Wednesday’s ‘crazy session’ reflects the market’s fresh normal

A cross current of bad retail data in addition to market-moving news out of the White House carried Wall Street higher on Wednesday, CNBC’s Jim Cramer said.

The Dow Jones Industrial Average gained nearly 116 points Wednesday. The S&P 500 advanced 0.58%, while the Nasdaq Composite advanced 1.13%.

“We got a weird combination of tailwinds today … Turns out we can get Great news, too, in addition to some days like today the stock market actually makes sense,” the “Mad Money” host said. “I want to walk you through what happened in This particular crazy session because in which will be a perfect encapsulation of the fresh normal.”

The market had a rough opening after news in which retail sales declined for the second time in three months, tallying a 0.2% fall in April. The weakness included autos, home centers in addition to the internet stores, Cramer said.

in which brought the benchmark 10-year Treasury to its lowest yield of the year at 2.37% in addition to pushed buyers into stocks with safe, consistent dividends, he noted, including Kimberly-Clark in addition to PepsiCo. Money also moved into Facebook, Amazon, Netflix in addition to Google’s Alphabet, along with the financial technology plays of PayPal, Square Inc., Visa in addition to MasterCard, he added.

Even health care stocks, which have been hurting amid calls by some Democratic presidential candidates for 1-payer system, rallied because the industry does well in a slowing economy, Cramer said.

Macy’s saw action during the session similar to Ralph Lauren’s the day prior, Cramer said. The department chain’s share cost rallied after the company reported an earnings beat in addition to recorded higher-than-expected sales inside morning, although the company ultimately revealed how vulnerable in which will be to tariffs in addition to finished down 0.46%.

The Trump administration has imposed tariffs on 40% of imports by China in addition to will be considering slapping duties on the remaining 60%, Cramer said.

“If in which happens, the analysts will have to slash their estimates on This particular one,” Cramer said. “Macy’s won’t be alone. Almost every retailer has some exposure because they’ve spent decades sourcing their merchandise by Chinese vendors in order to keep costs down. currently in which’s blowing up in their faces.”

Later inside day, news broke in which the White House plans to delay automotive tariffs by up to six months.

“I can’t overemphasize the importance of This particular leaked news,” Cramer said. “In one fell swoop, [President Donald] Trump went by being a hated protectionist, know-nothing to someone who might be cleverly assembling a coalition of the willing inside trade war against the Chinese, at least inside eyes of Wall Street.”

Furthermore, more CEOs of companies in which deal with China are warming up to the action in which Trump has taken on the country, Cramer said.

in which includes Goldman Sachs CEO David Solomon, who on Tuesday tweeted: “Tariffs might be an effective negotiating tool.” Cramer also highlighted in which fresh York Times foreign affairs columnist Tom Friedman, who will be a proponent of globalization, became available in support of the trade war.

“To me, these represent tectonic shifts inside Wall Street consensus,” Cramer said. “I think in which gives Trump a much better bargaining position versus the Chinese, in addition to in which certainly gave us higher stock prices.”

WATCH: Cramer reviews Wednesday’s stock market action

Disclosure: Cramer’s charitable trust owns shares of Apple, Facebook, in addition to Alphabet.

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