Homepage / Technology / Cramer Remix: Why the ‘auto slowdown’ thesis is kaput
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

Cramer Remix: Why the ‘auto slowdown’ thesis is kaput

As the Dow Jones average closed at a record high on Thursday, CNBC’s Jim Cramer saw a forgotten sector getting a bit of unexpected love.

“Nothing gives you clues better than the stock market,” the “Mad Money” host said. “Remember that peak auto thesis that autos were now headed [down]? Well, that’s being disrupted by all those destroyed cars in the Houston area that are insured.”

Nearly two weeks after flooding from Hurricane Harvey wreaked havoc on the Eastern coast of Texas, Cramer started seeing some of the most embattled auto stocks breaking out.

“Look at the stock of General Motors. It’s finally breaking out. Do you know how many years that thing has been toiling in the House of Pain? That’s those insurance checks. They’re coming in. Look at the stock of auto parts maker Magna International,” he said. “Morgan Stanley had the misfortune of downgrading this one right before the storm. Now it’s hitting 52-week highs as the slowdown thesis for the auto industry is kaput and the parts industry is soaring.”

But auto isn’t the only sector turning around. Cramer also noticed health care stocks starting to come back to the fore and shared his cardinal rule for spotting market rotations.

Cramer is convinced that analysts who weren’t thrilled about Apple’s new iPhone release are missing something, and it may have something to do with age.

“I think one of the reasons why there was so little ‘Wow, got to have it’ about the new iPhone, at least among the analyst community, is that the analysts themselves might be too old to get their heads around the way younger people see these products. When new technology comes out, millennials, who tend to be too young to be senior analysts, are far more likely to figure out how to use them and how to adapt to them,” Cramer said.

Analyst reports from Credit Suisse, Canaccord Genuity, JPMorgan and Piper Jaffray were tepid, saying the product launch met expectations, while KeyBanc analysts were “disappointed” with the iPhone X.

But Cramer argued that younger people are likely to create buzz around new product features, download key apps and use the phones to engage with and document the experiential economy.

Brick-and-mortar retailers may be feeling the heat from Amazon, but Cramer is keen on one chain that’s been thriving despite the online giant’s domination: Best Buy.

“Five years ago, it looked like this electronics retailer was roadkill, and it was regularly dismissed as merely being a showroom for Amazon. Remember that? You’d go into Best Buy, you’d look at the televisions, computers [or] speakers, then you’d order them off the web for a lot less money. Then Hubert Joly took over as CEO in September of 2012, and ever since then, Best Buy has come roaring back, with the stock nearly quadrupling over five short years,” Cramer said.

The stock has been so strong that Cramer was surprised when Best Buy shares fell nearly 12 percent after its latest earnings report. Investors fled the stock after management issued some cautious commentary on the conference call, a reaction Cramer saw as overblown.

“Of course, Best Buy has already started bouncing back, but the stock is still down $5 from its highs and it’s got a lot of big catalysts coming up in the next few weeks. That’s why I think it’s not too late to buy the stock of BBY,” Cramer said.

Then, Cramer spoke with Mark Schwabero, the chairman and CEO of Brunswick, the largest manufacturer of recreational boats in the world.

Hurricane Irma took a toll on the coast of Florida, which is home to a large boating community. But Schwabero told Cramer on Thursday that boats are far from Florida residents’ first priority.

“If you go back and look at Hurricane Matthew, you look at Sandy, Katrina and now the most recent one, typically, the boat aspect is delayed about 12 to 18 months. The priorities are getting your home, the roof, your life back to normal, getting the checks from the insurance company, all those things,” Schwabero said. “The other part is some people return to boating through used boats. They’re not all new replacements.”

As a company partly devoted to making boat components, Schwabero expected to see owners making repairs to their boats first rather than purchasing new ones.

“I think the first thing we’ll see is we’ve got a huge parts and accessory business, about 25 percent of the company. You’ll start seeing some of that as people repair boats, and then over time we’ll pick up the new boats,” Schwabero said.

Finally, Cramer sat down with Brixmor Property Group’s new President and CEO, James Taylor Jr. As the head of a retail-oriented real estate investment trust, or REIT, Taylor told Cramer on Thursday that retailers are starting to realize the most effective strategy for staying in business.

“I think what the retailers who are thriving in this environment get is that it’s really an integrated approach to serve the customer. And internet is part of the businesses that are going to thrive, but not necessarily a replacement for the physical presence of a store,” Taylor said.

The CEO pointed to Amazon’s $13.7 billion purchase of high-end grocery chain Whole Foods and said it sent a key message to the entire retail sector.

“The read-through on that, and a very important point, is that in [Amazon’s] obsession to serve the customer, they think the store is important,” Taylor told Cramer. “And when you see these retailers who are pulling stores away, they lose their online sales.”

In Cramer’s lightning round, he sped through some callers’ favorite stocks:

International Flavors & Fragrances Inc.: “I think that last quarter was really good. The one before it wasn’t that good. I want to have them back. I really like those guys. Buy, buy, buy.”

Lockheed Martin Corporation: “Buy, buy, buy! That is one of my favorite stocks. By the way, I still like Raytheon a little more, though.”

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterFacebookInstagramVine

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

Source: Tech CNBC
Cramer Remix: Why the ‘auto slowdown’ thesis is kaput

Comments are closed.