Stocks opened higher Thursday following Wednesday's push higher as the Federal Reserve and easing fears around a potential Evergrande market "contagion" boosted investor sentiment.
The Dow Jones Industrial Average was up 238.15 points, the Nasdaq Composite was up 69.85 points and the S&P 500 was up 21.69 points.
Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed Evergrande, the Federal Reserve, Facebook and much more.
Watch the full interview with TheStreet Live at 10:00 a.m. ET in the video below:
One Contagion Off the Table?
China's second-largest property developer Evergrande surged upwards of 17% in Hong Kong trading Thursday.
On Wednesday, the company reached an agreement with onshore bondholders to pay interest on a yuan bond due September 23, according to a stock exchange filing.
However, the company has yet to provide guidance on its plan to meet its debt to offshore investors. By the close of Hong Kong trading, the company did not update the status of a $83 million interest payment on its 5-year, U.S.-dollar denominated bond also due today. A payment on Evergrande's 7-year U.S. dollar bond is due September 29.
Meanwhile, Chinese authorities are asking local governments to prepare for the potential downfall of Evergrande, according to reporting from the Wall Street Journal.
While risks abound for Evergrande, in a recent column on Real Money, Cramer noted that Evergrande was never the systematic risk some feared as Evergrande's debt is owed to offshore investors. "The foreign bond buyers are from countries that are so on the hook to China that it doesn't matter if Xi crushes them, so, despite what the press will say the risk stayed market and never went systemic," Cramer wrote.
Jerome Powell: King of the Bulls?
The Federal Reserve stayed the course Wednesday, holding interest rates steady, though noting that tapering of the central banks buying $120 billion a month in government, corporate and agency bonds will be coming soon.
Fed chair Jerome Powell noted tapering could begin in November 2021, pending a "reasonably strong" September jobs report, according to reporting from TheStreet's Martin Baccardax.
On Mad Money Wednesday, Cramer noted that such commentary and other statements positioned Powell as one of the bulls driving stocks higher.
Facebook CTO to Step Down
Facebook chief technology officer Mike Schroepfer announced Wednesday that he will be stepping down from his role and will take a part-time position with the company following a transition period.
Head of Facebook Reality Labs Andrew Bosworth will replace Schroepfer, according to a company statement Wednesday.
"He [Schroepfer] has played a critical role in almost everything we’ve done — from building and scaling our teams to mentoring many of our key leaders, and from helping us develop new technologies like AI and VR to operating our infrastructure and business services at global scale," CEO Mark Zuckerberg said in a statement.
Facebook is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio.
Boeing Boosts China Outlook
Boosting its long-term forecast for China aircraft demand, Boeing said China would likely need 8,700 new airplanes over the next two decades, a figure that translates to overall sales of around $1.47 trillion.
The aircraft manufacturer added that a further $1.8 trillion will likely be needed to service both its existing and future fleet additions over the next 20 years, TheStreet's Martin Baccardax reported.
Boeing is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio.
Cramer's AAP Call Is Today
Jim Cramer's monthly members-only Action Alerts PLUS conference call kicks off September 23 at 11:30 a.m. ET. Cramer will be live, breaking down his latest worldview and how he's trading all of the stocks that make up his charitable trust, and most importantly, he'll be answering YOUR questions.
Here's how to watch.