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Live from the Internet's red carpet, it's.
Jim Cramer (0:02)
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Jim Cramer (1:01)
My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. MAV Money starts now. Hey, I'm Kramer. Welcome to MAV Money. Welcome to Kramerica. Make friends. I'm just trying to save you a little money. My job is not just entertain, but to educate, to teach you. So call me at 1-800-743- CNBC. Tweet me. Jim Cramer. You know why this market really is so crazy? It's because we can't keep up with the velocity of events. That's what's going on. We aren't able to process things as fast as President Trump throws them at us, which is how you can get an insane day like today, where we opened up huge and then everything rolled over. Dow finishing off 220 points, S&P tumbling 1.57%. Nasdaq nosedive 2.15%. It was a truly nauseating session, frankly, one that shows you that there's still way too much complacency, even after all the turmoil we've had. We just can't seem to get used to the new President Trump, the one who doesn't seem to care about the stock market at all. Case in point, when China announced a 34% retaliatory tariff, President Trump almost immediately Said, well, that's it. He's going to stock China with another 50% tariff. That brings the total tariff to 104%. Now that is gigantic. You might as well just ban imports from China entirely. Last night the market went out better than some started started thinking possible. And some investors therefore breathed a sigh of relief. Others though, couldn't resist taking up the S&P 500 futures by a full percent after the market closed. Do you know that by 3am they were up almost 2%? I was like, oh my God, I got to go back to sleep. And then when the actual market opened, well, we saw 4% gains and we said, oh, maybe we're okay. But I said to myself, why are we up? Do we think the Chinese are going to blink? Say what you will about the People's Republic of China, they have got a lot more experience taking pain than we do. They are seasoned pain takers. And you know what's going to happen tomorrow? We're going to have a freezing of commerce between two great powers. Even as the White House continues to say that the country with the biggest surplus is the most vulnerable. I don't know about you, but as someone who follows stocks, I think we're both mighty vulnerable because of this trade shutdown. Sure, we import a lot of junk from China. Yes, we buy a lot of stuff we don't actually need from them. A lot of it ends up in landfills. Waste management. But they're a gigantic trading partner of ours. And however a bad actor China might be, the 50% tariff addition done out of sheer peak doesn't seem all that well thought out. Maybe ill advised. No business can afford to eat 104% tariff, which means they have to pass on to their customers, which is about too many, about to make many things a lot more expensive, which means that things freeze up and then we figure out who pays what. The stock market's not ready for that stuff sitting on the dock as we saw this afternoon. So what the heck was the market doing up 4% earlier today? 1 word. It was emotion. We've had relentless declines for what feels like ages. We've had nine straight day days where we opened lower. That's highly unusual. I think that because we finished yesterday well off the lows of the day. It was like someone said, hey, the coast is clear, but the coast is based on facts. And right now the facts, well, they're just not so hot. Just because we're able to recover from big Dow opening doesn't mean we should therefore rally the next day. That's just silliness. Of course, the rally didn't last. So what happens here? Why did the market go down so badly after not building? All right, let's deal with something that you learn after years and years of trading. Markets that open up big after days of declines almost never hold up. You don't get a rally unless it opens down and then goes up. See, there are too many people who bought stock yesterday morning when the market was down 4%. They were up so huge at the opening today, they just had to ring the register. It was just. It was like a moth to the flame. Who wants to risk losing that game? With the China tariffs on the horizon, you can't expect anybody who bought at that Monday low to hold on to stock knowing that the Chinese are digging their heels for tomorrow. So what happens now? All right, we got a classic case of two trends clashing with each other. I'm going to go into the first one. There's the short term. And I think the short term, frankly, looks awful unless someone blinks. And, I don't know, maybe you saw someone looks like they're going to blink. I didn't sure there would be a lot of merchandise stuck in Chinese factories and ports. While that's certainly bad for them, it's not really good for us. Just because they lose doesn't mean we win. Plus, these tariffs are total anathema to one of the biggest companies in the world, and that company is Apple. Now, not all of Apple's merchandise is made in China, but a lot of it is. And you're now looking at a 23% decline in four days for the stock of one of the greatest companies on earth. The President was well aware that this could be a problem for Apple, which had committed to more than $500 billion investment United States. I know some investors probably thought that that $500 billion might have somehow bought Apple some immunity. But the only immunity you get from this White House is if you pick up your manufacturing in another country and you plop it down in the United States. And you know what? That's actually an unrealistic goal. It can't be done. I don't know how many times I can say that, but you can't build dozens of factories in the United States since election day and have them fully staffed. Pumping out iPhones doesn't look like that. Even in the best case scenario. It would take a long, long time. And this is not the best case scenario. Doesn't matter. The changes that necessitate moving are happening anyway. Apple Makes the best, most beloved product we have. Now its stock is being eviscerated because President Trump won and Vice President Harris lost. Was Apple's Tim Cook supposed to know that? And why did Apple stock trade up to $190, say, before finishing way down 172? That's almost an unfathomable range for this huge capitalization stock. But this kind of thing keeps happening because we can't process events correctly at this kind of speed. We're not used to it. President Trump's overriding events with new events, and then stocks just aren't even ready for it. Too many times I had to ask people, what is the new tariff rate? I mean, it was kind of like Weimar Germany. How much is the market worth right now? Now, it's not just tech. If you take a look at the drug stocks today, I mean, that's a good example. They're a horror show. These aren't supposed to do anything. One of the best. Abbey. Open higher. Okay. After a slew of reports that came out from Goldman Sachs, made you pretty real good about the group. If you bought the stock when it was up, well, guess what? You got your head handed to you. Abbvie's good company. It's not a wild trader, not at all. But it was today. For no reason. Trump turbocharges everything. Sure, he makes it exciting, but you see, it also happens to be about money, and that's a bummer. Now, second, when the market came down this much, we typically reach a bottom not far from here. And that makes people feel. And bold makes people feel better. That's been the case 85% of the time. Oh, that's a statistic that gives us comfort, but you can't take it to the bank. Or to put it another way, the long term looks okay, but the short term, well, we don't know how to deal with it because it's just too swift. So what does a market end up doing after these experiences, these kinds of gyrations? You know what it does? It makes a judgment about what's driving things down. You always say certainty, uncertainty. That's just nonsense. No, there are things that actually drive things down. The market doesn't just crave certainty. And I'll tell you what it is. It's becoming really obvious to people. The tariffs are driving things down. And the tariffs are being run out of the White House with no checks or balances whatsoever from Congress. It kind of feels unconstitutional, but it doesn't matter. We got a whole new Constitution, too. I Guess things are just plain capricious. And we can't factor this level of arbitrary adjustment into stock prices even if we know that a year from now we might be okay. Hey, great. Look, when you eviscerate the stock of one of the largest companies in the world and offer no path to the company whatsoever, yet the stock opens up big anyway, huh? That's a market that's just plain stupid. Sadly, that's this market. Bottom line, this market just keeps getting overridden by events, all driven by the White House. Investors won't feel confident again until the pace slows and there's more thought to the actions taken. Call today a vote of confidence in the morning and no confidence in the afternoon. But only one of them matters, the latter one. Hey, how about we start with Scott in Indiana? Scott, hey.