Tags: Cramer | stocks | jobs | payrolls

Jim Cramer Is Worried About Stocks in Light of Weak Jobs Data

By Dan Weil   |   Wednesday, 12 Feb 2014 07:34 AM

Jim Cramer, host of CNBC's "Mad Money," fears that weak employment statistics could hurt the stock market.

"Employment growth is the most important thing for profits, and the profits have to keep going up" for stocks to keep rising, he told Yahoo.

Job growth has been disappointing for the past two months, with payrolls gaining only 75,000 in December and 113,000 in January.

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"I'm very concerned right now," Cramer said. "I am not going to buy into [the reason] that's it's all weather." Some economists say the wicked winter weather may have depressed the payroll numbers.

The stagnant labor market should lead retail and auto stocks to perform "poorly," he noted.
"I'm limited in the themes I like, because there is a down-tick in the economy, and I would like to see something that tells me it's temporary."

So what does Cramer favor in the stock market? "Biotech, organic foods and, if China comes back and stabilization in Europe continues, industrials as well," he asserted.

Cramer mentioned American Airlines as a specific name. "It took out one of its biggest competitors," he said, referring to its purchase of U.S. Airways.

To be sure, the Standard & Poor's 500 Index has rallied 2.6 percent since the January jobs data was released Friday.

"If earnings come in as they're expected to come in, then everything's fine," Richard Bernstein, head of Richard Bernstein Advisors, a money-management firm, told The Wall Street Journal. "So far they've actually been quite good."

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