Cramer says tech shares might backside someday after Nasdaq’s nosedive
CNBC’s Jim Cramer said tech stocks could bottom out Thursday, a day after the Nasdaq fell 3.3% on rising bond yields and concerns over tightening in the Federal Reserve.
The Mad Money host said he was glad there were so many negatives out there because as a stock picker for his charitable trust, there are many names on offer.
“I absolutely love that the stocks all look terrible. I mean, that’s what you want,” said Cramer, as someone who wants to buy low and sell high. “Some of these stocks are being cut in half. I see stocks being cut in half where they make money.” He added and reiterated his 2022 investment theme: “Those who don’t make money still don’t interest me.”
Cramer’s remarks came as the Nasdaq futures moved down Thursday while the Dow futures climbed higher. The Nasdaq’s slide on Wednesday was its biggest one-day loss since February 2021. The Dow Jones Industrial Average and S&P 500 fell 1% and nearly 2% respectively on Wednesday, after closing at record highs earlier this week.
Cramer said he was encouraged by the Nasdaq’s slump on Thursday as “sellers eventually wear themselves out.”
“We have what it takes to be what could be a low point,” he said. “I think you should take a deep look at the techs today.”
Cramer said, “Of course the wild card is tomorrow,” when the government released its December employment report. “Tomorrow people will worry about a number that is too hot. But when everyone is worried about a number that is too hot, it becomes less of a problem.”
According to the Dow Jones, the number of non-farm employees is expected to increase by 422,000 jobs, with the unemployment rate dropping to 4.1%. ADP’s view of December hiring US companies more than doubled estimates. However, the data from ADP wasn’t the best to predict the government’s monthly report during the pandemic.
Cramer made his comments about the market in both Squawk Box and later Squawk on the Street before Wall Street opened on Thursday.
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