Jim Cramer, of CNBC, said Tuesday that he believes investors should be optimistic about the US economic recovery in the months leading up to a widely available Covid-19 vaccine.
“I just don’t buy negativity here” on the stock market, Cramer told Squawk Box, pointing to the potential benefits of the $ 900 billion coronavirus stimulus package approved by Congress late Monday.
The aid bill, which came after months of deadlock on Capitol Hill, contains a direct payment of $ 600 for many Americans, a federal unemployment supplement of $ 300 a week and additional funds for small business loans. It also directs money to help distribute Covid-19 vaccines and to help test and track contacts. President Donald Trump has yet to sign it.
“Actually, I thought the $ 900 billion package was very well thought out. I know it’s considered slapdash. I don’t think so,” Cramer said, describing it as “the $ 900 billion bridge” for a vaccine. . “I am pessimistic only in the sense that there were so many things that went wrong before receiving the bill. I am optimistic in the future,” added the “Crazy Money” host.
Healthcare workers and residents of long-term care institutions are given priority in the initial batch of available doses of vaccine. To date, the Food and Drug Administration has granted emergency use permits for photos from Moderna, as well as Pfizer and its German partner BioNTech.
Johnson & Johnson, which has completed its third phase clinical trial, said it could apply for limited regulatory approval in February if its vaccine proves safe and effective.
The supply of available Covid-19 vaccines is expected to increase in the coming months, allowing a wider group of Americans to be eligible to receive the vaccines. Cramer said he believes the J&J vaccine could be crucial to increasing vaccine availability next year.
Cramer’s comments came at a time when Dow Jones Industrial Media futures was largely fixed. In morning trading, the Dow was down 150 points, or 0.5%, while the S&P 500 was also slightly negative. The technological Nasdaq was modestly smaller.
Stocks had a volatile session on Monday, while Wall Street is worried about a new strain of coronavirus circulating in the United Kingdom. However, some public health experts believe that existing Covid-19 vaccines still provide immunity against the emerging virus variant.
In addition to the incentive benefits, Cramer said the shares will continue to be helped by investors who are starting to put money on the market. “There’s a lot of new money coming in,” he said.