Skip to main content

tv   Mad Money  CNBC  April 27, 2020 6:00pm-7:00pm EDT

6:00 pm
>> guy adami >> i learned that routine from you. you go in, you shop and then you buy it online. however, blackstone has traded ridiculously well. >> all right, thanks for watching "mad 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 call me 1-800-743-cnbc or tweet me at jim cramer.
6:01 pm
is it time to bet on stocks that thrive and rebound in the economy? that's what today's action said. dow gaining 359 points the s&p rising 1.47% >> that was easy >> ooh, and the nasdaq advancing 1.1% >> buy, buy, buy >> with many of the biggest losers of the year leading the way. [ moo i say not so fast. look, we all want to go back to normal even after we lift the lockdown, the new normal will be different from the old normal. i'm tired of the cliche, normal this, normal that. things have changed for starters the new normal is less investable i don't think it makes sense to fall into the gap of carnival cruise or attend live nation concert. the streets roared they're compressed springs given how far they've crashed, i think they've got more legs to them hey, if i were a hedge fund
6:02 pm
manager i'd do these stocks by trade-in state by state openings if i were an investor like you, i would let them run if i was stuck in them, then escape for the stocks we'll be talking about later in the show. you have to understand, lifting the quarantine doesn't mean the customers will come back even though we're flattening the curve in some parts of the country, that doesn't do anything to solve the sudden spike in joblessness i don't see any loan growth here there are millions of people who can't cover their rent or mortgage payments or cover their credit card debt these aren't the shoppers you need to justify more than four or five days worth of this kind of rally unless we get a vaccine. and as much as there are so many great minds working on that, you'll hear one later in the show i don't think we'll get one in 2020 look, i get that it finally feels like we're getting a handle on this pandemic. there is a sense that it's time to roll up our sleeves and get things done. aided about this $1200 stimulus checks i think it's optimistic. but let's say the optimists are right. suppose we get a real economic
6:03 pm
rebound courtesy of pent up demand and cabin fever are people buying the right stocks -- the right stocks for the new normal the best way to look at that is always what you want to do is you want to be empirical and you want to be based on facts. so why don't we do this. go over today's based gainers because some of them did not make sense let's start with one that's up 17%. i'm sure it can enjoy a short bounce as the economy opens up why not? you lost the best reason to own this thing, the bountiful dividend people can live without kohl's target, and amazon they have way too much inventory. they'll have to dump that. you want to buy something off of kohl's, you buy tjx. you buy burlington not so great for kohl's. the downfall of a department store chain starts off with the sampling of a competitor
6:04 pm
there's been a lot of sampling in the last couple months. pgh, you don't draw from this because the c.e.o. who happened to be on our tv earlier today. calvin klein and tommy hilfiger are great brands i don't know where the momentum is going to come from. pbh needs a real back to school. i can't recommend it i do think it's bottom 30 is a tough one for me called simon properties the mall owner is the best house in a very bad neighborhood i want to stress they have a great reputation, and c.e.o. david simon is a brilliant guy they've also got a long track record of paying the dividend which currently yields nearly 15%. is that a huge receipt flag? malls are in terrible shape. i just can't imagine how simon will get enough rent money in with so many of their tenants likely to go under on the other hand, though, simon's stock has already been cut in half and i don't think his business will be cut in half once america reopens
6:05 pm
the mall is bad, but not cut in the half bad at least simon's malls listen, if anybody can navigate a shopping mall reit in these turbulent waters, i'm going to give it to simon he's paid out more than $33 billion in dividends that's staggering. how the merger with talbot's worked he's sticking by it. make a bet on david simon the man, not simon the properties. but it's been a lifelong great bet. although this is a test of a lifetime fourth is one i'm truly worried about because of the financials, it's gap the company just refinanced at a much higher rate than i think the chain whose time has passed. i don't see what gap has to offeror what's special by the way, the prices aren't that low you're getting a chance to sell. i want you to take it. fifth is nordstrom two years ago did you know the nordstrom family tried to take this company private for $8.4 billion what did the board of directors
6:06 pm
