Jim Cramer Says Nasdaq Needs to Cool Off

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The Dow and the S&P were higher in intraday trading Tuesday, but the Nasdaq was lower.

The big U.S. tech stocks declined after the tech-heavy Nasdaq set an intraday high earlier in the session.

European Union leaders agreed to an historic €1.85 trillion budget and stimulus package early Tuesday in Brussels, following five days of marathon talks that will see the region's executive, the European Commission, raising €750 billion in the capital markets and dispersing it among the 27 member states. A €1.1 trillion budget, covering the next six years of the bloc's spending priorities, was also agreed by the EU leadership during the contentious negotiations in the Belgian capital.

And the EU relief fund--which amounts to €750 billion ($857 billion)--will be sent as loans and grants to the hardest-hit countries in the euro bloc. The pandemic has killed more 135,000 people within the 27 countries that make up the European Union.

“Extraordinary events, and this is the pandemic that has reached us all, also require extraordinary new methods,” said German Chancellor Angela Merkel.

Congressional Democratic lawmakers, meanwhile, were meeting with aides of President Donald Trump Tuesday to hammer out details on a potential compromise on a fifth coronavirus aid bill.

And IBM posted earnings and sales that topped analysts' estimates.

Then there’s Coca-Cola, which posted stronger-than-expected second-quarter earnings but saw a steep decline in revenue as stadiums, restaurants and movie theaters remained closed during the coronavirus pandemic.

The company said the revenue decline was "primarily driven by pressure in away-from-home channels, which represent approximately half of the company’s revenues" and include clients such as sports stadiums and restaurants.

So, what’s Jim Cramer watching? Cramer said a certain sector has been "red hot" and it's time for it to cool off. Check out what he's saying about the Nasdaq in the video above. 

Watch the video above for more.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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