Jim Cramer lists 12 ways for stocks to get rid of September hardships

CNBC’s Jim Cramer on Wednesday detailed a long list of issues he says need to be addressed for the stock market to overcome its recent malaise and build significant momentum.

“We don’t just need a handful of these positives before I can start to feel better about this situation, we need almost all of them. If we get them, the market will skyrocket, but if we don’t, so the next few weeks could be as brutal as advertised, ”said the host of“ Mad Money ”.

Cramer said he was currently “neutral” in the market during a historically tough month for stocks. The three major US stock indexes are in the red for September, although they ended higher on Wednesday.

Here’s Cramer’s recipe for how market sentiment and stocks can rise significantly:

“We need good news on the jobs front. The not-so-hot August non-farm payroll report has harassed us since we saw it, hasn’t it?” Cramer said. “If we can get a large number in a few weeks, then we can conclude that the absence of extended unemployment benefits solves the labor shortage,” he added, while warning that this no is not necessarily a “sure thing”.

“Any business planning their budget for next year has to assume, for once, that prices may not continue to rise, because right now when you put pen to paper, they all do,” Cramer said. “At this rate, these companies may not have the means to develop,” he added.

A semiconductor shortage disrupted crucial industries like the automotive industry for months. However, Cramer said, “until we get more manufacturing capacity, the shortages could continue.”

Beyond the chip tightening, Cramer said supply chain issues more broadly continue to weigh on market sentiment as they inhibit economic activity.

“The rising price of oil, force majeure for paint ingredients, the endless wait for appliances or washers or dryers; these shortages are freezing the economy. It must thaw if business is to resume,” said To screw up.

On a related note, Cramer said signs that port congestion is easing will help the market.

When the next round of earnings reports are released, Cramer said he wants companies to say they see “the light at the end of the tunnel” when it comes to the supply capable of meeting consumer demand. . “It was a good problem at first.… It’s not enough anymore,” he said.

Likewise, executives claiming to see commodity costs fall would come as a welcome surprise to Wall Street, according to Cramer.

“The stock market needs… Kindergarten to Grade 12 to open and stay open,” Cramer said. While he acknowledged that there could be Covid risks associated with it, he said he was simply saying it could help the economy as it allows parents to return to work more freely.

“Do you want to solve the labor shortage? … Open schools,” he said.

“Maybe it’s happening because employers are starting to require vaccinations, maybe the delta variant is infecting so many people that we finally have some semblance of herd immunity,” Cramer said. “A definitive drop in hospitalizations could overwork this market.”

Many investors worry when there is a drop in air passenger numbers, Cramer said, so a pickup in air travel – and hotel occupancy rates as well – would offer positive economic signals.

“We want a rise in interest rates caused by a stronger economy, not inflation. Don’t fear higher rates; fear rising rates when the economy is not doing well,” Cramer said.

Cramer said he only wanted to see high-quality companies come to the public market, fearing that “all the IPOs and PSPC deals are flooding this market with oversupply that we don’t need.”

“No more buyouts like the Microsoft ones that eliminate excess inventory supply and instill confidence in corporate balance sheets,” Cramer said. The tech giant announced a $ 60 billion buyback earlier today, along with an 11% rise in dividends.

Politicians in Washington and Beijing “need to get off the radar screen,” Cramer said. In China, the scrutiny of companies by regulators makes Chinese companies difficult to own, Cramer said, while in the United States, talks about raising capital gains taxes and other policies can “shake the market”.

“Before they think about raising taxes, they should do something useful like raise the debt ceiling,” Cramer said.