special committee say? no, not high enough. well, i got news for they have now it's $3 billion. oops i think there's a place for nordstrom as the last man standing feel about department stores with niemann in trouble is it worth more than 20 bucs? i think it has a slew of horrible numbers ahead the chain wasn't doing dha well before the pandemic. it has rack business i can see the stock rallying at 20% at these levels. at 25, let's skiddle they have to raise debt problem. i think it will have a bit of a bounce no, huh-uh, later. 7th, whoa, l brands, forget it unless they can force the sale of victoria's secret after the virus hit. this one is too toxic for me i like bath and body works
6:07 pm
i say stay away. 8th is live nation well managed, but a stretch. i can't think of a better way to spread the virus than going to a concert. i think this one is like the cruise lines it figures cross mode, right live nation is betting on feckless reckless youth. usually that's a pretty good bet. parents don't know what's going on throw some seeds if live nation keeps bouncing, i'd be a seller. there's only so much reckless feckless behavior you can tolerate mgm resorts, if you want to buy a casino, the one you should be thinking about is wynn they have a plan to open they brought in johns hopkins to figure it out. i don't want to own any casino stock because they need crowds crowds are how you get covid so be careful. i wouldn't go to a casino right now. i certainly wouldn't own the stock. i like national gaming it's a disciple of some of the greatest investors of our time and i'm going to think of them
6:08 pm
if you give me the whole show and tomorrow maybe 10th is hanes brands this is a good company, good digital business free cash flow i'd show you exactly how good i think they are, but i think i'll spare you that bit of information. i would be -- i would bet that they will be a -- of all these, i think this one is a winner i'd buy it but at best, these are winners for trading, people. what's worth buying as a long-term investment here? do you see home depot here do you see lowe's? that's better than all these i think covid is going to be with us for sometime i expect flare ups and disappointments and backfires. i don't know if we're in the first inning that seems wrong to me, but we aren't in the middle innings and we still don't have enough testing or masking you're sick of it all right. the bottom line, what's happened in this country since the lockdown what drives our belief things are going back to normal some masks, testing, physical
6:09 pm
distancing and a lot of hope now i got nothing against hope, but it ain't no business investment strategy. so until we get a vaccine, you need to approach this market as though the world has changed what's worth investing under the new normal besides a couple big box hardware stores? well, guess what, i got a list of them and i'm going to game them to you after the break. let's go to bob in florida bob. >> caller: hey, booyah, jim. it's bob from florida, formerly from new jersey. >> yeah, we talked to each other. this is not -- this is like third time long time what's up, bob >> caller: yeah, i think so. i want to thank you for all you do for us amateurs >> thank you >> caller: like to talk to you about a company called vi about, a systems, cloud software solution >> yes, peter casser, fantastic. >> caller: i've been looking at it in march. i saw it had a phenomenal growth since early 2018 a drop in mid february to the middle of march it started moving up, i thought i might buy some
6:10 pm
i was waiting for a pull back to get a better price it kept going up seemingly every day. it went from $120 to $190 just since the iedes of march >> remember it hit its all-time high today we love stocks with relative strength like that i don't know you asked if i missed the boat i'm going to say there's a better time to buy it. i'm not going to say you missed the boat because there's going to be another opportunity. man, this thing is -- you're not early. all right. the world has changed. i want you to approach the market differently, all right. on "mad money" tonight, nvidia closes the position. there's a winner for you how does that combination benefit today's work from home world? i got the c.e.o. then i'm introducing the covid-19 stock index and focusing on the companies that can work in the current environment, and they're not doing that well today. that's perfect after oil's break down last
6:11 pm
week, wonder what's happening after the commodity? i'm negative should i stay that way i think you should stay with cramer >> announcer: 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. (soft music)
6:12 pm
- [female vo] restaurants are facing a crisis. and they're counting on your takeout and delivery orders to make it through. grubhub. together we can help save the restaurants we love.
6:13 pm
daddy, i found you! good job. now i'm gonna stay here and you go hide. watch your favorites from anywhere in the house with the xfinity stream app. free with your xfinity service. now any room can be a tv room. stream live tv, on demand shows and movies, even your dvr recordings. download the xfinity stream app today to stream the entertainment you love. ♪ ♪ you know the big believer in nvidia, maybe the biggest.
6:14 pm
i love them for their graphics chips and enable, what's currently the hottest hobby in america? gaming i love them for their data center exposure, cloud is on fire they're the best it is it's why i named my dog after them nvidia announced it was buying mellanox, with major data center exposure it's poised to give the company a nice earnings boost. but unfortunately the deal became a casualty of the trade wars chinese regulators held it up for no reason excepti felt retaliation. finally earlier this month they got chinese approval just like jensen said they would earlier nvidia closed on the purchase of mellanox the stock is up nooeearly 65% fm its lows last month. let's check in with the visionary founder and c.e.o. of nvidia to get a better sense of where the company is headed post mellanox welcome back to "mad money." >> jim, great talking to you
6:15 pm
i hope you're well >> oh, jensen, same, same. i know that you've taken care of all your people and it sounds like so far so good. >> yes everybody is safely at home and we're taking care of our people. >> well, that's you. that's you all over. let's talk about this deal because you told us that this would be passed. i questioned it because i was so worried. you said, do not worry, jim. it has given you from what i can tell, it will optimize your data center scale work loads. you were very excited about the accelerated computing platform with the accelerated computing platform in english for our viewers, you must tell them why this was such a great deal >> yeah, this is a home run deal man, i've been dreaming about this the most importantcomputer today is the data center it is the epicenter of the computer industry. and the most important applications that run in the data center today are a.i. application and big data
6:16 pm
analytics application. doing computation on artificial intelligence neo networks and moving huge amounts of data around is what drives the data center architectures today we're combining in the leaders of a.i. computing and high-speed networking and data processing into one company and so this is, this is really quite extraordinary. we've gained end to end expertise in the data center from computing to networking to storage to security processing our footprint is much larger than before. we have much greater scale, and so with that hopefully we could, you know, accelerate the innovation and create amazing things for data centers going forward. >> it does sound like beyond just what data centers can do just as kind of a commonality. you are very much involved with trying to solve covid-19 and defeating it with just plain sheer brilliance and technology.
6:17 pm
>> yeah, if you look at covid-19, this is something that we had to respond quickly. and accelerated computing helped us do that we were involved in every aspect of fighting covid-19 from mitigation to containment to testing and tracking in mitigation, super computing centers were using it to filter from hundreds of thousands of different molecule options to figure out which one of them had high likelihood of being effective. we were using our super computers to do molecular dynamic simulation to understand the mechanics of the virus our genomics computing platform was used to sequence the virus in the beginning, and so for mitigation, understanding the virus better, using a high-performance computing platform, and then in containment, in containment we have robots, nvidia-powered robots roaming around the
6:18 pm
hallways, disinfecting with ultraviolet or disinfecting with spray. our a.i. algorithms were used to detect the lung to have early detection as possible of infection. and then now, people are setting up all kinds of a.i. infrared cameras to detect elevated body temperature, you know, as soon as possible so that we can identify the ones, the people that are infected and keep them quarantined. oh, man, just across the board there's thousands of projects ongoing on covid-19. as you know, covid-19 is not just covid-19. this is everything that we're going to learn about fighting covid-19, from mitigation, containment, to living with it long term, you know, all of this is methodologies and infrastructures and computing technique and algorithms that
6:19 pm
are going to help us in the future ous ours are going to go away and we want to respond in the future. >> sounds like you are very much involved in the mission of beating back covid >> we have a lot of researchers and scientists all over the company. one of the things that's great about our company is just the large collection of great minds who wants to use computers to solve the world's greatest challenges just one of them it's not going to go away, so the work we do today is going to help us in the future. >> now, i know that a lot of companies are pulling back there's been a lot of layoffs. the president right now is talking about retail, how many layoffs they had that was not your reaction to this situation you gave raises. >> well, you know, attracting, attracting the best people, taking care of them, creating the environment for them to do their life's work is our number one priority so during these challenging times -- you know, i listened to
6:20 pm
your program and a number of people who are laid off and the number of people who are affected is just extraordinary it's really sad how many people were affected. those people who were affected, many of them are the spouses and families of our employees. and so the things that we can do is accelerate -- put tens of millions of dollars more in their pockets and help them get through this time. taking care of them is our number one priority. >> now, you have one area that i know for intel was troublesome, which was they did not do that well with mobile eye you've shown us your autonomous vehicle work and it's second to none but will that be held up because autos are obviously such a troubled area? >> yeah, you look across our different businesses, our core businesses are gaming, graphics, data center and robotics and autonomous vehicles is part of our robotics business that's going to be affected because the number of cars that are sold is reduced.
