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

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>> la la la. grasso. >> i've been in under armour, as well. i would be, as well. take that out for ale spin. reap the benefits of a lower corporate tax rate. 15% domestic versus international. >> boom. >> i'm melissa lee. thank you for watching. see 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 cramerica. call me at 1-800. trump have the trump rally made one more magnificent move. the market roaring yet again on
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all time highs. a real smoke show from start to finish. the dow rallied 298 points. i think it is worth asking, what exactly is a trump stop and what's not? because the industries he favors are in a fabulous -- house of pleasure. >> while the ones that have earned his wrath could be in for -- >> the house of pain. >> to put it in the new language of this market, trump stock, trump stock, trump stock. >> not to trump stock, not to trump stock. >> get used to those. the only problem is they're something to change. even a skeptical fund manager frantically trying to grab anything that can benefit from the new regime. lower taxes, rest regulation and trillions in overseas earnings. tonight we need to go over the pure trump stocks.
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the one that's he's anointed by word or by deed. and then the no trump stocks. the ones that have woken up on his bad stock and are now in purgatory. let's start with the quint essential trump stocks. the banks. trump is trying to rescue the banks from stiff regulatory rules. he wants to get the government out of the way so the banks can make more loans. there's a reason why goldman sachs. and if you get government off their banks, the banks can get more capital to shareholders. if trump gets the economy moving ask the interest rates go higher, you make more money on your deposits. a living breathing example? bank of america. with a stock up 31% for the year. this acts like it is the bank of
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trump. why? it is the largest deposit base in the country so it can earn the most money in a rate like scenario like the one we're supposed to be getting next whenls the fed meets ask announces its decision. it gets better. bank of america can give you larger dividends and buy backs. that's why people used to own them. the final consequence? so many professional investments, we're seeing it as money managers try to go from being undertweet being overweight. ever since the election, they've been reaching for the real banks and they're putting so much anyone work, they need to go slowly. therefore the easiest, most liquid and most obvious one to buy, bank of america. it doesn't move. you can buy a million shares in a heartbeat. that's why they love it. next quint essential trump stocks, the metals and natural
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resources stocks that represent all manufacturing and fossil fuels. trump is a drill baby drill kind of guy. he might be picking scott pruitt, oklahoma's extremely oil friendly attorney general, to run the epa. yep! the environmental protection agency is about to become the energy protection agency. well, i don't need dhaeng initials. of course, oil has been boosted by last week's production agreement from opec but i think we could see so much drilling that it might push the price back down. irony. there are only a few metal stocks in trade. you have u.s. steel, and others. and they have been rallying like crazy. i bet they have more room to rise. the same for anything that aids and abets these company.
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they need rail roads to move from point a to point b so they are on fire, in part because they carry lots of coal. the only way to save do that is by train. that's why the transports just confirmed this rally with their first record high in two years. next group of trump beneficia beneficiari beneficiaries, the companies and will do better in general from deregulation. these don't have specific trump gayle force winds at their back but they do have the overall business plan. there's an issue with these stocks. the banks which have near term fundamentals, this group often doesn't. a little trickier. the manufacturers aren't doing as well as we like especially because of the strong dollar. you can pretty much throw darts at this darn group. even the united technologies and boeing can be bought now that they've come to terms with trump. >> trump stock, trump stock. >> what can i say?
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it is a mad max beyond thunder dome market. make a deal. your stock can rally. bust a deal, face the wheel. or the tweet. don't forget the airlines. they had their best november ever at plus 7%. the same for fedex and ups. there isn't enough money to go around except the ancient mariners like western digital up 8%. fang, facebook, amazon, google, they are the perceived to be trump stocks. why? because trump doesn't like to be poked. better far better of the domestic company that live and die based on the strength of the dmi and the spending of the consumer. hence why the restaurants are flying by. like like lu lu lemon.
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a real star out of jpmorgan was telling to you avoid this stock like the bubonic plague. sell, sell, sell! or how about this one? dave and busters. symbol play. >> trump stop. >> look at this research note from bmo capital recommending dave and busters. the restaurant/arcade that we've raved about so often. after a big quarter that sent it up 9%. already great again. is simple play the ultimate trump treat? they like dave is that busters. because the tax reform can cut the tax rate in half. so i say play with play. what's good for them is good for any other company that involves dining, lodging, recreation.
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fondly, there are the irredeemable company that need government help but won't play ball with trump. namely, yep. the drug stocks. >> not to trump stock. not to trump stock. >> trump just said he wants to bring down drug prices so the industry better comply before he singles out one of them. >> i'm look at you, valiant. and makes an example of some of them. of course there are hybrids. it can benefit especially in oil pipelines but might lose out from trump's tough talk about china. it is likely to be a frequent staple. i don't know if the communist party will cave. trump is betting it will. they want lower taxes but they have to sell more shampoo over there. they could be in the cross hairs of trump's pols. we used to hear about who lost china when the company went communist. you'll hear about it again if trump thinks it is worth keeping
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going with this trade war. maybe the chinese fall like a cheap suit. everybody else has so far, right? i'm cutting a bad swath here. are the tellcos trump stocks? t-mobile acts like a trump stock. twitter, oh, yeah. trump stock, trump stock, trump stock. but only if it can figure out how to monetize the biggest commodity, trump himself. home builders, trump is not jumping. the bottom lien is trump like the market tends to fluctuate. consider this the cheat seat. it is better to make good deal than face wheel without a trump stock to your name. debby in my home state of pennsylvania. debby! >> caller: hi, cramer. what a great day to be on "mad money." the market is up nearly 300 points.
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>> go ahead. >> caller: i'm calling on aks steel. i own a few shares. i was wondering if you think it is an elevator ride up? what's the rule of sale? >> you might want to take half off the table. you probably have a double. let's just say in many ways that's the ultimate trump stock trump stock trump stock. >> brian in pennsylvania. how is it going? >> caller: good man, good. i have a question about groupon. what's your target price for the next three months? >> i think groupon is can get on $5. there's a heritage of people thinking it is a who'ser. it is neither a trump stock or not a trump stock. it is the president-elect's market. we're just investing in it. but remember, mr. trump's opinion can change by the tweet
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so keep us around. it is what i call a living document. we'll keep it documented. on "mad money" tonight, last week it was announced that he was handing over the reins to a.j. then has trump just declared new war on drug prices? i'm investigating what has the industry talking. and southwest airlines has risen. can it rise even higher? stick with cramer! >> don't miss a second of "mad money." follow @jim cramer on twitter. send jim an e-mail to "mad money" at or give us a call at 1-800-cnbc. miss something?
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head to madmanitobaoney at cnbc. he
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snmplt holy cow it's been a busy week for starbucks. we found that howard schultz,
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the ceo, is stepping down passing on it to kevin johnson. he'll be focusing on rolling out the new concept. they are like cathedrals of coffee. as if that weren't enough news, today starbucks held a twice a year investor conference is that they rolled out a five-year plan with some very lofty goals. aiming for 10% revenue growth. mid single digit growth with the earnings expanding 15 to 25% per year. he may be retired as ceo but he has a five-year blue print for success, all laid out and ready for his successor. so let's sit down with the current chairman and the successor to learn more about the transition of the company's future. to you, i have been with executives. they don't have a five-hour plan. they don't have a five-day plan. a five-year plan? how can you have one?
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>> we've had a 45-year history so we have a very solid co comprehensive understanding and a clear line of sight on our business. this is an opportunity to demonstrate with great humility that we feel as you said we can deliver a 10% revenue growth, 15 to 20% mid single digit comps and that will be fueled with kevin's leadership and a new level of digital technology and customer facing innovation. all, as you said, complimented by the roastory and reserve brands. it is a great day and it has been received well and i think we demonstrated that we are the kind of company that can balance profit with social impact and really demonstrate it. >> 12,000 new stores over five years. where will they be? help me figure china into this story. >> well, jim, we shared the plan with our investors today and
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roughly half of those 12,000 stores will be in our two largest markets. the u.s. and china. we're very bullish on china and we're going to put a significant amount of capital behind the billedout of those stores in china and continue to drive growth. >> kevin, i look at my line today. it was way too long. it was so long that i said to myself, maybe mobile say that attracting too many people. maybe there are too many people in my rewards club. how can we improve it? i'm tired of waiting. >> well, i think you just pointed out the success of mobile pay. how we reengineer the interwax our customers when they come to pick up their beverages. mobile order pay has only been throughout just over a year is that already this last month we're seeing roughly 8% of all transactions are being done using mobile order pay.
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that's putting pressure on the handoff pay. so now we're going to work on restructuring how that process works. we have a hit on our hands with mobile order pay. >> you sure do. i felt last week when we talked that maybe the roastory, the strategy couldn't be add i have the. after today i think that's ridiculous. the strategy will drive earnings. give me a sense of what you are going to do to drive those earnings. because it is no longer just draw. since obviously something you thought of could be the next leg for the company. >> i think that's exactly right. i think we have an opportunity inside the core brand and the core business to create a high end version of starbucks and really a higher level segmentation. we've already seen in new york city, four stores, 85th and madison, ten waverly, brook field place ask ninth and
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broadway, the beginning of it. we've seen in it i will and i will we've seen in it china. so these are reserve he bars opening up in stores. we announced the true reserve bar which will be twice size of star buck with spirits, with fresh food, and that will be a 2x volume. that will open this sumner chicago. and then the reserve roastory itself and that will open in shanghai in a year and ninth and 15th in new york city in a year and a half. this is beginning of a new opportunity inside our core business to create incremental revenue and profit and shine a halo on the core business and the core brand. as i mentioned in the conference today, it is no different than what bmw has been able to do. dreet three series all the way to the seven series. what air jordan represents to nike. what the suv represents to porsche. this is innovation inside the
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company and us taking advantage of what we know best, coffee, and creating a super premium brand inside the company. >> what were they saying today? the new ceo? nervous? people were crying last week. are people saying, i can get with this guy. i think he gets it. >> well, jim, i thought we had a great day with our investors. we were very transparent with them. we took them through what drove the growth over the last two years. we took them through imperatives we have to elevate the brand, he will straight customer experience and amplify starbucks as a destination. i think we had a very good dialogue with them. the entire team showed up well and we're very intentional. we know what we're doing and we have a cheer man to go do it. >> can i add something? i think the most important currency in leadership is trust. kevin has the trust of our partners and our people of he has the trust of the street as you saw today. and this is going to be a very
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smooth and natural transition. in many ways the announcement we made last week was already something that we have been already engaged in. as kevin has been operating and running the company operationally for quite some time now. >> this new job, you have created, when you're finished with the five-year, you have created more jobs than any company in the world. you are now with kevin, teaching them how to use a level of technology that you do not get caught in schools. at what point do you break bread with a new president who is trying very hard to keep manufacturing jobs and may not understand necessarily that the really great jobs are working at starbucks. >> wshlgs i think what we've tried on demonstrate over many years is that a great enduring company must do everything it can to share success and take care of its people in the communities we serve. i think in the world that we're
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living in today, there is a greater responsibility on companies to ensure the fact that we balance profit with social impact. that's the kind of message i would share with the president-elect and i hope that he would share that. >> i know that china has been hot button. yesterday boeing talking about, please be careful. don't the meddle too much with china. a political leader of either country really get in the way of what you have? you spent so much time with the parents, the families in china. i think the party likes you, and you haven't done anything to make it so that the new regime in this country would dislike you. is it clear sailing for china politically? >> well, jim, i can't predict a political environment but i do know that we've been this china 17 years. we've done it in a way that is showing great respect to the culture and the people in china. we employ over 30,000 partners other proudly wear the green
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apron in china. the design of our stores is first class. their beautiful. they bring in elements of local chinese culture and art. and you know, august mentioned, we have a very, very close relationship with our partners and our customers in china. and we're going to stay focused on create that warm, environment that our customers in china are enjoying. >> all right. i'll leave it at that. congratulations. if you had told me a week ago the stock would be higher, i would have said i don't know the stock market at all. thank you very much. good to talk to you. i'll see you gentlemen soon. >> thank you. >> hang on to it. you know what? i was being way too conservative. "mad money" is pack after the break. >> coming up during this holiday season, will travelers show ticker the sbux the love?
