Jim Cramer lays out the inflation versus deflation debate
"I want to wrestle with the inflation versus deflation debate by looking at what's happening with individual companies and their stocks," the "Mad Money" host said. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6
In order to understand the current inflation debate, investors should take a close look at corporate earnings reports, CNBC’s Jim Cramer said Tuesday.
“We’ve got a serious supply chain snag that’s pushing up prices all over the place,” Cramer said. “But if the free market can correct itself ... then I think productivity increases will be able to trump price increases, which will allow the Federal Reserve to keep holding interest rates low and allow stocks to go higher.”
Some market participants expect higher prices to continue in a state of hyperinflation, while other contrarians like Ark Invest’s Cathie Wood believe prices will fall.
“I want to wrestle with the inflation versus deflation debate by looking at what’s happening with individual companies and their stocks,” the “Mad Money” host said.
Cramer pointed to 3M’s quarterly results. The manufacturing conglomerate on Tuesday beat Wall Street earnings expectations soundly, but 3M shares closed the session little changed. The company said high raw material costs are pressuring profit.
“Today, some huge companies reported and they made me feel less confident in Cathie Wood’s vision of a deflationary future, because so many of them told us that rising raw costs are putting pressure on their ability to make money,” Cramer said.
Meanwhile, United Parcel Service earnings “told a story of deflation,” according to the host. UPS beat on top and bottom lines and the stock rallied about 7%.
″United Parcel’s gains came down to higher productivity, which helps keep costs lower,” Cramer said.
The “Mad Money” host said there’s still more to learn from companies before market participants can understand the inflationary environment.
“Going forward, we need more stories like UPS and fewer stories sounding like 3M. By the end of this brutal week, I bet you we’ll know the score,” Cramer said.
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
https://www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV
Видео Jim Cramer lays out the inflation versus deflation debate канала CNBC Television
In order to understand the current inflation debate, investors should take a close look at corporate earnings reports, CNBC’s Jim Cramer said Tuesday.
“We’ve got a serious supply chain snag that’s pushing up prices all over the place,” Cramer said. “But if the free market can correct itself ... then I think productivity increases will be able to trump price increases, which will allow the Federal Reserve to keep holding interest rates low and allow stocks to go higher.”
Some market participants expect higher prices to continue in a state of hyperinflation, while other contrarians like Ark Invest’s Cathie Wood believe prices will fall.
“I want to wrestle with the inflation versus deflation debate by looking at what’s happening with individual companies and their stocks,” the “Mad Money” host said.
Cramer pointed to 3M’s quarterly results. The manufacturing conglomerate on Tuesday beat Wall Street earnings expectations soundly, but 3M shares closed the session little changed. The company said high raw material costs are pressuring profit.
“Today, some huge companies reported and they made me feel less confident in Cathie Wood’s vision of a deflationary future, because so many of them told us that rising raw costs are putting pressure on their ability to make money,” Cramer said.
Meanwhile, United Parcel Service earnings “told a story of deflation,” according to the host. UPS beat on top and bottom lines and the stock rallied about 7%.
″United Parcel’s gains came down to higher productivity, which helps keep costs lower,” Cramer said.
The “Mad Money” host said there’s still more to learn from companies before market participants can understand the inflationary environment.
“Going forward, we need more stories like UPS and fewer stories sounding like 3M. By the end of this brutal week, I bet you we’ll know the score,” Cramer said.
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
https://www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV
Видео Jim Cramer lays out the inflation versus deflation debate канала CNBC Television
Показать
Комментарии отсутствуют
Информация о видео
Другие видео канала
Final Trades: Freeport-McMoran, Qualcomm, Caterpillar and StarbucksEV makers turn to leasing to increase demand, says Barclays' Dan LevyOpening Bell, November 4, 2022Stone: Keep dancing with the stocks that brought you hereBreaking down shares of Hilton, Expedia and Match GroupWells Fargo's Darrell Cronk: Expect a 'bumpier' second half of the yearInvestors 'going to have to wait awhile' for extra push from rate cut: Wells Fargo's SchumacherBaird: Adobe's report is proof it's all about expectationsLockheed Martin sees record order volume in 2022 as earnings beat estimatesGreenwich Wealth's Vahan Janjigian: Can't give my clients too much exposure to one stockThe linchpin of the economy when it comes to inlation is the home, says Jim CramerCramer’s Stop Trading: ZscalerWe are focused on our organic roadmap, says Box CEOChart of the Day: AdobeClean Start: This clean-tech startup transforms carbon emissions into vodkaAmazon Prime Video drives down ad prices for competitors in the latest price warThree-Stock Lunch: Adobe, Caterpillar& HasbroFinal Trades: Nvidia, Abbvie, ConocoPhillips and Vertex PharmaCocoa crisis: Protecting market shareExpect a monumental upgrade cycle for iPhones, says Jim CramerFed's Powell: We don't see ourselves as having the confidence that would warrant loosening policy