NEW YORK (TheStreet) -- TheStreet's Jim Cramer says the S&P is at an all-time high again because of earnings from big name companies. FedEx (FDX - Get Report), the world's largest goods transporter, did unbelievably well on Wednesday and showed that commerce is doing well.
Kroger (KR - Get Report), the largest supermarket, Red Hat (RHT - Get Report), the largest software-as-a-service stock, and Adobe (ADBE - Get Report), one of the great growth stocks, are all saying things are going well. Cramer says when you put all this together, you get great earnings against a backdrop where the Fed is essentially on hold, which allows the market to climb.
Cramer says this is not multiple expansion, in which investors pay a lot for the same earnings. When a new earnings report comes out, investors can revise how much they are willing to pay for stocks. Cramer says this is why Federal Reserve Chairwoman Janet Yellen is right when she says stocks are not too elevated to go higher.
"We rate FEDEX CORP (FDX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."