CNBC's Jim Cramer knows that Friday's nonfarm payroll report will undoubtedly affect markets: the stronger the report, the more worry investors will have about the Federal Reserve raising interest rates too quickly.
And while higher rates are a boon for the banks, they're a problem for many other businesses, particularly housing.
"In fact, I believe a really strong employment number would be met with a massive amount of selling in the stocks of the homebuilders, as they're the most rate-sensitive group," the "Mad Money" host said on Thursday.
But Cramer wasn't so sure that selling stocks of homebuilders like Lennar was the best course of action for investors. Most of the homebuilders are U.S.-based, meaning they benefited from the tax cuts, are shielded from tariffs and could be helped by rising wages and higher labor participation, a largely overlooked data point in the Bureau of Labor Statistics' report.
"This time, we shouldn't rush to sell the homebuilders or housing-related retailers" even if the 10-year Treasury yield starts surging to 3 percent, Cramer said.
"Maybe instead we should be buying these stocks, and that's a huge and welcome change," he continued. "If we see a large pickup in the participation rate and Lennar and the other homebuilders get hit anyway, these all-domestic stocks may be exactly the right names to buy in this new environment that's so much more hostile to international trade."
Even with the "rebound rally" seemingly in full force, Cramer doesn't think it's time to get comfortable just yet.
"Look, I'm not saying we can't keep rallying here, ... but here's what worries me: what if all we do is hold, then bounce, then sell-off again before yet another retest of the lows?" Cramer said. "Just because we made it out of the woods of Monday and then yesterday, doesn't mean it's going to be smooth sailing."
On Thursday, Cramer set off to find the top risks that could throw a wrench in the rebound.
Among them were an excessively strong nonfarm payroll report from the Labor Department; another errant tweet from President Donald Trump, who no longer seems to judge his success by the market's performance; the snowballing tariff conflict between the United States and China; and the president's push to renegotiate NAFTA.
But one of Cramer's biggest concerns was that FANG, his acronym for the stocks of Facebook, Amazon, Netflix and Google, now Alphabet, has become an entirely new "wild card" in light of "the president's tremendous onslaught against Amazon."
"What Netflix is to video, Spotify is to audio," the "Mad Money" host said. "And Spotify believes that the streaming market is still in its infancy."
Spotify's direct listing differed from a standard initial public offering in that the company only sold existing shares instead of issuing new ones and had minimal contact with investment banks, which typically underwrite IPOs.
As co-founder and CEO Daniel Ek said in an online post the night before the listing, "what's ... important to me is that tomorrow does NOT become the most important day for Spotify."
"He wasn't desperately trying to raise capital, he was trying to do right by his employees," Cramer said. "In every respect that matters, this was the anti-IPO."
"I think this is the perfect storm for us," Butler, also the chairman of Ollie's, told CNBC's Jim Cramer in a Thursday interview on "Mad Money."
For Ollie's, Butler said the advantages are twofold. First, "there's going to be a lot of product that's going to be available because these manufacturers are losing one of their number one, if not their number one customer," he told Cramer.
Second, Toys R Us was largely a brick-and-mortar retailer, which could mean increased traffic at other brick-and-mortar stores that sell toys like Ollie's, Butler said.
In an attempt to stay ahead of the ever-changing game in retail, Pennsylvania Real Estate Investment Trust Chairman and CEO Joseph Coradino recently sold off 40 percent of his company's portfolio, he told CNBC.
"We're well ahead of the curve as it relates to the problems, the headwinds that we see in the retail space," Coradino said in a Thursday interview with Cramer.
Coradino explained that his company realized it didn't need a slew of shopping malls with underperforming department stores to keep its retail-focused business afloat.
"We didn't need that many Macy's or that many Sears," Coradino said. "If you've got strong assets with better tenants, you drive more traffic and more sales."
PREIT isn't just diversifying its tenants, the CEO added, noting that less than half of its malls are now mainly apparel-focused.
"We've differentiated to dining, entertainment, health and beauty, fitness, on and on and on," he said. "It's not your grandmother's mall anymore."
In Cramer's lightning round, he rattled off his take on some callers' favorite stocks:
Synchrony Financial: "I think Synchrony's OK. My friend Bruce Kamich, who works with me at RealMoney.com, says that that Visa chart's really good, and I happen to like Visa management. I'd rather you go with Visa."
American Express Co.: "Holy cow, American Express, another one I don't like as much as Visa, although I understand the story. But I would prefer Visa at $121 than American Express at $94."
Disclosure: Cramer's charitable trust owns shares of Facebook, Amazon and Alphabet.