like -- >> no, yousent me a text earlier today -- >> i did. i was way ahead of the game. >> that's what i really like. >> tapestry had an outside reversal day last week, it was my final trade, you have a little more in the tank. .> all right, thank you, all and thanks for having is my last trade. >> all right. thank you, all, and thank you for having me right now, and thank you for watching "fast money". my mission is simple, to make you money. i am here to level the playing field for all investors. there is always a work somewhere, and i promise to help you find it. "mad money" starts now. >> hey! i'm kramer. welcome to "mad money", welcome to . i am just trying to make a little bit of money. so, to call me at one 800 -- this market almost feels blasphemous to me, because we

are being led by an outrageously bullish combination of stocks, that should not be going higher at the same time. nobody wants to say it, but i don't know if i can recall a moment where we had such disparate stocks climbing together to new highs. you asked me a few weeks ago, i would have told you this combination today is not conceivable. that is what has happened. dow getting another 350 points today, s&p, record close. nasdaq, you guessed it, record close. this actually defies the whole nature of the conventional wisdom of what can happen when we are at this part in the cycle. for the old days, crashing in 2008. we would be celebrating daily today, so now in a certain respect, they just try to ignore what is happening, so they can o back, go back to talking about how the consumer is tapped out, or something we

learned about from some incredibly weak retail sales numbers just this morning, or how inflation is still raging, and it is frightening the budget deficit, a consumer price index is too high, there were even people complaining about how the economy is just too hot, still. i know! i saw it twice this morning. i wanted to reach in and grab it, but i couldn't because they were right there. they would have hurt me. okay, look. in negative spin on all sorts of positive news, not only no celebration, no positive nature, but really, an outright pessimist, pessimist day. i don't know what they can do with it. and then, there were the stocks themselves. you listen to the stocks, they are saying, shut up and drive. they are saying, you must not listen to all of this, these billionaires that are doing their best to scare you telling you, those people are awful. the bears have had it wrong. there are just too many groups going higher all at once. that is what is happening.

let's deal with the actual stocks. how could jp morgan, bank of america, qualified materials constitute? how could southern utility fit in the list? what if boston scientific holds another company, in tandem with 52 week highs? it is all about the zeitgeist of this very odd, very bullish hunt. let's go over what is really happening with this tremendous rally, because that is every part about how this business works. i am going to listen because it is that special. for years, we have been taught -- you are either in one kind of market or another, but not both. you can say either you go higher, or other groups go higher. rallies, or goes down. not this time. not this time. we have a ton of industrials, banks, utilities, and tax all going up at the same time. that almost never happens because utilities going up to a recession, industrial goes down

when we are headed to an inflation. tech rallies, internet, data center, in this case, artificial intelligence. financials soar when inflation is getting under control and the consumer is strong enough to pay back loans but rates stay high. homeowners move up when rates are about to plummet. those are basically happening at the same time. what kind of vacuum is this? the stocks meeting us higher are supposed to be mutually exclusive. what does that say about the people buying stocks? it says there are many different camps of investors right now, many different groups of buyers and perhaps by mistake, they are converging. a weak cpi could put rate cuts back on the table, so they body industrials. there is another camp that says you can buy the stocks -- i'm sorry -- by the banks, because ever since last year's crisis, they have gotten so cheap and you can own them without having too much to worry about. [ sound of gunfire ] there is a camp that thinks the federal interest rate is higher because of a recession, so that the

recession breeds utilities, so then we have the week sales numbers of this morning. that takes off because the sector of growth, no thanks to the artificial intelligence been, during nvidia. i saw it with my own eyes today, when i talked to bill reddy, the ceo of pinterest, who has been using nvidia cpu chips for inferential pics. the homeowners cannot because mortgage rates actually went down today. big deal, it seems like the 10 year was headed into a five and that would have driven rates up to 8%, but then we get that cooler mark this morning. second, this kind of rally is built on skepticism. many investors believe that the key to this market is the consumer. without the consumer, they say, you can't get to all-time highs. >> they know nothing! >> that sentiment has left so many behind trampled by the bullish stampede. they just weren't able to think about something down the same, old tattered playbook that no longer fits the market. who needs a consumer when you have the enterprise?

