‘Togetherness kills’ — Cramer looks at stocks that will continue to suffer as social distancing remains

- Advertisement -
KEY POINTS
  • “Social distancing is going to be the answer why you have to sell certain stocks,” CNBC’s Jim Cramer said Tuesday.
  • “Assembly line productivity is going to be hurt so badly by honest social distancing,” he said.
  • “There’s a lot of upside in some companies, and a lot of downside in others,” Cramer said, citing tech companies as stocks that have supported the market.
- Advertisement -
- Advertisement -
- Advertisement -

Many companies are being hurt by social distancing safety rules due to the coronavirus and investors may want to reevaluate whether to own their stocks, CNBC’s Jim Cramer said Tuesday.

“Social distancing is going to be the answer why you have to sell certain stocks,” he said.

For companies that need to invest heavily to help ensure it’s safe for employees to come back to work, “you got this really bad chain of events that’s going to occur for a substantial part” of the S&P 500, Cramer said.

“Assembly line productivity is going to be hurt so badly by honest social distancing,” he added.

Cramer also questioned on “Squawk on the Street” what’s going to happen to the cruise industry. “The idea of Carnival is you get together. You do things together. It’s fun,” he added. “Togetherness kills. I mean, that’s what we think now.”

Cruise stocks such as Carnival have cratered during the coronavirus-driven economic halt.

In a securities filing published Tuesday, Norwegian Cruise Line said it has “substantial doubt” about its ability to continue as a “going concern,” warning it may need to seek bankruptcy protection if it cannot line up enough financing.

“There is no issue at Facebook about social distancing,” Cramer said.

The “Mad Money” host used Facebook as well as Microsoft and Apple as examples of companies that have weathered the pandemic because social distancing won’t kill their businesses.

“There’s a lot of upside in some companies, and a lot of downside in others,” he said.

While the broader-market S&P 500 has dropped 10% year to date, the tech-heavy Nasdaq has cut its 2020 losses to about 1%. The Dow Jones Industrial Average has lost about 15% this year. All three stock measures are up more than 30% from their coronavirus lows on March 23.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

French Open: Emma Raducanu, Rafael Nadal, Novak Djokovic & Iga Swiatek ready to start in Parison May 22, 2022 at 6:07 pm

Emma Raducanu says she is "learning to be effective" on clay as she makes the final preparations for her senior debut at the French...

Who will replace Boris Johnson?on July 15, 2022 at 7:19 am

Five Tory MPs remain in the contest to become the next party leader and prime minister - but who are they?Five Tory MPs remain...

The Latest in Cable vs. Internet Programming Fees

All of the major media outlets are calling for "Netflix taxes" - here is your chance to be different. Just in time for Netflix's...

Tyson Fury v Deontay Wilder III: Is the Gypsy King ready for trilogy fight after chaotic camp?on October 8, 2021 at 5:18 am

Tyson Fury takes on Deontay Wilder in their trilogy fight, but is the Gypsy King ready to face the Bronze Bomber after a chaotic...

Eurovision: Princess of Wales makes surprise appearanceon May 13, 2023 at 8:02 pm

She played an instrumental piece pre-recorded in Windsor Castle's Crimson Drawing Room earlier this month.Image source, Kensington Palace/PAThe Princess of Wales made a surprise...
Home of Science
Follow me