6:21 pm
the industry is really in a challenged way but that won't slow us down, you know i believe in the future of autonomous vehicle everything that moves, everything that moves in the future will have autonomous capability one way or the other. so this is an investment for the future and it's going to payof hugely some day. and so we've got our eyes set on this thing we're not going to give up on it we're going to keep investing in it it's getting better all the time we'll show you the next update >> you know i respect you more than pretty much everybody i've had the pleasure to meet do you have some words for us as a country about where we are with covid and whether you yourself feel that the world has changed forever, or that one day we will look back and say, we beat this? >> well, one of the things that's a huge positive is the recognition that science is important.
6:22 pm
that we have to make sure we invest in science. look, viruses, viruses are going to come back again our ability to detect them early, to mitigate it as quickly as possible, find a vaccine much faster than we can today and if anything were to happen to create a condition by which we can contain it, and then to be able to live with the fact that there are viruses that are going to be coming all the time. and so we have to invest in science. we have to understand infectious diseases we have to develop computing systems and infrastructures and expertise all over the world to make sure that we can mitigate and contain it when it comes so all of this is just elevating the consciousness of science, the importance of science. and it is so great, it is so great to see all of the health care workers and the people who are on the front line, the
6:23 pm
people who deliver things to our house and people who are running the restaurants and keeping the doors open and keeping us fed, you know, all of those people who are putting themselves in harms way knowingly every single day, for them to be acknowledged as heroes, these are good things these are good things. the scientists are celebrated, doctors are celebrated, nurses are celebrated, delivery drivers are celebrated restaurant owners are celebrated it warms my heart and i think it's going to be transformative to society and i think we're going to be better off for it. >> well, thank you, jensen congratulations on the mellanox deal on all that you've done. on the pivot that you're trying to do to solve this, which i feel fantastic about knowing that you're involved jensen huang, president and c.e.o. of invanvidia thank you for coming on "mad money. >> thank you, stay safe. >> "mad money" is back after the break.
6:24 pm
6:25 pm
6:26 pm
♪ ♪ yesterday during a virtual speaking event that i did for the 92nd street y in manhattan, i got a question is this the end of index investing? my answer was yes. while index funds will never go away, we look at the conventional wisdom index funds are the smartest way to invest we've been told savvy investors should put money in an index fund in the s&p 500. that was solid advice. i preach it. but that's not the world we live in any more. the pandemic has rendered vast swaths of the market uninvestable it's very obvious what's not working right now beyond a trade. so when you buy an index fund that mirrors the s&p 500, you're getting a whole lot of bad with the good that's always been the case.
6:27 pm
it's just right now the bad is incredibly bad why would you want to put your money in an index with airlines, oil producers, have seats taken out so they can pass muster? when you zoom out beyond the s&p and look at all the major averages, they each tell a vastly different story the s&p is in the middle of the pack down 12% at the end of the year last week dow industrials 16%. on the other hand, the nasdaq composite was only down 3.8% get this the nasdaq 100, the 100 largest non-financial stocks in the nas, think tech, think biotech, actually up .6%. when you think about it these disparities make a ton of sense. nasdaq 100 has exposure to covid-19 and the dow and s&p in a positive way it's very tech heavy only big companies who know small cap exposure like the hideous russell 2000, it's a time to be a smart company i know index investing will never go away. i don't want it to go away
6:28 pm
but what if we could make it smarter? what if we could improve upon the needs 100 with a group of stocks tailormade for this environment? that was a rhetorical question this weekend we sat down and we did it so tonight i'm calling it and unveiling it, the mad covid-19 index. you should be mad at covid, right? mad covid-19 index stocks that can work in this tricky environment let me give you methodology then i'll give you components every stock had to be a year to date out performer in the s&p 500. that didn't knockout a lot of stocks we started with favorites, companies whose stories we know are working well here. winning like cloud software and picked our favorites in each group. higher yielding defensive group a track nfltive in an uncertain world. it ended up with 17 different sectors, although i put that in air quotes because they're not
