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tv   Mad Money  CNBC  November 10, 2016 6:00pm-7:01pm EST

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you take them off, put them in facebook. it's down. i think it goes up. >> great job by the twitter followers, love you folks out there. honeywell will play catch-up in this industrial revolution. >> see you back tomorrow. for m. meantime, "mad money" with jam 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.
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so call me at 1-800-743-cnbc or tweet me @jimcramer. you know i say that at the top of every show, and i usually frown upon the friends part. but the ones i have here today are west point cadets. and members of the reserve and veterans of the army, navy, and air force and their families. so i'm feeling humbled, and i'm filled with pride tonight. the night before veterans' day. [ applause ] thank you. okay. let's face it. in the last 48 hours, the world, it's been turned upside down. a fiery candidate who seemed hell bent on putting his opponent in prison now graciously accepts her concession speech. a republican nominee who at one time questions the bona fides of our current occupant of the white house has by all accounts a terrific meeting with that same sitting president. then a successful candidate who
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has turned his party asunder makes peace with the leader of the gop in the house and embraces him. isn't that the narrative of president-elect donald trump? and isn't it the narrative of the stock market itself with the dow and the s&p 500 visiting all time highs today? dow gaining 218 points. s&p climbing 0.20%. even as the nasdaq declined 0.81%. after flying high for many years, while the economies the world were laid low. it's as if the squinty, flinty pessimists on wall street suddenly turned into cockeyed optimists who believe that things have really changed. as though the meanest election in modern history has suddenly embraced the land of lincoln with charity told all and malice toward none. tell me this isn't like when george bailey wakes up in the middle of that nightmare in
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"it's a wonderful life" and he finds out there's innate goodness when men and women come together. it sure feels like that to me except this is reality, not a movie. okay. maybe it's because i'm imbued with the strength and power of some of the greatest people our country has to offer, a group of 40 cadets from west point as well as veterans and reserve personnel that i too feel my sat ur nine skepticism melting. would you be any different surrounded by these wonderful young people who are committing their lives to serving our country in the most honorable way possible? yeah, i bet you'd feel exactly the same way i do. i always address the people at home, but i turn to you now in the audience that represent the millions of men and women and their families who have joined the armed forces. and i say, thank you. we civilians hope we never let you down. we need to serve you whether it
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means hiring you after you've completed your duties or simply acknowledging those in uniform with a smile and a, "thanks so much for being who you are and doing what you do." i'm proud my dad was in the army. he served in the pacific with the six, saw too much action frankly, helped occupy kyoto. got to go back to college on the g.i. bill and get a job and raise a family. we owe you jobs for your service so you could do the same thing, which is why we're saluting you tonight in showing appreciation to two chief executives, alex gorsky, the west point alumnus turn the army ranger, turned ceo of johnson & johnson, and howard schultz of starbucks. both of whom have showed an admirable commitment to hiring veterans. at the same time as we offer thanks, i have to put what the heck is happening in the stock market in perspective for you and for everyone at home. why? because underneath this market, underneath this market, we have got a wholesale switch happening.
