Cramer: Like Them or Not (and I Don't), Bonds Set the Tone Today

Boy, do I hate talking about bonds. They are so quintessentially boring. They go up pretty much in unison and down in unison and beyond that there's not much to them. When they're sold en masse, interest rates go higher, and when they're bought aggressively in size, rates go lower. But today they are all that matters. That's because these days when rates go higher, it's game on for a host of stocks, particularly the ones that have languished of late, notably the cyclicals, the retailers and, most important, the banks.

For years the driving forces in the bond market, the reasons why rates go higher or lower, had to do with inflation and the Federal Reserve. If bond holders thought more inflation is coming or, perhaps more important, anticipated the Fed talking about higher inflation and the need to tighten rates, then they dumped bonds and rates flew higher. You get great job growth, rates go higher. You get big retail sales, rates go higher....1097 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.