Cramer Remix: Apple's vulnerability under Trump

Apple’s vulnerability under Trump

As the market digested the news of a Donald Trump win and the Dow rally extended to six days, Jim Cramer said investors are now starting to realize there's another negative side to the story.

"I smell a trade war. That is what I think this market has become all about," the "Mad Money" host said.

Stocks initially rallied last week from the prospects of tax cuts and infrastructure and defense spending.

On Monday, however, investors finally realized that President-elect Trump could crack down on trading partners who take advantage of the U.S. market without opening theirs, Cramer said. They are starting to see what it could mean if Trump does more than just talk tough about imports and dumping.

Apple shares declined more than 2 percent on Monday, revealing the company's vulnerability to a Trump regime.

"Trump has stated repeatedly that Apple should make more products here. Apple might be caught between the proverbial rock and a hard place ... I know the Chinese picked the wrong day to single out Apple," Cramer said.

A ship is unloaded in Miami, Florida.
Carlo Allegri | Reuters

Harman International Industries CEO Dinesh Paliwal told Cramer on Monday that he is thrilled that Samsung Electronics is acquiring the company for $8 billion.

"Frankly when we see that the integration of these two companies, when we put it together, this is really dynamite because it's so complimentary," Paliwal said.

Shares of Harman skyrocketed 25 percent on the news that Samsung is acquiring the company for $112 per share, a nearly 28 percent premium over where it traded on Friday. It signaled a major push for Samsung into auto-related technology.

Moving forward, Paliwal added that he plans to double down in cybersecurity. He believes that the threat has now extended into individuals homes, cars and personal devices.

Cyberark Software's CEO Udi Mokady echoed the same sentiment to Cramer on Monday, stating that anything connected to the internet can be hacked.

Cyberark is the Israeli cybersecurity company that helps companies to protect administrator and privileged accounts. These are the accounts frequently targeted by hackers with the aim of getting the "keys to the kingdom."

Mokady commented on the changing landscape of the cybersecurity industry.

"I think in the last couple of years we have seen a change. It's called the post-breach proactive security measure," Mokady said. "We are coming in ahead of time to help secure against these advanced attacks, but we are seeing that the modern day customer is thinking 'OK we will be breached, let's make sure it's contained.'"

Dinesh Paliwal, Harman International CEO
Ashlee Espinal | CNBC

Bank stocks have also rebounded since the presidential election. Cramer noted that all of the signals were there for investors to buy the banks, starting when JPMorgan CEO Jamie Dimon purchased 500,000 shares in the open market for $26.6 million on Feb. 11.

With JPMorgan closing at $79 on Monday, those shares are worth nearly $40 million.

"Maybe Dimon was lucky. Maybe he's just good. Either way, he's obviously still optimistic about JPMorgan, or else he would have taken up Trump on his offer to be Treasury secretary," Cramer said.

After years of outperformance, the stock of CVS Health suffered a 10-point straight decline last week, leading Jim Cramer to wonder if it is a broken company or merely a broken stock.

"CVS has gone from a market darling to a total dog, as its once-vaunted pharmacy benefit manager business has become an albatross around its neck and the company loses share to its rivals," Cramer said.

Shares of CVS tripled from the summer of 2011 to the summer of 2015, but then fell into free-fall. They closed at $76 on Monday. The business includes both its 7,800 retail pharmacies, and its pharmacy benefit manager (PBM) segments.

"Maybe they can turn things around, but for now, CVS remains in the penalty box until we see them take concrete steps to lessen their dependence on what was once the golden goose, now just a turkey headed for a carving," Cramer said.

In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

American Tower: "There was a piece out today that Sprint might merge with T-Mobile and everybody decided to dump on American Tower. My thinking is when you get this kind of a move, you've got to wait until tomorrow mid-day because there are so many sellers out there."

AmSurg Corp: "This group is under pressure. Everything is so in flux in healthcare because of the new President that we just have to be on the sidelines. It's tough, because it looks so inexpensive. But sidelines is where we have to be."