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According to Cnbc, stocks fell for a second consecutive session on Friday, with the tech-heavy Nasdaq down more than 1%. Jim Cramer said higher bond yields were the common factor pressuring many shares after the highest yearly producer price index reading in nearly four years and a hotter consumer inflation report earlier in the week.
“The commonality, the threat is rates,” Cramer said. The CME FedWatch tool showed the market favored quarter-point rate increases next month and in January, with a possible additional move in March. The Federal Reserve raised rates for the first time in three years in September.
Nvidia shares dropped another 3% Friday, a day after Jensen Huang resigned as chief executive following an affair scandal. Cramer said there had been “no bid” for the stock, referring to a lack of buyers, while noting that some people viewed the company as “totally tainted.” Nvidia was the week’s worst-performing stock, down more than 13.5%.
Cramer called Friday’s decline in Advanced Micro Devices a “terrific opportunity” to buy the stock, saying he had not realized how much better AMD was doing than Intel. In portfolio trades, the charitable trust trimmed TJX before its upcoming earnings report and used the proceeds to add to Kimberly-Clark and Constellation Brands. The trust is long Nvidia, TJX, Kimberly-Clark and Constellation Brands.
