Record highs put market in 'sweet spot'
CNBC's Jim Cramer says the bounce back in hard-hit names pokes holes in the bubble talk for tech and biotech.
With the Dow Jones industrials ($INDU) closing off their second-consecutive record high and the Nasdaq Composite Index ($COMPX) making up lost ground, the market appears to be in a "sweet spot," CNBC's Jim Cramer said Tuesday.
The ongoing bull market has been riding great rotation after great rotation since the 2008 financial crisis and into its current highs, Cramer said. He added that the recent one affecting a slice of high-momentum, biotech and Internet stocks seems no different.
"Great rotations the whole way up," Cramer said on "Squawk on the Street." "I've never felt that a bull market ages. I'm not saying it's a fine wine here. It's not like a great cabernet."
The bounce back in hard-hit names pokes holes in the "bubble talk" surrounding the tech and biotech sectors, Cramer said. Some thought the declines in the Nasdaq and Internet plays would bring down the Dow, he said, but that's been the opposite of what's been happening.
Cramer said the rally could cause Wall Street to come out in support of stocks like Salesforce.com (CRM) -- the "umbrella" of the software-as-a-service section of Internet stocks and what Cramer calls a bellwether of the rotation out of those stocks.
"The analysts are all making a stand today on cloud and Internet because they saw the bounce yesterday," Cramer said. "There's so many IPOs in the chute, they almost have to come out and make a defense right here. They're out of their fox holes, making their move."
Disclosure: Cramer's charitable trust does not have a position in salesforce.com.
More from CNBC
Let's see the US deficit is worse than it was in 2008, Employment is worse than in 2008 tens of millions of Americans are not even looking for work now and if they find it it is at minimum wage for 29 hours a week.
The super rich have gotten even richer leaving less and less for the rest of us to live on.
The government falsely reports inflation and says everything is fine when it is not.
All of us except the super rich are stressed out wondering how we are going to pay 20 percent increases in our car insurance, health insurance and home insurance and taxes on our houses when our income is the same or falling.
Yep we are just about at the breaking point folks Sept 15, 2015 is the collapse of the dollar.
Taxes on wages (in any form – flat or progressive) are the greatest evil of our American Republic. When government is free to steal from you, there are no limits to waste and abuse in government. If a person chooses to work extra hours or two jobs in order to better provide for themselves or their family, they should not be penalized, but that is what happens. The more you make by working harder and longer, the more money is stolen from you, and given to those who spend their lives living off the hard work of others.
The revenue the government needs to provide legitimate constitutional services should be obtained primarily from a national sales tax instead of a tax on wages. All would pay based on consumption, the more you spend the more you pay. The more luxury you surround yourself with, the more you pay. Your choice. A national sales tax system would capture money spent by criminals and by illegal aliens who currently pay near zero in taxes. There would need to be some exemptions: Cars (already have a federal excise tax) Primary Residence/Rental Properties (vacation homes would be subject to tax/rental profit would be taxed) Fresh Food (Preprocessed foods and prepared meals would be taxed – only fresh/fresh frozen/canned goods would be exempt) Insurance Premiums, Health Care & Certified Education.
Adding another layer of tax to a business would not be fair. Businesses would need to be compensated by keeping a portion of the tax to cover the expense of collection and reporting. A percentage of .20 to .05 would be fair.
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[BRIEFING.COM] The S&P 500 trades higher by 0.2%.
The University of Michigan Consumer Sentiment report for July was revised up to 81.8 from 81.3 in the final reading, while the Briefing.com consensus expected the reading to be revised up to 82.0.
Separately, June construction spending decreased 1.8% month-over-month, while the Briefing.com consensus expected an increase of 0.3%.
Also of note, the ISM Index for July rose to 57.1 from 55.3, while the Briefing.com ... More
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