Stocks searched for direction in intraday trading Thursday as the July read of the Producer Price Index came in hotter than expected.
The Dow Jones Industrial Average was down 89.93 points, the Nasdaq Composite was down 8.95 points and the S&P 500 was down 3.75 points.
PPI for final demand increased 1.0% in July, exceeding consensus estimates of 0.6%.
The data followed consumer price index, or CPI, data that came in better than feared Wednesday. CPI came in up 0.5% month-on-month to 5.4%, which Jim Cramer called the "principal reason" stocks were higher Wednesday.
"High-multiple stocks are under pressure. It's not your fault, it's not their [company] faults, it's the fault of rates," Cramer said.
Cramer said that the current environment makes a balanced portfolio more important than ever.
For example, AAP owns names like PayPal (PYPL) - Get Free Report and Mastercard (MA) - Get Free Report, but also holds onto more traditional banks such as Wells Fargo (WFC) - Get Free Report and Morgan Stanley (MS) - Get Free Report. "That's the barbell writ large," Cramer said.
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