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tv   Mad Money  CNBC  January 20, 2017 6:00pm-7:01pm EST

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>> i would say the notion of big gains, the idea of buying call and to find a risk makes a lot of sense. >> that does it for us on this historic inauguration day. "mad money" starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate you. so call me at 1-800-743-cnbc or tweet me @jimcramer. we just swore in our first pure business president. the deal maker in chief, donald trump. and it's a brave new world for investors, or is it?
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the market pretty much yawned after the inauguration. okay, dow edged up 95 points. s&p advanced just 0.34%. nasdaq gained only 0.28%. you know why? because we've heard it all before. yep, we've been living with trump's presidency in waiting for nearly three months, and i can't think of a previous elected official who has given you more of a pro-growth game plan than donald j. trump. he's been giving a dry run for ages now, which is why i've been so flummoxed by the endless pundits who keep saying, look out. here comes a real swoon. now, look, swoons can happen. i think swoons, though, come out from left field. huge selloffs come from viciously overbought markets that are jarred by the unknown. like if trump had ordered all the democrats off the stands, or he said he needs to challenge the checks and balances in the constitution in order to make america great again. we didn't get that. his inaugural entrance was
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pretty much the same thing we heard when he was stumping around the country. whether you love him or hate him, our new president has been pretty darn consistent on economic issues, which, well, is frankly what we have to care about for the purposes of "mad money." who honestly believes that we don't know trump's precepts? were you shocked by his two simple rules, buy american and hire american? were you caught off guard by his call to build new roads and highways and bridges and airports and tunnels and railways? were you surprised that he talked about how other countries are stealing our jobs? if you found today shocking then you haven't been paying attention. president trump is simply sticking to the script that won him the election. now, i almost felt like if we were going to have an avalanche of post-inaugural selling, it would be because the trump stocks had run up so much that profit taking seemed almost inevitable. everything that can be exploited from the agenda has been exploited, and you can't reexploit it all over again.
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but you can't really sell the trump stocks yet either. why? because if our new president is true to his word, you could miss out on some substantial gains that come from the reality of his policies, not just the hype and hope that drove the recent rally. so ringing the register, it could be a big mistake. still, before we get into the specifics of today's action, let me explain why you shouldn't take the president too literally when it comes to stock picking off the inauguration speech you might have heard today. let's start with the biggest theme. his emphasis on buy american and hire american. for the last 23 years, ever since the passage of nafta, our businesses have been trying to buy non-american while they fire american workers. it's almost been a ritual. raise their gross margins. raise profits. raise their stocks. unless there's some sort of transportation advantage, meaning it's too impractical or too expensive to make the stuff overseas, there's a very limited universe of manufacturing
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companies that fit the buy american/hire american bill. try to pick stocks off of it is going to be very hard. businesses move offshore to boost earnings. as for the companies that ignored this brave new world of globalization that's been going on since nafta, they tended to be gobbled up by their more aggressive competitors, which then immediately closed the factories here and moved them overseas, where trump doesn't want them. so the stock traders bought today fit a very narrow america first. i'm not against any of these choices, aggregate makers like u.s. concrete, martin marietta, vulc vulcan, raytheon, as well as ag plays like deere, not to mention anything connected with domestic energy and pipelines, they all fit the bill. they're all fine with me, even up here. same goes for the pure american service providers although they're less visible, right? the variables in some of these
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businesses away from the presidential agenda make this exercise a little more daunting. if business accelerates because of trump's policies, then interest rates will naturally go up, and if rates go up, then logically housing and materials do poorly because it's more expensive to get a mortgage. that's called the business cycle. trump can't repeal it. if we think that we can only own companies that sell locally, we're going to run into the amazon factor. with retail, for example, you'd be buying shares in businesses that are being rapidly disintermediated by the new digital economy. president trump might like those companies but that doesn't change the fact many of these retailers are doing quite poorly. the truth is the president is far from omnipotent. he can't just snap his fingers and turn a loser into a winner. hey, don't believe me? let me give you some historical context that i thought was so ironic. if you ask me what industry president obama most favored during his tenure, i think it would be solar power. but what was the worst performer
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in the s&p 500 during obama's years in the white house? first solar, down 76%, outmoded by new technology. oh, and while we're at it, what was the best performer under obama? cramer fave ulta salon. simply because the obama administration coincided with the era of the selfie and the need to be constantly wearing makeup the moment you walk outside. so let's not get too narrowly focused on trump's agenda. in fact i would like to step back or at least over and view the inauguration as part of the broader continuum that we've been talking about endlessly since he was elected. it may not have been all that clear, but trump's starting fresh. he wants new jobs created here. he wants us to buy american when we can. he wants to change laws and crack down on countries that manipulate their currencies so american companies can keep building things here without hurting their shareholders. trump is, alas, a businessman. he's not telling companies like united technologies or lockheed
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martin that he wants their earnings sacrificed. you never hear that. he's just saying he wants better deals going far. he's a negotiator. he wants to make our trade agreements more advantageous so that american businesses and workers do better. he wants to win on trade, something we haven't been doing if you measure these deals by how much we export versus how much we import to different countries. i know some think that's simplistic but it gives you a sense of who's benefiting the most from free trade. it's not us. so how does the president make that happen? he does it through the tripod. yep, the subtext of the speech today was about the tripod of lower corporate taxes, deregulation, and repatriation of overseas funds. these policies would help companies create new jobs in america, which is why we have to focus on the biggest winners from that broader agenda. i keep coming back to the banks and the oils, the domestic companies not being hurt by competition or the need to import merchandise as well as the companies with gigantic cash
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hoards overseas. there it's a lot of tech companies like apple, alphabet, and cisco, which have a huge percentage of cash that can come back here on repatriation. that's the better, smarter way to invest in the trump regime. i've been emphasizing these stocks ever since the election. and if you stay tuned, you're going to get the full list of what's a trump stock and what's not. now, going forward, there are two major issues. one, how quickly can he jam the tripod through congress? two, will the economy do well in the interim so that stocks can keep rallying from here even if the agenda gets stalled? the second one is probably going to be a major issue. for the moment, i think stocks are more likely to get a honeymoon than a come ummance. let me use an example. ibm. last night ibm reported a quarter that many analysts panned but i still felt it's on track to become a more aggressive cloud-based company. i looked wrong early. then after falling almost three bucks, ibm stock quickly reversed and vaulted, ultimately
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finishing up $3.74. it was one of the most impressive performances in the entire session. i think that's the glass half full people grabbing the vessel from the half empties. that's trumpian optimism seeping into the analysis. still the clock is ticking on the tripod now that trump has been sworn in. i'm betting the tripod stands because the republicans control both houses of congress and the presidency. so sabotaging this agenda would be like sabotaging themselves. here's the bottom line. if i'm right, you should buy stocks into any non-earnings related selloff and be glad you didn't panic out today like so many of the pundits again tried to get you to do because it turns out there was nothing to panic over, and nobody ever made a dime panicking anyway. cody in massachusetts, cody. >> caller: hi, jim. my question is about aetna, aet. i've had the holding for quite a
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while, but i'm just wondering with the health care situation at hand, what you see for this company in the future? >> okay. well, aetna is involved in one of the mergers and thank you for the question, cody. i like to be the one that's merger free. that's united health. it reported a stellar quarter. the stock ran up in anticipation. the stock has come down to a level that i think is perfect to pull the trigger. united health is my favorite. clinton in colorado, clinton. >> caller: hey, jim. booyah. >> booyah. >> caller: hey, i'm wanting to know what you thought about las vegas sands as far as the trump presidency, possible recent c cannabis legalization and the oakland raiders moving there. >> i'm glad you asked about this. i've been thinking about the oakland raiders ever since adam schefter broke that story on my twitter feed. i think las vegas is going to do very well. but the problem with thinking about las vegas is las vegas sands and i think it should be called macau sands. it's much more levered to the
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chinese market. because of that and it's so difficult to figure out what the communist party is going to be up to, that's like i like to have a little step back from pure china and go with mgf, i think it's the best in show. all right. we already know president trump's script, which is why the market gave us a bit of a yawner today frankly. that's why i say buy into non-earnings related selloffs. please don't sell. on "mad money" tonight, just because there's a new leader of the free world doesn't mean we're abandoning the game plan. with one of the busiest weeks of the year coming next week, i'll tell you what you should be watching and what you should be buying and maybe selling. then an historic day calls for an historic amount of time to hear from you, cramerica. you know we've been on top of what the new president's policies will mean for your money, and that's not stopping now. send your calls, your tweets, and facebook messages my way. and it was obscured by the inauguration today. a true blowout earnings report that's leaving apple behind. i'll clue you in.
