Jim Cramer of CNBC attributes the market's rise to record levels both to consumer and business demand. The moderator of "Mad Money" describes how the services of luxury brands reflect the strength of consumers. Later in the show, Cramer explains what the $ 10 billion defense contract awarded to Microsoft means for the computer manufacturer's cloud services.
Demand is the trigger for the market's rise to record levels.
Traders work on the New York Stock Exchange.
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According to Jim Cramer of CNBC, demand drives Wall Street towards new highs.
The S & P 500 gained almost 1
The S & P 500 reached a closing high of 3,025.86 at the end of July. According to FactSet, the index rebounded from its intraday lows of 2,822.12 at the beginning of August, rising by around 7.7% by the end of the month on Monday.
Mad Money "host said he added that a ceasefire between the US and China has helped to" revamp a variety of pending stocks. "
Luxury brands show that domestic consumers are in excellent shape Constitution is.
Cruise ship off the coast of Grand Anchor Cayman Island, Royal Caribbean Cruise Ship Mariner of the Sea
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Showing strong high-end consumer cyclicals for consumer discretionary Overall, the US economy may be "in better shape than investors suspect," Cramer said.
Cramer uses the charts of the technician Bob Lang, a colleague and publisher of ExplosiveOptions.net, has become some of the top Non-Consumer Staples names include a variety of non-essential goods and services such as RVs, cruises, snow obile and timeshare.
"It's as free as it gets," said the host. "These types of stocks work only when the consumer is willing to spend money and the banks are ready to lend."
The troupe is with Microsoft after winning the JEDI contract
before visiting Microsoft CEO Satya Nadella (L) and Amazon CEO Jeff Bezos a meeting of the White House's American Technology Council meeting in the White House dining room on June 19, 2017 in Washington, DC.
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The US Department of Defense has given Microsoft "the best possible endorsement they could receive" by awarding the company's cloud platform on Amazon a billion dollar defense contract, Cramer said.
At the other end of the spectrum Losing the potential $ 10 billion contract is not "a big deal for Amazon," the host said. The call for proposals came to two of the most valuable companies by market capitalization.
"The Pentagon basically says that Microsoft's cloud platform is just as good as Amazon's or at least close enough for government work," Cramer added, "for Microsoft Azure it's a much more significant gain than Amazon Web Services ".
Cyclical stocks show resilience, could rise
A trader works on the New York Stock Exchange (NYSE) floor before the opening bell on January 4, 2019 in New York City. After a strong job report in December, the Dow Jones Industrial Average rose 350 points at its opening Friday morning. In a television interview on Friday morning, National Economic Council director Larry Kudlow said he believed there was "no recession in sight".
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Dow and AT & T are worth buying
Randall Stephenson, Chairman and CEO of AT & T.
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In an environment where the bond market offers a low payoff – the 10-year US Treasury yield is 1.85% – Dow and AT & T offer both higher returns and potential growth opportunities, Cramer said.
"I recommend buying a few here, and then maybe wait for the Fed to say something on Wednesday with a headache slamming the market, or perhaps the payroll of the Labor Department on Friday shows a surprising You can then buy a few more for the weakness, "he said. "Be patient, Dow and AT & T now pay for the wait safely.
Cramer's Blitz Round
In Cramer's Blitz Round, the Mad Money host struggles with his thoughts on the caller's favorite stock pick of the day.
Realogy Holdings: "Full Disclosure: My wife works for her. I think that it is OK. I'm worried about the housing market. I think the housing market is easy, just ok, not good enough for what they do. I'll say it's a cheap stock. I hesitate to say more than that. "
Wendys:" Everyone believes that Wendy's and McDonald's are stuck in an incredible war for breakfast. I think Wendy's in good shape and the stock is down over the top. I might want to wait until it's under $ 20 to buy something, but I really like Wendy's.
Disclosure: Cramer's charitable trust owns shares of Amazon and Microsoft.