# Cramer backs healthcare stocks as markets rotate

> Jim Cramer's investing club sees money flowing into healthcare and consumer staples as semiconductor and cybersecurity stocks fall.
- Title: Cramer backs healthcare stocks as markets rotate · CNBC
- Summary: Jim Cramer's investing club sees money flowing into healthcare and consumer staples as semiconductor and cybersecurity stocks fall. The S and P five hundred…
- Keywords: jim cramer, cnbc investing club, stock market, healthcare stocks, eli lilly, cardinal health, johnson and johnson, market rotation, semiconductor stocks, bank stocks, business, finance
- Source: CNBC — https://cnbc.com/investingclub/2026/10/14/jim-cramer-says-this-healthcare-stock-is-still-a-buy-plus-what-to-do-with-bny.html
- Author: Kevin Stankiewicz
- Published: 2026-10-14T15:50:01+00:00
- Read time: 1 min
- Topics: jim cramer, cnbc investing club, stock market, healthcare stocks, eli lilly, cardinal health, johnson and johnson, market rotation, semiconductor stocks, bank stocks, business, finance
## Markets fall on inflation data
The S and P five hundred and Nasdaq dropped Wednesday after warmer than expected September consumer inflation data. Semiconductor stocks fell for a seventh straight day.
## Money flows into safer sectors
Investors moved cash into healthcare and consumer staples as riskier sectors fell.Cybersecurity names including CrowdStrike and Palo Alto Networks tumbled.

> We are in a whippy rotational mode. Faster than I've seen in a long time.
## Healthcare stocks gain ground
All three healthcare holdings rose Wednesday. Eli Lilly led with gains over three point five percent, followed by Cardinal Health and Johnson and Johnson, both up over one percent.
## Cramer backs Johnson and Johnson
Johnson and Johnson bounced back from Tuesday's five point seven percent decline despite a disappointing earnings report.Cramer said the Innovative Medicine pharma unit was fabulous and urged investors to buy J and J right here.

> I do not want, for a moment, for people to think we're backing away from J & J. If anything, I think it's really important to buy J & J right here.
## Bank stocks slide on earnings
Bank of America fell seven point five percent after missing on revenues and facing a money laundering fine from the Treasury Department. Morgan Stanley and State Street also fell following earnings reports.
## Cramer waits on Bank of New York
State Street's nearly eight percent drop is pressuring Bank of New York, which reports Thursday. Cramer said he wants to hear from BNY before deciding whether to buy more to lower the club's cost basis.

> I know this company is doing so many things right. I timed it wrong.
## Honeywell position exits Wednesday
Jim Cramer noted the club is planning to exit its Honeywell position later Wednesday, freeing up a spot in the portfolio. He said he has plenty of stocks on his radar to buy.
## Key takeaway

The S and P five hundred and Nasdaq fell Wednesday on warm inflation data, prompting a rotation into healthcare stocks including Eli Lilly, Cardinal Health and Johnson and Johnson, which Cramer said investors should buy.