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tv   Mad Money  CNBC  November 7, 2016 6:00pm-7:01pm EST

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usb slow and steady, wins the race. >> does that add torque? >> i'm melissa lee, see you back here tomorrow at 5:00 for more "fast money." "mad money" with jim cramer 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 teach and educate you. so call me at 1-800-743-cnbc or tweet me @jimcramer. oh, so the markets fell in love with hillary clinton? is that the bizarre conclusion we're supposed to draw from today's monster rally? the best move for the major averages since march? where the dow surged 371 points.
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s&p rocketed 2.2%. nasdaq pulled away at 2.37%. no, no, no. listen to me. what the markets love is certainty. for months clinton seemed like a sure thing, but then those new e-mails surfaced a week and a half ago and stocks got slammed as the race suddenly seemed like it could go either way. that sent investors fleeing to the sidelines, raising cash, not because of trump but because you can't gain an election if you don't have a clue who is going to win. now the fbi has said the new e-mails don't change anything, meaning they've taken the possibility of an indictment off the table. so things are looking a lot more predictable again, at least for now. this morning, "squawk on the street" co-host joe concernen asked me in the cross talk i do with him whether i missed just
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talking about corporate earnings. what a blessing of a question because i sure do. i long for the market to be, well, a market. the market again, where we value companies based on how well they're doing, not as part of a vast basket that goes up or down depending upon how certain we are about the results of the election. stocks have become creatures of the polls, not the sum of the profits and prospects of the companies underneath. i admit that for the first time in about 30 years, except for when i was on vacation a couple times in some weird places, i didn't even crack open the chart book. that's right. or at least bother to download the charts now that they don't come by hand to your door that the standard & poor's company sends me every weekend. i mean what was the point of looking at those charts? we don't know who's going to win, so we don't know what we should be looking at.
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for once, the charts seem totally irrelevant. but if today's averages are right about forecasting a clinton victory, and this isn't like brexit where so many people got it wrong, then after election today, tomorrow things will go back to normal and we can start thinking about which companies have the best earnings, best products, rather than which candidate will win at the ballot box. this whole earnings season comes and goes, and each day we evaluate. i don't want to do that. i look back from the very beginning of earnings season. who's done the best? now, okay, we haven't heard from the retailers that's later in the week. but we have a really good call on everybody right now. so i went back in and just thought about the earnings, not the charts, and hands down, hands down it was the banks. they reported so long ago, many of us have forgotten but they simply generated much bigger profits than anyone expected when they reported. jpmorgan delivered a stellar quarter with excellent loan
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growth, good sales and trading, some terrific merger and acquisition advisory. it was superb. blank of america blew away the numbers. i thought the loan growth and credit concerns were as great as you can get. citigroup may have been the strongest. biggest surprise both in terms of earnings and prospects for the future. its stock is 15 points of upside just to catch up to the rest of the group. it's owned by my charitable trust which you can follow along at actionalertsplus.com. goldm goldman sachs can still travel far before they run out of gas. the regional banks have outstanding numbers. i highlight key corp. i thought those were good. i thought they had the best growth, best net interest margins of the companies in my purview. bb & t was no slouch either. the only disappointment in the whole group came from wells
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fargo, which not only had a really lack luster quarter, but is now regarded as the most scandalous of banks. i'm grateful that my charitable trust owns shares in citigroup, but i'm absolutely horrified that it has a big position in wells fargo, which has really hurt. still we've told actionalertsplus.com subscribers that wells fargo can thrive if the fed raises interest rates. of the soft financials, you had to be impressed with visa, mastercard, and american express. all of them were much better than i was looking for and their stocks remain reasonably valued. the second group that's performed really well this earnings season, the social, mobile, and cloud stocks, including google, facebook, and amazon. more on them later. you know what? i went over some of these quarters this weekend. adobe was really good. workday was good. you know what was the best of the best? servicenow.
