tv Mad Money CNBC June 25, 2013 6:00pm-7:01pm EDT
6:00 pm
tomorrow. >> carol. >> i like google. it stalled a little bit and coming in quite a bit. i like it here. >> barnes & noble, down 17%. buy this and trade i. to make you money. i'm here to level the playing field for all investors. there's also somewhere. i promise to help you find it. "mad money" starts now. i'm cramer. if you want to make friends, my job is not just to entertain you but educate you, so call me. what does a bull in this market need to see? what set of circumstances would allow stocks to climb higher not lower? something that resonated with
6:01 pm
the dow gaining 100 points, climbing .9 and nasdaq .2%, for years, years around here we wanted to see an accommodative federal reserve. not a fed that wants you to come over, have a beer and put the game on. it's not going to accommodate you like one of your buds that's happy to see you, an accommodative fed is one that keeps interest rates lower so the economy will recover from slumber while bonds don't make much money with stock. make money in the stock market. accommodative fed wants you to spend money at the mal. buy stocks, not stick it in treasuries and hide it in a muni bond. it's an accommodative innkeeper, have a good time, get on your feet, a fellow innkeeper, i feel
6:02 pm
like old ben working the kitchen and serving bagels sunday morning. that's as close as it gets to accommodative. as i stay accommodative getting customers in, won the fed gets it healthy, it wants to boot its customers, doesn't want to offer accommodations. time to move on. interest rates live, kick the guests out of the joint. now we're getting out head around the idea the fed it's signaling a good deal is over. have you to make it all by yourself in the world. sure some assistance, but to continue accommodative analogy, rates are higher so taking business elsewhere. the fed wouldn't do this if it didn't see good news coming, like pelt new home sales, case-shiller housing index showed huge rise in housing prices. all those underwater in mortgage, 10 million people struggling with payments, ends
6:03 pm
meet, house goes up, can sell, refinance. not good things happen when housing prices go up, not that many bad things. here is the problem. all this makes it hard to keep interest rates down. we had to use stocks with higher yields than ten-year treasury bond which is what's known as the bellwether. like the male sheep that the rest of the flock follows. yes, that's where the term comes from. now interest rates have gotten so high, far fewer stocks are for competitive yield. more important, how quickly those stock gains get taken away when rates rise and that makes us wonder why we bother to risk this month and why do we own those stocks? that's what people are think sng why do we bother? so every time interest rates rise, fewer and fewer stocks, competitive with bellwether, creates a tsunami of selling. i used to trade bonds for a living. i know what it looks like to
6:04 pm
have a real bon bond fire like we've been having. tmx, goes up. monitor. we can make supposition about ben bernanke's accommodative innkeeper. he muffed had a sense employment is about to get better. has a handle than the rest of us. lets go back to what bulls wanted ages and ages, that's the fed stay accommodative. higher, the stock market has to come down. doesn't it have to? kind of yes. the way it is now. only until something changes. today we felt that something change. what happened may be temporary. let me explain the curious transition for the stock market to go higher again and i do believe it can go higher. first we have to reach a point good news doesn't rack the bond market, drive interest rates up
6:05 pm
immediately sending stocks lower immediately. the good news it can happen. there's been many moments in history interest rates went up and stocks went higher. not an impossible dream. bad news is this market isn't set up for that yet. when i say set up, i mean there are many people in the wrong stocks, impacted the i don't think way, high yielders. people waiting for a better moment to sell them. hit resistance today, sold them. many did when we saw the food and drug stocks rally. they keep bringing up sellers. those people think, hey, why not be in bonds. what the stock market bulls need to have happen is for interest rates to overshoot, go so high. when we have good news like we saw, rates no longer move. they stay the same because they are already so high, the bond holders don't fear additional economic growth. why fear it at all? some bond holders fear holding bonds when the economy is well because they do poorly in times of inflation. you can argue we have housing inflation right after today's number. you could argue for case-shiller
6:06 pm
we do have housing inflation. or alternatively, alternatively, bulls need to see stocks go unaffected by rise in interest rates, stocks have gone down enough they discounted. that's what we saw today. bulls decided to overlook rise in interest rates and charge higher and rates did go higher. overseas data resulted in people feeling a little bit better about buying american stocks. my take, don't get used to today. several times we were at the cusp of breaking down and breaking down big because rates were going up threatened to send market lower. hostage to meager increases in mortgage rates despite what the home builders told us including lennar. bulls will buy stocks if they see rates are tame. what we ultimately want good data that doesn't drive interest rates sharply higher because they already are as high as they are going to go for now.
