Jim Cramer on Jobless Claims and Throwing Money at the Problem
Where are markets and the economy headed after the latest round of weekly jobless claims?
For the week that ended on April 11, a further 5.245 million Americans filed for unemployment benefits. The number exceeded initial estimates of five million and marked an official wipe-out of all the jobs created since the financial crisis.
The total jobless claims for the last four weeks has now exceeded 20 million. The March jobs report saw the economy shed 701,000 jobs.
The social distancing guidelines invoked to stop the spread of the coronavirus have created a virtual halt of the economy, creating job losses across all sectors, though hospitality and retail are among the most hurt.
To date, there are over 2 million cases of coronavirus worldwide with nearly 640,000 cases in the U.S., per data from Johns Hopkins University. 138,487 have died of the virus in the U.S.
While markets initially moved higher following the report, following Thursday’s opening bell, all three major indices shed gains and moved lower. At 10 a.m. ET, the Dow Jones Industrial Average was down 268.01 points, the Nasdaq was up 20.18 and the S&P 500 was down 16.16.
So where do we head from here? TheStreet founder and ActionAlertsPLUS portfolio manager Jim Cramer said it all depends on the federal government's ability to apply financial relief. "If there's more money thrown at the problem, then buy stocks," Cramer said.
Catch Cramer's full take in the video above.