Jim Cramer Says Earnings Season Will Fuel Market's Record Run, But Warns Of This 'Horrendous' Headwind That Could Apply Brakes To Rally Inc., Inc., Inc., Inc., Inc., ETFs, CNBC, Tom Lee, FactSet, FactSet, JPMorgan, Benzinga, Citigroup, Mad Money, Jim Cramer, Fund Strat, Wells Fargo, Stock Price, Informative, Benzinga Pro ... by https://www.benzinga.com/
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Simple Explanation:
2. new big report of how much money some companies made(earnings) are coming, this usually makes people want to buy stocks, so stock prices go up.
3. one kind of stocks is banks, and JPMorgan Chase and Wells Fargo, two big banks, already told everyone they made a lot of money, so the prices of their stocks went up a lot.
4. other big companies will tell us how much money they made soon, and if they also made a lot of money, their stock prices might go up too, which means more people would want to buy stocks and the stock market would keep going up.
5. but there is a thing called bonds, which is another kind of thing you can invest in. sometimes when people are worried about the economy, they put their money in bonds instead of stocks.
6. the bond market has been doing bad lately, which means people are worried and might put their money in bonds instead of stocks.
7. if too many people do that, the stock market might not go up as much as we think it will.
8. this is a tricky time for people who want to invest in stocks or bonds, but Jim Cramer thinks the stock market is still a good place to put money, especially if companies keep making a lot of money.
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Sentiment Analysis:
NEUTRAL
Linked Story: "Jim Cramer Says Earnings Season Will Fuel Market's Record Run, But Warns Of This 'Horrendous' Headwind That Could Apply Brakes To Rally" by Shanthi Rexaline, Benzinga Editor, Benzinga.com.
Linked Story Summary: Despite S&P 500 and the Dow Jones Industrial Average being at record highs and Nasdaq Composite on the cusp of joining them, CNBC Mad Money host Jim Cramer is undeterred, stating that the market isn't overbought and there is room to run. With earnings season commencing, Cramer sees this as a potential catalyst for further stock market increases. He cited a strong start to the season with both JPMorgan Chase & Co. and Wells Fargo & Company reporting earnings that beat expectations. Moreover, according to data compiled by FactSet, cumulative earnings of S&P 500 companies are expected to rise by 4.1% in the third quarter. This positive earnings trend has continued for the last four quarters. Despite the potential for upward market movement, Cramer also warned about the downside risk posed by the bond market, which he described as "horrendous." He mentioned that bond yields have been on the rise, particularly after the September non-farm payrolls report surprised to the upside. The upward trend solidified further after the Consumer Price Inflation for September came in more than expected. The 10-year bond yield, which was around 3.6% mid-September, has rallied above 4% since then, as investors pare back their aggressive rate-cut bets. In an interview with CNBC, Fund Strat Head of Research Tom Lee said the unusual market trend has shown that macro data has become less important. He added that a lot of cash that had remained on the sidelines was now returning to the market, and the economy has proven to be more resilient than initially expected. Despite the positive outlook, Lee also acknowledged that there was still potential for a 20% to 30% stock market correction if inflation surprises to the upside and the Fed becomes more aggressive than currently anticipated. When asked about the days when the market bounced back from steep losses in the futures market to finish strongly higher, Lee said that skeptical investors, wary of a potential recession that never materialized, have remained under-invested in stocks. He also pointed out that earnings have remained resilient, aiding the upward movement of the market. The SPDR S&P 500 ETF Trust, an exchange-traded fund that tracks the S&P 500 Index, ended the day at $