Transcripts For CNBC Mad Money 20240713

With betterthanexpected earnings and you have what we have today, dow gaining 103, nasdaq, boy,. 70 nice when we finally get to the point we can focus on individual enterprises, we would be surprised at how well these enterprises are doing. Hallelujah so far, so good but next week was way too many jampacked earnings to keep track of, except for me. Let me give you highlights monday is expected to be a downer but im looking for a reason to buy, so thats at t. You might get a chance to by this midland quality phone company, yes, you heard me, once we scrutinize what will probably be bountiful cash flow from the time warner acquisition. We also hear from the one retailer that may disappoint us, amazon it used to be cv sfrmt but i think cvs are fine because they went and bought aetna. Then alphabet reported i cant remember the last time alphabet reported a clean quarter. Its always confusing. After the minoritysohot numbers from twitter, i fear another headscratcher who matters now . I care about one thing one thing only, acceleration in googles Cloud Business any sign googles taking point from azure or amazon is services, believe me, not what naysayers said, it would end this stock to alltime highs thats what we need, cloud heres what we will mahear from, beyond might, who once got burned but i think will be pleasantly surprised by the sale it wont matter. The lockup on insider sales is expected to come to an end tuesday. Once that stock hits, i think this 6 billion company will have to be worth a lot less. Tuesday starts with mastercard simple, ma paypal went up and visa, i think mastercard will deliver a priceless quarter. Lets just hope for a pullback monday to see if they can get in the stock for tuesday. And then theres merck, who got hit after Bristol Meyer told them about a trial that might make them a tougher competitor tumor. But when merck reports, i expect to see something to perfection, another buy ahead. How much is purdue losing per day . Might as well listen to the call and find out i remember a time when the strike at gm could send our whole economy into a recession and we cared about tesla earnings, which were oddly he better than expected we also get observes from cramer fav shopify. I bet it delivers a clean, solid beat we have dispatch from delivery guru grubhub this is important. I dont think theres number room for grubhub, uber eats, doordash and post mafts. These companies are bashing their head against each other, which is i predict pain at the close we her from amd if intel is doing as well, and we know it does, what a move today in that stock. That means, well, you should go buy amd. It was not up enough at the independent of the quarter we knew instel would meet dmajd for all kinds of chips including processors, their bread and butter so im a big believer in ceo lisa sue so i remember you buying some amd next week. Doesnt matter if we get a negative tweet or nonsense about the fed, that probably will happen if these numbers are good and by the time wednesday rolls around, i expect to hear art tenors saying this company did well, this company did well, you know what will happen, the Federal Reserve doesnt need to cut rates. Thats garbage we have industrials struggling and we know the dollar is way too strong a rate cut is what we need to turn around automakers and allow exporters to compete fairly globally if we get it, the markets should roar again and i do believe we will get it. Our rates are too high versus the rest of the world. Do not let andys people, pointy heads, tell you otherwise. Our pal fed chief secretly knows it maybe he comes out and says its true after that we have the most particular element of earning season because both apple and facebook report. I cant stand when apple stock runs up in the quarter and lately its on a wild gallup i have been telling you at the own apple, not trade it for years, i have been right but if the company will rally, they have to do a series of things, talk about strong credit card adoption, the deal with goldman, give us hours upon hours of programming and break out the airpods and watch as separate businesses so we can see the big Service Stream tall order. I wouldnt be surprised if apple actually falls short and the stock ends up pulling back to give you better entertainment. What about facebook . Unfortunately the mr. Zuckerburg goes to washington is over, where he played the role of pin etta and now we can get back to business i expect good things, especially about instagram, kwwhich is whyi like the stock at the head of the quarter. And we hear from bristle myers, the one Cancer Therapy drug merging with sellteen. Why its running high this week, i recommend buy in anyway. Thats how confident the superpowerhouse the ceo is putting together with this deal. I championed it when the stock was 45 and they announced the bristol cell gene combo. This will be the quarter when the ceos winning streak finally runs out and his Company Misses the numbers. After a lot, estee lauder has had a lot of exposure to hong kong and Mainland China but most of these have not had the privilege of meeting frayedia, a brilliant executive. He figured out how to harness the smartphone, camera part, and social media, which make people feel like they need to look beautiful every second of the date in case they got hcaught o a photo on snap or instagram how about friday we hear from the two best oil companies, skron and chevron i think they will show you it doesnt matter what a fossil fuel producer says nobody cares you need to recognize the oil and gas category has become the new coal, with the Millennial Money managers money managers, they just want to own these watch out wall street reacts to these numbers. I think these stocks may be finished unless youre an income seeking investor who believes yields are safe and doesnt mind they wont be able to grow a stagnant oil environment, which i suspect will actually last years to come bottom line, listen, there are dozens of other companies i didnt get to opine on here because we simply dont have the time i wish more executives were willing to spread out when there are report dates but i have been begging that for years and nothing changed. Still, after the betterthanexpected numbers weve seen this week, im confident about next week, even if the days loser earnings reports means i wont be able to get, lets say, one wit of sleep next week. Instead, ill grab a couple of naps in the greenroom herman in texas, herman . Caller hi, how are you, jim . Im good, herman. How about you . Caller im fine. Im calling about twitter. Its been as high as 45 and they reported terrible earnings and its down to 30 now but its part of the lexicon now. We use twitter like we used to use xerox as a game. I was wondering if theres any a good entry point there . I thought it was tempting while day today. And i said enough is enough. What hurt the stock more than anything else in the world is attitude nall. They sounded so down, you felt like wow, maybe its not as good i think you can start buying here but they need a lets say a cheerleader in chief there. Because, wow, it was just so negative that even i, a big twitter supporter said, uhuh, no way, no how marla in mississippi le marla caller hi, jim first, thank you very much for diligently doing your home work to put together such a great show. Kru caller my question concerns shares of the bankrupt ultilities company pg e. The shares plummeted again today upon speculation its tower sparked another california wildfire in light of the prospect of additional liability, do you think the company can successfully emerge from bankruptcy and be a good mad money investment or is it too hot to touch i think too hot to touch and it wouldnt be the common stock. I remember when littlingio had a problem, long island lighting, and you had to buy all other sorts of pieces of paper than common stock common stock does not intrigue me i dont like the concept it doesnt intrigue me lets go to michael in florida mr. Michael . Caller hi, how are you im doing great caller thank you for taking my call. Im calling about bed, bath and beyond today, bbby theyre getting a new ceo. He takes over november 4th from target. Right caller im in the stock about 12 and it closed today at 14. 27, down 5 cents or so im up about 20 should i should i take profits or should i wait no, you should not take profits. I have been working all week about trying to do a really good piece about this company and this stock and this executive and why this plan is going to work i know its very controversial, but i think the activists have gotten the Team Together correctly. This is a stock i dont want you selling. I think you can return to 18, 19. Thats when we will address whether its time to take some profits. This weeks shown us what can happen when we finally get to focus on what Real Companies are doing rather than just the indices and bomb market. Next week could be the same thing. Tonight, American Airlines is flying high after earnings today but can its tesh lent market and boeing problems make it so it can get out of what some people think is a stock bust . We will sit down with the ceo. Are you buying what honeywell is selling . I will explain and really one of the most influential people on wall street i didnt say woman, but but people now shes looking to help in the breakdown of the walls break down the walls they face i do not want you to miss my exclusive with the cofounder of ellevest im telling you, you must watch it stay with cramer pacifica ted goin oneighbor yes. Takin it off road Station Wagon . You know its an suv i know for fact your suv does not suck. Why is that . It aint got that vacuum in the back we got to go. Vacuum in the back, hallelujah doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. That could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Is it finally time to get more constructive on Airline Stocks despite low prices and strong consumers, airlines have been struggling most of the year. Smch that is due to boeing 737 max catastrophe. Some is due to tough labor negotiations and some of it comes down to competition. Even so, these have been especially hard hit. Take American Airlines, the stock is down from 50 highs in 2018, yesterday american did something interesting, reported mixed quarter, small time miss, custom b instead of going down, the stock actually rallied 4 . By the way, another 4. 9 today when a stock runs on notsohot numbers, thats called a bottom. And after a decade of colossal spending, first us airways and then buying a score of new planes, the company can now get away with spending, lets say say lot less, to balance the balance sheet. Lets talk to the ceo of American Airlines, doug parker mr. Parker, welcome back to mad money. Good to see you. I was so heartened on the call because youre solving labor problems, which you said is a must youre talking about urgency in making the shareholder lets say make much more money but youre also saying that the because of the end of the big spend, now you can start returning to maybe even buy back stock its the right moment. It is the right moment. Look, we had to invest we merged tour lines that had not been invested in a long time we had to modernize our fleet. We merged the airlines in 2013 and over 6 years spent 31 billion in capex for an able even our size, thats never been done before. But we had to do it. And now its behind us though. We now have the youngest fleet in the business. We dont have those needs and it falls off pretty precipitously after averaging 5 million a year, it falls to 3 1 2 he next year to 2 after that. What that means is even if we dont grow our earnings next year which would be a horrible miss for us we certainly believe we can grow earnings next year but just for analysis, keep the earnings flat, well have 5. 5 billion of free cash flow. Theres an elephant in the room though. And the elephant is, as you say, boeing shareholders should bear the cost of boeings failure, not American Airlines shareholders you said it could be 540 million pretax they could owe you. Do they have the ability to even pay it thats for them to figure out. But they owe it, right . Right thats our view. Again, were a customer. And they havent provided the service that they were to provide their customers. They know that and the reality is the weve already borne all sorts of damages to our customers, to our team and to our shareholders certainly the shareholder piece should be borne by the boeing corporation, not shareholders. What do they say when you listen, hey, youre right, or you are the customer, and youre right, what they should be saying they have not said youre not right. So we will talk. Its hard to have final negotiations until we know what the real damages are and we dont know what the real damages are until the aircraft is back flying again thats whats important for us i do feel good about the fact once we are able to get down to brass tactics, we will come to the table and will be quite right. I have flied on American Airlines i have never been on a plane that wasnt completely full so the people im with always turn to me and say, jim, ive got to buy this stock. I have never been on American Airlines that wasnt totally full what do you say to those people given the stock is down 50 . They should buy the stock. Because there are labor issues, competition. People dont see the full picture when theyre flying a full plane. And what people paid to be on the plane. Its an incredibly intensive, incredible business. The fares are, in many cases, you know, if the entire airplane was full, the lowest fare would not even come close to cover rg the cost of travel its a tough business. Thats okay. Were okay with that but it feels a lot better of late and demand for air travel is really high and strong and continues to be. So we feel very good about it. I think finally on this call im starting to hear youre catching up. Digitization, youre starting to catch up to the rest of the world in terms of what companies have done with technology, right . Yes again, we have a lot of initiatives Going Forward and in some sense youre right, were catching up with the rest of the world. When you integrate two airlines, it sets you back on your technology you have to take two systems to make one we it to integrate, not innovate, the unfortunate phrase we had to keep saying. Now we can innovate and have a Phenomenal Team doing that incredibly well and making changes almost every month theres some new invasion comnoa helps our team. Like many people around the country, i made my thanksgiving plans and christmas plans. Some include American Airlines. Thanks. Is it because things are robust, its always too late for a lot of people . Where are we whats that you guys are really busy already. Youre booked solid for a lot of flights already, thanksgiving, christmas. Of course. So consumers are good. Demand is really strong, its always strong over holidays but it remains strong through all periods through all regions for the most part. Everything that we can see, were horizoned in great people dont purchase their tickets particularly far in advance but were also a leading indicator. What were seeing is an increasing demand for travel. Lets just talk about tbond situation. One, are you going to say do your pilots want massive retraining on the new planes our privates are heavily involved in this process with the faa and boeing of course, were going to make certain theres no American Airlines pilot that will not file an airplane if they dont feel adequately trained. So of course they will be adequately trained. Is my wife leeszia asked me to ask you this, she said ask doug whether he would be willing to put gwen, jackson, luke and elisa on a max absolutely. And they would be happy to go with me. Because people are saying, listen, i dont know if i want to be on this plane. Why are you willing to put your wife and kids on that pilot . If the American Airlines pilot decided its okay for he or she to take that plane up, im okay to go we have the best pilots in the world. They understand the aircraft they fly they will never take up a plane they dont think is entirely safe once were to that position, which would mean the faa, the arbiter of safety throughout the world and is taking this obviously incredibly seriously, the faa will have certified it an American Airlines pilot decided its safe for he or she to pilot, were on. Thats the first time i felt good about that. First time. All right. Thats doug parker, ceo of American Airlines. This stock is ripe mad money after the break. With esri location technology, you can see relationships. Connections. Patterns. You can see what others cant. Tell him were flexible. Dont worry. My dutch is ok. Just ok . Tell him we need this merger. 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. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Rufrly a year ago, longtime kramer favorite honeywell broke itself up into three separate companies. Spinning off their auto parts business as Garrett Motion and Climate Control home studio business residualed. I own honeywell with the travel trust and you can follow me by joining the action alerts. Com club and you know i love these breakup stories. I always feel they create good value. However, some spinoffs are a lot more enticing than others. Sometimes a big value breaks itself up because its sitting on an underappreciated asset thats not getting enough attention. Sometimes you spin out of the business because you scrub it and want to wash their hands up and thats what honey well did they washed their hands. Super cyclical auto parts and Residential Division the new, meaner honeywell can focus on industrial space, nonresidential and more consistent markets that was a brilliant call. In the last months, they have been hammered, ra sidot, in particular, just getting entirely owe blivated this week in a fashion i didnt think was possible now that weve had a year to observe these three these new independent companies, i think its worth another look, along with honeywell itself. Have the spinoffs come down to the point where theyre attractive here . No let me make this Crystal Clear honeywell is a very smart company, run by the experienced dan check and you dont want to buy what hes selling. If they dont want auto Climate Controls here, maybe you shouldnt either lets look one by one starting with Garrett Motion. Always been the best in its industry they sell turbochargers which i always loved when things were good in the oil energy, electric good and software for cars and trucks, always considered to be the Gold Standard they had the struggle to be the selloff in the market last year, plunged all the way down to 11 by early december after that it briefly got its root back. By late april traded at 17. 87 but then it rolled over again and has not looked back. The darn thing has been cut in half over the last six months. No wonder honeywell wanted it out. I think the weakness makes sense. Garretts auto company are in dire straits, not to be confused with the band dire straits gm is not the sultan of swing. The report the other night was not that good. But if were building fewer cars, they will serve fewer turbocharges this is a value trap situation that you often find right before a cyclical downturn. At the end of march, garrett looked like it was selling fourth times earning you see what that is, a huge red dplag i have to throw yellow flag, im on the wrong side, ill throw a yellow flag, stocks dont get that cheap unlessle wall street believes the essence is about to be crushed in july, sure enough, garrett reported hideous revenue shortall and slashed growth and now the stock, what can i say, its become a total punching bag. Here we go we know garrett reports again in two weeks and i doubt you will like what you hear why not . Because last month we learned the cfo, chief financial officer, will be leaving the company to, quote, pursue other interests. You hate to see a torch executive live after just one year as an independent company even if this particular executive has been doing a bad job of forecasting where the business is headed its just not a sign of confidence for the moment, garrett needs to show a story in an awful market and we need to see evidence in the market before we think of owning this one. I dont see such a turn. How about this residot, maker of the home Climate Control, Security Systems just like garrett, this thing got hammered right after the spinoff because the market was rolling over unlike garrett though, residot didnt get as much of a bounce, climbing as high as 26. For the next eight months it worked its way down to 15 as the Company Posted a series of notsohot quarters. Which brings us to tuesday night, when resideos Stock Plunged nearly 40 the next day to 9 and change with the mortgage ratio, you would think they would have a winner here. You would think business would be better to a stock linked to the redhot Housing Market no they slashed its fouryear forecast even worse we learned, yep, the chief financial of this one is leaving too. Its highly funny that theyre losing ceos here they said theyre conducting a comprehensive prasal and financial review thats not something you do when times are good and something they should have thought about before spinning it off turns out theyre having specific issues. The legacy portfolio thermostat Security Systems are outdated, when Everyone Wants connected versions with google or amazon, theyre building their own smoort systems and the rollout has been marred by execution problems not saying housing is a much bigger market but management is cheap here management cant seem to get out of their own way my view, dont consider buying this one until we see some sign that management has a plan a plan to turn things around if youre catching up with these spinoffs, i have more respect for the actual stock honey well, the parent getting rid of residot at the moment the economy peaked was brilliant. Its up 30 for the year the environment has been tough on the industrials they would be doing much worse if they held on to the housing and auto divisions instead theyre in surprisingly good