On CNBC’s Mad Money, Cramer talked about sector rotation, or when investors move from preferring one group of stocks to another. The stock that had been winning up until Wednesday were defensive stocks like consumer packaged goods, characterized by Procter & Gamble and Kimberly Clark. Biotechs, which are not buffered by economic headwinds to the same degree as other stocks, were also favorite buys. These sectors were bought because of fears of a global slowdown, given the weakness in Europe and China, even as economic data in America is strong.
However, the rotation has gone into industrials, and if the jobs number Friday is positive, Boeing, Honeywell and United Technologies are likely to be strong. Even as social media stocks have been hit, “industrial technology” plays like Micron, Skyworks, Intel, Cisco is what big funds may be interested in buying from now until the end of the year.