Jim Cramer says these two themes determine how stocks currently trade

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CNBC’s Jim Cramer said on Monday that he believes Wall Street is drawing inspiration from two main areas right now, and stock investors should be connected accordingly.

“There are two major themes right now: the disruption of the supply chain… and that includes energy shortages, and the fact that interest rates are rising,” said the host of “Mad Money”. “. “You have to know these two themes every minute of every day if you want to pick stocks, because that’s what determines the averages.”

Cramer’s comments came after a mixed session for stocks on Monday, in which the Dow Jones Industrial Average gained 71 points, or 0.2%, while the tech-rich Nasdaq fell 0.5. %. The large S&P 500 fell 0.3%.

The move in equities came as the yield on the 10-year Treasury bill briefly exceeded 1.5% to hit its highest level since June. Rising bond yields, which move inversely to prices, put pressure on growth-oriented stocks, many of which are in the tech sector.

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The three major US stock indexes are down for September, a historically difficult month on Wall Street. The Dow Jones is down 1.4%, while the Nasdaq and S&P 500 are down 1.9% and 1.76% respectively.

Cramer has described his overall market outlook as neutral in recent weeks, citing seasonal headwinds and uncertainty over a number of factors such as Covid hospitalizations, the health of the labor market and political negotiations in Washington.

However, Cramer said he sees opportunities to buy individual companies that are weak. For example, he said on Monday that investors with long-term horizons can add stocks of “best-in-class” technology companies such as Amazon, Apple and Salesforce after those stocks were damaged by rising prices. bond yields.

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