American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
Jim Cramer can always tell when Wall Street enters the heart of earnings season, because investors will tend to shoot first and ask questions later when they've gotten it all wrong.
"This market is littered with these mistakes," the "Mad Money " host said.
When Cramer first entered this industry, it was a much different ballgame. Journalists did not have as much of a rush to break earnings stories, in an attempt to match companies' reported sales and earnings numbers with consensus estimates.
Cramer explained that these days, multiple wire services will try to get ahead of the competition by scanning numbers in the release and then matching them against predetermined cheat-sheets to see if sales and earnings are better or worse than expected.
Once the comparison has been done, the journalist will then attempt to derive a reason from the release to try to explain why things might have been better or worse. Then, it's on to the next story.
This process happens all the time. But since this week is the biggest week of earnings announcements for the entire quarter, Cramer warned investors to be careful.
"People end up losing fortunes trading off of these slipshod bulletins that purport to describe what happened in a given quarter," Cramer said.
One example of headline confusion was when Hasbro reported on Monday. The toy company reported, and the vast majority of media outlets determined it was a terrific quarter for both sales and earnings. At first glance, it made sense to Cramer, given that the stock was up 30 percent for the year.
Despite the headlines, Hasbro's stock opened up pretty much unchanged. So, if it had a grand slam for earnings, why weren't the numbers up big?
It turns out that when the company conducted its conference call, things were not going that well at Hasbro. Chief Finance Officer Deborah Thomas utilized suboptimal language when she explained that gains in a number of older franchises such as Nerf, Play-Doh and Monopoly were offset by declines in brands such as Transformers, Furby, My Little Pony and Littlest Pet Shop.
This made Cramer nervous, as many investors have bought Hasbro stock over the years because of strength in its Transformers and My Little Pony franchises.
As a result Hasbro's stock was pummeled on Monday, down more than 7 percent.
Then there was Netflix, as many skeptics believe that its best domestic growth days could be over. Yet, somehow it clawed its way back up almost 3 percent on Monday. Some find management's story blaming credit card expirations for the weakness in the U.S. to be credible.
Read more from Mad Money with Jim Cramer
"The main takeaway is that you simply cannot possibly make an informed judgment until you find out what the heck is really going on at a company," Cramer said. (Tweet this)
That means investors need to listen to all of the commentary from management about a current quarter and its forecast for the future. Usually, that occurs a third of the way into the conference call, right before the Q&A session.
So, while there are always outliers to every situation, Cramer has seen incorrect news flow for various mega-capitalization stocks out there. He reminded everyone that it is rolling the dice to take action on a stock based on headlines — and gambling is not a sound investment strategy.