This Day On The Street
Continue to site
ADVERTISEMENT
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

Jim Cramer's 'Mad Money' Recap: Supply, Demand and the Bull

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK (TheStreet) -- What continues to drive this bull market higher? That was the question Jim Cramer asked his "Mad Money"  viewers Monday. His answer? Good, old-fashioned supply and demand.

Cramer said for stocks like Exxon Mobil (XOM), there simply aren't enough shares to satisfy a growing demand. Exxon is a changed company, one that will deliver 5% production growth in 2014. Add that to the glowing endorsement of billionaire Warren Buffett, increasing refining margins and a very successful stock buyback program and, Cramer said, it's easy to see why Exxon was able to pop 2% in today's trading, even with its standing as one of the world's biggest companies.

But what's happening at Exxon is emblematic of other stocks in the market, Cramer continued. All of the stocks focusing on social, mobile and the cloud are have been roaring, with names including Netflix (NFLX), Google (GOOG), a stock which Cramer owns for his charitable trust, Action Alerts PLUS. and Facebook (FB) regularly making new highs. The problem here? Not enough companies in their respective spaces.

Cramer said that back in the dot-com days it was easy to find 10 or 12 companies doing the exact same thing. But in today's market there is only one Facebook, one Twitter (TWTR) one Netflix and one Amazon.com (AMZN) and so they dominate their categories.

Then there are the mergers and acquisitions, Cramer continued. These two create shortages of stock to buy as, one by one, good companies are getting snapped up in deals that are instantly accretive to the earnings of the acquirers.

All of these items individually might not sound like much, Cramer concluded, but taken as a whole, they're a big part of why money keeps pouring into the markets as interest rates get ready to head high. Even Washington can't undo the buying we've been seeing.

Executive Decision: Joe Papa

For his "Executive Decision" segment, Cramer sat down with Joe Papa, chairman, president and CEO of Perrigo (PRGO), a stock that's up 41% so far in 2013 and 23% since Cramer last spoke with Papa on Aug. 15.

1 of 3

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GE $26.80 0.00%
JCI $52.48 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs