Jim Cramer argues that falling interest rates, particularly the decline in the 10-year Treasury yield, are the magic elixir driving Tuesday’s stock market rally, helping the Nasdaq recover into positive territory after early losses triggered by a South Korean market sell-off and higher oil prices. Pharmaceutical stocks are posting strong sessions, with Johnson & Johnson up more than 2 percent and Eli Lilly crossing above $1,300 a share for the first time ever, gaining over 4.5 percent. Apple is down less than 1 percent after Loop Capital analysts downgraded the stock from buy to hold, citing valuation and lower iPhone shipments this fall, which Cramer dismisses as near-term noise irrelevant to the company’s long-term health. Cramer suggests investors should focus on large-cap winners like Eli Lilly rather than smaller players such as neocloud company Iren. Jim Cramer’s Charitable Trust holds positions in AAPL, JNJ, and LLY.
Source: Read the original article
