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Jim Cramer: Jobless Claims Don't Matter As Much as Coronavirus Cases

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The Trump Administration has reportedly asked states to hold back jobless claims.

Jobless claims across the United States are soaring as the coronavirus pandemic prompts widespread shutdowns of commerce and industry, and layoffs with it, but it’s going to get significantly worse.

Indeed, based on recent anecdotes from press reports as well as company announcements, Goldman Sachs economist David Choi said he sees initial claims for the week ending March 21 jumping to a seasonally adjusted 2.25 million.

In a research note published late on Thursday, Choi said that even the most conservative assumption would be claims reaching more than 1 million, which would top the record high of 695,000 set in 1982.

Watch the full video above for more. 

Video Transcript:

Katherine Ross:
Yeah. And speaking of the working person, this administration is reportedly asking states to maybe hold off on releasing the jobless claims next week, and Goldman Sachs sees these jobless claims as possibly being in the millions. How important is it at this point to get those jobless claims and see just how bad this impact is for investors?

Jim Cramer:
Well, I mean, I think that the jobless claims won't mean as much as the numbers I expect to see across the country for testing. You know, I live in Brooklyn, which is for some reason, the most number of people that have the COVID virus in the country is the Brooklyn area. And that's obviously not true. It just happens to be the area that had the most tests. So I think the combination of looking at the numbers and... I want to criticize the administration for a lot, but you let them patch them. I mean, the numbers are going to be horrendous whether they come out today or they come out Thursday. I'd actually like people to know.

Jim Cramer:
So you have the jobless claims that are going to be unbelievable and you have the huge spike in the number of people who were infected. We won't have any numbers about how many people have already been infected and are better, which is the real number that we need. Against that, we're incredibly oversold and a lot of people sold into that just abyss two days ago that was just incredible. And that abyss is what people now are looking to pounce on if we get it.

Jim Cramer:
If you take a look at when we did our call, and I still think people should go back to listen to that call because it was in real time, Starbucks was at 50 and we were saying buy, buy, buy. It was at 63 and Disney was 80s [inaudible 00:06:23] now 92, that was this moment in time where there literally was no hope whatsoever. Now have we gotten up since then? No. But what's occurred is that we realized if we get into the no hope whatsoever situation, we this time want to be the buyer of GE3 and we this time want to be the buyer of Starbucks. I mean, Clorox is down eight. I said Clorox was too high. We are on the hunt now for stocks when they hit them like they did the other day because we are oversold. But like the first TARP vote, where a lot of people felt that tarp was going to solve our problems, we had another big leg down. And ultimately, I think that we're going to get that, too.

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