Cramer downplays Trump's coronavirus stoop, saying traders ought to create a purchase record
CNBC's Jim Cramer downplayed the stock market decline on Friday when President Donald Trump tested positive for the coronavirus, suggesting investors should consider buying on pullbacks.
"I'm not saying this has much to do with nothing," Cramer said on Squawk Box. "I say people should have a purchase list ready."
Stock futures were significantly lower on Friday morning as Wall Street digested news that Trump and First Lady Melania Trump tested positive for the coronavirus. The president wrote in a tweet early Friday morning: "We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!"
Stocks fell in early trading but reduced some of those afternoon losses in hopes of a business cycle deal.
After Cramer spoke, the stocks trimmed some of their early losses in afternoon trading in hopes of a stimulus deal.
The Trump's positive tests came hours after White House advisor Hope Hicks also tested positive for the coronavirus. Hicks had traveled to Cleveland on Air Trumps One with the Trumps for the first presidential debate on Tuesday evening.
Vice President Mike Pence and Second Lady Karen Pence have tested negative for the virus, the White House said on Friday morning.
Cramer wished the Trumps a speedy recovery and stressed that the environment was not "business as usual". But he added, "I think there will be a lot of stocks that will fall initially, like a Tesla – we had deliveries that were better than expected, by the way – and then they can bounce back."
"I think it can be like a Ford engine, where I think the numbers will get better and I would try to buy something like that," said the host of "Mad Money" also.
Cramer hopes the president's coronavirus infection will convince more Americans to wear masks to prevent the virus from spreading, which could have benefits for the US economy.
Cramer noted that Trump had largely avoided wearing masks during the pandemic and earlier this week accused his Democratic rival Joe Biden of how often he wears a mask.
Biden wished the Trumps all the best on Friday morning.
"Masks are the only hope we really have, especially indoors," said Cramer. "Maybe the idea that you're kind of 'not tough' [when you] wear a mask disappears."
"If you try to aggressively reopen the economy without masks and without more discipline on social distancing, it will fail," added Cramer. "I think this really is the ultimate way out of what happened when the president was infected with Covid."
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