Dutyfree. Sounds a lot like falling stock prices, doesnt it the averages started strong. But after the news broke the dow ended up plunging 281 points s p plummeted. 90 , the nasdaq fell 1 . One fell swoop, President Trump has given the hard liners exactly what they want if you import goods from china, hes making you pay, no exceptions that includes the iphone no wonder apples stock reversed it went from up big to just, well, ugly because its the most visible importer suddenly everything either they need to eat the tariffs or they need to make their phones even more expensive relative to samsung, which does its manufacturing in south korea can you imagine, the outcome of this is that samsung is the winner but apple is one example out of many i used it because its so in your face. The president figures hes given American Companies enough time to get out of china, roughly a year and a half sins aluminum and steel and change sourcing. Thats up to them. The reaction was so negative the yield on the benchmark ten year treasury broke down below 2 that is a sign Bond Investors fear were heading into a recession. No ifs, ands or buts the president made it clear hes had enough of china and our economy is Strong Enough and our stock markt is high enough we can handle the escalation to what is definitely you cant say anything otherwise its not as trade tiff, it is a full blown tariff war. And i get where theyre coming from tariffs are bad for the consumer and obviously the chinese need to retaliate we have to wait and see what they do. If youre a highranking member of the communist party, you cant just give trump what he wants here, some big agricultural purchases and crackdown on illegal fentanyl. No, you would make them look weak they dee spies looking weak. Its a paramount concern i told you all along this trade war would keep escalating. While there are two camps in the white house, the hawks and the doves, after last years failed tet a tet in buenos aires, when the chinese walked away from what looked like a done deal, the hard liners made it clear they werent going to tolerate any more back sliding on the part of the chinese. Boo sure, trump gave the doves a real chance here there was a ceasefire when he met with president xi at the g20 conference, but that was a delayed reaction the treasury secretary mnuchin had one last window to come back with something, anything, that would show china is willing to deal in good faith when mnuchin came back emptyhanded, President Trump made his move and slammed the window shut. Now, the thing i was most concerned about for the reason to sell stocks, a blanket tariff on all chinese goods with no exceptions including apple the sock was soaring before it hit. I have to tell you, its the real deal, people. Its the real deal i was surprised the averages werent down even more again, from the very beginning, despite the endless Mainstream Press commentary thats been wrong otherwise, ive told you the hard liners would win out. I figured the free traders in the white house would give one more stab at a deal. When that failed, there would be more tariffs its why ive been warning you endlessly about the last 300 billion of chinese imports for months the only thing i got wrong was the timing and even there i was pretty close. I thought it was going to happen this weekend thats why i repeatedly told you the trade war was the major obstacle to higher stock prices and why i felt that, just say fed chief powell was right when he made that cut yesterday he had an inkling. He had a feel like i had the feel i want to give my perspective because im up to my eyes on this stuff i absolutely favor anything that can help level the Playing Field with china they have been breaking the rules for decades. They are pernicious. Ive told you over and over again that the hard liners would win. The free trade faction simply didnt understand how angry the president felt when china came through with purchases they promised or fentanyl crackdown which the president knows is killing many, Many Americans i think the administration is betting china will blink they may be tempted to hold out until after the election, but thats a crap shoot now. President biden will probably give them a better deal. The president will crackdown even harder than trump, they see that hes not going to be thrilled the chinese made him wait. Look, these new tariffs are just the tip of the iceberg, people if china doesnt deal, then i have a pretty good feel trump used the 10 duty as nothing more than an opening volley in the next round of the trade wars hes itching to take all the tariffs to 25 he is doing that, at which point he thinks the chinese will realize their economy cant take this kind of pain theyll need to play ball. Remember, trump smells blood he believes the chinese economy is weaker than ours. Hes right and right and he doesnt mind pushing their economy and stock market over the edge what i am hearing over and over again, its better to take tariffs high and bring them down than to not have tariffs at all. What does it mean for you . If you have stocks with some huge gains, i am giving you my blessing because the market wasnt down that badly, to take a little off the table not a lot. This is not that call, the giant sell call. If i see that in twitter i will come after you with everything i have we are barely down we havent seen the chinese response yet i have to believe it will be swift. The stocks will go lower and youll be glad you sold a little theres no reason to be hurt here you have to wait and see what happens. Thats why i think its too soon to sell domestic