Transcripts For CNBC Mad Money 20240713

And a thousand times a day without thinking about it. At least thats how it feels right now. The inevitability of this outbreak is starting to sink in. What does the fed do it gives us a rate cut a 50 basis point rate cut. Reaction hey, condition rate cut. And it was a resounding texas hud. Ultimately the dow fell 786 points and 2. 189 so why did we get that illnesses, cancellations and this epidemic and im beginning to feel just in what has just been cancelled the emails that i get and the notes from Different Companies that is a shutdown it doesnt change that its not a cure. Its not a hazmat suit or respirator it does absolutely nothing to impact the spread of the virus it somehow boosts Business Confidence i did care about the rate cut. I cared about how wrong it was its totally a sign of the panic from the fed. And a rate cut i say this as someone thats been addiment that easy money is a good thing im probably the biggest single proponent of lower Interest Rates on the entire spectrum of tv, internet, anywhere in 2007 i lead the charge for the fed to cut rates thats when i screen it or nothing. You know nothing. About real business and the banks are in real trouble. In response they literally laughed alt me at the next fed meeting. Its in the minutes. In the minutes that i wanted rate cuts. Then 2018 i have known him for a long time. He kept raising them and i say you have to lower them and then boom it almost caused a recession. When it comes to Monetary Policy i love low rates they are closely rated to the bond market right now. Longterm Interest Rates plummet because of a slow down in Economic Activity and no demand for loans and also quality with investors and theyre so darn frightened the feds actions told you that they expect Economic Activity and i think theres going to be one too. They may not want you to be afraid but they did the opposite and when youre afraid you sell stocks even the best ones the rally in bonds sent the yields plunging and really spooked me yeah, me, i have been around a long time. Are we going to get to negative rates . We dont want negative rates for heavens sake. I told you again and again lower bond yields. And it was yesterday before the fed. I got a chance to pull up with the regeneron ceo that was the first guest on mad money it was a realistic assessment of the situation. He called it a gathering of optimistic people when there was no reason to be optimistic and while people were heaping about a giliead antiviral, there can be real surprises. Like he was able to stimulate cells and stop the Ebola Outbreak thats what its called for. America is the only people that can do it. Certainly the chinese as you have learned until then though we are made of a place where theres no vaccine and its novel i always end the show by telling you theres always a bull market somewhere. So where is the bull market. Okay im true to my mantra. When rates go this low you reignite what had been a pretty strong rally in gold which soared today its been reignited for sometime you can buy gold i like bullion if you can find a place to put it and its not your backyard and i like gld when youre dealing with economic chaos, gold is the idea insurance policy for your portfolio. I have been telling you that since the show began and im reiterating right now. Buy some gold. The next bull market, after the first day of my sell offs that were driven by the bond market then you have to pick the dividend stocks with more bountiful yields do you know what i also like, 5. 4 yield especially since its about to close on the allergen deal which will give them a powerful new drug that no one has talked about but i know it because im the chief spokesperson for the American Migraine foundation it will move the needle when the deal is done but nobody is thinking about it because its in the transition. Theres a ton of drug stocks i expect them to be hammered mercilessly. His agenda will never Pass Congress they will start rolling over even though they have zero economic exposure. Wow theyre comingin man we love that stock we have been waiting for it to come down. Not running away from it now these ones will come back and the s p futures stop dragging down is entire market. But they offer a lot of trade shows and might be deals that might not be do able in this environment. That is what matters but it is tough to close some deals when youre at home, once again, its never too late i reiterate, to sell the stuff i dislike. Travel, leisure, restaurant, anything related to those. Autos, they are all going to be weaker still its not too late to sell them, am i clear you can expect it because its only been a couple of times and always bounce and wasnt just friday, yesterdays bounce that will be a better time to sell the ones i just said are and cruises are fun but their stocks dont make sense here you cant wait until the selling ends you have to buy them in the heat of the sell off youre not going to nail the bottom which is being called by the illness but theres opportunities here and otherwise just a lot of stocks to sell. Jonathan in california, jonathan. Booyah jim. Booyah. Thanks for always being willing to stick your neck out and give us your honest informed opinion. I have been an investor in American Airlines since it was u. S. Air in 2013. Right it was a great investment. It gave me chances to increase my position size however, since i missed the top in january of 2018, its been a nightmare. Yes. I had recently seen the night at the end of the tunnel and other revenue initiatives that seemed close to bearing fruit. But now the virus is vaporized all of that and i still believe in the company eventually well get a handle on the virus and life will go back to normal. They have a liquidity cushion i dont mind holding for a long time. Now, look this stock is down for 8 straight days. Thats highly unusual. It can bounce but we have some of the finest quality stocks just getting crushed here today. So my take is is that i cant move away from that. I