Cramer points out stocks to watch as China's economy slows down

CNBC’s Jim Cramer gave investors his top sectors and stocks to watch following Tuesday’s weaker-than-expected Chinese economic data.

The Dow Jones Industrial Average slid more than 300 points as concerns over China’s economy began to mount. The country’s July economic data broadly missed expectations, and the National Bureau of Statistics’ report did not include youth unemployment numbers.

Cramer recommended investors consider infrastructure stocks because the U.S. government is investing heavily in that sector, signaling out equipment manufacturer Caterpillar and steelmaker Nucor. He also highlighted aerospace players Boeing and Honeywell as potential beneficiaries of aircraft shortages and the continuing tourism boom. Cramer also recommended drug stocks like Eli Lilly, homebuilding stocks Lennar and DR Horton as well as tech giants like Nvidia.

“You can apply your cash lightly here, then buy more as we go lower to these themes, because these situations tend to last for more than a day or two, and the themes last for ages,” Cramer said. “So, be prepared for pain, just know that the pain is a buying opportunity as long as you know what to buy and you can buy slowly, in stages, on the way down.”

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Caterpillar, Honeywell, Nvidia and Eli Lilly.