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tv   Mad Money  CNBC  May 26, 2020 6:00pm-7:00pm EDT

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these earnings and i think you sell the xrt and sadly there will not be a back to school and it will be one of the worst christmases in decades >> guy >> i speak portuguese, mel, but i'll spare you up in portuguese is twitter, tr thanks fo 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 you, but to educate, teach context. call me 1-800-743-cnbc tweet me @jimcramer. what would this market look like if we had a coronavirus vaccine and everything went back to normal? well, it would look a lot like
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today. with the dow jones average skyrocketing 530 points, s&p 1.32, nasdaq 1.72, one point before more saber rattling with china. all sorts of beaten down stocks, though, were higher. while the covid-19 winners, well, they got slammed there's just one tiny problem with this action we don't actually have a vaccine. does that mean the stock market is getting ahead of itself let's unpack the issue first this rally is based not just on hopes of a vaccine but a firm belief that the whole virus problem isn't nearly as dire as we thought a lot of people feel it has been blown out of proportion by the media, and the president's right, the people feel the president's right when he says we should open up everything betting on a vaccine makes sense. since the beginning of the pandemic they warned us a vaccine would take a long time the fastest was the mumps which took four years.
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every day we're bombarded about another attempt to end this nightmare. today we heard merck is working on a magic technology when they were working on the ebola vaccine. merck has a good reputation. the fact they're getting involved is a positive they started human positives novax has seen its stock soar, even though it's never been able to deliver a vaccine you have novavax, moderna, regeneron, oxford university, and scores of others they're using great technology we heard from jensen wong thursday night from nvidia you have a ton of resources poured into beating this thing, plus they had better technology than a decade ago. think about this they can sequence the whole coronavirus genome they can use artificial intelligence to model potential vaccines virtually in order to
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eliminate dead ends. we didn't have any of that stuff when it took four years to develop the mumps vaccine in the '60s the comparison is not relevant time frame when you have a conservative outlook like j & j, i believe things are rolling along nicely. if we can beat this thing next year, it's huge. we have to get through the next six months without it and i don't know about that, which brings us to the other piece of the puzzle reopening many americans simply aren't willing to wait any more the social distancing thing they're done with that outside of the new york metro area we're not seeing the huge outbreaks that could shutdown local health care systems so people have run out of patience for quarantine, for the mask now that states are reopening they're hitting the beaches and bars because it seems overblown. i see where they're coming from, until we hit the tipping point with millions of americans wanting to go back to normal, that is an incredible rally. it was unthinkable when the dow jones crashed to the 18,000
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level. dow is now 25,000, less than 5,000 points away from the all-time high. s&p spent most of the day above 3,000 the first time since early march. they put humpty-dumpty back together again the drug stocks, the covid workers and winners -- >> sell, sell, sell. >> i don't agree with that, though then they move into the -- they take all their money i mean, these were hedge funds >> buy, buy, buy >> they go to the covid losers that can rack up gains disney, my trust owns that or the cruise lines. the cruise industry is obliterated by the pandemic. but those stocks rallied 12 to 15% today because they're big winners if the world gets back to normal. i told you i like that norwegian cruise same with cyclical stocks. lowe's, caterpillar, chevron
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all the banks. the banks have been sticking up the drum for a long time fewer bad loans. every cyclical had its day in the sun today. steals, real estate, shopping malls, freight forwarders, fedex. and home builders had incredibly strong new home sales for april. really shocked people. down 10%, they were up slightly. big part of the rally. it was screaming higher. move a ton of merchandise in duty-free stores seemed dead on arrival not that long ago, now trying to pack them in. what's happened is extraordinary. these companies were right smack in the middle of the covid blast zone but they were able to access the capital markets they needed to thanks to the efforts of fed chief j. powell the moment they said they would buy distressed corporate bonds by any means necessary, powell gave business the confidence to tough it out we've had no major public failures except hertz. the new narrative is simple, the
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recession is ending. we're looking at a fabulous v-shape recovery which begs the question, is it true i think the answer is more complicated, more nuanced. we don't have a giant outbreak in the straits aggressively reopening v-shape recovery is on the table. if the v is on the table, then you need to own some banks and cyclicals. there are other possibilities which is why i stress you need barbell portfolio. with some recovery winners like banks and disney, the drugs and the foods and techs that people work from home so many secular themes going forward, you'd be nuts to sell these stocks, especially the semis. when it comes to remote working, the genie is out of the bottle as you will see later on in the show why not go all-in the recovery thesis even though the market is roaring, 38 million people applied for jobless benefits until they get retired we're not going back to normal they're collecting unexpanded employment insurance it runs out in july. it is hugely important and
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overlooked by the media. by the time that money runs out we'll need to see an immense amount of hiring the only hiring is huge retailers like walmart, target, home depot and amazon. the retail winners that benefit from the lockdown. medium size businesses are struggling i'm shocked at the system when the payroll protection program runs out of money. we want those paychecks protected! that's why i like a barbell portfolio. future is uncertain. you don't have to choose if you use the barbell. your disney and jpmorgan and goldman sachs will protect you and take 2 and eli lili. take 2 is a terrific buy down 10 after the terrific quarter that usually means it goes down another 3 or 4 and stabilizes and starts going higher. but bottom line, i may not be totally sold on this v you can't switch directions that fast could be more of a u with this much unemployment. but you've got to marvel -- you see marvel, at the strength
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we're seeing especially in housing and airlines two industries that appeared to be on death's door not too long ago. let's go to mike in michigan mike >> caller: hi, jim, first-time caller thank you. >> of course >> caller: focusing on growth, shareholder. is this stock getting out ahead of itself -- >> no, it's going to be a rounding error that it went down all the way to where it is okay, it's all the way up to 120. it spent a lot of time at 120 before it fell apart a couple years ago. i would buy more of this stock if it went down to 110 that's my conviction tom in florida tom. >> caller: this is tommy d. from sunny largo, florida i'm a first-time caller and long-time listener and i want to thank you for all that you do for us little guys, even though you've heard that a million times. >> no, no, look, i love it
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i'm still working here i'm still doing this stuff it's been like -- it's like 3,000 shows, for heaven's sake >> caller: keep up the good work, my friend. >> thank you >> caller: by the way, this is a belated birthday present for me. i just turned 70 years old yesterday, so thank you for taking my call >> you're a young man. let's go to work >> caller: okay. my stock is bj wholesale i want to know what your thoughts -- >> it had a remarkable quarter it ran up too much after that quarter. people went nuts are we going to miss the quarter? i expect the stock to pull back a bit, but not that much because, boy, they blew it out you're in good company with that one and happy birthday let's go to josh in virginia josh >> caller: hey, jim, thanks for your time. >> of course >> caller: corning, ticker glw they have a 4% dividend yield, cash and debt. they have a 5g partnership with verizon, but more importantly, the fda approved a new vial the
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first 100 years in october made by corning it will inevitably get significant order for vials. what do you think about ticker glw? >> i have tired of glw doing nothing, tired now, it fell apart when fiber went away between 1999 and 2000. this company does nothing. it has to go up a little not going with that one, down 22% for the year pete in florida, pete. >> caller: hey, jim, first i want to thank you. >> aw. >> caller: a few months ago i bought barrett gold the c.e.o. on the show. it was 28, now dropped down to 25 not long ago bank of america came out and said gold -- should
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i hold on -- >> you bet you hold on if that stock goes back to 20, we're going to have dr. mark bristow on because that company is the best gold producer and i think everyone has to have a gold stock or own some gold. okay, there's a new narrative. i'm not totally sold on it, but you've got to marvel at today's strength on "mad money" tonight, what's really driving the market beyond what we just talked about? i'll give you my take on the action i'll revisit the covid index which companies are relevant and which ones need to come in and with the tax filing deadline now july 15th, how is intuit doing? i'm going to sit down with the c.e.o. after earnings. 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 or give us a call at 1-800-743-cnbc
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now that most of america is open for business, we just nee one more thing some customers we need to be clear about what's happened with all the cyclical stocks that were roaring or the retailers do you think any shopper really is going to go back to kohl's now that they discovered you can get pretty much everything kohl's carries online from amazon, some private label did they start suddenly selling more tommy hilfiger and calvin klein?
