CNBC’s Jim Cramer on Wednesday said the stock market is full of pessimism, creating an opportune moment for investors.
“Fairly or unfairly, this is a great moment for the stock market,” the “Mad Money” host said. “The promised land is right there. We’ve still got to get through the worst phase of the pandemic, but then we’ll be vaccinated and, hopefully, you’ll never have to hear about Covid-19 again.”
The comments come after a mixed day of trading on Wall Street where the Dow Jones Industrial Average slid while the S&P 500 and Nasdaq Composite moved higher. The three major indexes were well off their session lows.
Cramer said the trading day was more volatile than the closing appeared. Stocks traded lower on a worse-than-expected drop in retail sales last month, the Federal Reserve’s comments on the state of the economy and ongoing coronavirus pandemic worries, he explained.
A late-in-the-day announcement that lawmakers are nearing a $900 billion coronavirus relief measure helped stocks rebound, he added. The bill will potentially include $600-per-person direct payment stimulus checks for Americans.
The Dow eventually closed at 30,154.54, down 0.15%. The S&P 500 inched up 0.18% to 3,701.17 and the Nasdaq Composite climbed 0.50% to 12,658.19.
Cramer said the lingering negative sentiment is intriguing for investors.
“I’m actually thrilled by all the negativity because it means stocks can still go higher. As long as we have doubters, we can rally,” he said. “The market goes up when bears turn into bulls, so think of the negativity that we saw all morning as the fuel. When everyone’s positive, well that’s when you have to worry.”
Some stocks that Cramer said could have more upside include Stanley Black & Decker, Lowe’s, Home Depot, Lululemon, Boeing, Facebook, Amazon, Apple, Netflix and Alphabet.
“As I see it, the bears — once again — the bears [were] wrong,” the host said. “Sure, this is an ugly moment, but we’re about to cross the Jordan River after spending ages lost in the wilderness, and there’s a land of milk and honey on the other side.”
Disclosure: Cramer’s charitable trust owns shares of Boeing, Facebook, Amazon, Apple and Alphabet.
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