shape last week reported a robust quarter, small revenue and mostly okay guidance was it perfect no but it was nabbage, thats right, not as bad as feared. They saw strength in products, strength in process solutions and strength in Industrial Software the two spinoffs have been tribute for their margins, thats why the stock caught fire in the news, rising to 171 today. I think it has more room to run. Thats what im telling club members. Bottom line, i love it when a company breaks itself up to unlocked value for shareholders but not all breakups are the same sometimes you spin off for Fabulous Business to get an independent valuation. Sometimes you amputate the underperforming divisions that are Holding Everything back. When dam check split the honeywell into three separate entities, it wasnt amputation he cut out housing and auto to save the rest of the business and it worked. Thats why honeywell remains a buy but garrett and residot stay in the penalty box until they figure out how to turn themselves around. Richard in new york richard caller so, james, thank you kindly for taking my call. Of course caller i thank you for my family for making a difference in our life with what you do. Yes, yes caller thats a big damn deal anyway, im interested in a now stock and play for the long haul i was wondering if General Dynamics is the play, especially with all of the distraction with boeing no, its United Technologies, which will be combining with raytheon and spinning out their business, the Premium Aerospace business in the world. So i want you to go with United Technologies look, this is a tough one. I mean, breaking up is hard to do but in honeywells case, its a sign that steer clear of two companies that actually are the Good Companies seriously, garrett the best turbo charger, residot may be sub standard but maybe someday. Honeywell always been good much more mad money ahead. Im talking to ellevests ceo Sallie Krawcheck and i will take your calls in rapid fire in tonights edition of lightning round. Man how can i deliver superior longterm results . 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So why not use that appreciation for anything you need maybe its some home repairs, or updates to make it more comfortable so you can stay in the place you love. Its a viable effective way to support your other investments long into the future, and another way aag is working to make your retireme. Better. Dont wait. Get your info kit now hird this was National Business womens week there was one woman hi to have on the show, Sallie Krawcheck, the legendary ceo of Merrill Lynchs wealth management. Shes got a new job as founder and ceo of ellevest, privately held visual Investment Adviser around women its number 45 on the cnbc disruptive list. The idea is the whole industry is designed around men you might think this would be naturally gender neutral uhuh, big difference. Women tend to live a lot longer than men which means you have to put different thoughts entirely to retirement. Thats a brilliant concept, which is why ellevest has been growing like a weed. Lets check in with wall street legend Sallie Krawcheck, ceo and founder of aellevest, personal find and icon too. Why women are getting more involved in Money Management, taking care of themselves and control of their finances, sallie, welcome to mad money. So glad to be here. If i knew we were going to do disrupter, i would have brought the disrupter socks. Did you know you sent out disrupter socks . I did not. What says disrupter more than socks . You got me stumped there. Nothing. When i heard about what youre doing, and im a fan and a friend, i said its about time and its the right time, isnt it appreciate that when i thought about doing it and people said to me, gosh you you should start an incresting platform for women, my first thought was, thats such a really not very good idea. Women dont need their own thing. There are plenty of options out there. And then the more i thought about it when i realized it doesnt matter if i think women need their own thing, the numbers were telling me that we do. It seems like that there is the ratio of women in the world versus women in this industry, particularly bad. Oh, my gosh, it is a maledominated business. The vamajority of Financial Advisers call it 85 the vast josht of mutual fund advisers, 75 and despite the research that tells you women are as good, certainly not worse, investors than men. I think, and you know i believe this, there is inherent discrimination in our industry jane frazier, terrific banker, just now elevated maybe one day a woman will run a major bank. Isnt this in 2019 crazy heres the crazier part about it, which is that wall street as an industry is all about no emotion, just thefacts lets go after returns highest risk adjustment returns, no offense, cream rises to the top. Yet it hasnt tapped into a really very powerful means of driving greater performance, which is cognitive diversity, which is often driven by diversity of gender, background, perspective, et cetera here you have in theory pure meritocracy that is not at all diverse. Lets say i sign up with you. Apparently growing a tremendous amount per movement i want to be part of sallies army. What do i get . Where do i start. We take men too i love to see on our digital size, our investing algorithm kills you sooner and men sadly has you earn more. We have a digital offering, which is where we started, which is an online experience tailored to women such as explicit ways as gender awareness of Life Expectancy but in some sort of