Tags: jim cramer | jobs | virus | reopening

Jim Cramer: Jobs Report Doesn't Make Him 'Feel Confident'

By    |   Friday, 07 August 2020 12:55 PM

Investment guru Jim Cramer admitted that remains worried about the U.S. economic recovery from the coronavirus even after the nearly 1.8 million jobs added in July’s employment report.

“I don’t see anything here that makes me feel confident,” Cramer said on CNBC's “Squawk Box.”

Cramer spoke just after the U.S. government said employment growth slowed considerably in July amid a resurgence in new COVID-19 infections, offering the clearest evidence yet that the economy's recovery from the recession caused by the pandemic was faltering.

The Labor Department's closely watched employment report on Friday piles pressure on the White House and Congress to reach an agreement on another aid package. Talks have been dragging over differences on major issues including the size of a government benefit for tens of millions of unemployed workers. A $600 weekly unemployment benefit supplement expired last Friday, while thousands of businesses have burned through loans offered by the government to help with wages.

Meanwhile, the “Mad Money” host said he worried about the job gains in food services and bars, as well as retail, CNBC explained.

“Drinking places are all being shut. That is just a huge part of the equation,” said Cramer. “They had the nonessential [retailers] come back. Well, how are those guys doing? Horribly. I suspect that we’ll see big layoffs there,” he predicted.

“Unless we get [case] numbers down, and I think we can, the reopening is becoming less relevant because there are a lot of places that have had to close, particularly the bars,” he said.

The virus continues to spike around the nation as the death toll steadily climbs.

“I’ve been completely focused on the idea that you should open up America with masks and with social distancing. But these numbers show you that if we close it, if we do have too many hot spots, we’re right back down,” Cramer said.

“Anything good could be erased.”

However, a former colleague of Cramer is much more optimistic.

White House economic adviser Larry Kudlow said that Labor Department reports that the American economy gained 1.8 million jobs last month marked a "very important, very positive number" and shows that single-digit unemployment rates will return by the November election.

"Bear in mind that this was in July, the week of July 12-18," Kudlow said on Fox Business Network's "Varney & Co." "That was smack in the middle of the spiking hot spots in the southwest and a few other places,"

But as the job growth came among partial shutdowns, and that's "a great sign of strength," Kudlow said.

"Getting unemployment down to 10.2% puts lie to the idea we will have double-digit unemployment in the fall around election time," said Kudlow. "You are going to see single-digit unemployment rates. We may not get back, we are not going to get back to where we were at the peak in February, I grant you that, but the idea we are going to get down to, you know, below 10%, 9%, 8%, I don't want to go too far but that's a big change." the veteran financial guru and former Ronald Reagan adviser

The recovery is "self-sustaining," said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

"What's going on in the economy, car sales are booming, retail spending overall is booming, said Kudlow," but companies will have to produce inventories to restock the shelves all across America and that is a huge boost to the economy in the third and fourth quarters."

© 2021 Newsmax Finance. All rights reserved.

Investment guru Jim Cramer admitted that remains worried about the U.S. economic recovery from the coronavirus even after the nearly 1.8 million jobs added in July’s employment report.
jim cramer, jobs, virus, reopening
Friday, 07 August 2020 12:55 PM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved