After Americans witnessed a harrowing presidential debate the night before, investors paid for stocks on Wednesday, thanks to what was not said during the event, CNBC’s Jim Cramer said.
Republican President Donald Trump and Democratic candidate Joe Biden competed in a fight rocky first round between the candidates for 2020and the major averages rose about 1% the day after.
“Wall Street was concerned about many of the things that went into last night’s debate, and almost none of them came true.”Bad money“said host.” So a fiasco could be fabulous for the stock market for most voters. “
The stocks were buoyed by talks with lawmakers who reached an additional coronavirus spending bill that proved elusive throughout the quarter. With the end of the third quarter on Wednesday, the market saw a second consecutive three-month growth spurt after a severe market collapse at the start of the Covid-19 epidemic in America.
However, certain sectors in the market were able to move after investors trying to gauge what the next four years of federal policy might look like digested what Trump and Biden said and didn’t say during the debate stage.
The candidates dueled over health care and the state of the Affordable Care Act, commonly known as Obamacare, but failed to beat up health insurers and drug manufacturers, Cramer said. Trump and the Republican Party have failed to deliver on their four-year pledge to “repeal and replace” the law to overhaul the country’s health care system.
However, the notes that both Biden and Trump made helped stocks from government-sponsored health care providers like Centene Rally more than 4%, said Cramer. Trump doubled his party’s plan to get rid of the law, while Biden pledged to expand his reach.
“If Obamacare stays here, no matter who wins, it will be fabulous for the managed care companies. And of course, Biden helped develop Obamacare,” he said. “Love it or hate it, it’s good news for these stocks.”
Financial stocks like Discover and Goldman Sachs Cramer added that Biden had laid off the financial sector. Additionally, optimism about a Covid-19 vaccine continues to carry inventories from developers like Moderna, Johnson & Johnson and Pfizer higher.
Aside from Trump’s blame for the country’s coronavirus pandemic, China didn’t become a punching bag during the debate, pleasing investors in companies with exposure to the Asian nation, Cramer said.
“Trump and Biden could get into a fist fight or a fight over the food unless they target certain industries that are easy to hate or add to tensions with China and skyrocket.” “said the host.