Wall Street’s “incredibly strong month” is based on “hope”

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CNBC’s Jim Cramer said on Tuesday that investor optimism about the reopening of the US economy was not justified.

“We [haven’t] adopted universal tests … we don’t have contact tracing, we don’t have enough gloves and masks to protect everyone, “said host” Mad Money “,” but the market is having a month incredibly strong. “

The comments come after the main action averages broke a multi-day winning streak. The Dow Jones slipped 32 points, or 0.13%, and the S&P 500 fell 0.52% during the session. The Nasdaq Composite fell 1.40%.

In April, the benchmark rebounded 10% at the close. The benchmark is up almost 11% and the tech-rich Nasdaq is up almost 12%.

This month’s gains can be attributed to Wall Street’s confidence in the “safety net,” said Cramer, “one who covers big businesses, even if he doesn’t necessarily protect a lot of small businesses and doesn’t enough for individuals. He was referring to massive spending plans that the federal government has adopted to support the economy during the economic fallout from the coronavirus pandemic.

“But you also have a lot of hope in this market. Some of these hopes make more sense than others, “he said.

Stocks continued their upward trajectory, with investors anticipating that states would allow non-core businesses to reopen across the country. Alaska, Georgia, South Carolina, Tennessee and Texas are among the first states to allow certain businesses to continue operating after residents were sentenced to a statewide lockout. More states are expected to slowly reopen their economies in the coming weeks.

Mall operator Simon Property Group, L Brands, the parent company of Victoria’s Secret and Gap Inc. were among the biggest winners during the trading day.

Dr. Anthony Fauci, a senior health official and part of the White House coronavirus response team, warned during the day that the country “could suffer a bad fall” later this year if no effective treatment Covid-19 was not found in the next month. The Trump administration has released a new strategy to help states increase capacity for testing coronaviruses, which is seen as key to continuing to mitigate the spread of the virus.

After Monday’s session, Cramer said the post-pandemic “new normal” would be “much less investable.” He also presented a hundred actions which, in this environment, deserve to be invested.

The host continued to warn that businesses in the retail and nightlife industries will be difficult to own, as consumers are slowly starting to venture outside.

” The essential [is] I’m trying to be optimistic, but I’m realistic, “he said. “The actions that are underway this week are the cooped-up actions … and they will do better when we reopen, so they will” I will continue to operate – that does not mean business will go well. ”

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