- CNBC’s Jim Cramer said Friday that the recent market underperformance of non-tech stocks gives investors an opportunity to buy names off the beaten track.
- “The American consumer is surprisingly strong,” he said. “I think travel is good. I think retail is great.”
- Cramer said that concerns about rising Covid cases in Europe will not lead to a slowdown in the US economy.
CNBC’s Jim Cramer said Friday that the recent market performance of non-tech stocks gives investors an opportunity to buy names that do well when Americans spend their money.
“What a buying opportunity what’s being thrown left and right,” Cramer said on “Squawk on the Street,” as Dow futures pointed to a drop of more than 200 points as Austria posted a fourth start on Monday. National lockdown announced. “I think travel is good. I think retail is great.”
“We’re oversold. The Dow is down for a long time. Technology can’t always lead us,” said Cramer, shortly before the tech-stock’s strength at the open initially took a toll on the S&P 500 and 30-stock average . , The Nasdaq extended its modest gains from the premarket. The Dow’s decline took hold in the subsequent session.
Cramer said that rising Covid cases in Europe will not lead to a slowdown in the US economy. “I think you swoon over it. Maybe we’ll have more bad news in Europe over the weekend, so you toss something today and then next week.”
The “Mad Money” host said he loves travel and retail stocks. “The American consumer is surprisingly strong. Anything related to the American consumer — whether it’s travel, whether it’s spending at the mall — is just a great opportunity.”
Airline shares were being slammed on European Covid concerns, with United leading the sector, down nearly 4% on Friday. Cruise and hotel stocks were also weak.
Shares of Walmart and Target were trading marginally higher on Friday after taking a hit earlier this week. The retailers’ strong quarterly results were fueled by concerns about margins as they largely absorbed supply chain disruptions and higher costs related to labor shortages rather than passing them along to their customers.