6:07 pm
we aren't there yet. consider this is the first day we went higher on good news. don't get complacent. we're still not where we need to be for the market to go much higher without rates going back for another bearish go-round. laemg, it's not over yet. speak to lawyer in michigan. laura. >> caller: boo-yah. >> boo-yah. >> caller: i came up with one 69% and forward peg of 2. since home prices are going up and home inventories are low, what do you think about meritage homes. >> off the beaten path and it is a great home builder. you're absolutely right. home stocks has been hit. this one has not been hit. be careful. i don't think when we read mortgage rates going to 5 that you want to be in meritage. i agree longer term for housing is bright. the shorter term is not as bright. i know that sounds strange. intermediate, short positions, they rule right now. long-term rules later. what do we want?
6:08 pm
we want good data and rates that don't rise so sharply. we have good data today and interest rates didn't soar, they just went up a little. if they had gone up higher, it would be a real nasty today. "mad money" will be right back. >> coming up, good chemistry? from nylon come kevlar, some of the country's most important inventions have come courtesy of dupont. don't miss the exclusive with the ceo how they are cultivating innovation by investing in america. the alternative, clean, cheap and newfound abundance beneath our feet is leading america's march towards energy independence. cramer reveals nat gas players that could reveal for generations to come. region always outperforming the market this year. with rates rising, investors are betting on more upside to come. but is it time to open the
6:09 pm
vault? cramer is turning to technicals when he goes off the charts. all coming up on mat "on the money." have a question, tweet cramer, #madtweets. send an e-mail to madmoney@cnbc.com or give us a call 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] i've seen incredible things.
6:10 pm
otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business?
6:11 pm
6:12 pm
6:13 pm
it's invest in america week here on "mad money." that means we're focusing on fabulous american moneys with stocks that should rally as it becomes increasingly clear our economy is stronger. what's more iconic than dupont, gigantic chemical company, dow jones component, also happens to be a stock we've been buying. every since the ceo took over in 2009, she's been trying to transform this from a conventional commodity chemical company into an unconventional dynamic, scientific problem solver of a company developing proprietary products for major secular themes. dupont has gotten hit along with the rest of the market, didn't have to lower second quarter guidance two weeks ago but that was just the weather. i like bigger picture. i like where this company is headed. don't take in with me. lets check in with ellen coleman herself chair and ceo of dupont, find out more about her company's prospects.
6:14 pm
ellen, welcome to "mad money." >> good to be here, jim. thank you. >> i see you're going from an innovation center in iowa. why is the center special and what are they producing that can make money for shareholders these days? >> i'm here today in des moines iowa, which is the headquarters of our opinion ear seed business to hope our 12th innovation center. innovation centers are concepts we started, first one in korea, dotted around the world. it's a virtual laboratory. lots of displays, interactive displays, video conferencing capabilities to connect customers to 2010 scientists in the dupont company with the sole purpose of helping our global science be allied and applied very locally to solve our customers' needs and opportunities. >> how do you balance the idea of doing the amazing things you want to accomplish as a scientific company with the profitability you need to give
6:15 pm
for shareholders and dividends which your company has always supported which tend not to be associated with the kind of high growth you are engineering at dupont. >> you know, it all starts with the science company we've become over the last decade. we've always had a strong investment in research and development and through applied development, and really focused on the customer. and it is an engine. it is an engine that drives our growth. yes, we still do basic research. we do that in two centers, one here in johnston, iowa, the other in wilmington, delaware. the most important is the applied development that's occurring all around the world at over 150 research centers using the ideas that are generated in these innovation centers. so it all connects together. what you get is a series of projects which turn into product innovations and new products that drive our top line growth. it really is the creation of
6:16 pm
that engine and driving that engine is the focus of our activities. >> one of the things i'm concerned about as a shareholder from a trust, i wonder, is dupont trying to be, excuse this term, too lofty. you're trying to create energy in a very sustainable way. you're trying to create safety in ways we're not used to. you've got kevlar that stops bullets. you're trying to create a new diet that maybe would be perfect if we're in a perfect world. but are all these things just too high and mighty to be able to pull off in a profitable way? >> well, you know, jim, it comes down to the science. we call it integrated science. the science leverage across our company and businesses. we can apply the very same sciences to a myriad of applications. you think about enzyme technology. i think this is a great example. enzymes can be used to do a lot
