Jim Cramer on Coronavirus: What It Means for Markets, Federal Reserve and Microsoft

Jim Cramer's weighing in on the markets, the Federal Reserve and Microsoft.
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Jim Cramer has some thoughts on the markets, the Federal Reserve and Microsoft  (MSFT) - Get Report as coronavirus fears shake Wall Street.  

Let's Talk Markets

Yesterday saw the markets swing like a pendulum in later trading during the day. The Dow closed down a little over 100 points. The Nasdaq closed down 0.6% and the S&P 500 closed down 0.8%.

Stock futures declined sharply Thursday, putting Wall Street on pace for its worst week since the global financial crisis in 2008, as coronavirus infections accelerated and health officials confirmed that a California man contracted the disease despite having no travel links or contacts with those afflicted by the virus.

And Then There's Microsoft

The company was the latest tech company to signal that it will miss financial targets because of the coronavirus outbreak.

The company warned investors that it will fall short of previously issued fiscal third-quarter sales guidance of between $10.75 billion and $11.15 billion for its "more personal computing" segment, which includes Windows OEM and Surface. Microsoft said it still expects intelligent cloud revenue of $11.85 to $12.05 billion in the three-month period.

"Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call," the company said. "As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated.

What's on Cramer's Mind?

Cramer wrote about the travel and airline stocks in his Real Money column Thursday morning. 

"There's at risk, and then there's really at risk. Even after this market has been clubbed for five days, we find situations where things could get appreciably worse, and things could only get worse," wrote Cramer. "I think that's where the focus has to be -- loss mitigation -- because there are too many companies that could see earnings hammered and stay hammered, while others will see them hammered once or twice or maybe three times only until their stocks represent too many estimate cuts and that's when they will bottom."

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