Jim Cramer Explains Why The S&P Hit an All-Time High

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says the S&P is at an all-time high again because of earnings from big name companies. FedEx  (FDX), the world's largest goods transporter, did unbelievably well on Wednesday and showed that commerce is doing well.

Kroger  (KR), the largest supermarket, Red Hat  (RHT), the largest software-as-a-service stock, and Adobe  (ADBE), one of the great growth stocks, are all saying things are going well. Cramer says when you put all this together, you get great earnings against a backdrop where the Fed is essentially on hold, which allows the market to climb. 

Cramer says this is not multiple expansion, in which investors pay a lot for the same earnings. When a new earnings report comes out, investors can revise how much they are willing to pay for stocks. Cramer says this is why Federal Reserve Chairwoman Janet Yellen is right when she says stocks are not too elevated to go higher.

Must Watch: Jim Cramer: S&P at Record High on Strong Earnings From Big Names

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates FedEx as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate FEDEX CORP (FDX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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