The escalating trade war with China sent stocks lower from the get-go on Friday, and they remain deep in the red.
Jim Cramer: Trump Really Believes in Standing Up to China
TheStreet's Jim Cramer says, "I think that people believe that the president will be 'rational' with trade, meaning there will be an accommodation that makes things go more smoothly and the tariffs are put off."
"But the president thinks that's anything but rational," Cramer points out, "Listen to the wording of what he says on trade. He doesn't per se call out the Chinese for taking advantage of our open borders and sending in goods to the point where we have a huge trade imbalance."
"What he does say is that our previous leaders have allowed it to happen and he's breaking ranks with them because they were oblivious to the ongoing one-sided trade war where we didn't bother to put up our dukes."
Walgreens Presents the Best Bargain in a Decade
"CVS Health Corp. (CVS - Get Report) and Walgreens Boots Alliance (WBA - Get Report) are the clear leaders in the drugstore industry. Yet many people are worried about President Trump's policies regarding health care cost restraint, which has poisoned the mood toward the shares of these proven growth companies," says Real Money Pro columnist Paul Price.
"It is very unlikely that their business models will be gutted," Price adds, "Managements of both companies are positioning their businesses for the future, whatever might unfold. Today's column will delve into WBA."
Etsy is a Reminder That Amazon Doesn't Crush Everyone it Targets
Real Money columnist Eric Jhonsa writes that "Not every company that has been in the path of Hurricane Bezos ends up getting torn to shreds."
"The 26% gain posted by Etsy (ETSY - Get Report) on Thursday is a pretty good reminder of this. The vintage/craft goods marketplace's surge comes after it announced it's hiking its transaction fee to 5% from 3.5%, and that the fee will now also apply to shipping costs. Thanks in large part to the fee hike, Etsy has hiked its 2018 revenue growth guidance to a range of 32% to 34% from a prior range of 22% to 24%," Jhonsa notes.
"Etsy, now up about 500% from its early-2016 lows, has also unveiled plans to launch a pair of subscription services -- Etsy Plus and Etsy Premium -- for active sellers."
"Needless to say, it's unlikely a marketplace that was having its lunch eaten by Amazon (AMZN - Get Report) would carry out a fee hike that large, even if (as Etsy is eager to note) its fees are still less than what Amazon and eBay (EBAY - Get Report) charge for similar transactions. Nor would it offer such strong sales and GMS guidance," Jhonsa observes, "Etsy is hardly the only smaller/more focused tech company to have weathered a direct attack by Amazon fairly well."
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