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Jim Cramer on What the Weak U.S. GDP Means for Industrials Like GE and Honeywell

TheStreet’s Action Alerts PLUS Portfolio Manager Jim Cramer believes Friday’s weaker-than-expected fourth quarter GDP report could be balanced by the strong Chicago PMI report.
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TheStreet’s Action Alerts PLUS Portfolio Manager Jim Cramer believes Friday’s weaker-than-expected fourth quarter GDP report will be balanced by a strong Chicago PMI report. ‘The gross domestic product was incredible weak and you ask, what is the Federal Reserve doing?’ Cramer pondered. ‘Then the Purchasing Managers’ Index form Chicago comes out and was really gigantic.’ According to Cramer, if you think the economy is strong, you can buy Honeywell International (HON) and General Electric (GE) or others in the industrials sector. But if you think the economy is weak, Cramer said you can buy in the health care sector. Cramer said the disappointing GDP will trump the strong PMI figures and people are going to rotate towards the industrials and think that the Fed may be on hold for a rate hike at its next meeting in March.

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