Jim Cramer breaks down Monday's rally in infrastructure stocks such as Nucor and Caterpillar
On Monday's episode of "Mad Money," host Jim Cramer discussed the implications of the recent rally in infrastructure-related stocks after the House of Representatives passed a more than $1 trillion bill. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6
CNBC’s Jim Cramer said the rally in infrastructure-related stocks Monday demonstrates the growing influence of retail investors on Wall Street.
The “Mad Money” host expressed surprise that companies such as steelmaker Nucor and construction materials supplier Martin Marietta moved solidly higher during Monday’s session, which was the first since the House of Representatives passed a more than $1 trillion infrastructure bill late Friday.
“Historically, you had to buy before something good happens, and then sell into the news. The smart money always loaded up and crushed bids when stories broke, often leading to big losses for anyone who bought the news,” Cramer said. “Not this market, though. The new pattern is insane if you’ve got experience, but it’s making fortunes for newcomers.”
Cramer pointed to Nucor, in particular, to make his case. While he noted he’s maintained an optimistic outlook on Nucor, he said there have been others on Wall Street who believed its stock had fully priced in most of the potential benefit from an infrastructure deal.
“In the old days, once we found out Congress had finally passed the infrastructure bill, you might’ve seen Nucor’s stock open up a point or two before the heat-seeking sellers came in and lit up the buyers, taking furious profits. In the end, they might’ve blasted this thing back down to where it was trading a week ago,” Cramer said.
However, Cramer said the current market is no longer dominated by large institutional money managers.
“Individual investors have a lot of power,” Cramer said, noting Nucor shares finished up 3.6% Monday. The stock is up 18.65% in the past month.
“See, Nucor was too obvious for the pros. But regular individual investors no doubt wanted to be sure the bill would actually pass before they pulled the trigger. Then they started buying hand over fist and I don’t think they’re finished,” Cramer said.
“The professionals keep being wrong because these new buyers aren’t used to the cynical trading ways of Wall Street,” he added. “They hear good news; they buy good news. It’s a new world, more straightforward, less pessimistic, and you ignore this optimism at your own peril.”
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
https://www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV
Видео Jim Cramer breaks down Monday's rally in infrastructure stocks such as Nucor and Caterpillar канала CNBC Television
CNBC’s Jim Cramer said the rally in infrastructure-related stocks Monday demonstrates the growing influence of retail investors on Wall Street.
The “Mad Money” host expressed surprise that companies such as steelmaker Nucor and construction materials supplier Martin Marietta moved solidly higher during Monday’s session, which was the first since the House of Representatives passed a more than $1 trillion infrastructure bill late Friday.
“Historically, you had to buy before something good happens, and then sell into the news. The smart money always loaded up and crushed bids when stories broke, often leading to big losses for anyone who bought the news,” Cramer said. “Not this market, though. The new pattern is insane if you’ve got experience, but it’s making fortunes for newcomers.”
Cramer pointed to Nucor, in particular, to make his case. While he noted he’s maintained an optimistic outlook on Nucor, he said there have been others on Wall Street who believed its stock had fully priced in most of the potential benefit from an infrastructure deal.
“In the old days, once we found out Congress had finally passed the infrastructure bill, you might’ve seen Nucor’s stock open up a point or two before the heat-seeking sellers came in and lit up the buyers, taking furious profits. In the end, they might’ve blasted this thing back down to where it was trading a week ago,” Cramer said.
However, Cramer said the current market is no longer dominated by large institutional money managers.
“Individual investors have a lot of power,” Cramer said, noting Nucor shares finished up 3.6% Monday. The stock is up 18.65% in the past month.
“See, Nucor was too obvious for the pros. But regular individual investors no doubt wanted to be sure the bill would actually pass before they pulled the trigger. Then they started buying hand over fist and I don’t think they’re finished,” Cramer said.
“The professionals keep being wrong because these new buyers aren’t used to the cynical trading ways of Wall Street,” he added. “They hear good news; they buy good news. It’s a new world, more straightforward, less pessimistic, and you ignore this optimism at your own peril.”
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
https://www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV
Видео Jim Cramer breaks down Monday's rally in infrastructure stocks such as Nucor and Caterpillar канала CNBC Television
Показать
Комментарии отсутствуют
Информация о видео
Другие видео канала
Mukherjee: The projected energy demand is huge... it's going to double in the next few yearsCiti's Drew Pettit on opportunities in nuclear energyBreaking down shares of Hilton, Expedia and Match Group3-Stock Lunch: Ford, KB Home, & DoorDashCalls of the Day: Apollo Global, Cadence Design, Verizon, Expedia and NikeBond Report: 5-year auction well receivedBipartisan bill aims to let small businesses hedge commodity costs: Senators Shaheen and CassidyNielsen names NBCU top media distributor in AugustThree-Stock Lunch: S&P Homebuilders Index, Nvidia & JPMorganFinal Trades: Trane Tech, American Tower, Regeneron and Taiwan SemiTrade Tracker: Karen Firestone trims Adobe and buys more AutodeskEarnings trajectory is under-appreciated in the near-term, says HSBC's Max KettnerCalls of the Day: Starbucks, Uber, Lowe's, Walmart, Casey's General Store, AT&T and Charles SchwabMicron stock could continue to move higher, says BD8's Doran after Micron spikes on earningsSouthwest Airlines raises summer revenue forecast, authorizes $2.5 billion in share buybacksTrade Tracker: Bill Baruch trims Tesla, sells SLB and buys more Exxon Mobil and Kinder MorganTrade Tracker: Steve Weiss sells Archer-DanielAsam: I'm not aware of any criminal investigations into SAP at present, We're cooperating with DOJSeptember consumer confidence falls the most in three yearsFinal Trades: PayPal, Citizens Financial, Cisco Systems and the IYRYour Best Option: Micron earnings