CNBC’s Jim Cramer on Wednesday honed in on the Dow Jones Utility Average.
CNBC's Jim Cramer on Wednesday honed in on the Dow Jones Utility Average, whose rally over the last several weeks he said suggests the economy is slowing down and interest rates may be headed lower.
"The utilities perform best when the economy's throttling back," he said."If this index were just up for a week or even two weeks, I might ignore it. But for the to rally this long, sorry, it is flashing red for the economy, telling us we're headed into the shoals of a slowdown." But Cramer said this sector is not necessarily an ideal market leader. These stocks do well in a slowdown because they are not discretionary—consumers must pay their utilities bills, he said. He added that the utilities have to issue a lot of debt to maintain and expand their operations, saying they are now spending more to support the burgeoning growth of data centers.
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