6:17 pm
of different things. enzymes can be used to break down cellulose, convert it to ethanol, create ethanol. enzymes can break down stains on clothes to provide great cleaning in cold water. enzymes can be used to convert other biomasses into advanced polymers to be used in a variety of application. i think you have some material sitting there, that's ser onna, half the molecules come from corn. enzymes enable that. enzyme technology apply to a wide range of market. it's through leverage of that technology we call it integrated science where we're really creating a tremendous amount of excitement in our value chains. >> this afternoon the president spoke and the the president is talking about sustainability and strict limits on carbon. he's trying to make it so we have fewer greenhouse gases. do we need with that, what you're talking about with science, the most strict regime
6:18 pm
available because that's when dupont makes the most money? >> you know, we tend to drive our science based on whatever environment is out there. we've been working to lower our footprint in greenhouse gases over the last 20 years. we made a lot of progress there. it's interesting. where the price of energy is today, you can say whether it's gone up or gone down. where it is today means biotechnology and the conversation of cellulose into higher materials, there's tremendous opportunity. think of the way dupont was created in the last century. by using hydrocarbons and converting them to higher order materials, in this century, it is about enzymes and the conversion of cellulose. i think there's tremendous opportunity, making polymers our business. if you were to talk to the president of our polymers business today, what she would tell you is that in 15 years, 50% of her revenue will come
6:19 pm
from renewably sourced polymers and that's a growing market for us. >> where you are right now, when you look around, how much is basic, how much is applied, how much do you think will be a additive to earns. looking around you how much is 2016 share from that plant? >> oh, you know, we don't good out that far and publicly talk about our earnings per share. i can tell you one thing, it's going to be measurable on the top line and measurable on the bottom line. we sell over a billion dollars in enzymes today in very real applications. that's one of our fastest growing units. i think you're going to be very excited. cellulosic enzyme plant is being constructed right now. we'll bring it up in the latter part of '14 and our first revenues in 2015. i think you're seeing measurable impact from that technology in the next five years. >> now, you've been vocal about
6:20 pm
how when i'm on the calls -- i have to tell you, i'm on your conference call and you've got these things that are very exciting to me and i think very exciting to our viewers, at the same time the discussion reverts to the most basic chemical on earth, whitener, 202. you said, listen, you think it's an exceptional business but don't like volatility. how is that in keeping with the scientific nature of a company solving the world's problems for 2020? >> it's interesting. we get a lot of questions around ti 02. if you think about how science differentiates us there, the science around the manufacturing process technology which enables us to run ti 02 plants the most advanced and lowest cost in the world. so even though it is a classic commodity chemical, even at the depth of the cycle, we make more than our cost of capital. the average over the cycle, it's a strong performer and strong
6:21 pm
catch generator for our company. the volatility is a concern. it's something we have to watch closely as we come through this cycle we're going through right now. but that is one where manufacturing process technology really gives us an edge in that marketplace. >> listen, i want to understand how you work and how dupont works, ellen. you pick up the paper and the ama says, the issue is obesity. you lesson to the president today, he says the issue is sustainability. we look at what's going on in terms of trying to protect our first responders. the issue is making it so they are safer. when you go to a meeting with your staff, do you say -- do you put up an article that says obesity, we're going to solve it. or do you say we're going to solve this problem. is it each meeting more scientists presenting what they can do and you figure out how to harness that for shareholders? >> you know, jim, the way i think, i start with the customer and bring it back to the company. because if the science we're
6:22 pm
working on isn't relevant to helping our customers succeed and to create great opportunity for them, we're not going to be successful. so those conversations don't start with the newspaper or scientists, they start with the customer. so i'm sitting here in des moines. i've got five major customers from around the world here at our tech con, our annual convention for science engineers and marketers. these five customers each are presenting to our scientists and engineers what their greatest needs are in areas like agriculture. in areas like advanced materials for transportation. in areas like food and nutrition. we're listening directly to them. their chief technology officers, heads of marketing, their ceos. they are sharing with us how our science, what we should be working and focusing our science on to help them succeed. that's really how you create the great engine of innovation.
