CNBC’s Jim Cramer said Thursday’s rally was due to the company’s strong earnings batch.
“I’ve said many times that what matters during earnings season is the companies and the CEOs who are smart to guide them,” he said.
Stocks rose on Thursday as investors digested the latest batch of earnings and new gross domestic product data showing the US economy grew by a better-than-expected 2.9% in the fourth quarter.
Cramer said that contrary to what many may believe, the economic data did not fuel the trading session’s rallies.
“It’s a classic misdirection game, just completely wrong. It’s outdated. It doesn’t count. We’re in a profit season, for heaven’s sake,” he said, adding: “Stocks did well today as most of them reported good numbers. “
He pointed to several examples of corporate news and earnings reports that contributed to Thursday’s gains;
“It’s very confusing if you’re on constant negative autopilot because you’re only paying attention to that. [Federal Reserve]. If you were looking at individual companies, these moves would be much less surprising,” Cramer said.