know that i got a i just dont think that i have anything to stop this thing and theres a lot of stocks involved with travel leisure that are going to follow you more than they have already. All right. You can buy these stocks to the sell off these are very few that are not in these but they can work mad money tonight, chevron showed off its war chest by plunging 80 billion in returns but as oil and Gas Companies face a reckoning when it comes to climate change. Im talking with the ceo see how we should approach the situation. If theres so much up and down action instead of trying to gain the market im eyeing a high Quality Company that can head higher when the averages find their footing. Dont miss my exclusive with the company that i liked since it became public and it has nothing to do or will not be brought down by corona stay with cramer dont miss a second of mad money. Follow jim cramer on twitter. Have a question, tweet cramer at madtweets. Send an email to madmoney cnbc. Com or give us a call at 1080743cnbc miss something head to madmoney. Cnbc. Com. When you look at the Critical Issues facing our world, what do you see . We see breakthrough medicines getting to patients in record time. We see harnessing natural gas unleashing the promise of clean energy. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com 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. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] a. I told you i was done. Like the most recent curb your enthusiasm i couldnt take the disappointment anymore wall street growing a conscious about the environment and the price of crude continuing to get hammered and he moved toward divestment but i am always listening to other side of the story when someone disagrees with my thesis earlier today we had a chance to check in with the chairman and ceo of chevron for his big analyst day event in, no new york city. Take a look. Best Balance Sheet and dividend policy and growth and best total return and yet your stock is having a problem if you were in any other industry explain whats going on which we welcome, we welcome the future and we intent to be a big player in the future and were taking care of all the right things and were built for an environment like this with uncertainty. You still finish with a better Balance Sheet. To raise our dividend and fund our Capital Program our future is strong and were delivering for investors and i believe investors will see that and will be rewarded. But when . Since 2014 because of your great dividend you had some return its best in the industry and its what people do not want to own oils. Oil prices were over 100 and further investments in our cost structure and margin captures and returns and we intend to double Free Cash Flow per share and gives us the capacity to fund 75 to 80 billion in shareholder distributions over 5 years. Thats half of the market capitalization over just five years so is it possible that there is an etfization that all trade the same i think the market is dise n discerning and the etf phenomenon has changed investing over the last decade or so but i do talk to people that understand the difference and overtime i think the fundamentals in quality will show through. Theres a company that bought an asset that you compete for. It still regards some of the better ones. Why not be able to buy a lot of companies that we both know are going to be in chapter 11. We have the strongest Balance Sheet in the industry and were buying back shares we have the cash generating capacity to do both. When i talk to investors about share buy backs they say we dont like them because we think they only buy back when the price is high. We have committed to buy back through the cycle and were certainly in a down cycle now and we intend to see that through because we have the best Financial Capacity in the interest we are going to low dividend and break even and strong cash flow coming out of the portfolio. When i look at the single worst thing that they do, youre good. Were telling investors a lot about what were doing not just on climate, on water, on governance, on a society and community and we always operated this way and more and more of it. Why not put money into it we put over a billion dollars into it the largest Carbon Capture and sequestration project in the history of the planet is in australia how about going on exchange and buying credits how about planning 100 million trees. Pie in the sky. Trees are good for the environment. Were doing things across the board. Were investing in companies that are developing new technologies that can change the game on these things direct air Carbon Capture or the air in this room to reduce co2 and were investing in technologies all of which are overtime going to be part of the solution. Do you think younger investors would ever own an oil company or is it the new tobacco . No, its not the new tobacco. Theres big differences. Demand for our product is growing. The u. S. Energy economy and jobs have never been bigger the trade impact is never better it touches every aspect of life and were part of todays Energy System and we welcome the Energy System of the future. In 1978 jimmy carter said the same thing about kcoal and it turned out to be a wasting asset. Demand for coal has not actually gone down the demand for coal is still globally as large as its ever been. But look, again i struggle, best Balance Sheet, best everything, and yet i still dont know i recommended chevron for years. For 30 years i stopped and i stopped because i thought i couldnt make any must be for people because i felt that the tide has turned. Not because youre not doing a great job. You have done a remarkable job but the industry, just, Money Managers wont buy it. Were investing in reducing our Carbon Footprint and bio fuels into our refinery and fcc and the First Company to ever do that renewable natural gas and were investing in technology to change the evasion i think investors will see all of these things as we become a part of the energy