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>> it just makes flying more affordable. >> when "mad money" returns.
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donald trump hand even been sworn in yet but so far he has done a get job keeping his campaign promises as the pharmaceutical industry found out 98 "time" magazine. in the person of the year interview with president-elect trump, time reported that trump said, and i quote, i'm going to bring down drug prices. i don't like what has happened with drug prices. end quote. >> not to trump stock. not to trump stock. >> i think in the post election euphoria, many stocks went up that shouldn't have and the pharmaceutical stocks took off. because hillary clinton didn't get elected and the senate
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didn't go democratic. we know that bernie sanders would have been a powerful part of the industry. trump suggested and i quote that some stock analysts may have misread his intentions. biotechnology stocks for example, which enjoy large profit margins under current law rose 9% in the day after trump's election. a rally of relief. we even read articles in the may not stream press back then. i went over them today. trump had decided to downplay the drug pricing after the election. we quote, the president-elect seems to have down graded plans to act aggressively to control rising drug prices, handing the pharmaceutical industry an early victory and providing another illustration of the influence of lobbyists in the trump administration. despite trump's promise to drain swamp of special interests in washington. oops, i guess not. so if we dust off the campaign
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promises, what did trump really call for? his main tenet, negotiate the prices down. which basically means using medicare buying power to get a better bargain for the government. back in february, it appears on msnbc's morning joe, trump said, i quote. we're the largest drug buyer in the world. we don't negotiate. you pay practically the same for the country as you go into a drug or the and buy the drugs. he continualed. if we negotiated the price of drugs, we would save $300 billion a year. now, as the "washington post" quickly reported in a piece, trump's truly absurd claim that we on save $300 billion a year interesting actual drug buying program he could alter only spent $28 billion in 2014. the post take, trump has chimed the save $300 billion a 84 on a $78 billion program. that's leak turning water into wine. in fact, it turns out the total annual spending on prescription drugs entirely in this country
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is between 298 billion and $498 billion. so that $300 billion doesn't really work. but the actual numbers don't matter which brings me to the point of how we're seeing trump work before he gets to the white house. to him, everything is a negotiation. just like trump made a deal with greg hayes, the ceo of united technologies to keep carrier in indiana. just like he canceled the order for air force one because boeing is charging an outrageous $400 billion price. and he quickly pledged that he would keep the costs down even if the $400 billion was bogus. it is about negotiation. in truth, it is all flight in trump's first book, the art of deal. air force one will likely cost less than before he sent out that tweet. now, drug companies are very powerful in washington. even people in the industry, have admitted some price increases out of line.
