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NEW YORK (TheStreet) -- With tomorrow's labor report just around the corner, Jim Cramer told his "Mad Money" viewers Thursday they need to be ready for more market weakness. The threat of rising interest rates will most certainly mean declines for the markets, said Cramer, but that doesn't mean that all stocks will follow suit.
Cramer said the competition from rising interest rates will continue to hit the real estate investment trusts and the master limited partnerships hardest. That will be followed by other high-yielding stocks such as health care and consumer packaged goods, he continued. The bears always take the easy way out, choosing to short S&P 500 index funds. That will, in turn, take a toll on the market overall.
But does that mean everything deserves to go down? Cramer's motto is, "There's always a bull market somewhere," and that means tomorrow, too. He said the banks are the biggest beneficiary from rising interest rates as they'll make more on the lending they do. But most investors don't consider companies with large pension obligations, he noted, as companies including General Motors (GM), General Electric (GE) and Boeing (BA) will all see savings to their bottom lines with higher rates.
Payroll processors like Paychex (PAYX) also love rising rates because they make some of their revenue on the float, the money that's deposited by companies but not yet withdrawn by employees. Companies such as Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS , also make out with higher rates as Apple has a ton of cash on its books.
With all of these rising rate names, Cramer said the key will be to get in before the crowd.
A Closer Look at CONN
When a retailer posts blowout earnings in a generally weak retail market, it's sometimes worth taking a look, said Cramer, referring to the spectacular quarter posted by the Texas-based hard goods retailer Conn's (CONN - Get Report). Shares of Conn's soared 19% in today's trading after the company reported exceptionally strong numbers.