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the biggest money managers in the world are speaking in yeun ison and what they're doing right or wrong -- right or wrong, that's important -- needs to be put into plain english. these fund managers are throwing out the notion that gridlock is good, and they're forgetting the idea that washington is anti-business and can only do harm. come on, that's been the rap, right? instead they're basking in the idea that the government could be involved in creating a bigger pie for all to eat, even if that seems a little too fanciful, a little too like george bailey. fictional character. to be true. nevertheless it's become the new conventional wisdom on wall street. our stock market has become this place where people just accepted the tenor of the times, reflecting a low-growth, overstretched, beleaguered world where the next meal could be hard to come by. and perhaps because of the surprise factor, perhaps because trump has pledged to -- we have
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a rally in the kinds of stocks that the world had forgotten about while big money managers sell the stocks that work when the economy is stagnating. it's the companies that make things -- and i mean tangible things, not software, not websites, not search -- that make up the trump rally. same goes for the stocks of the companies that cater to people who feel optimistic enough to go out to eat and shop. witness the incredible rallies in coal khols and macy's this morning and the monster good number from cramer fave nordstrom. instead of watching political mudslinging or playing video games, although nvidia shot the lights out when it reported this evening, people are shopping. they're going out. that's what we're hearing. macy's told me that today. chipotle said it yesterday. it's the companies that have been mired in regulation, the banks, that are leading the charge to all time highs. a group that when it gets going
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as always been a remarkable general for others to follow. it's going because people feel that the regulations will be torn asunder, the ones that kept them from making as much money as they probably could. now, let me just say that i think this rally could be, after today, getting out of hand. there's no way that the velocity of these moves, both up and down, can last beyond a few days past this election. no, it's super natural. while the baton has been passed, making the financials and the metal benders in market's new leaders, i think the better bargain after tonight might lie in today's trash bin. if only because the tech stocks and soft goods plays and bonds market equivalent stocks seem to have fallen too far too fast. some consumer packaged goods companies have been spoiled but it might be time to spare the rod. when you get these kinds of fulcrum changes, and we got a similar one right at the conclusion of the first gulf war, they tend to have staying power. that one lasted for three
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months. people thought it would last for three dares. here's my bottom line. we salute those who serve, and we praise the healers and those who bury the hatchet. and we marvel that maybe, just maybe, there's real change in the air. and i don't just mean that army could beat navy this year. [ applause ] or take down the fighting irish this weekend either. [ applause ] i mean that the people are putting money to work in this market are betting that our country is going to grow at a much faster pace? will they be right? way too soon to tell. i think it's possible. nevertheless, we need to accept that for a moment, cynicism, it's been knocked for a loop here, and cautious optimism has descended upon wall street in a way i haven't seen since ronald reagan won the white house 36 years ago. let's take questions. sir? >> good evening, sir. my name is t.j. men, and i'd like to extend you a warm greeting from my hometown in cor
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thaj, illinois. >> thank you so much sir. >> as i watched election results, i saw volatility and the futures just drop. and then i went to bed thinking that the next day was going to be pretty rough. i woke up, pleasantly surprised that futures were coming back, and we went up. and i'm wondering between now and the inauguration, do you think -- what do you think volatility will do? and i own a stock of free poert mcmoran. that stock has been on the tear. >> sir, you own the best acting stock since the election. that's a copper company and copper is breaking out. i think you raised a good question, which is is volatility here to stay in i think with every important appointment we get or rumor of appointment for treasury secretary, for important positions in the cabinet, we are going to have crazy trading. i say that because right now we've moved so much so fast that it's too easy to repeal. i urge people to think longer term. but free port, i've got to tell you, that balance sheet's been fixed. if copper stays this high, it's
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worth owning. thank you. yes? >> sir, scott buchanan from new jersey. my question is in regards to kinder morgan. would you consider it to be done being an income stock and if so, could it now be considered a growth stock? >> that's a great question. kinder morgan is actually in the sweet spot right now. you know i wasn't happy when they cut the dividend. i've got to tell you what went wrong here is that they expanded too quickly, and they took down too much debt. here's what matters. we do not have enough pipeline in this country. we need more pipeline. and president-elect trump has pledged to be very positive and friendly to the pipeline industry. therefore kmi, it's worth buying right here. that is a change of my mind because i've been favorable to the pipelines but not that one. it's a buy. all right. optimism is ruling the day on wall street for a change, and from the view i have right now, you know what? it's fine. on a very special "mad money,"
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invest in america, salute to the troops, i'm sitting down with the johnson & johnson ceo and west point graduate alex gorsky to hear about the future of health care. plus starbucks ceo howard shulths on the election and his efforts to assist veterans. but first we went from down 800 points tuesday night to all-time highs today. how did so many miss this move? and how do you make sure your positioned the right way going forward? i'll tell you, so stay with cramer. [ applause ] >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to
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i we worked with pg&eof to save energy because wenie. wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut off the light. the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights!
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those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california. hi, i'm from carmel indiana.
