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tv   Mad Money  CNBC  September 12, 2019 6:00pm-7:00pm EDT

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bogey bifurcates. >> jp morgan long np jdx buy that one. >> happy birthday chris ver own, exxonmobil get you kun >> does it for us see you back adon" thorrow at 5:00. "m meywi jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain, but to educate and teach you so call me at 1-800-743-cnbc or tweet maine @jimcramer. i hate to say it, but i think the buyers are getting complacent in this market.
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>> they know nothing >> after a day where the nasdaq climbed .30%, although we were much higher most of the day, this feels like one of the moments where the bulls are trying to have it both ways on a bunch of key issues. that's not good. some things are mutually exclusive. today was a good-looking day that was actually quite ugly yes, the inside didn't lock like the outside. and you know i don't think you should judge a book by its cover. i know hope springs eternal. but today we saw too much hope too much hope springing eternal. and some of these hopes simply can't be reconciled. so they won't work in the end. what do i mean you can't have the bank stocks keep going up while the financial tech stocks also go up it's either one or the other, because portfolio managers only go all in on fintech when they're scared to own the banks. you shouldn't have a rally in old tech coupled with a rally in new tech that doesn't work. they tend to trade in opposite
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directions today you had the soft goods stocks running right alongside retail the soft good stocks are a recession place. the retailers are economic expansion place. you see how that's problematic so what is going on here where the heck did the rotation out of one and the other go? why does it a pure play on industrials were able to buck the upward trend, and only because some of them gave downbeat analyst presentations today. it's simple. i know the answer because i've been around for a while. somebody's wrong [ buzzer ] this market's presuming this things are good everywhere, and i know that's not going the pan out, because it never pans out that way let me explain for a long time, this market has been hemorrhaging money. individual investors have left this stock market in droves -- >> sell, sell, sell, sell, sell, sell, sell, sell, sell >> hiding their money in bonds seeming at any level in many ways stocks are still discredited asset class. these days the marginal buyers tend to be pension funds, individual investors buying investment funds for retirement or companies repurchasing their
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own shares who can blame them for staying on the sidelines stocks do trade erratically. there is no consistently whatsoever, and we've now rallied for seven straight days, a pretty long winning streak that means the buyers will soon be exhausted more on that later the lack of new capital coming in often means you get whippy rotations. depending on whether the interest rates are going up or going down but not today. today nearly everything rallied. look, while i'd love to believe the reason why that is it's a tsunami of the new money coming into the market driving everything higher, the statistics say otherwise in fact, we're experiencing one of the largest migrations from stocks to bonds in ages. no wonder a big ipo that came today, a smile direct could be one of the biggest first day busts in years if you bought at the opening, you got hammered which brings me to the real explanation for the all too rosy scenario i believe some of the buyers will be plain wrong, and once
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the smoke clears, they are likely going to lose a lot of money. first, let's talk trade. right now buyers are under the impression that we may be having a fall in our trade war with china because president trump extended a goodwill gesture by pushing back the next tariff bomb by two weeks. think of it as a birthday present. in return last night, the chinese said they'd be willing to make an interim deal on trade if the white house would be willing to separate purchases of goods from their other more serious demands, like intellectual property enforcement, getting rid of the bogus joint ventures when they make our companies join with local partners so they can steal all our ideas. sound good just one problem it's a complete misread of the situation once again by the chinese. they just don't get it well, i think china may be suffering something substantive, you've got to remember why president trump started the trade war in the first place it's because we've been getting kicked in the teeth for years.
