The stock reopening made Wall Street more optimistic about vaccines, but investors may want to be selective about which stocks to add to the market at or near highs, CNBC’s Jim Cramer said Monday.
“The real problem in this market is trust. Buyers have faith in the future, which feels out of place for most people right now, and Covid cases are exploding. Those who are desperate are sellers or they are doing nothing . “Bad money“Host said.
“But the believers? There doesn’t seem to be a price they won’t pay, at least for now.”
The comments come after the 30 shares Dow Jones and wide S&P 500 The indices hit new highs during the session, backed by another positive report on vaccine research, this time from Moderna, which reported a late-stage effective rate of 94%.
The Dow rose more than 470 points to a record close of 29,950.44, 1.6% more than Friday. The S&P 500 ran 1.2% to 3,626.91. The Nasdaq Composite rose less than 1% to close at 11,924.13.
Restaurant holding companies were among the advances on Monday Darden restaurantsconglomerate Honeywell International and entertainment giant Disneyall beat the profits of the market. Darden, the parent company of Olive Garden, rose 2.3% to a closing price of $ 110.08. Honeywell was up 3.5% to $ 208.59 and Disney was up 4.6% to $ 144.67.
“These companies have been put down by Covid. There is no hope that the next quarter will be anything good,” said Cramer. “But it doesn’t matter. Buyers keep coming, not for their companies, but for their stocks.”
Its stocks, with the exception of Honeywell, trade just above where they left off in 2019, before the global pandemic hurt global activity and plunged the US into recession. Honeywell, which is involved in the troubled aerospace industry, is up nearly 18% year-to-date.
“I have to believe you know who I think this is the work of: youth,” he said. “Nobody who has been in business for any length of 30 years would do this business.”
Disclosure: Cramer’s charitable foundation owns shares in Disney and Honeywell.