The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
Drone strikes attacked an oil processing facility at Abqaiq and the nearby Khurais oil field on Saturday.Marketsread more
Trump said oil would be released if needed to keep the market well supplied and he would expedite the approval of pipelines in Texas and other states.Marketsread more
Saudi Aramco is aiming to restore by Monday about a third of its crude output that was disrupted after drone attacks on two key oil facilities, The Wall Street Journal...Marketsread more
Apple's new iPhones can still send texts, download apps, and make video calls, but the company spends a lot of time and effort marketing its new phones as powerful photography...Technologyread more
Some U.S. manufacturers say tariffs, if targeted, will help address longstanding unfair trade practices like intellectual property theft.Traderead more
Supporters of a $15 minimum wage ballot initiative in Florida argue the state's inflation-tied pay hikes have not gone far enough.2020 Electionsread more
Saudi Arabia shut down half its oil production Saturday after drone strikes hit the world's largest oil processing facility in an attack claimed by Yemen's Houthi rebels.Politicsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
For shareholders, there is nothing worse than competition, and less of it breeds opportunity. Jim Cramer believes the reduction of competition defined the winners of the tape on Wednesday.
"There is just enough competition among companies to keep their stock in check, but when the competition lessens, companies are instantly rewarded with stocks that rally, making it worthwhile to stick around to see what group will be the next one to soar," the "Mad Money" host said.
The airlines soared for much of 2014 after various mergers left just a few of the big players. Once those mergers took place and route overlaps were eliminated, airlines could finally raise prices.
But in 2015, airlines not only added a lot of planes, but also they tried to take advantage of higher prices by competing with one another. Relentless price cutting and lower earnings per share followed.
"This group has been a house of pain ever since, because no airline would stop adding new capacity lest some other company take advantage of the opportunity," Cramer said.
That pain stopped on Wednesday, when Southwest Airlines announced it would reduce the rate of capacity increases to 4 percent, from 5 to 6 percent. It doesn't mean the company is shrinking capacity. But Cramer interpreted it to mean that estimates for next year's earnings may be too negative. The news shifted the whole group, with shares of Southwest, American and Delta rallying.
Companies that make basic data storage devices that allow information to be kept in personal computers, specifically DRAM and flash semiconductors, may also have less competition. Western Digital announced it would have sharply better-than-expected earnings.
Cramer attributed that to better gross margins at Sandisk, the recently acquired maker of flash memory chips. Supply in the flash industry is thus constrained because many companies have given up making the chips because of competition, and prices could go higher.
On the flipside, Sprouts Farmers Market demonstrated what can happen with too much competition. Sprouts is a natural and organic supermarket that was at one time expected to take market share from Whole Foods. Yet, on Wednesday, the company confirmed it would have flat same-store sales.
"A tremendous growth story with flat same-store sales is actually a no-growth story, with shareholders fleeing as if Sprouts sells nothing but Spam and Velveeta," Cramer said.
"One of the reasons why this market hasn't been beaten to a pulp is that almost daily we hear a story of supply taken out of lessened competition," Cramer said.
At the same time, there are also stories of price wars or reduced gross margins in order to defend market share. That is the main reason, Cramer said, why the market seems to do nothing when indices like the transports rally.