Kicking off the final day of the second quarter of 2021, stocks were lower at the open of trading Wednesday with the Dow Jones Industrial Average down 17.11 points, the S&P 500 down 1.57 and the Nasdaq down 12.21.
Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed the latest data from the ADP jobs report, Didi's U.S. market debut, earnings from Bed Bath & Beyond (BBBY) - Get Bed Bath & Beyond Inc. Report and Constellation (STZ) - Get Constellation Brands, Inc. Class A Report and Cramer's outlook as Wall Street wraps up the first half of 2021.
Watch the full interview in the video below:
Gambling Vs. Investing
Cramer has always been the first one to remind you that time and time again, you'll make more money choosing individual stocks than investing in index funds.
On Mad Money Tuesday, Cramer said that while there may a place for index funds in your portfolio, there are better ways to make money, if you're willing to do a little homework.
"The problem with owning everything is that not every stock is worth owning, Cramer explained. Back when he was growing up, dividend paying stocks like Merck (MRK) - Get Merck & Co., Inc. (MRK) Report made millions for individual investors who reinvested those dividends year after year. But during that same time, there were also plenty of high-flying stocks that crashed and burned. Knowing the difference between these two types of stocks is the difference between gambling and investing," Scott Rutt wrote in his Mad Money Recap.
Wrapping Up The First Half of 2021
Wednesday marks the conclusion of the first half of 2021, putting the end of the second quarter in the books.
Cramer took to Real Money to discuss a slew of quarterly earnings and his effort to distinguish the name that stood out from the pack.
"The winner? Pretty clear, actually: RH. The company reported 78% revenue growth when the street was looking for 56%. RH core demand, what matters when you are doing apples to apples, increased 109%, “the strongest demand trends in our industry,” as the shareholder letter pointed out. Gross margins expanded 550 basis points and adjusted operating margins increased 1,260 basis points, to 22.6% versus 10%, Cramer wrote.
Hear what Jim Cramer is only telling members of his Action Alerts PLUS investing club in Wednesday's Daily Rundown.