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>> and i'm from westminster, colorado. we're here at the united states air force academy. >> we'd like to say happy holidays from us at the academy and thank you to all those who have served before us. happy veterans' day. [ applause ] >> every year we celebrate veterans day on "mad money" by high lighting the companies. i want to welcome alex gorsky. he's the ceo of the world's largest health care company, johnson & johnson. he's a retired army captain and graduate of west point and his company does an amazing amount to help our troops. provides assistance to veterans and the families of the fallen. let's check in with alex gorsky, the terrific chairman and ceo of johnson & johnson. hear more about the amazing work he's doing for his company and our receipt van communiveteran .
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mr. gorsky, welcome back to "mad money." good to see you. have a seat. >> good to see you. >> your company is deeply committed and hires veterans throughout the organization. you've got a vast, vast company. where have veterans helped you? >> well, jim, they've helped us in so many ways. you know, we look at the employees, for example, at johnson & johnson. we have about 45,000. over 5% of them are veterans. they're veterans like marine alison, who's right out in the audience today. i'd like to recognize in the very first class of women cadets, 1980, served her country, then got out and went into the fbi, worked her way up. now she runs cybersecurity for johnson & johnson. so it's a great example -- [ applause ] so whether you look at a woman like her running our cybersecurity, the head of our pharmaceutical supply chain, they touch all aspects of our business ask we couldn't do what we do without the great leadership, the great work of veterans. >> how do you find the veterans
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and how do they find you? >> it works both ways. one is you've got to be constantly on the hunt. the thing is right now there's several million veterans who are either just getting out or have just gotten out of the service. they've got great leadership skills, great problem solving skills. we make it a priority in our recruiting, that's number one. number two, you got to make sure your people are trained and developed to make sure they understand the backgrounds they've had in the military. sometimes it just gets lost in translation. making sure you can translate what they did in the military to what they could actually do in the business situation. and then it's about making sure that you have a really welcoming environment. so once they get into the company, that they can be successful. they get mentored. they got a lot of coaching. then we find they just take off. they really end up doing some great things. >> worldwide organization. worldwide organization, the armed forces. dovetails well? >> absolutely. it starts really with character, with things like integity, the things they learn at the military academy, duty, honor, country, the honor code. it's hard work.
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it's problem solving, critical thinking. it's leadership. all those things, that's what we need more of in business as you know. >> now, i don't want to single out -- you do triumph games, but the travis man onfoundation you've introduced me too. >> thank you very much. the travis man ion foundation is something near and dear to my heart. it started with an acquaintance we had, a fellow person at johnson & johnson, colonel tom manion and his wife janet, and their son, a graduate of the united states naval academy ended up being tragically killed in iraq. when travis came back, janet and tom were absolutely committed to make sure that we could use this terrible event as a way to inspire others. so what was created was the travis manion foundation and it's a foundation that my wife and i are both actively engaged in. and travis's sister is now in a leadership role. it helps families, service members get their feet back on the ground.
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it's got a wonderful program called character does matter where we coach people to go out to high schools to make sure that people don't forget the incredible commitment and sacrifice that so many of these veterans have put on the line. and it's been a tremendous success, and it's a great way to keep the spirit of travis manion alive. >> you put out an announcement and i hadn't seen this other than an a coin. e plur bus unum. i want you to talk about it because i like what you had to say. >> i felt there's so many going on in the world, in our country the past few days. i think being here today right before veterans' day, it's a great example of the importance of how we all come together as a country. and all the common values that we share, what we stand for. and making sure that we think of -- when we come together, we're much stronger together than we are as one. and making sure we keep that alive, and i wanted to keep that spirit alive at our company at johnson & johnson. but i think it's an important message for everyone in the united states.
