CNBC’s Jim Kramer said Friday that the recent low performance in non-tech stocks gives investors the opportunity to buy companies that do well when Americans spend their money.
“What an opportunity to buy things that get thrown right and left,” Kramer said in Squawk on the Street, as Dow futures pointed more than 200 points down as Austria announced a fourth national lockdown starting Monday. “I think traveling is good. I think retail is good. “
“We are oversold. The Dow has been falling over time. Technology can’t always lead us, ”Kramer said shortly before opening technical stocks first cut losses on the S&P 500 and 30 shares. … The Nasdaq inherited modest profits from the premarket. Later in the session, the fall in the Dow Jones gained momentum.
Fears of a rise in the number of Covid cases in Europe will not slow growth in the US economy, Kramer said. “I think you’ll pounce on this. Maybe we’ll get more bad news in Europe this weekend, so you pounce on it today and then next week. “
The Mad Money host said he loves travel and retail. “The American consumer is incredibly strong. Anything to do with the American consumer — whether it’s traveling or spending at a mall — is a fantastic opportunity. ”
Airline stocks were hit by concerns over the coronavirus in Europe, with United leading the sector with a fall of about 4% on Friday. Cruise and hotel stocks were also weaker.
Walmart and Target rebounded moderately on Friday after falling earlier this week. Retailers’ strong quarterly results were clouded by concerns about profit margins, as they mostly covered higher costs associated with supply chain disruptions and labor shortages, rather than passing them on to their customers.