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stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ 'inon wherhe sffhat matts?thst ♪ urin
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anything with a screen is a tv. stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr
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and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. no, no, no. we're not abandoning our traditional game plan, not with the busiest week of the year for earnings coming up. this is still "mad money," not mad politics. but we can infuse our game plan with the thoughts of the business president because there are political cross currents that could mute or augment the reactions to any of next week's quarterly reports. we start monday with a classic trump stock, halliburton. here's an oil service company that's primed for a drill, baby, drill presidency. as we saw from the reaction to schlumberger's quarter today, you need to be a bit of a booster to get any traction. still, schlumberger's selloff has created some room.
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i like both companies. we also hear from mcdonald's. this one's a test of the strong dollar writ large. mcdonald's is a huge foreign business that will be impacted negatively by trump's pro-growth policies that will most likely lead to a more robust greenback. already has to some degree. that means the earnings estimates might have to come down for mickey d's. but if the ceo can talk more about technology and loyalty programs and how mcdonald's is going to do more to lure other consumers away with speed and price, i bet the reaction will be just fine. when i think about which stocks can help the dow reach 20,000, i always come back to 3m, which reports tuesday morning. here's a company heavily levered to improve worldwide growth but also innovation. i'd like to buy some before and after reports. the ceo follows in the footsteps of a long line of executives at 3m who have made it their business to produce excellent profits while returning gobs of capital to you, the shareholders. that's why i often talk of 3m
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ablgsz the ultimate core holding. procter & gamble set a high bar for the consumer packaged good stocks with its excellent quarter. i feel the bar could be too high for kimberly-clark when it reports so i want to be careful here. the extra sauce that drove procter's stock higher today, it gave some wrong sell recommendations that were kind of based on the analysts participating a rotation out of those soft good stocks irnto moe of the industrials because of trump. woops. some companies can trump trump with their excellent execution. now, what will lockheed martin say when it reports? this is going to be the litmus test of trump's tweets so far. will lockheed feel compelled to trim its forecast because it's cutting the price of that fighter to accede to trump's wishes? this fighter jet is crucial to the company's sales and gross margins. if they don't guide down, i bet this stock goes flying because that will show you how robust the rest of the business must be. on tuesday, we hear from alcoa,
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where we expect that the alum number company is going to be vigorously protected by the president in its ongoing trade war with chinese dumping. but before we get too excited, remember that arconic, the engineered product original that we often think is a spinoff, has registered to sell its 36 million-share position in alcoa. if that underwriting comes to fruition, you know what? buy alcoa on the offering, not in the open market. the railroads have been in the news recently over some very aggressive takeover talk, possibly way too aggressive. i told you i thought you should sell csx yesterday. norfolk southern reports, and its stock has been performing spectacularly, too spectacularly. i want you to be careful with it going into the quarter. remember, when stocks run up in earnings, it's very difficult for them to rally afterwards, even if they deliver terrific numbers. i think you want to ring the register in nsc beforehand even though their biggest cargo, coal, will get a nice big boost
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from the trump e.p.a. boeing's results come out as well, and today merrill lynch suggested that the narrow-body aircraft numbers, they might be weaker than people think. i can tell you the market is not prepared to hear that from boeing. plus we know boeing is a company that could be hurt by trade wars. again, given these two circumstances, i say trim boeing stock before they report. now, many bulls have decided that we're going to see a release acceleration in the global economy, and that cuts in favor of freeport-mcmoran, the copper and gold play. the stock's run dramatically, but it's from a very low level. if you believe both america and china are poised to accelerate, then it's worth buying before the quarter as the company's ongoing restructuring has finally made it so that i'm comfortable with its balance sheet. after the close we hear from two great ones, western digital and lam research. this week, asml, which makes semiconductor equipment like lam does, including machines that western digital might be, gave me tremendous confidence about demand for its own products.
