After hearing from around two-thirds of companies in the Dow Jones Industrial Average this earnings season so far, it shouldn’t come as a surprise that the market is so high, Jim Cramer said Monday.
“This was supposed to be a bad earnings season, but it’s been pretty darn good,” he added.
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Thus far, there have been a lot of beats, and not many notable misses, and the market is consistently reflecting that, Cramer explained, despite stocks dipping slightly on Monday.
In a wide-ranging group of winners Cramer identified, some standout names include Honeywell, Microsoft, and JPMorgan.
Honeywell “could be one of the great stories of the entire quarter so far,” Cramer said, as its aerospace business accelerates and its refining chemicals business improves. “But I don’t want to bury the lede: You buy this one for aerospace,” he added.
Microsoft has “stolen the earnings season along with Honeywell,” according to Cramer, thanks to its impressive numbers from its cloud division plus good numbers from its business software and gaming divisions.
Finally, as other banks stumble, JPMorgan “showed it can make money in any environment,” by becoming a “vacuum for deposits fleeing the regional banks,” Cramer said.
“That’s a heck of a lot of wins and not too many losses,” Cramer said, and he recommended keeping some of these winners in mind with potential uncertainty ahead.
