Transcripts For CNBC Mad Money 20240714

Season just step away from the roulette wheel because if you try to trade around the quarterly reports, you are going to get singed, if not burned after a record day, where the dow gained 27 points hallelujah s p climbed 2 , nasdaq inched up 0. 17 . That was easy earnings season is devastating for traders. No if you want to invest in a stock before reports and buy things if the stock gets hit thats another thing but trading no thanks. I didnt always feel this way. My Old Hedge Fund i used to place heavy bets on what would happen before it happened. I had as much legal information as i could get my hands on and always thought i had an opportunity to make a good call ahead of time but that was before regulation fd when the government leveled the playing field. When i was running you could meet with execs with small Interest Groups other people didnt want access or privy to that is illegal. These days everyone has access to the same information at the same time. I think thats fabulous. No one should be able to get better intelligence because theyre well connected, better connected than you it does mean you cant game every season like the pros in the 1990s. You have no edge after i retire from a hedge fund i started running a charitible trust and we only invest its a trust, for heavens sake. We cant quick flip. We try make considerate decisions based on available facts like i advise you to do at home we look at the research what wall street is saying and if it looks like the consensus is wrong, weve had some good ones for the show, stocks like chipotle, honeywell, amd, just to name the recent winners but its a fraught process and i know it. We have whiffed on footlockers how about kohls how poorly we did . They thought too much, its below where i thought i liked it he didnt believe anadarko was as bad as it was we got bailed out by a bidding war. You cant count on luck to rescue you from your bad decisions. So with that in mind, let me give you some timehonored rules to help you handle earnings season, now that it is just kicking in first you need to understand there are 12 weeks a year with a flood of information, earnings season, so much information that you simply cant do a decent job of analyzing companies on the fly. I always tell my wife, lisa, make no plans for earnings season we even had to wait on our honeymoon because of earnings season it wasnt as bad for Business Trading and block of alcoa while my daughter was born or Trading Union carbide options the day my mother died. In the words of joey brown, nobodys perfect it is not as important as your kids or marriage thank heavens im learning perspective in older age and ashamed what i did, and look, this season only comes about once every three months, okay . Do you mind, doing, i mean there are four quarters, and you got to worry about it all four quarters but when its over, you can breathe again so you got these three weeks period time, for 12 weeks that are dangerous and require your undivided attention if youre going to play this game rather than invest, which brings us to rule two. You need to listen to the Conference Calls before you make any decisions. Too often when a Company Reports the headlines are written by machines the company says it boosts forecasts in the release, the headline hits the tape and you get bamboozele ebamboozled quicy we got a more positive from the company that mitigated the headline and the stock zoomed. Well thats really valuable. I cant tell you how many times ive seen jpmorgan, boeing, caterpillar, 334rm, oracle, trae up, trade back down, good headline, bad story. If you had an itchy trigger finger on every one of these youd be obliterated the quarter announced was the High Water Mark for the year, that happened on a caterpillar call the stock still hasnt recovered. If you dont want to take the time to listen to the call, heres an idea, stop listening to me. Buy an index fund. I cant count in this investing in individual stocks unless youre willing to put in the time, do the homework. Rule three consider where a stock has come from we know the bank stocks are red hot going in earnings, right thats terrible. Great expectations set the stage for great disappointments. The banks rally because the governments blessed their aggressive discipline. In the world of net interest margins, efficiency ratios, loss ratios, how trade something doing, how Investment Bank something doing and thats how citigroup can report a truly terrific quarter but because its stock ran up so much in anticipation, people didnt care they didnt care what mike corbett had to say this stock ended up in the red by the same token, if the stock is down beigoing into the quartr that can create a terrific opportunity. I think the stock will be worth owning, why, because i expect a terrific quarter from unh and the managed Care Companies heat from washington has died down. The ceo i dont think will be so emotional and start attacking the system that was illadvised and the president made a major policy shift in dpafavor of the managed Care Companies against the drugs. J. J reports tomorrow. Its down big because of worries about price controls on drugs that would be disastrous for the cohort butstock gets hit again on a monster good quarter, that could be your opportunity. Rule four dont be afraid to go against the grain on the stocks of terrific Companies Like some of them that im going to outline later in the show. If you stick with this show, last week i told you that because pepsico had are uninto the quarter, there would be skeptical analysts trying to knock it down. After trading at 134 and change in premarket, up more than 1, pepsi plunged slightly under 131 after the call. I told you to buy it hand over fist, and now it is back above where it reported becausethere was nothing wrong with pepsico, nothing nice gain. Finally, rule number five, never forget that we live in a time where the s p 500 can play havoc with any stock i got into the business 40 years ago, what mattered most was the companys earnings and then the sector was in and the market as i whole. These days things reversed the market is a whole is more important and sector etfs are more important please understand its a total blessing, what we want so many people will buy the stock of the company ahead of the quarter and get gobs back by big events the stock for the quarter at 87 because the business is good, youre down almost 7 because the president favored managed Care Companies over Drug Companies. So understand the frailty of the process, even if youre on the company itself, you could be dead wrong on the market or the sector the bottom line, i do not want you to be discouraged. Earnings season is always rough, which as i prefer, bat on the shoulder, as my philosophy, being defensive. Defensive hitting first, maybe we get hit by a pitch or maybe youll get walked but the important thing is that you shouldnt try to hit home runs this week because youre much more likely to end up striking out. Bill in virginia, bill caller jim, thank you for all you do for the home gamers thank you caller and thank you for answering my tweets. Thats exactly ooh, thats good i do answer peoples tweets. I follow my own twitter. That is anonymous, it would be me whats up . Caller down 8 from where i bought it, im only down 4 thanks to your rule on buying on the way down with talk of them taking over usaas Wealth Management division, if Charles Schwab reports a miss, should i call should i call uncle, hold or buy more no, i think Charles Schwab is most remarkable asset gatherer of our time. It is very undervalued and i tell you that if it comes down buy, buy, buy [ dog barking thats what happens when you use a bat, take it off your shoulder i like it, this could be my long time friend dave from illinois dave caller thank you so much, jim. My pleasure caller the quad Software Company has not been singled out as one of your preferred cloud kings nor is an heir to the throne, perhaps because the company serves a niche market the Life Sciences industry im talking about viva systems up over 100 yeartodate, perhaps enough to justify its rich forward pe ratio of 75 times, this Cloud Service provider is a standout for me, so jim, my good man friend, are you a believer in the veerer not only am a believer, dave, in veeva but i screwed ive had peter ghastro on the show a number of times every time he delivered far better than expected earnings. Ive given only lip service to veeva. Buy, buy, buy dave fromily voice, veeva is a win all right, i want you to do this unless you got total conviction, heres where your bat should rest during earnings season. Home runs are harder to come by. I just dont want you to get discouraged. Four times a year, but dont obliterate things at home because of it. Leave that to me we have a royal one on set, he deserves your attention, vmware, im sitting down with the cloud king and see whats ahead for the company. And bringing you in the minds of big Money Managers, which stocks will be anointed for the rest of the year, and cnbcs own Carl Quintanilla will talk about americas growing but controversial ecigarette addiction. Maybe theyre great guys, all theyre doing is killing you softly ha, ha, ha, sorry. Stay with cramer driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. No matter what you trade, at fidelity mno kidding. Rd. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. One of my favorite guests, sanjay putin is in the house when most of the cloud stocks are going strong i want to circle back to the one thats been a lager, cramer fave vmware, the company that pioneered the Virtualization Software that makes data so powerful letting a single server run multiple virtual machines. Vmware exposure to networking, systems the cloud, however when cut rate reported six weeks ago the results were incredibly strong, management didnt raise guidance this was a 200 stock through the end of may but last week it pulled back to 161. Recent sessions showed sign of life 172. Is it time to buy the cloud king that is cheaper than i thought it would be . Can he get his groove back sanjay is vmwares chief operating officer of Customer Operations mr. Putin, welcome back. Sanjay, have a seat. Pleasure to be back with you. Clear things up, Morgan Stanley piece. First quarter 20 results, macro uncertainty keeps a lid on the fiscal year. Jpmorgan vmware acknowledges uncertainties in the macro to me it seems youre being conservative this was a monster good quarter, maybe the best of the cloud kings. We had a great quarter and you have to put the Bigger Picture in perspective i think were in the golden age of software, where software is defining everything. The companies in general are doing well what we have done as a company is focused on making the Data Center Software driven and we think theres a Bright Future there. We showed examples of that in hyperconverge and Software Defined networking we showed incredible momentum with our partnerships in the hybrid cloud amazon is first and perfectrefed there. We announced a partnership with azure. We think our future is bright and we have to keep executing, our view is always the long run. What im hearing is just because one of your partners dell may not have had that great a quarter we shouldnt read through that for vmware. That may be a mistaking correlation. Its misconception we should nip in the bud vmware business with dell in these areas like hyperconversion weve surpassed other companies in infrastructure and the digital work space, were partnering with the laptops, going very well. We want dell and vmware to do well together. In the data center we work with dell, hpe, cisco, lenovo we work with aws, azure, google, in the digital work space we work with apple, google and microsoft. In the software future, were not tethered to one company per we optimized for dell, not tethered the data center, the cloud, or the digital work space tough times and good times i may have spoken last but i was talking to Major Department stores, retailers and they said look, people are leaving amazon because they dont want to compete, send money to their partner, amazon who is really their opponent when it comes to brick and mortar i shouldnt think of it as enemy of amazon, that its much more complex and maybe advantageous for Many Companies including retailers. You should think about applications from mobile homes, moving from the data center to the cloud on the freeway called vmware the mobile home could go to one cloud, come back vmware allows the data center to act like a public cloud. We make the hardware data center look like amazon if you are Amazon Customer and they have 30, 35 market share number one in the market they are preferred top partner we can help customers and we have many customers we talked about that are adopting the vmware cloud in aws. For the customers who said were not an amazon shop, we quoted walmart in our announcement using azure. They have an option because we announced a partnership with azure. There are some customers that have other clouds. Aws will be first and preferred forev for us, we want every customer that has vmware, azure, alibaba, google, aws, all embraced vmware that answers the second question, too dependent on amazon, clearly not and we dont mind having a great relationship with amazon. Red hat merged with ibm last week i was concerned about the impact on vmware. They were actually surprisingly quite positive about vmware because red hat seems to like you. Listen, ibm is a great partner of vmware. We love their services business. Ibm cloud has 2,000 plus customers so were going to partner really well with the team we compete with a small part of red hats business in containers but 80 of red hats business is l linux, open chat, shift and j boss is not doing well but the future of containers is a small part of the business we can walk and chew gum we can partner with ibm and compete with the small part of red hat. We want a big tent in vmware, compete with as few people as possible i love that, you are a man of your word. Where are we with chai that . Do i ha china you can tell me jim, things are not where we want them to be first off, we have to abide by the laws of the land, so if the u. S. Federal Government Asks us that were not supposed to do business with Certain Companies well abide by that. Okay. We have certain Chinese Companies that depend on us and we have a Good Business that employs there and hope over the longterm the trade issues resolve themselves for right now were not seeing that impact our business and we want to see ourselves software is less immune to the hardware as it relates to china. You are always an inspiration to our viewers this weekend on twitter you tweeted and i retweeted because it was so good about ten ways to create a customercentric culture. I think that we forgot in many ways younger people are thinking how do i serve my firm how do i serve myself . They dont know how to serve the customer tell us something about what they should be reading and knowing . Listen, i definitely love to have everyone read that blog pretty good first off, you want to serve your customers well, start by serving your employees one of my professors at Harvard Business school Len Schlessinger wrote an article on Service Profit Chain you want to create shareholder value, focus on satisfied employees. Hug your stars, take care of the best and brightest who come in there and the second is something i think all of us can do and you do very well on your show make your story sesame street simple yes i see product managers and account executives blabbering on with powerpoints lets tell the story like youre telling the story to your mother or to your kids. Yes, i used to tell my mom about all the stocks, and listen, its a Grocery Store go feel the lettuce. Exactly when we make this, ironically, when you make things simple, youre going back to some of the basic principles of steven covey, seven habits of highly effective people, its not that comply indicated have customer empathy. Okay, that is Sanjay Poonen i told you hes an inspiration i am putting my money where my mouth is i think i have to buy the stock after our restrictions, thats how good this sounds thank you so much. Stick with cramer. Tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. When i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. Let give the bears their tu for a second if the economy is really slowing down, then what does work best here last week i told to you watch pepsico. What other stocks should be put on your Shopping List that could be rallied in the face of the worldwide weakness that all the bears are predicting hey, you come to the right place. First estee lauder, run by one of the smartest executives ive ever met, formerly of Procter Gamble taken the brand and turned it into the most beloved makeup business on earth because we all live in the selfie generation where everyone has to look good any time they step outside. Estee lauder is in the catbird seat i like the fact he created a reverse mentoring system every so often the young people mentor the old timers to catch them up on the latest and greatest for the millenials. The company has a fantastic Chinese Business get this, its only gotten better during the trade tensions is there another company on earth that can possibly say that i dont think so second slowdown stock, starbucks. Have you seen this thing creep from the 50s up to 90 since Kevin Johnson got his hands dirty getting this thing over after he inherited it from Howard Schultz johnson made it happen by taking 7. 15 billion from the sale of the companys Consumer Packaged Goods Division and using that money to buy back stock hand over fist, because the share price was so undervalued johnson comes to starbucks from juniper networks, a Technology Company and used his tech expertise to solve the longstanding thruput problem. Johnsons done this in his quiet way. Hes donned the green apron because hes not known he could be ubiquitous and anonymous. Hes improved the program, made good tieins with important Chinese Business, extending the friendship Howard Schultz had with alibaba thats important the Chinese Market is gigantic and had slowed down. Its coming back with a vengeance. Starbucks doesnt seem to be suffering ill effects from the trade war. Slowdown stock number three is chipotle several firms raised price targets on this one and they did the right thing. Ever since brian nichol took over in february of last year as ceo, he brought a system of expertise to the company missing under the previous regime. Like starbucks, chicago pot lay suffered from throughput. Taco bell has solved the problem. Of course it didnt hurt over the period americas forgotten all about the health scare that put chipotle in the penalty box in the first place and cfo jack hart, frequent guest of the show bought back a ton of stock during the days when the stock was lower. What a shrewd decision nike is the next one this is odd. The on lists didnt like nikes last quarter, they hated it. Since then the stock roared higher what does that mean . Its simple. It means people believe the next quarter will be better than the last one i think nikes made an amazing comeback on basically nothing. That would alarm me except one he see it come back on nothing for gigantic senior growth stock it usually means theres something afoot. I love nikes chinese and european and American Business this one comes down, buy it. Heres one that angers me every time i look at it, Procter Gamble it never comes in. I cant push it to you it keeps chugging higher i wanted to recommend it to you for a while but we havent gotten an attractive dip and its become everybodys favored packaged Goods Company david taylor the ceo has done a fantastic job. I see from the chem Blue Companies that supply procter with packaging the costs have come down. I see from the Transportation Companies its freight costs have come down. Higher market share, lower cost, improving Chinese Business, whats not to like watch this stock procters stock does not go down finally weve got slowdown stock number six mcdonalds. These are all household names. Mickey ds has the easiest comparisons coming up in the u. S. Its got an incredible grip on technology the ceo steve easterbrook, engineered a stunning turnaround in recent years. He won over the franchisee and brought costs down now hes about putting the tech to work to make mcdonalds more convenient for you, the customer the stock has more room to run, even in a not so hot economy why focus on the boring slowdown senior Growth Stocks in it would be great to rely on the turbo charged Growth Stocks. Im a big fan of facebook. I like libra, but i feel like im ta lone, democrats and republicans are united against it no one else buys into the notion facebook is reford fair enough. I dont care if theyre reformed i care that instagram is crushing it. Unfortunately rather than giving the stock a boost, libra has turned it into a real overhang i like amazon, too, but do you know how much hot money is ready to blow out of this thing on anything less than perfect numbers . Even if the numbers for prime day, which is today and tomorrow, turn out to be great, they will be sellers the expectations are way too high and i hate Great Expectations and stocks almost as i hated reading Great Expectations by dickens alphabet, peter teo started talking about china and treason. Google is compromised by the Chinese Communist party and needs to be investigated by the fbi and the cia. Even if you think the accusations are baseless like something from the manchurian candidate, he has theft with the white house. He could make a lot of trouble for alphabet apple, darn t the stocks running again. When apple roars higher, its bad news which is why im hesitant to recommend buying at these levels sure i like the cloud kings but stocks like work day, spelunk and sales force. Same for Cramer Family fave opta, z scale or alterrex. You name t the risk has gotten too high i cant afford to be glib i need the cloud stocks to cool off, that goes for most tech stocks, too. Terrific to double down on the moment but lets just wait i wanted to list Drug Companies until the president trained his guns against them. You have the food stocks you need if you own pepsico. Estee lauder, mcdonalds, nike, chipotle and Procter Gamble. I wouldnt buy them here in the first week of earnings season but the to tbottom line they ar going away theyll be the second half winners the big money guys cant get enough of. Memorize them, people, because i bet they keep winning for the rest of the year lets go to kevin in california, kevin . Caller hi, jim, from sacramento, california boo rah, big jimmy ge, i came in at 28 at 2014. I wish they held onto their appliances what do you think of next earnings and jane from sacramento is madly in love with you. There you go. Two calls on this, first as ge is out of the woods but second that doesnt mean it can necessarily advance. Doesnt matter where you bought it matters where the stock is going to, came from. I hold onto it not just for keepsake but i genuinely believe one day larry kulp will pull this rabbit out of the hat rob in florida caller hey, booyah jim. Sunny south florida. Nice, rob caller Blackstone Group symbol bx. Im a big ttd guy but ive been watching this and announcing their earnings premarket on 7 18 right caller they also acquired the mobile marketing platform bungle i saw that. Caller at the current price of roughly 45. 50, would you consider this a goodent tree point . No, it was good at 35. 50 i think a lot of the trade has happened already i think were late to the party. I like to find ones early to the party. You have the anointed stocks, the names big money wants into no matter what these are the winners for the rest of 2019, people much more mad money and cnbc, unprecedented access inside juul labs, dont miss it on the could disappointment tear the market down . Youll hear my takes rapid fire, the lightning round tonights edition, so stay with cramer if we did this tour today, with a parent, right, of a teen who had been using, or who had been addicted, how would you sort of defend all this, all this scale all this production . All this growth . First of all id tell them im sorry that their child is using the product. Its not sbintended for them. I hope there was nothing that we did that made it appealing to them as a parent of a 16yearold im sorry for them and i have empathy for them in terms of what the challenging theyre going to he hopes juul turns out less risky than smoking but admits there are real concerns about the impact of chronic vaping we have not done the clinical testing that we need to do what are you supposed to do about vaping by now youve seen these things everywhere ive seen them at the parties with younger kids. Juul leading player in the ecigarette space some including the company say its a great Harm Reduction tool helps smokers quit giving them a way to inhale nicotine with fewer health risks than smoking its still not great juul almost made their product too appealing to the point kids who never tried real cigarettes are hooked on vaping, even as the company, i admit, works hard to try to make it not happen later tonight, my squawk on the street cohost Carl Quintanilla has a document vaporized americas erig set addiction. Before that airs we wanted to sit down with carl to find out what to expect carl, i love you and i watch the documentary this weekend and i left with two points one is that why juul thinks theyre doing good, theres a child from michigan, a child from West Virginia and new york and all i could think of, he says theyre sorry theyre sorry these three kids were so troubled and they might not have been if it werent for juul youre right, jim im not sure juul has a good answer for that one. You look at the early marketing campaigns, how they were positioned, the colors they used, the music they used, the social media footprint they had, a few years ago, and then to hear him say im sorry if we ever did anything that might have appealed to kids, its tough to square. I totally agree and think thats why theyre talking to us now. I think youre going to see chapter one in a longstanding apology tour saying we had some questionable practices in the past, and theyre over were going to see i am involved with a move to be able to try to stop migraine, which is a terrible disease. When i know what it takes to get through the fda with an important drug, i am astonished how hard it is, even though we all mean well, even though weve all done great science what great science, what besides these guys socalled meaning well have they done . Because if theyre really that good at reducing harm, why dont they go to the fda and do phase one, phase two and phase three trials i think you got the answer in that clip you just played from kevin byrnes he says we still dont know. You do need that line on the graph that connotes time, and thats something we just dont have with the technology we need ten years of human study on vaping to figure out about the effect on blood vessels, the effect of nicotine on the brain, the effect on healing. We have to wait. It is our answer is juul cannot and probably will not give us prematurely. You went to visit the coal mining and you showed us, its not just nicotine for heavens sake maybe were minimizing the problem by focusing on lungs yep, we went to West Virginia, highest smoking rate in the country, some 20 odd percent where they have a lot of expertise in particulates you breathe in, from the coal mining days theyre putting lab mice in a tank exposing them to vapor, and seeing blood vessel hardening is the same as if you smoked cigarettes if thats an what you see on human trials, juul has a problem, the industry has a problem. Some are saying theyre rodents. You cant trays late that into the effect on humans youre a judicious person and talk about how the uk is actually supportive of the juullike instrument why are they less concerned about what i see when i go to parties with younger people, where my wife is pulling juules out of peoples mouths, throwing them away. Why arent they more concerned about getting people hooked on nicotine and so worried about the people much later in life who made a decision to go for nicotine isnt that a bad priority . Its quizical, the split tweeple then and us. Youve been to europe. The marketing on toe bangkbaccor graphic than in the states they dont have the teen epidemic they have the smoking rates have come way down they see vaping as a blessing and havent had the negative externalities of teen use. Thats just a function of our marketing restrictions here in this country, and i think a function of the degree to which the fdapussyfooted around on this topic do you think its ironic alcher makes 12 billion minority in juul to accelerate Harm Reduction. Who is causing the harm . Is it altria tobacco 1. 0 says yes. You point to one of the key concerns among critics and that is yeah, this might help some smokers quit smoking but it might keep them smoking and juuling at the same time they call it dual use and one of the fdas big theories this is not reducing smoking so much as allowing smokers to get a fix when theyre indoors, when theyre in a no smoking zone that does not solve the longterm problem of cressation. You have younger children how horrified would you be if you ever as they grow up caught them using a juul. My kids are 10, younger than yours. I ask them, they say dad thats an upper school problem. The fact they even know about it at 10, i think does tell you the degree to which this is filtering down into extremely young grades that was one of the Biggest Surprise that i personally had doing this project. It felt to me when madmen it was so great when he stood up to lucky strike, john hamm did it, it was chilling. Will anyone be john hamm to stop juul, besides the nice people at the end who seemed to be trying their best were going to find out, jim. I think the big player, juul, has to be the adult in the room and theyll try to i think work a little bit harder than weve seen at setting parameters for growth that are going to pinch in the longterm but hopefully help this Public Policy story. You have done amazing documentaries, carl. This was the most chilling im sending the link that you gave me to everyone. Every parent, every child, every teenager, every millenial must watch this this is not what i knew. Congratulations on a great documentary. Thanks, jim this is tonight, my colleague, Carl Quintanilla, whose new documentary vaporize americas ecigarette addiction premieres tonight 10 00 p. M. Eastern on cnbc. I hope i can get a roundtable. I was so incensed by this that i was shaking, i was shaking after i saw it mad money is back after the break. Announcer lightning round is sponsored by Td Ameritrade it is time lightning round. Buy, buy, buy sell, sell, sell. And then the lightning round is over sandy caller how is it going, jim . All right, how about you . Caller good. Im from earthquake, california, boo yah. My sister just got married, i was think being getting her into mrvl, marvel is it a good time . It is it reinvented itself and it wins with huawei. Buy, buy, buy. Aaron in ohio. Aaron . Caller hey, cramer yeah . Caller first id like to say hi to my friends bill and barb who introduced me to this great show hello caller i wanted to ask how you felt about general motor stock. I do not like anything. Its auto. I see my friend matt says it seems to be breaking out, so ive got it tell you, im not against it but its hard to get behind the Motor Companies when phil lebeau is talking about a strike how go gary in maryland . Gary caller boo yah, jim. I watch your show every day and i think its good. The reason i called you, id like to find out the stock dupont i am worried about dupont my travel trust owns it. Theyre going to split it up in different pieces i worry about litigation at the same time im tired of it so to speak. Im going to say dont buy dont buy. Thats what ill have to do on my wednesday conference call. Jerry in north carolina. Jerry . Caller yes, id like to know your opinion on khc. My opinion on khc is the following. Dont buy, dont buy they keep missing their quarters and cut their dividend thats a recipe for going lower. Julie in florida, julie. Caller hi, jim first time caller. Nice. Caller buy, sell or hold, bristolmyers. I am a buyer bristolmyers. Buy, buy, buy the acquisition at the end of the year will be terrific. I wish we hadnt lost tesla but a cheap stock. The combination will be great. Dr. Giovanni has been fabulous anthony in florida anthony . Caller boo yah, jim, long time viewer a, love the show. Thank you caller thank you calling in to check your opinion on maxar technology. Satellite is a spec and a spec only. I dont care for it. [ buzzer ] kathy in wisconsin. Caller hi jim, boo yah what is your investing advice on tentneco it is a play on autos and on autos i say be careful sell, sell. Lets go to julene in connecticut. Jim, first time caller. Good to have you. Caller long time listener. I bought spirit aerosystems, and spirit, okay, let me tell you about a spirit spirit is related to the boeing situation and its a bad thing, too. I got to tell you, autos and boeing are probably the weakest parts of this market ken in delaware, ken caller hey, jim, the big first boo yah to you thats quite impressive whats going on . Caller always like to pick up high quality stocks eli lilly down probably about among the highest quality i think david ricks is doing terrific you have to ride out the problems with the president and Drug Companies i would start to position here and buy a little more if it breaks 100 and that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] announcer lightning round is sponsored by Td Ameritrade hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade dont miss your gto experience our most advanced Safety Technology on a full line of vehicles. Now, at the lexus golden opportunity sales event. Lease the 2019 es 350 for 379 a month, for 36 months, and well make your first months payment. Experience amazing. Evan months ago a lot of people started worries that we were headed into a recession sell, sell, sell, sell why pause with the last rate hike from the Federal Reserve we got an inverted yield curve. Shortterm Interest Rates are higher than longterm rates and the inverted yield curve is a well established signal that a recession is coming. I was flummoxed. I figured jay powell can read the same stories we do so hed know his plans for repeated rate hikes would devastate the economy. You had to believe hed have to prevent a recession and easiest way to do that is stop the prediction machine roll back the last rate hike and stop the inverted yield curve in its tracks but the bears werent buying it. They didnt just tell you to sell everything because the sky was falling. They predicted several more rate hikes this year. That prediction was pure lunacy especially since powell told ums t us the hikes were on hold. The same bears are completely on the run now that he talks about cutting rates. They desperately needed stocks to come back down because they have fallen so far behind the red hot averages but they dont even know what could make them go down now. It sure didnt happen today. The bears Money Managers may have large investors committed to them so maybe the funds will be fine. Perhaps theyre already so darned stinkin rich themselves so you dont matter but what i dont like is the commentators are never going to have any accountability. We never hold billionaires accountable. Theyll never admit i thought an inverted yield curve meant you should sell stocks because a recession was coming i dont know why they do because powell decided to take action and stop the inversion theyll never be called out becausethey arent important enough to be worth chastising and dont care about you but you have to wonder what will drive the bears to disparage the market next. What will they use to scare you out of stocks . Earnings specifically disappointing earnings they see and telling you the stocks will go down, then you better fly out of here you better skeedaddle. First if youre selling a cyclical stock you may have to deal with lower short rates. Investors will look great through the earnings valley because they know the fed is now their friend second is what i call the micron issue. Micron stock had been rallying into earnings, the hope that management would be positive about the near term. They werent they were positive about the longterm. What happened . The stock exploded from 32 to 44 in a matter of weeks this occurred without any tangible sign from the chinese theyll buy more Micron Semiconductors investors look through the valleys, they braced for trough because the fed has their back as the late great market master marty zweid used to say you dont fight the fed. You dont fight the tape i have not said all the earnings will be long reactions negative is no wha im not sure about the bulls have the fed on their side i think the fed may be too powerful for the bears to overcome and the weakness we got for the trucking giant j. B. Hunt off a negative headline this evening can and must be bought because you just made eight bucks from that headline dip to the real story apex, the trough was bridged again. Stick with cramer your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. Its really important not to take your cue from the actual stock and the way it moves on a given day. Citi had a terrific quarter. Much better than i expected, okay it opened up 1 and traded down because the stock had run. If you therefore assumed there was something wrong with citi, i think youre making a mistake. You may see that happen with other bank stocks this week. But citis was a very strong quarter. I like to say theres always a bull market somewhere and i promised you id find it for you here on mad money. Imjim cramer, ill see you imjim cramer, ill see you tomorrow narrator in this episode of american greed. I love being this handsome. Its a gift from god. Wouldnt you agree . Narrator martin shkreli. The hedge fund manager, investor, and pharmaceutical ceo is a socialmedia mainstay exhibiting a questionable social conscience. Mangan he raises the price of this drug, which benefits probably the most sympathetic group of people on the planet babies, pregnant women, and aids patients. Narrator by jacking the price of a lifesaving drug 5,000 , he earns the title of the most hated man in america. But a quick look at his posts on social media reveals. Thats fine by him