CNBC’s Jim Cramer said he doesn’t feel comfortable with Monday’s early stock market rally after Friday’s Omicron-powered plunge, as selling may resume in the face of future negative news about a highly mutated Covid variant. can.
The Dow Jones Industrial Average — which jumped nearly 400 points, or more than 1%, shortly after Wall Street opened — gave up some of those gains. However, the S&P 500 and Nasdaq hung on to gains for most of their opening session, gaining 1% and nearly 1.5%, respectively. All three stock benchmarks sank more than 2% on Friday and ended lower last week.
Cramer said on “Squawk on the Street” ahead of Monday’s open, that he’s betting on the science, including promising future improved COVID vaccines and new oral treatments, to reduce the effects of Omicron. .
“I’m coming back sanguine. Not today. Because you turn the market up and the same people buy today, if they see someone who’s landed in America” and there’s the Omicron version, “they’ll say, ‘ I got to sell,” the “Mad Money” host said. “We have to protect ourselves from foolish sellers.”
So far no cases of Omicron have been found in the US. But infections have been found in South Africa, where the variant was originally discovered, as well as in the UK, Israel, Belgium, the Netherlands, Germany, Italy, Australia and Hong Kong.
Moderna CEO Stephen Bansell told CNBC he believes Omicron is present in most countries. “I believe that countries that have direct flights from South Africa in the last seven to 10 days already have cases in their country that they are not aware of.”
Bansell and Pfizer CEO Albert Boerla said in separate “Squawk Box” interviews Monday that their companies are working on Omron versions of their vaccines with hopes of rolling them out next year.
Borla said he expects Pfizer’s COVID treatment pill to be effective against the Omicron variant. He said the company now expects to build 80 million courses of the pill, exceeding its original 50 million course creation goal.
Merck is also working on a covid pill.
“You listen to Baurla and Bansal … and you come back and say, ‘Look these people are the people you have to trust. They know the science,” Cramer said. “It could mean that these guys solve it” and then if investors sell, “you have to buy back a lot.”