Momentum stocks like Tesla, Zoom and SPACs are stalling

The same high-flying stocks that drew investors to the stock market last year have left newcomers out in the cold, CNBC’s Jim Cramer said Monday.

“The House of Pleasure has made walls of traditional stocks that remain under scrutiny, but the House of Pain is collapsing,” said the host of “Mad Money.”

Cyclical stocks used for the broader economy have caught fire, propelling the stock market to new highs, Cramer said. He pointed to stocks like Emerson Electric, Ingersoll Rand, Honeywell, PPG, Home Depot, Lowe’s, JP Morgan Chase and Wells Fargo.

Each of these stocks, minus Honeywell, has surpassed the market year to date. Wells Fargo was the strongest of the bunch with an increase of 45%.

“Then you have the second market, the market dominated by the younger cohort drawn to no-commission trading, an easy-to-use Robinhood app, and some very exciting stocks that made people fortune last year,” Cramer said. .

Tesla and Zoom stocks are struggling to maintain momentum after dazzling numbers in 2020. Zoom is down more than 8% this year, down 45% from its peak in October. Tesla shares are up just 1% since the start of the year. The stock last traded at $ 714.63, down about 21% from the end of January.

Cramer also said many SPAC plays have been shot in the “house of pain.” Some of these include QuantumScape, Nikola and Lordstown Motors, whose shares are down between 32% and 63% this year.

Disclosure: Cramer’s charity owns shares of Honeywell.

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