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TheStreet.com TV Recap: Fed Cut Chopped

TheStreet.com Staff

Friday's stronger-than-expected unemployment report will delay a Fed cut and affect the market, Jim Cramer said on his TheStreet.com TV video, "Fed Cut off the Table," Friday.

Cramer was disappointed with the unemployment number; he had hoped for an in-line or slightly weaker number.

"We need to be able to keep the earnings thesis story, meaning that business is still good because employment is still strong, but not lose the Fed," Cramer said. "And this is a number that just puts off the inevitable Fed cut."

He said that he had wanted a "top-down" number that would set the tone for decent earnings and a Fed cut, based on housing and autos data.

"Instead, we got a number that takes the Fed cut off the table but doesn't give us good earnings," Cramer said. "Not exactly what we needed."

Cramer said this Fed cut would cut out the financials, which had been acting pretty well. He mentioned several specific stories in the financials that have been negative. He emphasized Bank of America's (BAC Quote) earlier pledge that the company would do no more acquisitions despite recent buzz sparked by Merrill Lynch Analyst Edward Najarian that it might be doing a deal with Barclays (BCS Quote).

"Now maybe we know why [Bank of America's] CFO left," Cramer said. "There couldn't be anything more certain than the fact that they're going to do the Barclays [acquisition] or Merrill wouldn't stick its neck out."

On the tech side, he mentioned Xilinx (XLNX Quote), National Semiconductor (NSM Quote), Oracle (ORCL Quote) and SAP (SAP Quote) as all performing poorly.

Despite that, "I still think tech is the place to go because you have a data point," Cramer said, adding that he believes it will be a "gadget Christmas."

Technology as a whole is still not necessarily right, Cramer said, although he still called it the "go-to group" right now. He said he is monitoring Research In Motion (RIMM Quote) now.