Cramer Effect Sends Stocks Soaring Once Again

The Dow Jones industrial average jumped 188 points yesterday to close above 9,000 for the first time since early January. Adding to the markets broad gains, was the increasingly bullish sentiment on Jim Cramer’s Mad Money show. Bullish comments by Mr. Cramer on Wednesday night’s show sent Philip Morris (PM: 51.04 -0.27%), Lennar (LEN: 14.77 +0.41%), KB Homes (KBH: 11.38 +0.35%) and First Merit’s (FMER: 19.71 -0.66%) stock soaring on Thursday. 

Cramer again reiterated his belief that the housing markets have bottomed. In addition, housing now seems to be appreciating in value. Cramer believes this will lead to a positive turn for both KB Homes and Lennar. This recommendation was a change of course for Cramer who said just last month that he would stay away from homebuilders Lennar and KBH despite fair numbers because of stiff competition from foreclosures. “There’s just no money being made by these homebuilders,” Cramer said. This decidedly bullish shift helped both stocks gained over 6% on the positive recommendation. 

Philip Morris shares gained 4.9% after Cramer called the tobacco manufacturer a “quintessential growth stock”. Cramer likes Philip Morris overseas growth opportunities even if sales are sluggish here in the U.S. He also loves Philip Morris’s nearly 5% dividend. 

Other Cramer bullish stock picks: 

First Merit (FMER: 19.71 -0.66%) gained 5.2% – “Listen…they’ve done everything right…to the victor goes the spoils.”

BHP Billiton (BHP: 72.23 -0.23%) rose 3.3% – After Cramer reiterated that he likes the stock.

Chevron (CVX: 76.21 +0.25%) jumped 3.0% – “Now you’re talking…buy, buy, buy.”