TBEN’s Jim Cramer said Thursday’s rally is due to a string of strong corporate gains.
“I’ve said over and over that during earnings season, the most important thing is that companies and the CEOs are smart enough to lead them,” he said.
Stocks rose on Thursday as investors processed the latest string of gains and new gross domestic product data showed the US economy grew 2.9% in the fourth quarter than expected.
Cramer said that, contrary to what many may believe, economic data was not the driving force behind the trading session’s rallies.
“That’s a classic deceiving game — just totally wrong. It’s stale. It doesn’t count. We’re in the hell out of earnings season,” he said, adding, “Stocks did well today because a lot of them put in good numbers.”
He discussed several examples of company news and earnings reports that fueled Thursday’s gains:
“It’s very confusing when you’re permanently on negative autopilot because you’re just paying attention to the [Federal Reserve]. If you looked at the individual companies, these moves would be a lot less surprising,” Cramer said.
