- After China’s weak economic data, Jim Cramer told investors which stocks to keep an eye on.
- He named companies from the housing, aerospace, infrastructure, technology and healthcare sectors.
CNBC’s Jim Cramer gave investors his top sectors and stocks to watch after weaker-than-expected economic data out of China on Tuesday.
The Dow Jones Industrial Average slipped more than 300 points as concerns mounted over the Chinese economy. The country’s July economic data fell well short of expectations, and the National Bureau of Statistics report did not include youth unemployment figures.
Cramer advised investors to consider infrastructure stocks as the US government is investing heavily in the sector, shutting down equipment maker Caterpillar and steelmaker Nucor. He also highlighted aerospace companies Boeing and Honeywell as potential beneficiaries of the aircraft shortages and ongoing tourism boom. Cramer also recommended pharmaceutical stocks like Eli Lilly, homebuilders Lennar and DR Horton, and tech giants like Nvidia.
“You can use your money sparingly here and then buy more as we delve deeper into these issues, because these types of situations tend to last longer than a day or two and the issues last forever,” Cramer said. “So be prepared for pain. Be aware that the pain is a buying opportunity as long as you know what to buy and can buy slowly and incrementally on the way down.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares in Caterpillar, Honeywell, Nvidia and Eli Lilly.
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