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>> i want to talk about the role of johnson & johnson. i'm from philadelphia as you know. >> go, bucks county. >> live in new jersey, always felt that johnson & johnson, force of good, hires lots of people, does great things around the world, invents, discovers things. sometimes pharma get vilifievil. hillary clinton was at times i think somewhat critical. so what's president-elect trump. what do you have to say to the politicians about the good side of pharma? >> look, we understand it's been a very political season. there's been a lot going on. health care, you know, is and it should be an important part of the debate. when you think about it, what's more important? what is more personal than good health care? at some point in our lives, it's going to touch all of us. it's 18% of our gdp. and regardless of which side of the political spectrum you fall on, all of us are going to have to work together in the coming years to come up with better solutions around health care. we talk about pharmaceuticals. look, if we look back over the past 75 years, one of the reasons that life expectancy has
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increased so dramatically from the mid-50s to now your late 70s is because we can stop infection. we can stop so many diseases. cardiovascular disease, other areas. much of that is due to pharmaceuticals. so, look, it's our responsibility, it's our obligation to continue to innovate to bring new therapies. we've got to find a secure for alzheimer's. we've got to find a cure for post-traumatic stress disorder, for traumatic brain injury. that's what really motivates our scientists and all of our employees every day is to bring great new treatments and therapies out there. frankly, we've also got to do a better job of explaining what we're doing. >> right. >> and we've got to behave responsibly as well. >> there were some bad apples out there. >> absolutely. >> in the few seconds remaining, you're an alumnus. what do you have to say to our great men and women who are now at the academy? >> i could not be more proud of the men and women out there in the audience right now. they really represent so much of what is great about our country.
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thank you so much for your service. thank you so much for what you do each and every day. you've got an exciting future ahead. go, army. >> thank you to alex gorsky, chairman and ceo of johnson & johnson. "mad money" is back after the break. >> announcer: coming up, "mad money" continues its salute to the troops. a conversation with the politically outspoken starbucks ceo howard schultz. cramer and he talk about his mission to support veterans and whether a trump presidency could stall starbucks' growth in china. >> there are significant dichss we have all over the world, language, politics, religion, culture, all of these things. but we all basically want the same thing. >> announcer: a very special "mad money" is coming right back.
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why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. this is kamt trina edwards. i am stationed in kuwait with
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the transportation brigade. i would like to say hello, happy holidays to my family in lakeland, florida. that's polk county. especially by daughter, ava, my mom angel, trilla and all of my family and friends. happy holidays. i will be home soon. love you. [ applause ] >> if you needed any more proof, the tremendous rally over the past two days is a textbook example of why no one ever made a dime by panicking. on election night, i heard some commentators tell you to sell everything. >> sell, sell, sell. >> heard it several times. i saw it on twitter repeatedly. these sell-everything calls started in earnest when it became pretty clear that some of hillary's firewall was being breached. boy, i hated that term. they continued in earnest as the s&p futures kept plummeting into
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the wee hours of wednesday morning. now, if you believe we were on the verge of some kind of financial collapse, i could see why you'd want to sell everything. but the truth is going into election night, we had one candidate who wants to cut taxes, okay, to grow the economy and another one that wanted to raise taxes. what's so shattering about that? what if one candidate thinks there's too much regulation, red tape, and the other things there isn't enough regulation because the first candidate wants to protect capital, and the second one wants to protect labor? big deal. that's what happens every four years. but we got off track this election. we had two candidates with two different philosophies and we never gave the philosophies a hearing. many people in this country can afford things because mexican workers are paid about $3 an hour to make these goods and they might as well be part of
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the u.s. because of nafta. if there were no nafta, there would be tariffs on these goods it's an unlevel playing field. it might easily cost eight to ten times as much to make the same thing in the u.s. where sadly absenteeism runs. this is an important debate, and i don't think nafta would have passed if we knew the two nations were going to diverge so much with mexico's peso making labor cheaper and unfair. wouldn't it be great if we'd had a debate about whether jobs in this country are being killed off by offshoring or if the real culprit is technology and all those apps on your cell phone? i think reasonable people could come down on both sides of these issues if they were explained but things got out of control. look, what we care about here on "mad money" is that the rhetoric on both sides so exceeded the issues that people turned a so-called scary election into a scary market analysis, which
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called them to sell the future as dressively on tuesday while telling regular people to get the heck out of stocks. this is why we don't panic because if you listen to these people, if you focused on the shenanigans and not the substance, it kept you out of an amazing opportunity. here's my bottom line. the sell everything call was a little too much like yelling "fire" in a crowded theater when the pyrotechnics masked the simple fact that the stock market was going to be just fine either way and another great buying opportunity was missed because of the fear mongers unaware of the unrealities and, yes, the strengths of our political system. let's take questions. >> robert sprinter from charlest charleston, south carolina. >> thank you. >> i have a quick question. four states on tuesday voted to raise their minimum wages. i was wondering how the stock market for businesses in those states such as dish net in colorado would be affected. >> i always ask the ceos about how they feel about the minimum wage. for the most part, they're sanguine and say it's kind of built in. no one has said on air that the minimum wage is an issue.
