Jim Cramer Sounds the Alarm: Coronavirus Spikes ‘Just Plain Bad News’ for Economy Reopening

CNBC host Jim Cramer sounded the alarm about spiking rates of coronavirus infections, saying the trend is “just plain bad news for everything that depends on reopening the economy.”

On Wednesday’s edition of CNBC’s Mad Money, Cramer delivered the dire assessment of the reopening economy as he analyzed stocks.

“First, the awaken America trade has taken a turn for the worse,” Cramer said, and added that “It’s a disturbing spike in Covid cases across Alabama, Arizona, North Carolina, South Carolina, and Texas.”

“The infection level is so high that the governors of New Jersey, New York, and Connecticut have taken an unusual action, no, highly unusual action, and slapped a 14-day quarantine on travelers from these hot spots,” Cramer said. “That’s really pretty amazing.”

Cramer then pointed out that “Nationwide we have more than 35,000 new cases today, which is about where these numbers peaked in April,” and exclaimed “Not good!”

“It’s just plain bad news for everything that depends on the economy reopening, which is a lot of things,” Cramer continued, then segued into an analysis of stocks related to “the stay at home trade,” which he expects to rebound from temporary losses.

President Donald Trump has chalked the spike in infections up to increased testing, and has repeatedly suggested he’d work to slow down testing. The Trump administration is also ending support for testing sites in six states.

Watch the clip above via CNBC.