Despite the recent market turmoil, Jim Cramer has offered a reassuring perspective, suggesting that the current corporate earnings do not indicate an impending recession.
What Happened: CNBC host Cramer shared his insights on the corporate earnings reports, indicating that they do not signal a serious recession. He emphasized that the microdata from individual companies' reports does not support the notion of an imminent recession, reported CNBC on Tuesday.
"I think we're in a recessionless recession because I follow the actual micro data from individual companies that report," Cramer said. "When you run down the companies that reported in the last 24 hours, it's very hard to make the case that we're headed for a serious recession from here."
He highlighted the strong performance of companies such as Caterpillar Inc. (NYSE:CAT) and Builders FirstSource, Inc. (NYSE:BLDR), which exceeded expectations. Cramer also pointed out the encouraging results from consumer discretionary companies like Uber Technologies Inc (NYSE:UBER), Molson Coors Beverage Co (NYSE:TAP), Planet Fitness Inc (NYSE:PLNT), and Yum! Brands, Inc. (NYSE:YUM).
"There was just great quarter after great quarter after great quarter this morning. They just can't be seen by those who refuse to do the homework and only listen to central bankers," Cramer said.
Why It Matters: Cramer's comments come amid a period of economic uncertainty and market volatility. Despite the fears of a recession, several experts have expressed a contrary view.
For instance, economist Claudia Sahm, who developed the Sahm Rule, has stated that she does not believe the U.S. economy is in a recession.
Similarly, veteran Wall Street investor Ed Yardeni has challenged the recession fears, asserting that he does not expect a hard landing.
Despite the ongoing debate, the market has been experiencing significant fluctuations. The possibility of an emergency rate cut by the Federal Reserve was even speculated after recent shockwaves in the interest rate markets. However, the implied probability of a Fed emergency rate cut in 2024 dropped sharply to 14% by Tuesday.
- Potential Iranian Attack On Israel Could Rattle Markets: What Happened To Stocks When Russia Invaded Invaded Ukraine?
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