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sometimes regulation, absolutely. sometimes issues involving what i say the difficulty of running a business because of regulation. but no one has actually fingered the minimum wage as a reason for a shortfall. it just hasn't factored in, but it's a good question. yes? >> cadet mark mcginnis from michigan. you see the market went down on a crash for three days and it's now on an up rise of 200 points. what do you foresee going into the future. >> disney reports a quarter tonight, then it looks like espn is bad, but then it's good. nordstrom retails week and flies up. what i'm say, it's too minute to minute for my taste. got to sit back, figure out like i've been saying for disney, how about the next 50 years, not the next 50 minutes? that's the we have to think. sterling willman from arizona. >> sir. >> with the results of the recent election, how will the likely repeal of obamacare affect health care stocks? >> okay. it's a very thing.
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a lot of people feel the hospitals have been filled more because of affordable care act. at the same time, a lot of people feel the health maintenance organizations have been punished or particularly there's been a lot more scrutiny on the drug companies and that that's going to end. and maybe make it more benign environment for pharmaceuticals in general. but it's the hospitals that have gone down too much. i think that they're buys, but it's an important issue. that's the group that's been hurt the most. it's a little overdone. but thank you so much. the rhetoric of this campaign dried out the policies behind each candidate. so the next time you hear someone shouting "sell everything" remember to take a closer look past the headlines. still more "mad money" ahead. my conversation with starbucks ceo howard schultz, but is your next vacation about to get a whole lot more profitable? i got travel related stock that could be ready to move. and these cadets are going to put me to the test in the lightning round! so stick with cramer. [ applause ]
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i wish the rest of the entire american population could see them in action, see their level of integrity. that started me thinking about what could i do.
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you know, veterans' day to me as turned into a mattress sale. let's turn it back to what it's supposed to be. [ applause ] >> every now and then, it's worth remembering some things are more valuable than money. tonight's veterans' day show is one of those moments. that's why i like to celebrity the companies doing the most to help our veterans, companies like starbucks, which sa mong other things is committed to hiring 10,000 vets by the end of 2018. the mission continues. on top of that, the company has rolled out dozens of military family stores that are operated primarily by veterans or the spouses of service members, and that also work with local organizations to provide services to veterans and their families. howard is too modest so i'll say it. this man's family foundation has committed $30 million to help veterans transition into the civilian workforce.
