Stocks inched higher Wednesday ahead of the latest data on inflation, which market watchers expect to influence monetary policy at the Federal Reserve.
Stocks finished mostly higher Tuesday as traders looked for clues on how rising prices pressures may affect the Federal Reserve’s support for a U.S. economy recovering from the COVID-19 pandemic.
Here are a couple of the market moving stories that TheStreet Founder Jim Cramer is following Wednesday.
Why Cramer is Pro-FAANG
Amazon (AMZN) – Get Report, Facebook (FB) – Get Report and the other FAANG stocks are perfect when interest rates are falling and even when inflation fears rise, making the market choppy and volatile, according to Jim Cramer.
The Commerce Department will publish the May CPI data on Thursday, following on from last month’s decade-high rate of 4.2%. This could be the sternest test of the Fed’s transitory-inflation narrative yet.
Jim’s Take on Clover Health
The health insurance seller, backed by the venture capitalist Chamath Palihapitiya, was added to the list of meme stocks.
Clover Health yesterday saw more than 720 million shares change hands and the stock surged 86% on the Nasdaq amid a renewed push from retail investors
These investors exchange views on chatrooms found in Reddit and social media platforms such as Twitter.
In mid-afternoon trading Wednesday, 293 million shares were traded and the stock was down 12%.
Regarding the stock’s volatility, Cramer said, “A lot of people got short because it was an intelligent short. And they’re getting destroyed by people who don’t give a damn about the short story.”