CNBC’s Jim Cramer details the reasons for the stock market’s rally, despite concerns over the trade war. The “Mad Money” host also discusses Robinhood’s impact on the investing landscape. Later, he discusses the impact of tariffs with the CEO of Zappos and gives his thoughts on the stock of FedEx.
Why the stock market has continued to rally
Traders work on the floor at the New York Stock Exchange.
Brendan McDermid | Reuters
CNBC’s Jim Cramer on Tuesday explained why it is happening, starting with the fact retailers haven’t been as hurt by tariffs in the U.S.-China trade dispute as expected.
That is representative of the broader environment, Cramer said, in which there are more positives than negatives.
“The big guys in retail are doing just fine. Walmart, Target, Amazon, Costco simply haven’t felt the pain,” the “Mad Money” host said, adding that while the tariffs have hurt some retailers, the “sky is falling narrative” hasn’t materialized.
Robinhood has changed the investing landscape forever
In this photo illustration a Robinhood Markets logo seen displayed on a smartphone.
Rafael Henrique | SOPA Images | LightRocket via Getty Images
By bringing a new generation of younger investors into the stock market and accelerating the race to zero-commission trading, Robinhood’s impact on investing will be forever, Cramer said.
In particular, it has appealed to millennials who have interest in purchasing individual stocks, he said, arguing Robinhood changed the game like E-Trade did 37 years ago.
“What matters, though, is that Robinhood’s zero commissions model has finally caught the fancy of a whole new generation of investors,” Cramer said. “And they did it without spending much on advertising at all.”
Zappos CEO says trade war tariffs haven’t impacted pricing yet
Source: Zappos | Facebook
Tariffs from the U.S.-China trade war haven’t yet put pressure on Zappos’ pricing, CEO Tony Hsieh told Cramer.
While Cramer noted that a lot of shoes are made in China, Hsieh said on “Mad Money” that, “for us we haven’t seen it affect our pricing yet, so too early to tell.”
Hsieh’s comments on the impact of the tariffs — or lack thereof — are the latest indication from business executives that President Donald Trump’s long-running trade talks with China are not impacting American consumers as significantly as some expected.
Cramer’s lightning round
: “We recommend that people take a little bit off the table because man, bulls make money, bears make money and hogs.”
: “I’ve got to tell you, I think it’s too cheap. It’s not [necessarily going to go up] because they’ve got China problems. But I like FedEx. FedEx kind of feels like the Eagles to me.”