Filed under: Coca-Cola (KO), PepsiCo (PEP), Market matters, Citigroup Inc. (C), Colgate-Palmolive (CL), Procter and Gamble (PG), Washington Mutual (WM), Cramer on BloggingStocks

TheStreet.com’s Jim Cramer this is one of the rare moments in time when every investor camp has reason to be pleased.

It’s one of those moments where all camps are happy.

The camp that owns and buys defensive stocks got plenty of reports that indicate the defensive stocks are coping with raw costs. Whether it be Procter & Gamble (NYSE: PG) (Cramer’s Take) with tremendous sourcing and leaner manufacturing, or Colgate (NYSE: CL) (Cramer’s Take) making so much more money than we thought, the case can be made that what looked like an overstretched group on a price-to-earnings multiple may turn out to be worth a few more points of multiple expansion in a lowering interest-rate environment. (Either Coke (NYSE: KO) (Cramer’s Take) or Pepsi (NYSE: PEP) (Cramer’s Take) could kibosh that this week, but you got it in spades last week.) Given that we had weak data — employment report — signaling recession, the thesis had gravitas.

Those who bought the industrials were rewarded because international was so strong and because there is hope that domestic turn in housing could be at hand. The commercial construction numbers, while slowing, aren’t slowing so hard that numbers are an issue.

Continue reading Cramer on BloggingStocks: Why things look good

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This entry was posted on Monday, February 4th, 2008 at 5:03 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.