Jim Cramer Video: China, Cryptocurrency, Costco, Nike, Debt Ceiling, Semis
Shares were mixed in intraday trading after Thursday’s market rally, which saw all three major indices close more than 1% higher.
The Dow Jones Industrial Average was up 60.59 points, the Nasdaq Composite was down 77.98 points, and the S&P 500 was up 3.56 points at 10:00 a.m. ET.
Jim Cramer and Jeff Marks, Senior Analyst at Action Alerts PLUS, discussed China’s cryptocurrency crackdown, continued debt ceiling talks, Nike (NKE) – Get the NIKE, Inc. (NKE) report, Costco (COST) – Get the report from Costco Wholesale Corporation, the semiconductor shortage and much more.
Watch TheStreet’s full interview in the video below:
China takes on cryptocurrency
After weeks of repression in various industries, China has turned its attention to the cryptocurrency market. The People’s Bank of China issued a blanket ban on all cryptocurrency trading on Friday, with all forms of digital transactions and financing declared “illegal activities strictly prohibited.”
In a statement posted on the PBOC website, the central bank said the government would “resolutely crack down on virtual currency speculation, financial activities and inappropriate behavior in order to protect people’s property and maintain order. economic, financial and social â€.
Overseas stock exchanges have also been banned from using the Internet to provide services to mainland Chinese investors.
In a joint statement obtained by Reuters, 10 Chinese government agencies, including banking, securities and currency regulators as well as the central bank, said they would work in tandem and use “high pressure” to crack down on speculative cryptocurrency trading.
However, there was no mention of the legality or illegality of owning cryptocurrency assets.
Nike warns supply chain issues could impact your next pair of kicks
Nike reported better than expected results after the close of Thursday’s session, but warned that supply chain disruptions could have a bigger impact than expected on its business.
The Shoemaker reported adjusted earnings of $ 1.16 per share, beating consensus estimates of $ 1.11. However, revenue of $ 12.2 billion was slightly lower than the expected $ 12.465 billion.
Nike has warned that longer transit times, labor shortages and prolonged production shutdowns in Vietnam could impact revenues as the holiday season approaches, lowering its sales forecast for fiscal year 2022.
Costco sees significant growth as big bathroom tissue shortage returns
Costco reported adjusted earnings of $ 3.76 per share on revenue of $ 61.44 billion, marking a 17.5% year-over-year increase and beating analyst estimates.
Comparable sales for the quarter increased 9.4% company-wide, with an increase of 10.3% in the United States and 6.7% in Canada.
The bad news? Even Costco is not immune to recent supply chain shortages. Retail has warned it will limit purchases of certain items, including toilet paper, paper towels and bottled water amid “Delta-related increase in demand,” citing delays two to three weeks on certain deliveries.
Costco is an interest in Jim Cramer’s Action Alerts PLUS Charity Portfolio.
Cramer has a cure for the semiconductor shortage
The global semiconductor shortage remains relevant following a White House meeting with tech CEOs and automakers.
Consulting firm AlixPartners said Thursday that the current shortage will cost the auto industry $ 210 billion in lost revenue this year, globally.
Calling the approach to the chip shortage real-money “madness”, Cramer made a simple suggestion to the Biden administration: start treating semiconductors as a matter of national defense.
“Why is it a civilian issue? Why isn’t it a defense issue? Why can’t President Biden recognize that that $ 52 billion, bottled in the House, can’t get to where they are needed only if the Defense Ministry speaks up and says that if the PRC decides to take control or compress Taiwan, we risk falling behind in its expansion, â€Cramer wrote.
Commerce Secretary Gina Raimondo said Bloomberg On Thursday, the enactment of the Defense Production Act remains on the table as the ministry continues to research information on companies’ supply chains.
Hear what Jim Cramer says only to members of his Action Alerts PLUS Investment Club in Friday’s daily recap.