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see, initially it was focused on the trade deficit. if the communist party bought a lot more goods from the united states, they probably could have nipped this whole thing in the bud but they didn't. now the president is digging in his heels. the stuff that really matters as far as i'm concerned, and that's why the chinese response to the president's two-week reprieve is so tone deaf we're way too late in the game for them to be appeased by a soybean pie, for heaven's sake chinese, what are you thinking a story floated earlier this morning that the president may want to do deals soon was erroneous, according to my sources. the truth, without some concrete change in china that undoes years of unfair practices, don't get your hopes up. so the people who think we're close to a trade deal, people who are buying lots of stock who benefit relations with china, think apple, starbucks, the semiconductors, they're going to be disappointed. that's what i'm betting. we're seeing something similar in the bank in the fintech stocks the people buying bank of america and jp morgan are betting the economy is going to get better, which will cause
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long-term interest rates to rise and make the banks more profitable on the other hand, on the people buying visa, mastercard, paypal are wagering that the economy will weaken, rates will come down, and you want to own the secular growth stories that can still put numbers in a slowdown. something is wrong i suspect the buyers of the bi i don't see much to indicate we're really getting stronger economy. for that happen, the fed needs to cut rates, and they need to cut them big and soon. and that would give us the boost we need. but i fear fed chief jay powell will want to be measured he'll say we need to see further slowing before he cuts again when the fed meets next week plus, it probably doesn't help that the president does keep calling the fellow a bonehead and demanding that he cut rates aggressively don't get me wrong we absolutely need lower interest rates the president is dead right. we're totally out of sync with the rest of the world. that is not a refrigerator you catch more flies with honey than vinegar vinegar is good for descaling
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the keurig, by the way i'm not sure trump will be able to convince powell to do what he wants. at the end of the day, either the fed cuts or doesn't. they can't do both at the same time, right? i'm bet they'll be too cautious which means the buyers of visa and mastercard are right and the buyers of big banks? no then the consumer packaged goods place. we buy the former when the economy is hot and the latter when the economy is stalling in this case i'm getting both sides are wrong. i feel like the retail stocks have had much too much of a good thing here and need to be trimmed. a and the consumer packaged good stocks are way too spiff and need to be trimmed finally, there is old tech versus new tech. the old tech is supporting personal computers and cell phones new tech is the cloud. old tech is betting on getting a trade deal some time soon. you know how i feel about that new tech is taking off because these stocks have been hammered. ive trust the cloud. i'm suspicious of the cell phone sales, and frankly, i wasn't crazy about the numbers from broadcom this very evening
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one exception. this remarkable rally in apple is about the watch and the service revenue stream growing to the point where they the smooth out the sales of hand sets while having markets go up in earnings shares i all of the sudden say the same thing. repeat after me. own it, don't trade it even apple deserves a breather after a truly remarkable run trillion company bottom line, in all these cases it's possible that both sides could be right, that i'm too negative at the same time, though, while it can happen briefly like it did today, you know what in my experience, that never lasts for long, and it usually doesn't end happily ever after i need to go to casper in oregon casper >> caller: happy thursday, and thank you for all you do for those of us who learn so much from you. >> oh, casper, you're terrific boy, did my daughter love her stay in oregon she has moved on, but wow, what a beautiful place. >> caller: it is
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i want to let you know i watch your show every day. and if i can't be at home to watch it, i make it a point to record it. >> wow. >> caller: i do not miss you at all. >> i love it the show has been around a while. to hear that is the great verification it's going to continue to be around for a while. >> caller: one more thing before i get to my question i know you want me to hurry. i'm amazed at your energy. i'm a late nighter as well before i go to bed, you're on talking about how the stocks are moving that day and early at 5:00 and 6:00 in the morning and at the end of the day you're there telling us how we can get the "mad money" in our bank. >> you're terrific thank you. hey, by the way, speaker of the house nancy pelosi has the same hours. same hours okay let's go to work >> caller: all righty. in april, i am a chocoholic. i love everything hershey. so i've got hershey stock in april, added to my portfolio, and it's gone up and then down, and then went down down, and up up up, down, down, down. and this is down again
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and i can't figure out what's going on with hershey, and i read that there could be soon a shortage of cocoa. >> there, there is now here is the problem. >> should i cut the fat out of my portfolio >> the stock has moved up way too much, and i've got to tell you, as much as i believe in the company, there was a downgrade today by sanford bernstein that made a lot of sense. all the big money that can be made in this i think has been made where have you been all my life? and thank you for the kind words. nate in colorado, nate . >> caller: jimbo, what's going on >> i don't know. kind of typical day. doing a little fantasy how about you? >> same old, same old. hey, i heard your segment yesterday on the retail stocks, and i was shaking in my boots a little bit but i got a quiet for you on tailored brands, tlrd. >> ooh >> caller: they're not part of the ldo, or private equity space
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you warned about yesterday, but i want to hear your thoughts. >> you got to stay away. a lot of people were in for the dividend i think they are -- this is -- i don't want to call it a disaster let's just call it something you should not own dude, it was really remarkable how bad it was, frankly. and just, please, don't go near it, all right? all right. you can't have all these contradictions this is not like -- it's not like angles, okay. marty or the other guy one side has to be wrong this action can't last for too long on "mad money" tonight, cloud strike is down that a red flag or a prime time to strike? i've got the exclusive of w the ceo. then it's a pretty decent moment for stocks, but i'll tell you why before i would think twice before buying into the end of the day weakness. and retail pop doesn't seem to be dying down. so why everlane opening a beautiful store in brooklyn? i got a chance to check out the space, speak to the ceo and find out what sets them apart
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stay with cramer don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. the light beer you've been waiting for has arrived. lower carbs. lower calories. higher expectations. corona premier.
