On Thursday, CNBC’s Jim Kramer advised investors not to sell US shares in response to increased coronavirus cases in European countries.
“If you follow what they do and sell our shares because of what’s happening in France right now, it’s going to be something you might regret,” Kramer told Squawk on the Street.
“We are importing their negativity. I don’t think this will necessarily continue,” he added, as US stock futures fell sharply in the preliminary market. Shortly after the opening of Wall Street on Thursday, the Dow Jones Industrial Average, S&P 500 and Nasdaq fell about 1
European stocks slipped on Thursday, with the Stoxx 600 falling more than 2% as global investors weighed increased restrictions on coronavirus in countries such as France, which declared a state of emergency for public health. On Thursday, the UK government imposed stricter restrictions on London’s coronavirus in a bid to curb the rapid spread of the disease.
Investors are also watching the negotiations to stimulate Covid-19 in the United States, which have been at a standstill for months. Finance Minister Stephen Mnuchin told CNBC on Thursday that it would be difficult to reach a deal before next month’s election. However, he said the White House would not allow differences on funding targets for testing rail talks with Covid-19’s best Democrats.
The growing spread of the coronavirus across Europe, where there are about 100,000 new cases a day – about twice as many as the United States – is “very frightening,” Kramer admitted. “The number of cases is certainly frightening.”
But while infections in America are also on the rise, he said the country’s public health response will be different from spring. “This is important” for investors, he said. “There will be no lock.”
Kramer said earlier in the Squawk Box that there was nervousness on Wall Street before the presidential election that could lead to the sale of shares. However, he said he saw “very good” in the market and cited profits from major banks such as Goldman Sachs and Morgan Stanley, along with drugstore chain Walgreens.
“I say let him go down and then do some shopping and I was bearish,” Kramer said. “It’s not the time to get wholesale negatives. It’s just not.”