Jim Cramer Calls United Parcel Service Stock's Plunge "Frightening"

United Parcel Service, Inc. (NYSE:UPS) is one of the stocks Jim Cramer recently talked about. During the episode, Cramer called the company’s recent quarter “dismal.” He commented:

“Consider the following from Carol Tomé, CEO of United Parcel Service, after reporting a dismal quarter: ‘Despite uncertainties around trade policies in the second quarter, the overall economy remained resilient.’ Hold just a second, here we go, ’But our sector, specifically the US small package segment, was unfavorably impacted by US consumer sentiment that was at historic lows.’ Wow, very bad. Historic. A win for the president in this tiff with the Fed. It gets worse. ‘On the commercial side of the economy, manufacturing activity in the United States remains soft.’

Average daily unit volume declined by 7%. Now, I know that UPS had its problems. Its profitability’s been hurt by the labor agreement the company reached two years ago. Its pivot to cut dependence on Amazon traffic hurt. But Big Brown is a huge company that controls a major chunk of American shipping. So when its stock plunges more than 10%, I regard that as frightening. Not only did UPS present plenty of evidence of a weakening consumer, it also documented how the tariffs are already beginning to hurt consumer sentiment and consumer spending.

Now, it kind of took my breath away when CEO Tomé pointed to some very strong business between lots of countries that did not include the United States. It was among the first quarters where I heard the damages being done to American commerce by our tariffs, damage that’s not being replicated in country-to-country business that are not impacted by new tariffs.”

United Parcel Service (NYSE:UPS) provides package delivery and logistics solutions, including express and time-definite shipping, freight forwarding, and customs brokerage. The company also offers specialized services for e-commerce, healthcare, and international trade.

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Disclosure: None. This article is originally published at Insider Monkey.