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to me, that indicates that both wdc and lam could report blowout quarters. i'd own them both into earnings. you want an infrastructure play that can last through the early days of the trump administration? well, let's say caterpillar should fit that bill. i say should, though, because there's another side to the equation. cat's been hurt by the strong dollar. you know what, there's too many cross currents here. can't recommend it. but if cat were purely domestic like united rentals, then it would be a home run. unfortunately, united rentals reported on wednesday, too late to give us a call on cat, but i bet it has some good things to say when it reports. we also hear from bristol-myers thursday morning and we learn of another disappointment with their lung cancer franchise today. bulls had hoped if you combined two of their key drugs, it would lead to a dramatic improvement
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in patients. tests showed otherwise. down here at 49, we need to hear that bristol-myers will need to do a restructuring. after the close, we get some controversial reports from alphabit and stark bucks, i call alphabit controversial because they need to rein in more costs or they need to start generating some accelerated revenue. the company has disposed of some of its biggest loser. we own alphabet for my charitable trust, which you can follow along by signing up with the club, actionalertsplus.com. don't forget that alphabet is a big time trump stock because it has tons of overseas cash that it could bring home if congress passes a repatriation deal. you know what that is. the repatriation deal, it's part of our tripod. i'd buy alphabet aggressively if the stock comes down after the quarter because of that cash hoards possibilities if it were to be repatriated to the united
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states. starbucks is controversial because of howard schultz's recent decision to resign as ceo. here's one that's not controversial, microsoft. i expect to hear some excellent news about its cloud business as well as software business, and i think microsoft could have a surprisingly good quarter. i don't know how much it will be rewarded for it, but i think the risk is low. finally on trip i want to hear what the forecasters at chevron have to say about earnings, get a sense of how the production growth is going to -- what's going to happen in this new era of what i call slightly higher oil prices? the earnings themselves, they won't matter that much. we look at production growth when it comes to chevron. however, they certainly will matter with honeywell. i think this man wants to go out on a high note, and i bet you get one although i warn you that the last few conference calls have sounded more down beat than i think dave may have meant them to be. here's the bottom line. the prism of trump and the
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pro-business tripod are potent as we hit the heart of earnings season, but so are the actual numbers. be ready for real opportunities next week. there do be a lot of them, especially if the bears who have been predicting a big trump selloff, timely do get their way. i don't think so. plenty more on "mad money" ahead, including my answers to your calls, tweets and messages on what our new president's policies will mean for your money. then we got to ask, is it -- >> trump stock. >> or is it -- >> not a trump stock. >> the definitive guide on how to tell where your holdings lie. plus one tech stock that's flew higher on an maamazing earnings report. did you miss it with all that inauguration hoopla? stay with cramer.
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we have a new leader in charge. donald trump has taken the oath of office to become the 45th president of the united states. now, if you listened to his speech, you heard him say he wants to hit the ground running, promising to put america first and to follow two simple rules, buy american and hire american. you know we've been discussing this thing since the election. >> trump stock, not a trump stock. >> but i also know you've got more questions now that he's finally in the oval office. hey, you ask. i'm here to help. i'm here to help guide your portfolio, let's say, under president trump's administration. so i thought what we ought to do on this special day is open the floor to you to hear your questions. so first we have a call via skype from one of our loyal viewers. it's dave in illinois, dave. >> dr. cramer, so good to see you on this inauguration day. >> good to see you, dave, for the first time. i'm glad that we are taking this time out to get your questions and have a conversation. how can i help? >> jim, i'm concerned about the
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super freakin' strong u.s. dollar as you like to say, modestly down from a 14-year high last december 20th. are you concerned? >> you know something, dave, it's a great question because today i was very worried that procter & gamble, which reports a magnificent quarter, would be hurt by the strong dollar, and it really wasn't. it gave me heart to think that a lot of these companies that would normally be bushwhacked by it may be able to skate through a little. ibm also has a strong dollar problem, and look how that stock acted. these are two quintessential stocks when it comes to getting hurt by a strong dollar, and they didn't. so i've got to tell you, dave, i'm feeling a little bit more sanguine about that strong dollar than i would otherwise. i want to thank you for all your calls and your incredibly kind comments always. you're a good man. i appreciate it. >> thank you, sir. >> let's take a message from one of our followers on facebook. mary smiley. mary asks, hi, jim.
