Earnings season is drawing nigh and one more pullback before the week ends could be a positive for the market, CNBC's Jim Cramer said Tuesday.
Tuesday's decline, where the three major indexes all fell less than 1%, was a "very healthy" move before companies start reporting, he said.
"Let's just say they have plenty of room to rally if they beat the numbers," the "Mad Money" host said. "Today removed a lot of the froth that I don't like. One more pullback like this before the big banks start reporting on Friday and I think we're gonna be in very good shape."
Don't fear a market peak
The rally has gone on so long that it's reasonable to think the market could soon hit a ceiling, Cramer said.
Cramer, however, is not convinced that the market is reaching a peak, even though all three major U.S. indexes declined during the session about 0.60%.
Still, he considered the main reasons investors and analysts say an end to the climb is near.
"I want to vaccinate you against these vociferous top callers by laying out the ten best reasons why the market actually might be peaking," the host said. "I'm just trying to ensure that you'll be prepared when you hear pundits and portfolio managers make these same arguments, but they're going to do so in a more emphatic and, yes, hysterical way and tone."
Cramer debunks fears that the market could peak here
Will the new Zillow work?
Andrew Harrer | Bloomberg | Getty Images
Richard 'Rich' Barton, Zillow
It's too early to make a bet on Zillow and its fledgling home-flipping business even under new management led by co-founder Rich Barton, Cramer said.
The online real estate marketplace expects core business revenue to grow 56% within the next five years, but their cash-burning plan to buy and sell homes could take just as long to realize $20 billion in annualized revenue.
Cramer thinks that's too long to wait and see if the program will work.
"I liked the old Zillow, even if it was slowing down a bit, as it was a lot less risky," the "Mad Money" host said. "I'm not yet sold on the new Zillow, even with a much better class of CEO."
Read more here
Nick Oxford | Reuters
A drilling crew member on an oil rig in the Permian Basin near Wink, Texas.
Technology and oil stocks have rebounded after the fourth-quarter sell-off and investors should be conscious of how much farther they could run, Cramer said.
He looked at chart patterns provided by commodity broker Carley Garner, co-founder of DeCarley Trading, to see where the stock prices could be headed. Technical analysis examines the price history to determine when to buy or trade a security.
"Oil and technology have led this market higher for months and now the charts, as interpreted by Carley Garner, suggest that they're running into some resistance," the host said.
Cramer highlighted that crude and the tech-heavy Nasdaq 100 have been trading in near lockstep over the past 180 sessions — peaking at the same time in October and bottoming at the same time in December — although tech has bounced harder.
"But she thinks both groups could have, alas, one more hurrah, with oil having more potential upside,"
Get more analysis here
Focusing on climate change
Scott Mlyn | CNBC
Jeffrey Eckel, CEO, Hannon Armstrong
Hannon Armstrong Sustainable Infrastructure Capital is a real estate investment trust that dedicates its money to fighting climate change, one of the biggest political topics today.
Responding to a question about the Green New Deal championed by New York Rep. Alexandria Ocasio-Cortez and fellow Democrats, CEO Jeff Eckel told Cramer he's pleased that discussion about climate change has picked back up since the President Donald Trump pulled the United States from the Paris Climate Accord nearly two years ago.
"I've been a student of public energy policy for 40 years and I think it's time we did the one thing we've never done, which is price carbon," Eckel said. "Don't let the government get it, get the money back to citizens, but start to capture the—start to internalize the socialized cost that fossil fuel interests are spreading out to everybody through climate change and other problems and internalize it. Let them privatize the cost of the impacts of carbon."
Catch the full interview here
Crude prices are rising. What's up with oil stocks?
Andrew Burton | Getty Images
A gas flare is seen at an oil well site on July 26, 2013 outside Williston, North Dakota.
Cramer considered whether it's time for investors to trade oil stocks, which have gone nowhere despite a big run in crude prices.
But he admitted it's hard because the sector might go up after pulling the register.
Get his full insight here
Cramer's lightning round: I promised my kids I wouldn't, but I'm recommending this one
In Cramer's lightning round, the "Mad Money" host ran through his responses to callers' stock picks of the day.
McDonald's Corp.: "I think it is still a good buy. I think that [CEO Steve] Easterbrook's doing a good job. I know I promised my kids I would not recommend this. They said: 'Dad, he has not done his best, yet, to clean up the environment.' But I think he's trying. I like the stock."
Moderna Inc.: "Moderna, we like them. I pulled up on them in San Francisco. They got game."
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