Is it Friday yet?

Jim Cramer broke down why markets are finally pricing in the impact of a trade war with China, as Wall Street turns increasingly negative on Real Money Stock of the Day Tesla (TSLA - Get Report) and digests earnings from L Brands (LB - Get Report) , Best Buy (BBY - Get Report) and looks ahead to Foot Locker (FL - Get Report) earnings before Friday's opening bell. 

Welcome to the Next Cold War? 

Wall Street has finally come to the realization that trade conflicts with China are here to stay. On Thursday, Treasury Secretary Steven Mnuchin told the House Financial Services Committee that there are no scheduled talks with high level officials in Beijing, adding that President Donald Trump will likely speak to China's President Xi at the upcoming G-20 summit. 

With no end of trade tensions in site, Wall Street opened sharply lower with the major indices down over a percent in early trading. Cramer said that markets are finally weighing which stocks have been impacted by China and which have further to fall, with the S&P weighing everything down. "If you haven't left China yet, the president is gunning for you," Cramer said. 

Cramer said that at that this point, the $300 billion of additional threatened tariffs on Chinese goods is likely to happen. "Behind the scenes, President Trump is saying 'Listen up knuckleheads, how much do I have to tell you to get out of China," Cramer added. 

If nothing else, Cramer suggested investors seriously look at how exposed their portfolios are to China, as most investors might be more exposed than they realize. 

Related. Jim Cramer: Wait for Trade and Infrastructure News to Hit Prices

Hitting the Brakes on Tesla

The Tesla bears continue to be out in full force Thursday with the stock hanging below $200 as Wall Street increasingly questions if China will be yet another problem for the automaker. Cramer said the there is a bizarre dynamic developing in the Real Money Stock of the Day with a constant fumbling between the bulls and bears. "The stock is a football," Cramer said. 

Cramer wants to hear what you have to say about Tesla. Tweet him @JimCramer.  

Related. Wall Street Cuts Targets as Tesla Stock's Bear Case Builds

Retail Watch Continues

Jim broke down what investors should take away from earnings out of L Brands and Best Buy and discusses whether Foot Locker can follow in the retailers' footsteps when it reports Friday morning. 

Cramer thinks Foot Locker is going to be OK despite some tariff concerns. "I have seen the light about how sneakers can be like Rothko paintings," Cramer said. 

To hear what Jim exclusively told members of his Action Alerts PLUS investing club, take advantage of Jim's Memorial Day Sale.

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