in truth, you just didn't need the breadwinners out there. plus, we have opened up the chance that consumer stocks could be the next to rally, if we get more size, they may want to cut rates. that will make a lot of quarters for the companies who are in retail that are not that good, look better. and you know what? didn't we just see a gigantic wave of unexpected layoffs that shuttered red lobsters? unemployment could be taking up. one point, if you are waiting for the consumer breakout, you would have missed such incredible moves. i mean, consumerism is in good shape, the fed would be getting ready to raise rates again, which would obliterate everything on the new high list except utilities. yet, this weirdly broad-based rally would be truly impossible if the consumers' thoughts were leading and the consumers were really spending like ad. third, you know what? the billionaires -- [ sound of gunfire ] they couldn't kill us. a week ago, card-carrying billionaire and very nice person came on our air and said

he expects a regional bank or two to fail every week. that is an incredibly dire forecast. >> the house of pain! >> could you see j.p. morgan, bank of america, and stanley, all hitting that high? if you believe his doom and gloom, you get left in the dust and you should get out now, frankly. i want a bullish billionaire to come on here and say, invest in microsoft, some supply materials, schwab is great, maybe southern conference, lillian burke, two countries that also worked on the high list. imagine if someone came on -- imagine if a billionaire said that, jo, joe, becky, i really like it here. andrew, you know what? i am buying a lot of stuff. can you imagine that? he would sit there and you would say -- wow, i am really learning something. finally, let us recognize that many investors have been brainwashed into thinking there is simply enough money to go around. here, i think they are missing

a lack of new shares, created by a weak ipo market, a bullish investor who tends to put money in index funds. think about it like this, if you own a stock with a huge buyback like apple, and we keep getting waves of money coming over the s&p funds, you end up with a stock with a substantial share that basically never moves. clearly, a gigantic sum of ownership bypasses index funds. they don't trade. they buyback stocks for additional stock, and then quench it. any economists that use rates with actual money coming into the s&p, it picks up stock and puts it away. that means it is actual buyers, not index buyers, but actual buyers that have actual competition for shares. when you have multiple bidders like giant company buybacks and huge s&p buyers, then when a natural buyer comes in, say they want to buy 2 million shares of a company, well, that by could move up a stock. even a stock like apple. so, let me give you the bottom line of this amazing time. it is a strange confluence, a remarkable, unseen, unrecognizable bull market. when that happens when the

buyers see every glass as half- full, even if they are wrong. even if they are wrong, because they're buying can make themselves right, just by being aggressive enough. and that is really what happened today. let's go to ryan in florida. ryan? >> boo yeah, jim. >> boo yeah, ryan. what is going on? >> my dad and i are fans of your show. look, you can't break my heart today. at these current levels, i love it, i have been buying a lot of it. i know the ceo didn't look too good on the last interview with you, but the drivers are always in tact and they are trying to roll out more deals to bring in more customers at the end of the day. what you think about starbucks over the next 10 to 24 months? >> i think starbucks' stock is too cheap. i think they have to be realistic, that the turn is going to take a while, and a plan includes having, say, a starbucks two, like panera two, where they really figure out

how to handle throughput, and figure out how the baristas can make the drinks, how to handle the lines, mobile order pay without cutting in front and they have to do those things. when they do that, they will get it right. so, no, my trust owns it, but my trust is down a huge amount, and when that happens, it is my fault. okay? it is my fault, because i believe. and when you believe, and a stock goes down, it is on you, not on them. the bull market we saw today is one that happens when buyers see every glass as half-full, and even if they are wrong, the buyers themselves can make them right as long as they are aggressive enough. let me tell you, i am diving into the latest. today's cpi, we will see what these numbers for the stock market. then, could conglomerate breakups be your money breakup? i am looking at technology and ge, and another one in there. it has been half a decade since pinterest ipo. so, i sat down with the ceo to see what is ahead for the social media stand out. so, stay with cramer!

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you ready? -showtime. this is gonna be epic. [ barking ]

it's what the poster said. do you want to make out or? nope. i meant yes. he's a bon garçon. i give amazing sponge-baths. can i get a room? [ chuckling ] ♪ ♪ chef's kiss. the market roared today. thanks to the mornings cooler than expected consumer price index reading, 8.3% increase versus the previous month. the market was looking for 0.4%. that is the headline number. it explains a lot of today's mood. but, it makes it easier for the

fed to think about cutting rates in the not so distant future, and we know that is really what the stock buyers care about. for a couple of minutes, i am going to drill down into the individual line items and the cpi point, a lockdown and breakdown about the future, so let's get granular. this includes the monthly cpi report in four categories. the first major story is the fact that food inflation is on the ropes. yes, in today's april cpi report, food prices were flat from the previous month. we are now building up a big winning streak of food inflation. the basis was 2.2%, lowest increase was may of 2021, when we first started to realize that maybe -- inflation was becoming a big problem. if we go down to the subcategories, food at home and food away from home, you see that food at home, well, it turned negative in april versus the previous month. even on a year-over-year basis, they were up just one .1%. there is still some work to do for the food away from home category, price is up 3.3% over

month and 4.1% year-over-year. but, you know what? i think we will see progress here soon, because we have learned that in earnings seasons, many restaurants see pushback on price increases, including mcdonald. plus, you know in terms of food at home, i think walmart is an inflation fighter, bring down the cost of food nationwide and costco is doing the same thing. okay, next is energy. another important category. energy prices have been one of the key sources for inflation searches this year, cooling down in late 2023. this time, change in energy prices was positive, but not too bad. 1.1% month-to-month in april. the year-to-year change was 2.6%. highest was february 2023, not ideal. but, that is still in alignment with the feds 2% inflation target. within the energy commodity prices, those were the main problem with 2.7% month over month and that is because of a 2.8% increase in gasoline prices. the biggest increases for energy costs were upset, by 7.7%

month over month for utility services. utility guest services down 2.9%, so energy is not perfect but the biggest problem is gasoline and we know the problem has pulled back in recent weeks, so maybe it is not a major problem going forward. the decline in their refinery stocks tells me that prices could come down, maybe even hard. here, price changes have mostly been negative for a while, and they stay that way in april, down 0.1%, month over month, and 1.3%, year-over-year. the biggest decline since at least 2011! so, when it comes to that, they have won the fight against inflation. we are going to subcategories, we have some problems, like a 2.2% increase in medical commodities. i give up. also a 1.2% increase month-to-

month over power prices, which i am not sure i believe. interest department, i have never heard of, temu? but, with these bad numbers, there were some good ones. especially on the deal front, where consumers seem to be getting some relief. 0.4% month over month decline in vehicle prices, used cars and trucks. in fact, used cars and trucks were down 6.9% year-over-year, very nice, finally! and finally, it is all about services. i will tell you up front, there is less good news 2.2 here, this is really an achilles heel. the best thing we could point out is that the price increases in services are, indeed, decelerating. the overall 0.4% month over month uptake for services in april was better than in february and march, certainly better than the 0.7% january reading. so, a big problem, but not as bad as it was. how about that? when you drill down, i don't like that decrease in shelter or medical care services, or the 0.9% increase in transportation services, which is actually the lowest number

from transportation in the last four months, but it is still really bad. worst of all, car insurance is out of control. it is p 22.6% year-over-year. i am almost calling out a national crisis. we need a car insurance tba firm to say, figure out the real price. why isn't this industry being taken on? i know why. maybe the government is too busy going after apple, alphabet, and amazon? so, here is the bottom line. while today's cooler than expected cpi report was a big positive for the market, when you dig into it, there are more nuances to be found, some areas are doing better than others. now, you know what to watch and how to direct prices as a whole. and prices, i think they are headed down. "mad money" is back after the break. coming up, a dual look at two major industrial spinoffs. who is looking fab after their breakup? stick with cramer.

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a tremendous day for the averages. i want to talk about one of my favorite subjects, which is breakups. not because i am an old curmudgeon who somehow hates romance. not that kind of breakup! but for big conglomerates to divide themselves into smaller, more easily digestible, understandable pieces, it creates a ton of value for shareholders. these past few years, we have seen three major breakups from

industrial titans, one has made a fortune for you, one has made a huge fortune for you. first is united technologies. they swallowed up an air conditioning business, carrier global, kind of like an hvac business, and an elevator business. it emerges into the aerospace and defense division to create a company called the new rtx. then, more recently, they spun off the healthcare business to ge healthcare, offloading its power business -- leaving ge aerospace. these moves have already unlocked a tremendous amount of value for the trail -- shareholders. this is where the breakups were enacted, because that is the cleanest way to go. although, you can make more money in the time between the announcement and the time that the spinoffs start happening. for united, united not -- united technologies three-way breakup took place in april 2020. a time when the whole market was depressed. united technologies had a market capitalization of $74.5 billion right there, so, i don't know. let's call it $107 billion for

the starting point for this combined valuation. what is it worth now? the part that mergedwith rtx is valued at 108% after the breakup. now worth over $140 billion. that is that little problem they have, kind of a problem with their engine. they have really put that behind very quickly, proud of these guys. by the way, i think rtx is great business, both in commercial aerospace and the defense side. but, it is carrier global that is the biggest burner. this is a surprise, stocks up 395% since the breakup. this heating ventilation air conditioning business is now worth over $59 billion. all by itself! doing a great job, thanks to the stewardship of dave gitlin. reported a fantastic quarter last month and i see more strength ahead thanks to the data center boom and tremendous

access in europe. remember, this is where full service needs industrial and air conditioning to keep the heaters running at peak performance. that is a major theme for 2024. third, otis worldwide is up 20% since the breakup. 134% total return including dividends. the old business now worth $40 billion all on its own. a lot of people think as otis as a typical business that builds houses at new constructions, but the company gets the vast bulk of its money from repairing and fixing existing elevators. we care about safety in china, yes! put it all together in the combined value of the three companies is 123% higher than united technologies just before the split. by comparison, the s&p 500 is up 110% over the same time. that is solid outperformance. is that the same blow away at performance you will hear about? no, but i like it. let's talk about the general electric breakup. just before the spinoff of ge healthcare in january '23, they

had a market cap of $93 billion. ge healthcare is up 46%, and up 3900% in the same year. most of ge healthcare's gains came early on and it has been more of a grind since then, but still mainly a grind hunger. we have some moments of weakness for trust, you can follow that at cnbc investing club, i suggest you do because we made some great buys. so, if you have the supply chain issues, it is now gaining a big chunk of its losses. i think that is more of an upside, i thought that last quarter was an aberration not handled well by management, i should add. next, ge spun off its power energy business at ge for nova. now, listen to me. when they rebranded this company as ge aerospace, that is the major one, that same night, i told you to keep going with both components, this is something i want to stress. look, ge aerospace up 17%. ge nova is up 18%.

i think nova, which is really natural gas, it has a lot of room to run. the data centers need a lot of natural gas utilities. when you are out on current market capitalization for ge enterprises, they are with $262 billion, that is up 182% since right before the healthcare spinoff. s&p 500? only up 38% over the same period. it might go for a less generous starting point like the moment the breakup was announced in january 2021, you would still be up 118% with the spinoffs. that is larry cole. now, i have my daughter today, we went upstairs to the boardroom, i said, see that guy? that guy is a smart guy, pointing a picture of larry cole. i pointed out cold. so, why do i have this up? because i'm constantly looking for new opportunities for you. last week, dan hurst sold off its communications supply business. given how these stories usually play out, i think there could be a terrific buy opportunity -- this is one of the greatest performances of all time -- only up 20%.

pure play on diagnostics and medical equipment, very fast- growing. do not overlook that stock. these guys know how to run a company. more importantly, i want to see a breakup from the company that most resembles united technologies. this has been a disappointment and it is called honeywell. yes, we have been patient. my patience is being tried. it is a consistent under performer over this period. it is not about friends, it is about money. is it a breakup, the answer for honeywell? i don't know, and i don't care. i just want something that will move the stock higher because we are a shareholder and that is okay. i think you should consider breaking up, considering how well it has worked for united technologies and ge. modern honeywell is exactly as they were, with modern businesses that have nothing, whatsoever. a great aerospace division, but also doing industrial automation business, one side of energy and sustainability solutions unit, and most of these industries have never seen work at the same time.

one is always tripping up the others. at this point, i don't see what honeywell gets from keeping them under the same roof. they could do a big buyback, big dividend boost, but really what they need is to get the stock higher. i am not happy -- with companies this year that have made my portfolio higher. you know why that is? i don't like losing money, for charity, for you, for anyone. wall street likes smaller, bite sized companies that are easier to value and easier to get your head around. management needs to recognize that the negativity has made it one of the worst performers in the group, when, you know what? there is a tennis player named don barge, he says when everything is working, change nothing, when everything is working, change nothing. if so, transitioning to the role of executive chairman. reported results in february, and it is now affected this june and he will retire from the board entirely. so, if they feel that honeywell needs a shakeup if not an

entire breakup, from united technologies/ge, this would be the best chance to do it. it wouldn't be in a front to darius because he won't be there, bottom line. breaking up into three separate pieces has usually been valuable for united technologies, and ge, two big conglomerates that never seem to get the credit they were due when everything is under the same roof. maybe, just maybe, we will see some other industrial conglomerates like honeywell decide that they, too, can benefit from splitting up into cleaner stories to get better value from investors. i like ceo who make my trust money. is it that hard? let's go to mustafa in ohio. mustapha? >> yes, hi, jim. >> hey, mustapha. >> give me the reasons and issues that the company experienced, and the potential engagements. do you think this is better for long-term? >> i don't know, criminal

prosecution -- you can't criminally prosecute a company. the justice department has to get on its game. talk about another outfit putting a hold on. geez! it is people that commit crimes, not companies! get it together! all right, sometimes, breaking up is hard to do, but beyond technology, a great company, ge, thank you, larry cole. i am sure the others will say, you know what? we don't have to do anything. yeah, why don't you rethink that? i hope you see more reason. much more on "mad money", including pinterest. here is a guy who has it going. i am going through the quarter to see what is going on with the gen z popularity. and of course, all of your calls rapidfire tonight in the lightning round, so stay with cramer.

now that earnings season is winding down, we circle back to some of the best stories in the past few weeks. take pinterest, the social media platform/virtual pin board flight. stocks soared over 20%. opening numbers were incredible, and because they're in novation of ai has made pinterest more attractive to users and advertisers. five years in the public markets and we took the opportunity to sit down with pinterest ceo bill redding to find out what is driving his company's success. take a look. >> bill, big day for pinterest. five years. give me some reflections? >> well, you know, it has been

a remarkable journey for pinterest, a decade plus after founding. pinterest is stronger than ever, we just passed 500 million monthly active users. we have put up seven straight quarters of accelerating user growth. the thing i love most is that at the core of it, we are winning with our users, particularly winning with gen z, which is now more than 40% of our users. we are winning by delivering them positivity. when i came into pinterest, this is one of the things i set out to do, was to prove a business model for social media, centered on positivity rather than engagement via enrichment. coming up on two years in, we have accelerated user growth, we have accelerated revenue growth, but we are doing it by delivering people positivity, not following what is so common in social media via engagement via rage, but giving people