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the last few weeks have been wonderful for the average, but they've been devastating for many of the hottest high-flying stocks, especially the cloud-based software security place. the rotation out of this cohort has been brutal, and right at the epicenter of the carnage, crowdstrike. we've talked about this one before crowdstrike is a cyber security play with a twist. their platform is based on the cloud, meaning they can harness a lot of processing power to protect all of their clients' systems from on premises computer, cloud-based environments to smartphones. plus they use ai to identify
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vulnerabilities and future threats. that's exactly what this market loved a few months ago so when crowdstrike became public in june, the stock exploded higher out of the gate, the ipo priced at $34. the stock opened at 60 it surged to 101 at its peak since then it's been pummelled the stock down nearly 30 points over the last three weeks. then the company reported last thursday night, and if you were hoping a great earnings report would turn things around, well, crowdstrike delivered what i thought was an excellent quarter, a substantial top and bottom line, get this, 94% revenue growth management gave better than expected guidance. but nobody cared the next day the stock plunged more than 12%. this whole group has tud suddenly gone out of favor in the wall street fashion show and investors are betting the competition is heating up in the cyber security place even expensive stocks do get cheaper as they go down. so could this be a buying opportunity? let's take a closer look with george kurtz, the ceo and founder of crowdstrike mr. kurtz, welcome to "mad money. good to see you. >> good to be here.
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>> and congratulations on all your success in many different ventures so straighten things out for us. you did have maybe the fastest growing company quarter that i've seen this year. and you delivered everything people wanted. why don't you tell us why you have a proprietary situation, and how we shouldn't be fretting as much as people might be doing? >> sure. i think one of the things that is really important to understand about crowdstrike is we focus on stopping breaches. and this has been one of the real challenges in the security industry for many years. just about every breach you've ever read about had a firewall it had anti-virus and they were still breached so part of what we wanted to do at crowdstrike is redefine end point security, but do it from the cloud. if you think about cloud pioneers, a salesforce, a servicenow, a work day, there really was no security cloud. >> right. >> when we started the company in 2011, we thought we could be that fourth pillar of security, or cloud computing, cloud
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strike >> i have to believe amazon web security services, which we've had on the show is a partner of yours. you couldn't get a better marquee name >> absolutely. amazon and aws is a great partner for us as i talked about on the earnings call, we've got a lot of momentum with their marketplace, and we're protecting a lot of the world's leading workloads, whether they're in amazon, azure or even the google cloud >> i know that when i talk about what -- how proprietary you are, other people immediately said wait a second, they had a partnership with del vm just merged with carbon black that is going to spell the end of their relationship with dell. and i said that's not necessarily the case >> well, the thing about dell and secure works where we have our partnership, they've always had a customer choice model. they've always had the option to pick various technologies. and what we found is that customers want the leading cloud native technology, which is crowdstrike, which is why we're
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growing so fast, which is why we're a leader in the garden of magic quadrants. at the end of the day, for us it's business as usual we believe the customer wants to have the best security and crowdstrike it is. >> the other day escale, a really good company talked about how it's taking longer to close big deals. and that was int my people are considering zscale versus others is that a correct interpretation and have you found it harder to close large deals? >> we have not found it harder to close large deals in fact, we've closed big deals in a day, particularly when you see these ransomeware attacks. you see organizations, state governments being devastated people realize we have the technology to prevent against these breaches and devastating attacks pioneered with artificial intelligence. so when there is a time of crisis, actually our sale cycle shortens >> now when people hear the term end point, we don't have -- some people may not be as sophisticated. tell people what an end point is and why you protect it so much.