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we like that company they started getting construction orders. where did they come from planes and hotels, fully booked? i don't think so in all these cases i think the answer is no and it doesn't matter these beaten down stocks got so cheap they can have some modest incremental improvement which i mentioned at the top of the show you have to believe incremental improvement is what they're going to get kohl's may not be doing well, but they're doing better than when they were closed. another positive federal treasury department pumped trillions, not billions, trillions in benefits for troubled businesses and forgivable loans for businesses that agree not to fire anyone. that assistance really helps but at the end of the day, we always seem to forget we are in a recession. v, u, l, it's recession. in a recession people spend less either because they don't have enough monitor they're worried about not having enough money. that's being mitigated, $600 a week those additional benefits expire
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at the end of july i think congress needs to extend them because there are so many people that simply won't be able to make it in this new world of social distancing. with the new economy and all the jobs comes back, it strikes me as way too optimistic. we had 38 million jobless claims in the last nine weeks, 38 million. even if most of the people got their jobs back or find new jobs, that's a massive surge in unemployment i'm betting many employers are reluctant to hire and others simply won't be employers any more because they won't exist. this recession has been fabulous for e-commerce it's been horrible for brick and mortar retailers that historically employ millions of people it's really bad for the little person that's why i say we need another stimulus bill. restaurants are going under left and right. big retail chains are declaring bankruptcy without more government assistance for these businesses there won't be enough 0 jobs to go around. the stock market masks that. we need a rescue passage if we want to get out of this
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recession as quickly as possible that's the only sure fire way. the long shot is what today was about. if we get a vaccine much faster than anyone expected, then all bets are off business does come roaring back. that will be sensational personally i think it's very unlikely, but this belief in a vaccine is what drove today's rally. it's all about the idea that one of these 100 plus attempts to beat covid-19 pays off sooner than expected or maybe the virus isn't as dangerous as we thought, though as a new yorker, i'm telling you that's wrong i say don't hold your breath here and remember, all these reopenings don't mean very much if there aren't any customers. maybe i'm being a tad too pessimistic here without more government assistance or miraculous vaccine i'm getting the economy is going to have serious demand problems and that will cause real disruption in the don't worry be happy stocks that roared today stay with cramer (♪)
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between ideas and inspiration, trauma and treatment. gained a couple of more pounds. that's good for the babies. between the moments that make us who we are, and keeping them safe, private and secure, there's webex. ♪ ♪ beautiful.
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♪ ♪ a little over a month ago we dreamed up the cramer covid-19 index. it seemed perfectly positioned for the pandemic economy we debuted it on air the following monday april 24th to may 22nd, the first four weeks performed pretty well. could be better. the last four weeks, cramer covid-19, 6.5%, trouncing the dow jones industrials, up 2.9%, s&p up 4.2%. it's good to be beating the two most important benchmarks. unfortunately our covid index is now trailing both the nasdaq composite up 8%, nasdaq 100 up 7.1% there is plenty of tech. it doesn't have as much tech as the nasdaq and nasdaq has been on fire. over the past week our covid-19 has fallen behind the russell small cap 2000 which is up 10% in the past four weeks. that's incredible. may 13 to may 22, the russell
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exploded higher. that wasn't something i anticipated. got that wrong i figured this would be a tough period for smaller companies that's truly changing since we started getting some positive news from the vaccine front. as we reopen the economy, smaller operators are in better shape, better than a lot of economists said they would be. i wanted to review the covid-19 index performers in more detail, and then make some adjustments because the whole point of this list is to be a distillation of what's working right now when you break the cramer covid-19 index down by sector, the best performing group is the financials that work, up 22% cloud up second, 18% today semiconductors and exotics, some china, some not. a catch-all category for exotics is weird companies both up 11. we have high single digit gains in beverage stocks, e-commerce, regular tech and the restaurant survivors. the ones with enough digital to