6:29 pm
all the normal sectors they're used to. that's okay. normal has to be throne out. first we have beverages, specifically the beverage companies that benefit as people stockpile. pepsi co. and beer parent of sam adams and hard seltzer. pepsi co. reports tomorrow, i bet it's good. second, cloud software so many cloud plays become vital to the work from home economy. we narrowed it down to 13. wasn't easy. salesforce, adobe from the cloud kings. zoom video, ring central and slack for communications, crowd strike, cloud fair, cooper software, dock you sign, ever bridge and viva systems as catchall for everything else thriving here. these are the companies that you need if you're going to work from home. and almost every banker is working from home. lawyers, too, accountants, too third, consumer package goods. they slow down when the economy
6:30 pm
is good. cl clorox, colgate, procter & gamble it's the only way to shop safely we thought chewy, e-bay, shopify. financials that work not the banks way too risky in a recession. that's why we like market access and trade web. couple disruptive trading platforms. i like financial technology stocks i like square and pay pal which never quits. six is video games publishers are upfor the year. active vision blizzards. home entertainment, and its enablers if you're like me it's the only thing keeping you sane or relatively sane. netflix, roku, snap, spotify, akamai technologies and the trade desk now we get to a biggie, health
6:31 pm
care that accounts for the mad covid-19 index the recession plays, and i think the pandemic only makes them more valuable. i like abbott labs that will be better when it closes if botox is no longer forbid enfrom being used as part of some nonessential thing like santeen gilead reports thursday. regeneron, good news from meg this evening -- this morning, but really about a lung cancer drug sanofi danaher. eli lili dexcom whoa dexcom is good. glaxo. that's going to be a major focus for me coming up perigo, pfizer reports soon with another vaccine. resmed the only group larger than
6:32 pm
health care, megacap technology, don't think alphabet, amazon, microsoft. apple might sound counter intuitive, but they have a huge chinese business i'm betting subscription gets a major boost with the quarantine. office at home, and logitich which are both vital for at homework they're still working. campbell's, conagra, hor mel, j.m. smucker the high quality real estate investment trust data center retweet 5g, american tower, crown castle, digital realty 13, the remaining restaurant survivors with top notch delivery take-out services, chipotle, wing stop, mcdonald's
6:33 pm
and wendy's didn't work for us 14 retail survivors. a handful of chains left standing when all this is over many small ones going under. costco, walmart, dollar general and home depot beating the s&p home depot does best 15 semis at work 5g, there you go with amd, nvidia utilities, wireless providers, i like letter d, dominion energy a growth utility of course, verizon finally there is one group, one more group that we're calling the exotics maybe because i've been watching too much of that tiger king this is a catch-all category that includes a bunch of special situation names. you have covid vaccine plays a novinger i can't,
6:34 pm
inovia. a grab bag barrett gold because gold tends to retain its economy when the economy is crushed sego for networking. face masks, we're throwing in peloton because you can't get to the gym and they're backed up a couple months if you want one. covid-19 isn't exactly diversified. weighted by market cap four gigantic tech stocks. that makes it like the regular indices. s&p 500 capped 5% of its value focus on what's working right now. overwhelmingly tech, health care and consumer staples until we get a vaccine, well, here you go. when you back test these 100 stocks, the index will be up nearly 10% for the year. as of the end of last week, trounced the major averages. bottom line, you want to remember this list the next time the market rolls over. the wloel point of this exercise is to demonstrate stock picking makes more sense than
6:35 pm
traditional index investing now. there are so many obvious winners and obvious losers please don't make life difficult for yourselves by owning the losers i just gave you the winners. much more "mad money" ahead. where are the commodities headed next going off the charts going to surprise you how should you approach the companies reporting this week? i'll explain why amazon could be your guide and all your calls rapid fire in tonight's edition of the lightning round. so stay with cramer. feed a healthy lifestyle, with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. the best combination to help you stay fit. pure protein. there are times when our need to connect really matters. to keep customers and employees in the know.
6:36 pm
to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us.
