Cramer Warns 1.3% Dow Drop Masks Gulf Between Stocks and Economic Reality
Updated
Updated · CNBC · Aug 20
Cramer Warns 1.3% Dow Drop Masks Gulf Between Stocks and Economic Reality
3 articles · Updated · CNBC · Aug 20
Summary
Micron rose 4% even as Cramer said Thursday's selloff showed strong companies still cannot escape a market fixated on macro risks rather than business fundamentals.
1.3% Dow, 0.9% S&P 500 and 1% Nasdaq losses came as Treasury yields climbed again, with the 30-year yield having topped 5.33% earlier this week despite Treasury's buyback plan.
Walmart's 9% slide reinforced worries about the consumer, with Cramer pointing to gasoline above $4 a gallon and Iran war-driven oil prices as pressure on household spending.
$40 trillion in U.S. debt also made Cramer skeptical that Treasury buybacks of more than the floated $4 billion can materially lower borrowing costs, leaving rates and inflation fears dominant.