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“ ‘Investors are simply trying to make money, and that’s why they’re crowding into the stay-at-home economy stocks.’ ”
CNBC’s Jim Cramer has a theory on the markets.
“At the end of the day, the market has no conscience,” CNBC’s,” the “Mad Money” host said this week. “Investors are simply trying to make money, and that’s why they’re crowding into the stay-at-home economy stocks because the stay-at-home economy just got a major extension for many investors, right or wrong, thoughtless or cerebral, it’s worth exploiting.”
“Stay-at-home” stocks include Netflix NFLX, +1.47%, Slack WORK, +6.07% and Zoom ZM, +13.74% Amazon AMZN, +1.17%, Facebook FB, +3.03%, DocuSign DOCU, +5.35%, OKTA OKTA, +4.70%, Fortnet FTNT, +3.98% and DraftKings DKNG, +10.07%. “We’ve got protests all over America that, in many places, turned into riots, and what does the market do? Rally.” he said.
“Is the market totally heartless indifferent to the pleas of the protestors?” he said, referring to the nationwide protests and subsequent looting and clashes with police over the killing of George Floyd by Minneapolis police while in custody after a policeman was filmed with his knee and the full weight of his body on Floyd’s neck. “Is it condemning police brutality or endorsing it?”
Cramer said many people want the market to play a constructive role in the dialogue over racial equality “or at least they want it to go down to express some empathy for these troubled times we’ve living through. that’s not how it works. The truth is the market is blind because it has no eyes. It’s deaf because it has no ears.” He said, “Nobody is investing to make the world a better place.”
“ ‘This is the mother of all super-spreader events.’ ”
He warned of protestors flouting the rules of social distancing to prevent the spread of COVID-19, the disease caused by the novel coronavirus. The CNBC host recommended “stay-at-home” stocks and warned of “huge second wave.” He added, “This is the mother of all super-spreader events.” He says businesses have another reason to keep their employees staying at home.
The number of confirmed COVID-19 cases and the number of deaths continues to rise. As of Tuesday, there are 1,811,277 confirmed cases of COVID-19 in the U.S., and 105,147 deaths, and 29,917 deaths in New York, the largest of any state in the country. Worldwide, there were 6,288,167 confirmed cases and 375,987 deaths, according to Johns Hopkins University.
The Dow Jones Industrial Index DJIA, +0.36% and the S&P 500 SPX, +0.37% were slightly higher Monday, as investors weighed the impact of the political unrest over the death of George Floyd in police custody in Minneapolis, as well as possible progress in COVID-19 vaccine research, and fears of further deterioration of trade and political relations with China.
The Dow Jones Industrial Average futures YMM20, +0.44% fell 21 points, or 0.1%, at 25,442, while S&P 500 futures ESM20, +0.30% was own 2 points, or 0.1%, to 3,051, while Nasdaq-100 futures NQM20, +0.10% gained 5 points, or 0.05%, to 9,590. The markets are digesting the escalating political and social unrest, and COVID-19, and the effects that may have on corporate earnings.
(Cramer’s charitable trust owns shares of Amazon and Facebook, CNBC notes.)
