Prominent market commentator Jim Cramer told investors not to dump their traditional, reliable stocks following Tuesday’s trading session that saw major Wall Street indices record mixed performances.
“It is so easy to panic out of stocks on the first sign of weakness,” Cramer said, according to a CNBC report. “I’m urging the opposite,” he said.
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On Tuesday, the Dow Jones fell over 1%, pressured by Goldman Sachs Group Inc GS earnings. Shares of Goldman closed 6.44% lower after it reported fourth-quarter revenue of $10.59 billion, which missed average analyst estimates of $10.83 billion, according to Benzinga Pro. The company's top-line results were down 16% on a year-over-year basis.
The S&P 500 closed marginally lower at 0.2%, while the Nasdaq Composite ended the session 0.14% higher.
As a result, the SPDR S&P 500 ETF Trust SPY closed 0.18% lower, while the Invesco QQQ Trust Series 1 QQQ gained 0.2%.
Tech Stocks: Cramer asserted investors should avoid rushing into tech stocks as most companies have not yet taken the cost-reduction steps imperative for their stocks’ recent runs to be sustainable, according to the report.
He pointed out that Tuesday’s losses mark a buying opportunity for another group of stocks. “I remain more partial to those traditional cyclical stocks. You’re getting a chance to buy them ahead of what I believe will be better earnings comparisons than you’re going to see from tech,” he said.
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