future, its a lower carbon future. How about making a pledge that says this is what we must do as oil companies. Major companies that you never stand for. Everything goes from an epa. How can you establish a standard that is so much better than what the industry currently has. I think the whole Industry Needs to its methane emissions and we work within the industry and i see serious Companies Make efforts to reduce it. You do . Absolutely. You mentioned demand. How about on the supply side can opec help . Or does it just not matter because as soon as opec tightens it goes nuts again clearly demand is off with concerns about the coronavirus and there seems to be a lot of optimistic talk about further cuts. Lets talk sabt some things with you cash flow fell short some mega projects in the end you work in a business where its hard to predict given the fact that you have had misses as well as hits. So we made choices on capital and the decision was really a decision to no longer fund that development in the u. S. Because we have better choices within our portfolio you only invest in the strongest opportunities and dry gas simply doesnt work for us as well as other things that we have already captured the long curve realdy did drop i look at 48 out of 5 years i say why should i buy chevron if it looks like the futures tell me that theres no increase over time we will double it over the next five years and we have the capacity to return for Share Repurchases and dividend increases averaging between 5 and 9 over that period of time. On top of the dividend thats yielding over 5 right now we are built for a low price environment. Well deliver to investors in a low price environment. Well, i say, if you want to own an oil company you want to buy chevron but maybe you cant because youre a producer. Investors can count on us to do the right thing. Thank you so much. Thank do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. You get the freedom of what a 7day return policy. This isnt some dealership test drive around the block. Its better. This is seven days to put your carvana car to the test and see if it fits your life. Load it up with a weeks worth of groceries. Take the kiddos out for ice cream. Check that it has enough wiggle room in your garage. You get the time to make sure you love it. And on the 6th day, well reach out and make sure everythings amazing. If so. Excellent. If not, swap it out for another or return it for a refund. Its that simple. Because at carvana, your car happiness is what makes us happy. To challenge your thinking and test your execution. But great minds are driven to seek out the complex. They see what others dont, from an angle others wont take. They learn that embracing those challenges is what sets them apart. I am justin rose, and we are morgan stanley. Whats next for this incredibly ridiculous volatile market we need to make logical decisions. Thats why i like to fall back on the technicals in times of turmoil because they give us a more quantitative less emotional approach so tonight were going off the charts with her help she runs the website and my colleague at real money. Com where i get her read on this topsy turvey market. She warned us that the s p 500 people were in the correction. Thats exactly it. Told us to watch one specific thing. Take a look at this daily chart of the s p 500 now you see the blue its the moving average. The 13 day exponential moving average. When the five day goes above the 13 day she likes to use that and it goes below the 13 does the trigger always work of course not but its helpful a pretty high per staej centagee time but when its right its really right monday of last week the 5 day crossed below the 13 day if you were watching these moving averages like we told you to, you should have got it now right there. Just like she said the whole correction for tuesday morning. And going down to be a big sell off a month ago. And you know, the rally and i think what does she see next check out the daily chart of the s p. This is where it comes into play she measures the scale and duration of the past swings and then she runs them thats a key series of numbers and that gives her a set of levels and dates where the trend is likely to reverse itself. Its the dates that were concerned with right now and sure enough the markets started showing signs of life on friday afternoon before exploding higher yesterday although we now appealed a different chunk of that then the s p could work its way to 3,539. Need to be on alert. As we saw today the fed is pushing with a double rate cut you cant cure the coronavirus with lower Interest Rates the Economic Impact could be severe. Remember the five day exponential moving average is still below the 13 day which tells us that its time to sell. Its way below the 50 Day Moving Average and were through every support that we have not sure that they will hold so we have one of those and i typically dont like this kind of situation on the other hand the upside could be he nenormous but you n to be ready to bail. So what youll see from that is if it does go through there will be a lot of of people that suddenly just sell so theres going to be a woosh down in that level doesnt hold. Lets put this in context. I want you to think of a daily chart of the Largest Company on earth, apple now when apple put on a bottom on friday, its pointing out that a pivotal low might be in the works. There would be a powerful support around 256. But where did it bottom . 