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

Politicians Are a Losing Cause; Why Isn't the Market Up More?: Jim Cramer's Best Blogs

Why Isn't the Market Up More?

Posted at 2:47 p.m. EDT on Wednesday, Oct. 16

Someone just asked me why the market isn't up more in the face of the debt deal that's been reached. Let me offer four reasons.

First, we don't know if a deal's been reached yet. What happens if House Majority Leader Eric Cantor says he can't live with the deal and tells House Speaker John Boehner that Boehner's out if he brings the compromise to the floor? What happens if Boehner says that his conscience dictates that he has to change his mind and go against the deal?
[Read: <a target="blank" data-add-tracking="true" href=""><em>Securities Regulator Targets Broker Conflicts of Interest</em></a>]

Second, we have to deal with earnings, and while they were largely good today, the numbers from Stanley Black & Decker (SWK - Get Report) took our collective breath away and drove down many industrial companies, even as the weakness was in its security division and not in its hand tools line. Don't forget how much the government shutdown has hurt outfits like Dell (DELL) and Cisco (CSCO - Get Report), both of which sell a huge amount of equipment to the government.

Third, once we get through this morass we are going to start hearing about the Fed no longer needing to buy back a lot of bonds, in part because the main reason it didn't taper was because Chairman Ben Bernanke saw this disaster in Washington coming. The reasoning is he feared he would need the mandate to buy all the bonds that could be sold by companies that couldn't own them if the U.S. defaulted.

Finally, Tuesday's sell-off snapped a four-day win streak. The market had gone up on the backs of buyers who smelled a deal even if there wasn't one initially. They were right and now they are taking profits. Business as usual.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long CSCO.

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 17,651.16 -99.75 -0.56%
S&P 500 2,048.79 -14.58 -0.71%
NASDAQ 4,721.7940 -41.43 -0.87%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs