CNBC’s Jim Cramer on Wednesday reminded investors that not all market moves are sensible, pointing to recent actions that he believes reflect faulty reasoning.
“Each day on this front is a reminder that you can’t just assume all moves on your screen are the products of any intelligence, especially during earnings season when the market’s overrun by idiocy,” he said. “So, when you see some action that doesn’t make sense, keep in mind that authentic stupidity is a perfectly plausible explanation, especially when it’s sending down stocks that should be going higher.”
To Cramer, Wall Street’s treatment of Apple stock hasn’t been wise. He said traders criticized the tech giant’s lack of innovation but changed their tune once the Vision Pro hit shelves. Cramer has long thought investors should own Apple, and said saw the value of the new virtual reality product before its official release.
Cramer said it was a mistake for investors to be wary of Chipotle just because peers in the fast food sector like McDonald’s and Starbucks recently saw poor earnings. The Mexican food chain’s Tuesday report crushed expectations, showing a 7.4% increase in restaurant traffic.
But Eli Lilly‘s action has especially puzzled Cramer. The pharmaceutical giant announced on Tuesday its popular drug for weight loss and diabetes may also treat liver ailments. Eli Lilly said the drug showed promising trial results as a treatment for a serious form of liver disease known as metabolic dysfunction-associated steatohepatitis, or MASH. The condition doesn’t currently have a cure or specific medicine to treat it. The company’s stock slowly declined during Tuesday’s session, but finished Wednesday up 2.89%.
“If this wonder drug can work against serious liver disease, we could be talking about 15 million more people than we thought that could be taking this drug just in the U.S. alone,” Cramer said. “Something made all the more impressive by the fact that we don’t have any good treatments for this sometimes fatal condition.”
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