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thrive here. retail survivors were up 1.5%. the biggest under performers, though, the safety stocks with big dividends. consumer package goods plays, package foods, utilities and more defense i. real estate investment trusts were all in negative territory seems to think people don't think we're going into a recession. the weirdest group, health care. we put 20 health care stocks in the cramer covid-19 index making it the largest sector by far in average health care stocks were flat. we've had some huge winners. dexcom, the diabetes glucose monitor surged 22% i check my blotter every day the close of the aller began deal thermal fischer, os, names were flat regeneron, pfizer, resmed, united health group. i think regeneron is a buy at the end of the day
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that's the selling of sanofi the best american companies, johnson & johnson, some down 11%. health care performers were best -- powerful dividends like j & j and eli lili shame on the market, but that's what happened. the best performers should come as no surprise peloton, can't go to the gym levongo health these stocks were down today because these are all new economy. cloud-based platform that help businesses handle expense management, huge environment, millions of people want to get reimbursed for setting up their home offices spotify snuck on there because it's rolling out the podcasting business moderna because they're leading the pack on developing coronavirus. by the way, those who own moderna, there are companies like merck that came into play here that's why it's down square, shopify which got
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hammered today that's a stay-at-home play e commerce fischer worst performers were generally recession stocks the kind of names wall street loves when we're worried about a horrific economy you would think it would be with 38 million unemployed. as i said at the top of the show, the market has gotten more confident. we'll have a speedy v-shape recovery witness today's terrific run no one thought that ten days ago. that makesment recession stocks less attractive. here's the question. is the cramer covid index fund in danger of being left behind as america reopens for business? the last couple weeks investors have been swapping out of the beat down stocks and into recovery plays that trend continues and maybe it was near the end of it today because it was vicious our index would be too defensive. i have to tell you, i think it's too soon to give up on recession stocks as much as i hope we have a recovery, america swiftly gets back normal, it's tough to bet on i'm worried the recovery will take longer than the bulls expect maybe u not v. more importantly there are so many ways it can be derailed
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think of other problems, the many small businesses currently on government life support we've been on a better trajectory with the virus. but if we see a bunch of big outbreaks as the economy opens, it is going to hurt. if there is a second wave of infection that is going to hurt. i know there hasn't been i am thrilled. any news on the vaccine front, that's really going to hurt. that's why i want to keep most of our defensive exposure, don't want to get rid of it. you need to be protected in case something goes wrong i think we can improve on the relevancy of the index we put it together, 100 stocks we have to make it better. listen the s&p does that. i am dropping ten of the worst performers and replacing them with stocks that are better suit today this moment and more relevant so we're going to drop beck ton dickinson, anovia pharmaceuticals. roku and snap. some of these are duplicative. you don't need both becton dickinson and baxter when
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they're both out in front. you don't need fresh pet and chewy. you don't need a vaccine play like anovia when you have a good one like moderna ten replacements don't laugh. the biggest beat of altec companies, biggest one then spunk, remember last week, two digital contents performance monitoring analytics plays that should have been in the index from the start they need a flow of webex which is why they have good quarters third is twilio. another one that should have been in the index from the get go, they had a previous couple bad quarters i thought there might be too much weakness. fourth and fifth, e commerce facilitators sole proprietors on the internet, etsy helps sell goods, wix a better website our bad for leaving these out. speaking of our bad for leaving them out, six changed.
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on demand, interconnected, platform, when back to school season comes along and i think it will, many colleges will keep holding classes online they can help students in schools save a fortune seven is target. obvious retail survivor. even though the stock got slammed when the company reported last week, i thought c.e.o. brian cornell told a great story when we spoke to him thursday night the market is wrong i think on target i know that's tough. you're never supposed to say that i've been saying that about target ever since brian cornell got in there s&p global doug peterson makes most of the ratings on rate agency 9th is palo alto they were on last week and, boy, they told a great story. so many people working remotely, cyber security on fire, palo alto is the industry leader now. it just reported a phenomenal quarter. some would dispute that leadership including crowd strike it was a good quarter.
