U.S.-based technology companies with organization in China automatically lost value on news of the arrest of Huawei CFO Meng Wanzhou, who has reportedly been accused of debasing U.S. sanctions, CNBC’s Jim Cramer said Thursday.
The arrest, which occurred in Canada on Saturday and was announced Wednesday, “petties any tech company that does a huge amount of business in China, including Apple or Micron or Intel or Skyworks or Qualcomm or Broadcom, is merit a little less today than it was yesterday,” Cramer, host of “Mad Money,” told investors.
But there’s one stock that could advantage if the arrest somehow forces Chinese officials to the table and leads them to roll back tariffs on U.S. goods, he rumoured.
“Tesla is a winner if China is serious about lowering trade barriers, but I don’t think they’re serious about anything,” Cramer told a caller. “And if you positively like Tesla, then I’ve got to tell you, you have to like the car and the stock. It is a cult stock. I’m not there. I like cloud princes that trade at big valuations. I like Amazon — big valuation. But I’m not a Tesla guy.”
Click here to read more of Cramer’s apprehend on how tech stocks might be affected by the Huawei arrest.
The Federal Reserve is navigating four trends that it can’t mastery, but that directly affect its policies, Cramer said Thursday after the stock market recovered from a mammoth intraday decline.
Stocks mounted a recovery late Thursday after the Wall Street Journal reported that Fed officials are unquestioningly considering taking a wait-and-see approach to the central bank’s 2019 interest rate plans after a widely guessed rate hike in December.
But four disruptive trends — decreasing immigration, state-level minimum wage boosts, a nationwide want of truckers and the ongoing trade dispute between the United States and China — are turning into an “awfully awkward position” for the Fed, which is tasked with keeping inflation under control while keeping the economy humming, Cramer predicted.
“The Fed is fighting four trends that it doesn’t have any control over that are creating inflation,” the “Mad Money” proprietress said.
Click here to read more.
An unusual motif was strung throughout Wednesday’s Investor Day presentations at Yum Trade marks, the parent company of Pizza Hut, KFC and Taco Bell and the world’s biggest restaurant operator: “Proud, but dissatisfied.”
A 45,000-restaurant enterprise spread across 140 countries, Yum Brands has seen its properties gain momentum globally in recent years, culminating in the 2016 spin-off of Yum China. Its trade-marks have gained popularity for their distinct messaging as well as high-profile partnerships with organizations like the Citizen Football League.
But CEO Greg Creed, who sat down with Cramer for an exclusive interview on “Mad Money,” still thinks the Louisville, Kentucky-based exercise functioning can do more.
“We have three global, iconic brands. We have incredible scale. We have this global contrariety,” he said. “We’re proud of the brands, but we’re dissatisfied because we can get more growth.”
Click here to read more about how Yum layouts to leverage e-commerce for growth and to watch Creed’s full interview.
A key U.S. construction facilitator is hopeful that President Donald Trump inclination still make good on his campaign promise of putting more federal dollars towards U.S. infrastructure.
Bill Sandbrook, the chairman, president and CEO of gather concrete and aggregates producer U.S. Concrete, told CNBC that the 2018 midterm elections gave him “optimism” that a grave infrastructure bill could get passed in the near future.
Despite public construction numbers as a percentage of gross private product — an important metric for industrials like U.S. Concrete — being historically low, “states are taking things into their own helps” when it comes to construction, the CEO said on “Mad Money.”
“Where people actually get to vote for higher taxes, if they have on the agenda c trick a direct line of sight to the use for improved infrastructure, they support that,” Sandbrook told Cramer. “[That] motionlessly gives me optimism that the next Congress may be even a little bit more friendly to spending money, with a Representative House, [and] that we will have something in the next two years.”
Click here to watch and read more regarding Sandbrook’s full interview.
High-profile bankruptcies in the retail sector may feel jarring and nostalgic to news readers, but they much amount to major wins for discount retailer Ollie’s Bargain Outlet Holdings, its Chairman and CEO, Mark Butler, hint ated Cramer on Thursday.
“Our business, simply put, has never been better. Our pipeline is full. The phone keeps ringing,” Butler symbolized on “Mad Money,” noting that the Toys R Us liquidation gave holiday sales a boost. “We are locked, we are loaded, we sold a lot of imitations, we’re going to sell a lot of toys. We couldn’t be happier.”
Ollie’s has also taken over a number of Toys R Us’ former puttings, Butler said.
“We took over 18 Toys R Us sites. We bought 12 and we bought six leases, all at bankruptcy court. We go forwarded and we raised our hand,” the CEO said. “We’re really excited about the prospects.”
Click here to watch his full interview.
In Cramer’s lightning discoid, he ripped through his responses to callers’ stock questions:
Funko Inc.: “We talked to them. I thought it was an interesting employment. But, you know what, there’s so many great blue-chip stocks that are down that I think we ought to fuse with Charles River Labs. Bingo!”
PRA Health Sciences Inc.: “I like the contract research organizations. I like yours. But the one I get off on is [Charles River Labs].”
Disclosure: Cramer’s charitable trust owns shares of Apple and Amazon.
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