Cramer says 'story stocks' based on far-off profits are in trouble here

Jim Cramer
Scott Mlyn | CNBC

CNBC's Jim Cramer said Friday investors should stay away from so-called story stocks that are years away from profitability due to rising bond yields.

Equity investors are wrestling with the implications of higher bond yields, Cramer said on "Squawk Box," and "that means the paradigm is that we've got to go lower and we go lower in the stocks that some big fund managers like, which are these stocks of companies that are all based on 2030 numbers."

Cramer's comments came shortly after the release of the February jobs report, which showed strong gains in the labor market and helped send the yield on the 10-year Treasury to a new one-year high. The Dow Jones Industrial Average also jumped following the jobs data, one day after a steep sell-off on Wall Street.