6:37 pm
♪ ♪ are we about to witness another misleading oil meltdown? last week the may futures contract plummeted to below
6:38 pm
zero remember it fell to neglect if i have $37 before rebounding back to positive territory? it plunged to $12. these things are a mess. i've been telling you to stay away for months even before the virus was bearish. the may and june futures contracts can be very misleading notice how the oil stocks have been going up. so i want to put it in perspective. that's why we're going off the charts with carley garner. the co-founder of carley trading and commodity trading. a resident commodity expert. you know why she's different. she's contrary she knew it was going down now, get this. she's bullish on oil here. why? let's take a look. first, this is the daily chart showing the west texas intermediate crude futures for may delivery okay, it's in red. and the west texas crude futures for august delivery, that's in blue even when the may contract went sub-zero last week, the august
6:39 pm
contract held up pretty well it's still well over 20 bucks. this is the new pattern. while the may and june prices have collapsed, the back month contracts are in better shape. may expired last week and garner points out the one that plummeted 25% today is experiencing volatility. etfs are trying to rebalance portfolios and side step insolvency their rookies -- wait. jimmy chill said they're a bunch of clowns. the key is semi simple right now we don't have enough storage. the oil companies waited too long to cut production so the crude marked for may and june is getting hammered the market seems confident the prices will be worked out by all this as you go further out, the prices get higher. we're talking in the 30s as we get deeper into 2020 deliveries. that's why garner was adamant the oil crash was blown way out of proportion. in truth, get this this was ant talked about at
6:40 pm
all. there were only 10,000 futures contracts that traded in all of negative territory 2003 heard we heard it was hundreds of thousands. in an active month you might see 700,000, a million contracts trade-in each session. where does oil go from here? we know the current environment is horrible for the industry with tons of people working from home, thinking airlines, cruise lines, the lockdown was going to be brutal for oil. it was absolutely due for a correction as garner points out the cure for low commodity prices is low commodity prices when the price of oil gets crushed, the ind industry slashes production which is finally what's happening now you take out enough supply, prices stabilize once the economy starts bouncing back, it goes higher we need to be careful about reopening the economy before we're ready. the coronavirus is temporary sooner or later we're going to get the situation under control and business will bounce back.
6:41 pm
it's whether it's sooner or whether it's later we won't be sheltering in place forever. can't let that happen. when economy rebounds oil rebounds with it i know the industry took too long to adjust you know what, it is finally happening. look at this this is where we were getting really bearish in oil. this is the recount. baker hughes is a company that keeps track of recount for years. in most recent numbers from friday, 60 oil rigs were taken off line that means only 370 riggs in operation. 60 in one week garner points out the shell oil industry hasn't cutback since '16. it turned out to be a multi year low. meanwhile, garner thinks last week's meltdown cleared most of the weekend as speculators from the oil market a lot of inexperienced traders bottom fishing for prematurity see the chinese doing that that will probably collapse in
6:42 pm
the future foolish speculators have been wiped out. that's perfect for a rally let me show you where it leaves us this is a look at the monthly west texas intermediate crude oil futures chart because these contracts expire every month this chart is a compilation of different contracts. that makes it tricky for technicians to gauge what's going on in oil. garner is a pro, so let's rely on her remember, the may and june contracts are misleading so we've got may and june. these are misleading, which is why she thinks you need to ignore the last tick down here the july contract bottom 17.50 last week, august contract near 20 they both held the trend line even when the front futures went negative what else? thanks to last week's plunge, relative index, an important indicator, went below 30 that's astonishing, first time it happened on the basis of 2016 that's when we had the big bounce only second time it's happened at all since the '90s. this marked is just totally
6:43 pm