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>> sure. when we say end point, we think about workloads. but an end point can be a pc it could be a server it could be a cloud work load. it could be a mobile device. it could be an internet of things device. and when we say end points, we really want people to think about workloads and the proliferation of workloads as they go forward is going to be something we can take advantage of >> i don't think people can quite grasp the magnitude. annual recurring revenue increased 104% year-over-year. you've been around in silicon valley have. you ever had anything this your career that match that >> i have not seen this growth anywhere as you pointed out, the fastest growing ipo ever it's just been tremendous. and i think security is one of those areas. everyone has to have it. it is so topical to stop breaches which is part of our success. >> on your conference call, you talked about how there were three companies that recently -- i don't use the term give up, who sold themselves. what seemed interesting to me, that's basically saying you know
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what they can't compete with crowdstrike. that too hyperbolic view of it when i read this, i said hey, if you can't keep up, you sale. >> yeah. and that's what we've seen in the industry i think what we've seen in security parallels something like crm if you look at salesforce with lots of players like sebold ultimately sold because they couldn't make the transition from on prim and a perpetual license model to cloud native, sas delivered and recurring. do >> you get worried when a guy like nick comes on "squawk on the street" with palo alto and everyone has to understand we've made a serious of acquisitions going after companies like crowdstrike. >> one of the things we focus on is being the best end point security platform. we spent eight years doing this. we have a lot of dna doing this. and it's not as easy to transition and do something else, particularly from a salesforce perspective as well as a technology perspective. so it's a big industry, but i
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think our success and where we rank in gartner is one of the reasons why customers continue to buy us. >> you've got the best mousetrap. maybe that's what matters. you've been around a long time to know that may be exactly the case that is george kurtz, ceo and co-founder of crowdstrike. you can see why i like the stock. but i understand a lot of people are nervous about high multiple stocks versus sales how about thinking about the product itself "mad money" is back after the break. i can. the two words whispered at the start of every race. every new job. and attempt to parallel park.
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♪ i'm in a bit of a quandary here we're in a pretty decent moment for stocks this is one of the lightest periods for earnings, something i know in my bones because i set aside time every morning to go over the e conference calls. and today the only one i had to focus on is oracle, which rarely has any serious pin action for the rest of tech, that is. no major earnings reports means no major blowoffs. we don't have much news either from the macro front surely we had a slightly hotter than consumer price index figure this morning, but nothing that
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would scare jay powell away from cutting interest rates at the next meeting yes, he raised rates way too fast it with australia big mistake. but it's not like the economy is exhausted, and he is being labelled a bonehead by president trump which is the kind of thing you'd expect to hear from someone like me, but i'm not the president of the united states we had some movement on the trade talks, but you know where i stand on this issue. i doubt there will be anything meaningful here here one way or another soon i understand no truth to the story floated today of an interim trade deal let's put hit the way. things aren't as ugly as they have been. that's pretty sanguine there aren't a lot of land mines here in theory, i should feel pretty darn good about the stock market yet there is one thing i'm truly worried about, and it's a big thing. i'm talking about the standard & poor's short range, it gives you the best reading on whether the market is getting overbought and too much enthusiasm or oversold, meaning too much pessimism right now the oscillator says be careful, be very careful
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last night it stands at 8. that's not just overboard, it's way overboard. normally you take profits when the oscillator goes above 5. seeing it at 8 makes me very nervous. the last time we were this overbought is when jay powell changed course and suddenly we were no longer fighting the fed. it made perfect sense. the market wouldn't quit that's for a good reason historically, i haven't made much money to speak of, buying stocks when the oscillator is at 8. in the same way i haven't made much money selling stocks when it's at minus 8. that's how it works from the oversold at these levels, the buyers usually run out of ammo, just as the buyers get kpausd when it goes down too far too fast as i said in my club call this morning at thestreet.com, if you have some gains here you have my permission to ring the register. take something off the table and buy it back later, buy it lower. that's the responsible thing to do of course some you think i'm being plain old superstitious.
