Stocks traded at record highs Wednesday as investors weighed in on bank earnings and Federal Reserve Chairman Jerome Powell said interest rates wouldn't be lifted until the central bank's targets on employment and inflation were met.
TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about how to trade Coinbase after its debut, takeaways from bank earnings and markets on Wednesday.
Coinbase Global (COIN) - Get Report, the cryptocurrency exchange, opened its first day of trading at $381 a share, 52% above its reference price of $250 a share.
Cramer said Coinbase is going to become the defacto way for big mutual funds to say we understand crypto. "Coinbase stock will be messianic like GameStop (GME) - Get Report and AMC Entertainment (AMC) - Get Report. It means that there is no need to sell," he said. Cramer said investors could trade the stock at $475 but don't trade it over because that would be excess enthusiasm.
Cramer said Goldman Sachs delivered a quarter that indicates they can do $40 bucks and you can put at least a 10 multiple on it.
"If the Federal Reserve let banks return capital they would return a monster amount of capital. They can buy back a lot but more importantly, they can give you dividend that's not like the others which will be really good," he said.
Cramer added that JPMorgan had some tepid low growth. "They are swimming in cash. It is a good quarter from a great firm."
Cramer said Wells Fargo is not as bad as it used to be and that is often enough.
Markets on Wednesday
Cramer said he was watching Goldman Sachs because it represents a truly good quarter as well as other bank stocks that reported earnings and also Coinbase.
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