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Cramer says the economy’s problems are oversold, citing resilient services

He pointed to Airbnb’s 17% revenue growth in its latest quarter and Home Depot’s first 5-year best quarter, arguing services are offsetting weakness in housing and parts of the bond market.

Thursday, August 20, 2026 · Written up by our desk · Sectors

Jim Cramer, speaking on CNBC’s “Mad Money,” argued investors may be fixating on surface-level issues while underestimating the economy’s resilience, even as markets have been choppy. In the session ending Aug. 18, the S&P 500 closed at 7,691.76, down 0.69%, the Nasdaq slipped 1.33% to 26,289.71, and the Dow fell 116 points to 53,343.40, after a record day for the index just a day earlier, according to the Associated Press.

Cramer said the mix of concerns being discussed includes tech turmoil, oil, inflation, housing affordability, and the bond market, while pointing to economic data and housing weakness. He referenced a reported July payroll decline of 23,000, retail sales down 0.6% for the first drop in nine months, and a reported 12.4% plunge in July housing starts, while arguing the broader picture is more durable.

On the company side, Cramer highlighted Airbnb as a standout in services and said Home Depot showed strength from professional contractors. He cited Airbnb stock’s gains over the past six months and said the company’s Aug. 6 quarter featured revenue up 17% to $3.61 billion versus $3.57 billion consensus, with EPS of $1.37 beating the $1.26 estimate, while raising its full-year revenue growth outlook.

Cramer also said the housing market’s sluggishness has not automatically weighed on related spending, noting that housing “barely has a pulse.” He pointed to Home Depot’s Aug. 8 results, including sales rising 5.7% to $47.86 billion and an adjusted EPS of $4.92 versus the $4.73 estimate, and he concluded that if the service economy is performing, investors should not be overly negative.

Latest closeS&P 500 7,785.76 ▼0.2%|Nasdaq Comp. 26,729.16 ▼0.3%|Dow Jones 53,732.41 ▼0.2%

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