Jim Cramer Cautions Against Investing In Norfolk Southern

CNBC's Jim Cramer said investors should exercise caution before buying transport stocks such as Norfolk Southern Corp. NSC.

"Beware! The transport stocks have been 'horrendous,' and it has really got a lot of people down about the market," Cramer said on CNBC's "Stop Trading."

Cramer's comments come after CLSA said shares of Norfolk Southern should benefit as coal volumes are unlikely to get much lower after 2016. Notably, they are negative on railroad stocks except for Norfolk Southern.

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However, Cramer added that the transport stocks have a direct correlation with strong dollar. The U.S. dollar is up after the Fed signaled a rate hike in June, and Cramer said it is bad for commerce.

"They (transport) just go down every time we get a strong dollar."

Shares of Norfolk Southern were down 1.67 percent to $84.08 at time of writing.