Rate Hikes On The Horizon? Cramer Says Buy JPMorgan

Shares of JPMorgan Chase & Co. (NYSE: JPM) were trading higher by more than 2.5 percent Wednesday morning because the "pre-hike people have spoken."

These were the words Jim Cramer used during Wednesday's segment of "Stop Trading."

According to Cramer, JPMorgan's stock is "most responsive" to any rate hike. He noted that even though JPMorgan hiked its dividend on Wednesday, investors are still more focused on the company's ability to outperform in a higher rate environment.

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He added that the second "most responsive" bank would be Bank of America Corp (NYSE: BAC) and investors seem to agree as its shares were trading higher by nearly 3 percent.

Cramer continued, "The market is saying you can own the banks" because "the rate hikes are coming." He suggested a sector shift is occurring as investors are taking money out of retail holdings because investors "don't trust" the large dividend yields offered by names such as Macy's, Inc. (NYSE: M).

Cramer noted retailers are sitting around and "hoping" the customer will simply "come back."

"We are going to sell them some sweaters," Cramer said mockingly of retailers hoping to regain traffic and sales. As such, the bank stocks may be a suitable investment as the companies are "in control of their destiny."