oversold remember, i'm a bear, but i see an oversold market and i like it while this downturn felt different because of last week's messy sub-action, garner is no stranger to 80% declines when you ignore the handful of may contracts, the same thing happened during the financial crisis and again from 2014 to 2016 when the world was flooded with new shale oil and both of these cases oil prices eventually rebounded substantially from the oil unless we magically embrace renewable energy, which we're not, she thinks it will problem fwli get back to $40 a barrel sooner than most people think. shocking take a gander at the early chart of the august contract i know this is convoluted, but bear with me she thinks that gives you the best read on oil right now i totally agree with that. by the time the august contract expires in late july, garner expects the production kugts from opec and oil shale
6:44 pm
producers will work through the system and we'll have a build out of more storage. that means you should sell north american tanker as we get closer to this. and it's possible the global economy will be picking up steam causing a rebound in demand. that wouldn't shock me garner expects the wti contract will stay above the floor support of $20 a barrel. as long as the floor holds, we go a little beneath it, she's betting it goes to 30, with resistance at 36 and 39 and 42 if the august contract gets to 42, we'll fill in the gap left from march 9 that's when the saudis and russians started ridiculous price war. garner thinks the rebound to the mid to high 30s makes sense. two months ago that would have seemed like a low level. on the other hand, if the $20 floor breaks down, she thinks falling to 15 bucks could happen she doubts that's going to really -- she doubts the bearish case by the way, if you believe this, if you believe this, this is the
6:45 pm
reason to buy pioneer, pxd, to buy parsley, a couple small dollar amount stock. parsley, it's a reason to buy eog, a reason to buy chevron and a reason to buy the other fang, wrong fang diamond back energy charts interpreted by carley garner suggest oil could rebound substantially over the sunoler while that might sound like wild eyed optimism she makes a good point. i recommend avoiding many of the stocks i gave you the only ones i'd buy. situation is still murky i wouldn't be surprised if garner is right. if that case it's parsley, pioneer, it's eog, it's fang, and it's chevron "mad money" is back after the break. ♪ say hi.
6:46 pm
♪ a pandemic has the possibility of bringing us together in ways none of us would have been able to expect. ♪ i'm so small said the mole. yes said the boy, but you make a huge difference. ♪ ♪ ♪
6:47 pm
6:48 pm
it is time it's time for the lightning round. >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> then the lightning round is over are you ready, ski daddy start with mark in new york, mark >> caller: i'm trying to get my head around archer daniels mid land >> if i wanted a yield i'd go for verizon. thomas in new jersey thomas >> caller: booyah, jim, how are you? >> all right, how are you? >> caller: good. i enjoyed your interview with the c.e.o. of nordic american tanker i was wondering if you could share some thoughts on scorpio tanker -- >> scorpio is cheaper.
6:49 pm
if you believe you have a couple weeks before this trade is over, scorpio is fine. let's go to don in south carolina don. >> caller: how about a big game booyah from cobble -- lady ranked golf team >> i couldn't think about more to talk about it what's going on? >> caller: i really want to know about biochris pharmaceuticals >> local outfit for you. that's always a bridesmaid, never a bride. i just don't see any momentum. there are so many companies. i'd still rather go with moderna frankly, but that's going to be your way [ buzzer ] >> amir in virginia. amir >> caller: hey, jim, representing from the nation's capital, first time caller and big fan. appreciate you taking the time i have a two-part question related to slack >> all right >> caller: they seem to be increasing and they don't have a lot of debt. part of me is curious if they can compete with the likes of microsoft going forward.
6:50 pm
>> it's very hard. it's very hard i like it because i think they can. i think they offer a good product and i'd be a buyer of the stock. let's go to david in illinois david. >> caller: a big booyah from the land of lincoln. >> totally >> caller: jim, i have two questions for you, if i may. >> okay. >> caller: one, i would like youropinion on inmode -- i -- >> radio frequency technology is not my style i'd just say listen, you have ew, medtronic, abbott, how many do you need? we don't have to have 100 different medical device companies. we go for the three best and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position.
6:51 pm
you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ it started when fitbit showed her... how to burn more in less time... which led to less stress... more changes... and the confidence to follow her dreams. introducing active zone minutes on charge 4.
6:52 pm
and the confidence this virus is testing all of us. and it's testing the people on the front lines of this fight most of all. so abbott is getting new tests into their hands, delivering the critical results they need. and until this fight is over, we...will...never...quit. because they never quit.