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does warren buffett look at an oscillator i think that's the wrong way to look at it buffet is a buy and hold guy when you're as rich as buffet, you can stay solvent for longer than the market can stay long. for the rest of us, it makes sense to try to get the best cost basis that's why i think this is a bad time to buy. when the market gets this overbought, we tend to get a violent pullback on any news i don't know where that bad news is going to come from. this is the toughest thing about following by discipline when it comes to this darn oscillator. i have no idea what may good wrong. i just know until we work off this overbought reading, there is a serious risk of being blindsided so if you're thinking about starting a position in a stock, attributing money for your ira, 401(k), i'm saying it makes sense, wait this one out a little the oscillator is rarely wrong, and you're likely to get a better entry point right now my discipline says don't buy, don't buy nick in arizona. nick >> caller: professor cramer.
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how are you? >> i am well, thank you. how about you, nick? >> caller: i'm good, good. and i absolutely love this show and wanted to thank you for teaching me how to teach myself more about investing. >> you're terrific that is my goal try to teach every night here. this is my classroom thank you. >> caller: thank you and i have a two partner on snappon tools, ticker symbol sna. >> okay. >> caller: i've owned snap-on for about a year love the company this they have their best in class reputation, great management, a good balance sheet and a healthy dividend that's been steadily growing. so first, do you think snappon is a good long-term investment at this level? and second, because of how diversified snappon is across so many industries, from auto to defense to tech, all over the world, including the prc, do you think this stock's worthy of being sort of a barometer stock like the transports? >> i think it used to be a great growth stock, and i think it's been very choppy of late and that's because i think that maybe some of their prices are too high
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there is a little more competition. but most importantly, there is a lot of short sellers every time they say something good, they interpret it negatively i would call it a tough own. i got to tell you, nick, one of the things i teach my people is a tough own is too difficult to own. mark in pennsylvania mark >> caller: hey, jim. i have a question. >> sure. >> caller: i've been saving a large sum of money to start my entry into trading but with the recession scare looming, the china trade war going on and the 2020 election ahead, should i start investing now with this sum of money wait until the new year is over, or wait until this all blows over >> no, no. look i don't think we're going to have' recession. i think you wait until the market goes down say 3, 4, 5%. we're way too overbought while it looks like it's a very good time to buy, i think this last five days have made a lot of people pretty darn complacent so listen up we're overbought right now so think twice before buying
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because any negative news could turn into a violent pullback. >> don't buy, don't buy. there is much more "mad money" ahead it offers valuable conscious with a conservative message. but can every buyer withstand a tough environment? i'm going to sit down with the ceo and its brand-new brooklyn outpost to find out. does your portfolio have what it takes to succeed in this market and tonight's edition of the "lightning round." so stay with cramer. tomorrow, kick off the trading day with ""squawk on the stree street". >> do you know your house, your apartment? >> excuse me >> your apartment. >> yes what about it? >> this is an apartment. and you think senator warren should tax more? i'm wearing an apartment >> it starts at 9:00 a.m. eastern halftime report weekdays noon eastern on cnbc
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everlane means business that connects customers to information they won't get anywhere else, with ethical
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sourcing, materials meant to last and their very own brand of radical transparency can everlane make the clothing industry a better place for customers? >> and in a world where so many retailers are closing physical stores all over the place while desperately trying to go digital, the last thing you see is exclusively web-based retailer opening brick and mortar stores, yet that's what we're seeing from everlane that built their whole platform around the idea of radical transsarnssy they show you all the details about the factories, where they make the clothes, who runs it, how much it costs, how sustain is it. with everlane, sustainability is profitability. does that sound familiar it's the "mad money" concept of impact for share it's a brilliant model it's become pretty popular, frankly not just with millennials. they're opening physical stores in handful of locations, the brooklyn store opened today. we were curious about the shift.
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earlier this week we met up with everlane's founder and ceo michael preysman to check out his company's new minimalist store. it is beautiful, and i love the concept. take a look. michael, i'm going to break the rules. talked to my wife lisa in brooklyn right before i came here he said jim, tell him it's not apparel. it's an ethos. is she right >> i'm so happy to hear that 100% she is right. it's a mission valley based brand. we are always trying to do the right thing, and the product serves the mission so every product we do, we try to less plastic, less water. we're trying to be thoughtful about the environment and the factories. >> that came up this morning they've gotten rid of the plastic. but more important, the packaging. you get something from amazon, and it's a landfill in its own right. you care about these things. >> were working on something really cool with packaging i can't share yet. >> oh, come on >>, no it's really good.
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i'll tell you later. our goal with packaging is zero impact that's what we want. we want the stuff to completely disappear where it came from use recycled materials and go back into the planet in the right way >> now what i want to say very quickly is we pivoted on our show because we believe what you just described is a great way also to make money >> yep. >> it's what the customer wants. the customer is right. >> it's the only way to make money in our view. and in the long-term because what's happened now is everybody's too short-term oriented, and eventually that's catching up to us, and it's caught up to us. they say we have 11 years to fix the planet before it's completely irreversible. 11 years that's short-term now. we need to really start changing now to affect the planet in the long-term and that's what we're trying to do in the long-term. >> when i go into this beautiful store in williamsburg, i read about things that matter i know that people are saying i never do brick and mortar. i know you lasted. you are pro.
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there is a sign that denim is dirty. i had no idea. >> what we're trying to do here as much as provide a new place for people to shop, because we went from digital first, customer first, we're also trying to educate and inspire how people on earth understand where their clothes come from and the impact that has on the environment. because if they have that knowledge, they can make an impact as well you see the story of denim if you pop in, you'll see a story of plastics in another corner we have educational tidbits all throughout high, in the meantime, the website seems to expand you're with radical transsarnssy >> those are the things. we're trying to provide fundamental basics in people's lives. in this world it's apparel and shoes. and that radical transparency is a way to educate so people know we're doing the right thing. where else can you see the cost of the things you buy? we tell you everything it's pretty hard to run a business that way, but we tell you anyway. >> you tell people how much you cost, your margins. >> people know we have to make money at the end of the day, and
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they feel good about supporting someone that's not ripping them off, because they trust us i think that's what we're missing in the world today is trust. >> so trust is also trying have the factories be the best. and one of the things you said to us last time is you went the china, because you felt like you could get the cost down. chinese factories turned out to be pretty good but at the same time we have a president now who doesn't want you to make things in china. what is the right thing to do? >> ow, you're walking us down murky territory here what the right thing to do, we say do the right thing for the customer and the planet. and for us, we are a global business, and we want to be global and so whether it's made in the u.s., whether it's made in china, whether it's made in vietnam, we're helping people all around the world china is a great place, and it's 1.5 billion people they have a huge impact on the future of our planet, and wove got to pay attention to what's going on there >> can there be a price that the president raises tariffs so it's not economic >> it's already happening. >> really? >> we started to manifesto things out of china into vietnam, cambodia, sri lanka we're already there.
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but it's hard. that strategy of raising 15% tariffs makes it difficult to run a business out of china foreall of our production. >> is that a statement for self or the fact of life? are you against tariffs? it's what it is and you have to feel what the customer wants >> are we against tariffs in general? generally speaking the way it's being done right now, we're against tariffs. i understand there there is global it's a system. but telling people they have to change in three months and expecting it not to impact the end customer, that's crazy it's going to hit everybody and holiday. >> i'm familiar with williamsburg i'm familiar with the rents. this is a high rent district one of the things we don't like about brick and mortar is having to spend a lot of money about rent and online we don't why brick and morter >> everybody loves to say you don't spend money online but with the way it costs to acquire a customer and ship it all, you end up -- what online company is only profitable basically, none of them. that's the dirty secret. with retail, when we move to customer first, we we get to figure out which channel is
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right and do the right thing for the customer and be profitable. >> how about a subscription service where for $50 a month i can have someone help me pick the right stuff? and how about something that makes it so that i can wear it for a little bit and bring it back you know all these different things that are doing. >> i love it for a wear it a little bit and bring it back it works really well for the high end we sell basics, a 15, $20 t-shirt. you're not going to wear it and send it back it's just different. i'm not a big fan of the boxes and all that for our business because we don't need people to have more things that they don't need, for us. >> when i go to department stores, i look around when i go with my younger daughters, landfill, landfill, ends up in landfill you actually think about this. you're trying to figure out what shouldn't be in a landfill. >> and we're trying to make sure that the customer is buying things they want and that will last you're not going to see us doing major fashion trends well try to stay in the basics, something we know you can wear for the next three to five years. ideally longer, but that's up to
