Cramer: Spanish Bond Auction Could Be 'Awful'

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Anticipation is building on Wall Street as Spain is scheduled to sell its two-year and 10-year government bonds on Thursday morning.

If you ask "Mad Money" host Jim Cramer, the Spanish bond auction could be "awful" and send the overall market lower, especially the banks. In turn, he thinks investors could get a chance to buy shares of Morgan Stanleyat discount. The New York-based bank will report earnings before the opening bell.

“I think it will be one of the stronger earnings calls out there,” Cramer said. “Morgan Stanley's a fabulous firm that's been tarred as a European stepchild. That's pure nonsense. It might be the cheapest of the group.”

Elsewhere in the banking sector, Bank of America will also report Thursday morning. If bank stocks continue to go down and Spain’s bond auction doesn’t go well, Cramer thinks BAC is likely to rally no matter what its results are.

Then again, Bank of America isn’t one of Cramer’s fave bank stocks. If “best of breed” names like JPMorgan Chase and Wells Fargo take a hit after reporting strong quarters, then Cramer said it’s tough for him to get behind “the poorly-performing operation that is Bank of America.”

The Spanish Treasury plans to sell up to 2.5 billion euros ($3.28 billion) of two- and 10-year bonds. Spain's auction will be small compared to auctions held by other governments lately.


—Read on for Cramer's full "Game Plan"

— with Reuters contributed to this report

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