Stocks were moving higher Wednesday as Treasury bond yields eased and Wall Street looked to claw back some of the previous session's losses amid debt-ceiling negotiations and the ongoing impact of the global power crisis.
The Street's Jim Cramer and Action Alerts PLUS Senior Analyst Jeff Marks discussed Tuesday's selloff and the current labor session.
"This is business as usual," Cramer said. "I expect an asset to be down for a couple of days and I'm just going to say, 'look there's no need to panic. It's just a bad rotation and nothing more than that."
Tech took a beating Tuesday and Cramer said that during these times, people will often say they have to sell their FAANG stocks. That refers to the portfolio featuring Facebook (FB) - Get Facebook, Inc. Class A Report, Amazon (AMZN) - Get Amazon.com, Inc. Report, Apple (AAPL) - Get Apple Inc. (AAPL) Report, Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report.
"What they don't realize," Cramer said, "is that when I created FAANG, the idea behind it was not that any given year it'll all go up. It was that these companies reinvent themselves. Alphabet, Amazon, if you stuck with them the whole way, you did great."
Cramer and Marks also discussed the ongoing labor shortage, with Cramer noting that the upcoming employment numbers are crucial "because we have to figure out how much an employee costs."
"Labor shortages are a combination of fear about Covid-19 and the idea that someone else is willing to pay more," Cramer said.
Cramer said that one reason investors shouldn't abandon tech is that "tech has got costs under control and a lot of other companies do not have costs under control."
"This is a big change in America," he said. "It's shift of power between labor and capital. Whatever it is, people are not coming off the sidelines. We thought they would after unemployment benefits expired, but they're not coming in.'