Cramer examines Wednesday’s rally and says investors are looking for new winners as inflation fears ease

• CNBC’s Jim Cramer weighed in on Wednesday’s rally, warning investors against buying any stock.
• “Today’s session shows that people are itching to get into this market in the worst possible way, and sometimes the worst way is to just buy whatever has fallen behind,” he said.

CNBC’s Jim Cramer examined market action on Wednesday and said the ongoing rally is sending eager buyers looking for promising stocks.

Major indexes posted gains on Wednesday thanks to more promising inflation data that could signal an end to the Federal Reserve’s tightening cycle. Cramer said many on Wall Street may find new reasons to own other stocks that have lagged in the past, but he cautioned against just buying everything.

“Today’s session shows that people are itching to get into this market in the worst possible way, and sometimes the worst way is to just buy whatever has fallen behind,” he said.

Cramer began by pointing to Target as an example. The major retailer ended Wednesday up nearly 18%, with the rally fueled by an earnings report that handily beat Wall Street expectations. Cramer said investors rushed to buy Target’s shares because they were “looking for laggards that maybe shouldn’t be laggards” or stocks that can catch up. He added that the company could look more attractive to Wall Street if inflation cools and consumers have more money to spend.

Estee Lauder also fits this pattern, said Cramer. The cosmetics company saw a sharp decline from its highs earlier in the year but has posted gains in recent days. Estee Lauder does a significant portion of its business in China, and Cramer suggested the stock’s rally could be fueled by hopes surrounding President Joe Biden’s meeting with Chinese President Xi Jinping.

“I think it’s worth breaking down today’s move because it shows how much people want to own stocks here and buy stocks here,” Cramer said. “They’ve just had difficulty finding new ideas that fit a scenario where inflation is cooling quickly and we’re nearing the end of the Fed’s rate-hiking cycle.”

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Estee Lauder.