CNBC’s Jim Cramer listed ten stocks that helped the Dow Jones Industrial Average briefly top 40,000 on Thursday, a new high for the index.
“To me, this list is emblematic of the fact that we should spend a lot less time focusing on the Fed—it’s really only fueled the gain in Travelers—and a lot more time discussing management and mission,” Cramer said. “That’s what propels these stocks long term, and that’s what makes the difference.”
- American Express: To Cramer, American Express is still seeing gains from the post-Covid travel and leisure boom among consumers. He also credited the company’s success to its push to attract younger clientele, bringing in more customers who have “tremendous lifetime value.”
- Caterpillar: This construction equipment manufacturer benefited from federal infrastructure funding, Cramer said. He also said he believes CEO Jim Umpleby has been able to help Caterpillar become a more secular company, getting big business from data center construction.
- Microsoft: According to Cramer, Microsoft’s huge investment in artificial intelligence and Open AI has paid off, adding that its cloud infrastructure business, Azure, is seeing success.
- Goldman Sachs: Cramer attributed Goldman’s gains to CEO David Solomon, who he said made a smart decision to steer the company away from serving the average consumer and back towards its original target clientele — those with extreme wealth.
- Merck: Merck is raking in great profits from its cancer treatment, Keytruda, Cramer said. He praised CEO Rob Davis for investing these gains in new acquisitions to bulk up the company’s drug pipeline.
- Chevron: Cramer said he was impressed with the way Chevron prioritizes its shareholders, saying the company pays an “outsized dividend with consistent growth.”
- Apple: Cramer continued to preach his gospel on Apple. He praised the iPhone maker’s service revenue stream and stressed the lifetime value of its loyal customers.
- JPMorgan: According to Cramer, much of JPMorgan’s success is due to the talent of its CEO, Jamie Dimon.
- Travelers: Higher interest rates have dramatically increased profits for this insurance company, Cramer said.
- UnitedHealth Group: According to Cramer, UnitedHealth Group’s rally has to do with its lucrative health services arm, Optum.
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