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tv   Mad Money  CNBC  January 17, 2018 6:00pm-7:00pm EST

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>> dan is a smart part of this show. >> i second that >> dan. >> i like your call on intel. >> nice. we are together, buddy. >> johnson & johnson we could all use some pharmaceuticals about for watchg see you back here at 5:00. "mad money" starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. you know what, we're so used to the government keeping a lid on
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the market, that sometimes we have trouble comprehending when washington does something incredibly positive for stocks or does something great for the economy for that matter. yeah, but that's exactly what is playing out here right now dow gaining right now. s&p falling. yet i am telling you, i find many people still refuse to acknowledge what's happened out of washington. the combination of lower taxes coupled with deregulation and a tougher line on trade is fantastic for the market throw in a booming global economy and it is a beautiful thing to behold. now the cynic in all of us has conditioned to believe that big business is all about rewarding shareholders and shareholders.
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hand over checks mostly to people who are already incredibly wealthy for example, we have heard over and over again if we let companies repatriate over seas cash, they will use that money this will help this whole country prosper. and to be fair, that is what these executives did the last time we got a repatriation holiday under george bush. welfare, for billionaires. there is some truth to that. but dedicated to tell you the whole truth. i could talk to you until the rest of the show some of the money is indeed going to the people who indeed
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need it. or, i can talk about apple so let's do that today apple using some jigigantc $250 billion it has over seas. apple committed to investing $350 billion into the united states over the next five years. including 38 billion in repatriation taxes this is bigger than the faebld marshall plan. where our country committed 140 to rebuilding after world war ii apple's tim cook is thinking bigger and it is about our country. 55 billion of that will be direct directly injected in 2018.
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probably a heck of a lot better the government could ever do first, there is the 20,000 jobs that apple announced today through direct hiring. second, when i sat down with tim cook last may he announced that the company was developing advanced manufacturing fund. money that is being put to work in places as wide range as factories in kentucky and texas. today apple increased the amount to 5 billion rolled out plans to teach people how to code. left a half a million jobs unfilled across the country. tim cook has explained on our show that when you consider direct employment in apple
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9,000 apple suppliers are created by the app economy how many people from the app economy? apple is supporting already more than 2 million jobs. hard to get your arms around hard to get your heads around. with this plan announced today, it wouldn't be a stretch to say apple could create a multiplier effect that could create millions of dollars. going to be receiving $2,500 in stock vested over three years so they can participate in the wealth apple creates for shareholders employees want a chance to participate in the firm's success. i am sure everybody will say out there, the winners will be the shareholders themselves.
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the shareholders will benefit from expanded buyback and expanded dividend, but what is stopping you from owning a share of this company. unless you say well who could afford that, i can only tell you that i have been recommending this stock since it was at five bucks. so don't you look at me. cook talked to today about how apple is a success story that could only have happened in america. now i have the chance to speak to tim this afternoon. and he expressed, he pointed out that the new jobs can be the kinds that can last. theyare technology jobs. including the $10 billion he is committed to expanding capital ventures like the one that broke down in reno, nevada
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that is what made me think of the marshall plan. cook told me something else today, he said while some of these efforts were indeed in the workings washington enabled most of this job creating to occur by chancing the tax code, a series of reform that tim has championed for quite a long time pretty strange wiley coyote over the cliff. this stock spent most of the day down add the trade on apple, that's been good. because of lackluster iphone sales. oh, no there is no iphone 9, just an x. by the way -- i fall back and
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say, you should own apple, don't trade it only after people put pen to paper realizing how much money would be left for shareholder, after the plan that it took off. the first part of the lift off was led by industrials, thank you boeing up another 15 points. asnl holdings, the capital equipment company to make semis. united health and ibm. i could call it a double upgrade. all of this is made more remarkable by the fact that it came after a brutal reversal day where many stocks opened at highs and then tumbled down. giving up all of its gains and then some. these affairs have in the past
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tended to lead to multiple down days but not in this market this market is back in beast mode let's go to my initial point love him or hate him, donald trump has created atmosphere that encourages companies like apple to invest in our country if the collateral damage is the shareholders make a lot more money, i am not going to cry about that sure i am using apple as a metaphor for what washington has given us yes, apple is one company and we don't know how many others will follow suit. a heck of a lot more than anybody expect whatever you think of the president, part of his agenda is working. this already strong economy could get even stronger and frankly, i don't know about you, i would rather have tim cook deciding what to do with his
