Retail stocks rise because ‘Amazon can’t destroy everybody’

Retail stocks rise because ‘Amazon can’t destroy everybody’

Retail stocks are trading higher because investors have realized the “death star” known as Amazon “can’t destroy everybody,” CNBC’s Jim Cramer said.

The SPDR S&P Retail ETF (XRT), an exchange-traded fund that tracks the performance of retail stocks in the S&P 500, was more than 2 percent higher Friday. The ETF is on pace for its best day since July 25 and is up 3.58 percent this week.

Retailers, including Foot Locker and Gap, rose on better-than-expected quarterly earnings.

“A lot of the retailers are bouncing today because Amazon can’t destroy everybody,” Cramer said on “Squawk Box” on Friday. Cramer later questioned on “Squawk on the Street” whether retail was really dead based on earnings results.

Gap shares, mentioned by Cramer, were around 6 percent higher Friday after the clothing retailer beat expectations across the board, including same-store sales.

“You get this number, you have to ask yourself: Is retail really dead?” Cramer said. “(Gap) is a mall-based retailer to a large extent and they’re putting up good numbers.”

“Some companies are a little less dead” than others, the host of CNBC’s “Mad Money” added. “It’s not as final. …The death star cannot destroy everyone. Some of them have force fields right now.”

Cramer also said that UPS and FedEx are good buys. Investors worried last month about reports that Amazon is experimenting with a new delivery service. “I would be buying FedEx with both hands here,” Cramer said.

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