CNBC's Jim Cramer on Thursday identified a number of food and drug stocks that are worth buying after the major indexes pulled back during the trading day.
The "Mad Money" host recommended drug stocks Bristol-Myers Squibb, Merck, Eli Lilly, Biogen and Abbott Laboratories as buys on the way down. He added Mondelez and Waste Management to the shopping list, before suggesting that Walmart, Target and Costco are approaching oversold levels.
"When we get these sell-offs we tend to hear broad sweeping predictions, often of dire proportions," Cramer said, arguing that investors should "view this pullback as a gift."
The Dow Jones Industrial Average dipped 0.52%, or about 140 points, to 27,046.23 in the session. The S&P 500 and Nasdaq Composite both dipped as much as 0.30% to slide away from record levels.
Stocks traded lower after new doubts emerged from Chinese officials about a long-term solution to the U.S-China trade war, despite the day prior getting strong earnings reports from Facebook and Apple and an interest rate cut from the Federal Reserve.
Cramer, however, contended that China is not calling the shots in the trade negotiations. He said the Chinese economy is feeling more of the brunt from the trade dispute as American manufacturers move operations outside of China to avoid tariff costs.
He insisted that the "sellers are wrong," finding solace in the fact that stocks moved on speculation.
"When you look at a sell-off through that prism," after taking into account everything that's going right, "you'll recognize that nothing has changed here except the stock prices got cheaper. The market's throwing a sale that it doesn't need to throw."
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