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

Looking for a Thesis; Day 1 of Big Change: Cramer's Best Blogs

So, to put it all together, we have lost the housing thesis, and we have some potential replacements, but they aren't yet able to take up the slack. Meanwhile, the consumer-packaged-goods stocks have given you a dead-cat bounce before what I fear will be still one more leg down.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.

Day 1 of the Big Change

Posted at 12:54 p.m. EDT on Thursday, June 20

The market sometimes is not as dumb as it can look.

Today we are witnessing a group of stocks performing better than they have in ages, maybe better, relative to the market any time in the last six years.

I am talking about the regional banks like BB&T (BBT), Huntington Bank (HBAN), M&T Bank (MTB) and Zions (ZION). I am talking about bedrock local banks, the ones that have been a huge drag, ones that are riddling peoples' portfolios from the old days. Take a First Horizon (FHN). That stock was at $37 a few years ago. Now it is at $11. Huntington went $24 down to $7. Or KeyCorp (KEY), at $39 goes to $10.

And now they are going up? How can that be? With rates going higher?

You bet, and this move makes all the sense in the world. That's what's amazing to me. In the chaos that was the aftermath of the Fed, people figured out that now, at last, these banks and hundreds of others like them are going to be allowed to make the money that the Fed denied them for so long.

Banks, which are part of the financial cohort that represents fully 16% of the S&P, second after tech, have been a huge drag on the index. That's because banks make money in three ways: fees for services, loans and certificate of deposits. Now, fees have been terrific, especially when they keep getting raised all the time, as we know all too well. But loans and CDs? They have been horrendous. There hasn't been enough profit margin in loans and there's not been enough spread between what a bank pays you for your deposits and where it can invest those dollars.

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