6:23 pm
it has to be solely focused on the customer to help make them more successful. >> makes all the sense in the world, absolutely right. i can see. that's why the shareholders ultimately benefit because you understand who the company is solving the problems for. instead of being, well, this is something the world needs. you've actually got the people who pay the bills and you're answering what they want. >> exactly right. at the end of the day, our shareholders want us to continue to grow our top line generating higher returns in cash and enabling them to share in that cash. our innovation engine, research and development, our execution is focused on really delivering that value. >> ellen, thank you so much for coming to us from your research center. best of luck to dupont and what you're doing. ellen kullman chair and ceo of dupont. thank you for coming on "mad money." >> thank you, jim. >> you understand my trust on this stock, they are solving customer problems which makes a lot of money for shareholders.
6:24 pm
by the way, okay, if they save the world, nothing wrong with that either. after the break, i'll try to make you more money. coming up, the natural alternative, it's clean, it's cheap, and it's newfound abundance beneath our feet is leading america's march toward independence. cramer reveals nat gas players that could fuel for years to come.
6:27 pm
hallelujah! sometimes good news is actually just good news. micro economic data, wow, better than expected consumer goods, higher home prices. flip side of rising interest rates coin, it's doing better, maybe much better than expected. that's why it's invest in america this week. focusing on stocks of companies do very well and an environment where the company is improving. why is the u.s. economy doing better than the rest of the world. there's an element of american exceptionalism. we have discovered an exceptional amount of new oil and gas in this country over the last several years. really only the last three. that's right. we're having an energy renaissance, i mispronounce it like that because i heard it on pbs. energy resonance and cheap power could lead to a major industrial
6:28 pm
boom, moving back to this country for our cheap oil, yes, it hasn't all happened yet. that's all hype. maybe it will. haven't seen it yet. last night i told you about favorite oil plays, now natural gas. i'm in favor as cheaper bridge fuel to the future. in fact, we've discovered so much new gas, the amount of supplies created an environment for almost perfectly namie low prices where we burn offer or flaring more natural gas than we use, which is a big reason so many utilities switch from coal to natural gas. epa's hatred of coal played into that. president obama didn't hit that. a key driver of growth and prosperity. what we really care about on "mad money," how can you profit from it? >> first and foremost we have so much natural gas unless the government gets it's act together for service vehicles don't hold your breath, we can't possibly use it ourselves. natural gas prices the world
6:29 pm
over are much much higher in the united states except for the middle east. as for today a million british thermal units btus sells for $3.69, europe $10. china, japan, 14 smackers. the thing you need to know, remember about natural gas, unlike oil it's not a global market. the only way to cheaply transform nat gas, and it's not that cheap, is a pipeline. but it still works. if you want to ship it overseas you need to transfer to a contact liquid firm, what's known as liquefied natural gas, infrastructure that requires lots to build and billions of dollars, enter lng. they are in the process of the first new liquefied natural gas airport terminal in decades. the terminal in louisiana will be up and running in just a couple of years. at which point they will practically be coining money. the company is waiting for a second facility near corpus
6:30 pm
christi, texas. however, changing my view here. i think the right way to play this is not right here with lng but through the partnership i previously did not like, their partner cqp. i used to like it in single digit but haven't here. mlp at death's door like lime, energy, are coming back to life. cheniere has gotten hit, stock down 70% at the end of the day. a toll road collector. think of it as new jersey turnpike for lng or terminal. generally speaking should be less risky than parent, which is more of a growth vehicle. especially since c quch p has come down. with this recent decline, weak hands shake out and now time to buy because i don't expect ten-year to challenge. next up how about a company that produces natural gas. you want to own the company with
6:31 pm
