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Cramer’s jobs number Friday playbook

(Click for video linked to a searchable transcript of this Mad Money segment)

There's every reason to think stocks will sell-off on Friday. And if they do, Jim Cramer wants you to be ready.

That is, pros are expecting a sell-off after the government releases the jobs number before the bell. By most accounts the number will be solid; consensus estimates are for 185,000 according to Reuters.

Considering the economy needs jobs, it may seem counter-intuitive for stocks to sell-off.

But the market is extremely focused on the Fed right now and the non-farms payroll report,as it's called, will be the last reading the central bank gets on the U.S. labor market before its meeting later in the month.

And an improving economy will likely trigger more fears of Fed tapering.

Adam Jeffery | CNBC

In turn, bond rates will likely move higher and an increase in bond rates has been negative for stocks.

Although the knee-jerk reaction may be sell, Cramer reminds that higher rates are not universally negative for stocks. In fact, some do quite well in a rising rate environment.

Here's where Jim Cramer would put money to work.

"First, there are the banks," Cramer said. "JPMorgan CEO Jamie Dimon explained to me personally that he needs rates to go to 4% in order to really get earnings to expand," Cramer said.

If a strong employment number leads to tapering and higher rates, "you can raise earnings on the bank stocks starting tomorrow," Cramer said.

Also Cramer said higher rates are good for GM.

Billionaire investor Kyle Bass has established a position in the stock, in part, because he thinks, "A big jump in rates could ease the pension liability burden on the company," Cramer added.

"That's because General Motors can invest money and get a better return, something that could lead to an $8 billion swing in profits over time, given the company's $27 billion pension liability."

Also Cramer said General Electric, Boeing, Delta and Dupont could benefit, too.

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If higher rates as a sign of economic health, Cramer believesPaychex is also a buy. "It benefits from increased business formation, which is part and parcel with demand for more money that causes rates to go up in the first place."

And looking at the sell-off from an entirely different angle, if you're nimble he thinks Viacom, CBS, AOL and Time Warner are also buys.

"They're all aggressively buying back shares and I bet they take advantage of any weakness to do a little more buying."

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