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NEW YORK ( TheStreet) -- On a day where the S&P 500 slid 0.02% and the Dow Jones Industrial Average fell 0.3%, Tuesday’s decline made sense, Jim Cramer told his Mad Money viewers Tuesday.
The markets opened lower, down over 1%, as the Shanghai Composite dropped 5.2% and the Greece stock market declined 12.8%. It only makes sense that U.S. stocks got hit near the open, too, he explained. But the markets were able to rally despite the poor performance from some individual stocks.
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Take Verizon (VZ) , which declined 4% after pre-announcing worse-than-expected earnings results. The stock may get hammered with downgrades over the next few trading sessions so it’s still too early to take advantage of the weakness, Cramer said.
Then there were the bank stocks including Bank of America (BAC) and Citigroup (C) , which announced the fourth quarter is likely to be “not so hot,” Cramer explained. McDonald’s (MCD) , Conn’s (CONN) , Spirit Airlines (SAVE) and Merck (MRK) , a holding in Cramer's charitable trust, Action Alerts PLUS, also had their share of unimpressive reports, earnings and news.
However, today’s late rally gives hope to the bulls. Had today’s session lasted a little longer, the market would have likely closed in the green. Cramer is sticking with the bulls from now until year’s end.
Where Activists Should Go Now
Activist investors seem to be veering away from their typical investment candidates, Cramer said. Generally, activists seek out struggling companies, helping to fix the business and reaping the rewards of a flourishing stock price. Now activists are buying into companies that are already well run, looking to squeeze just a bit more performance from them.
United Technologies, which is in the aerospace, heating and cooling, elevator, and helicopter businesses, has lagged the broader market, up just 1% on the year. The CEO suddenly stepped down and now reports are surfacing that it’s because of his apparent fascination with his yacht. This situation needs a big investor to right the ship, Cramer explained.
Then there’s McDonald’s. Some say it can’t be fixed because consumers simply don’t want the food. But it seems hard to believe that with its large network of restaurants and strong balance sheet the company can’t be fixed, Cramer said.