Jim Cramer says the economy is much worse than stocks indicate

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June 21, 2019 2:19pm NYSE:SPY

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From Jessica Bursztynsky:

KEY POINTS

  • CNBC’s Jim Cramer says he expects most companies to post weaker earnings than they did last quarter.
  • “I literally do not have a company that is having a better quarter,” Cramer says.
  • But against that backdrop, the Dow opened less than 1% away from its record close. The S&P 500 on Thursday closed at an all-time high.

Companies are having a much harder time during the ongoing U.S.-Chinatrade war than the stock market shows, CNBC’s Jim Cramer said Friday.

“The real world is much worse than the stock market indicates,” Cramer said on “Squawk Box. ”

Out of the dozens of company executives he’s spoken with, the “Mad Money ” host said that not one of them has indicated they’re expecting a stronger quarter since trade tensions between the U.S. and China have escalated.

“I literally do not have a company that is having a better quarter,” Cramer said.

Companies across the retail, lending, materials and housing markets have noted increasing pressure from Washington and Beijing placing billions of dollars worth of punitive tariffs on each others’ imports.

However, the stock market has been posting strong gains in the past week.

On Friday, the Dow Jones Industrial Average opened less than 1% away from its record close. The S&P 500 on Thursday closed at an all-time high.

“I would rather say the stock market is wrong than I would say the real economy is wrong,” Cramer said.

Heading into next week, investors will be closely watching the meeting of President Donald Trump and Chinese President Xi Jinping at the G-20 summit in Japan. The two leaders are expected to reengage on trade talks under the threat of even more levies.


The SPDR S&P 500 ETF Trust (SPY) was trading at $294.45 per share on Friday afternoon, up $0.02 (+0.01%). Year-to-date, SPY has gained 10.78%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 154 ETFs in the Large Cap Blend ETFs category.


This article is brought to you courtesy of CNBC.


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