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i'm increasingly more afraid of what a trump presidency will do to the stock market, especially considering trump can tank a stock with one simple tweet. for those depending on our investments in the stock market to get us through retirement, what do you suggest we do to be safe? you know what, i thought about a lot of this today because we were doing something this morning on "squawk on the street" and carl was mentioning six different pundits. all of them said we are now ready to crash or go down a lot. you know what, in the end trump's a businessman. if we follow and parse all the tweets that he's had, here's what we learn. he specifically is negotiating with these companies to get a better deal either for the american people who have lost jobs or for the government. and the truth is none of the stocks has been hurt by it. and that's because in the end he's a business person. i don't think he's trying to wreck businesses. i think he's trying to get better deals. they're different things. it makes me let's just say more positive than the average person when it comes to trump's relationship with the stock market. let's go to curtis in north
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carolina, please, curtis. >> caller: hello, captain cramer. thank you and the "mad money" special operations team for taking the call. >> my team is so great. we put this thing together at the last minute because we said, we have so much to say, but our viewers have so much to say, and our viewers are so darn smart. let's open the floor. how can i help? >> caller: jim, i see where smith & wesson has named their name to american outdoor brands. anything for long investors to be concerned about? as a follow-up point on that, i also saw a report on sig sauer was awarded the contract to build the new sidearm for the u.s. government. do you think this may impact overall? >> look, i think it's a really interesting move by smith & wesson to do this because it is without a doubt let's say a hot button stock. when you talk about a lot of things it might not have been connected with when it comes to
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violence. the company is incredibly well run. the stock has gotten hit badly because it was viewed as a stock that was going to be a company threatened by hillary clinton. you've got to go buy guns immediately. it's a well run company. is it my kind of stock to own? no. but people ask me about it, and they want a stock in that area. that, american outdoor brands, is the one to buy. let's go to ann marie in new york, please, ann marie. >> caller: hi, jim. thanks for taking my call. >> quite welcome. >> caller: i'm calling from my home state of indiana today, and with the new year and the inauguration behind us, i felt eager to ask you about a basic question about index funds. >> sure. >> caller: and the timing of my deposits. so i'm finally listening to what you said and not having all my money in individual stocks. i'd like to make a larger initial deposit to minimize my expenses. >> okay. >> caller: and then add to it on a monthly basis. but do i need to wait for a pullback to get started or should i get started now?
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>> i'd do something by rote by this and i really appreciate this question. it's one that i've answered a couple times but i'm going to do it as precisely as i can. i like to put my retirement money away in the following way. 1/12. let's say i have $12,000 i have to put in my retirement account. 1,000, january, 1,000 february, 1,000 march. then we get a 10% decline, i put more of that money to work in the month of april. i pull three or four months of that decline, of the money i was going to do each month and put it in the decline right there because that way i end up with a better basis. but because i'm so falable, because all humans are fallible, i do it 1/12 a month. that way i feel i'm not committing all at one level. if the market does get hit, i feel so much better. this has worked for me for 30 years. so i'm sticking with it. all right. now we have a tweet from @risk
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band 24, who said, @jimcramer, @mad money on cnbc now may be a good time to address hashtag bmy. what is going on? still a hold? >> i was very disconcerted by bristol-myers. my charitable trust sold the stock because we had begun to think maybe this is not the same old bristol-myers. this is a company that had a drug called opdivo which we thought was doing great against lung cancer. it turns out it wasn't doing that well. they had a second drug that we thought in combination with opdivo might be doing very well, and it wasn't. that's what we learned today. this is not the bristol-myers of old. this is a bristol-myers that i think got way too promotional, which is one of the reasons that if you followed actionalertsplus.com, you know that we had to leave bristol-myers. it was a terrible thing to have to leave it because it had been such a good stock. but you know what? it's not about being a stock. it's about being a company that gives you a very clear narrative about what can happen. and we have gotten the exact
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opposite from bristol-myers. and i'm not happy, but i'm not involved, and i hope you're not. next up, @kill apod asks, @jimcramer, how do you feel about national oilwell varco? this is really important. i gave a speech at the end of last year that was written up in thestreet.com where i said that when baker hughes merges with general electric's oil and gas business, the first thing they should do is go buy national oilwell varco. it's a great american company. it would fit right in with that new company that is g.e./baker hughes, and i still think it's going to happen. i think the stock is a very strong buy. nov, particularly because oil is not about to plummet. finally @real welcome mat tweets, @jimcramer, you're right. @david faber does look like pena. okay. we're obviously talking about narcos. i mention thds to david faber this morning and you know what he said to me?