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a vaccine play, also a contract manufacturing business meaning whoever comes up with a covid vaccine they'll use emergent j & j's partner. bottom line, i'm feeling better about the cramer covid-19 index with those ten changes this is a big but. if the economy goes smoothly, we'll have a whole different order of recovery stocks i don't think we're there yet, although i'm working on a separate index so we'll be ready when it happens. let's go to robert in kansas robert >> caller: booyah i can't, jim >> booyah, robert. what's going on? >> caller: my question is about -- knowing it's a strong defensive company to own during times of high unemployment and recessions, they have lots of beats consistently during 2019 do you think there will beest nats again on thursday and is it time to buy more >> here's what i'm going to tell
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you. when dollar general reports, the stock tends to go down i've seen it more than not go down like 4, 5, 6 points and people then -- todd bezos, c.e.o. talks what am i doing? i threw it away. new buyers come in why don't you wait and see the quarter. how about rick in new jersey rick >> caller: hi, jim rick from new jersey my question is british petroleum, bp. i bought it at 22 when the oil prices were low. since then the oil prices doubled, yet the oil stocks, all of them are still down what do you think? >> nobody believes -- and that's usually pretty good when nobody believes chevron, believe there people tell me bp is going to cut its dividend they just raised the dividend. but i'm not a proselytizer for the oil stocks when people ask me what to buy, buy parsley, pioneer, diamond back, you can buy eog or you can buy chevron. that's my complete list. don't deviate. i'm feeling pretty good
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about the updated cramer covid-19 index when the economy comes roaring back and we get the v, what can i tell you this is anti-v i like a barbell you heard me say that at the top of the show. now, there's much more "mad money" ahead can intuit ride out the covid-19 economic shock i'm sitting down with the c.e.o. after earnings to see how the can of is doing. i've loved that company a long time covid-19 impacts everything, including the farm belt. i'm talking to the c.e.o. of corteva to find out how he's positioning himself. and all your calls in rapid fire in lightning round so stay with cramer. (vo) our communities need help like never before and wells fargo employees are assisting millions of customers across america through fee waivers and payment deferrals, helping people stay in their homes through mortgage
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♪ ♪ while the stock market is roaring, i'm worried about the
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small and medium size businesses that don't have publicly traded stocks that's why tonight i am so glad to take the pulse of these businesses with a fantastic company, intuit, the financial technology company you know it's quick books, customers are restaurants, moment in turbo tax. the irs delayed the deadline for filing taxes this year yet despite the disappointment, the stock barely got dinged. most analysts raised their estimates. at this point intuit is made up of ground it lost when it crashed in february and march. the stock is painting a bullish picture even as the landscape for medium size customers seems pretty rough let's find out let's take a closer look with the president and c.e.o. of intuit get a better sense of where the company is headed. welcome to "mad money. >> jim, thank you so much for having me. >> okay. so, you have an extraordinary thing. we have been talking about how
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zoom has changed things. of how teledoc has changed things intuit was ready for the virtual shift in this country, wasn't it >> you know, we are so delighted to have the opportunity to build on the foundation of being ready for this virtual world, as you know, because i hear you talk about it on your show. there is just a massive shift of virtual, whether it's education, whether it's medical, whether it's home fitness. and even when it comes to taxes and bookkeeping and handling your small business, folks are moving to a virtual world. so we're very fortune to be ready for that with our turbo tax and quick books live platform >> can you tell us, we are concerned because we talked to the treasury secretary mnuchin and we know from a lot of companies that smaller business does not have the ability to get as much capital as larger. how do you feel about the state of small and medium-size
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business if we do open the country right now? >> first of all, we feel for small businesses just to set context, we serve one to ten employees we made an entry into small businesses that are between ten to 100 employees these are small businesses that are really the heartbeat of america. they normally have up to about eight weeks of cash. they're fighters, they're dreamers, and this environment has dramatically impacted them and, of course, what matters most is health and safety. but as long as we open up the country in a very safe way, i think they are ready to deliver for their customers, and many of them have actually changed their business models to be able to work in this virtual world and we are just very much inspired by their passion and their compassion >> i know you have a similar program to square where you can basically give advances to companies. with the economy so bad, i
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imagine you had to pull some of these lines, that it's not a great time for some industries because of the health and safety rules, or because the boutique nature >> you know, we've had to be, of course, much more thoughtful because we don't want the small businesses to get in trouble, not being able to pay their loans back now, we've invested in this machine-learning platform for about four to five years, and we leverage about 26 billion data sources, that's always crunching numbers. we know very well based on all your money coming in and money going out what your capacity is, what you can afford, the credit worthiness of your customers and so we have to tighten up a little bit, but we've also been really leveraging our machine learning capabilities to still do good by our customers >> one of our producers say we have intuit on you've got to tell him how someone hacked my account, my checking account, my paypal account, and that you, with
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credit karma, flagged it, got it stopped. he could not say enough good things about credit karma. i am not as familiar with it other than the fact i know the deal hasn't closed it sounds like it's a much larger addressable market than what you currently have. >> it is, jim. i'll tell you, start with why. we were so interested in credit karma. we set a goal a year and a half ago to double household savings rate for anybody that's on our platform we wanted to play a role that goes far beyond taxes. we wanted to really be the financial assistant in your pocket and with credit karma, we're not going to be able to connect customers to financial products that are right for them. we're an agnostic platform, help them save money, get out of debt they had 100 million plus customers, almost 40 million monthly active we're going to be able to reach customers in ways we couldn't before and so i'm delighted your producer found it helpful and we could not be more excited to help customers save more money
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with credit karma. >> can you talk about how -- i thought this was great some people wanted to visit in the old days, pre-pandemic actually, they like to go visit a person in the new world, i don't want to go to that office i want to do it virtual. brick and mortar is very hard right now, isn't it, for your competitor >> you know, it is i mean, if you think about two things that are converging, one, folks that were born after the smartphone, they want to do everything on their smartphone and they're less privy to go to physical locations and then when you look at this unfortunate pandemic, i think it's just sped up everything five-plus years where folks want to be able to do things online they want to engage in expert online both to get their taxes done, but also we're seeing the same thing with small businesses where they want to connect to the bookkeeper in a virtual world, exchange documents in a virtual world. i think the whole world has set up about five years to be able to do things online, engage
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online i think in the long term it's going to be good for the globe, but of course we need to get through the current environment in a very safe way >> i totally agree with you it sped it up they said the same thing at microsoft. it really pulled forward the last thing i find so troubling is the amount of credit card debt and the 50% of americans that live paycheck to paycheck >> yeah, i tell you, it's incredible it's one of the reasons why we were so excited to come together with credit karma because now with 100 million plus customers they serve, we can give you early access to your paycheck. there's 23 million americans that go to pay day loans to get access to their money wednesday, they're getting paid friday. we needto play a important rol to educate folks on financial health and make sure they make the right choices and the right decisions. >> wow, it's always -- you count your lucky stars that we have
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good jobs. anyway, that's sasan, c.e.o. of intuit it's a company we've liked for several hundred points and i think this company is the winner in its segment, and i just am very excited about intuit always have been "mad money" is back after the break. (soothing music) - did you know that americans that bought gold in 2005 quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. - [announcer] today u.s. money reserve announces the immediate release of us government issued 1/10 ounce gold american eagle coins for the incredible price shown on your screen.
