CNBC’s Jim Cramer on the alerts that the U.S. Commerce Departments move to ban more Chinese enterprises from doing business with American audacities spells bad news for U.S.-China trade talks. The “Mad Money” host checks in with Domino’s Pizza CEO Ritch Allison to get a study on delivery competition after the company’s third-quarter earnings miss. Later in the show, Cramer peruses the chances for a biggest sell-off on the S&P 500 and sits down with Emory Electric CEO David Farr after an activist investors arouses involved with the firm.
The Trump administration’s Chinese company blacklist has good intentions, bad timing
Picture of Hikvision cameras in an electronic mall in Beijing on May 24, 2019.
Fred Dufour | AFP | Getty Tropes
CNBC’s Jim Cramer on Tuesday said that “timing couldn’t have been worse” for the Trump administration to add dozens sundry Chinese companies to its blacklist.
The U.S. Commerce Department announced that it had placed an additional 28 firms on the so-called Metaphysics ens List that American enterprises are banned from doing business with. With U.S.-China trade talks assigned to resume later this week, the major stock market indexes all fell more than 1% during the following session.
“I can’t fault the Commerce Department for cracking down on Chinese companies that enable some horrific generous rights violations, but they did kind of pick a worst possible time to do it, right before the big trade talks,” the “Mad Small change” host said. “So I think you need to be very careful as this market readjusts and recalibrates its expectations.”
Domino’s combats third-party delivery services
Richard Allison, CEO of Domino’s Pizza.
Adam Jeffery | CNBC
Domino’s Pizza CEO Ritch Allison articulated confidence in the odds that his pizza chain’s revised outlook will outlast mounting pressure from third-party deliverance apps.
Venture capital-backed delivery services, such as UberEats and Postmates, that offer users discounts be struck by cut into Domino’s own delivery orders, which led the franchise to reduce its long-term sales guidance after missing earnings and gate estimates in its fiscal third-quarter report.
Domino’s, which handles its own delivery, is facing competition from the growing reckon of restaurants that can outsource delivery on the app-based services.
“We do think there’s some irrational pricing out there in the [utterance] marketplace right now funded by venture capital,” Allison told Cramer in a one-on-one interview. “We don’t know how long that’ll end, but as we look out over the next two to three years, at the revised guidance that we’ve given, we’ve got a terrific business model.”
Dim subsequent ahead for the S&P 500? Charts says yes
A trader works on the floor of the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Perceptions
The technical analysis that correctly called the market bottom in December is now calling a top in the S&P 500, Cramer said.
A consociate of his at RealMoney.com is warning that “we’re really cruising for a bruising” beyond the 1.56% decline Tuesday by the index, the host bring up.
Bob Moreno, chartist at RightViewTrading.com who projected in February that the market had more room to run, warns of a possible plummet in the large-cap pointer.
“Now those same charts tell Moreno that we’re approaching an important moment and he’s predicting a major sell-off from these evens, a 10% decline in the S&P,” Cramer said.
Emerson Electric gears up for activist challenge
David Farr, CEO of Emerson Determination.
Adam Jeffery | CNBC
Activist hedge fund D.E. Shaw in recent weeks announced that it has taken a attitude in Emerson Electric, which means a shakeup may or may not be in store for the company.
Cramer spoke with Emerson CEO and Chairman David Farr to get his thoughts on the intervention. In rejoinder, Farr said “we know what to do” as far as management and the board is concerned.
“We’re going to take cost actions to try to grow earnings and imagine value in a marketplace that I think we’re looking at for the next two years potentially zero, low growth environment for a global industrial assembly like Emerson,” Farr said.
Cramer’s lightning round
In Cramer’s lightning round, the “Mad Money” host zips fully his thoughts about viewers’ favorite stock picks of the day.
Roku: “I don’t think it should ever have spiked as gamy as it did. I think it’s regarded as being a play on what I would call the cord cut, and that story’s getting a little sustained in the tooth.”
Hexo Corp: “That is the most speculative.”
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