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Jim Cramer Says Sell Bank Stocks on Stalled Stimulus Talks

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Stocks were mixed in intraday trading Monday after President Donald Trump signed four executive orders to extend unemployment benefits for Americans who lost their jobs during the coronavirus pandemic.

Trump issued executive orders, which included continued payments of up to $400 a week of supplemental federal unemployment benefits and a payroll tax deferral, right as Democrats and Republicans in Congress failed to bridge significant gaps in their stimulus negotiations and as the U.S. topped five million cases of coronavirus over the weekend.

Treasury Secretary Steven Mnuchin told CNBC on Monday that the Trump administration was open to resuming coronavirus aid talks with Democratic leaders and would offer more aid money to try to reach a compromise.

House Speaker Nancy Pelosi said Sunday it was essential a deal be reached between Democrats and the White House.

"Right now, we need to come to agreement," Pelosi said. "We could talk about how long our provisions would be in effect, so we can take things down - instead of the end of September of next year, a shorter period of time - and we'll revisit all of it next year anyway."

Pelosi dismissed Trump's executive orders as "illusions."

And then there’s the U.S.-China relations.

China’s Foreign Ministry announced it would sanction 11 U.S. citizens, which includes Senators Marco Rubio and Ted Cruz, as retaliation for the U.S. move Friday to sanction Chinese and Hong Kong officials for their roles in limiting political freedoms in the city. The sanctions don't include any members of the Trump administration.

What has Jim Cramer most concerned? Bank stocks are headed higher despite higher potential for bad loans amid Trump's moratorium on evictions. Cramer's advice for the sector? Start selling. 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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