•   
  •   
  •   

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

Trump says China could face more than $500 billion in US tariffs

  Trump says China could face more than $500 billion in US tariffs Trump says China could face more than $500 billion in US tariffs|| 105253826First “34, and then you have another 16 in two weeks and then as you know we have 200 billion in abeyance and then after the 200 billion we have 300 billion in abeyance. Ok? So we have 50 plus 200 plus almost 300," Trump 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

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 translates what US bonds are saying, and it's not good for the economy

  Cramer translates what US bonds are saying, and it's not good for the economy Jim Cramer says that if the Fed keeps raising interest rates, the U.S. economy could be on a path to recession.In particular, the "Mad Money" host was watching the two-year and 10-year U.S. Treasuries on Thursday as the two notes took on what he called a "highly unusual" pattern: the gap between their yields grew tighter.

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

Read more from Jim Cramer and other top money experts

"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 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.

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!

-

-

Facebook

-

Instagram

-

Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Cramer: If you own shares in companies with business in China, you should be worried .
Jim Cramer warns investors of Boeing, Caterpillar and other China-reliant stocks that the trade war could still get worse."Anyone who watched my old pal Larry go off on China knows that if you own shares in the companies that are thought to be dependent on China — and I'm talking about a Boeing, a Caterpillar, United Technologies, Emerson [or] so many others — you've got to be quaking in your wingtips," the "Mad Money" host said.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!