Stocks turned lower Tuesday as earnings season began with reports from banking giants JPMorgan Chase and Goldman Sachs .
The Consumer Price Index accelerated at a faster-than-expected clip in June, according to the Bureau of Labor Statistics, adding further pressure to the Federal Reserve’s view that rising prices will ease into the start of next year.
AbbVie Runup Doesn’t Make Sense, Cramer Says
“The destruction of the value of Allergan is extraordinary. They’ve done nothing with Allergan,” Cramer said of the company’s 2020 blockbuster acquisition. He added that sales of its popular Botox product “are very disappointing.”
He said that AbbVie’s team is not well liked at the FDA amid congressional hearings about the company’s pricing and patent practices.
“AbbVie is going up unnaturally. And it’s not because of the yield. Something else is going on,” Cramer said.
Shares of AbbVie neared a 52-week high in Tuesday trading. The stock is up nearly 10% year to date.
AbbVie is a holding in the Action Alerts PLUS portfolio of the investing club tied to Jim Cramer’s charitable trust.
Cramer Celebrates #AMCDAY Tuesday
Reddit investors are celebrating the second #AMCDAY of the year, noting their commitment to buying and holding shares of AMC Entertainment .
The stock of the largest U.S. theater chain on June 2 touched an all-time high around $62 a share. Last week, AMC shelved plans to ask shareholders to approve a planned capital increase.
AMC had been seeking approval to sell 25 million shares at some point next year in order to fund potential investment opportunities.
This article was originally published by TheStreet.