Cramer is sticking with shares regardless of the brand new Covid pressure within the UK, sees many doing properly
CNBC’s Jim Cramer said Monday that investors should not overreact to the new strain of Covid-19 in the UK, criticizing that country’s response to the pandemic and citing positive news about US companies as a cause for optimism.
“I’m not ready to give up this market because of a 70% figure in the UK when the UK has been particularly absent in the way it is being handled,” Cramer said on Squawk on the Street. “” “We can all take every single cue we want from the UK, or we can take our cue from some of the companies that are going to do quite well here.”
The US stock market opened lower on Monday after the UK identified a new strain of Covid-19 that is 70% more contagious than previous strains. Stocks in Europe fell sharply. The Dow was last down 300 points.
Several European countries have banned flights from the UK, although experts have said the recently approved vaccines from Pfizer and Moderna are likely to be effective against the new strain of the virus.
The “Mad Money” host pointed to the conclusion of a new stimulus deal in Congress, strong profits from Nike and the return of share buybacks for banks as positive catalysts for the market.
Cramer also mentioned Citi’s upgrade from Microsoft to buy from Neutral, saying tech stocks could perform well again in the event of a new round of economic restrictions. Microsoft’s shares fell 0.4% in early trading.
“You shouldn’t be throwing away all of the stocks. Look how these companies that do so well at lockdowns have done,” Cramer said.
The UK has confirmed more than 2 million cases of the virus during the pandemic, according to Johns Hopkins University. On a per capita basis, these are fewer infections than registered in the US, but more than in some other peer countries, including Germany and Canada.
UK Prime Minister Boris Johnson stepped up business and put restrictions in place for much of the country, including London, over the Christmas holidays to help slow the spread of the virus.