CNBC’s Jim Cramer stated Friday the current market underperformance of non-tech stocks provides traders the possibility to buy names that do properly when Americans spend their cash.
“What an opportunity to buy things that are being thrown away left and right,” Cramer stated on “Squawk on the Street,” as Dow futures pointed to an over 200-point decline as Austria announced a fourth national lockdown beginning Monday. “I think travel is good. I think retail is great.”
“We’re oversold. The Dow has been down for a long time. Technology can’t always lead us,” Cramer stated, shortly earlier than tech-stock power on the open initially pared losses within the S&P 500 and the 30-stock average. The Nasdaq carried over its modest positive factors from the premarket. Later within the session, the Dow‘s drop gained steam.
Concerns about rising Covid circumstances in Europe will not lead to a slowdown within the U.S. economic system, Cramer stated. “I think you pounce on it. Maybe we get more bad news in Europe over the weekend so you pounce some today and then some next week.”
The “Mad Money” host stated he likes journey and retail stocks. “The American consumer is amazingly strong. Anything related to the American consumer — whether its travel, whether it’s the spending at the mall — is just a fantastic opportunity.”
Airline stocks have been getting slammed on European Covid worries, with United main the sector decrease with a roughly 4% decline Friday. Cruise and lodge stocks have been additionally weaker.
Shares of Walmart and Target have been bouncing modestly Friday after being hit earlier this week. Strong quarterly outcomes from the retailers have been overshadowed by considerations about margins as a result of they largely absorbed larger prices associated to provide chain disruptions and labor shortages quite than passing them alongside to their prospects.