Although global growth is great for the likes of 3M Co. (MMM) , Illinois Tool Works Inc. (ITW) , Honeywell International Inc. (HON) and Emerson Electric Co. (EMR) , a trade war with China sure wouldn't be, said Jim Cramer during the June Action Alerts PLUS members' call.
"We have lots of industrials that do well when there is worldwide growth albeit we will be hurt with 3M, Illinois Tool Works, Emerson and Honeywell if we have a knockdown drag out with China," Cramer said.
Cramer noted that he's not counting on a trade war with China to actually come to fruition; however, he said he would be more certain such a conflict could be avoided if National Economic Council Director Larry Kudlow were "by the president's side helping him understand how world trade can benefit the U.S. not just China." Kudlow was release from the hospital Wednesday after suffering a heart attack Monday night.
Despite the notion of a tussle with China, Cramer said Honeywell and Emerson "had very good quarters and no longer come in on down days." He noted that Honeywell has become less cyclical and ought to gain from an upcoming breakup.
Illinois Tool Works and 3M have struggled of late as automobile manufacturing limps along. "However, both companies have said repeatedly in the last four weeks things have gotten better in autos, which is why we have been urging you to buy their stocks," Cramer said. "I trust both companies."
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