smaller ways too for example, we learned that men will invest through verbiage, jargon i dont quite know what that is. Here, let me go. Women, whoa, let me get out the old finance dictionary we have about a thousand little differences. So we have a digital difference. We now have a high Network Business where we have Financial Advisers who are engaging with women and our allies as well. Because you know my family, my situation, my wife was at one point an exwife, as you know. And i felt that exwives in particular are treated as if they are im going to say a prejurortive term dopes by the males in the industry. This seems like 50 prgs of the marriages end in divorce, a lot of smart women mistreated well, she doesnt know anything. You can be an end irof that. I dont know if i agree with every word that came out of your mouth but what i will say is us as women, society says youre not great with money let the Man Management 97 of women manage their money on their own at some point in their lives. When women outsource it to their partner, 70 have a negative surprise when the Money Management comes back to them. For some women the existing offering works just fine but there is a big need there for an offering thats really focused on women. People are listening to this and theyre saying, you know what, how do i get shares in ellevest this Sallie Krawcheck, total winner i really like this idea for the company. But its not yet, right . Were venture funded. We started from a dead standstill now i guess three years ago, almost three years ago. Weve got some Great Investors in our company we tried to be truly mission aligned from who our investors are to what we do. Melinda gates, digital adventures, penny from investor capital, the number of always investor capitals part of the me too movement, the female venture capitalists out there rethink impactp and large genderless investment investor. So were trying to walk the walk and talk the talk Mission Based because one, its great and fun to do but about the most powerful thing can you do to help a society and economy is get more money in the hands of women. Empowerment. Which is why so many of your viewers, which i guess quite a few are male, they may say why do i care . You care because of this mission. You also care because for the next generation, theres not one of us new york city matter how traditional you are, that wants our daughters to have less money than our sons. And this gender investing gap is costing our daughters hundreds of thousands, maybe millions of dollars, and for the dads out there, you do not want your daughter caught in a job where shes being chased around the desk. You know that situation. You want that out. I worry every minute about it my mission is to have you on as much as possible, how about that there we go i like that mission. Sallie krawcheck, cofounder and ceo of heroine of mine or can i say saint, of ellevest mad money is back after this its time, time for lightning round and then the lightning round, are you ready . Casey in california casey . Caller booyeah, casey from san jose, california. Great to have you caller jim, i have been a fan of yours since i was 14 years old. I love that, i love that. Caller i have had micro Chip Technology ten years and its been stagnant the last two years. Sell or hold its too much, honestly, its too much like texas instruments. I want to you make the switch and go into envideo, even knows how to run marvel if you think nvidia has had too big of a run. Hello, craig caller hello, jim. Booyah. I just woke up with a 100,000 loss on taco bells report should i keep it or sell it . Mcdonalds stock could go down 15 points i do not want to be in el taco. Gregg in arkansas. Caller good afternoon, jim cramer big arkansas razorback booyah to you see. Now youre talking. Whats happening caller i was wondering what you think of a Great Company in my home state, tyson foods. I think tyson foods are doing a remarkable job they have the protein story. 0 stock has come down a lot. I think its an interesting level. By the way, may i say their peabased chicken dinners are dynamite lets go to bernice in nevada. Caller hello, jim. Bernice caller im here. Youre up caller jim, i love your show im totally addicted to it. Wow caller i have a question i bought chewy in july i paid 34 for it. And i have seen it going the other way. What is your opinion on it now the problem is, bernice, is what happened the market is going away for companies with fast growth and no earnings and thats chewy i think if chewy goes up even a little bit, i say get out of position if youre going to be in that, might as well be in amazon, down 130 i said goodbye 130 closed less than 130 and thats a better stock to be in. Jamie in texas jamie . Caller hi, jim, thank you for taking my call. Youre welcome. Caller my question is on progressive insurance. Their Third Quarter net premium policy enforced growth looked solid, earnings per share a b but yet the stock outperformed 14 since july whats is your take . Its an uninvestable situation. The insurance stocks ever since travelers blew it, nobody wants to touch them. Its really too bad, theyre not bad but i dont want to touch them and that, ladies and gentlemen, is the lightning round announcer lightning round is sponsored by td ameritrade. Booyah and this is a big but, sir, is there like a Toronto Raptors team maybe can he watch that. I wish i had a picture of da vinci for those who are not [ crickets ] where is the picture of da vinci . I was naturally miffed it was a miffing human sacrifice, dogs and cats living together mass hysteria i love english funds i love english funds marcia oh, my nose i have a dunce cap on i he kpeel like a complete idiot. I should have ton stadd in the corner and write on the black board is,000 times im an idiot ly have to spend this whole darn period with my dunce cap on. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. 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Im proud to be a part of aag, i trust em, i think you can too. Have we finally taken the possibility of a recession off the table . After this week, it sure feels that way on top of the lessening of the trade tensions with china, potential may be even for brexit resolution and high probability the fed gives us another rate cut next week, were also getting some powerful evidence from earning season. Evidence is suggesting the economy might be actually better than you think you know disdain the mac but i take the topdown approach where you start with the aggregate data and apply it to the market in general instead i like to take a bot maniesup approach, approaching a mosaic from every individual company. Yesterday we got important pieces of that mosaic and ive got to bring it to your attention. First, theres dow chemical. Terrific barometer of the broader economy. According to dow the basic building box chemicals are finally bottoming in price these chemicals are as cyclical you can get, great tell of the economy and future and pure supply and demand. If theyre bottoming, thats a very good sign secondly, i like the way the more cyclical stocks with higher yields are trading and that includes dow i follow a host of stocks that are doing better before nonyielding stocks were thriving but now caterpillar, how about that one, disappointing quarter but stock is yielding. They said the dividend would be cut but theyre buying back stock. Same for tankry outlet center. Pangers numbers have been horrendous a lot of people worried the dividend may not be safe but the stock is rallying here i think the marriaket has a lite more faith than a few weeks ago. A lot of investors lost their faith in coal, which is how it ended up with 5 yield to begin with same thing for macys 10 kwleeld. But its heartening to see the rally in stocks like khols. And suddenly wall street cares about their bounty physical dividends because because they think theyre safer. Theres a sign september was a strong month and they showed an uptick in business, the most powerful in the country, felt the economy strengthening in the quarter intel painted a picture of amazing demand across all of its consumer and data center oriented products. Visa said it had 47 billion payment averages can you say all of this evidence is anecdotal but if you put enough in, it goes together. You get a comprehensive look at the economy. What i see is not at all recessionary dont forget jamie dimon from jpmorgan, he indicated the consumer is in great shape and industrials put up surprisingly solid quarter the last few weeks. Think illinois tours, honeywell, United Technologies, they are supposed to be Cyclical Companies but they had excellent earnings and what happened the market lapped it up. What if you take away one of our bullish props, what if the fed decides not to cut next week i would say the fed has to be nuts not to cut. Our International Companies are struggling and only ones managed by truly resourceful ceo end zone are holding up. The dollar has been a major headwind for quarter after quart esh, based on the short rates controlled by the fed. Theres no inflation which means theres no reason not to cut the idea jay powell should save the next rate cut until we need it more is just plain simi, even though i hear it articulated all the time thats like saying you should only go to the doctor once you get sick you would get sick a lot less if just went to a regularly scheduled checkup. Think of this rate cut as a vaccination. If we can take the recession pieces off the table, its a Huge Positive for the market lets just hope the fed listens to our please and gets it right stick with cramer who says our bank isnt tech enough . Everyone, look at your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. I need all the breaks i can get. Line . Liberty mutual customizes your Car Insurance so you only pay for what you need. Thats a lot of words. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Pacifica ted goin oneighbor yes. Takin it off road Station Wagon . You know its an suv think of this rate cut as a it aint got that vacuum in the back we got to go. Vacuum in the back, hallelujah now that we hear from the actual companies other than the macrodata, can you tell there are a lot of companies doing incredibly well and a lot of ceos being able to navigate what are very choppy waters it makes me proud, proud to come out here every night and talk about so many Great American companies that really do great things i say theres always a bull market somewhere and i promised i would find it just for you here on mad money im jim cramer and i will see you monday welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. Come here, boo. I live in anthem, arizona, with my wife, our daughter, and our twin boys. Started playing football in high school, and i quickly noticed that that was my ticket out of the rough area that i grew up in. Growing up was a struggle. My father was never around, and my brother and i would watch our mom fight to put food on the table. I had the opportunity to go to kansas state university, and i was selected by the Green Bay Packers in 2004