Offbeat Cramer argues that this rally is 'all about China blinking' in the trade war

01:46  13 july  2018
01:46  13 july  2018 Source:   cnbc.com

Cramer says Trump is not wrong on the China trade war

  Cramer says Trump is not wrong on the China trade war CNBC's Jim Cramer says many Americans support President Trump’s trade war with China, but contends that their voices are being drowned out. “We simply, as a people, seem to be united that the president's position is wrong. I hear more of that on TV than I hear reality. I think that there are a lot of people [who say], ‘Thank you for standing up for us,’” Cramer said on CNBC.Just after midnight Friday, the United States and China exchanged $34 billion worth of tariffs. The American duties affect products such as water boilers, X-ray machine components, airplane tires and various other industrial parts.

Cramer posited this theory to help justify why so many different stock groups — the airlines, fintech plays, defense stocks, chipmakers and health care names included — rallied just one day after the U.S. escalated its trade war with China . He argued that the fact that Chinese officials didn't immediately

The Trump administration's trade dispute with China may have quieted down, but CNBC's Jim Cramer argued on Thursday that it is far from over. "We've opened up a new front in the trade war , and while it's quieter than all of the bombast about tariffs that had people freaking out

As CNBC's Jim Cramer watched an amalgam of unrelated stocks climb on Thursday, he realized that there was a key driver behind the bounce: China.

"I know I’m in the minority when I say this, at least among professional commentators, but today’s rebound was all about China blinking," the "Mad Money" host said.

Cramer posited this theory to help justify why so many different stock groups — the airlines, fintech plays, defense stocks, chipmakers and health care names included — rallied just one day after the U.S. escalated its trade war with China.

He argued that the fact that Chinese officials didn't immediately propose their own tariffs like they did after the Trump administration's first $34 billion wave of duties spoke volumes when it came to the market.

Cramer: I think Trump is winning the China trade war, and the US stock market backs me up

  Cramer: I think Trump is winning the China trade war, and the US stock market backs me up President Trump is beating China in a trade war that could soon escalate, CNBC’s Jim Cramer says.President Donald Trump is beating China in a trade war that could soon escalate, CNBC’s Jim Cramer said on Friday.

The Trump administration's trade dispute with China may have quieted down, but CNBC's Jim Cramer argued on Thursday that it is far from over. "We've opened up a new front in the trade war , and while it's quieter than all of the bombast about tariffs that had people freaking out

Cramer argues the trade war is more worrisome than 10-year Treasury yields approaching 3%. Even though Cramer supported the United States' push for better trade deals with China , he "I think it's worth taking some pain here for the chance to participate in that rally ," the "Mad Money" host

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"Whether you like it or not, or believe it or not, the president just threatened to slap new tariffs on $200 billion worth of Chinese exports, [and] what did the Chinese do? They did nothing. No retaliation," Cramer said.

"When that happens and the stocks of American companies that do business in China start to rally, it emboldens other investors," he continued. "People don't want to be crosswise with this one."

And while Cramer didn't want to put too much weight in Treasury Secretary Steven Mnuchin's somewhat conciliatory comments on trade or Trump's preoccupation with his trip abroad, he acknowledged that they did provide a degree of relief during Thursday's trading session.

Cramer flags Mastercard and Visa's 'unbeatable' hedges against China trade fears

  Cramer flags Mastercard and Visa's 'unbeatable' hedges against China trade fears Jim Cramer explains why the stocks of Mastercard and Visa have strong safeguards against the brewing U.S.-China trade conflict.Load Error

CNBC's Jim Cramer says the recent rally in large-cap tech stocks has been "breathtaking". Cramer mentioned last week that tech stocks, particularly Facebook, Amazon, Netflix and Alphabet, have been resilient even with U.S. investors laser-focused on the White House's tit-for-tat trade war with China .

With the U.S. Department of Commerce on the cusp of deciding whether to place tariffs on steel and aluminum imports, CNBC's Jim Cramer wanted investors to be prepared for the fallout. "We're at a major crossroads when it comes to trade policy in this country

But he still maintained that "China blinking is a key prop to this rally and it allowed all of the usual suspects that got hammered yesterday to go right back up."

Questions for Cramer? Call Cramer: 1-800-743-CNBC Want to take a deep dive into Cramer's world? Hit him up!

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