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he said, yeah, you know what? there's some resemblance. what can i say? he's always understated. i'm always overstated. all right. thank you so much, everybody, for calling. still more "mad money" ahead. are your stocks at risk from the next tweet out of the oval office? your trump stock field guide is just ahead. plus the double-digit tech mover that was obscured by today's focus on the inauguration. don't miss the news that caused this move that everybody was buzzing about away from the inauguration. and all your calls in the lightning round and the week that was. stay with cramer.
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look, i've said it before, and i'll say it again. now that president trump has officially been sworn in, there's a new rubric you need to use when you're evaluating companies in this environment. it's simple. it's -- >> trump stock. >> not a trump stock. >> dichotomy. which is it? don't get me wrong. i think it's crazy to do everything in the stock market through the lens of washington. you won't profit that way. today may have been the day of the inauguration, but it's also earnings season. and what individual companies have to say actually matters. did you see that skyworks today up ten? that said there's no denying that president trump's agenda,
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especially the agenda of deregulation, lower corporate taxes and the repatriation of foreign assets could have a huge impact on the economy, the stock market, and your portfolio. on the other hand, when our new president's got a problem with a company, he's not afraid to speak or tweet his mind, which can put individual stocks or even entire industries in peril at least for the short term. just because trump is pro-business, that doesn't mean he's necessarily pro-every business. so who does benefit the most from the trump administration's plans and who could be in danger of drawing the president's ire? well, we know we've talked about this before. but i think it's certainly worth recapping the most important trump stocks and non-trump stocks just given the fact that he did take the oath of office earlier today. important day to do this. let's start with what i see as the biggest winners. first you've got the two that are poised to roar even if trump's agenda gets stalled in congress because they've benefited enormously from
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deregulation which is an area where the president has a lot of latitude on how aggressively to enforce existing laws. i'm talk about the energy stocks and the bank stocks. these are the two that are the most bullish in my crosshairs. the story with energy, specifically oil and gas and the pipelines that transport them is pretty straightforward. we know the obama administration was focused like a laser on fighter climate change, which was good for the environment but bad for anyone in the fossil fuel business. trump's pretty much the polar opposite. he's a drill, baby, drill president, and he adores building new pipelines. more importantly, he's going to have to the most pro-petroleum cabinet in history. if the oil and gas industry had a wish list for what their ideal government would look like, you're looking at it. rex tillerson at the state department, scott pruitt, the oklahoma attorney general who has been suing the e.p.a going to be running the epa. rick perry, the former governor of texas who sat on a board of a prominent pipeline company before his nomination, he gets
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the energy department. you think it's going to be about solar and wind? please. i think there are a lot of winners here but especially i like the pipeline plays since they can make a lot of money even if the price of crude fails to keep rallying. my favorite is magellan midstream. it's a pipeline mlp with a juicy yield that we own for my charitable trust. i'd also buy schlumberger, the oil service giant that reported a fine quarter today but the stock pulled back because it had run up in anticipation of any good number, and it kind of got one. that's an opportunity. you know what, you might also want to consider ge, which missed on its quarter for certain because of certain pushback in turbine orders but fits the bill because of its deal with baker hughes. my charitable trust owns both these stocks, you can follow all of the logic behind these moves by going to actionalertsplus.com. second, the banks also stand to benefit enormously from deregulation.