things they love, action ability, but specifically tuning a offer positivity and we see it cutting through with our users. gen z will tell you one of the biggest reasons to come to pinterest is it is an oasis away from the toxic other social media. >> at the same time, these people have a proclivity issue, they have a strong commercial intent. >> that's right. >> it's not like you get them and nothing happens. >> that's right. this has been one of the fundamental changes over pinterest over the last few years. historically, pinterest has solved digital windowshopping's, but you couldn't take action on the things you found. now, we are opening the stores. pinterest is where gen z goes to shop. we more than double the number of clicks we send to advertisers in q4, and then in q1, actually accelerating further in q1, so we brought the action ability into the platform and it is great for users, because it is going to help users take action on the things they find on pinterest, and it is fantastic for

advertising, really making the business model work well for both advertising and users. ads can be great content when the user has commercial intent there to shop, as more than half of the users on pinterest do. >> i think it is important to point out that your company made a switch from cpu, to gpu. you had a do with nvidia. one of the things my daughter was showing me that is incredible, you do a collage and immediately when you go back to your page, there are the ads that you actually want, and they are much less invasive. you are actually thinking, i need it. >> that's exactly right. we lean heavily into next genai, roughly two years ago. we now have models that are 100 times larger than what we had before. what that led to was a full 10 percentage point lift in the relevancy of our recommendations for users, but it is not just the ai, it is the really unique signal we get on our platform. pinterest has always been about duration, but we have really doubled down into duration into making it more defined, more

granular, so not only can you post pictures of what you're interested in, but you can grab elements out of these pictures and say, it is that pair of pants from this picture and that shirt from this other picture, and this from this other one, this pair of shoes, and you can put together this great outfit. that is great for the user, because they are planning the things they want to do -- which is putting together an outfit or designing a room -- but then it is also a really unique signal for pinterest that is completely unique to social media. there is no other social media platform that gets this ind of signal, this granularity, and the ai is as good of a signal of how it is acting and that is a completely unique signal we have that you wouldn't find any place else that is letting us train the ai to give better and better recommendations for users and that is part of why you see users coming back at shopping more at taking action, as well. >> and it is lightning quick. one of the things people have said to me, jim, it is tapped out, but i look at really the incredible breakdown between international and domestic and i think it may be scratched the

surface. >> i would say we are scratching the surface on so many of these things. you know, shopping, we are just getting going. we have accelerated user growth with every generation. gen z is our largest, but we saw user growth in every generation, every geography, and we have roughly 80% of our users outside the u.s., with less than 20% modernization. so, to your point on international, there is a huge opportunity for international and the things we have done around shopping, we started our home market in the u.s. and we are just starting to take those international, so we see tremendous opportunity there even as there continues to be a lot more opportunity for shopping here in the u.s., as well. >> bill, one of the things i have been thinking about, as well, there is a have, have not wended -- when developing. we know that youtube is doing well, amazon, obviously. the google part that is not youtube -- and i want to put

you in that category. one of the reasons i want to -- and by the way, i do not mean to slight by any means, reddit, because they are doing well, too, but nobody ages down, they age up. tell us what that means, because that is special to you? >> is quite unique, it is super rare to see a mobile app age out, normally it ages up over time. and as we have learned in to cure ration, and most importantly, positivity, that is winning with gen z, and exactly as you said, we are aging down which is almost unheard of for an app, because typically you get your most engaged users early on and over time, each successive cohort -- not only are we aging down, our most recent cohorts are nearly twice as engaged as cohorts from the years prior. so, unlike what is typical, like how a cohort at the beginning is most engaged in the mess and less engaged, our most recent cohorts are twice as engaged as other cohorts, so we are finding our best fit in years, and it really is about the curation, the relevancy