stocks with zero exposure to china after the smoke clears, companies with medium size business could be worth buying look at the sell you have a lot of gains im not going to give you a list not going to give you a list because this is a lot in the s p 500 thats too high after this second, the ten year going below 2 is your green light to buy Safe Dividends my same three have been the same for years and years. Its still not too late to own those. Once you take profits again, once you take profits and i sanction taking profits, theres no reason to start buying immediately. These tariffs are game changing. They make it year President Trump is not going to stop hell press and press and press because he is furious at china and he thinks the trade war is a Winning Campaign strategy. See, he wants the trade war going into the election. These tariffs will hurt you and me, we can take the pain we need to but you must recognize that the pain is going to extend your portfolio. Unfortunately, this makes it hard to justify buying the usual suspects that would new york l circle the wagons around in an economic downturn in a recession. That means magnificent Procter Gamble reported a great quarter. Normally i would say buy, buy, buy. They do too much business in the prc. Might be a natural target for retaliation. J. Powell, our clever fed chief, had great intuition about these tariffs. Can you imagine how bad today would have been if powell hadnt can you tell us that quarter point break . Plus hes got a lot more ammo. Dont listen to people who say he doesnt theyre wrong. I think after an initial stumble powell is doing a great job. The president and others say hes not a great communicator, give him a break the time to hit him is when he was wrong, not when hes right i believe the president was right to crackdown on china. Ive been making the argument for decades. I used to say the same thing when i worked with larry kudlow who was a great free trader back then hes now the president s chief Economic Advisor on a show we had kudlow and cramer. I recognized how china targeted and destroyed so Many American industries ive been passionate about it for decades. However, i have always accepted this kind of move would hurt the stock market at least in the short run. Im not for higher stock markets. Im not that craven. Theres no hurry to start picking among the rubble here. Were in a world where International Companies will be forced to cut their forecast heres the thing as Interest Rates go down the alternatives for the stock market get less and lessen ticing ill have two gold stocks i think you should buy later in the show without much chinese exposure will be the winners once the smoke clears as they were the last two rounds of tariffs thats one first bottom line, we just have to wait until the dust settles, please, then you can start buying some highquality companies at a discount that dont have chinese exposure and you will definitely get a discount, i believe, because its too hard for individual stocks to escape the downward pull of the s p 500 when estimates have to come down for so many different industrials. Carmen in connecticut, carmen caller hi, jim thank you so much for taking my call thank you caller i really am in trouble with the stock i bought 5 below, and in doing my research, it said that they were opening 4500 new brick and Mortar Stores in the u. S. And the earnings seemed good earlier this year, and i bought it now its been going down really big time the last month or so. I dont know if its a question of the tariff. It seems to me it might be something more that ive missed, so if you could help me, i dont know if i should sell it certainly well, we sold it for action alerts plus we told members this is going to be hurt by tariffs if there are more tariffs it will get hurt. The next wing of tariffs, the next round do hurt them. Theyre going to have i think a lot of merchandise that is going to have to be charged more than 5 bucks, wigs their m. O. So my take is its not too late to sell. You can revisit it lower it is a great region national. Brian in new york, brian caller booyah, jim, sunny long island. Im doing well today im doing well, how about you . Caller awesome, uawesome. I appreciate what you do for us little guys. I have a twopart question for you on bank of america okay. Caller where do you feel the price of this stock is going to be, lets say in the next three months we all know about the fed dropping the, you know, the Interest Rate a quarter of a percent. We dont know if theyre going to drop more or not, you know, the stock has been like in this 29 range and its not going anywhere it was about to go 31. My second part is why in the world did bank of america drop so much today after trumps announcement of adding 10 additional tariffs on china, meanwhile bank of america is here in the here we go, im going to tell you whats going on here when people think that a recession is coming, they sell banks that have credit issues. Thats what they do. They look at the bond market the hedge funds look at the bond market then they sell the international banks, which bank of america is, and you know what they do, they buy the Financial Technology stocks i have a couple later on im going to recommend that is a. M. Ti thats time honored, what they do, they follow the play book. Dave in kansas, dave caller jim cramer, booyah. Ive been a fan for a long time. Youre very kind. Thank you. Caller i wanted your take on fico, i picked it up for 91 bucks and its beat since then, up 300 . Everyone knows their fico credit score, i havent heard you mention it they had a