the best acreage. that's why i'm partial to one of the previous year's energies, a natural oil production company focused on marsalis shale, with an oil company in texas. cabot is among the most efficient with the best acreage. 200 in susquehanna county. natural gas isn't so high, not now. the growth is enough to generate terrific earnings. when they posted an incredible 50% increase in production, per year production costs decline by 50%, even though the stock nearly doubled over the last 12 months, it's still only selling 27 times next year's earns with 35% grot rate. to me this fabulous operator has time to run. gets stronger, they could work. especially being built from marcellus to energy star of new york and recently announced this
6:32 pm
week new england. they import the stuff all over the world. not much when that gets there. also a play on one of my favorite angles to this story, use of natural gas for service vehicles. right now right here i think it's coming, cmi number one truckmaker natural gas engines, stock is down 12 bucks since the end of may on worries of chinese weakness, major market for cummins. you can start to buy the stock into weakness especially after the positive noise we heard from chinese central bank. i love how ceo came on "squawk box" this morning how they are using vehicles to replace dirty, imported diesel. yes, the times they are, indeed, changing. if china is down cup inside will be down again. right now united states is in the middle of natural gas revolution, best way to play cheniere, and cummins for nat gas vehicles. one day many companies will
6:33 pm
respond to this revolution. right now it's just hype. but these three will have to do the job as the plays on cleaner, cheaper domestic fuel that is natural gas. stewart in new york. stewart. >> caller: mr. cramer, you're the savior for the people. >> sure trying. the people united will never be defeated. go ahead. >> caller: you have given a great dissertation on high priced energy stocks on eog. >> yes. >> caller: but with mr. bernanke taking away our interest from our savings account, some of us have to look to the smaller energy plays like ultrapetroleum or rex energy or something on those order. >> right. >> caller: i wonder if you can discuss small energy plays. >> too risky. ultrain the dumps because it's nat gas play. if you want nat gas you have to go capital on gas. eog as oil play is doing incredibly well. i want less risk now. you don't have to pay that much
6:34 pm
to get really high companies after this selloff. i thank you for the kind words about me. go to mary jane in california. mary jane. >> caller: yes, i'm here. >> i am, too. what's up? >> san diego. >> okay. you beat the phillies last night. congratulations. >> i bought conocophillips a month ago. it's just gone down, down, down since. i heard you yesterday when you spoke about other energy stocks, and you never mentioned conocophillips. a week before you praised a very finely run company. >> right. >> you mentioned the fact that six weeks ago, in fact, i sold a bunch of stocks, including your favorite, bristol-myers. >> well, mary jane, yesterday's piece was about oil. conoco, while it is a big
6:35 pm
producer of oil is a huge natural gas play. that's why i did not include it in that group. conoco is a very good stock. it has come down a lot. i think it is a buy. the reason why i focused on oil, i focused on oil yesterday, today was nat gas, conoco is neither pure play. it does have natural gas and a pure stock, good buy. liquefied natural gas, revolution in natural gas, making your country more competitive. you hear companies involved in it that aren't. i've got chen ear, cabot and cummins and they are. don't move. >> tomorrow kick off the trading day with "squawk on the street." live from post 9 at the nyse. >> when everything is right, when everything is wrong, everything is up for grabs. >> it all starts at 9:00 a.m. eastern. we're cracking down on medicare fraud.
6:36 pm
the healthcare law gives us powerful tools to fight it... to investigate it... ...prosecute it... and stop criminals. our senior medicare patrol volunteers... are teaching seniors across the country... ...to stop, spot, and report fraud. you can help. guard your medicare card. don't give out your card number over the phone. call to report any suspected fraud.
6:37 pm
we're cracking down on medicare fraud. let's make medicare stronger for all of us. if you have high cholesterol, here's some information that may be worth looking into. in a clinical trial versus lipitor, crestor got more high-risk patients' bad cholesterol to a goal of under 100. getting to goal is important, especially if you have high cholesterol plus any of these risk factors because you could be at increased risk
6:38 pm
for plaque buildup in your arteries over time. and that's why when diet and exercise alone aren't enough to lower cholesterol i prescribe crestor. [ female announcer ] crestor is not right for everyone. like people with liver disease or women who are nursing, pregnant or may become pregnant. tell your doctor about other medicines you're taking. call your doctor right away if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. these could be signs of rare but serious side effects. is your cholesterol at goal? ask your doctor about crestor. [ female announcer ] if you can't afford your medication, astrazeneca may be able to help. it is time for the lightning round.
