U.S stocks edged lower Friday as investors debated the impact of a China Evergrande default and more companies cautioned on supply-chain disruptions to holiday sales and earnings.
Jim Cramer and TheStreet Senior Portfolio Analyst Jeff Marks talked about what the Beijing crackdown on crypto means for bitcoin investors. And they discussed Nike’s tepid outlook and earnings that missed expectations.
Crypto in China: ‘Illegal Activities’
The People’s Bank of China issued a blanket ban on cryptocurrency trading Friday, declaring all forms of digital transactions and financing to be “illegal activities.”
Prices of bitcoin and ethereum fell sharply. Shares of crypto exchange Coinbase Global (COIN) also traded lower.
“The crypto bulls are missing the point. … “A lot of people have been hiding their money in bitcoin,” Cramer said. The government is “now saying, basically, you’re going to be reeducated if you put your money in bitcoin.
“It is not because they are against the currency. It’s because they want total control over you and don’t want your money hidden.” Bitcoin fanatics don’t understand this “because they believe that the Chinese communist government is not tyrannical, it’s not fascist,” he added.
Nike: Supply-Chain Disruption?
Nike (NKE) – Get NIKE, Inc. (NKE) Report shares traded lower after the athletic-apparel giant cut its full-year sales forecast and warned of delays over the holiday season. The company missed first-quarter revenue forecasts, owing to supply-chain disruptions in Asia.
Cramer said supply-chain disruption can’t explain the slower growth of sales in China. He said the Chinese government “doesn’t seem to want any outward show of wealth. And $200 shoes means outward show of wealth. … I think the Chinese government is attacking Asians and I don’t like it,” he added.
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Read More: Stock Market Today With Jim Cramer: China’s Crypto Clampdown