Market Overview

Cramer To Trump: Listen To Home Depot CFO's Comments On Trade

Share:
Cramer To Trump: Listen To Home Depot CFO's Comments On Trade

Home improvement retailer Home Depot Inc (NYSE: HD) could be seen as the "perfect microcosm for the U.S. economy," and the Trump administration should be paying close attention to what its executives have said, CNBC's Jim Cramer said during Tuesday's "Mad Money."

What Happened

Home Depot CFO Carol Tomé said during the company's second-quarter earnings conference call Tuesday that consumer confidence is "near record high levels." Yet if the Sino-American trade war continues, it could impact consumer demand for Home Depot's products, the CFO said — and accordingly, the company felt it prudent to lower its full-year sales growth outlook from 3.3% to 2.3%.

Tomé's comments make it clear the U.S. is winning the trade war and Home Depot is actively lowering its exposure to Chinese-made goods, Cramer said. But the time to close a trade deal with China is now, or Tomé's warnings could become a reality, he said. 

"I hope the president takes this opportunity to make a deal while the Chinese are feeling the pain from our tariffs, but before we're getting the full impact on our side of the aisle." 

Why It's Important

Cramer said he fully supports Trump's stance against China, "but the last thing any president wants is a trade war-related recession as we head into an election year."

The administration needs to act swiftly and take advantage of the fact that China needs a trade deal right now "more than we do," the CNBC host said. 

What's Next

Home Depot CEO Craig Menear quantified the financial impact of tariffs on Chinese goods at around 2% of U.S. sales, or $2 billion, according to CNBC.

The stock was trading higher by 0.78% at $218.83 at the time of publication Wednesday. 

Related Links:

Home Depot Trades Higher On Q2 Earnings Beat

Home Depot CFO Explains How It Services Millennials

Photo by John Phelan via Wikimedia

Posted-In: Carol Tome CNBC home improvementEarnings News Politics Media General Best of Benzinga

 

Related Articles (HD)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Mid-Morning Market Update: Markets Open Higher; Target Beats Q2 Estimates

Another Clean Energy ETF Hits The Market