In an tweet about an hour before the close of President Donald Trump, the stock average came late in Tuesday’s session, surprisingly closing negotiations on another spending measure until next month’s election.
Following the sell-off, Cramer said that there are parts of the market that would not be phased out by the possible lack of additional support.
The “Mad Money” host said, “The president’s aides are conscious that many sectors of the economy are red-hot right now and will remain hot.” “Also, don’t forget that the parts of the economy that need help are small businesses, and they don’t trade publicly, so their weakness rarely filters the stock market.”
With the US economy still recovering from the epidemic-induced recession, another emergency spending bill is seen as a measure to stop the economy in even deeper crisis.
Treasury Secretary Steven Menuchin and House Speaker Nancy Pelosi have discussed for days in hopes of approaching a deal on a plan that would send Americans another round of checks directly and provide a challenge for small and medium-sized businesses. By the ongoing coronavirus epidemic.
Cramer suggested that investors do not “overthrow” the situation, noting that the economy is divided between small and medium-sized businesses that are struggling and large publicly traded companies that benefit from the environment Are happening
“The part that’s working is mostly publicly traded companies. We have a V-shaped recovery … in housing, a U-shaped recovery in autos, and some of the biggest retailers ever. Not even experienced the recession – think Walmart, Amazon, Costco, Target, Home Depot and Lowe, ”said Kramer.
“All these work, whatever it may be in Washington,” he said.
The Dow Jones was down about 376 points to close at 27,772.76 with a loss of 1.34%. The S&P 500 and Nasdaq Composite fell 1.40% to 3,360.95 and 1.57% to 11,154.60 points at the end of the session.
“Some would argue that the lack of stimulus means we’re headed for a recession. I don’t think that’s true until we get some sort of bailout by the end of the year,” Crummer said. “But if you think we are headed for a real recession [your buy list] Is straightforward. ”
Cramer pointed to defensive stocks such as PepsiCo, Conagra Brands and Campbell Soup, a stock which he said is “too cheap to ignore.” Bristol-Myers Squibb, Johnson & Johnson and Regeneron are three recession-proof drug stock plays, he said.
The US economy needs another stimulus package, and a wide range of corporations will be forced to cut their forecasts without one, Cramer warned.
He said the technology sector would be a bright spot, and his shares were worth buying in weakness.
“Without [a stimulus package]The numbers have to come down to a whole host of companies, Cramer said, but not technology, because most technology supports the enterprise, not the consumer. You can see those sinks a little bit [lower] And then got up into some weakness. “
Disclosure: Kramer’s charitable trust owns shares of Amazon, PepsiCo, Johnson & Johnson, Bristol-Myers Squibb and Costco.