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suffice to it say that trump's post could be the beginning of the bargain session or alternatively a warning shot that the drug company get back into line or face wrath of the next president. the industry which has been put through some absurd pricing increases ought to pay attention on allerigan saunders. if the industry can self-regulate on pricing, we can all focus on investing in innovative medicines and cures. if they don't listen, expect trump to go after these guys. making the stocks very hard to own. here's the bottom line. remember, it is the art of the deal part two. the sequel. any executive better think twice before he or she tries to jack up prices. so far at least trump seems to
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have a longer memorandies for h promises than the press would have you believe. >> caller: hi, jim. i want to congratulate you. i'm a retired partner in bear stearns and oppenheimer and a form he financial analyst so nobody can appreciate more than me the fabulous job you and your staff do daily to help the average investor. >> thank you, charles. it has been difficult so thank you. that really makes me feel terrific. thank you so much. how can i help? >> caller: you're my hero. my question zbh. zimmer biotech which you had on your show not too long ago. i bought a little stock next day, around 1:30. >> right. >> zbh declined after delivering a disappointing third quarter and lower guidance for the
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fourth quarter. however, the company boasts a great long term growth record. my question is, should i take tax loss? >> no, no, i would not do that. this is a demographic baby boom play. the world has turned against health care. that won't last forever. they have best technology. it has gone very out of favor and they did not deliver on the quarter which was quite surprising but this is a good company and i don't think it can stay down for long but thank you for the kind words. they are very meaningful to me. all right. got any ceos on your shopping list? pick them up a copy of the art of the deal. the president-elect's campaign promises are alive and well. and mr. trump seems to be willing to bargain. much more coming up. should you follow suit? a red hot smoking transport today. see if he can fly the stock a little higher. if you're looking for a new job, here's a good place to start. a mission to final your next career move. tonight's edition of the
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lightning round so stick with cramer. why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempasĀ® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis. [and her new business: i do, to jeanetgo. jeanette was excellent at marrying people. but had trouble getting paid. not a good time, jeanette. even worse. now i'm uncomfortable. but here's the good news, jeanette got quickbooks.
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. what a day to have this guest. does the tremendous comeback in the airline have staying power?
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a few months ago this was a beleaguered issue. we know that warren buffett is suddenly a big fan. a very bullish american airlines this morning. just look at southwest air. love, luv. one of the best run company in the industry, if not the best. strongest balance sheet, lowest cost. it is up nearly 30%. a strong quarter at the end of october and the company told us that their traffic was up by 7% in november. the best november ever. if you believe the economy is about to accelerate, there is a long way to run. welcome back to "mad money." good to see you, sir. >> good to be here. >> a transport rally and you're leading it. something happened in november. i don't care, democrat, republican, it is a floodgate. something happened in this country. you tell me. you have the pulse of it.
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>> i don't know. i think that this is enthusiasm and hope and optimism for the future. i think people are glad to have an answer on who will be the next president. but it is palpable. >> these are staggering numbers. >> yes. we strengthened throughout november hfl an all time record low. >> week to week? really? so -- >> especially during the holidays. we could tell an inflection after the election. it is very exciting. it is a great day to be here with you. >> we have holiday travel. people are talking about.5% increase over last year. maybe that's too conservative. >> it could be. these trend changes are really hard to predict and we always tend to compare to history. and future bookings aren't necessarily a great indicator. we'll start a month with only half the bookings in place. we have a lot of action in the
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month. but if the economy in fact continues to grow, oil prices continue to stay low, we'll do really well. >> now, i understand that you have to try to piece it together. a lot of airlines don't want to add capacity. when did you present it? they stick by that. and you get this inflection. you might have what we haven't seen for a long time with southwest. >> it is hard to have top line growth. we want to grow. and then as a company you need to have a reason to grow. we think we got a better mousetrap. we offer great service at lower cost with lower fares that we share with our customers and go into markets, 34 fares and it makes flying more affordable. and i think as you mentioned, november is a testament to that. so we have a lot of opportunities on have nights and grow our markets over time.
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>> you have changes. it looked like oil was going to the 30s. now we have a surprise oil agreement. texas, all my resources saying it is improving dramatically. >> texas is very strong. and dallas in particular has been really resilient. we have a lot of relocations coming to texas and the dallas area. there are cranes everywhere so texas feels very, very strong. our houston business and our midland business which are more oil and gas dependent have held up nicely. >> we have a president-elect who wasn't that happy with the price of a boeing jet. that's a little more outfitted than with southwest. in general, haven't the prices of aircraft been pretty reasonable of late? >> we're an all boeing airline. boeing does a phenomenal job for us. we've launched four different planes with 737. they do a fine job.
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they make a great product. the 737 max 8 will be the lowest cost narrow body airplane in the world. so we have nothing but praise for boeing. they're a great partner. >> you're a turbo fan. >> it will help. we have ge engines on our airplanes but absolutely it is great to have that competition out this. and wednesday we have the best engine, too. >> i want to talk karma. i don't usually do that but there is something going on at southwest that's just different. how is it possible to have that corporate culture? >> it is 45 years, too. and we've never had a layoff, never had a pay cut, we've been profitable every single year since 1982. so there is a lot to a culture. and it is easier to have a strong culture if you feel like you're a champion. and that's the way our employees
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feel. the other thing we try to do for our people is to give them tools and the resources they need to provide a product that they're proud of. we don't charge bag fees. we don't charge change fees. we care about them and we try to have a family at southwest airlines and ask our people to treat all of our customers like their guests in their home and it has worked really well for us. but our people are fantastic. it is what sets us apart in the industry and they are ones that have made southwest so successful. >> now, one of the things, i'm hook at 2017 to be better. i know there is a lot of wide bodies. no one is buying those. i have to believe there is enough could nnstraint. we get on 1% to 2% capacity. we'll be talking about a stock not in the 40s anymore.
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>> i think we'll see decent capacity growth next year domestically. we have opportunities on growent nationally next year so our domestic growth will be pretty modest next year. bonl 2%. we'll be growing the fleet but we're also retiring our classic fleet next year. so we'll have moderate fleet growth. and then pick up again in 2018. >> it is a compelling story. i'm more pumped up about it than you are because you're a conservative man. i saw the transports act today. you are integral to that rally, sir. thank you very much. chairman, president, ceo of southwest air. the experts at cdw brought i.t. orchestration to a global outerwear manufacturer, allowing them to handle the recent popularity boom in fanny packs. it's pretty fly.
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unless being '90s is your thing. well, cdw and hpe services gave them the flexibility they needed to scale up their scale up their cloud resources, making sure supply meets demand. poser! [ classic ringtone ] what's crack-a-lackin'? hey, did you remember to set the vcr? increased flexibiilty by hpe services. i.t. orchestration by cdw.
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it is time! and then lightning round is over. are you ready ski daddy! irwin in new york. >> caller: hi, jim.
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i've been reading about the internet ask several mention ad company called sd micro electronics. i know very little about it and i wanted your opinion. >> you're spot on, sir. it is about technology. i think they're going to have the wind at their back. >> caller: hi, jim. what do you think? >> wave regional bank for you in an area that is doing incredibly well. midland, michigan. that's where dow kept is. i think you have a good one. the bank stocks are -- josh in florida. >> caller: american eagle took a hit last week. >> i can't get by the teen
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company. having had teenagers. it was so fickle. they went from store to store to store. brittney in california. no, no, no. brittney? >> boo-ya, jim! what's your take on analog devices? >> it is a buy. some takeover targets and who will buy them and one reason i said they should be bought. it is done with linear tech. can i take one more? to clint in alabama. >> caller: how are you? >> i'm good. how are you? >> caller: doing well. my wife and i are young investors. we've been sitting on chesapeake energy. she's ready to let it sell. i want to let it ride. >> trump stock, trump stock. >> you bet. they're sitting on so much natural gas. i've been very negative. i turned positive about a point ago. and that's the conclusion.
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lightning round! >> the lined round is sponsored by td ameritrade. trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade.
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normally we only talk to
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publicly traded companies on the show. if you want to understand the future of a given industry you need to talk to the start-up that's are still private. take glass door, it brings together employers and job seek here's want easy to use platform. and they don't just help you find a job. they're trying to change way people search for employment. it collects data from users and salaries and job satisfaction that can give you a better sense of what is reasonable. that has helped them that can the fastest growing. both here and around the world, the sight released the annual employees' choice awards. so dig deeper with the co-founder and ceo of glass door. learn more about his company and what it is doing. welcome back to mad "money."
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you have 2 million responses. we're talking about science. so give me what the science says about who is in? >> so the news that was a bit of a shock to all of us was that baine took the top spot. >> baine and company. the consuling company. they've made the list all nine years. on three companies that have made the list all five years. baine, apple and google. the other two are household names. so it is amazing. they to it because they hire amazing people. and what they tell you is, they get on work on the hardest problems that companies face and when they're done, they get to go to the next hard problem and the next one after that. so it is a constant high of getting to work on really hard business problems. >> one of the participant was saying, if you can have an impact at your job.
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not just being put on it. at google, there could be, you could work there for years and not have an impact but somehow it still works? >> google and facebook are a little unique. for engineers and product people interesting idea that your work could be used by a billion plus people around the planet. >> it is the equivalent of fame for an engineer if your work gets into that many hands. southwest air which i've said is the best run airline because of the people. what is the science behind that in. >> so we have an effect, i saw gary backstage. look, we have an effect named after you. it is called the southwest effect. we've known in the science has known for a long time there is a correlation between employee satisfaction and financial performance of a company.
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so that isn't that much new. what is new is the scientists saying there is a causal relationship. we've been able to tease out the causality. satisfy employees create financial wealth in a corporate. they aren't satisfied because the company is doing well. they actually create it. >> let's take a step furnlg on number one. do companies with satisfied employees outrun the stock market? >> yes. we've built portfolios a bunch of ways. every way we've built them they've beat the s&p 500 in the last nine years. therefore it is causal. not correlation. >> to prove the causal link, the science has gone much, much deeper to tease it out but it's there. >> are there company that can turn it around?
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>> we've seen movement on and off the list. >> not too much. it is hard to change the culture. >> i think it is. >> there are company that, it takes years. it takes years and it takes an iconic leader, it usually takes real cheer crisp communication abouter what trying to become. it is a mountain we have to climb that you can rally behind. >> i got out of school in the '80s and i looked at jobs. what i looked at was how much i would make. and i picked the one that could i make the most at. and did i that because that's all that materedand that was the key to happiness. >> how did that work out? >> we'll have a cocktail later. if you ask my wife, she would say that's not this job. that was at goldman sachs. we have a lot of young people
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watching this show. money does not buy happiness. >> no. so here's an interesting thing. a lot of leaders and ceos will say that satisfaction come from pay. there's some truth to it. there is a positive correlation between satisfaction and pay but it is a very weak correlation. so you have to increase people's pay a lot to increase their satisfaction. >> how about if i make they will important? if i make them a cog. >> it is this mission. it is aligning my high of with the work i'm doing every day. >> can a company, say consumer coil, a manufacturing company. >> yes. so chlorox made the list this year. a famous consumer brand is being
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celebrated for a work place. in and out has been on the list for four years. >> on your feet all day hard job. yet people love working there and they talk about the investment the company makes in them. about the happiness and the sense of mission. >> we'll have to ask chlorox when they come on. the glass door co-founder and ceo. i find this to be incredibly compelling. it is part of the past speech. it's important to find out where you should be working. a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter.
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morgan stanley you got it! what do you think? if you're going to wish, wish big at the lexus december to remember sales event get up to $2500 customer cash on select 2016 and 2017 models for these terms. see your lexus dealer.
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it's resonating with me. that's the beamer 750. there's always a bull market somewhere. i promise to find it just for you. i'm jim cramer and i'll see you tomorrow!
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>> crank her up! [tarzan yell] hi, i'm jay leno. >> all: hi, jay! >> hi, everybody, how you doing? and this is a show about cars... it's fun to drive cars that are really different. >> this one's death trap. >> oh, i see because... >> because it's dangerous to ride. >> and motorcycles. and, well, anything that rolls... it's like driving a two-story building. oh, my god, strong as an ox! explodes... i love the smell of napalm in the morning. >> yeah! >> or makes noise. >> you ever run a dragster? >> no, i haven't. this is "jay leno's garage." >> start your engine. >> get out of the car, sir.


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