>> let it rest. might be breaking out to the upside. >> he's hurt now. >> thank you for watching. see you back here. meantime, "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing feel for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> i'm cramer. welcome to "mad money." 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 train you. many things need to go right. they need to go right if we are going to maintain the advance in 2016. perhaps too many things. even as the dow gained 19
pointed. there is one thing it has shown over and over again. it believes that everything good will happen. and that's why we keep rallying. it is a bull market. let's look at what's under the hood. from what we need to worry about. so you know the kind of gauntlet this market needs on run to keep the trump rally going. first, let's deal with the immediate stock. for example, the market needs supply. historically the first day of the year brings extensive 401(k) eninvestigatements and that i think played a very big role. a great sign this trend continued despite the big run in the market in 2016 which showed for 13%. and two, many individuals who didn't sell believed the capital
gains taxes might come down in 2017 because of president trump. the second, despite the obvious inputs from the president-elect, including a critical tweet about building cars in mexico. we'll talk about that later. it was flying into oil which was screaming higher in the morning reversed and headed down. once again it proved to be a price too far. what is amazing to me is that the price of crude could have such a hold on the stock market. of course the other day. third, many of them figured heavily. the drug markets, they bounced hard. that's another good sign for the bulls. it shows this huge cohort may not be, it always remains one
presidential tweet away. facebook, net books, they had gains too. i think it was hurt across the board for the holidays. i have my doubts about that. i have no doubt that the stocks of alphabet ask facebook which were creamed last week, remain in good faith. let's deal with the bigger picture. where the trump rally can last through january. one of the reasons is that i believe republicans may not be totally enthused about trump's desire with the alacrity that trump seeks. we did see when it house republicans back down from a measure of he said he didn't like the move.
it shows how congress people really clearly feared wrath of the president-elect who wants to drain the swamp and focus on reform of hairk health care and taxes. there is no time for such diversions. nonetheless, it showed that congressional priorities may be different. that could be negative for stocks. we' i'm not naive. the dollar has been skyrocketing here. and we know that numbers might have to be slashed. really cut badly for a host of international companies with stocks that have performed so well since donald trump's victory. there is not a lot of time in
the time frame. similarly, they have bought from higher levels. unless trump can deregulate the finance industry, you have to wonder whether housing, autos and even retail can go lower or whether it will turn no matter what, because historically, having higher rates has hurt these businesses. you need to see these changes and you need them in a hurry. it could be a problem for the market if this is real resistance here. it is a pretty darn good back drop for our stock market. because of trump, somebody that might look at that. here's the bottom line.
the gauntlet that this market must run could afford to be a little more protracted. especially if the media plays up any differences. do you aenl a lot of stoke. if you're trying on get in, may i suggest you wait for better prices before you full trigger. and real resistance from congress including the republicans. most certainly give that you lo longer opportunity. >> whiskey owns the stock of the international companies. it is listed on the london stock exchange with constellation brands on the new york stock exchange. what are your thoughts? >> i like constellation. they're going to report this week.
deagio, i believe, is a takeover target. i think it will be able to put mexico in a box that doesn't hurt it. >> hi, nick. >> i invested in gmc last year is that the stock has been plummeting. they decided to go all in on some company restructuring and a super bowl commercial. are you hoping it doesn't go the way of radio shack? >> to be cheer, i have not liked gnc for some time. the problem is that they have just been so poorly managed. to get rid of the company stock, i think you will regret. let's to go michael in oregon. >> hey, jill question, on fit bit. i bought a thousand shares at
$36 on july of 2015. right after the ipo. they made a recent announcement with united health care but their market share 23% now. way down. and the cash flow is way down again. over 50% from last year. is this a fast stop like go pro? should i sell? it is indeed a fad stock. the market wasn't as big as we thought. to sell at 7? i don't know wefl to let the tax law selling. that's what happened at the end of the year. it is a general win tech stock. i have to tell you with the future to me is very blurry for fit bit. new year? new market? not really. if you own stocks.