with ai, and the relevancy on platform positivity. >> i want to go back to the point of positivity. he said, going forward, it will be the companies and sites that inside combat ersus the ones that are friendly. i said, well, combat is where everybody goes. he goes, not he people you want. you are not letter x, a combat site. >> yes, we are trying to bring people inspiration. people come to pinterest with intent and purpose. it is different from social media that is entertainment based. this is one of the things i intentionally focused on coming in, we wanted to look at how social media became much more negative and toxic over the years, but it was really when ai was put in charge of what you see, and ai figured out that you look longer at things that are triggering for you, whatever your trigger is. we shifted from turning to view time maximum to positive

outcomes, to finding things you want to shop or buy, and testing for things that just make you feel better. we are proving out that there is a business model around positivity that pays to be positive and we are competing on that, and i think we are not a battleground in the sense of the engagement via enrichment that you see everywhere, but i think you can prove out a competitive element in social media. i would like to see the world will social media platforms computed on safety standards the way that auto manufacturers compete on their safety standards, which if you go back far enough, that was a time when auto manufacturers said that was against the business model. but now, they compete on who has the best safety standards, the best safety results, i hope we can create a world like that for social media. >> i think you can. one last question. do you pay attention to this

tiktok battle in washington? could there be an opportunity for pinterest? >> well, what i would say is that gen z comes to pinterest because they see it as something different and unique from the rest of social media. however, what i would say without commenting on one specific company, if you go around the world, you see governments around the world paying much more attention to what is happening with social media. you know, the way that social media has failed to protect its users are too numerous to count, so i guess that happens, you are going to see more and more governments looking at social media and the effects. and on our part, we are not sitting around waiting for government regulators to take action. we are trying to go do the right thing, and approve it is a good business model to do the right thing for users. >> i want to congratulate you on five years. and most importantly, congratulate you on that attitude. as a parent, guess what? that's what i want to see. and as a younger person, they should want to see it, too. bill reddy is the ceo of pinterest and we are at five years. what a remarkable journey point >> thank you, jim herds thank you for having me. when we return, master the

markets one stop at a time. the lightning round is up next.

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it is time for the lightning round! play us out! and then, the lightning round is over, are you ready for the lightning round! we start with gary in pennsylvania. gary? >> hey, jim. quick call on martin, ft expert okay, -- >> i see 53 going to 60. john in washington. john?

>> hi, jim. i am a club member. >> oh, thank you. >> over the years, i have lost about 90% of my investment in matur corp. do you think i should sell this now? >> it is done. let's leave it behind and start thinking, going forward. okay, let's go to brian in california. brian? >> hey, jim. i am looking at a company called k fold. they have 99 your balances. >> yeah, but i don't really know what is in it. i know that the guy who runs it, the ceo is very smart but i am not sure what is in it and that bothers me. let's go to mike in illinois. mike. >> hey, jim. how are you? >> doing well, how about you? >> investment club member for the last five months, i can't tell you how happy i am, i am 67 years old, retired and

totally invested my family's portfolio and you have been a big help in making me much more comfortable for my retirement point >> thank you very much. that is the goal. i mean, look, i just -- jeff marx and i are really trying so hard to do a good job. jeff is amazing. let's go to work. >> all right, buddy, thank you. my question is service now. i am sitting on it, wondering if i should buy more or sell it. >> i would buy more. i wanted to buy that stock for the trust. we own so money in the space, we felt like we couldn't, but that was a nice break before the quarter. it really wasn't a bad quarter and i think the stocks will buy that service now. let's go to tom in maryland. tom? >> hi, jim. boo yeah. >> boo yeah! >> my wife and i watch you every night. talking about energy for a data center, or something. i think that solar cells and windmills are kind of an unreliable source. so, i was looking for small

nuclear reactors, and friday a company with a simple oklo came on the market point >> right. that one is too risky. i am still going to send you to ge nova. they are going to do the small form factor nukes. that is the place you want to be. it's go to jenny in florida. jenny? >> hey, jim. how are you doing? >> doing well, jenny. how about you? >> i am wondering if you could shell your opinion about hennepin grove. >> you know what? a prospective play on campus, that is what you want. and by the way, enough of the consolation brand selling. i think you don't know what you are doing. and that, ladies and gentlemen, is the conclusion of the lightning round! the lightning round is sponsored by charles schwab. ameritrade is now part of schwab. bringing you an elevated experience,

