Jim Cramer says positive analyst notes hold real power in this market

CNBC’s Jim Cramer said today’s market presents a rare landscape where analyst upgrades and price target bumps are catalysts for market action.

“These recommendations and little tidbits and asides suddenly have power in this market because, at the moment, there doesn’t seem to be anything about what we call ‘resistance,'” he said, “Meaning there’s nothing stopping stocks from going higher: not the bond market, not the Fed, not inflation and not earnings.”

For example, Meta‘s stock closed up 3.65% on Wednesday after Mizuho expressed optimism about the tech giant’s ability to top revenue expectations this year. The firm cited improved monetization in Instagram Reels and Facebook shops, increased demand from Chinese advertisers, and it suggested the company’s WhatsApp and messaging businesses may be worth more than some think. But these sentiments aren’t new, Cramer said, and the stock rallied after this “rather modest push” because sellers are not as active as they have been.

He referenced Morgan Stanley‘s commentary that recommended cybersecurity stocks like Palo Alto Networks, which was up 5.22% by Wednesday’s close. Home Depot shot up about 3% after an upgrade from Wedbush, and Cramer credits a push from Oppenheimer for Salesforce stock recovering after its hiring freeze made news.

However, Cramer conceded that this pattern may not last. A hot consumer price index on Thursday could spell trouble for the market, and the start of earnings season on Friday usually brings out sellers, he said.

“Right now, it’s safe to say you can move up pretty much every stock purely on positive mentions,” he said. “It’s a rare moment. Enjoy it while it lasts.”

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Meta, Salesforce and Palo Alto Networks.