By Quentin Fottrell, MarketWatch
‘Investors are simply trying to make money, and that’s why they’re crowding into the stay-at-home economy stocks.’
CNBC host Jim Cramer
CNBC’s Jim Cramer has a theory on the markets.
“At the end of the day, the market has no conscience,” 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 /zigman2/quotes/202353025/composite NFLX +0.58% , Slack /zigman2/quotes/212180539/composite WORK -0.37% and Zoom /zigman2/quotes/211319643/composite ZM -4.54% Amazon /zigman2/quotes/210331248/composite AMZN -0.92% , Facebook /zigman2/quotes/205064656/composite FB +1.94% , DocuSign /zigman2/quotes/205992027/composite DOCU -0.15% , OKTA /zigman2/quotes/210420951/composite OKTA +0.11% , Fortnet /zigman2/quotes/205733290/composite FTNT -0.18% and DraftKings /zigman2/quotes/213120645/composite DKNG -2.02% . “We’ve got protests all over America that, in many places, turned into riots, and what does the market do? Rally.” he said. (Cramer’s charitable trust owns shares of Amazon and Facebook, CNBC notes.)
“Is the market totally heartless, indifferent to the pleas of the protesters?” 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. A policeman was filmed as he pressed his knee and the full weight of his body on Floyd’s neck for several minutes. “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’re 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.’
CNBC host Jim Cramer on coronavirus and the health risks of gathering to protest
He warned of protesters 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 evening, there are 1,831,435 confirmed cases of COVID-19 in the U.S., and 106,180 deaths, and 29,968 deaths in New York, the largest of any state in the country. Worldwide, there were 6,372,447 confirmed cases and 379,709 deaths, according to Johns Hopkins University’s Center for Systems Science and Engineering.
The Dow Jones Industrial Index /zigman2/quotes/210598065/realtime DJIA -0.48% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.48% closed slightly higher Tuesday, 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 relations with China. The markets are digesting the escalating social unrest, and COVID-19, and the effects that may have on corporate earnings.