Corporate profits will dictate next market move, says Jim Cramer
CNBC’s Jim Cramer said the bond market gave stocks a reprieve on Tuesday, but corporate earnings will dictate whether stocks can continue to recover from the worst trading day of this year.
âIt’s the actual sales and profit numbers of the companies reporting right now that will determine whether this move is sustainable, even if the bond market throws us a curveball,â said the host of âMad Moneyâ after major averages rebounded sharply on Tuesday. .
âWhen a company surprises on the upâ¦ it’s very difficult to keep that stock low,â he said.
The Dow Jones Industrial Average jumped nearly 550 points, one of the biggest daily gains it has made this year. The 30-stock index fell more than 700 points the day before as bond yields fell and fears spread of a Covid-19 resurgence.
The S&P 500 and the Nasdaq Composite also both climbed more than 1.5%.
US Treasury yields also rose during the session, as the 10-year Treasury yield rebounded from a five-month low set on Monday. Lower bond yields tend to support rising stock prices.
âI think there are enough people taking inspiration from the bond market that it can propel the whole stock complex higher,â Cramer said.
“Today was a great reminder that interest rates can also rise, especially when they have fallen to ridiculously low levels,” he added.