Shares of chipmaker Advanced Micro Devices plunged after the company’s Wednesday earnings report because Wall Street’s expectations were too high, CNBC’s Jim Cramer said as the stock shed over 20 percent in after-hours trading.
“It got too heated and there was a line that was wrong,” the “Mad Money” host told a caller. “That one line [is] enough to send the thing lower. But I bet there is another day where you’ll want to own AMD.”
Cramer also noted that Wall Street is glossing over some great earnings reports from major technology companies.
Click here for his full take.
Two familiar culprits are behind the stock market’s “insanely emotional” swings, Cramer said Wednesday after the Dow Jones Industrial Average erased its yearly gains, the S&P 500 turned negative and the Nasdaq saw its worst day since 2011.
“The two men with the most influence over the stock market in the world, the president and the Fed chief, are engaged in a totally destructive tug of war where both sides are wrong,” Cramer said. “That’s right, President Trump and Fed Chairman Jerome Powell have staked out opposite sides of the economy and the real loser is you, the investor.”
Cramer couldn’t understate the tension between the central bank and the executive branch, saying he couldn’t recall “a moment more convoluted than this one” when it came to the macroeconomic layout.
One one side sits the Fed, bent on raising interest rates in order to combat inflation before it takes off, and on the other, President Trump, who has said he believes that the “biggest threat” to his presidency is the Fed’s rate hike agenda.
Click here to find out why Cramer thinks this tension is so dangerous for stocks.
Legendary investor Warren Buffett once said, “Only when the tide goes out do you discover who is swimming naked.” To Cramer, that statement “is the perfect tagline for this … awful earnings season.”
“We’re seeing lots of ‘naked’ CEOs along with plenty of good ones in swimming trunks, and often, they’re in the exact same sector,” Cramer said Wednesday as the earnings wave continued. “So who’s swimming naked, something we need to know before we start buying into this horrendous tape?”
Cramer started with telecommunications rivals Verizon and AT&T, both of which recently issued their third-quarter earnings reports. While Verizon’s subscriber numbers beat estimates, AT&T’s report showed points of weakness.
“Verizon’s firing on all cylinders. It’s a buy if it ever comes down again. ATT, on the other hand? It missed badly,” Cramer said, noting that AT&T’s 6.6 percent dividend yield was too high for his taste.
Click here for his full analysis.
Sports entrepreneur Michael Rubin, founder and CEO of privately-held e-commerce giant Kynetic, sees “nothing but growth opportunity” in China despite the trade tensions between its government and U.S. trade authorities.
“What I see as an entrepreneur is how much opportunity there is in China,” Rubin, who co-owns the Philadelphia 76ers, told Cramer in an exclusive interview.
On Rubin’s most recent visit to China, where he’ll soon be launching Fanatics, a sports merchandise retailer and CNBC Disruptor 50 company, he said the excitement around basketball was something “you had to see … to believe.”
Click here to watch and read more about his full interview.
“[It’s] always good to do these things from a position of strength as opposed to when you’re on your back foot,” Sands said in a joint interview with his successor, Bill Newlands. “I’ve been CEO for 11 years and the company has great momentum.”
Sands will move to the position of executive chairman and will still be involved in the company’s strategy, he said. In the meantime, Newlands said he would be considering “strategic alternatives” in Constellation’s lower-end wine segment and continuing to bolster the company’s newly forged relationship with cannabis producer Canopy Growth.
“A lot of work’s being done to make sure that you have the right understanding of dosage, that you have the right understanding of how people want to use it and be prepared for the future as legalization occurs around the world,” Newlands said.
Click here to watch the incoming and outgoing CEOs’ full interview.
In Cramer’s lightning round, he rattled off his take on callers’ favorite stocks:
Celgene Corp.: “There’s absolutely nothing that’s negative on Celgene, the problem is, again, that everything in the biotech cohort is going down all at once. So I don’t have any solace other than to say that there’s nothing individually wrong with Celgene versus any of the others and you’ve just got to ride your way right through this one.”
Apple Hospitality: “It’s a solid REIT. I’m not going to say it’s blowaway. It’s got a good yield and interest rates are going lower because of a slowdown. It’s fine.”
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Questions, comments, suggestions for the “Mad Money” website? firstname.lastname@example.org