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dodd/frank has made these companies spend fortunes on compliance costs while preventing them from giving their shareholders big dividends and buybacks and the fed has also chimed in in stopping that too. you repeal and replace that whole sector, you know, it gets a major boost. but even if they can't repeal -- and i know that steve mnuchin yesterday didn't necessarily call for wholesale replacement, the president can appoint people to agencies that can be more lax about enforcing the law, which would really help these industries out. i mean all the banks would be benefited greatly if they just didn't have such a heavy hand of regulation. trump understands that for the economy to really do well, the banks actually need to be in a position to lend money to people and not be frightened if they do it. the other thing is that if you believe as i do that our new president's agenda could jump start the economy, then the federal reserve is going to keep raising interest rates to prevent things from overheating. and every single rate hike instantly makes the banks more
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profitable. now, bank of america, jpmorgan, and even the cross-selling challenged wells fargo have all reported strong numbers although the latter's transgressions will probably get overlooked by this new government. good news for wells fargo shareholders. however, the biggest trump stock in the group is goldman sachs and not just because so many goldman alums have gotten high-level appointments includiinclud including steve mnuchin. that's because dodd/frank curbed goldman's ability to trade its own money. relaxing or repeals those rules will boost numbers. this is a riding tide that lifts all boats kind of scenario. next u next, the payroll processors like paychex and adp, because they need these higher rates to make more monday off your deposits. we also like cintas, the nation's number one uniform rental service. more hiring equals more
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uniforms. anything with a huge amount of cash sitting overseas is a potential trump stock. for example, apple has $216 billion in foreign cash that it could bring home if we get a tax holiday on the repatriation of assets from overseas, something i think will be a slam dunk in congress. that's about $40 per share for a $120 stock. what else? earlier this week i called out whirlpool as -- >> trump stock. >> that's in part because they're the last remaining manufacturer of dishwashers here in the u.s. and they really want the government to crack down. president trump wants to spend $550 billion on infrastructure, it might be a tough sell to his republican allies in congress. they're a little bit more tight fisted so to speak. even though we know he wants to bulk up on our military, he's also gotten aggressive on cutting down on cost overruns. what about the non-trump names?
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i think the pharmaceutical industry is the best example. trump singled them out as having the best lobbyists and being really powerful even though they do most of their manufacturing abroad. he said repeatedly that he wants to roll back many of the recent increases in drug prices, and don't even get me started on how much business the drugmakers could lose if obamacare gets repealed without any kind of replacement. in fact, most of health care falls into the non-trump category with the exception of united health group which already pulled out of the obamacare exchanges last year because the business wa so lousy. the drug stocks could especially be murky if not awful here. and you have to worry about any american company that makes things overseas and then exports them back to the u.s. as trump's been going after them one by one. and that was before he even got sworn in. it's also possible that retailers might be hurt by something called a cross border tax that makes it more expensive to import goods. bad enough that amazon's killing them anyway. i would stay away from that group. >> sell, sell, sell. >> put it all together, though, and there's a lot more trump stocks than there are non-trump
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stocks. here's the bottom line. politics isn't the only factor that matters to the market. far from it. but with the gridlock in washington finally broken, it's taking on new importance. at the end of the day, going forward, you'll feel a whole lot more comfortable owning the -- >> trump stock. >> than you would feel the -- >> not a trump stock. >> so let's keep that in mind. "mad money" is back after the "mad money" is back after the break. at mea yan taun o yo% he'sstsursn inl? caal an
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>> announcer: lightning round is sponsored by td ameritrade. this is the great jim cramer from "mad money" on cnbc. a really terrific show. >> wait. did the president of the united states just say that "mad money" is a great show? i think he did. cnbc is running an apprentice marathon tonight and all weekend. i think you should tune in. and now it is time. it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire. you tell me the name of 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." let's start with ike in new york, ike. >> caller: hi, jim. thanks for taking my call.
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>> of course, ike. >> caller: okay. i own activision blizzard which seems to run into resistance at around 39. i'd like your general feelgs about the company and where you think it's wise to hold it. >> my favorite has always been take two. i've been with take two the whole way. it's certainly got more mojo. another, omar in texas, omar. >> caller: a big howdy from the great state of texas. >> fantastic. >> caller: i want to thank you for your market insight over the years. >> all right, thank you very much. thank you. stock? >> caller: hey, i bought a array at 550. >> that's a speculative stock. you have got a chance right now to play with the house's money. take off half and you'll be a winner. and that, ladies and gentlemen, is the conclusion of the lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td
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ameritrade. yo, dad oh, how is it going? >> not bad there, chief, what's shaking with you? [ siren ] >> don't know pena? he's the narc who looks a lot like my partner, david faber, but you can't tell because david faber does haven't a mustache. twins! >> why don't we go to miriam or minimum mim as i like to say because my aunt's name is miriam. >> i love jim. i watch his show. buy, buy, buy, sell, sell, sell. >> speaking of teams, is there any chance that you could -- >> we'd just like to thank you. my son will be graduating this spring debt-free from college thanks to you. >> yes! yes! yes!
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when a company reports a great quarter, you don't just want a blowout. you want a road map for further blowouts. that's exactly what skyworks solutions gave you last night, which is how you get a stock to rally 10 bucks in one day or 13%. >> hallelujah. >> on a day dominated by trump's inauguration, it might be
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helpful to say a few words about the session's biggest gainer and how it came to be. one thing's for sure. it had nothing to do with washington. honestly. i don't know about you. i find that a welcome relief. if you don't know skyworks, it's one of a group of semiconductor companies that got pigeon holed as helpless but grateful for being an apple supplier. what are the others? you've heard them. e vau go, broad cam, texas instruments, nxpi, qualcomm, qor qorvo, all held hostage. texas instruments was always the paradigm here, a company that has a substantial apple business but never enough for it to be the be all and end all of its whole book. i always felt that should be the goal of all of these companies. just make apple part of the pass teej, for heaven's sake. then when ivago bought broadcom and then adopted broadcom's name, they grew into more than apple's indentured servant. qualcomm, which apple sued today
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for monopolistic practices, has decided to buy nxp semiconductors to diversify away from cell phones. sirius logic has so much of apple's sound business i don't even know what it could do to -- they just got to ride the tiger. qorvo is trying, still needs more diversification. then there's skyworks, which has been the most aggressive at winning more and more apple business and has therefore become almost a pure derivative play of apple. at least until this quarter. there's now enough business involving mobile connectivity away from apple and enough of a road map of the future toward 5g, which will be so much faster than the current 4g standard, that you can see why the stock soared today. it's free. it's free of apple. rather than saying how much of a certain large customer might need them, they use that term because you aren't suppose to mention apple's name on any conference for fear of losing apple's business. skyworks talked about how all the devices needed to shift if they want to run netflix,
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spotify, and waze. as the ceo pointed out in what was a pretty electrifying conference call. if you want, and i quote, ultra-fast, low latency, highly secure and efficient connections as well as location based services, end quote, you need skyworks chips in that device whether it's a cell phone, a connected home with amazon's echo, or google's home or a connected car. and it's only going to get better as we await the rollout of 5g, which will allow you to download a full-length movie in seconds as opposed to the current iteration, 4g, which can download a movie in minutes or 3g that used to take a whole day. this quarter was all about what skyworks called, and i quote, growth and success outside our largest customer, which was music to analysts' ears, especially when the company told us that their inventories are lean and they're happy with the current state of demand from both the mobile and connected worlds. now, skyworks hasn't lost any apple's orders. it's still 40% of the business. but when you hear the streak of
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customer names away from apple, including the clear number two, china's wa way, you get a level of comfort that makes you at the lot more willing to pay more. how much? certainly more than the stock's current valuation of just over 12 times next year's earnings. that's why skyworks can, i believe, resume its long term upward trend that ended when wall street started fearing excessive exposure to apple and apple's decline in its growth rate. perhaps the stock can even run back to 110, where it was 18 months ago, up from 78 only yesterday and 88 after this incredible move today. stick with cramer. et anveget tir? our neveiringd tiw*i'm tsnd a stnvtor v
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ev ov new president, new game, new rules, but we'll still work together to try to make some money. i like to say there's always a bull market somewhere. i promise to try to find it right here for you on "mad money." i'm jim cramer, and i'll see you monday!
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