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you. we know it's going last. get this, we just launched yesterday for men a 365 day guarantee. you buy something from one of our 12 items, anything happens to it in the first year, we replace it >> i saw that on the sight they're going to get clobbered on that. >> we did all the testing. 50 washes. we did stretch testing, color fastness, everything because things should last >> they should last. >> basics should last. >> how is your consumer doing? they're spending employment good? >> employment's generally good what we're seeing is that people are looking for brands that they can trust and adopt, because you feel like the world is crazy, and what impact can i make i can vote for somebody. i can vote and i can vote with my dollars so they're looking to vote with their dollars. so they're coming to brands like us that really are trying to make a difference. not perfect, by the way. but we're doing the best we can. >> the movie "the graduate" where the secret was plastics. >> great movie i remember that. and there was the time when it was the front of life magazine and plastics were the future. >> exactly
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where is plastic now >> plastic, we've got to turn the tap off. we've got so much of it. 8 billion tons and it's happening more and more the beautiful statement, you use it for a minute and it lasts forever. that's crazy, right? >> will my shoes last forever? my unisex shoes? >> no, you wear it a little bit. we're 95% virgin plastic we're trying to remove the plastic where we go. >> you're a computer scientist by background. >> it happened >> i mean, you love fashion, right? >> i like design and the impact design can have on people's lives. >> okay. so who is your icon? who do you think of? >> other than jim cramer >> i really appreciate that and certainly the right call stop now my wife is going to kill me. i showed you the bag that she had. now she is going to say my head is too big to get out this beautiful glass door there people you respect >> we looked at companies and i think are that are trying to change things. i do -- i think whole foods is a really good one.
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>> walter robb >> walter robb and john mackey that really came out of an idea they believed strong any in organic and pioneered the movement forward they pioneered a lot of standards around beauty because there weren't any. when they started selling stuff in their stores, they did quite a bit. we look up to those companies that have changed an industry from the ground up. >> i think you're doing fantastic stuff. it's really fantastic. >> thank you >> one of the few things my daughter and wife agree on you are real good at what you do. >> we'll do our best. >> congratulations on your success and congratulations on trying to change trying to change really does matter. >> we've got more. we draw a line in the sand, and we heard this from walter robb you draw a line in the sand and every year you try to do a bit better. >> we'll leave it at that. that's michael preysman, the founder and ceo of everlane. (soft music)
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it is time it is time for the "lightning round. >> buy, buy, buy. >> sell, sell, sell! [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round. let's start with robert in new
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york robert >> caller: hello, james. so i bought domu 18 bucks, and all the while hoping i could have bought more i find i was in that position. do i load up >> that quarter was fine, but the guidance was really awful. but there has been a lot of insider buying i would not sell it down here, but i know you're going to have to wait a full quarter before that puppy comes back. wow. let's go to michael in arizona michael? >> caller: cramer! >> yo! >> caller: hey, ten years ago, gm stuck it to the taxpayer and everyone else. four did not they took care of their shareholders to an extend, and their customers. they make an excellent product line. >> right >> caller: and don't forget arizona is ford country. >> that's right. i forgot that. okay here's the problem ford country just got debt downgraded, and i do feel the
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company better start, i just think that you're not going to make a lot of money because we need to see a couple of quarters where all they really have is winners, not these areas that keep showing up as losers. chris in california. chris? chris? >> caller: boo-yah, jim. >> boo-yah >> caller: calling about forescout technologies. >> we like it. that area has a little price competition these days, but i think it's a good company. let's go to chance in new york chance >> caller: hey, professor cramer >> yeah, chance. >> caller: i need your wisdom on a stock that i'm trying to put a position on. cvet, henry schein spin-off. >> i don't care for it i didn't like them as much as ibex labs. when they spun it off, i don't care for it, i don't care for it let's go to david in minnesota david? >> yes hey, jim, david in minnesota here love your show long time watcher, first time
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caller. >> okay! >> caller: my company is aero electronic, arw. >> two quarters ago the company wasn't good. the last quarter was very good which is in keeping that arrow is great supermarket up tech i want the own the stock i like it more than tech data. no offense i just like it more. ken in florida, ken? >> caller: yes, jim, thank you. >> of course. >> caller: i really appreciate your hard work to help people like me navigate the market. >> thank you >> my question is considering a pharmaceuticals recent positive results for dementia or related psychosis, do you have an opinion? >> you want to stay in it. the central nervous system, they are doing a lot. it is speculative. i think they're having pretty darn good luck, and they've got good signs that, ladies and gentlemen, is the conclusion of the "lightning round. [ buzzer ]
