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NEW YORK (
) -- The reshuffling of the
Dow Jones Industrial Average
makes a big statement about our nation, Jim Cramer said on
Cramer said that while the
S&P 500 still remains the benchmark to beat on Wall Street, today's changes in the Dow reflect our changing economy and priorities.
So exactly what changed?
Bank of America
(BAC) were all dropped from the index, replaced by
Cramer said Alcoa remains a great company in a bad industry. Aluminum remains an important metal for everything from autos and aerospace to iPads, he noted. However, in the eyes of the Dow Jones industrials, it's the international influence of Nike's footwear that investors should be watching. As for HP, our nation and the world don't seem to care much about PCs anymore, so it's out with the old, said Cramer. Likewise with Bank of America, a symbol of financial engineering and the mortgages that almost toppled our nation's financial system.
Goldman Sachs, on the other hand, doesn't have any mortgages, and Visa is more of a technology company than a financial, helping to bring the world into the digital age and away from paper money in favor of the all-mighty debit card.
Cramer said he doesn't expect any of these new Dow additions to see much of a bump for their new anointed status. He said the markets continue to move on international issues, as they did again today with more positive news on the Chinese recovery.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Ed Ponsi over the direction of the emerging markets, mainly India, as seen through the
WisdomTree India Earnings ETF
, which is currently down over 19% for the year thanks to rising interest rates here at home stifling growth around the globe. According to Ponsi, however, that trend may be about to change.
Looking at a daily chart of the ETF, Ponsi noted that after bottoming on Sept. 4, the fund has since shot up over $2. That's impressive for a $13 stock. He also noted the MACD momentum indicator is signaling a bullish crossover, at the same time the fund broke through its long-term trend line and, just today, through its 50-day moving average. All those points add up to a big deal for technicians, Ponsi concluded.