6:39 pm
are you ready? lightning round. want to start with kent in colorado. kent. >> caller: a big, hardy mile high boo-yah, jim, from denver, colorado, my stock realty in come corp. >> more than 5. if they go down to 5% i pull the the trigger. lets go to al in new jersey. al. >> caller: hey, boo-yah from new jersey. >> thank you, boo-yah back. >> caller: listen, i read your book. i want to ask you quick, what's your feelings about amazon. >> amazon is like solar city, a cold stock. i don't get in front of the cold stock. i love the product and for a lot of people that's enough. that's how i'm going to explain amazon these days at $270. william in florida. william. >> caller: yeah, boo-yah from the heat city. >> you did win it all.
6:40 pm
>> caller: i was listening to the ceo, i like what i heard. i pot shares at 28. what do i do now. >> he's got to come back on. they did that secondary and it was just hideous. you know, honestly, he's got to come back on. he didn't say there would be no equity offer but holy cow. that was a bad one. i'd like to know more myself. fair enough? lets go to christopher in california. >> caller: boo-yah from california. >> nearby. >> nearby. so i'm asking about avoid, a health care partner, symbol dva. >> classic health care company i like. i think it's terrific. davita. lets go to issa in new york. >> caller: boo-yah, jim, calling
6:41 pm
from riverdale, new york. talk about trane incorporated. >> not going to recommend that. recommended it, not going back. chris. >> caller: how are you? >> i'm great. how about you? >> caller: i'm doing pretty good. thank you for having me on the show. i appreciate it. >> thanks for calling and staying on that line so long. what's up. >> caller: something to ask you about amtg. >> i don't like residential mortgage reits. they don't yield. i don't understand how they make their money if the curve keeps changing every day. too darn hard. i'm going to gabby. >> caller: boo-yah, cramer. >> boo-yah, gabby. >> caller: my daddy and i read your book, and i've got to shares of disney, should i buy, sell or hold? >> is your dad there? dad? >> no, mom is here. >> just make sure buy, sell, sold disney. the answer is buy.
6:42 pm
double down. that, ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. [ kitt ] you know what's impressive?
6:43 pm
a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪
6:44 pm
the act of soaring across an ocean in a three-hundred-ton rocket doesn't raise as much as an eyebrow for these veterans of the sky. however, seeing this little beauty over international waters is enough to bring a traveler to tears. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.
6:45 pm
now debated for a couple of minutes we need to use this moment of calm to ask this question, we know the market is pole axed. what companies benefit from higher rates. banks? it's so important it's worth repeating, especially on a day like today where panic seems to be exciting and much easier to be constructive and not poly annaish. regional banks are there. they are at the top of the list. i feel like empiricaly we're in the right spot. something so powerful, the stock market was able to recognize it, and action. off the charge. this guy is a smart technician, senior strategist explosion options.net. spend minutes with him and think
6:46 pm
he's electric, my colleague from real money.com. we want to take a close leer at strength of regional banks he arrived at independently of my work. before we get to that, let me take a moment to skpan why this has become more entire theme. right now everyone living in fire of rising interest rates. everyone is worried expect the regional bankers. some stocks tend to ultimately rally when rates are higher. thinking old school tech names they are working. regional banks are better than that. they on an earnings per share basis directly benefit. you can raise numbers for a lot of regional banes. the main way these banks make their money off the spread between the rate they pay you for your deposits, i should say meager rate and the return they can earn risk-free from investors, riskier. they can give you a loan, charge
6:47 pm
awe lot. yield from freshry shot up, a monumental move. 2.64. the rates for certificate of deposit, what are they during this period? none. barely moved. with interest rates on the rise like this every morning when regional bankers come bo work they are coining money. more and more by turning the lights on and collecting the spread. it's especially the case of five-year treasury making double the money on that note they were paying for you to your five-year cds. cd rates are unchanged. they are not raising them. they are taking that money, investing it big time and giving a low cd. according to our super smart technician, the charts here are looking terrific. i think it's because of that cd activity. take a look at the chart, krs. that attracts kwb, okay. regional banking. in other words, big money, citigroup is not in this. this is now one of the best performing exchange trades of 2013 even after the stock market's recent selloff. reignal bank index above all moving average, 50, well above it,
