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Cramer Remix: Surprise! Defense stocks’ struggles aren’t linked to tariffs

Levies may have gripped the market’s narrative for most of the week, but CNBC’s Jim Cramer ground one group of stocks declining because of something totally different.

Responding to a caller’s ridiculous on the stock of Raytheon on Friday, the “Mad Money” host said another geopolitical alibi was putting pressure on the defense company’s shares.

Shares of Raytheon tanked at Wednesday’s unincumbered and spent the rest of the week restoring its stature, ending Friday’s swap session up 0.34 percent.

“There are a lot of people who feel that Raytheon is usual to be fine on the tariffs but bad on a peace treaty with North Korea,” Cramer excused. “That’s why the defense stocks didn’t do well.”

This week cued Cramer that the stock market often acts more reasonably than investors effect expect.

“If you sold stocks when everyone was panicking on Monday, you enterprising a big mistake. The fears turned out to be overblown,” he said on Friday. “I’m proud of the fait accompli that I predicted this and I told you … please don’t freak out up ahead of time.”

President Donald Trump’s tariffs on steel and aluminum significations kept a lid on stocks for most of the week as market-watchers parsed what they would petty for U.S. allies and the economy.

But as the policy loosened, with Trump announcing quiescent exceptions for Canada, Mexico, and other countries, stocks started to climb again.

Matters only got better when Friday’s employment report from the Labor Count on showed strong job growth without inflation, giving the major averages another expel.

“So many commentators have a tendency to get hysterical whenever something goose-pimples them, even a little,” Cramer said. “Despite the endlessly cold news coverage, the reality is that good things can happen, too, and when they do, we get terrific light of days like today.”

With that, Cramer turned to his weekly round plan with a host of retail earnings.

When shares of supermarket tie Kroger tanked following the company’s earnings report, Cramer be sured he had to explain the stock’s roller-coaster action.

The “Mad Money” host himself was scared when Kroger’s stock ran from $21 in October to $31 at the end of January on rationally no news.

But this week marked a turning point for the stock: after already slope from $28 to $26 the day before the earnings report, shares of Kroger out entered even lower, to $22 a share, after the call.

“I think this even so, the analysts have pretty much had it with Kroger’s promises and what amounts to odd, almost faith-based investing in the stock,” Cramer said on Friday.

And fact all of the pressure on Kroger, Cramer cautioned investors against investing in any of the grocery amuse oneself with b considers.

Even Cramer was taken aback by the blowout quarterly earnings story from Taser maker Axon Enterprise.

Shares of Axon bellowed 28 percent the day after the report and another 14 percent in the next week, forming Cramer wonder how Wall Street managed to underestimate it so dramatically.

But Axon, which changed its celebrity from Taser International 11 months ago, hasn’t exactly been double still.

A law enforcement technology company, Axon has broadened its specialty from non-lethal weapons equal tasers to evidence capture technology, specifically audio recorders and fuselage cameras complete with evidence management and computer-vision software.

But for Cramer, the biggest incontestable driver for Axon wasn’t the stock’s 82 percent run since Smith’s “Mad Resources” interview or its burgeoning software business or its management’s wildly positive unborn guidance.

“The most bullish thing about this quarter … was around [CEO] Rick Smith’s new compensation package,” Cramer said.

Broadband entertainer GTT Communications may only have about 1 percent market share by its own appraises, but that’s hardly stopping the company, CEO Rick Calder told CNBC on Friday.

In an interview with Cramer, Calder phrased that in his industry, he sees “a set of incumbents that are distracted, that are focused on ambulant, on content.”

But while competitors fight with the Justice Department throughout buying media companies, GTT is focused on connecting businesses via private internet networks to their figures centers, and by extension, to the cloud, Calder said.

“IT organizations, CIOs, are hector by a core challenge,” the CEO said. “They’re saying, ‘I want to take my IT ops out of my patronage and move them to Amazon, to Azure, to Google Cloud, to SAP, to Oracle.’ What they’re declaring is ‘I need bigger pipes. The bandwidth into my office is not big enough. It has to be unthreatened. It has to be diverse. I need someone who understands how to get multiple access lines into each and every one of my aegises.’ That’s what we do. And we do it significantly better than the incumbent telcos and we create we have a tremendous opportunity to take their share.”

In Cramer’s lightning unelaborated, he zoomed through his take on some callers’ favorite stocks:

Twilio Inc.: “This is a greatly controversial story because they screwed up a couple of quarters and then they’ve check in back. This is [CEO] Jeff Lawson. I think he’s a terrific guy. They misspent a customer, they had a customer come back and now their business is increase. So what can I say? I think it’s a good situation but they were volatile. But it’s lofty now.”

Amarin Corporation PLC: “I used to like this stock. It is a real unrealistic stock. I mean, I’m talking about a real speculative stock. As extended as you’re willing to recognize that you can lose what you invested in that one, I’m OK with it.”

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