256 you also have the possibility of a rebound for friday and some of those and 30 on lows a few days ago. Of course if it doesnt hold or fails to well youre looking at a story. Bottom line, some surveillance stocks might be safe like apple but the s p 500 might not be out of the woods yet as we saw today, it could prove to be a tad. Xander in washington, xander. Booyah, jim. Booyah. Im looking to add a and d to my portfolio. Do you recommend hopping on that train this week . Im a little more conservative i happen to like amd im backing away from a lot of stocks that economic cyclicality. Even a company as fine as amd might have some and youre going to get it at lower levels. Im not saying its a bad company. I like it. Im not telling you to sell it im just saying if you had a new position that you wanted to start i dont know if this is the time because the cyclical stocks are doing terribly but amd is a Real Good Company its like apple but not out of theed woos it is tough to navigate the markets recent turmoil but could it yield a buying opportunity in a really cool company that has no economics. I have the exclusive earnings. And then between 100 million in rate cut ill choose the money ill explain why so stay with cramer do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Diarrhea . Pepto diarrhea to the rescue. Its 3x concentrated liquid formula coats and kills bacteria to relieve diarrhea. The leading competitor only treats symptoms it does nothing to kill the bacteria. Treat diarrhea at its source with pepto diarrhea. The dow swing more than 1,300 points in one day. What do you do it has a pergel platform that helps people manage clients. They use Smart Devices to monitor your data. They show it to doctors and give you advice to live a healthier lifestyle. Its a business. Just all the Public Health its an excellent set of numbers. Highly expected sales. Even guidance for the next quarter and the full year. And this morning you open up nearly 5 but then the whole market rolled over and the hammer with it the stock closed down 2 for 9 . Thats wrong its an incredible buying opportunity but lets check in with the founder and executive chairman he had a better sense of the quarter and where his company is headed welcome back to mad money. Its great to be here. I have known glenn since the show began im going to start with a simple question in the era where we have to see tremendous people trying to solve a terrible epidemic, i say it has nothing to do with it. It does livango has established itself as the leading clinical Digital Health solution for abiliout 14 million americans struggling with chronic conditions. Those folks are going to have to be careful of coronavirus and Everything Else but at the end of the day it has no Material Impact on us. You have 94 retention that tells me that regardless of how low the economy goes and you and i both think it could because of corona these are people that like the product and theyre not switching. Our clients love us our members love us. Our Net Promoter Score is in the mid 60s. Were able to demonstrate we keep them healthier and most important for our clients who are paying if the bill and sometimes that is our members, were actually saving money. So its a winwin across the board. And thats why we see sales have been up. You know, if you look at our 170 Million Dollars that we posted for last year, that was actually, you know, the numbers have increased very dramatically 149 year over year growth and if you look at member growth, 222,000 now, thats up 49 and since we went public we not only beat the number but we raise the number each quarter. This is a business and you mentioned something that i wasnt going to talk about and that is profitability. And i think what that demonstrates is the Business Model is fundamentally sound now we have not said that were going to be profitable until 2021 because with an opportunity this large we want to keep investing. Were hiring data scientists were hiring sales people and were expanding the business. I remember we liked it and wow look at this its a sea of not Great Companies and this one popped up this is close to home. The diabetes issue. It is my youngest son sam was diagnosed when he was 8 with type one diabetes and my mother had type two and i was surrounded be i this thing called diabetes and i was astounded how hard we made it for people with chronic conditions not just diabetes but now livongo is focused on hypertension and Weight Management and behavioral health, we made it hard for them to stay healthy and livongo is all about how do we meet our members where they are and make it easy for them to stay healthy. It makes sense thats what we are about. One of our Favorite Companies is a partner of yours and what looks to be a good deal for both. I saw you talked to kevin recently. I like kechb so muvin so muc. Were the leader in applied Health Signals if you put those two together you get something very powerful and what it results in is for our members we are Getting Better information we have 500 million Health Signals. Were using those. We put them through our enginen a engine and we get better insights. Artificial intelligence. Exactly and its better insights and better nudges to keep people healthy and then we pair that with our 24 by 7 care and it creates a better experience so its a winwin. One of the challenges we have is the markets are focused on today. If thats all we ever did, people ask about are you Going International . Were getting tremendous interest internationally people say going to new markets, are you doing acquisitions and its so strong and we have it before we do anything and want people to get too excited and say wow it may be a better time to buy is march 11th. We have one, we had one lockup release and we did, you know, an early secondary we wanted to make sure that that stock, whoever wanted to sel that we placed it with longterm holders. We didnt have a lot of interest and if you look at a lot of that release. Biggest sellers. Interested sellers. But our biggest holders, what they have made is a longterm bet. They arent going anywhere our management team, you know, were restricted on what we can sell so we are in this for the longterm. I think it makes sense. We like this literally from the getgo this is the kind of stock that you will be able to say, you know what, i can buy more of it. It has nothing to do with this and thats the founder and chairman of Livongo Health mad money is back after this when you look at the Critical Issues facing our world, what do you see . We see a billion more people breathing free. We see access to fresh food being the global norm, not the exception. We see homes staying cooler, without the planet getting warmer. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Its time. Its time for the lightning round. Buy buy buy. And then the lightning round is over. Are you ready . The lightning round. Sampson in florida, sampson. Considering the very stable dividends would you buy, sell or hold epg its terrible and theres a lot coming in there. Brianna in rhode island. Booyah jim. Its been pretty bearish for awhile. Somebody didnt like the way it was and it should come on and i thought it was pretty good i like it here and booyah jim in new york. And want it to be your take on global therapeutics. It could be very interesting including sickle cell. Thats a very hard disease and very painful but i Like Companies focused on cancers and blood and thats why i liked them for so long im giving it my blessing. Lets go to nathan in colorado, in nathan. How are you doing im good. How are you . Hope we got good news from you today. Im talking about a stock that 85 of the gain is materials and 15 is, im calling about i like that theres been consolidation in that industry and the gas industry lets go to ashley in new york ashley. This is ashley calling with a big booyah to you. Im just wondering what your thoughts are on the company. And im not going to stick my head in that particular. Lets go to glenn in california, glenn. Booyah. Booyah, glenn. Is there some left in exact science. It should be because that test is pret thety good. But i have to tell you that they need to do more than that and its not enough right now and that ladies and gentlemen is the conclusion of the lightning round. The lightning round is sponsored by Td Ameritrade 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. VoMike Bloomberg has a recordgue of doing something. As mayor, he protected womens reproductive rights. Expanded Health Coverage to 700,000 new yorkers. And decreased infantmortality rates to historic lows. As president , hell build on obamacare, cap medical costs, and will always protect a womans right to choose. Mike bloomberg a record on Health Care Nobody can argue about. Mike im Mike Bloomberg and i approve this message. Well, a Million Dollar reward and anyone that can stop the coronavirus, i go with it any day of the week. Up fortunately we dont have that choice. We wont be getting the rate cut. And sets in we find ourselves and i can tell you that the virus isnt for some reason. Its a fear thats slowing down the economy. Fear is driving every day. People will try to avoid getting sick until they get sick and i dont know a soul that thinks that they wont eventually catch this thing. Thats how big the fear is were all waiting for the corona grim reaper to pay us a visit. Were now in the world of damage mitigation and the virus is here the fact of the matter is that a coordinated rate cut doesnt do anything to solve the problem. And it wrinbrings me to my idea the 100 million prize we have so many in this country. Lets give them a huge incentive to find a cure of a vaccine. Where are our measles, mumps, smallp smallpox, chickenpox any kind of medical doctor and thats right im not a doctor. Im a money guy. Thats how you know when you give people the Financial Sense to do something. As for the feds big rate cut ill take it and and they dont help. If were looking at a normal slow down, of course it would absolutely help. This is not a normal slow down this is a biological slow down can the fed invent a vaccine and come up with a treatment so you wont use a ventilator on a hospital or get you back to work faster what can the government do to help beyond offering prize money. We need to do something to tied over the millions of Small Businesses that likely want them enough customers to get through this new stay at home economy created by the virus youre not going to see them go down i wouldnt want to own the stocks for the next few months but the independents and mom and pops, they tend to be hand to mouth. Same as the smaller retailers or any business because no one wants to go to places where people tend to gather. Without even a virus so we need a prize and some loans. These are not something that the fed is going to do lets hope someone in washington is listening to the show and using rate cuts just arent going to be enough stick with cramer. At snhu we value your time. And your experience thats why well accept up to ninety credits toward your bachelors degree and offer discounts to active Duty Service Members and their spouses finish your degree. S. H. U. Dot edu. Finish your degree. When yowhat do you see . Itical issues facing our world, we see breakthrough medicines getting to patients in record time. We see harnessing natural gas unleashing the promise of clean energy. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Its only human to find inspiration in nature. And also find answers. Our search to transform. Farm waste into renewable natural gas led chevron to partner with california bioenergy. Working to provide an alternative source of power. For a cleaner way forward. Remember we like gold, we like some of the higher yielders its retail. They reported a not great number at all they had a decent number and it still got hit. This market is tough on retail so im urging you not to be a hero yet i will tell you. I will tell you its okay to buy retail and its not yet. Theres always a bull market somewhere. I promise to try to find it for you right here on mad money. Im jim cramer and ill see you tomorrow cnbc special report starts now good evening, everyone, and welcome. Im Tyler Matheson on day 65 of the Coronavirus Crisis stocks get hit hard on the day that the fed cuts Interest Rates massively and a new case is confirmed in new york. We saw a risk to the outlook for the economy and chose to act. The fed pulls the trigger Federal Reserve cutting Interest Rates by 50 basis points. But it wasnt enough prevent another major stock market drop. I think they should do mo