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

Cramer: Growth Stocks Have Reason to Rally

Editor's Note: This article was originally published at 7:12 a.m. ET on Real Money on May 8. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( Real Money) -- Thank you Whole Foods (WFM - Get Report)! Thank you Walt Disney (DIS - Get Report)!

We went out last night trying to figure out which track to be in and which horses to bet on. The early portion of yesterday's trading was a victory for the industrials. But the latter part went to the consumer products players, which managed to put on a pretty stellar show. That shift was probably a reflection of the enormity of Emerson's (EMR) miss more than of anything good done at General Mills (GIS) or Clorox (CLX) or Dr Pepper Snapple (DPS), although the latter two made you want to buy them after you listened to their CEOs on "Mad Money."

Banks, of course, did well the whole day and gained steam. Techs started out hot and came out cold. Oils? Not bad, Take a look at Exxon (XOM), which, after its miserable quarter, is now nicely above where it was when it reported. Doesn't hurt that EOG (EOG) blew the doors off the operation.

But what we needed was something that reignited the growth-stock group. In a true bull market like we are in, one that has been confirmed by a 20% climb from the bottom in November, you need to keep all the balls in the air. The discussion is never about which stocks got hammered the worst. Or which sectors slipped and slopped in zero-sum fashion vs, the winners. That was the way we saw this market at the beginning of the bull. If drugs were up, cyclicals were down. Banks gave it up and foods took it.

That's not the case anymore. Now it is just sector move, sector rest.

Which brings me to last night's business, the shockingly fabulous number that Whole Foods delivered on top of the excellent number that Disney put on, although the latter will have nitpickers because of problems in plain-old broadcasting that will only come as a surprise to the troglodytes who don't care to know the available facts ahead of time.

Whole Foods was amazing. Do you know what it is like to repeal a whole new and awful misperception that the bloom is off the rose? That's what Whole Foods had to do. They had to prove that the business wasn't decelerating or that they weren't getting their butts kicked by Kroger (KRO) and Trader Joe's, which had become the perception after last quarter's disappointment. They had to explain all over again why there really is room for a tripling of the store count. They had to discuss whether the desire for organic food hasn't cooled, a perception that Hain Celestial (HAIN) is fighting with right now.

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


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs