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tv   Mad Money  CNBC  August 22, 2017 6:00pm-7:00pm EDT

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>> eww >> dirty dancing's the 30-year and anniversary today. snap, room to the upside >> guy. >> guy. >> put something in here >>great. tomorrow night at 5:00 "mad money" with jim cramer begins right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. did today's rally mean anything yesterday i told you about the unimportance of the morning's
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hard selloff is this advance meaningless as the recent decline look, i want to say it had more substance given its magnitude, the dow gaining 196 points nasdaq vaulting 1.36%. but we are in a totally erratic moment in a totally erratic month where i believe one day never seems to beget the next. but that doesn't mean we can't ponder why we went up to measure the meaning of this rally. i came up with 12 reasons why it happened, and some of these reasons have enough staying power to keep the advance alive. let's start with copper. that's right copper is breaking out to a three-year high. this means something because it's used to build things. it means we've got a stronger global economic growth spurt than people are talking about. a necessary ingredient for any sustained advance.
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that's why the stock of free port has been the market leader. largest copper company we have caterpillar is right behind them you need cat machine it is you're going to have a mineral rally. this move is also including the breakout of the stock of alum nick maker alkoa that's been hanging out in the 30s forever. china is strengthening and reverberating throughout the industrial world people just don't want to talk about it i like it. check staying power. second, do you know what when things were bad, we used to say europe is bad, we're trading in sync with europe. when europe goes, we go up the european stock markets of late rally, we rally europe's economy is strengthening, and it's lifting the profits of our industrials, like those of, which reported a record quarter tonight, as you will hear when
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we interview the ceo later in the show we're now benefiting from the strength of europe's economy and its currency third, interest rates have moved up ever so slightly. given how oversold the bank stocks are, they're making their cue from the yield on the ten-year, and it's ticking up a few basis points some might argue this bump-up in interest rates is how janet yellen could react to the strength of employment that makes people feel maybe a december rate hike is back on. banks need rate hikes more than anything else. this group's been roughed up i'm declaring it over. mitch mcconnell told us yesterday that there's zero chance that congress will fail to raise the debt ceiling. zero chance. many, including me, have been agonizing over this debt ceiling issue for ages america is not going to default, mcconnell said
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and we will get the job done in conjunction with the secretary of the treasury. congress is only in session 12 days in september. they get this done, maybe, just maybe, we could have a serious discussion about tax reform. but mitch mcconnell doesn't have a good track record. fifth, the president was on message last night we've got used to him causing so much uncertainty that when he talks like he did last night, the market breathes a sigh of relief defense is the one thing this congress is willing to spend more on, and the new afghanistan plan is great news for that industry they are reliable leaders. aerospace and defense also includes boeing, the leader in the dow, which roared today. people underestimate the tñ[ bowing to the entire market. sit a terrific company and usually important and not
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necessarily a tech stock sixth, do you know that we've had a huge correction? 40% of the stocks in the s&p 500 are down more than 10% from their highs. if you were waiting for a correction to start happening, to do some buying, it already happened seven, jeff gannett, the ceo of macy's, came out this morning unequivocally declaring that his dividend, which yields 7.39%, is safe he also made sure to talk about monetizing the value of his company's real es tatate ventur. he said that he did not think that the fourth quarter would necessarily be promotional that's a nice change from the previous quarter's conference
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call anything positive from retail after the destruction brought by foot locker, it's most welcome eighth, the data center is on fire last time we had cyrusone on the show the move to the cloud is so aggressive, you have to feel terrific about this portion of tech many believed might have its business peaking vm wear is on premise, that means it's at the company and not in the cloud and that term, let's just say -- as deutsche bank describes it, it was supposed to be amazon road services road kill. but there's no erosion in this kind of business that vm ware does the fact that both the amazon web services cloud could be doing well and everybody else's cloud is doing well, that's a
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positive and speaking of the cloud, as you'll hear just passed the $10 billion run rate in lightning speed and i would use any weakness to buy the stock. it's an eight cylinder engine firing on nine cylinders nine, once again, the f.a.n.g. tech plays are on the move micron, which makes chips and lam research were trying to desperately to break out these are ridiculously cheap stocks people worry that too much has been spent building new plants so supply is going to overwhelm demand non-f.a.n.g. tech is crucial i like what i'm seeing in
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nvidia, which was the leader in tech, which was incorrectly viewed as disappointing. who thought the stock of nvidia could run like this? my dog nvidia wanted to go bag to being called everest until today's action tenth, let's deal with the el vanlt -- elephant in the room apple, something nthe stock rale today. everyone searches for what is right. they buy it first. can you cue the william tell overture some classic growth names are doing better, too. starbucks, oh, man, speaking of bow wows, today morgan stanley is pricing in the idea that the
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company is not growing like it used to. but that's already baked in and people have a chance to buy. and mcdonald's, how about that thing. it's been a huge leader. biotechs are igniting. the video games stocks are done pausing, and they're now recharged and ready. these are all important for a market wide rally. 12th, finally you have some big earnings reports they have all reported, and the earnings weren't any good, the market didn't think so but nobody cares a market that shrugs off what are perceived as disappointing quarters is a market that could roar on good numbers this one's got positives and it ignores the negatives, which means that you can have
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some momentum of its own the bottom line, yesterday's early morning trashing was based on nothing at least today's runs got some underpinnings, which is unusual in august. i've said we so frequently trade on nothing and make up reasons for every move in every direction. today, we didn't have to make them up, they were right there for all of us to see james in pennsylvania, james >> caller: hi, jim, love to show >> thank you, buddy. what do you like about it? >> caller: everything. >> oh, good. >> caller: advanced auto parts did not meet their quarterly goal and the stock continues to drop sit a good time to get in? >> no, this is abindustry -- i've spent more time with people in this industry who don't even know themselves why it's so bad. have you seen snap-on? i mean, wow! we have to stay away from this industry there are a lot of industries that are doing well. we don't need to go where things aren't good. john in michigan, please, john
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john john >> caller: hi, jim thanks for taking my call. >> good to have you. >> caller: yes my question is, i recently bought p.e.t.s. and i bought it at its high and one of my top holdings and it's really fell. should i try and take that money -- >> i want you to buy more. you know my thesis on this i think this group continues to go higher with a little breathing room now and then. all right, there are some real underpinnings to today's rally and it wasn't expected remember how many people on thursday said the bull was dead? where are they can anyone find them on "mad money" tonight, they're throwing in the towel on the $20 billion buy-in of american
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energy boy, was that stupid what it means for the whole oil sector then my exclusive with cardinal health can the company turn around? the ceo talks to me exclusively, next stay with cramer >> don't miss a second of "mad money. follow @jimcramer at twitter have a question? tweet cramer at #madtweets send jim an e-mail to or give us a call at 1-800-743-cnbc miss something head to ♪
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and salesforce just hit over $10 billion faster than any other enterprise software company in history. don't take it for me, let's check in with the founder, chairman and ceo of and find out more about this record quarter. welcome back to "mad money." >> jim, thanks for having me great to be with you >> you hit the $10 billion mark, but the deferred is much bigger than that. >> that's right. >> it looks like every region was incredible europe was great are these some big orders that you got, or just a huge multitude of large size? >> jim, you can see the business is doing than tas tifantastic. sales force exceeded $10 billion faster than any other software company in history in addition, just like you mentioned, we have $15 billion in on and off the balance sheet deferred revenue that is the predictor of 5juó revenue growth
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that is revenue we have signed and not yet recognized now we can clearly see, we are fast tracking to $20 billion >> you're doing a $20 billion forecast right here, right now >> i am. i have never been more excited about getting to $20, because $10 is behind me you have to look forward to the future and see what's coming >> i'm confused. we have a terrific chart here who is the indisputed crm market leader and it shows you with 18.1%, ranked number one but your good friend, larry ellison, he said we told more than $2 billion in cloud annually this is the second year in a row we sold more cloud than who's right here >> i think the numbers are right, jim we just pounded oracle in the quarter. you can see it in the market share numbers. you can see it in that chart that you've gone to many times
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that sales force is considerably larger than oracle, and the spread continues to go and you can see it in the top line growth numbers. look at that growth. we are forecasting now 24% growth for the year. we raised our revenue guidance by $100 million for the second quarter in a row that's incredible. and i've got dreams of 25% >> 25%, i think people have to recognize that the market size is much more dramatic than when we started talking about ten years ago. the crm market in 2020, how could it be more than $50 billion? >> well, jim, the forecasts are that the crm market is going to $1 trillion. and that is what we are getting excited about, and that is what is really motivating this growth you can see it on the chart that's on the screen here. the crm market has gone to the largest and most important market in enterprise software. it used to be operating systems
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and databases. it used to be other things in enterprise software. now it's all about crm and we are number one in the fastest growing segment in enterprise software that is growing our revenue so dramatically. >> you've got some interesting new clients now. i want to talk about airbus. one that surfaced quickly here david shulkin of the department of veterans affairs is trying to get this department up to snuff. so he brings in you to try to help fix the v.a.? >> well, yes, we did we closed a very large agreement with the veterans administration this quarter, jim. we're going to help them build great systems to support our veterans nobody deserves high quality systems more than our veterans and we are delighted to work with the u.s. government building a system that supports our veterans >>the u.s. government itself i a bit of -- you always say keep an open mind
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are we still open minded towards the u.s. government given the most recent news events? >> one thing we're open minded about is this is the quarter they really started buying again. they just have not been buying that much in the previous quarters, and now that the budget and these things are behind us, we see agencies like the v.a. able to buy again that is very exciting for companies like sales force >> so it doesn't matter who's president in that case, and it's not necessarily a conscience issue, whether you do work for the president. >> i think it's important to do work for our veterans, and that's something we're doing right now. >> you have this -- we talked about einstein many times. you're saying that einstein helped airbus to use artificial intelligence to more accurately understand its customers what is airbus doing with a.i. that makes it so that they might do better than somebody else >> what a great question, jim. here we are, we've been talking
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now on hooin heline here with yr more than a decade and talked about the emergence of the cloud. everybody understands how important the cloud is it's the single most transformative technology in software today everybody understands mobility now we're really see thing incredible new capability that's driving so much growth in enterprise software. we're the first to deliver artificial intelligence in all of our products that are helping aur customers to do machine learning and deep learning using einstein and einstein is sales force's a.i. platform that is the jet stream -- the next generation of products it makes them have the ability to make much starter decisions about their business each day, and you can see that with the customer that you mentioned, airbus, where we signed a very large agreement this quart tore
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help them to take all the customer and machine data that they have and make much smarter decisions with it. >> what was the largest order you nailed down this quarter >> well, jim, that company and that customer has asked us not to name them, hike many of our customers. i can tell you it was one of the largest automobile manufacturers in the world, signed a wall-to-wall agreement with us, in sales and services and marketing and commerce very, very exciting. another great company that i'm super excited about is louis vitton we've been talking about the great services we've been doing for them for automating their retail stores and helping them to get connected with their customers. now you probably saw they launched a new watch this watch is fantastic, jim and one of the things that's exciting about this watch is that it has a one on one relationship with every customer that wears it. the l.v. pass app is built on
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sales force. so now we have this luxury retail brand all connected with sales force. >> well, i've got my apple watch. i'll have to look into a louis vitton watch you were the leader in talking about equality as far as i'm concerned and conscience as the ceo. you know that there's been the disbanding of two different councils with president trump. people have been coming forward saying listen, in my conscience, i cannot work with this man. where are you, if he called you right now and said look, i need your advice, mark. will you help me >> well, you know that i've worked with three administrations, and i have a set of core values you mentioned one of them, equality another is love. and the things that are important to me, you know, don't change administrations change, jim. and yes, i went to the white house and he asked me what should we do i said focus on apprenticeships.
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with all of this artificial intelligence that's happening, we're going to have more job displacement ever. we need to do job retraining that's why we're working to have a 5 million apprenticeship dream. for the ceos that call me and ask me what to do, should i say, should i go? i don't know what to tell them, because i didn't join any of the councils because i learned a long time ago the best thing i can do is just give my best advi advice and the best way is not to be incumbered with any job with any administration >> let's leave it at that. mark, congratulations on a record quarter chairman and ceo of >> jim, thanks so much >> the stock's been a horse. you see why. it's not done going higher "mad money" is back after the break. coming up, is this health care company in need of treatment? >> we are a critical force for
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virtually every provider in the system >> cramer sits down with the ceo, next.
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♪ the oil stocks, they have been in freefall >> sell sell sell. >> for weeks each as the price of crude is hanging in there at $47. many of the oil names are closing in on their lows from january and february of 2016 which is incredible, because back then crude plummeted down to $26 a barrel. that's some $20 lower where it is today some oil and gas stocks, especially the oil service plays, have already crashed through those levels the bear market in oil, which took a slight breather today, has been relentless. hundreds of shrewd bargain hunting portfolio managers are
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aghast at these declines why is this so stunning? going into this year, there was a widespread belief that domestic gases, particularly acreage in the permian basin, could be lucrative, even with oil below $45. thanks to all those breakthroughs in drilling technology many thought that producers could still make a killing at these levels after this last quarter, though, with so many earnings disappointments, we now realize that the vast majority of oil companies are spending more than they have to produce less than we thought and even the best properties simply aren't proving their worth. now comes the total moment of truth. i'm talking about bhp's unloading of its remaining shale holdings left over from the company's disastrous $20 billion buying spree six years ago, with
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the company selling assets all over the sales are being done from elliott partners, which has stressed these assets are worth more to other companies. when you look at the shale fields bhp fought, you have to wonder if someone lost their mind calculating value then it paid a 50% premium for petrol hawk at the high of the speculative boom for $15 billion, they got 1 million acres of permian properties the company has been trimming some of these assets of late, because the ceo andrew mckenzie now viewing these holdings as more of a curse. that's right, more of a curse. hardly a ringing endorsement because of all the money that needs to be spent.
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bhp stock has been a huge winner, because we've been in a roaring commodity bull market and this company is a mineral giant. these asset also be the determinant of the entire pricing environment for domestic acreage going forward and for the stocks they can severa s ths i don't believe wall street has any appetite left to provide financing for companies that might want to purchase these holdings oil companies have been forced out of the equity market, the door is closed so buyers are left to come up with their own money right now, we haven't had any price discovery during this awful period now with these assets for sale, we can find out what this shale acreage is worth estimates for the properties are all over the map suffice it to say, if it's
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anywhere near $10 billion, every oil stock is way to cheap and you have to buy them hand over fist fortunate it will, it doesn't matter for bhp it's a fabulous company. the stock still goes higher once the petroleum properties are disposed of. these potential sales aren't getting the attention they deserve at all right now we're all flying blind when it comes to the value of oil stocks that are in freefall. maybe at last we can get the long awaited consolidation that would end this incredible pain rick in florida, rick. >> caller: hey, jim, thanks for taking my call >> of course >> caller: about two years ago, i bought exxonmobil. >> yes >> caller: at about $78 a share. in the last couple of days, it's dropped below where i originally bought it two years ago.
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so what do you think >> talking with my writing partner about this all the time. i think a lot of people are hiding in exxon. but it yields 4% i cannot advocate selling the stock when it yields 4%. i'm going to say it's okay notice i didn't say pound the table. i'm just saying you don't need to sell. oil stocks have been in free fall the bear has been relentless we need consolidation in this group badly. that's what i'm looking for. much more "mad money" ahead. is there any hope for the drug companies? let's re-evaluate with cardinal health i'm finding out if the stock's decline could be a buying opportunity. and when the f.a.n.g. stocks rebounded nicely, find out how a single stock can have such an effect on the stock market stick with cramer. for your heart...
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♪ this is a tough one. we have to find out whether there's some hope on the horizon for the once red hot wholesale drug distribution stocks that have had a hard time of late
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cardinal health, the stock is not having a great year, declining 20% in 2016. the industry has been hurting a long time. the weakness in the drug wholesaling space has caused cardinal to re-evaluate their entire business. they made a deal we praised on the show but the core business has some problems cardinal reported nearly thee weeks ago, the company delivered a nice top and bottom line beat. even more important was the guidance because investing is all about the future, right? cardinal's full-year forecast for 2018 was lower than expected in part because the company mans to spend more money in terms of division result, the stock stumbled 8%. i think lost in the entire shuffle was the fact that cardinal's guidance for 2019 was
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much better than people anticipated. if the company had hit its targets, it's a great grower, and it has a 2.9% yield. so has the stock come down enough let's take a look with the chairman and ceo of cardinal health welcome to "mad money. >> thank you >> good to see you, george have a seat. cardinal health is a gigantic company that we've all death wi - all dealt with but we don't know >> it's the largest company we never heard of we touch hospitals, clinics, pharmacies on a given day, we touch every part of health care. >> you have a generic business for the longest time that was the greatest business. now there's such a deflationary pull that it's difficult to say it's stabilizing you really can't, can you? >> it's been a difficult
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environment this year. having said that, and having been in the world of generics for some time before i was here at cardinal health, these are cycles we've seen before this was a period in the last couple of years, between 2014 and 2016, where we saw market inflation, more than usual actually so the pattern we're seeing is more typical what's been striking is the steep curve up and the steep curve down that is very hard to adjust to over the long haul, our perspective is, we create a huge amount of value. we partner with cvs health, so we're an enormous purchaser of generic drugs, and we can reduce our acquisition costs faster than the prices. >> the system cannot live without you. you handle too many drugs, too many hospitals and doctors you're too important to be boxed out of the process >> we are really -- we use the tag line essential to care
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we do on a given day, we're probably touching about 80% of the hospitals in the u.s 60% plus of the pharmacies and clinics. so i think we are a critical force for virtually every provider in the system >> it's important to note that you're a force of great importance in this national opioid epidemic. i want to go back to earnings, but you made a point that this is for you a very important issue. >> this is an important issue. it should be for all of us as a country. it's an epidemic that touches families all over the country. the area around our headquarters, columbus, ohio, if you draw a circle around it in appalachia, this is an area hard hit. we decided we're going to lean in aggressively to try to do some things in the communities to help. particularly around education and clinical education we've done that through a program called generation rx >> good, because we need it. in 2009, you had a similar
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downturn i remember this period, people said cardinal health is done then you had a sustained period of outperformance that mademe think, how could i have not been recommend thing stock? you were using numbers that make this stock ridiculously cheap. what level of confidence do you have on that 2019 figure >> we have built a portfolio that's robust and balanced and touches the health care system that is in line with the future of health care we know we're seeing changes there's convergence among different health care players. movement towards a more pay for outcome or pay for value, opposed to pay for service so we built something that's more attractive to our customers. it's not just pharmaceutical and medical device distribution. >> you look in the hospital and it's your stock. >> these are household names, they're the staples of the
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health care system we think we can provide those kinds of broad basket products and services that are going to be -- the system needs to improve its efficiency >> when you closed on this med tronic deal, this was a big change for you what is it looking like for you? >> we had a town hall meeting this morning >> you did >> i love doing them we had the leader of that business up in front of the group. and they are pumped. our organization is extremely excited because it's so naturally down the fairway for us these are the kinds of products and channels that we use a all the time so it's really leverages things that we know how to do and building on capabilities >> health care reform, it kind of got sidetracked good or bad for cardinal health? >> i think the health care form in general, care needs to be more efficient, more highly coordinated. it has to be delivered in the
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right sequence and setting in the right way. those are things that i think are good for us. the dialogue with our customers as they think about the future is sort of moving towards us i feel like we're on the right side where the care is going it's all about efficiency, coordination, safety, quality, outcomes >> why if someone is watching should they buy now versus waiting to get closer to 2019 when we know that you're positive >> i'm always reluctant to tell people when they should or shouldn't buy. but we have devoted enormous energy resources to building a portfolio that's valuable and enduring that to us is the key. something that is going to last the test of time we think we have that. we've got a lot of work to o, but we're going stay at it >> i'm glad you came on the show that's george barrett, ceo of cardinal health, the biggest company you never heard of "mad money" is back after the break.
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round. [ indiscernible [ buzzer ] and then the lightning round is over are you ready, skedaddy! time for the lightning round todd in new york, todd >> caller: hey, jim, how are you? s i am good. how about you, partner >> caller: doing real well i appreciate all the good information you provide. >> thank you >> caller: and i'm calling today -- you're welcome. i'm calling today because i want to know your opinion about corning. >> people were saying that there's too many tvs in the system why isn't best buy down if that's the case? i'm more inclined to buy corning. russ in texas, russ. >> caller: hey, jim, how is it going? >> doing well, how about you >> caller: doing bell. i'm hooking for stocks to get my kids interested in investing and i was wondering with this recent drop of over 18% in the past couple of months, is this the time to buy hasbro
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>> it's incredible i am with you. i'm hitting the bull button. and saying buy buy buy let's go to jim in florida jim. >> caller: hello, james magelicutty. >> that's what my father used to call me. what's going on? >> caller: trying to beat the heat down here, for openers. but curious about proctor and gamble >> no one ever got hurt buying that stock we got a battle royal going on with the management there. the stock keeps going higher i say two thumbs up. chris in maryland, chris >> caller: jim, boo-yah. >> boo-yah >> caller: just new trader here, getting my feetset underneath me i want to thank you and your crew my question, pure storage. last quarter, just before
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reportings, a 12.5% move and was up about 30% on the week, very similarly positioned right now, indicating another double digit swing >> i mean, the problem is, everyone wants to be in that business i would rather be -- i think you're too kind. all of your analysis is right, but the problem is, i don't know the direction of the move. so i would prefer you to buy i'm taking bernie in massachusetts, bernie. >> caller: boo-yah, jim. >> boo-yah >> caller: i would like to have your opinion on board balk piwak pipeline >> i don't think their pipeline is all that good that, haj, is the conclusion of the lightning. >> the lightning round is sponsored by td ameritrade that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades
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♪ on a day where the averages came roaring back in the f.a.n.g. stocks rebounded nicely, we need to talk about how one single stock can have an enormous impact on the broader market we're going off the charts with a brilliant tech nitechnician, s to be my colleague at to get a better sense of the power of netflix.
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that's right to show you how the netflix tail can wag the entire dog of the nasdaq 100, he likes to use the concept of the butterfly effect. it's created by the mathematician edward lorenz in the '60s he noticed small changes in the weather calculations could have huge effects on the final results. it applies to any complex system, including the stock market small causes can have large effects. hence the analogy, a butterfly flaps its wings in asia and causes a hurricane on the other side of the world. what does any of this have to do with netflix simple as far as he's concerned, netflix is that butterfly. and its small flapping wings have an outside impact on the broader market we'll look at the first chart, which shows the performance of
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all four f.a.n.g. stocks over the past year. as you can see in the past 12 months, netflix has left the other f.a.n.g. stocks in the bust, giving you double the gains of its next closer competitor, facebook that's amazing i bet you didn't know that however, as you can see in the next chart over the past month, netflix has become the worst performer among the f.a.n.g. stocks let's zoom in and look at how these four names have done since mid july netflix is down 10%, leading alphabet and amazon lower. facebook has been the only one that's been able to rally. as he sees it, the weakness in netflix, the pullback here is the initial input into the complex system that is the stock market it's the netflix butterfly flapping its wings and has an impact on the other f.a.n.g. names. but that's just the tip of the iceberg. if you want to see the butterfly in action, take a look at this
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chart. it contains the 100 largest financial companies that trade on the nasdaq. this is a huge index so how much impact could netflix have with this decline well, that's the point he's making, it has a much larger impact the nasdaq 100 is a market cap weighted index the larger technology companies have an outsized effect on its performance. just facebook, amazon, netflix, alphabet and microsoft account for about 40%, and that's not including the power of apple, the largest company in the world. when these stocks move, they take the index with them that's why he wants you to see two versions of the nasdaq 100 here there's the actual index in red, and equal weighted version of the index in green where every stock counts the same. given the strength of the f.a.n.g. stocks, he points out that the real market weighted version of this index is about
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4% higher than the equal weighted version, with a larger and smaller companies with the same impact. in the past, f.a.n.g. stocks, like netflix, have given the entire index a real boost. but that's what he's concerned about. today's rally aside, over the past month, netflix has gotten hammered along wits f.a.n.g. cohorts amazonand alphabet if they were important enough to give the nasdaq is boost on the way up, they can drag it lower if they trend down if a stock like netflix keeps going lower, more and more weak handed investor also sell it because many of them have no real conviction at all they only own f.a.n.g. because they wanted something with momentum they don't even know who f.a.n.g. is. if the weak handed owners give up on f.a.n.g., other inves for also give up on the nasdaq and
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that could end up selling the key index, as well obviously, netflix alone can't crush the whole market, but you get the point. it could be the catalyst that starts a chain reaction of selling. this is august, stranger things have happened. that's netflix it's okay. so let's circle back to the daily chart of netflix itself. after a powerful move higher, look at this the stock's upturn made a we arish tr-- bearish transition. we had a big one-day rally, followed by three sessions where netflix traded sideways. followed by a large red candle, a big single day decline that erased the earlier gains since then, the stock is hanging on a floor of support in the mid 160s, along with its 50-day
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moving average of course, the f.a.n.g. stocks had a big day today. but look at this look at what's hanging in the balance right here this is why everyone was so bearish coming in today. people were make thing asthe key stock thinking it's going to break. the chart suggests this market may have gotten ahead of itself. sooner or later, he thinks there will be a day of reckoning, and some butterfly is going to take flight and hurt the whole market and it's going to bring down some large cap stocks. he might be too pessimistic, but after looking at this, no one has ever gotten hurt being a little more cautious after a big up day look how bad that is stick with cramer.
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some fret about the sales force, oh, please, good quarter. i like to say there's always a bull market somewhere, and i promise to find it for you right here on "mad money." i'm jim cramer, and i'll see you tomorrow
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