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let's take a closer look with howard schultz, chairman and ceo of starbucks and get his take on the future of his company, the world, the election, whatever. welcome back to "mad money." thank you so much. >> thank you very much for that need introduction. >> of course. now, howard, i've heard you talk about these fabulous men and women deserving of respect but also deserving of opportunity. >> yes. >> and you are giving both. >> well, i have to just tell you a quick story. that is secretary gates joined starbucks board about four years ago. and when he came on the starbucks board, he began to educate our entire company that over a million extraordinary young men and women were coming home from afghanistan and iraq, and they were coming home without not only a parade, but an understanding of the american people because most americans did not have much skin in the game with regard to the war. so we really began to understand what could we do as a company. so we hired thousands of veterans and/or their spouses. i want to say something that's
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really important. their level of integrity, work ethic, leadership skills is beyond reproach but also, on a cultural basis, which is so important to a company, when starbucks people are working alongside a veteran, their level of pride and what the company stands for, and i think we've now opened up stores that are veteran-based. they have an apron that says they're a veteran, and i think what we've tried to do is raise the national awareness and discourse about what it is to serve the country. two years ago, we had this extraordinary hbo starbucks special where 800,000 people came to the national mall, and all we tried to do once again was elevate the national conversation. what i would say is simply we should not be acknowledging veterans who have served the country only on veterans' day. we should be doing it every single day. we owe them a great, great debt of gratitude. >> we owe them, and we are entitled or feel entitled, but not for anything that we
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necessarily do. >> exactly right. i think every time you sit down with somebody who has served, you realize there's no sense of entitlement whatsoever. i'll tell you one very brief story. we were in a focus group with veterans who were leaving the service. and i heard a young man say something i will never forget. he said he had more anxiety about going to a job interview than he had going back to afghanistan because he had no training, no resources, no tools. and when you hear something like that, you realize we must step in and provide transitional training, transitional tools and give people the opportunity to enter the workforce in a way that is a smooth transition for them. >> you are talking about something that's really a partnership not just between the men and women in the armed services and business, but maybe a partnership that's with a nation. we're at a time where we just finished a very divisive election. when i hear what you're saying and your heartfelt mention both to the troops and to veterans,
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what i think is, is that you're trying to say, listen, maybe business can help. and maybe business shouldn't be vilified baugh you'ecause you'r a role too. >> what i would say is that business today, for one reason or another, has gotten a bad rap. and there are bad actors. let's admit it. but business is not evil. >> right. >> we have an opportunity as a business and business leaders to contribute greatly to our society by hiring great young men and women, by creating vendor opportunities. we just opened a store in ferguson, missouri, after a year of what went on there. people said, ferguson, how could you possibly go there? that store is doing so well, and you should see the community. it's a beacon of hope. we can provide that kind of opportunity across the nation. >> so there are veterans watching the show right now. >> yes. >> we both want them to work at starbucks. so what do we do? how do we make that happen? tell them right now. >> yes. one thing we've learned is that what we need inside starbucks in
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the h.r. group is we need veterans recruiting veterans. >> okay. >> who understand their language, their challenges, their issues. so the people who are recruiting veterans at starbucks are people who have worn the cloth of the nation. but there are thousands of opportunities today to work in starbucks stores, to come in, to get trained, to work in our office, work on our management team, work on our supply chain. what we've learned is that the level of attrition rate among veterans is lower. the level of performance is higher. and these are great, great young men and women. >> so tell me where we are. it's a difficult moment in the country, and it's also, today, we've seen, and yesterday, a kind of magnanimous gesture of coming together. you are an optimist and also a skeptic. how does it make you feel right now? >> i think the country has gone through an incredible crucible, and i think we're all -- the fact that it's over, whether we like the result or not, i think
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the president and hillary clinton did a wonderful job of demonstrating real humility and recognizing that we need to support president-elect trump, and as a nation, we need to come together. so i am optimistic. but we have a lot of work to do. my concern right now is to ensure the fact that there is a lot less divisiveness and vitriolic behavior, and there's a level of sincerity and people coming together with compassion and empathy for everyone. >> you and i have spoken for a long time about the notion of the ambassadorship of starbucks. i have said to you at one time that perhaps whole conflicts could have been avoided had american business, through starbucks, had starbucks throughout the world. what is the feeling in vietnam, in china, within our own lives? >> i wish everyone could come with me on a trip. we just came back from china and japan, and see what's going on. i think the thing we've learns, the bottom line is there are
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significant differences that we have all over the world, language, politics, religion, culture, all of these things. but we all basically want the same thing, and it's universal. we want to be respected. we want to be dignified, and we want a better life for our children. and if a company, if you can reach out and demonstrate truth and authenticity and be value-spaced, you're going to be embraced all over the world. that's what happens. that is what happens to starbucks. >> you've exported a remarkable concept and you have done an amazing job for shareholders. i have to ask you, are our troops our best export? >> i think there's no better export when you see a young man and woman in uniform representing the united states of america. and i've had the great privilege of going to -- i've said okinawa. i've been to kuwait. i've been to a number of places, and everyone i've ever met makes you proud to be an american. >> we're proud to have you on "mad money." thank you for everything that you're doing for service people,
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for veterans, and for the country. that's howard schultz, chairman and ceo of starbucks. "mad money" is back after the break. >> thanks, jim. >> thanks. i'm with the uts army reserve. want to take this time to say thank you to all our veterans, your service and dedication is moving me for the future. thank you again. remember here at ally, nothing stops us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in. ♪ ♪ one, two, - wait, wait. wait - where's tina? doing the hand thing? yep! we are all in for our customers. ally. do it right.