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cash than anybody in the capital. >> john in indiana. >> caller: is at&t a good buy? what do you think? >> i agree with you. i think it is a terrific time to be at&t and i think your idea is a lot of -- makes a lot of sense in a 5.4% yield. how about brett in florida >> caller: booyah. long time follower, my stock is juniper. >> the service providers aren't spending as much as they used to i prefer the hybrid of sysco makes it so it is much more
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highly valued. how about jude in washington. >> caller: booyah. greetings from rainy west coast washington huge thank you for doing this awesome show for so many years you are funny and smart. it is an amazing combination. >> thank you very much >> caller: so my stock is entercome communications and it has been see sawing the last four months between $10.50 and $12.50. >> radio is a problematic median i thought it was worth owning. >> apple took it to the next level. tim cook thank you for using your ingenuity to do a lot more
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for this country than the government could on "mad money" tonight, i am offering a recap on where we stand. and then explaining how it is playing out in a fashion and what does he have to say about that these days. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to or give us a call at 1-800-743-cnbc ado dmeynbcong he
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i said it before, i will say it again, financials are the most important leadership group in this entire market. how exactly is this crucial sector doing let's start with jp morgue gan,
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citigroup and bank of america. last week i said i was concerned about the earning numbers particularly because i expected these companies to recognize major losses i worried that it might freak out investors. turns out there was no need to worry, they all delivered substantial earnings even as jp morgue began and citi gave you the higher revenue than i would like to see. then interest difference the interest they pay pore you for your deposits and interest they collect on loans or what they invested the numbers are the difference between the deposit rates and the bank
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jpmorgan saw it increase bank of america saw three bases points up to 3.9 citigroup saw a decline. wells fargo dedecline to 2.8%. what about alone growth? while it may be the single most important line for the banks itself, commerce runs on lending. how do they do jp morgue jan saw 1.7% increase. more importantly their commercial alone balances increased by seven%. commercial real estate loans are up by 9%
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total average commercial loans decrease marginally. citigroup, total loans up 5% bank of america okay up four% of last year. how about capital return plans this is one thing that investors care about with the tax cut, we can expect major dividends and larger buybacks now they all said that their approach in dividends buybacks won't change because of the tax bill all four of these companies have been gracious buyers of their on stock. i think they will do just that they have so much capital. so i think j morgan's quarter was positive forced the analyst to immediately raise their
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estimates. what is not to like? trading at fixed income maybe. but that shouldn't come as a stock. how about bank of america. i thought this was one of the best quarters from anyone in the group. bank of america is one of the financial markets you want to own. they have a jigigantic deposit base citigroup, always going to be considered noisy but i think it was a decent quarter. alone growth is encouraging. wells fargo disappointing. the company is still in the process of cleaning up its reputation after cross selling scandal. hence the decliningnet interes decline numbers. the company saw a big pick up in
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cost thanks to litigation expenses, wells, i am going to call it my least favorite. when you are trying to value the bank stop the key metric is tangible book value. jp morgan and wells are the most expensive. bank of america cheaper, citi is the cheapest my view, jp morgan remains best of breed you can follow along if you want the best play on rising interest rates, go for bank of america. best value of the group is citi. as for wells, out of the woods, but i prefer the others. they are all cheap so it is a bit like splitting hairs
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let's talk about goldman sachs sold off and sold off hard the reason their numbers were excellent, the disparity between investment banking and charity was enormous up 44% every year. however, goldman's trading business was down 34% year after year 50%. revenue up by 14%. still the strength in investment banking, lending and investment management mar marty chavez, i like this guy. buying the week in trading might not be temporary doesn't sound like they are
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getting benefit from the tax cut. even worse, they say the accounting losses have reduced their capital ratio which limits their ability to pass on the ratings. this is goldman sachs i am talking about, 10.7 earning investment retired 16% of the share counts in the last four years today's weakness is buying opportunity. goldman people get paid in a lot of cash but also a lot of stock they have to do selling here you know, my preference, jp morgue gan for best of breed, citi for value this group is the cheapest growth stock group in the entire stock market bill in new york.
