Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday, June 5.
Even though the market was up on Tuesday, Cramer was concerned. That's because only 1-2 groups have been leaders while the others lag behind. This isn't a good sign. Tuesday was led by the usual FANG stocks and some cloud names. Coupa Software (COUP) gained 8.7% on good earnings and some retails stocks were up too.
Apart from these 2 groups there wasn't any other group leading. If this continues, the bull rally will run out of steam. The financials are an important group and Cramer expected the group to lead after a strong employment report. As it turns out, investors are waiting for higher interest rates. JPMorgan (JPM) trades at just 11 times earnings while Goldman Sachs (GS) trades at just 9.5 times. The transport, insurers and healthcare stocks are all lagging behind.
"The bulls can claim it's a work in progress, but the bears just say it ain't working. We need to see more leadership, and while I think it can emerge, right now it's just nowhere in sight," concluded Cramer.
Twitter (TWTR)
Standard & Poor's announced that Twitter will be replacing Monsanto in the S&P 500 (MON) as the latter is being acquired. "We're right on the precipice of the first generational change in the S&P 500 in ages and I can't help but feel that this is a metaphor for the way these companies are headed," said Cramer.
Acquirer Bayer (OTCPK:BAYRY) has chosen to scrap the name Monsanto as millennials believe that Monsanto has taken it too far and that natural and organic is the way to go. On the flip side, Twitter has become the best way to communicate in an unfiltered way. "Think of Twitter as the natural and organic
