After a busy day of trading on Wall Street, CNBC’s Jim Cramer said the market is an opportunity for investors to find stocks that are excellent buys.
“Even though we had a brutal sell-off today, we are still in one of the biggest second chance markets I have ever seen, as you saw in industrials between the morning and the end of the day.” Mad Money “host said.
The stocks had a mixed session on Tuesday, with the Dow making a profit at close of trading and the S&P 500 falling 0.7%. The tech-heavy Nasdaq Composite retreated nearly 2%.
“We’ve seen this countless times, folks, but people have a very hard time remembering to buy, not sell, when stocks crash,” said Cramer.
Cramer suggested trading drug stocks to oppose a sale in the face of a selloff. Merck, Bristol-Myers Squibb and Eli Lilly stocks rebounded after missing estimates in their quarterly earnings reports last week.
“I think Eli Lilly, who we own for the charitable trust, is of real value to the rest of the market,” he said. “Lilly is making a fortune, and if its stocks have been crushed on bad tape they have to be bought. Apparently a lot of money managers are in agreement because they bounced back today.”
Eli Lilly stock closed at $ 188.20 on Tuesday after rising 1.2%. Cramer suggested that Eli Lilly’s move on Monday to approve a $ 5 billion buyback could mark a turning point for the stock, which has fallen more than 11% since late January.
Disclosure: Cramer’s charitable foundation owns shares in Eli Lilly.
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