Cramer: 'Giant reset' looming for markets
By Paul Toscano | CNBC –
A "giant reset" is looming for the markets because the improving economy is simply not trickling down to companies' bottom lines, CNBC's Jim Cramer said Thursday.
"Macro is great, but when you have to go deal with companies, it's bad," Cramer said on "Squawk on the Street."
"We have to deal with the four walls of the corporate canvas, and they are simply not able to turn this macro positive into micro earnings gains, and that's a real conundrum, particularly when the 10-year is signaling that happy days are here again," he said.
(Related: S&P could trade between 1,850-1,900 'relatively easily': Pro )
"There's a giant reset going on," he added. "It's just playing out right in front of us," pointing to disappointed expectations that are simply too high in places like retail sales and technology.
"It's almost like the CEOs are saying 'whoa' " to the market bulls, Cramer said, because the boots on the ground-the companies providing guidance-are seeing that things are just "OK" and "inconsistent."
For example, Cramer pointed to the underlying message in Cisco's earnings-that the "stock got ahead of itself."
(Read more: Cisco CEO Chambers explains layoffs, Q4 earnings )
"In the end, the market comes down because of the reset," he said. "I'm in love with macro, but I'm swimming in the toxic pit here."
Disclosure: Jim Cramer's charitable trust owns shares of Cisco.
When a television personality or newspaperman a media guru makes a statement about a company and then because of the statement there is a swift movement in the direction of a share, then that person is "making a market" and may be assisting a specific group of people who may have already positioned themselves to benefit from the move according to the statement of the television personality.
When it happens over and over again, it's a red flag.
Only in America...God bless the almighty green back.
He pumps CRM and AMZN which does not make net profit. ( only sales) He pumps only on "Growth company" It seems as if it is a "growth company" (what fvck with growth company any way), it can have PE of whatever..
Companies not making much money is worth company is making some net profit.
I dont listen to cramer but it is true that stock runs exceptionally well on the hype of growth....ironically once growth is achived then it is dead stock.....very few companies ( or may be only aapl) can have a buyback that replaces growth.....also aapl growth story is not finished yet...its jus revived