Caterpillar (CAT - Get Report) reported their earnings on Monday. The revenue was way down and their guidance was a huge range, 7 to 9 dollars. When you looked at that, that was not a very good report. However, the market has reacted kindly to them.

Jim Cramer:

Right. I think that what we have to recognize is that this is a different kind of market. When those numbers came out and I studied the headlines and studied the outlook, I said the stocks should be down 2 or 3 [dollars]. In 2012 this stock would have been down 3 [dollars], and now it's up. And that has to do with the conviction of this market that things are getting better, and I don't want to fight that.

I know that what will happen is that people will say this is unnatural and it's wrong, but I've always felt that you have to understand the coloration of each stock market that you're in. This stock market has a very forgiving attitude. This stock market is predicated on the idea that things are getting better. It's also predicated by the idea that the Federal Reserve is going to keep rates low. We've got to be careful there. That I do worry about. But this was the Exhibit A in what I call the 2013 Bull Market.

Debra Borchardt:

All right. Well it was interesting when, as you talk about, when you start to parse what they said because they were totally on the fence. They were, "...encouraged with the signs of improvement in the economy but we're cautious," and they would say something good. Then they'd say something bad.

Jim Cramer:

That's exactly what used to drive the stock down because we would only look at what was bad. We would say, "OK, look. They've put up this positive news but forget about it because the negatives are there," and we're not looking at the negatives right now. Now someone could say, "Well that's the beginning of a big top," and I always avoid sweeping characterizations. I look at Caterpillar and I say, "OK. People feel things are getting better. Who am I to say that that's not the case?" Honeywell (HON - Get Report) came out and said that Asia's getting much better. Europe is flattening out. U.S. is good. So I've got Honeywell saying that. I've got Caterpillar saying that. I see a lot of companies that are basically saying that the world is getting in a better place, so I am reluctant to be very negative.
1 of 2

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CAT $84.38 0.00%
HON $102.51 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs