CNBC’s Jim Cramer stated the bond market gave shares a reprieve on Tuesday, however company earnings will dictate if shares can proceed to snap again from the worst buying and selling day this 12 months.
“It’s the actual sales and earnings numbers from the companies reporting right now that will determine if this move’s got staying power, even if the bond market throws us a curveball,” the “Mad Money” host stated after the main averages rallied laborious on Tuesday.
“When a company surprises to the upside … it’s mighty hard to keep that stock down,” he stated.
The Dow Jones Industrial Average jumped virtually 550 factors, one in every of the largest single-day positive factors it made this 12 months. The 30-stock index plummeted greater than 700 factors the day earlier than as bond yields dropped and fears unfold of a Covid-19 resurgence.
U.S. Treasury yields additionally rose throughout the session as the 10-year Treasury yield bounced from a five-month low it set Monday. Lower bond yields are inclined to assist larger costs in shares.
“I do think there are enough people out there taking their cue from the bond market that it could propel the whole stock complex higher,” Cramer stated.
“Today was a terrific reminder that interest rates can go higher, too, especially when they’ve come down to ridiculously low levels,” he added.