Keep an eye on banks, financial data, says Jim Cramer
- Economic data in the coming weeks could have a big impact on banking and technology stocks, Jim Cramer said.
- After a tough day for names like Silvergate, there is still the possibility of hope on the horizon.
Foaming markets and banking turmoil cast a pall over the broader markets, but investors should keep an eye on economic data and the Fed’s continued rate hikes, CNBC’s Jim Cramer said Thursday.
Sharp declines in Silvergate Bank and SVB Financial shares came as the broader banking sector underwent a major collapse, Cramer said. “All of them. Big, small,” Cramer said. “Didn’t matter.”
Cramer pinned the collapse on a win by the Fed and a general flight from three different areas: commercial real estate, venture decline and crypto.
A flurry of downgrades caused concern for a couple of big commercial real estate names, Cramer said, including SL Green and Vornado Realty Trust.
Add to that gumbo the cooled venture capital markets, and it’s no surprise, Cramer said, that SVB Financial, which completed a major capital raising this week, is taking a bit of a hit as a potentially risky bet.
Crypto’s well-documented collapse means Silvergate’s action, while overly punitive, is not surprising, Cramer said.
But there is hope on the horizon with two sets of economic data coming out in the coming days: the February employment numbers and the non-farm payrolls report. Cooling and weaker numbers for those reports, respectively, could be a boon for the economy and tech stocks, Cramer said.
“Eventually, even the bank shares will be worth buying.”