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Cramer: The Bull Market Is Fueled By These 7 Negative Catalysts That Turned Positive

Cramer: The Bull Market Is Fueled By These 7 Negative Catalysts That Turned Positive

Many market veterans with decades of experience on Wall Street are struggling to explain the strength of the stock market at a time when the news is full of concerning headlines, CNBC's Jim Cramer suggested during his daily "Mad Money" show recently.

In fact, the level of optimism appears to be "borderline delusional" with a "total suspension of skepticism," he said. In fact, investors may also be guilty of assuming that "everything works out for the best, especially for the following seven events.

7 Negative Catalysts Turned Positive

1. When Tesla Inc (NASDAQ: TSLA) reported disappointing delivery metrics, the stock should have nosedived but investors were buying the stock at a time when Wall Street analysts defended the company and its CEO Elon Musk.

2. For years, General Motors Company (NYSE: GM) was among the most hated stocks on Wall Street. Yet seemingly overnight, the company's perception changed after management announced its vision for the future.

3. Delta Air Lines, Inc. (NYSE: DAL)'s stock should have been "bathing in red ink" after the airliner detailed what impact Hurricanes Harvey and Irma will have on the airline. Yet the reaction among investors was a "mad scramble to buy the stock of any airline, not just Delta."

4. Sherwin-Williams Co (NYSE: SHW)'s acquisition of Valspar in 2016 wasn't well received by many investors but the company's announcement of synergy expectations from the deal turned the "mundane into the miraculous."

5. The ongoing strength in home building data has many experts calling for a peak before the "business falls off a cliff," yet there is no sign of that happening anytime soon.

6. It may seem hard to grasp, but the data breach scandal that plagued Equifax Inc. (NYSE: EFX) may not matter. Investors are looking to buy the stock because financial institutions continue using Equifax's products and services "as if nothing happened."

7. Domino's Pizza, Inc. (NYSE: DPZ) may be a prime example of a stock where Wall Street analysts look at the company and say: "'Gee, I've got to put on some more buy recommendations. I'm being left behind." Most recently, analysts at Stifel upgraded the pizza chain to Buy.

Related Links:

Cramer On Roku's IPO

Cramer: Wayfair Is One Of Wall Street's Most Contested Stocks

Posted-In: Airliners CNBC Elon Musk Home builders Hurricane HarveyLong Ideas Media Trading Ideas Best of Benzinga


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