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Cramer: Payroll numbers could 'unleash a parade of horribles'

With oil and the dollar pulling down stocks yet again on Thursday, Jim Cramer fears the market could be in for a tough end to the week.

On Friday, the Labor Department is expected to release nonfarm payroll numbers. Cramer thinks it could be big enough to take focus away from oil and the dollar.

"If we get a weak payroll report, if this economy doesn't grow as robustly as we might have expected just a few weeks ago, then it will unleash a parade of horribles onto the stock market," the "Mad Money" host said.





Payroll pay wages compensation
Grazvydas | iStock | Getty Images

The first negative repercussion Cramer expects is for oil to go down. That means investors will flee the market. He also expects to hear rumors about stagnant growth and the Fed's inability to do anything about it.

Cramer also anticipates both presumptive Republican nominee Donald Trump and Bernie Sanders to step up discussions on anemic job growth. At the same time, he thinks Trump could resurrect his attack on Apple for not making devices in the U.S.

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"When he bashed corporations before, he didn't have the gravitas that you gain when you win the nomination. Now that has all changed, and his statements could actually have an impact," Cramer said.

Bank stocks will likely also break down to levels seen last when the market worried about bad oil loans and rate hikes would be scarce.

"We had come to expect that, with things improving in this country, we would probably get a rate hike in June. A weak employment number takes that off the table, and the bank stocks will get clocked," he said.

Retailers could also take a hit again. Cramer was shocked when L Brands provided preliminary guidance that indicated a dramatic decline in revenues, including a 1 percent drop in same-store sales at Victoria Secret. This could impact other retailers, too.

The slower employment number could also extend the rotation out of cyclicals and into soft good stocks, which have been a strong bull market lately.

Finally, Cramer wouldn't be surprised to see technology get clubbed again, including Apple.

"The bulls need a number tomorrow that is just strong enough to think there could be some growth, but weak enough that the Fed heads won't feel the need to scream for instant hikes that this market can't handle. The amazing thing? That may just be the number we get," Cramer said.

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