There are signs of relief for stocks that, alone or together, could lead to a protracted rally, CNBC’s Jim Kramer said on Wednesday as Russia’s invasion of Ukraine and rising inflation continue to drive markets.
“It doesn’t take the whole parade of positives to play out because we only have so many stocks that are in bear market mode,” the Mad Money presenter said. “That’s the important thing. In fact, you only need one or two positives to ignite a long rally. If we get more, with this level of negativity, the market can be like a coil.”
Kramer cited several “positives” in his analysis, including a statement by Federal Reserve Chairman Jerome Powell on Wednesday that he expects to introduce a quarter-percent increase in interest rates, but the Fed will monitor Russia’s actions.
Other positives include a healthy consumer, proven by better-than-expected fourth-quarter results from retailers, including Walmart and Nordstrom, Kramer said. The pandemic restrictions, which are expected to ease in both China and the United States, are also leading to “very visible stockpiles raging,” he added.
Wednesday marked another stormy day on Wall Street. The Dow Jones Industrial Average rose about 1.79%, while the S&P 500 rose 1.86%. Nasdaq Composite rose 1.62%. The broad rally reversed losses from Tuesday’s trading session, although oil prices continued to rise.
Kramer said the stability of the market is indicative of a possible rally.
“One thing is for sure: if the market rises when nothing looks good … it means there is something good behind the horizon, we just haven’t recognized or taken it into account yet,” he said.