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time for the lightning round start with quentin in georgia. quentin. >> caller: jim, thanks for taking my call i want to take a second to wish my wonderful wife a happy 38th birthday i get your take on newell brand. >> it's not high quality, does not have a great balance sheet let's go to terry in nevada. terry. >> caller: jim, thank you for taking my call >> of course >> caller: hope you and your family are doing well. >> oh, yeah. >> caller: i'm calling about caesar's entertainment >> i've said it, i like pan national gaming, okay. that's my one. i think that that is a great nation national pastiche without worrying about china let's go to peter in new jersey
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peter. >> caller: jim, thank you, i love your show >> thank you >> caller: i'd like to have your opinion on a company that is backed by bill gates and d.e. shaw that uses a.i. to recognize if a drug will be viable for biotech companies. >> um-hmm. >> caller: it's called sdgr. >> we like this one for the same reasons we like nvidia a very smart company i think it's a great spec. let's go to alan in oklahoma, alan >> caller: hi, jim i'm calling about spt. hold it, buy or sell >> i have to find out what the heck this thing is so my bad that i don't know it, but i promise we'll get back let's go to philip in iowa philip >> caller: booyah, jim >> booyah. >> caller: i want to ask you
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about norton life lock last week they posted a beat, supposed to beat on the top and bottom line, buy back 625 million in shares, were upgraded by various wall street firms reaffirmed guidance and they also have a business model that's very well suited for consumers moving online. >> i happen to think the world of norton life lock. it's pretty much set up by rick hill he has the chief executive officer who is sensational i think this is an under valued stock and it should be bought, and we've had so many guests -- haven't had a chance to detail why i like that stock, but i like it very much. john in california, john >> caller: booyah, cramer. >> booyah. >> caller: first-time caller from san jose,california i've been watching you and following you all the way back to the days of just hosting on "squawk," the late great mark haines >> yeah. >> caller: i want to say a quick thank you. you taught me so much as an investor i learned so much from your show and your books >> thank you
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you're very kind thank you. >> caller: i have a pretty well diversified barbell portfolio little house of pain with canopy -- >> canopy is the most legit of all the cannabis stocks with terrific management. it's the only one that i felt can triumphs over the crazy period we have short squeezes in the group. that is the most legit in the group. let's go to jason in new york jason. >> caller: booyah, jim this is jason calling from new york with all the guys possibly getting into mcdonald's, is now the time to buy into this potential monster stock beyond meat >> this thing literally just doubled. i am deeply committed to it. i think it's terrific. if i say yes, buy it and it goes down 10, you should not be surprised. it is a wild trader. could it go down 15? yes. do i believe in it long term
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probably more than almost any stock that we talk about john in california john >> caller: booyah from bay area on the left coast. >> perfect >> caller: espg. >> that worked its way back. they have the best technology. it's all the way back pretty good i have to say it's pretty good and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade ♪ ♪
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♪ ♪ as the world gradually reopens for business, what's happening to the agriculture industry corteva is the agri science company. it was created when dow chemical merged and spun them off as a separate company roughly a year ago. the stock caught fire late last year when the trump administration reached a trade agreement with china then the pandemic hit. and from late february through late march, the stock plunged from the low 30s to just 20 bucks. since then it's rebounded to nearly 26. how is corteva doing earlier this month it reported fabulous numbers, terrific sales, great earnings beat it gave cautious commentary. they warned of looming head winds, price uncertainty and potential global recession thanks to the uncertainty of the decline to give forward guidance, after rallying right out of the gate the stock
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stumbled on the commentary it came roaring back now that wall street is getting excited about the recovery that's why corteva rallied an a stop i canning 4.5% today. let's check in with the c.e.o. to learn more about how his company is doing mr. collins, welcome to "mad money. >> great, jim. thanks for having me it's been almost a year since we talked last, back in june of 2019 when we launched corteva as a publicly traded pure play ag company. a lot's happened since then, but we've got an amazing team and we're executing really well in the market place >> okay. so, can you tell -- since it's your first time on, we want to talk about crop protection as a business and seed as a business because you're number one in seed, crop protection has been a bit of a battle. if you can tell us what it means, pipeline, how it influences you, what the science means. >> yeah, i think what you hit on is one of the key strategic advantages that we have going
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forward. it's the strong foundation around technology and innovation in our pipeline. i think we have a product lineup second to none on the seed side, we have strong market shares in corn and soybeans, canola, rice around the world, crop protection especially those products used on fruits and vegetables, insecticides, fungicides crops like wheat and corn and beans. one of the things you also take away, we're a very diverse company. we sell -- we sell seeds in 14 different crops and chemistry, over 140 countries around the world. so a real strength with that pipeline and that product lineup in seed and chemistry. >> see, when i went over your numbers, i thought they were really good. and then i did admit, i have to admit i got a little confused about guidance you're one of those companies that has so many things going for it it's an election year so the farmers get a bail -- usually