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>> announcer: lightning round is sponsored by td ameritrade. >> it is time! it is time for the lightning round! that's where i take your calls rapid fire. you tell me the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." hit me. >> hey, jim. i'm sang from california. i was wondering how does at&t and time warner cable merger affect a stock like t-mobile. >> john lezure is money. buy t-mobile. yes? >> andrew from california. booyah to you from the corps of cadets. >> right back. >> with the resignation of the ceo of weight watchers over a rough year, can we expect -- >> don't buy.
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don't buy. don't buy. wo >> i'm from houston texas. my question is i wanted to know is as electric cars become more popular, how do you think tesla is going to do in the next year? >> i think tesla is a cold stock. people who own the stock and own the car, they love each other. they're inseparable. i can't justify owning it, though. yes. >> jesus from dalton, georgia. given recent political tension on american car companies, what do you think the next year is going to look like for ford? >> i think ford is going to have an okay year. i think they have operations that are far flung and they're not carrying their own weight. i do like mark fields, but that's a very challenged industry right now. yes, sir. >> nathan brooks from st. louis, missouri. how do you think the possible transition from coal to shales as an energy source will affect oil companies such as b.p. should. >> well, b.p. doesn't have enough natural gas. i would actually think about doing -- you can do a pipeline company. you can do an enterprise, or you
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can do, yes, i'm going to say it, kinder morgan or energy transfer partners which are also very good. >> marco from down south. with the new administration coming in, where do you foresee energy comes like clayton williams? 2017? >> i really want some heft. i want companies to have a lot more natural gas. let's stay away. by the yes. >> daniel from minnesota. what's your take on the eaton corporation? >> it wasn't that good a quarter, the stock went up anyway. if i owned some eaton, i would take a little profit here. yes? >> sir, ben from north carolina. is target a buy or pass? >> you know what, i'm going to take a pass on target because i think neither walmart nor a dollar store. don't forget amazon, only the second straight day off of trump, selloff. might be time. yes? >> peter from north jersey. i was wondering considering working in the health care field. i see increasing infection rates. what do you think about novartis?
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>> it's got too many other fingers in pies for me to be able to make it as an infection play. merck is my favorite in terms of the overall kind of vaccination. they're the best. and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade
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i'm with the army reserves, and i want to say happy veterans day and thank you, mom, for 17 years of dedicated service. now that we at last have some close our on the election issue, i don't want to lose sielth of the need to find stocks that are being overlooked and what has become an exodus from consumer product and tech equities to retailers and banks of all sorts. i know we are celebrating the work of veterans here, but we would be off key if we didn't try to help you find ignored opportunities, ignored because of the endless focus on politics. two days ago priceline reported a terrific quarter. i think everyone is ignoring the other big online travel play, expedia. it's not getting the credit it deserves for its smaller businesses. this is a stock that fits in between the cracks of what's hated right now and what's liked in this new political world. a couple weeks ago, expedia reported a quarter that at first glance seemed like it wasn't
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anything to write home about. with more or less in-line revenues and weaker than expected earnings. yet the stock rallied 4% the following day because when you took the time to look under the hood, a lot of good things are happening at this company. the problem is i don't think many of you had time to check under the hood because all anyone seemed to care about at that moment was who would win the election. so it's time to talk about this company. see, there's a lot to like with expedia. i want to make sure you understand what makes this story so strong because it's exactly the kind of stock that's worth owning in this very environment right now. first and foremost, it seems clear to me that expedia is finally starting to benefit from its purchase of a company called home away. the vacation rental company that management told us they were buying roughly a year ago for $3.9 billion. since then, expedia's stock is actually down about 8%. darn thing is still in the red for the year in part because home away was the latest in a string of expensive acquisitions including or bits and travelocity. i think this is beginning to bear fruit based on the most
