While the market continued to roar higher on Tuesday, Jim Cramer couldn't ignore the cracks starting to appear in the Trump rally, especially for defense stocks.
"Don't get me wrong, I still think the president-elect has a very pro-business agenda, it's just more pro-some-business than others, and the list of those others seems to keep growing," the "Mad Money" host said.
Donald Trump's tweet that claimed the cost of Air Force One that Boeing is building to be more than $4 billion caught Cramer's attention on Tuesday and what it could mean for risk in defense stocks. While the $4 billion figure was unconfirmed, the real issue for Cramer was suasion, or what President Theodore Roosevelt called "bully pulpit."
United Technologies CEO Greg Hayes told Cramer on Monday that there was no quid pro quo in the deal for Carrier with Trump. However, Hayes made it clear that he was cognizant of his company's $6 billion in defense contracts that could be put at risk. Now it is Boeing's turn.
"Just like United Technologies, getting on the next President's bad side could be a serious problem for Boeing," Cramer said.
Boeing has $18 billion in contracts with the Defense Department, which is approximately 20 percent of its business. While Trump didn't say or do anything to suggest those contracts were threatened, Cramer was confident that Boeing got the message.
Maybe Boeing will roll back the price of the plane, or maybe this debacle amounts to nothing.
"Either way, it is a brand new risk you need to be aware of if you own the defense stocks," Cramer said.
Companies that do business with the government — like United Technologies or Boeing — need to be prepared to pay a price, Cramer said. However, Cramer thinks it is unlikely that Trump will take away the order for Air Force One because the only other company that can build a wide-body jet like Air Force One is European Airbus.
Either way, Trump is sending a message that these companies will pay a price, and that price is a better deal on a plane, tank or jet engine.
"To me, that says maybe we shouldn't be paying as much for the defense contractors. Their stocks are red hot. I know they represent great value," Cramer said.
Even if Cramer is reading too much into a simple tweet, it is clear that there is more risk than he thought initially, he said.
On the flipside, if Trump potentially sends tweets like this from the Oval Office, Cramer thinks investors should be paying more of a premium for the classic growth stocks that don't need or want government
"It's a brave new world. We have to be careful not to pay too much for those manufacturers that rely on the Federal teat. By maybe we should pay more for those that don't," Cramer said.