Keep an eye on banks, economic data, says Jim Cramer

  • Economic data over the coming weeks could have a major impact on banking and technology stocks, said Jim Cramer.
  • After a rough day for names like Silvergate, there is still hope on the horizon.

Foamy markets and banking turmoil are casting a pale on broader markets, but investors should keep an eye on economic data and the Fed’s continued rate hikes, CNBC’s Jim Cramer said Thursday.

Sharp declines in Silvergate Bank and SVB Financial stocks came as the broader banking sector underwent a major meltdown, Cramer said. ‘All. Big, small,’ said Cramer. “Does not matter.”

Cramer pinned the collapse on a Fed victory and a general flight from three distinct spaces: commercial real estate, corporate slowdown, and crypto.

A spate of downgrades caused concern for a number of big commercial real estate names, Cramer said, including SL Green and Vornado Realty Trust.

Add to that the chilled venture capital markets and it’s no surprise, Cramer said, that SVB Financial, which staged a large capital raise this week, is taking a bit of a hit as a potentially risky bet.

Crypto’s well-documented collapse means that Silvergate’s action, while overly punitive, is not surprising, Cramer said.

But there is hope on the horizon with two sets of economic data due in the coming days: the February employment figure and the nonfarm salary report. Cooling and weaker numbers for those reports, respectively, could be a boon for financials and technology stocks, Cramer said.

“Eventually, even the bank stocks will be worth buying.”

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