Build a cash position for the next sale

Jim Cramer, OilGasJobz, said the Labor Department’s work report on Friday satisfied markets, at least for the time being.

The U.S. economy added 379,000 jobs last month and the unemployment rate rose, with stocks able to bounce from the lowest and make a difficult three-day trading period to end the week on a high note .

Economists have predicted that the labor market will grow by 210,000 in February.

” A strong but not too strong number of staff was exactly what this crazy market needed today, although it took half the day for Wall Street to figure it out, ” Cramer said afterward. Mad Money ‘.

The major stock index all swung almost 2% higher at the end of the day after trading in the red during the morning. The Dow Jones Industrial Average averaged 572 points, or 1.85%, to close at 31,496.30, rising 1.82% after a volatile week. The S&P 500 rose 1.95% on Friday to 3,841.94, which also ended the week in a positive area.

After closing in the red Thursday, the Nasdaq Composite jumped 1.55% to 12,920.15 on Friday. The technology-heavy index fell 2.06% this week as growth stocks sold.

As the U.S. continues its recovery from coronavirus-induced industry locks and restrictions, the February labor report probably did not do enough to push the Federal Reserve to raise interest rates to weaken inflation as the economy grows, Cramer said.

“It was a hidden Goldilocks report: Many more people are being hired thanks to the vaccine vaccination and the reopening, but not so much that the Fed will feel compelled to raise interest rates, and some are really being left behind,” he said. .

Wall Street is ready to see if the rising trend will continue or if the decline in equities resumes. However, the bond market is still in control as investors continue to turn from high-growth stocks to value and cyclical names until rising Treasury yields stabilize, Cramer added.

Long-term treasury is an overwhelming lending rate. Higher rates make cyclical stocks more attractive, leading investors to reduce their appetite for riskier assets.

“I bet the bullies will be back, so get ready by using rallies like this to lighten up, as we did for my charity trust at the end of the day, and definitely lighten up the high-flying dream supplies and the SPACs,” he said. he said. “That way, you have some cash to put in for the right companies the next time we get hammered like yesterday afternoon.”

Cramer gave his game plan for the week ahead. Earnings-per-share predictions are based on FactSet estimates:

Monday: Stitch Fix

Tuesday: Dick’s Sporting Goods

Wednesday: Campbell Soup, Oracle

Thursday: JD.com, Ulta Beauty

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