NEW YORK (TheStreet) -- This year has started off a little rockier than many investors anticipated, TheStreet's Jim Cramer said.
In the fourth quarter of 2013, industrials powered higher while pharmaceutical stocks and consumer product companies, such as Clorox (CLX) and Kimberly-Clark (KMB), did "absolutely nothing," Cramer said.
He said investors piled into select names such as Cummins (CMI), Caterpillar (CAT), Ingersoll-Rand (IR), Dover (DOV) and Boeing (BA). Cummins and Caterpillar are holdings in Cramer's charitable trust, Action Alerts PLUS.
Why have investors been flocking to these names and why have these companies been doing so well?
While researching his new book, Get Rich Carefully, Cramer said he found that as employment continued to improve, so did these stocks. So employment is one of the main drivers for these stocks.
Cramer added that Friday's nonfarm payrolls report should be very good and extend the improving employment trend. He concluded that investors should favor industrials heading into earnings season.
-- Written by Bret Kenwell in Petoskey, Mich.