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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Jim Cramer: All of This Solid News Matters

NEW YORK (Real Money) -- Maybe, when we consider all of these stocks that are going up because the economy is gaining strength, it makes sense they're going up? When you are selling cars at a 16.4 million seasonally adjusted annual rate when prognosticators are looking for 15.8 million, as we found out Tuesday from General Motors (GM), that shows innate strength -- the kind of innate strength that says rates should be going higher. When GM sales increase by 4%, even as it had been a pretty safe bet that they wouldn't increase at all, you have a sign that things are indeed humming.

Don't forget that when Toyota (TM) had its recall problems back in 2010, sales fell 16% in the month that the bad news was announced -- and I could argue, in retrospect, that this one's much worse for General Motors. As Ford said on its call, last month started out OK, upticked midmonth and was "very strong" at the close.

Plus, the breakdown on the purchasing managers reports was very strong: new orders accelerating, inventory contracting, all in the right direction. Then add in a terrific regional report from the Texas Federal Reserve, and it adds up to 100% good news for the economy yesterday.

All of this, moreover, came on top of some very strong truck-build numbers that were surprising in their own right.

I think all of this strong economic news matters a great deal, because the market is set up for good news. The stocks that have been running are stocks that need a stronger economy, and while we had a snap-back of the former leaders yesterday -- one that I think can continue -- it was the recovery names that need this kind of economy to continue that can still lead us.

Last night, when I was signing books at Barnes & Noble, I caught a number of inquiries about how much longer these big-capitalization tech companies, the old dogs, are going to continue going up. When I hear data like yesterday's, I can see the move continuing right into the numbers. Plus, at this pace, I can't imagine that interest rates can stay as low as they are right now, and that could set up the market for the right kind of yield curve when the banks report.

Industrials, financials, techs: All are making sense, based on the data.

The only thing holding back the market? These are U.S. data, and we are dealing with international companies. But until we hear the actual earnings reports, I bet people will extrapolate and continue to take the industrials higher based on all of this good macroeconomic news.

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

Editor's Note: This article was originally published at 7:00 a.m. EST on Real Money on April 2.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,114.79 +8.09 0.05%
S&P 500 1,998.03 -1.99 -0.10%
NASDAQ 4,565.5360 -5.1010 -0.11%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs