On Monday's "Mad Money" show on CNBC, Jim Cramer said that while yesterday's rally was fueled by a resurgence of confidence in the government's economic plans, the foundation of any rally is the stocks that are powering it, such as the top 10 biggest-percentage gainers in the S&P 500.
, which he owns for his
Action Alerts PLUS charitable account, confirmed the increase in the price of crude oil.
On Tuesday, Exxon closed down $1.15, or 1.6%, at $69.38. Chevron fell 21 cents, or 0.3%, to a $68.94 close.
He also saw signs of strength in financial stocks such as
, which both gained 24% on Monday, as well as
Bank of America
JPMorgan closed down $2.39, or 8.3%, at $26.47 on Tuesday, while Wells Fargo was down 10.2% at $15.56, and BofA fell 6.9% to $7.26.
He singled out tech stocks
and pointed to gains in
Procter & Gamble
as additional signs that the rally could continue.
Microsoft and IBM closed down 2.6% at $17.86 and down 0.4% at $98.30, respectively, on Tuesday. Procter & Gamble closed down 1.4% at $47.06, GE was up a penny at $10.44, and AT&T was down 2.2% to close at $26.32.
As a dividend play, Cramer recommended
. "Dividends have never been so important," he said. Air Products currently yields 3.3%, and Cramer says the company earns more than twice what it needs to cover the payout.
On Tuesday, Air Products traded up 54 cents, or 1%, to close at $56.44.
At the time of publication, Cramer was long GE, JPMorgan, Wells Fargo and Chevron.
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