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Cramer Remix: Boeing's rally is a 'terrific sign' that China fears are overblown

CNBC logo CNBC 6/7/2018 Elizabeth Gurdus

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Since the Trump administration began to consider placing tariffs on Chinese goods, shares of aircraft manufacturer Boeing, which sells heavily into China, have been falling.

But when CNBC's Jim Cramer saw shares of the aerospace giant soar over 3 percent on Wednesday, he took it as a sign that China tensions may not weigh as heavily on Boeing's earnings as Wall Street thinks.

"Ever since the president decided to get tough on trade, the stock of Boeing has been trading like it's about to lose a big order from Chairman Mao Airlines," the "Mad Money" host said.

Shares of Boeing, which said it planned to sell $1 trillion worth of aircraft to China over the next two decades, were especially hurt by China's April tariffs on 106 U.S. products. The move was viewed as a retaliation to President Trump's proposed list of tariffs on Chinese goods.

Trade talks with the People's Republic have gotten more complicated of late, however. On Sunday, China warned that any trade deals made with U.S. negotiators may "not take effect" if Donald Trump enacts additional tariffs. On Monday, reports indicated that negotiations seemed to stall.

Still, Boeing's Wednesday rally served to improve the outlook for the company, indicating to investors that its strength was not tied solely to its business in China, Cramer said.

"Given that Boeing is a quintessential industrial and our biggest exporter, what can I say? [This] is a terrific sign," he told viewers, noting that Boeing's CEO, Dennis Muilenburg, has been "demonstrably quiet" about China.

"Let me say something: there are literally a dozen airline purchasers who would love to get in the queue if China drops out, and that's despite the recent declines in the airline stocks because of [a] 50 percent increase in the price of fuel," the "Mad Money" host added.

Shares of Boeing closed Wednesday's trading session at $371.56, 4 cents away from its 52-week high of $371.60. On Monday, the aerospace giant announced a joint venture with French engine manufacturer Safran to build and service key components in commercial aircraft.

Millennials aren’t swaying the market as much as you think

Surprise! Millennials are not the be-all, end-all for the stock market, CNBC's Jim Cramer declared.

"Just because millennials love it, doesn't mean you should buy it," the "Mad Money" host said. "In the last year, for example, I've heard this from CEOs of cruise lines, timeshare companies, recreational vehicle plays and budget hotels. They all say millennials make up a shocking percentage of their business."

Read more from Jim Cramer and other top money experts

But CEOs recognizing that millennials make up notable parts of their customer bases do not good stocks make, Cramer warned.

If high fuel costs weigh on the cruise lines, or the cost of making RVs rises, or hotel traffic subsides because of rising gas prices, these millennial plays could enter the house of pain, he said.

"Long story short: as we've seen over and over again, having a surprising number of millennial customers is nice, but if your business starts having problems, it won't save your stock from getting trounced," he told viewers.

Qualcomm CEO talks Broadcom, NXP and Apple

Uncertainty around whether Broadcom could buy Qualcomm — an event that would have been the largest technology takeover ever — wasn't the only thing weighing on negotiations, Qualcomm's CEO told CNBC on Wednesday.

"I think it was a situation where there were some questions about deal certainty, which clearly became the case, but I think it's also a case where it's very difficult to buy a company using a hostile [bid]," Qualcomm CEO Steven Mollenkopf told Cramer.

The deal, which valued shares of Qualcomm around $80, was blocked by President Donald Trump, who cited national security concerns, according to a White House statement.

But Broadcom's fighting tactics also gave Qualcomm's top brass pause, Mollenkopf said.

For more on his interview, in which he addressed Qualcomm's attempted merger with NXP Semiconductor and its dispute with Apple, click here.

Camping World Holdings CEO on "rookie mistakes"

Camping World Holdings CEO Marcus Lemonis admitted on Wednesday that he's "made some rookie mistakes" as the CEO of a public company.

"There's a big transition from being private and I would say that I've really learned," he told Cramer in an interview, adding that "the biggest learning curve" was how to communicate his corporate strategy to the public market.

One recent misunderstanding revolved around Camping World's recent acquisition of Gander Mountain, a hunting, fishing and camping equipment retailer.

"I think what happened was people originally thought that we bought Gander Mountain to get into the big-box retail business," Lemonis said. "[That's] false."

Is the Goose loose?

Shares of Canada Goose have run 176 percent since its initial public offering in March 2017, and Cramer was "prepared to look like a moron" if it meant saving investors from potential declines.

"Given how the market reacted to the company's last quarter, you have to be a little concerned that Canada Goose could report a great number and the stock could still get slammed" after its upcoming earnings report, he warned.

"The stock's up 40 percent year-to-date. That's a recipe for disappointment come earnings," Cramer added.

The "Mad Money" host especially cautioned investors about buying shares of Canada Goose ahead of the summer, when sales of the retailer's ubiquitous winter coats will likely slump.

"Here's the bottom line: if you own Canada Goose here, I suggest taking profits on at least some of your position," he said. "I've loved this stock all the way up, but after a 176 percent rally, only a madman would tell you to let it ride."

Lightning round: Steel your portfolio with the best of breed

AK Steel Holding Corporation: "You know, it is not primary. It is not my one. I like Nucor, up another dollar today. I think it's much better. My charitable trust owns that one; pay up, pay up and pay up."

Switch, Inc.: "The stock has been a house of pain. And, you know, in retrospect, CoreSite is better because I like a little bit of yield. This is data center management. It's been a tough stock. I'm going to have to look into why the heck that thing keeps going down. That doesn't seem right to me, down 30 percent."

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