get in. 2016 mean in the books. it could be a key to a profitable 2017. then i'll tell what you the top performers of the s&p 500 are, the denver broncos. winners can be great but losers might be able to offer a thing or two, too. i'm digging through it to see which of the worst performers could be worth owning in the new year. >> don't miss a second of "mad money." follow jim on twitter. do you have a question? tweet him. tweet or give us a call. 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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the microphone just when stocks have given us all they have to give. that's an important concept i want to teach in 2017. we often ask too much of stocks when they've rocketed to new heights. i think we ask too much of fang in 2016. hoping they could somehow continue to power higher regardless of all the wealth they've already created. at times we thought they owed it to us. that they were responsible for the hype and they had on deliver. could you really ask for more from facebook? other than repeated guidance for both earnings and sales? do we really want amazon, be just the u.s., it was busy destroying traditional retail? how many original productions did netflix have to produce?
and that it couldn't be all fun and games just because it laid to waste the competition. including the stunltd management at yahoo! who favored over capital competition and reinvested in the business. i feel the same way about the winners in the dow jones industrial average. the five stars that provided so much of the index even as did it stall out close to 20,000. perhaps investors recognize that the trump rally needed something more to stay in the air. like trump being president, perhaps? in time to save the final days of 2016. how much can we ask, remember, that's the phrase. how much can we ask of these stocks that were not given to us already in the post election romp? it is as if people are saying, look, all the gains you have seen from these winners came because hillary clinton lost. now we'll see what happens when trump enters the white house.
i think that's a little too much to ask. at least for now. let's examine the dow's five biggest winners to see if they have given us all they've got after such a monumental run. first up is caterpillar. i keep a tattered and coffee stained from earlier in 2016. to remind me of how foul we are when it comes to prognosticating. why? because threw innovations, and the reining in, seems to have some control over its destiny. caterpillar reports in 23 days. whoo it is after the inauguration of our infrastructure loving new president, in the end they have on deal with the skyrocketing
dollar which helps the arch rival. yet to be realized road building program in the u.s. think shovel ready. and the fact china accepts growth below 7%. surely would love to punish some american companies. doesn't caterpillar seem like an easy enough target to you? sure, if you buy it after the big run, you have to believe the numbers come up. not down. as much as i've championed the stock for a long time, i think it has given you all it has to give until now. unless there is a make america great bond. where the money is earmarked to purchase only u.s. made products. sorry. no matter how much you manipulate it, they will to go peoria. that could be the plan. union i'd health. unh. they became the nation's greatest health administrator going from regional men minute company. i despise this stock.
it all seemed too cut and dried. they're going to cut out our health care bill at the same time they deliver a premier date base for all medical procedures? i used to short this stock endlessly because i they'd darlings when i was young and innocent, and yes, stupid. the company did that and much more. now anthem and humana are trying on merge. united health stands out as the one company to challenge president obama and his wheel house. .
yet united health, it is the most likely to become a two-year. they've rallied 33%. to a financial consultant including itself that sells now at a premium to most stocks. does at a pred yumium. does that make sense? absolutely. my former actually faired better in the great recession. at least financially if not in terms of public relations and every other bank was probably penalized more than any other legislation. the banks went under leaving the yolk to be placed on goldman's neck and trump plans to appoint so many goldman alumnis to high-level positions. i think the stock deserves to trade up because goldman can go back to being goldman. the company that makes money with it's own money and gets a premium for being clever and with republicans, all the criticism from anti wall street
senators like bernie sanders, i'm saying it's pretty meaningless. i still like goldman here. how the heck did chevron rally 31% last year? perhaps because it fell from $135 to $70 in 2015 and trying to claw its way back now that oil rebounded back to the 50s or perhaps because it's the most aggressive of the majors. it ratcheted back spending while at the same time maintained dividend becoming the blue chip in the group. all i can tell you is chevron is one stock in the group. i suspect oil stock here for a bit and witnessed the reversal from 55 dra$55 that took the st market with it. finally, and not last, but least, but just last, in terms of the order, there is jp morgan up 31% and one you better hope comes down because it may be the best of the top five performers.
