Stock Market Today With Jim Cramer: FTC Still Might Challenge Facebook

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Stocks were rising Tuesday and the S&P 500 and Nasdaq set intraday records in a broad-based rally.

Bank stocks JPMorgan Chase (JPM) – Get Report and Goldman Sachs (GS) – Get Report boosted the Dow after they and other big U.S. banks raised their quarterly dividend payouts following the banks’ passage of the Federal Reserve stress tests.

Stocks in Asia fell for a second day. Countries in the region extended lockdowns as they struggled to contain an outbreak of the Delta variant of the virus. 

Cramer on Facebook After U.S. Judge’s Ruling 

Action Alerts PLUS, Jim Cramer’s charitable trust, added another trillion-dollar company after Facebook’s stock jumped. The market move came after U.S. District Judge James Boasberg in Washington said the Federal Trade Commission failed to prove that Facebook is a social networking monopoly.

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“It’s going to be very hard for any government to prove any real damage and very hard to remedy that damage. But that does not mean that the FTC commissioner won’t go right back at them,” Cramer said on Tuesday from the floor of the New York Stock Exchange. 

The Federal Trade Commission can refile the complaint within 30 days. 

Morgan Stanley Reminds Cramer of This Company

Shares of Goldman Sachs  (GS) – Get Report and Morgan Stanley  (MS) – Get Report were leading bank stocks higher Tuesday following a host of dividend increases and buyback plans linked to last week’s Federal Reserve stress tests. The banks passed muster with the stress tests, which freed up capital held by the country’s largest lenders.

Morgan Stanley Chairman and CEO James Gorman “just bought a major company in E-Trade. Gorman has been buying companies that position his company as being when you first get your first million, you’re gonna use them. When you get your first thousand, you’re gonna use them,” Cramer said. 

He said the bank reminds him of Fidelity from back in the day.