Jim Cramer: Corporate earnings will dictate the stock market’s next move

After stocks rebounded on Tuesday, CNBC’s Jim Cramer said company earnings reports will determine if the move has staying power. Subscribe to CNBC Pro to access the full episode of Mad Money: https://cnb.cx/3Bo1NWJ

CNBC’s Jim Cramer said the bond market gave stocks a reprieve on Tuesday, but corporate earnings will dictate if stocks can continue to snap back from the worst trading day this year.

“It’s the actual sales and earnings numbers from the companies reporting right now that will determine if this move’s got staying power, even if the bond market throws us a curveball,” the “Mad Money” host said after the major averages rallied hard on Tuesday.

“When a company surprises to the upside … it’s mighty hard to keep that stock down,” he said.

The Dow Jones Industrial Average jumped almost 550 points, one of the biggest single-day gains it made this year. The 30-stock index plummeted more than 700 points the day before as bond yields dropped and fears spread of a Covid-19 resurgence.

The S&P 500 and Nasdaq Composite also both shot up more than 1.5%.

U.S. Treasury yields also rose during the session as the 10-year Treasury yield bounced from a five-month low it set Monday. Lower bond yields tend to support higher prices in stocks.

“I do think there are enough people out there taking their cue from the bond market that it could propel the whole stock complex higher,” Cramer said.

“Today was a terrific reminder that interest rates can go higher, too, especially when they’ve come down to ridiculously low levels,” he added.
» 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



Category: News
About The Author