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they do well maybe things will simmer down with china brazil is not that big with the real, i'm looking for something that would be a core holding away from the cyclical holding of deer. >> you're right, jim we had a strong first quarter. 16% rise in net sales, double digit growth essentially in every region around the world, and 53% ebitda growth going forward. and what i've said before, we're demonstrating the strengths -- our key competitive advantages we have in our portfolio, but also our distribution system, that unmatched connection that we have with farmers add to that this very strong company-wide focus on operational excellence, and then we just support growers and food security all around the world. so we're carrying strong momentum into second quarter and probably the main reason is we look to the second half and out of caution, taken a pause on
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guidance was really related to mostly currency, and heavily affected by the brazilian rayi we put something together to cover part of that impact. we have techniques we're deploying to help cover some of that i have my team all around the world looking at additional cost productivity we talked about adding $100 million worth of cost productivity and then like i said, we're a very diverse business so we're going to go chase new business opportunities in other areas of the world that maybe aren't as currency affected. so i would say by the end of 2020, i would hope to cover a majority of the impact, but it's just a little too uncertain right now to call what that brazilian rayi is going to be in november when it really matters the most to us >> got it. now, how about the flood in midland, where are we with your operation? >> yeah, thank you for asking. horrible 500-year flood, biggest
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impact right now clearly operations were shutdown out of abundance of safety and caution. our teams are evaluating the impact of that only 1% of our second half revenue is dependent on any of the products that come out of mid land so as far as 2020 goes, we would expect, you know, a minimal impact give me a few days, let those teams understand the full impact to our operating units as we sit here right now, the water crested lower than we expected the impact on the units was less and my biggest concern right now is for our employees we had over 400 of our corteva colleagues that were directly affected in their homes in the city of midland. we're going to work awful hard to make sure they're taken care of as well >> one last thing. it matters tremendously, the price of corn. there is a volume of gasoline that has to impact ethanol what is the way it works with corteva?
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>> right so, as you know, jim, we supply a large majority of the corn seed in the northern hemisphere. that's based on our product performance and the way our germ plasma and our germ plates have interacted together. we feel really good about planting season here in 2020, we have a good crop on the ground but we need to see how that crop performs here this year. we're going to have two more seasons to look at crop performance in latin america before we come back around to trying to predict what commodity prices are going to be going into 2021. the ethanol industry is clearly a big impact they grind a lot of corn we're seeing some actually encouraging news out of the transport industry, that as this recovery might be coming back a little faster than everyone expected, people driving more cars, using more ethanol, that blend requirement will really help open these ethanol plants back up. another thing to watch for,
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there's not a lot of industry storage of ethanol so as gasoline demand comes back, those ethanol plants will have to get up and running quickly. >> longer term you have a lot of good things going for you, jim thanks for coming on "mad money. great to see you >> great to see you, too thanks, jim. >> that's jim collins, corteva, c.e.o., ctva this is a much better stock to own, i believe, than deer. if you want to play the ultimate long-term food industry in general. "mad money" is back after the break. where will you go first? will it be familiar streets? or perhaps unknown roads? wherever you may go, lexus will welcome you back with exceptional offers. find a lexus for every road at no payments for up to 90 days on all 2020 lexus models. experience amazing at your lexus dealer.
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♪ ♪ next on "markets in turmoil," chicago mayor rom emmanuel what it will look like post pandemic. a micro brewery. plus the steps more than a dozen hospitals are taking to deal with shortages of p.p.e. all with my friend scott wapner. when you have these big rotations they tend not to end in the morning they end midday. if you're planning the rotation, be aware if there is a reversal it's going to come midday, not each day don't be surprised if the same stocks open up again that is the typical pattern that i've seen for the 40 years that i've been on wall street i like to say there's always a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer and i will see you tomorrow.
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watch and listen live on the cnbc app. good evening, i'm scott wapner on day 149 of the coronavirus crisis, and reopening sending stocks surging, but is your safety at risk >> there is strong confidence on the part of the scientists that we can get a vaccine. >> the find to get a virus moving forward with merck making a major move. >> the nyse opens up today. >> and how do we destroy the


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