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when it comes to the homeowners, even companies like home depot that can cater to homeowners or contractors, this effect on the market has become incredibly palpable. when you look at home depot's quarter yesterday, nothing stands out more than the rate of money, the rates that homeowners want to pay if they want to get a home equity loan to pay for big renovations. they fuel home depot's profits. initially, home depot reported a downbeat set of numbers in the initial forecast. but, for most retailers' inventories, it is everything, you get heavily discounted merchandise and get it out the door. but then, wall street pulled back and realized without rate cuts, this company might be stuck in the mud. today, we get this cooler consumer price index report, a sign that the fed might be able

to cut rates sooner than expected. and home depot's earnings bumped the stock up eight dollars today, that shows you that the buyers care more about interest rates than they do about what home depot says it is going to do. isn't it amazing how powerful it is? and you know what? it is right. the company was adamant that it needed to do big home renovation projects in order to do big numbers. those projects come from financing, and that means they need lower interest rates to get the job done with pressure even being felt by higher income consumers. that is odd. as the very knowledgeable cfo pointed out, it is not a deferral on projects, it is a deferral mind-set. i said, wow, deferral mind-set. there is a concept i hadn't thought of. eight is a huge bit of knowledge. he said, there is so much chatter about rates going down that, "our customers tell us, with that in mind, without on the horizon, we are just going to wait for the most important dynamic from an income perspective." there are some other issues that are holding back the despot sales.

first of all, we don't have enough used homes in this country and it is the used homes that need the most work. and rates are too high for existing homeowners to want new loans, because they would swap out their low interest rate mortgage for a much higher interest rate mortgage. reading through the lines, home depot's companies are switching from goods to services because the prices of contractors has been one of the biggest drags of all. that is home depot's core customers, contractors. it doesn't pay to alienate them, but pretty much every homeowner knows the shortage of contractors has kept prices far higher than you would expect. remember, housing prices are up something like 54% since 2019, and shelter maintenance is one of the stickiest sources of fla the fed can't seem to be. i don't see contractors rolling back there feet anytime soon. when it was summer, home depot's numbers were solid. maybe, people feel better about renovations when the weather is good, or maybe the spring gardening season is really blooming already. either way, it gives us hope

that the numbers can improve, if the remaining part of spring gets sunk. now, the homeowners all screamed hard today, led by toll brothers. again, because they were down off of the team cpi reading. it is a big chicken-egg game, though. all of the homeowners are nervous that rates will come down, they don't want to build too many houses if rates are staying higher for longer. the current mantra, terrified they will be stuck with excess inventory and then the gross profits are going to plummet, so they built far fewer homes then we need in this country. that in turn fuels higher markets and a higher stock price. basically, the longer interest rates stay high, the fewer houses gets billed, which keeps home prices higher. crazy! in this environment, home depot, cnbc investing club, we had on the show yesterday, need to hope that people just get so sick of how their homes look currently and feel they have no choice but to renovate, because they just don't like the way things are and that is why rates must come down for something like home depot to have a longer-range valley. you know what? it is a tall order, but there

are enough signs of a weakening economy in brown shoots that this could still be a winner, and the fed needs weakness before it can cut. if you own a housing stock, i would say, stay the course as long as you know what you are up against. with the stock up $7.54 today to a new high, they are the best at what they do. i would like to say this, i'm contessa brewer, right now on last call, protecting the election from ai. lawmakers have a big plan to propose, tech heavyweight joins us on how it can work. new numbers could sway the outcome of the presidential race and almost no one is talking about them. >> warren buffetec