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>> the "lightning round" is responsponsored by td ameritrade i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
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op monday, i warn you that your growth stops are going to get annihilate because the market wide rotation we're seeing on the huge names so what do you do? should you just throw all your eggs in that one basket, watch it go down, say would have, should have, could have? a lot of people have done that
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that's when you call me and tell me your top five holdings, i tell you if your portfolio is diversified enough maybe you need to mix things up a little bit let's get started. first, a tweet on twitter who asks @jimcramer, just finished watching yesterday's show, am i diversified. salesforce, united health, nvidia, goldman sachs, disney. [ buzzer ] the answer is no you are not diversified. and here's why this salesforce trades with nvidia why? because this is that crazy etf driven market you have high multiple stocks all trading together here is the problem. if you have another eight stocks, i would say you're diversified. right now these are two of my absolutely favorite stocks so what i'm going say is you can ride them right now because nvidia is very hot, and i want you to own it. bu nvidia gets to say 200, which i think it's going to, you might have to take some change off. unitedhealthcare, disney, i love
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disney, plus ideas going to be good goldman sachs, major breakout here it's finance, it's entertainment, high multiple tech, high multiple tech and health care. make the change after nvidia runs higher. chad in indiana, chad? >> caller: hey, jim. a great big five-time caller boo-yah to you from south bend, indiana. >> five-time caller, welcome home what's up? >> caller: great i want to thank you for all the mad money you've helped my family make over the years my wife and i want to retire before age 50. your wisdom and guidance have put us on track for that >> wow. >> caller: thanks so much. >> hey you terrific. thank you. thank you. what's up? give them to me. >> caller: i like to see what clough think of this profile at&t, bp, cedar fair, ppl, and target >> well, here is a man that likes yield. and i'm so thrilled about this nice things about making money for people cedar fair we started a warm-up
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again. that's a real estate investment trust. ppl, i used to pay them a bill every single month, a great utility. at&t we did a nice piece the other day about how smart the guys at elliott are to change things up. target is the lowest yielder but the highest grower that's perfect bp is the highest oil company that can actually raise dividend continually. oil, retail, telco, entertainment, and utility that's perfect perfect! nisssim in new york. >> caller: hey, hope you're doing well. >> >> caller: >> caller: my top five positions are ge, altria, at&t, kraft heinz and amazon >> okay. varied portfolio altria, the tobacco company, they made that big investment in juul and i think juul should be done by prescription, but i'm alone in that they're. general electric, larry culp is
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making the change. at&t, elliott doing a terrific job. amazon one of our favorite stocks, maybe my favorite. kraft heinz, not my favorite dividend already slashed don't like it. ought to be in health care got to make that change. tobacco, industrial, telco, amazon is digital. internet and then kraft heinz goes i'd rather see you in -- we just did how about cvs. let's do cvs it had a great recommendation by deutsche bank. anthony in michigan, anthony >> caller: boo-yah, dr. cramer. >> thank you for that. >> caller: i like to know if i'm diversified. >> okay. >> caller: my stock picks are berkshire b, amazon, johnson & johnson, disney, and waste management what do you think? [ buzzer ] >> well, i think we got it going again here conglomerate, company involved with the waste disposal. fabulous entertainment company, pristine aaa balance sheet along
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with microsoft the only two that is under assault but overall ride it through. and then amazon. so we've got the digital retailer, we've got the great conglomerate, the trash disposal company, entertainment and drug. that is perfect too. i say congratulations to all contestants. pretty darn good stick with cramer. e verizon. because they need the massive capacity of 5g with ultra wideband, so more screaming, streaming, posting fans... can experience 5g all at once. this is happening in 13 stadiums all across the country. now if verizon 5g can do this for the nfl... imagine what it can do for you. (classical music playing throughout)
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talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant - [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu ♪ look, i'm a little uncomfortable with the market. it's been up for seven straight days the last part of the day was not good we're very overbought. so all i'm saying is let it come in a little. no need to be a hero i told club members today you know what? we are raising some cash here. wee just feel it's the right thing to do. i like to say there is always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer i will see you tomorrow.
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