Stocks were rising Wednesday and the Dow Jones Industrial Average and S&P 500 set record intraday highs as investors bet Democrats would win the U.S. Senate.
TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about Apple, Walmart and investor sentiment on Wednesday.
Apple: Buy Or Sell?
iPhone maker Apple (AAPL) – Get Report on Wednesday reported App Store sales of $1.8 billion for the recently concluded holiday season with New Year’s Day accounting for 30% of the spending.
Cramer said Apple’s statements that came out this morning indicate that are going to have very strong service revenues. “Apple is a buy because it’s down right now and it has customers. Themes like work from anywhere, digitization and healthcare make me want to buy Apple even more. I know money continues to come out of tech and go into industrials, go into retail. I have no problem with that.”
Walmart: Buy Or Sell?
Democrat Rev. Raphael Warnock beat Sen. Kelly Loeffler in Georgia, winning one of two Senate runoffs in the state. Warnock’s victory puts the Senate majority within the Democratic party’s reach.
Cramer said we were told that if the Democrats take the U.S. Senate it’s going to be a disaster for the stock market. “I’ve been saying that it’s the opposite. If you stick with the big themes [like digitization] you’re going to make a lot of money. There is going to more stimulus which is great for Walmart (WMT) – Get Report and that’s a stock you should buy right now.”
Markets on Wednesday
The Dow rose 456.95 points, or 1.5%, to 30,850 and the S&P 500 gained 0.89%. Both indexes set record intraday highs during the session led by financial stocks and shares of material and energy companies.
Cramer said he would go against the prevailing wisdom and buy tech stocks that are down instead of chasing oil stocks or banking stocks. “Crude oil inventory just fell 8 million barrels and that is going to spur more buying in oil. We’ve got huge buying in the infrastructure stocks. We’ve got a gigantic sell of all tech. I think you’re looking for tech stocks to buy and they’re finally coming in. So you can’t just sit there and be like I’m going to chase the oils and the banks. You’ve got to buy what is down. I want to be the opposite of what people are doing this very moment.”