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best of the best meaning fastest growing, which is the tragedy jectry frank slootman strased out when he came on "mad money" not that long ago. that company has game. these stocks are widely perceived as not being hostage to politics, just to their own ingenuity and sales momentum. let's not forget the semiconductor companies with the exception of intel had fabulous quarters and they've generated a lot of justifiable takeover talk. one other tech darling not talked about enough, accenture, acn. don't type it in. it always comes out can because of that type stuff that happens. i hate that stuff. anyway, this consulting company has become the teflon don of the group, acn. the next winning sector is a puzzler. transports. i can't think of a sing railroad or airline that made its numbers but i also can't think of a single one that won't be doing better next year and that's what matters. next year is what we care about. i like united continental as a
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comeback kid. i think that norfolk southern truly impressed as a railroad that should have had far worse numbers than it did. priceline, which reported a terrific quarter after the close, continues moving the ball along with the concept that the world of travel is getting better. basic industrials surprised in a lot of ways. three themes stand out. an uptick in chinese business, a turn in europe, and a robust airline cycle. boeing was the leader here. i think it can go still higher. united technologies and honeywell also delivered good quarters. we got mixed results from the consumer packaged goods group, and i would call out only pepsico and procter & gamble as to that were really compelling because they each had terrific top line numbers. procter especially, much more than i thought, and they made a lot of money. they had go organic growth. those are both buys. energy profoundly mixed. if you had fantastic growth like eog and the independents or chevron and the majors, you were saluted with higher prices. but if you had no growth like
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exxon or spent too much money, bought too high, occidental, you did yourself or your shareholders no favors. now, let's talk just outright disappointing. the restaurants, miserable. people are staying home. other than cheesecake factory, the results were nothing to write home about. starbucks was mixed last week. we didn't get the kind of upside surprise we're spoiled by, but it wasn't disappointing. i fear starbucks is being carried up by the tape, though. it means that there's futures buying and it could drop back if futures take a header. domino's pizza is really a technology company that delivers speedy pizzas to your home as part of my stay-at-home thesis i've articulated night after night to you. meanwhile the home improvement thesis took a huge step back. weak numbers, sherwin williams, ppg, whirlpool. i think home depot is still a long term buy but let's face it.
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the luster of that group seems lofts for now. home depot had a nice bounce back today. into the week, we picked up some newell brands for my charitable trust. i liked what ceo mike polk said about his company. the stock seems like it was simply being powered higher by the futures again today, though. but i got to ask you, i think real buyers are going to come in and buy newell itself. why not? what else? the apparel segment got hit hard. competition. nike versus under armour. and then there's health care. we're getting a nice snap back rally in the group which got severely oversold, but it's time to recognize there are winners and losers in a sector that formerly just had, well, lots of winners and only a couple losers. of the drug stocks, merck delivered the best quarter that i saw. it was understated about the possibility of keytruda being a true anti-cancer blockbuster franchise. that stock can go higher. i'm still reeling from the lack
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of respect given to celgene for their fabulous numbers although it was finally able to rally today. can i go all the way back tot beginning of earnings season and tell you that johnson & johnson reported eons ago, and it was fantastic. it was totally undeserving of the punishment meted out to it. val yant remains a total mystery, one of the few stocks that fell today. the cost containers, meaning the health maintenance organizations and the drug distributors almost universely miserable. i think you need to use any lift in the futures like we got today to consider how the companies did. maybe use some strength to ring the register on the ones that didn't have good earnings and there are definitely more losers than winners. let me give you the bottom line for this whole earnings season. if you look at where the money wants to go and you figure that this election will pass a week from now, we are going to begin to do what we do best in cramerica, talk about companies again. i think that the above description of the earnings season to date will hold up, not
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only hold up for now but until year end. it's where the justified gains are. it's where we're going to keep coming back to. ron in my home state of new jersey, ron. >> caller: booyah, mr. cramer. >> booyah, ron. >> caller: verizon had a terrible quarter, and it was in freefall. and i want to know if you think it's a good time to buy it now or wait. >> you know what, that's a really great question because i, too, was not impressed with the quarter. the stock is down from -- it's down nine points. it's got a good yield. i'm going to give the answer that it is time. now, i know t-mobile has been aggressive. sprint's been great, but i think verizon's a good company. i would be pulling the trigger of verizon right here. eric in new york, eric. >> caller: hi, jim. great show and great staff. >> thank you. my staff is so good. maybe me feel good. one of them is on vacation driving me crazy. heather. she's got some weird one of those reply lines.
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i'm having a great time in this country, don't bother me. go ahead. >> caller: i'm looking for a growth stock. you have mentioned a number of times in the past and you have had guests on in the past for constellation. and do you think at the moment it's overbought? >> here's what happens withcons. it goes down a little, down little, and suddenly the cloud lift and it goes higher. do i like to buy a stock up six? no. but stz is doing incredibly well. by the way, high west whiskey, which they were serving this weekend. slamming it at the bar i went to. i'm not going to drop a name that i went to polo. that would be rude. but it was amazing. richard in florida, richard. >> caller: hey, jim. love your show. >> thank you. >> caller: i currently own kimberly-clark from about two
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years ago. >> right. >> caller: i got it about $101 a share. with kimberly-clark being at about a 52-week low and having a p & e of about 20 with the industry afternoverage at about i'm thinking about buying more. my questions are why is kimberly-clark down so much, and is there a danger of losing that 3.2 or so dividend? >> first of all, the dividend is totally safe. mr. faulk -- they care more about that dividend. but the quarter was not a strong quarter. down 10%, though. kimberly, i would -- if i wanted to buy 100 shares, i'd pull the trigger on 25 right here and then try to get to the next level under 110. maybe shall able to get that yield at 3.5. i know this may sound hard to believe, but it's true. the election is nearly over. i will be so happy. particularly if the eagles win
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next week and the election's over. all right. when it's all said and done the earnings of companies will matter again. stick with the winners like banks or beloved social and cloud stocks. on mad tonight, presidential politics have turned some companies into punching bags. but as we approach the end of this remarkle election, what do you do with the stocks that have the most to gain or lose depending on the outcome? tonight i've been saving this piece. two pieces. i've got two names in the presidential postgame play and you cannot miss it, especially if you're even near them. then a company that profits on online shopping. is this your under the radar way to play amazon? i'm going to take a look. and they were the darlings of the market. four stocks that came rallying back with a vengeance today. you want to know what they are? you have no choice. you got to stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets.
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send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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i said it before, and i'll say it again. whoever wins the election tomorrow will be able to find ways to help you try to make money. now, at the moment it sure seems like the polls favor a clinton victory, but the polls have been wrong before. that's why tonight i want to help you prepare your portfolio for the prospect of a trump presidency. what happens long term if donald trump wins the election? i'm not talking about the near term where i expect we'll repeal today's gains and go lower still before the money manager who's were banking on hillary finish at the top reposition, and the market can rally again. no, i want to discuss actual policy and what it could mean for the stocks of individual companies. the one thing that stands out with trump's platform, the one issue that he's been totally consistent on from the entirety of the campaign, from the day he started, is his stance on mexico. if trump wins, he's going to build a wall along the border, a
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great wall. and he's going to try to renegotiate or simply abrogate the north american free trade agreement, aka nafta. i'm not a politics guy. you know that, and you're free to make up your own mind about the merits of these poll citizen. cracking down on mexican sports would probably provide a nice boost to american manufacturing jobs but also make all sorts of products more expensive for american consumers. i think you can argue that one either way frankly. what i care about, though, is the stock market and what matters for the market is that in the scenario where trump wins the white house, he's likely also going to have republican majorities in the senate and the house of representatives, which means if he wants to build a wall and renegotiate nafta, he'll probably be able to do so. the question for us is how do we play it? who gets hurt from getting tougher with mexico on trade? okay. consider what happens if trump tears up nafta. remember, in a big picture sense, nafta does two things. sure, it ships jobs overseas.
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undeniable. but it also allows america to buy lots of cheap stuff from mexico. also undeniable. if you want to understand the impact of a trump presidency on business, we got to look at a company and size it up. i think it's worth looking at the mexican company semex. that's the maker building materials like cement, concrete, whose largest end market is here in the u.s. it trades under the symbol cx, and its stock soared today. investors are betting heavily hillary clinton will win the election tomorrow. suppose that the protocols are wrong a -- polls are wrong and trump wins. what happens to semex? all right. let me first give you some background. semex is one of the leading manufacturers of cement and concrete, but it gets 28% of its sales from the u.s. that's 28% of the business that is vulnerable to any kind of renegotiation of nafta. now, over the long run, cemex hasn't been an impressive stock, stuck trading between the single
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digits and the low teens ever since the great recession. however this past year the stock has made a comeback, rallying from $5 and change to nearly $9 and change as of today. that's a 68% gain. so what's behind this turn around in cemex and can it continue if trump wins election tomorrow and tamps down on trade with mexico? cemex is a heavily indebted company. they borrowed a lot of money at the end of 2006 to acquire a company calls rinker. that turned out to be a very poorly timed deal coming right before the financial crisis. then in 2008, the company's currency hedging strategy backfired. the peso plummeted in value versus the dollar, causing the stock to get completely obliterated. ultimately it managed to stay afloat but had a very hard time coming back from the great recess. lately it has gotten aggressive about trying to clean up its balance sheet. it paid down $1.4 billion in
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debt since the beginning of the year. at the same time, cemex's fundamentals have improved dramatically. the compa when you adjust for currency fluctuations and divestments, their sales have increased by 5% year-to-date. even better, the company's gross margin, what they make after the costs of good sold, has expanded by 180 basis points for 2016. hence the huge earnings expansion. best of all, their free cash flow is exploding. it is up 642% year-to-date. now, some of their good fortune has something to do with the strong u.s. dollar. over the past decade the peso and dollar exchange rate has gone from 11 to 1 up to 18.6 to one as of today. that means, by the way, when you go to mexico, it's real cheap if you come with dollars. for a company like cemex, the
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strong dollar is a huge blessing. maybe the most we could find of any company we're looking at. each dollar they make here translates back into more pesos, and the favorable exchange rates also means it can price its goods more cheaply than the u.s. competition, allowing them to take market share. welcome to nafta. in short, it's been on a roll because of nafta. what happens to this company if trump wins the election tomorrow and flushes nafta down the toilet? that company needs to build new facilities in mexico and that requires cement. in fact, the mexican sales are up 16% year-to-date even though the mexican economy is not doing that great. trump wants to keep our companies from monthsinving. at the same time he wants to make it more difficult for companies to export their goods to the u.s. i'd say cemex is the perfect
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example of the kind of company that gets hurt if trump whiches the white house, except for one thing. the wall. if trump actually builds the border wall and gets mexico to pay for it, who do you think they'll use to supply all that concrete? cemex. however, i don't think that's enough to offset the damage that could be done by renegotiating nafta. i mean i kind of felt like hi to mention it because i don't want people to say, jim, how about the wall? how about the flip side? cemex may be a sell sell sell in the event trump wins tomorrow. most investors concluded that clinton has this election in the bag. cemex is already baking in a clinton victory. i suggest waiting for a pullback before the pull the trigger on cemex. especially since it could get crushed if trump managed to pull off an upset.
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here's the bottom line. elections have consequences not just for u.s. companies but for foreign ones as well. we know that donald trump wants to renegotiate nafta, and while that could potentially be very positive for american workers, it would really stink for mexican exporters like cemex. that's why i think this stock -- well, i see it as one of the biggest losers from a potential trump administration unthless ty get some of that fabulous wall business. much more "mad money" ahead, including another stock that's been at the center of election rhetoric. i'm eyeing one mexico-focused rail player that could have a huge swing once the results start rolling in. plus from around the world to around the corner, xpo legendistics is behind the
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costco and home depot. if you missed the move after a more than 30% run in 2016, i'm going to sit down with the ceo, and he tells a great story. facebook, amazon, netflix, alphabet, fang is back. it took a big bite in the rally today. i'm going to let you know what's next. stay with cramer. ah, beth. so the elevator is stuck again. with directv and at&t you can stream your favorite shows without using your data.
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that makes you more powerful than being stuck in an elevator with a guy with overactive sweat glands. sorry, rode my bike today. cool. hey it's your tv, take it with you. watch all your live directv channels, on at&t, data-free. will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com.
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even though the stock market roared higher today in anticipation of a hillary clinton victory tomorrow, not because investors particularly like hillary but because they like certainty, and now it seems fairly certain the democrats will take the presidency, and the republicans will hold on to the house of representatives, leading to four more years of gridlock. we still need to consider what happens if the polls are wrong and trump manages to pull off a win. according to nate silver, he's
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the forecasting guru from fivethirtyeight who has the best record of anyone i follow. donald trump has a 30% chance of winning tomorrow, and that's enough of a possibility we got to take it seriously. i want you prepared for any scenario regardless of who wins the white house. i have to do that. that's my job. now, earlier tonight, i talked to you about how a company like cemex would get hurt if trump wins and gets to implement the two main policy proposals, the border wall with mexico and a whole sale renegotiation of nafta. it's a very big deal. but there will be plenty of other losers if that happens and we need to discuss them too. so who really gets hurt in this scenario where we build a wall and crack down on mexican exports? first of all, if trump wins the white house tomorrow, i think that's going to be very bad news for kansas city southern, ksu. the main railroad that connects meex with the united states.
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that's why the stock rallied 3 bucks on the news the fbi hadn't found anything incriminating. in a trump scenario, kansas city southern is going to get slammed because trump wants to crack down on mexican imports. that's ksu's bread and butter. i think this could be one of the hardest hit companies under a possible trump administration. how much exposure does it have to mexico and how much damage could ripping up nafta do to their business? this is a railroad that operates all over the southern and central u.s., but after nafta was passed more than 20 years ago, mexico started privatizing its railroads and by 2005, kansas city southern had acquired all of tfm. that's the main freight railroad in northeast mexico. these days roughly half of the company's miles are located in mexico and transporting goods across the border has become their main growth driver, especially cars from the booming mexican auto industry. this year, mexico is expected to
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build 4 million automobiles, around 81% of them will be exported by ksu. it controls 40% of the across the border auto trade. what happens to this company if trump is elected and he builds the border wall and shreds nafta? obviously the wall is all about controlling illegal immigration, not trade. but that doesn't change the fact that building a big, physical wall would significantly hinder transportation routes between mexico and the u.s., routes that kansas city southern relies on. as for nafta, trump wants to renegotiate it in our favor or pull out of it altogether if the mexicans won't come to the table. that's likely going to result in hey bunch of tare riffs on mexican exports which means we'll import lots and lots and lots of, let's say, well, it will be a dramatic new world. sometimes i think what would it look like for ksu? it's just a lot less stuff coming. given that ksu gets half of its
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revenue from mexico, carl quintanilla said to me, why is this ksu up so big? because half their business is from mexico. anything that messes with nafta is going to impact these guys' numbers. you're going to slash numbers badly on wednesday morning if trump wins. now, on its latest conference call, the company waxed positive about the mexican auto business, which is expected to produce 5.3 million vehicles by 2020. many of these vehicles would be transported north on ksu's trains, but if trump gets his way on trade, that's going to be like an ice pick in the skull of mexico's auto industry. in short, if you get rid of nafta or even just renegotiate it to be less favorable to mexico, that's going to crush ksu's sales and earnings, making this company's stock maybe the biggest single loser in a trump presidency. what else will go lower if trump wins tomorrow? all right. ever since trump locked up the republican nomination, the u.s. listed i shares, msci, mexico
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capped etf, or what everybody calls it, the eww, has been driven up or down based on the likelihood of a trump victory. makes sense. if he's able to scrap nafta, that's going to be bad news for the mexican company, that's why the eww got hammered and why it rallied more than 5% today when the fbi dlacleared hillary clin today. but going into today, many investors used this etf as the ultimate proxy to bet on a trump victory. what is in this eww? there's american mobile. that's the latin american cell phone provider. then you've got foe men tow mexican cano, a company that owns fems, along with a host of different mexican and colombian retailers, and gas stations. the third largest group of the eww is the number three bank in mexico by deposits.
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there's the mexican media company that's also a cable operator. number five is cemex, which we talked about earlier. finally, the six largest holding is walmart mexico, which as you can imagine is walmart's mexican subsidiary. the thing this keep in mind is if we toss nafta down the drain, it won't be just mexican exporters that will get hurt. the value of the peso is going to plummet. the action in the eww today suggests that hillary is going to win, as does this epic rally in the rest of the stock market. but if the polls are wrong and the stock market's wrong, you better believe this mexican oriented etf will get hammered. it will be the big short. here's the bottom line. we don't know what's going to happen tomorrow. you see, i got to prepare you for any outcome. given the two main planks of donald trump's platform, the border wall and the need to renegotiate nafta, you better believe that companies with big mexican exposure are going to get hurt in the event of a trump victory. so if he managed to pull off a
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surprise win tomorrow, you need to sell ksu and the i shared mexican cap etf. ksu in particular would make a terrific trump short, but don't jump the gun. wait until the results come in and then you'll know exactly what to do. robert in north carolina, robert. >> caller: hi, jim. thanks for taking my call. >> you're quite welcome, robert. >> caller: i've watched you from the very beginning. my question is about gm. they on schedule to earn $5.86 this year. why is their pe about one-third of other dow blue chip stocks? >> what a great question. i puzzle over this every morning with david faber. he would say that's because of the self-driving cars coming. wroe say because uber is coming. he would say because of the major restructuring that is going to go on in this industry. i would tell you that gm is doing incredibly well in china. u.s. is kind of plateaued.
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europe, not so good. and latin america, terrible. but i have to tell you, 4.75% yield with what i regard as a big cash position building, i am in favor of buying general motors. this election has been anything but predictable, so we need to prepare for every scenario. a trump presidency would be no friend to stocks like kansas city southern or others with big mexican exposure, worth having on your radar screen. i'm sitting down with xpo logistics. from food to fashion, this company helps business move. but the double-digit movement in stock in the past week caught my eye. i'll talk with the ceo next. plus not all fang stocks had sharp earnings, but the market sure loved them today. i'll explain what's behind the change of heart. but first it's an eve of the election fast-fire lightning round! so stick with cramer!
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how can you tell when a rod hot stock has more room to run? consider the case of xpo logistics, the provider of
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transportation and logistics services with a stock up nearly 32% since we last spoke to the ceo on july 20th. at the time it seemed like it was finally getting some much deserved appreciation from wall street after its stock had spent over a year kind of lost in the wilderness. now that judgment seems more true than ever. i like this story because xpo is is the fragmented logistics industry. a little over a year ago, the company bought comway. that deal came after xpo acquired the european transportation play for 3.5 billion in april of 2015. we know xpo report aid truly fabulous quarter in early august. deutsche bank called it a dream quarter, and it sent the stock surging 14% in a single session. then when the company reported again, xpo shot the lights out for the second time in a row. even though its revenues came in a tad light, albeit still at 57% for the year, the guidance was
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fantastic. management also made some very bullish comments for 2017 and 2018. the stock jumped from 32 to 34 in the news. can xpo keep climbing? let's take a closer look with bradl bradley jacobs, the chairman and ceo. mr. jacobs, welcome back to "mad money." brad, this was an amazing quarter because you've done so many of what you said and then some. you buy comway which a lot of people said, wow, that is too big. you immediately sell the part that you don't necessarily fit in for a half a billion dollars, paid down some debt. this has made you the second largest provider in north america. 99% of u.s. zip codes. you really have become the brokerage firm and the delivery company that we've all been waiting to have. >> yeah. so that's been the plan. the plan has been to stake out positions in the fastest growing parts of transportation and logistics and be either number one or close to number one. >> now, when we say last mile,
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which is really something that per vads a lot of your documents, we're really speaking about e-commerce maybe for bigger things, not just for the little ones that fit on the back of a ups truck. >> exactly. so we're the leader in last mile logistics for heavy goods like appliances, like home electronics, for furniture, home exercise equipment, and we'll arrange more than a million deliveries a month of last-mile logistics. >> how does it work with this menlo? you've got this -- i guess that was the hidden julg of comway? how does that dovetail with what you got. >> menlo was a few things. number one, it was a contract logistics company, which we've integrated with our existing contract logistics company. brought some marquee customers. it had a truck brokerage business, which we integrated with ours. >> now, i know i'm not a political show, but you have a lot of -- there's a lot of stuff
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about how great insuring with mexico is, okay? under one candidate, under president trump, it's arguable that mexican -- let's say, traffic could be disrupted so to speak. but under clinton, let's say it's business as usual. this mexican franchise is gigantic and growing, isn't it? >> the mexico business for us is approaching $1 billion. it's an important franchise to us. it's growing fast. we have multiple avenues of exposure to it in truck brokerage, in intermodal and in expedite. yes, clinton would be a better candidate for our business than trump. but if trump gets elected, we'll figure a way. >> how is yoeurope going? >> we're in most of europe, but we're primarily in three countries, france, uk and spain. we have strong positions in both transportation and logistics in those three countries. uk in particular, we have a big e-commerce presence, and that's really booming. >> brexit hurt you, help?
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does it matter? >> it didn't really affect what we're doing because we're in e-commerce there and we're also in food and beverage. brexit or no brexit, people eat and drink. >> one of the things that struck -- my wife just came back from europe. she said that the system of moving large goods -- i'm talking about refrigerators and stoves and things that you would get at costco and somehow xpo might get it to us, isn't developed at all. is this an opportunity for you? >> absolutely. one of our big last mile clients here in the united states, akia, which happens to be a european company, asked us to come over to europe and do a pilot project for them, which has gone very well. we're looking to transplant that to other customers in urn. >> it's true they're just not that developed, but they still use mom and pop stores that really can't deliver things. >> they're more developed in some things, less in other things. last mile, they're less developed. >> give me a sense of where we are in this country because there's people who tell me that there's a slow down. we got that graemt employment number on friday. some companies are doing so well.
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some companies aren't. you've got the whole panoply. where the heck are we? >> depends what part of the economy we're talking about. the industrial economy has been in a funk for almost two years now. but they're not as funky as they were even six months ago. >> okay. >> so there might be some little improvement from the bottom there. the e-commerce part of the industry, the e tailing part of the business is booming, and i think this season between now and the end of the year is going to be very strong. one thing about our company is our growth plan has lots of company-specific initiatives that are independent of the macro. for example, procurement opportunities to take out costs by consolidating 10,000 vendors down to 2,000 vendors. >> you guys are in the sweet spot. you sat here. you've promised certain things. they were very hard to do, and you delivered above and beyond what you said you would do. that's brad jacobs, ceo of xpo logistics. "mad money" is back after the break.
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now that fedex has helped us simplify our e-commerce, we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce.
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>> announcer: lightning round is sponsored by td ameritrade. >> it is time! it is time for the lightning round! that's where i take your calls
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rapid fire. you tell me the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." start with rusty in rhode island, rusty. >> caller: good evening, mr. cramer. your show is delightful. >> thank you. >> caller: you're 75% analytical, 25% director, 100% entertainer. >> i want to make it come alive so people can be better at their own money. that's been the goal for 11 years. i'm not going to deviate. how can i help? >> caller: i'm calling in regards to first solar. they reported their third quarter last wednesday when they reiterated their next year revenue, the analysts ran away from the stock. is it a buy, hold, or sell? >> rusty, come on, on that conference call, you heard that they pushed back a billion dollars worth of business. there was no way you could get behind that stock.
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absolutely not. that was a very bad call, man. but i thank you for the kind words. how about shridar in virginia? >> caller: hi, jim. thank you for taking my call. how are you today? my question is given all the -- what is your take on hortonworks? >> you know what, it's down so low, i don't think it's such a bad buy. i'd speculate on it. how about andy in california, andy? >> caller: booyah, jim. booyah. >> i got a question about comfortis. >> no medical device stocks. it looked like a good idea. that was about all it looked like. and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you.
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shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade.
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can you believe they came right back to fang? it's amazing to me that a last minute hillary clinton surge on the eve of the election brings buyers right back to the fab four. facebook, amazon, netflix, and google. now alphabet. let me tell you how incredible this really is. two of the four fang names issued guidance that people thought was downright disappo t disappointing. one of the four surprised you with decent earnings and some okay revenue growth, but no boost in the forecast.
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the final one simply did the numbers, and that's all there was to it. yes, they were the first to be reached for today, the first to be bid up, and they had very little going for them with the day they reported. let's take them one by one and start with facebook, the letter f. last week facebook reported a stunning quarter driven by a 59% increase in advertising spending. this is off a $4 billion base, not some chump change amount. wall street was looking for 97 cents in earnings, facebook give you $1.09. revenues were higher than expected in an era where all we hear about revenue growth is so hard to come by. but the stock was down ten points. it was down 5% after it already dropped four points from its high because facebook wants to preserve the user experience and spend in order to improve on video and next generation technologies which requires hiring the best people.
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now, enough time has passed since that report last week that people realize no numbers were cut. things are looking pretty darn good for the company. you know what, i think people forgot why they sold, so they came rushing back. amazon, same story. miraculous revenue growth. sales up 29%. $32 billion. but the company said it would be spending a year in order to conquer india. that sent the stock into a tailspin. now we see the stock quietly coming back. why? i think that when we look back at the earnings period so far, we're blown away that such a large company could still manage to grow at that scorching pace. again, the sellers forgot why they sold it. the buyers see it as an opportunity. how about netflix? the stock went from $100 to $119 after it reported and then rallied four days straight before peaking at 127. then meandered down to 122 on nothing last week. it's an oddity here, but unlike facebook, netflix got a huge
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amount of credit for saying it was going to spend more than people thought. yeah, i know it's a head scratcher. for some unfathomable reason, netflix is allowed to do so and can see its stock climb while facebook can spend and only get clobbered. no matter, this one's within striking distance of its high. it was the most damaged of the fangs going into the year, so it stands to reason that it has the most to catch up on. alphabet, formerly known as google, handily beat the estimates, earning $9.06 a share. but the company happened to report just in time for the election to start tightening. so this stock rather than going up actually rallied a tad and then it tumbled from $822 to $781. i would put alphabet in the category of stocks that never should have gone down as many of its businesses, especially its mobile business, are very strong. it was just the market that took it lower. there was nothing wrong with alphabet. isn't it all crazy? the answer is twofold.
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one, absolutely it's crazy. the market's ability to forgive and forget is legion. second, though, in my 35 years of picking stocks, i've always found this phenomenon to be the case. the favorite growth stocks stay the favorites until they stop growing. none of these companies actually stopped growing. they all shocked the street with outsized growth. their forecasts may have left something to be desired, but there were no number cuts here, just number bumps. no cuts at all. there was just a tailor made selloff that gave you a chance to buy them at lower levels. today they came roaring back as they always seem to do. stick with cramer.
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facebook, amazon, netflix, google, they still work. can you believe it? i like to say there's always a bull market somewhere. i promise to try and find it just for you right here on "mad money." i'm jim cramer. see you tomorrow!
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to reality takes hard work. - [female voiceover] and a willingness to do it over and over again. - i've been at this all for 16 years. - [male voiceover] but 98% of inventions never make it to market. - [female voiceover] that's where we come in. - curtis! - oh my god. - hey! - [deanne] i'm deanne bell, a mechanical engineer and mentor for inventors. - [george] i'm george zaidan, an m.i.t. trained chemist and advisor to startups. - [deanne] together with our design and engineering team, we take inventions to the next level. - how cool is that? - [george] we'll put them to the test. yeah! - [deanna] and then match them with a potential investor. - [george] then it's up to the inventor to pitch their idea. - we're seeking to raise $1,000,000 in exchange for 15% of our company. - [deanna] and see if it deserves an investment.

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