2 stocks that won in last year's trade war may benefit from new tariff threats
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks fell sharply and bond yields spiked higher on Tuesday after President Donald Trump announced over the weekend that he will put 10% tariffs, beginning Feb. 1, on a bunch of European Union nations that oppose his plan to purchase Greenland, an autonomous territory of the Kingdom of Denmark. Trump said those tariffs will escalate to 25% on June 1. Some volatility was needed to work off the stock market’s overbought condition, but many believed the Trump administration left the idea of new tariffs behind in 2025. The S & P 500 and Nasdaq on Tuesday dropped roughly 2% each. The big test over the next few days will be whether global leaders work together to forge a path toward de-escalation, or if the harsh rhetoric ratchets up even further. After making numerous sales last week to raise cash when the market was overbought, we nibbled on Alphabet shares earlier in the session just in case this issue is resolved promptly. If it were to drag on, last week’s cash raise provides us with a buffer against continued volatility and opportunism. Boeingscored more orders for its 787 Dreamliner wide-body long-haul aircraft. Boeing announced on Tuesday that Ethiopian Airlines ordered nine more jets. The deal is in addition to the airline’s commitment for 11 MAXs, which was first announced at the Dubai Air Show back in November. Despite the U.S. stock market volatility on Tuesday, Club stock Boeing held up relatively well — moving only slightly lower in afternoon trading. It made a new 52-week high earlier in the session. With tariffs back in the picture, at least for now, we’re wondering if the market thinks a path to de-escalation could once again be large purchases of U.S.-made goods, including Boeing planes. GE Vernova was another trade deal beneficiary last year. Shares of the natural gas turbine manufacturer were only slightly lower after rallying 6% on Friday in response to the Trump administration pushing the electric grid operator PJM Interconnection to hold an emergency power auction, which included more than $15 billion in new power generation projects. Up next for earnings are Netflix , Interactive Brokers , and United Airlines reporting after Tuesday’s closing bell. Before Wednesday’s opening bell, we will hear from Johnson & Johnson , Halliburton , Charles Schwab , and Travelers . Wednesday is a fairly quiet day on the economic calendar, with only mortgage applications, October construction spending, and December pending home sales due out. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
