Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK ( TheStreet) -- The markets can't afford to lose the consumer, Jim Cramer told his "Mad Money" TV show viewers Wednesday. He spoke after Macy's (M) reported disappointing earnings, raising doubts the American consumer could continue to bolster stocks.
Cramer called Macy's a national barometer for the health of the consumer, so when sales are sluggish there it's only natural that stocks from Home Depot (HD) to Sherwin-Williams (SHW) and Whirlpool (WHR) would fall in sympathy.
The slump at Macy's may only be temporary, said Cramer, but given how many hurdles the consumer is facing, from rising payroll taxes and interest rates on mortgages to fears over Obamacare and higher gas prices, it's easy to see why the markets are spooked.There are still bright spots in the markets, though, mainly Europe, China and Japan, along with specific stocks such as Boeing (BA). But those may not be enough to keep stocks at their lofty levels, especially if more bad consumer news begins to emerge, said Cramer. Cramer said the Macy's news should cause investors to be more cautious as things may continue to worsen before they get better.
Make Derivatives TransparentWithout a spotlight on the markets, it's too easy for those looking to commit fraud to cover their tracks, said Cramer, as he opined on the indictment of two former JPMorgan Chase (JPM) employees. JPMorgan is currently a stock Cramer owns for his charitable trust,
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV