Build a cash position for the next stock sale

CNBC’s Jim Cramer said on Friday that the Labor Department’s employment report was satisfying the markets, at least for the interim.

The U.S. economy created 379,000 jobs last month and the unemployment rate edged down as stocks managed to rebound from their day’s lows and break a tough three-day trading spell to end the week on a positive note.

Economists were forecasting labor market growth of 210,000 in February.

“A strong job count, but not too many, was exactly what this crazy market needed today, even though it took Wall Street half a day to figure it out,” Cramer said after the close. of “Mad Money”.

The major stock indexes all rose nearly 2% at the close after trading in the red during the morning. The Dow Jones Industrial Average gained 572 points, or 1.85%, to close at 31,496.30, ending up 1.82% after a volatile week. The S&P 500 rose 1.95% on Friday to 3,841.94, also ending the week in positive territory.

After closing in the red on Thursday, the Nasdaq Composite rebounded 1.55% to 12,920.15 on Friday. The high-tech index ended the week down 2.06% as growth stocks sold off.

As the United States continues its recovery from last year’s coronavirus-induced business lockdowns and restrictions, the February Labor Report likely did not do enough to push the Federal Reserve to raise rates. interest in order to reduce inflation as the economy grows, Cramer said.

“It was a hidden-Goldilocks report: A lot more people are being hired, thanks to the vaccine rollout and reopening, but not so much that the Fed will feel pressured to raise interest rates, and some are really left behind. for account “. he said.

Wall Street is waiting to see if the uptrend will continue or if the downtrend in stocks will resume. The bond market is still under control, however, as investors continue to shift from high growth stocks to value and cyclical ones until the rise in Treasuries yields stabilizes, Cramer added.

Longer-term treasury bills are an indicator of lending rates. Higher rates make cyclical stocks more attractive, leading investors to reduce their appetite for riskier assets.

“I bet bond bullies will be back, so brace yourself by using rallies like this to lighten up, like we did for my charitable trust at the end of the day, and definitely lighten up the dreamers’ actions. top flight. and PSPCs, “he said.” That way you will have money to deploy for real businesses the next time we get hammered like we did yesterday afternoon. . “

Cramer has given his game plan for the coming week. The earnings per share projections are based on FactSet estimates:

Point correction

Dick’s Sporting Goods

Campbell Soup

JD.com