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>> caller: hi, jim, how are you? i appreciate your thoughts on cme group. >> it is a winner. incredibly well managed. i am calling it a buy, buy, buy. larry from florida. >> caller: booyah. great show wonderful staff. congratulations with an eagle win. i ownpaypal. almost up 100% do you think there is any more room to run. >> i think it can go to 100. if you are up 100%, and you have your stock that is your basis, let's take some of that out. running a company that is running rings around everybody mike in missouri. >> caller: how are you doing thanks for taking my call. my question is about the stock
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walker and dun lop do you think i should sell or stay in it for a while >> always going be to cbre that is the one we like. that is the incredible stock the symbol is cbg. what a horse financials are the most important. much more "mad money" ahead. plenty of time talking about the tax rate effects but what about the consumers themselves i am going to talk to call urinion founder. on a tear over the past year is it time to reconsider sunplg or time to buy i am sitting down with the ceo so stick with cramer
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the consumer just doesn't know what to quit. she is spending twice as much as she did last year. and rippling through the economy in ways that could be unimaginable the strength of the consumer remains unappreciated in the stock market bottom line, for tons of retailers. while the new taxes favorable for the retailers and restaurants t restaurants, it is a one time change what matters more right now is how businesses is actually measured by the top line, the revenue line and when it comes to revenue, the consumer spending factor, it
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is the new wild card and playing out in fantastic factor consider the case of tiffany, this is a company that has struggled. in part because of high price point of the goods and because their new york store has been hit by the strong daughter the consumer spending again and the overseas customer is back. reversed going from minus 1% to plus 3% this year. i think it could go higher because there is a lot more money in people's pockets. a lot of money is going towards home improvement, you see that in the rising stock in home depot and advance which advanced 71 cents
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both stocks are rich in value. and i don't think either has peaked although a pull back even in day one like we had yesterday is now worth waiting for red hot video game space i think it is still worth buying even here at 70 bucks. the incredible success we are seeing already activism was huge last year. think about buying darden which is the parent of olive garden. and the possibilities that other concepts grow bigger than olive garden don't forget even after amazing run, darden sports a 2% yield.
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the auto parts stores will keep winning. after the amazing run of auto zone, my favorite is the stock of advanced auto parts don't forget the department stores khol's we interviewed them. macy's not as well that is without even factors what the company can do with its real estate. i would love to see the macy's in harold square become a mini mall kind of like a temple in berlin. tried earlier, and this is better environment consumer loves bargains like we
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find at walmart, dollar tree, dollar general if there is a dramatic decline in a tax rate, we are going to look back at these prices and say, darn, why didn't i get in there is no need to charge in right now. take your time maybe wait for another reversal day that we had yesterday. much more mad money ahead. my exclusive where is his company headed. as the cloud and data center place, i am eyeing one company that could bank off this trend don't miss my exclusive. stick with cramer. >> announcer: tomorrow, kick off the trading day with squawk on
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the street live from post nine at the nyse. >> reports getting longer overall. >> delve into page 70 here >> i don't know. >> on page 72 looking at why starts at 9:00 a.m. eastern. >> announcer: where he succeeded, came up short and still a work in progress trump-o-nommics reports all week on cnbc. prevagen. the name to remember.
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if you want to understand energy industry, you need to listen to guys that got it right. charif souki i like what i see. tullurian making investments in pipelines and even natural gas production now i mention this because this man's track record well let's just say it is second to none. one of the few executives who called the oil collapse. and he predicted the oil prices should be go higher. let's check in with charif
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souki. wi welcome back to "mad money." worldwide risk which no one was thinking was going to happen you got it right still stick with that forecast >> i have another problem today. it is cost of interest culture the resource is there. in order to get it into the water and export it to the united states i'm not sure it is there. and on the global basis, we had prices for years and therefore, all the producers are now not very financially stable. so they cannot invest. and the u.s. is a savior, however we don't have the infrastructure to take it from the water. now we have to get it from where it is produced in the water and
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that infrastructure doesn't exist. >> i deal with a lot of companies in the permium and they are leaving it for nothing. lowest cost in the world talk to me about building a low cost global gas business after you already built one and whether we need more than one. we are getting a couple of these now. >> so the fundamental issue is natural gas whether it is in the permian basis is always a dollar 50 or less and yet is at $3. there is a infrastructure. >> it is landlocked. but you are going to change that. >> if you are going to be in the
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commodity business, you have to be low cost producer >> you next which is rather amazing. now, the thing that i have always been fascinated by, is there are people who want to get on the charif souki train and saudi arabia has found tellurian. >> since we started the effort two years ago, first make sure you can build it cheap this is five, six years later. so we haven't suffered from inflation, so right around where we were. and then go source the property and the gas was cheaper it was today. so you have to find it and build
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infrastructure we are looking at the low cost producer, so people are automatically attracted to us. we have been in contact with 100 or more companies for the last six or nine months. >> and countries, you are a man of the world, i mean, you always had utility companies, do they still need our natural gas. >> they need it definitely we have the cheapest gas in the world. they need our gas, yes. >> you are partnered with general electric your division that you are working with is doing a good job. >> yes, and they are going to be a large supplier so they will have a maintenance program with us which will be a couple hundred million dollars a year so a very very strong partnership. >> i saw you buy some net
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acreage in haynesville which was an area that has been left for dead that has incredibly low cost is that the beginning of many acquisitions i know you are doing pipe too to get it safe from the apaches too. what is the plan or all pieces >> we want to have the flexibility to have the cheapest all time. >> how much do we have in this country? >> never stops it is amazing. and now, we are getting better at producing the natural gas itself and we are also finding a lot of natural gas which is associated with the price of gas almost doesn't matter. it is a by-product look at what happened, curtailing oil production because they can't do anything with the gas. >> you told me you can see it
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from the moon. i have to ask you about deregulation, is it easier now to get the permitting, what you need because of the trump revolution or is it the same? >> it is the same. the trump administration is prouder of us than obama administration so one brags about us and other hides. >> where is natural gas going. i am putting your faeet to the fire. >> i will tell you this, amount of gas that is already behind pipe or going to be found because of oil production at $68 a barrel is going to require over $150 billion of infrastructure investment over the next five years. >> and oil, you said risk premium, take it to 60
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take it to 70? >> i still don't like the risk. >> and you live with risk. >> things can go wrong quickly in the area that produces most of the oil and then goes higher and i also think they have their own area of infrastructure they need to invest on. >> excellent charif souki, chairman and cofounder of tellurian "mad money" back after the break. >> announcer: beyond the names and numbers. the impact for the economy opportunity begins here. earning central on air, online on mobile on cnb having their seat kicked on an airplane. being rammed by a shopping cart. sitting in gum. and walking into a glass door.
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>> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." vince in minnesota okay well let's go to nate, you are
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up >> caller: big minnesota viking fan, booyah to you >> what's up >> caller: looking at a high yielding, what are your thoughts on chimera >> i don't know what they are doing. let's go to maryian in florida let's go to jim in anglewood cliffs, oh, that is me mary ann in florida. >> caller: got a question about intel. has been in the news with the
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security problems and now a class action lawsuit going on. and i'm wondering should i hold on and see what happens. >> i am going to tell you this, and tell you straight. that stuff is nonsense it will not matter you will not look back or see why that stock went down i trust bryan, he is a good man. let's go to brian in texas. >> caller: brian in freezing plano, texas can you make me money on exelon. >> no. i prefer dominion. let's go to craig in new york. craig. >> caller: 20 first century fox.
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>> i do prefer disney. go buy disney. that is the conclusion of the lightning round. >> announcer: lightning round is sponsored by td ameritrade theres out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.
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after an incredible day for the average, what do we make of a red hot software splunk.
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this stock is up 62% last year voting from $83 to $90 just from the beginning of the year. we fknow the company is growing rapidly. the space has gotten more crowded. you have to figure out if the stock has too much doug muir is the ceo of splunk i need you to tell them, because they won't believe me if i say >> it is hard. mckenzie has a study out there
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drops off to be low 60 to 2 billion and below 20 to 4 billion. >> you have to have a plethora and breadth of clients i am seeing cisco, home depot, coca-cola. what are you doing that everybody likes so much. >> data keeps going. data is what powers businesses in this machine data area, that segm is growing 50 times faster than traditional business data that is part of what is getting organizations on the buss to focus on gaining value to that data daimler is a great example they are doing everything on security analytics platform from securing their manufacturing
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lines to vehicles. >> we have had a lot of companies that say they are mining data. why does splunk stand out. >> i meet with hundreds of customers and they are wrestling. what data do we look for how do i find big data and how do i correlate these colliding streams. splunk distinguishing tello phonic a couple of different the first going back to pedia by bytes. a massive scale. how do i get real time information. the whole power of machine data, i got to get quick response time
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so i can send respond. i need insight, ease of use. and splunk allows that same data set to be interrogated by different users and get different answers. the data you are bringing in to secure your data >> one of the things, people decided that the death star of amazon, was going to wipe out retail and then retail is doing better than i thought. the retailers, like home depot have hired splunk to be every bit as good as amazon. and what is change is that your company is helping the retailers. >> going back to that single data with many users, customers whether you are ordering a pizza by your phone or on amazon. >> dominoes is a customer.
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>> whether you are hailing uber or a lyft. every one of these companies are leaving bread crumbs, that can give you great insight to customer behavior and trends if you want to pay attention to data. >> we had carnival cruise on, they interpret data with you >> they do carnival bake a customer in the it systems intelligence range. they are using achlt i to allow them to get predictive understanding. if you think about a cruise ship, it is a floating city, whether you are a city or a big organization, you have the same security, it resiliency, and carnival is using ai, and splunk
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to get that experience >> now i want to ask you something, because you are a straight shooter and imaginative. block chain fascinates you people are trading block chain, they don't know block head to memphis, to tina turner. what does it mane? >> cloud offering, data lives anywhere and data -- distributed fashion. block chain is really just this really interesting new iteration. been around for a long time on massively distributed systems that can operate on a trustless mechanized manner. >> a lot of functions of banks. >> there is all kinds of threats and opportunities out there. we have been looking at block chain how can we incorporate
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into the splunk offering and so we can help with some of the problems that they are experiencing on scale and resiliency and overall the integrity of those systems. >> every time i see it, the company grows bigger and i don't think people realize how hard that is to happen. most platform. doug muir, ceo of splunk good to see you. thank you, buddy at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital.
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(barry murrey) when you have a really traumatic injury,g) we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first
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and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪ >> crazy, what can i say this asml number played a major role. look at the semiconductors all because of one company
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i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you tomorrow >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ i'm from trophy club, texas, and my business is inspired by my beautiful girlfriend. i'm 11 years dusty's junior. and when i started dating dusty, it just clicked. getting the taste of dating an older woman, i-i noticed so many more attributes that she has, opposed to a younger woman. she's respectable, she's playful, sexy.


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