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recent quarter. for those of you who don't remember, home away is the world leader in the fast-growing vacation rental space. owners and the property managers use it to connect with travelers from a wide variety of vacation homes. before the deal was announced, home away's once high growth rate had started to decelerate thanks in part to competition from a company that many of you know, airbnb. but from the get-go, expedia said they could get the business roaring again, shifting home away from their paid listing base business to a more transaction-based model with plans to nearly triple its earnings before interest, taxes, depreciation, amortization through 2015 through 2018. it was a force to be raek onned with before expedia's take over. right when the deal was announced, home away said it would implement a traveler booking fee about 6% on average for most transactions, which
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would help to wring more money out of the business. they also planned to make listings bookable online. now, at first the analysts were very enthusiastic about this deal. once it closed last december, there were plenty of concerns that expedia would have trouble integrating this acquisition. but in the three full quarters since then, the company has done a terrific job of laying those worries to rest. when expedia reported at the end of april, a strong top and bottom line beat, they announced some major changes at home away, move it away from an ad based model. that's not a good model right now, to a transaction-based one that people really can build on. expedia also eliminated the complicated five-tier model for people who want to rent out their properties and replace it with a single $349 a year subscription for listings that can be booked online. as for the transaction fee they announced at the time of the acquisition, management said it was going well. their overall commentary was incredibly optimistic. they reported again in late july, a bottom line beat with a small top line miss.
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once again, home away did very well, with its revenues up 33% year-over-year. plus management said their home away business should accelerate in the second half of the year, which brings me to the quarter expedia reported two weeks ago that no one cared about. like i mentioned earlier, the headline numbers were less than stellar, 6 cent earnings missed off a 2.47 basis, only slightly better than expected revenue. but the home away business was ann fa way go. that's why we liked it. increased by a 61% year-over-year. that's accelerated revenue growth. management said the transaction revenue was very strong as they rolled out their booking fee worldwide. despite these terrific numbers, expedia told us home away is in the early innings. plus analysts at pacific crest recently did some channel checks of the vacation rental plays and they found home away drives significantly more traffic. home away is a lot more attractive than the commission.
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expedia has pulled off a truly amazing transformation with this business and not getting any credit for it. it's not just home away. trivago was very big in europe, didn't have much of a following in america. after being under exfeedy's umbrella for a few years, it's now performing incredibly well. in the latest quarter, their growth accelerated to a monster clip. expedia pointed out they've already grown trivago's revenue six gold. there's been talk about an ipo. i think that could help unlock a tremendous amount of value. i think expedia can go much higher. when you consider priceline is up 22% for the year. let me give you the bottom line here. expedia has done some tremendous things with home away and trivago but i don't think it's
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getting nearly enough credit for it the way it unlocked the true poeshlg of these gizs. that's why i think it's time for this stock to play catchup with priceline or at least catch up to the red hot airline stocks that are signaling a boost to worldwide travel. stick with cramer. >> hi. i'm seaman brown. i'm stationed here in spain. i'm have germantown, wisconsin. i want to wish a happy veterans day to everybody back home, especially my grandpa. i love you. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.
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i hope that after tonight's show you have no doubts that the promise of america is alive and well. take a moment tomorrow to remember the sacrifices of those who have served and are serving around the world. i like to say there's always a bull market somewhere. i promise to try and find it just for you right here on "mad money." i'm jim cramer. see you tomorrow! [ applause ]
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["bridal chorus" playing] ♪ >> hey, you guys. getting married today? >> both: yes, sir. >> you know, i guessed that since you're all dressed up. [laughter] >> yeah. >> well, before i pronounce you man and wife, what is love, sir? can you explain to us? >> [laughing] ah. i don't know. i wasn't ready for that question. >> you weren't ready for that question. okay, all right. all right. okay, so maybe this guy doesn't know what love is, but we do. tonight on "jay leno's garage"... it's like a resort for cars. we answer the question, "why do we love our cars?" che bella machine. you'll meet the original owner of a 50-year-old corvette... >> i like speed. >> oh, who just


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