Two economies are currently involved and "currently out of sync," based on Wall Street's recent results, said Jim Cramer of CNBC.
The American consumer is still strong According to the results released by the banks, the CSX railway company tells a different story.
CSX shares fell more than 10% in the session after the transport giant missed its earnings per share and revenue in the second quarter. The company now expects sales to decline by as much as 2% in 2019, after initially forecasting growth of up to 2%. This prompted CEO James Foote to call the economy "one of the most puzzling in my career."
Negative results in a railroad tend to affect the rest of the industry, Cramer said. Union Pacific shares fell 6% and Norfolk Southern fell more than 7%. The former reports earnings Thursday and the latter announces next week.
The Dow Jones Transportation Average, which represents the US transportation sector, fell more than 3.5%, its worse session this year. According to a quick update of CNBC / Moody's Analytics GDP forecasts, economists expect average economic growth of 1
According to Foote of CSX, many clients continue to show growth on weakness.
For the bulls expecting the Federal Reserve to lower interest rates this summer, Cramer hopes that Chairman Jerome Powell will focus on the CSX conference call rather than the statements of the banks.
"We need Fed chairman Jay Powell to hear CSX's big bad phone conference, "said Mad Money's moderator." At the same time we must ask him to ignore the conference calls, like the outstanding ones we have Bank of America today told shareholders that second-quarter earnings were up 8% year-on-year, totaling $ 7.3 billion, provided by the retail bank Bank employees such as Bank of America CFO Paul Donofrio rely on a cut in the key interest rate – currently 2.25% to 2.5% – L 74 cents per share, exceeding 71 cents.
Interesting net interest, which was a major contributor to profits.
Retail sales increased 0.4% last month, as economists forecasted 0.1%. "If you believe that Bank of America, J.P. Morgan and Citigroup – and why not – consumers are right," said Cramer. "On the basis of developments in the consumer economy, one could easily argue for further interest rate hikes."
The major US indices lost for the second straight day, with the Dow Jones Industrial Average and Nasdaq Composite down more than 0.4%. The S & P 500 was the worst day in three weeks, down 0.65%.
"I can not imagine another time … when the consumer was in such good shape while the industrialists were in such great trouble," Cramer said. "Usually one strengthens the other or vice versa, but unfortunately that does not seem to happen right now."
WATCH: Cramer rates earnings
Disclosure: Cramer's charitable trust owns JP Morgan and Citigroup.
Questions to Cramer?
Call Cramer: 1-800-743-CNBC
Want to get a deep insight into Cramer's world? Hit him up!
– Jim Cramer Twitter – Facebook – Instagram
Questions, Comments, Suggestions for the website "Mad Money"? firstname.lastname@example.org