Cramer names 4 Dow stocks to buy after rally
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- Cramer spotlighted Sherwin-Williams, Caterpillar, Home Depot, and Goldman Sachs as the Dow's biggest winners Wednesday, saying those four moving together signals investors expect interest rates to fall.
- Trump's announcement of a two-week suspension of U.S. attacks on Iran sparked the rally, with the Dow up 2.85%, S&P 500 gaining 2.51%, and Nasdaq jumping 2.8%.
- Caterpillar surged 6.51%, and Cramer called it a stock with "multiple ways to win" that benefits when lower rates make construction financing cheaper.
- Goldman Sachs reports earnings next week, and Cramer expects strong results, citing an anticipated "rush of deals" from a Trump administration he called "incredibly pro dealmaking."
- Cramer flagged Chevron, Diamondback, Salesforce, Workday, and Dow Inc. as Wednesday's losers, tying Salesforce and Workday's declines to lingering AI disruption concerns and oil/chemicals names to unresolved Middle East supply risks.
- Crude oil plunged on the ceasefire news, with West Texas Intermediate falling over 16% to $94.41 per barrel and Brent crude dropping roughly 13% to $94.75 per barrel.
- Cramer cautioned that supply disruptions from a five-week conflict — during which Iran closed the Strait of Hormuz — "may not be solved overnight," telling viewers he's "not sure how easy it is to give up on" affected stocks.
Why it matters: Cramer turns Wednesday's relief rally into a buy list split along a clear thesis: rate-sensitive cyclicals (Caterpillar, Home Depot, Sherwin-Williams, Goldman) for an expected rate-cut environment, versus AI-disruption-exposed software and still-vulnerable oil/chemicals. With the 10-year yield falling sharply and Home Depot rebounding from a two-year low, the immediate catalyst is whether the Iran ceasefire holds — a Goldman earnings beat next week would validate the dealmaking trade.
