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Cramer: Feds Are Fueling Infrastructure, Tech Stocks

Cramer says this market action, supported by recent regulatory moves, are fueling gains for stocks like Lily, Caterpillar, Tesla and even the FAANG stocks

The Street's Jim Cramer was in the unusual role of cheerleader for the federal government on a recent Mad Money show. Cramer credited the stock market’s recent gains on two actions by the federal government: the surprise infrastructure deal and Food and Drug Administration approval of Eli Lilly’s (LLY) latest drug for Alzheimer's.

President Biden and centrist senators reached a bi-partisan deal Thursday for $1.2 trillion in investments to rebuild the nation’s infrastructure.

Cramer told his viewers this news was unexpected, and was great for construction-oriented stocks like United Rentals  (URI) - Get Free Report, Caterpillar  (CAT) - Get Free Report and Vulcan Materials  (VMC) - Get Free Report.

Cramer was also enthusiastic about the FDA’s approval of Eli Lilly's  (LLY) - Get Free Report drug for Alzheimers. While the news was widely expected, he said it's another feather in Lilly’s cap. The company’s stock is up more than 36% this year. Preliminary clinical evidence indicates that the latest drug may demonstrate substantial improvement on clinically significant endpoints over already available therapies that have received full FDA approval.

Over on Real Money, Cramer writes that this action could be what he calls a "jailbreak" moment that sets free a broad range of stocks and leads to even better times on the market. Get the full story and all of his investing insights on Real Money.

“Jailbreak! I am talking about how this market burst out in so many areas that you have to marvel that it's even possible. It may be true that you can't judge a book by its cover, but you sure can tell a market by what's up the most and this market is yelling, no, screaming, that everything's working,“ Cramer wrote.

Beyond the infrastructure names, the market leaders included a mix of names that made Cramer take notice. A rally in Tesla  (TSLA) - Get Free Report indicates that growth investing is back. He’s also watching Darden Restaurants  (DRI) - Get Free Report, and Skyworks Solutions  (SWKS) - Get Free Report. There's more to tech than just the FAANG stocks, he said.

(FAANG is Cramer's acronym for Facebook  (FB) - Get Free Report, Amazon  (AMZN) - Get Free Report, Apple  (AAPL) - Get Free Report, Netflix  (NFLX) - Get Free Report and Alphabet  (GOOGL) - Get Free Report.)