6:53 pm
featuring the emmy award-winning voice remote. all the apps you love, including netflix, prime video, youtube and hulu. and the most 4k content. the best entertainment experience all in one place. when a high-quality stock rallies hard ahead of the quarter, i pray for something, anything to come along and temper expectations. amazon reports this thursday the stock is a bit on fire you know what, i get nervous then this morning my prayers were answered by "the wall street journal" which pittsburgh lish li published a hit piece, pandemic
6:54 pm
isn't all primetime. i said, hallelujah >> hallelujah. >> they de-risk the stock. amazon by its own admission was caught flat-footed by the pandemic this is a head scratcher everyone was caught by the pandemic except south korea and taiwan amazon had to take measures for nonessential goods that curtailed them believe me, we noticed third, they ran out of toilet paper and hand sanitizer again well, who else so did everybody .4, some businesses have gone to competitors because of these issues yeah, sure, but competitors weren't so hot and tended to be more expensive unless you went to costco which i own for the charitable trust my sources indicate amazon web services have been taking cloud market share during this period because it's more reliable than its competitors and reliability is what they really want now finally fifth, the article gives you a sense of the struggles and
6:55 pm
frustrations of amazon's warehouse workers. alluding to possible unionization effort. the market takes a dim view of organized labor. put it all together, though, i think this terrific negative article which helped knock the stock down $34 has done amazon shareholders a real service. it basically neutered all the potential objections and concerns the so-called hair on the quarter that comes when you try to hire 175,000 people at once to meet demand. when amazon reports on thursday, we've already been warned again about all these issues all the issues that might detract facilities what i expect will be an otherwise good quarter. i think it's a buying opportunity. when you read and hear about all these gripes, you have known they have already been aired by "the wall street journal." what happens when a high-flying stock doesn't get vaccinated like this? you end up with netflix where they report excellent numbers and the stock gets saved anyway. morgan stanley put out a terrific note. arguing apple has a great set up
6:56 pm
here the near term sales worries are already baked into the stock, she says, meet meaning expectations have been set apple might rally after reports thursday night today we find out the next iphone iteration will be late. that delays bad news i don't know if that's baked in, although i still think the tragedy with apple is to own it, not trade it you have to brace yourself for some painful cuts. the most vulnerable might be my favorite, microsoft which reports on wednesday i don't know a soul that expects less than perfection from these guys after the push, target boost from 175 to 200, stock is priced for perfection if you don't own it already, i think it's too late to buy this ahead of the quarter be ready to buy more if it gets hits thursday with a tiny bit of hair on the quarter. finally remember, tomorrow is another day. like the tomorrow after ibm reported, when the stock tumbled to 116 after seemingly bad quarter, i was aghast, as nobody expected perfection from ibm
6:57 pm
especially the software slag the results were good enough the stock should have been able to rally. sure enough it did it's up more than ten from its low. try not to take the first move post earnings too seriously. the market does often get it wrong, and that initial action is more about the expectations gained than the fundamentals if you've done the work, if you know the craft, you note it's wrong. that's why i'm so grateful for the piece in the wall street journal slamming amazon. maybe now the stock has been immunized against those negatives and what i think will obviously be a very strong quarter. stick with cramer. aren't cancel. hope isn't quarantined. first words aren't delayed. caring isn't postponed. courage isn't on hold. and love hasn't stopped. u.s. bank thanks you for keeping all of our spirits strong. we've donated millions to those in need
6:58 pm
and are always here for our customers and employees. confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org.
6:59 pm
♪ ♪ remember, i'm pro tech and a lot of people felt that tech would disappoint. tonight nxp semi which i told you in my game plan last week would be the one to watch, had a terrific quarter we're seeing good numbers everywhere ffiv, a traffic coordinator for the web. that was great i don't know if you heard what jensen said about nvidia i think they're doing quite well remember tech and health care remain areas that are investable the other stuff much more trading oriented, particularly the retailers where i expect other than a few you just trade. i always like to say there's a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer see you tomorrow "markets in turmoil" hosted by my friend scott wapner starts now.
7:00 pm
country grows. >> news data and developments that could make a difference "markets in turmoil" coming up on cnbc. good evening, i'm scott wapner on day 120 of the coronavirus crisis, more states making plans to reopen this evening as the u.s. death toll about to hit 56,000. >> the testing is going really well >> tests for the virus and antibodies >> if it's done carefully, i think it's fine. >> a new initiative is under way to help americans get back to work soon. >> stocks are higher across the board. >> stocks rally on the optimism. also -- >> if we're going to welcome students back we have to get starte

41 Views

info Stream Only

Uploaded by TV Archive on