That’s CNBC “Mad Money” host Jim Cramer shaking his head at ‘clueless’ investors who ignored multiple warning signs to buy up stocks during Tuesday’s bullish trading action…
“Never underestimate the power of enthusiastic buyers who do not know what they’re doing,” he said after the Dow Jones Industrial Average DJIA, +1.39% finished the session with a triple-digit gain. The S&P 500 SPX, +0.64% and Nasdaq Composite COMP, +0.52% also ended higher.
He specifically pointed to oil giant BP BP, +0.88% and biopharma firm Sorrento SRNE, +7.36% as examples. There’s “plenty of stupidity,” he said, “especially during earnings season when there’s so much news that it’s hard to keep track of what’s going on.”
BP’s surge, in particular, didn’t sit right with Cramer, who said it might be the “dumbest action” so far this year. “Not only are they telling you business is terrible, BP is trying to distance itself from crude while preserving cash, but maybe that dividend hike was a mistake,” he said.
In Sorrento’s case, Cramer pointed out the stock barely rallied last week when the company announced a new saliva-based Covid-19 test that yields results within half an hour. But then on Tuesday, the stock surged for the same reason. “The stock market’s supposed to be efficient,” he said, “but somehow it took Wall Street six days to process this news.”
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