blow up quarter 300 now its north of 10 billion dave, youre right. I have not done enough on fair isaac. It is a quintessential tech company. Its a company i like very much. Thats why its bad. If i didnt like it, then its beyond a saleable that id be bad. I like this company very much. You cant get them all, you cant. All right. Okay, its been a brutal couple of days. For now i want you to wait until the dust settles if you want to, you can raise some cash with some of the high flyers we did some for action alerts club members i cant tell you otherwise on mad money tonight, it was a tough day for the average, but one stock that can offer your portfolio some stability in an unstable market. It works in this environment the c. E. O. Of American Tower, wow, thats a good business. Then are Interest Rates signalling a recession is around the corner im going to give you my take. A company for protection and treatment of Breast Cancer and ovarian and many others. Dont miss my exclusive with the c. E. O. Of whole logic. I want you to stay with cramer announcer dont miss a second of mad money. Follow at jim cramer on twitter. Have a question . Tweet cramer mad tweets send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc miss setngomhi head to madmoney. Cnbc. Com. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. You know me. As i say all the time after these little days, i fall back to the sector growth story doesnt end with a trade war im talking about the sell tower stocks, the group thats getting a fabulous boost from tell coe carriers worldwide roll out 5g wireless requires a lot more infrastructure take American Tower, amt, the largest player in the space. Theyre all organized as Real Estate Investment trusts or reits with nice dividends. This one yields 1. 7 it doesnt pay out a lot its been such a winner. I love this industry because once you put up a tower you can sell Antenna Space it brings in funds from operations, a buck 90. Higher than expected revenue, up 6 the margins are so great that translates to a 38 increase in profits. The stock rallied 4 since i recommended it in may, i recommend it over and over again, up 34 year to date can it keep climbing lets talk to the chair, president and c. E. O. Of American Tower. Weve been behind him the whole way. Find out more about the quarter. Welcome back to mad money. Great to see you, sir. Great to see you, jim when your stock was more than 10 where it is, you came on and doled us about the great story people need to know. A lot of doubters, but you beat every syringe l one of theingle. Even though it says American Tower, its really international tower. Unbelievable growth overseas its a global business. Theres two things that are truly global in nature one is the technology. The physics for radio frequency spectrum, its transmission are the same all around the world. And people is the other thing thats the same all around the world. They want to do three things as much as they can communicate with each other, send data back and forth, book airline tickets, send emails, et cetera, and finally get entertained if they can. Tv, social media, et cetera. And the mobile industry is enabling that all around the world. One of the things that when people say, jim, africa is a growth continent i wouldnt buy this african stock or that i always say buy American Tower because they also, when they do a deal, its backed up immediately theres no real risk associated with it. Even some of our countries we get dollar denominated contracts along the way. We also demand high internal rate of return so well, you know, really bargain hard on the asset pricing to get the right basis so we can get the return we need you told us, people who havent heard you, a lot of these countries skipped over wire line and theyre wireless countries. Absolutely. India is well on its way to doing this youve probably heard of Prime Minister modis Digital Initiative where he really wants to bypass the entire wired phase of those three things, communication, data transmission, and entertainment. And there are four very Competitive Companies in that market now big enough to do that with a capital to do it and were working with them right now. The internal rate of return, again, you really researched this over a long period of time. United states, we start saying something you have said the whole time, which is consolidation is not only bad, but in this particular case, the advancement of dish into this where they have to build out big, i know its influx, you didnt spend too much time talking about it, but United States with this new regime could be very good for you it could be very, very good for our company. But i think its very, very good for the country also potentially because what this agreement between the justice department, sprint tmobile and dish has done, we think, is to position the United States for true leadership and accelerate that leadership for 5g. At the same time, they brought in a disruptive new player in dish who is going to benefit the consumer all along the way so i think its really a great combination for the country. Its going to be excellent for our company as well. But its a Good Initiative all around, we think i would imagine one of the first calls dish has to make is to you because they dont have any of the space that they need well, we have been well in touch with charlie and his team for years because theyve owned and operated wireless spectrum they had to have their licenses preserved. They deployed for that theyre in the middle of Internet Things deployment theyre actually going to segue into a full 5g depl