Skip to content
Cramer reluctant to buy market rebound, says ‘dumb sellers’ could hit stocks

Jim Cramer on CNBC’s Halftime Report.

Scott Mlyn | CNBC

CNBC’s Jim Cramer said he was uncomfortable buying into Monday’s first stock market rebound after Friday’s omicron plunge as selling could pick up in the event of future negative news on the market. highly mutated variant of Covid.

The Dow Jones Industrial Average – which had risen nearly 400 points, or more than 1%, shortly after the Wall Street opened – gave up some of those gains. However, the S&P 500 and the Nasdaq held onto most of their early gains, advancing around 1% and nearly 1.5% respectively. All three stock indexes fell more than 2% on Friday and ended lower last week.

Cramer said on “Squawk on the Street,” ahead of Monday’s opening, that he was betting on the science, including future reformulated Covid vaccines and the promise of new oral treatments, to mitigate the effects of omicron.

“I come back with optimism. Not today. Because you’re driving the market up and the same people are buying today, if they see someone who has landed” in the United States and has the omicron variant, “They’ll say, ‘I have to sell,'” said the host of “Mad Money.” “We have to guard against silly sellers.”

No case of omicron has yet been found in the United States. But infections have been found in South Africa, where the variant was originally found, as well as in the UK, Israel, Belgium, the Netherlands, Germany, Italy, Australia and in Hong Kong.

Moderna CEO Stéphane Bancel told CNBC he believes omicron has a presence in most countries. “I think most of the countries that have had direct flights from South Africa in the last seven to 10 days already have cases in their country that they may not be aware of.”

Bancel and Pfizer CEO Albert Bourla said in separate “Squawk Box” talks Monday that their companies were working on omicron versions of their vaccines with hopes of releasing them next year.

Bourla said he expects Pfizer’s Covid treatment pill to be effective against the omicron variant. He added that the company now plans to manufacture 80 million courses of the pill, an increase from its original manufacturing target of 50 million courses.

Merck is also working on a Covid pill.

“You listen to Bourla and Bancel… and you come back and say, ‘Look, these guys are the people you have to rely on. “They know the science,” Cramer said. “What that can mean is that these people solve it” and then, if the investors sell, “you have to buy back a lot more.”

cnbc Business

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.