The Federal Reserve's decision Wednesday to raise interest rates is a good thing for the stock market, Jim Cramer told his Mad Money viewers Wednesday.
The Fed isn't being reckless, Chairman Jay Powell is using a common-sense approach to break the cycle of inflation so stocks can go higher.
We've been in a bear market since November because companies are paying more for just about everything, which leads to lower profits. That's why tamping down inflation is a good thing. The Fed can't wave a magic wand and make inflation disappear, but they can curb demand and promote stability, giving supply time to catch up and return to equilibrium.
Those that worry about the yield curve aren't stock investors, they're mostly bond traders. The yield curve has little to do with the earnings of individual companies. So instead of fretting whether the Fed will make six moves this year or seven, focus on what rake hikes mean for the companies in your portfolio. Most of our economy will do better once their supply chain issues have been resolved.
Executive Decision: American Express
In his first "Executive Decision" segment, Cramer sat down with Steve Squeri, chairman and CEO of American Express (AXP), ahead of the company's annual investor day.
Squeri said that technology and great customer service have been driving the growth at American Express. The company has been investing in its customers and its brand throughout the pandemic, he said, which has led to the 18% to 20% revenue growth it is forecasting this year.
Squeri added that millennials and Gen Z consumers have been flocking to the American Express brand both for the prestige of the brand and the many rewards they offer.
When asked about travel, Squeri said that consumer travel has already started to return, and with so many remote employees these days, he expects a new segment of business travel to emerge as remote workers meet with their teams in person from time to time.
Finally, Squeri noted that American Express has the best employees because they're a great place to work and offer hybrid work options.
Off the Charts
In the Wednesday edition of "Off The Charts", Cramer checked in with Tom DeMark for a second opinion on where the markets are headed next. Last night, Cramer got Carolyn Boroden's technical read on the major averages.
DeMark's analysis uses his proprietary indicators that track trend exhaustion that leads to changes in market direction. He first looked at a daily chart of the Nasdaq 100, noting his indicators forecast the market top in November with two 13-day countdown patterns emerging. Currently, the market is on day 10 of a 13-day bullish countdown pattern, meaning we may see one more leg lower before the bottom is at hand.
A daily chart of the S&P 500 was also on day 10 of the same 13-day bullish countdown.
Finally, DeMark looked at Hong Kong's Hang Seng Index, which has been leading the world's market lower as another Covid surge hits China. Here too, DeMark saw that a bottom might soon be close at hand.
Executive Decision: SentinelOne
For his second "Executive Decision" segment, Cramer also spoke with Tomer Weingarten, co-founder and CEO of SentinelOne (S), the cybersecurity company with shares that soared 13.4% Wednesday on the company's strong earnings.
Weingarten said we're in a state of "cyber chaos" at the moment, with a massive increase in malicious activity being conducted around the globe. Companies have been stepping up to the challenge, he said, often deploying solutions from multiple cybersecurity companies to ensure they're protected.
When asked about going after these cyber hackers, Weingarten said they are limited in what they can do. Cybersecurity firms cannot retrieve stolen data or funds, they can only detect the intrusion and share the information with law enforcement, while preventing future attacks.
Lightning Round
In the Lightning Round, Cramer was bullish on Crocs (CROX), AGCO Corp. (AGCO), Deere & Co. (DE) and Coterra Energy (CTRA).
Cramer was bearish on Nutrien (NTR).
Strong Countries, Strong Markets
In his "No Huddle Offense" segment, Cramer offered up his thoughts on Ukrainian President Volodymyr Zelenskyy's address to Congress earlier Wednesday.
Cramer reminded viewers that strong countries have strong stock markets, and no one wants to see weakness, not in politics, stocks or in life itself.
There's a lot more the U.S. can do to help the people of Ukraine, Cramer said, and there has to be a middle ground between total non-confrontation and nuclear war with Russia. Appeasement is a terrible strategy and America cannot always aim to de-escalate. Sometimes, you need to make a stand, Cramer said.
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