Clorox, Consumer Products Should Shine Amid Jobs Slowdown, Cramer Says

Manager of large portfolios will likely be eyeing consumer goods following the April jobs report, according TheStreet's founder Jim Cramer.

"I like [consumer products] because there's this whole baseline of big portfolio managers who say. 'Slowing growth in employment? Go buy Clorox (CLX) - Get Report ,'" Cramer said.

The federal government's April jobs report showed a slowdown in the number of jobs added - 160,000 as compared to Wall Street's predictions of about 203,000.

Cramer, though, thinks consumer goods products can rally around this growth slowdown, even while the retail and banking industries may suffer.

He said that this is the reason he selected Procter & Gamble (PG) - Get Report and Johnson & Johnson (JNJ) - Get Report for the "bullpen" (not actively held but being evaluated) in his Action Alerts Plus portfolio.

"There's an overall flow of funds out of the stock market when this happens," said Cramer, portfolio manager of Action Alerts Plus. "Internally, within the market, money will go to consumer goods, unless the dollar resumes its decline."

He added that a potential decline in the dollar's value is something for investors to watch.

"We're going to lose a lot of stocks, but if the dollar goes down, we'll gain a lot and people will get back [into the market]," Cramer said.

Clorox in particular has recently been acquisitive to build up its stable of brands. On Tuesday, the company announced the acquisition of Renew Life for $295 million in cash.

Renew Life sells full-body cleanses and probiotic products mostly at natural grocers such as Whole Foods (WFM) and Sprouts (SFM) - Get Report as well as supplement retailers like Vitamin Shoppe (VSI) - Get Report . Clorox said Renew Life generated sales of about $115 million last year and had gross profit margins generally in line with its existing portfolio.

Clorox, which has a market cap of $16.85 billion, was trading at $130.13 per share midday Friday, up nearly one percent from market's open.

PG, which has a market cap of $217.6 billion, was trading at $81.75 per share midday Friday, up 0.66% from market's open.

JNJ, which has a market cap of $310.1 billion, was trading at $112.42 per share midday Friday, down 0.4% from market's open.