Investing

Cramer sees biotech stocks as a refuge in the coronavirus-driven market plunge

CNBC’s Jim Cramer said investors who are trying to navigate Monday’s global stock market sell-off should look to drug companies.

“I look at these drug companies and I think, ‘Wouldn’t that be a great place to go if the market really falls apart?’ ” Cramer said on “Squawk on the Street.” “They’re so good and they haven’t come down.”

The “Mad Money” host pointed to Gilead Sciences as one potential buying opportunity, noting it has a drug being used in a coronavirus trial.

Shares of the biopharmaceutical company were up more than 4% early Monday, standing in contrast to markets around the globe that are falling due to increased concerns around the coronavirus.

The Dow Jones Industrial Average, S&P 500 and Nasdaq saw significant declines as the virus’ outbreak takes deeper roots outside of mainland China, where a vast majority of the cases are located.

Coronavirus cases have risen in Italy, now home to the largest outbreak outside of Asia. There also are now more than 830 cases and seven deaths in South Korea as the country’s authorities raised their alert to the “highest level.”

Cramer said earlier Monday that the sell-off in response to the deepening outbreak indicated further negative effects on U.S. multinational companies’ earnings.

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