Why Jim Cramer Thinks the Coronavirus Is a 'Temporary Headwind'

Publish date:
Video Duration:

If you've been doing your homework, as Jim Cramer suggests, then you'd start seeing the word 'coronavirus' pop up a lot.

Just Tuesday night, we heard from Nike and Disney  (DIS) - Get Report, who both weighed in on how the coronavirus is impacting them. 

 Nike  (NKE) - Get Report said Tuesday it expects the effects of the ongoing coronavirus outbreak to have a “material impact” on its operations in China.

The company said about half of its stores in China have been closed temporarily. Its remaining stores in China are operating at reduced hours and seeing “lower than planned retail traffic,” the company said in a statement.

"In the short term, we expect the situation to have a material impact on our operations in Greater China. However, NIKE’s brand and business momentum with the Chinese consumer remains strong," the company said in the statement.

And Disney, which has closed its parks in Hong Kong and Shanghai, said that the closures could cost them nearly $175 million. 

"As a matter of fact, you have stocks that it doesn't even, it's just a glancing blow. Nike was down a buck and a half on the news and then it comes right back. Disney down a little, down three and then comes right back. So, people are just asterisking it, saying that it's a temporary headwind," said Cramer. 

Catch up on the Latest Videos on TheStreet!