the best offender if the fed sticks to the guns and raises rates multiple times. jp morgan will be a huge regulation. it's been held back from lending tight-firsted regulators and compliance cost. it's a gigantic winner under future rate hikes. four hikes equals 3 billion for doing nothing here. $3 billion in profit. if u.s. economies start growing the way trump promised, we'll revive the fuel and make the profits like few without of course any pressure on earnings from a strong dollar. suffice to say, i think they are the biggest winner of the five and it's the one i bet on if you believe that the trump rally is far from finished. here is the bottom line. after last year's remarkable run, many of the markets' leaders have given us all they got but at least when it comes to the top five performers in the dow, i think that goldman sachs, united health and jp morgan could have more room to run as chevrolet ran and
caterpillar may need to pause to catch their breath. much more "mad money" ahead. it's time to resolve to make this year your most profitable yet and i'm giving you the insight you need. don't miss my take on the winners and losers of the s&p 500 and my take on trump's largest twitter target, general motors with the industry in the cross hairs, what it could mean for the new year and brings up questions and i'm serving up the "lightning round." stick with cramer.
about the s&p 500e's best performers but that doesn't mean they can't have a winning record. it's just that great runs to the super bowl for the champs seem too improbable to bank. you can see what i mean just by looking at the individual winners starting with the top performer of the s&p. the stock i call american phara pharaoh. the trajectory of this horse had been steadily higher until it's total lift off back in november when we learned that every business driver was doing much better than any analyst expected. that sent it soaring from $168 to $117 to $107. earned the triple crown honors because it dominates gaming including virtual reality, machine learning and data center businesses, the three fastest growers. this stock reminds me of intel during the sectarian like hay
day when it dominated the super growth of computers and qualcomm, the chip company. as those two markets matured, so did intel and qualcomm and their stocks had been stalled ever since. the encouraging thing that both qualcomm and intel had multi year moves around the turn of the century with the former earning from $7 to 70 and the latter jumping from 3 to 90, although both stocks were out by the nasdaq's run who can forget that? still it's important to point out the epic run before the journey and qualcomm. it's easy to argue that invidia could charge but the numbers need to come up subsubstantiall. still, just being the backbone chips for virtual reality,
artificial intelligence and machine learning would be enough but gaming and autos, too. i don't think the stock is done despite the fact a wells f s fs issued how the gaming leg of the story could slow sending the stock into a more than a $4 t izzy. one point down six. there is more upside to come because some of these markets are in infancy and it stole too much of near-term gains. money managers had to own. if they wanted to show that they knew what the heck they were doing. second there is one called one oak and that's oneok. the oil and gas pipeline company which at first glance seems like an odd o and p winner rallying 133%. odd until you consider oneok in the 2016, the energy recovery plays were a surprise gainer not
because they performed so well but fortunes changed when donald trump won the election. >> trump stock, trump stock. >> in oneok's case, the company owns 42% of the one of the largest partnerships with fabulous positioning in the rocky mountains and most importantly, oklahoma. the latter being perhaps the most important asset given the incredibly lucrative finds in the stack and scoop formations that i tend to talk more about in 2017. now this stock yields 4.2% after last year's run. and i think that pay out thanks pay out can grow given the projects it has in the hopper, many of which will be completed in the near team. i like that. doesn't need to issue equity. we're aware of the shale revolution and many of us think of it as an oil phenomenon. i brought you-all those for the last few years.
not enough thought is being given to natural gas, returns to liquids or chemicals with booming markets and the u.s. is an exporter of natural gas and while only 2% of the supply is sent overseas, we're discovering we might be both the largest and lowest cross producer in the world and mark my words, 2017 will be the year that nat gas out shines oil. rusty brazil agrees with and onoek is one of the same utility. free port, fcx rallied 95% and maybe the ultimate back from the dead candidate but probably gone about as far as it can go without help from worldwide economic growth. what free port was trying to diversify away from. it bought oil and gas companies that were -- well, they shutout $20 million. one was a related company,
sister company and gas and the other was plains exploration. these might go down as two of the most ill timed acquisitions in history. as it peaked and the company had to sell out for barely more than one-tenth of what they paid to stay in business. free port eating into its own and remains the world's second largest copper company. copper remains in decline being replaced by aluminum and plastic but the only hope for long-term revival in china, you know i can't give kudos. i can't say its stock represents value unless you see china's economy even as its leaders seem okay with slower growth as we recently learned. two more in the top ten 81% in spectra energy up 72%. these are so non-em --
inspectors being bought for $28 million to create rather fthe largest infrastructure as the foot l fuel loving trump takes over the white house. >> trump stock, trump stock, trump stock. >> the rest of the top ten make a lot more sense. you know, there is app materi s materials. it joins land research. a stock i don't like very much for 2017. next is quanta services. a class a example why it's better to be lucky than good. boy, this is maybe the ult my. >> trump stock, trump stock. >> it's an infrastructure contract like the stall there could access pipe that trump favors. much of the gain is after the election, which makes sense since trump seems to want to build pipelines everywhere they are needed. can it rally more for 72% gain?
we're luck we're lucky if it will consult. comerica a beaten down bank leverageed to high rates and deregulation. it's a dual winner. i bet it can tack on a ton to it's 63% gain from last year. boy, these analysts are fighting these bank stocks kicking and screaming. a seller of martin materials, mln we've had on the show a bunch of times as america's key road making ingredient company and with trump proposing $500 billion, it makes sense that it rallied 62% but that needs to pass congrass and martin marietta materials has to get the orders. call it a hold for the moment. finally, halliburton, another like oil and has play with a fantastic service business favored to the u.s. shale industry. i think hal has a long way to go after last year's 59% run but i prefer schlumberger where cloud
members can follow the moves before we make them. here is the bottom line, some of the s&p's biggest winners from last year run out of fuel but others like halliburton, comerica, quanta services, oneok could have more upside to come after a couple case or weeks of profit taking. david in florida, david? >> caller: how you doing, jim? boo-yah. >> boo-yah, thank you for calling. >> caller: i noticed the sysco g costa help the performance, what could be the reason for strength and the group is selling off? >> one of the major reasons is we got nelson pelson and he's very engaged who often has lots of good things to -- for
management to put in and he's been very large. i also want to point out so we know that this syy, this is try and fund management is the name, syy is levered to the restaurant business. i think the restaurant business could be in trouble here if only because of higher costs but i like syy and i think there is a lot of upside left in it. maryland in indiana, marlin? >> caller: happy new year. >> happy new year. >> caller: i'd like to know about gilead sciences. i purchased it some month ago for over 100. i think 105. now it's back down to 74. should i sell it and take the lose or do you think it will return and go up again? >> i certainly don't want you to sell it and take the lose. it's too inexpensive. they can do a lot of different things to augment value. it's down because people think it's a one-trick pony.
i think it's better. hold on to it for at least a bounce of a couple days as i think the biotech has been way over sold. all right. it's a new year but i'm on the same mission to help you find the best stocks and to understand why like some of the winners from 2016 so you can have a prosperous 2017. same old, same old but i like it. much more "mad money" ahead. everyone loves a winner but the losers can teach us things, too. should old acquaintance be forgot or zero to hero? i'll reveal and my take on donald trump's latest twitter tira tirade. what it means for money and the future trade and all your calls ahead in the first lightning round of 2017. so stick with cramer. ti. sting.ow o ov 2uris h
one i would out right buy but for the most part, they are from the boulevard of broken dreams. stocks once great based on models that have either gone ay or been betrayed because of financial straights by over aggressive managements might not be able to turn around, not now. not ever. that said, some of these losers might be worth mining for trade, simply because they have been lads l laid low. take the worst performer in the n and p, down 73% in 2016. the company embodies all the things that used to work before the tax inverted headquarters in dublin strong drug profile. opia opiate, those are what we look for but the federal government made it harder for overseas mail drop companies to buy other businesses typically in the u.s. and save money by lowering tax rates. once it bit the dust, the buy everything you see methodology
and executioner who came from the executive ranks at the now totally disgraced value went the way of the dust bit. and new management struggling with pricing pressure across the board and trying to deal with the $8 million in debt it piled on insult to injury, companies in the generic drug business are suspect to trump tweets. as the bag them and gun them generic price strategy is a thing of past. >> not a trump stock, not a trump stock. >> first solar in the hit and miss down 51% in the wrong industry. solar panels where it's conceivable you lose money on every panel you sell. this company is the pride of the industry which would be fine if it weren't an industry pacing serious head winds now that a climate change is headed to the white house. i think that selling ice to ed eskimos might be better.
even as they have been trimmed and trimmed and trimmed again, yes it is that bad. the third worst performer intriguin intriguing, trip advisor down 46%. intriguing because the space it plays in online travel leisure is growing nicely. unfortunately, trip advisor is not growing. fortunately, that's because the company changed the business model going to instant booking as opposed to referral fees and stay on the site to book reservations. the transition to the new model from desktop to model has proven to be too much to manage, though, which is still talking about and i quote plugging the leak while admitting it's obviously taking longer than i thought. the transition is mostly behind them and again rating results, just that the results aren't good enough. the question is will they ever be. trip advisor is knot a disaster by a long shot. it's been a colossal failure. that story is is not over. when the company reports in six weeks, i think estimates will
have to come down. i wouldn't go near the stock yet but given it has 435 million reviews and i know trip advisor's power from my ownersh ownership stake, it couldn't catch me if it could have a take over bid but might come when it is a good deal lower. loser number four pargo, a company in transition. once a fabulous growth stock thanks to the incredible penetration of knock off over-the-counter drugs and generics, pargo never recovered from a takeover bit. it would have given twice the pricing and currently sells for -- >> boo! >> i expect the company would change leadership since former ceo took the top job and try to restore greatness and restructure from a ms drug that doesn't belong under the roof. this could happen in the first quarter and when it does, the stock might be a buy. i don't think you can front run
for more than a trade. stock was up almost 4% becaus t because estimates are too high. fifth, vertex intriguing down 41%. it had run up huge in anticipation of a new drug approval for cystic fibrosis that could be a $10 million business. the drug got off to a slower start than expected, although i'm not sure it could e wequal hype. at the jp morgan health care conference, we might get lowered expectations and could be a nice buying opportunity but i think you got to wait before you think about pulling the trigger. if i look at companies that round out the rest of the s&ps, the six largest, we'll get to that in a second, there is the 3 billion-dollar orphan drug but
alexion branched out for $8.4 billion in 2015. and the drugs that have come with that acquisition, less than stellar. how bad? we don't know. but the recent departure of the ceo and the cfo at once, i'm calling that hardly reassuring hence the 36% decline. we got a similar story off 33%. here is another pharma play for $5 billion two years ago and attempt to diversify away. the sells have been good but short sellers loud suggesting the drug will have problems with payers, including the u.s. government because of the monstrously high cost. >> not a trump stock, not a trump stock. >> then there is two stocks of companies that i think have very promising futures but found themselves so caught up in the bear market of 2016. allergan and regenron and the takeover bid and second caused by unforeseen competition from
amgen and worries about the potential slowing of the main product. i think allergan is a plain old buy at 14 times earnings. it's got a mid growth rate. regeneron could be different. it's patton issues, won an important court decision when that very cholesterol drug causing pressure in the stock. finally there is a cycle that sticks out like a sore thumb. health care rock star but the stars are held by endless acquisitions that masked slowing organic growth revealed as subpar without more deals to fuel the business. bottom line, look, it could be worse. these companies could be the two biggest losers but they are not. many like allergan, regeneron are buy or on the verge of being
it is time, it is time for the first lightning round of 2017. wow, take your calls rapid fire. play the sound and then the lightning round is over. are you ready? time for the lightning round. start with john in louisiana, john? >> hey, james, how are you doing? >> i'm doing good. happy new year. what's shake sng. >> caller: happy new year. i'm finally on the phone with themaniac. it's an honor. i've been watching sirius since it was 17 cents and i traded it and made money and now i'm looking to get back into it. >> i like that call. pull the trigger. i think it is an inexpensive stock. i -- boy, do i wish apple would buy them but that apple does what it wants to do. peggy in michigan, peggy?
>> caller: hi, gajim. >> hey, pig. >> caller: i'm glad to see you looking better. you need more sleep, buddy. >> i did get a little burned out. thank you, peggy. i did get a little burned out. go ahead. >> caller: everybody is concerned about you. i wish you a healthy 2017. i wanted to ask you about my stock med tronics. should i buy? >> they downgraded today. the stock was down big and off big from the high. i agree with your idea. i like buying midtronic. let's go to bob in vermont. bob? >> caller: boo-yah, jim. i was wondering what you thought about the carlisle group. >> i typically do not like the stocks but i predict because we don't know what they own, i'm predicting a better 2017 because i think the market is unfrozen and with that cg can make money. let's go to michael in new jersey. michael? >> caller: hey, jim, thanks for taking my call. >> of course. i was wondering what your
thoughts are on therapeutics md. >> we blessed it only as a spectator. we've seen the stocks blow up when you have a couple product the or one. dan in minnesota, dan? >> caller: boo-yah, jim. >> bar ya, dan. >> caller: hoping to get info on the market. >> we're worried about the different companies and supermarket bing. too many are taking shots. i'm not a buyer. let's go to allen in michigan, allen? >> caller: hey, jim, how are you? i'm a long-time listener and first-time caller, since you are the man, you're the man i'm calling. >> well, thank you. happy new year. >> caller: buffalo wild wings? >> i feel like we got to wait for a bigger dip. i'm worried because the minimum wage with cost is rolling over. let's hold off and that, ladies and gentlemen is the conclusion of the first 2017 lightning round.
it's frankly a stretch. gm makes all of the cruze cars right here in the united states. the company immediately told cnbc of the 190,000 cruze cars sold in 2016, 2.4% were made in mexico shipped here. it's ironically how quick the company defended itself. the company does have a point. the cruze is not really an issue. but mexico sure is. a few years ago gm like so many other companies decided to move a lot of manufacturing to mexico, something trump is furious about and witnessed thanksgiving discussions with greg hayes. the president elect was successful getting united technology to stay in indiana with half the employees that would have lost jobs, yes, to mexico. but surprisingly, trump targets individual companies including ford where they decided to
scuttle a new facility in mexico at trump earning whether than nafta. the question is what will he do with the nafta treaty that makes it easy for any company to build in mexico and not here. simply ship them into this great market that is the united states. while it's theory possible, let's just say it would be difficult. i think it's the wrong approach. the real problem with mexico is its currency. yes, the country sustains health care and pollution control laws are loose, absentee is low but the peso makes a draw. freeing mexico to export without tariffs, the dollar could buy four pesos and now 20. you can pay workers down there less than $3 an hour.
substantially below what you pay in the u.s. in other words, it's currency, some say manipulated currency that's the issue and that's what i expect trump to focus on. companies one by one. the truth is so many countries keep currencies low to make experts more competitive and to really hurt us but few of it do better than mexico. a tweet about how the dollar peso ratio needs to change or be adjusted if they support nafta would bring more jobs with gm, ford and united technologies. it's vital because nobody envisioned the trading so low versus the dollar when this legislation passed. frankly it's an outrage. what always gets lost in the discussion are the benefits of nafta. scars and everything else made in mexico would be a heck of a lot more experience without it. get rid of nafta, save drugs and this trade off of cheaper goods versus lost jobs is the real quandary. it certainly is one of the main
reasons democrats join republicans who at the time love profits could be generated by companies moving to mexico. it's why there are plenty roef pub cans that don't agree with trump on the issue. the truth is if you want this rally to be sustained, that's what i'm focused on is stocks and you don't want trump's probusiness agenda of lower corporate taxes of overseas dollars to be delayed by any nafta reform but current approach distracts the real issue. the currency advantage that is very unfair to the franchised people as they are pure beneficiaries of the cheap stuff, the cheap stuff gets made in mexico and shipped here. stick with cramer.
tomorrow. an fertitta: tonight on "billion dollar buyer"... you are the mad scientist of ice pops. i love their products and i love their passion, but if the price isn't right, i might have to pass. we don't sell anything for a 50% food cost. a hip young designer determined to make his own way. i really wanted to make a name for myself. i didn't wanna just make my mommy and daddy's line. an artisan ice pop company struggling to achieve scale. we're a small business that was competing... - with big business. - right. maybe you should stay a small business. if their bid makes sense, they've got this deal in the bag. if it doesn't, i have no choice but to leave 'em hanging. can't beat that. that's pretty awesome, right? come on, up top. my name is tilman fertitta,