Prominent market commentator Jim Cramer reportedly said the market’s reaction to the earnings report from Nike Inc NKE and FedEx Corporation FDX provides an important lesson that it’s misguided to focus purely on Federal Reserve commentary and predictions on where the S&P 500 will move next.
“You’ve got a whole contingent of professional commentators and money managers who act like nothing matters beyond statements from the Fed and the price levels of the S&P 500,” Cramer said according to a CNBC report. “See, they’re dead wrong, but that mentality explains why so few of them saw today’s rebound coming,” he said.
Also Read: How To Invest In Startups
Both Nike and FedEx reported an upbeat set of earnings that helped boost major Wall Street indices. The SPDR S&P 500 ETF Trust SPY closed 1.5% higher while the Vanguard Total Bond Market Index Fund ETF BND rose 0.23%. Market reaction was also responding to positive Consumer Confidence data.
According to Cramer, it’s possible that Wednesday’s optimism may quickly fade and bearish waves may start rushing over the market again. He noted that the unexpected rise — sparked largely by corporate earnings — shows the benefit of focusing on individual companies that can outperform expectations. Focussing too much on the S&P 500′s next move can make that task difficult, he stated according to the report.
“Stocks are not just bushels of wheat or bales of hay or any other kind of grain varietal. There are huge differences between individual companies,” Cramer said.
Read Next: Cathie Wood Splurges On Tesla For 6th Straight Day As Weekly Purchase Crosses $23M Amid Stock Slide
Photo: Courtesy of Scott Beale on Flickr
Image and article originally from www.benzinga.com. Read the original article here.