Positive real estate data and a price recovery "in some key stocks" fueled Monday's buying on the exchange, said CNBC's Jim Cramer.
The Dow Jones rose 580 points to 25,595.80, an increase of 2.32%, the S & P 500 rose 1.47% to 3,053.24 and the tech-heavy Nasdaq climbed 1.20% to 9,874, 15.
"We had a lot of encouraging signs today, but keep in mind that this market loves to move from one extreme to the other," said Mad Money's host.
The market reclaimed much of its losses from Friday's session when key averages all fell more than 2% as the blue chip index lost 730 points amid rising coronavirus cases in the south and west of the United States. Shares were sold as several states slowed down their reopening plans.
Texas, Florida, California and Washington canceled their reopening plans as positive cases and hospitalizations increased. Even though the number of cases is declining in New Jersey, Governor Phil Murphy postponed Monday's plans to allow indoor dining to resume on Thursday, and led leaders in other states after restaurants reopened.
"Friday felt like the end of the world; today it feels like we're out of the forest. Tomorrow? Who the hell knows that?" Said Cramer.
Upcoming house sales set a record in May and rose 44% when home buyers re-entered the market. The results helped the market reverse its negative performance on Monday morning as the S&P rebounded almost 2% from its daily low. Investors also saw a bargain on Nike, whose stock fell nearly 8% on Friday, reflecting poor earnings in the fourth quarter of the fiscal year. On Monday, the stock rose 2.35%, said Cramer.
Facebook stock fluctuated – fell more than 8% on Friday – and a growing list of companies took part in an advertising boycott of the platform. However, a JPMorgan analyst said in a Monday morning announcement that boycotting outside of a short-term hit was not a "significant risk to numbers," Cramer said. The stock rose 2% to $ 220.64 during the session.
In addition, Southwest received a double upgrade from Goldman Sachs, which the airline recognized as the best comeback opportunity, the host said. The market received another boost from Boeing's 737 Max progress, he added. Boeing stock rose 14.40% after it was reported that the aircraft manufacturer would start a multi-day certification test backed by the U.S. Aviation Authority as the company tries to get the best-selling aircraft back to heaven after two fatal accidents had killed hundreds of people within the United States in the past two years.
Investors continued to switch to recreational games on the market as bank stocks also recovered from poor stress test results on Thursday, Cramer said.
"The Cramer Covid index lagged today for one simple reason: if you think these [in-] spike infections are just not a problem, you want to do without the Covid stocks," said the host. "I think that's a wrong argument. Too many countries are gradually closing down to write it off as no big deal."
Disclosure: Cramer's charitable foundation owns shares in Facebook and Goldman Sachs.
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