Tags: Cramer | stock | Dow | jobs

Jim Cramer: Stock Market Rally Still Has Legs

Thursday, 03 Jul 2014 11:11 AM

By Dan Weil

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Does the Dow Jones Industrial Average's breach of the 17,000 level signal an end of the five-year bull market?

"I think that's the natural question," CNBC "Mad Money" host Jim Cramer said on his show Wednesday, before the Dow reached the 17,000 level. "The knee-jerk reaction is to think it's too late" to get in on the action.

But that's not how Cramer sees it. The Dow should move much higher, he argued.

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!


The Dow stood at 17,043.38 Thursday morning, up 67.14 from Wednesday's close.

"Looking back at the recent advance, five stocks have done the most to propel the Dow from 16,000 to nearly 17,000. Just five stocks: Caterpillar, Disney, Intel, Merck and Cisco," Cramer claimed.

"I see many reasons to believe all of them could keep on climbing. All of them."

Many investors say that Friday's strong jobs data boosted their enthusiasm for stocks. Payrolls rose 288,000 in June, and the unemployment rate fell to 6.1 percent, the lowest since September 2008.

The employment data are "really great" news for the economy and reason for investors to "get more aggressive," Cramer said after the report.

"This is a pretty strong report,” Jim Paulsen, chief investment strategist at Wells Capital Management, told Bloomberg. "This is stuff that is going to lead to upward revisions of second-quarter growth rates, and it starts off the third quarter in a real positive momentum place."

But Matt Hougan, ETF.com's president of analytics, says the Dow has little usefulness for investors. "You're missing 99 percent of the companies in the market," he told MarketWatch.

"It's only 30 stocks."

You can invest in the Dow through an exchange-traded fund. But, "as an investment, it's really a pretty silly idea," Hougan said.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

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