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How could everything that was loved last week be hated this week? The move has a lot less to do with actual earnings and a lot more to do with how the big portfolio managers view the world. Until today, the markets loved health care, with stocks like UnitedHealth Group (UNH) offering excellent earnings, growth and a wholly domestic story. But today shares fell by 2%.
Must Read: 10 Stocks Carl Icahn Is BuyingMeanwhile, Freeport McMoRan (FCX), which has seen disappointing earnings and roaring debts, was able to rally by 5%. It turns out money managers are changing their world view, betting on increased inflation. That's good news for commodity stocks like Freeport but bad news for health care, which typically gets sold during that part of the economic cycle. That's also how an oil driller like Helmerich & Payne (HP) can catch an analyst upgrade, as it did today. Analysts are betting on a bottom for oil. This trend continues with stocks like Celgene (CELG) falling 3% despite positive drug trial news, and Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS, not signaling a clear direction despite blockbuster results.