CNBC’s Jim Cramer said Friday that recent market weakness in non-tech stocks gives investors the opportunity to buy names that do well when Americans are spending their money.
“What an opportunity to buy things that are thrown away left and right,” Cramer said on “Squawk on the Street,” as Dow Futures pointed to a drop of over 200 points when Austria announced a fourth national lockdown from Monday. “I think travel is good. I think retail is great.”
“We are oversold. The Dow has long been in the red. Technology can’t always guide us, ”Cramer said just before tech stocks’ strength at opening initially reduced losses in the S&P 500 and the 30-stock average. The Nasdaq carried over its modest profits from the pre-listing. Later in the session, the drop of the Dow gained steam.
Concerns about rising Covid cases in Europe will not slow the US economy, Cramer said. “I think you’re going for it. We might get more bad news in Europe over the weekend, so go for it today and then next week.”
The Mad Money host said he likes travel and retail stocks. “The American consumer is amazingly strong. Anything to do with the American consumer – be it traveling or spending at the mall – is just a fantastic opportunity. “
Airline stocks have come under pressure on European Covid worries, with United leading the sector, down about 4% on Friday. Cruise and hotel stocks were also weaker.
Walmart and Target stocks rebounded modestly on Friday after being hit earlier this week. Retailers’ strong quarterly results were overshadowed by margin concerns as they largely absorbed the higher costs associated with supply chain disruptions and labor shortages rather than passing them on to their customers.