Flat-panel liquid-crystal-display monitors are a marker that can give people a sense of the market's health, Jim Cramer said on his "RealMoney" radio show Friday. 3M ( MMM) recently announced that because of an overestimated demand for LCD TVs because of heightened viewing anticipation of the World Cup soccer tournament, the company's results would not reach expectations. When this bad news came out, other stocks in the sector were impacted immediately. The news also means Best Buy ( BBY) and Circuit City ( CC) might get hurt as well, since they sell these TVs, Cramer said. In addition, Advanced Micro Devices ( AMD) also fell because of a sales warning, he said. Meanwhile, the employment number, which was announced this morning, said that a little more than 100,000 jobs were created last month, a smaller number than what was expected. People believe it's because construction for houses is down, Cramer said, adding that people are concerned with one thing: whether interest rates will continue to go up or not. There is a lesson here: If the Fed pauses, bulls will come, he said.
Tinkering with Tech
When AMD warned late Thursday with a soft sales forecast, the Nasdaq was clobbered off the news, Cramer said. However, AMD, which has lately been the leader in notebook and desktop chip sales, is barely down off its own news, he said. The company is cutting the cost of its chip, which means personal computer costs will go down, which means sales will continue to be good, whereas the Nasdaq is the worst-performing index of all the indices, Cramer said, adding that short-selling is what's driving the Nasdaq down. There are stocks in the Nasdaq that have been knocked down, but have nothing to do with AMD -- and they're tremendous opportunities. Cramer said two of these stocks are Citrix ( CTXS)and Network Appliance ( NTAP), both of which he owns for his charitable trust, Action Alerts PLUS .