Jim Cramer: Will the Techs Be Challenged, Too?

 | Mar 12, 2018 | 8:17 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

jnj

,

bmy

,

nxpi

The power of Friday's rally tells you two things: 

-  Is that housing and autos just don't seem to matter as they barely participated.

-  This is a Nasdaq affair with some industrials sprinkled in.

The rally had all the trappings of the kind of move that inspires lots of buying. We did see some leadership from Johnson & Johnson (JNJ) . I saw follow up in Bristol Myers (BMY) and some of the packaged goods stocks.

But I think the lack of participation in the industrials, the indecisive nature of the group tells me that there are more tariffs coming and they are going to come on fast.

The question is will the techs be challenged, too?

I keep thinking about two things, the first is the theft of intellectual property that hasn't yet been addressed by the administration and, second, is the hold up over the NXP (NXPI) deal by the Chinese regulatory authorities.

I think that we got through the gauntlet just fine last week with the tariff signing and the employment number but that too many people at the end of the week seemed to be smug enough to believe that somehow the pressure is off and that this is all about a couple of old industries.

That's a mistake. The theft of intellectual property can be challenged by a Section 301 challenge directly from the trade representative and I think the Chinese are going to come under this section quickly.

Why is this so negative? We know that tech's been the leader by far. We know that the President probably feels emboldened to roll on this. We know that the "defense" gambit seems to have worked.

To me that means that tech could be next. Not now. Not this week. But soon.

Columnist Conversations

Facebook had outstanding earnings and looks to continue upward, while HD is a strong breakout on volume and Ak...
Stock picking contests can be entertaining and can provide some interesting ideas but if you seriously want to...
Your Reality Check. Check out Real Money's Helene Meisler's latest podcast here. Subscribe to Meisler's T...
XBTUSD (Bitcoin) On 4/25 Bitcoin top ticked @ 9755.52 and then FELL. Our first short term support @ 8990 was...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.