6:48 pm
that's nights. continues to make higher highs and higher lows. that's a beautiful chart. it's totally intact. check out moving average convergence line at the bottom. the mack d. hedge fund manager we talk about endlessly, use it to detect change in the way the market is headed. remember, it's up, up, up. the red is up. i've got to tell you something. that is a beautiful macd. how about regional banks. weekly charge of regions financial. not my favorite. not my favorite. according, this is a spectacular looking charge. regions rallied 200% since september 2011 lows and has much more room to run as the stock makes higher highs and lower lows. williams percentage, oscillator at the bottom of the chart. another one we talked about. this developed by a commodity
6:49 pm
trader named larry williams. similar to the oscillator we talk about, used whether it's overbought or oversold. regions has been in overbought practically since the beginning of the year. normally that would cause it to pull back, thinks it's simply remarkable strength. typically an oversold rally, overbought, send it down. some stocks stay because they are so loved. look at this thing, not near support levels. look at regions financial daily chart. there's something here. during the broad selloff during the last month and a half regions held up extremely well. remember, we've just gotten killed. look at this thing. a huge climb. it didn't go down. lang is saying there aren't many sellers in this stock, even in the incredible fireworks. more important, investors are actually accumulating the darn thing in the down days. if regions can do this well when the market is killed, can you
6:50 pm
please along with me imagine how it can rally. thinks they could be headed to $12. i will take that gain, ladies and gentlemen. the aggressive buyer if the stock pulls back at all to the blue line, the 50 day. i don't know. i don't know if it's going to get there. maybe if interest rates go up to 3% on the ten-year. next up, take a gander weekly chart, one of my absolute favorites. key corp., key. charitable trust owns it. look at this. would you know from this chart that the market just got crushed? would you know this? no. this is another stock that held up well during the pullback. we see a pattern of higher highs and higher lows. nirvana, ladies and gentlemen. very much likes there's been big surges in volume all year. in all these uptick the volume is big. in regions this is a side that the big institutional investors are buying. a key on a pullback, everyone
6:51 pm
wants a pullback to ten bucks. strong support there. that may not be likely, spbl when see the stock trading to $12 by the end of the year. last but not least, hban. that's what we call huntington banks. another favorite had a fabulous year when you check out the weekly stock. look at this. tremendous strength to banks in general. thinks it's drawing in big institutional buyers something we can see from robust buying as the stock went higher. nice buy. huntington has a powerful floor of support at 7 1/2, roughly 3% apolo where it was. just today broke out above its ceiling of resistance. most stocks thrown back by their resistan resistance, not hban. here is the bottom line. rising interest rates are not bad for the stock market. some like regions banks in the
6:52 pm
earnings per share basis, not a psychological thing from higher rates. based on interpretation of the charts, key corp. and huntington bank should rally hard because of the new rate environment. i think they are right. making the exact same bet. i think it's going to work and work big for the rest of the year. "mad money" back after the break. (announcer) at scottrade, our clients trade and invest
6:53 pm
exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. humans. even when we cross our "ts" and dot our "i's",
6:54 pm
we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, the repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? where are all the sellers
6:55 pm
today? where did they go? what happened to highly motivated sellers at the close, the ones that drove us down hideously at the bell. what were they scared about? the kind of move where it looks like all the sellers have been washed out. just when it feels like they petered out they came back again at the hideous close. we're at a perilous moment. every single market worldwide has a shot at breaking down on any given day. look at this. tremendous instability in japan right from the top. an amazing week in australia given its commodity-based economy, ecofriendly government. china, all i can do is quote the beatles, you say you want a ref luge, i think they do. they are tired of nothing seeing their feet because of pollution, oppression. meanwhile pmi below 50, slow down. 2008 to 2009 financial washout might be on the table. sorry, china not looking like
6:56 pm
that strong will lookinging like a paper tiger. indonesia built up stock markets outside to grow, hot money coming out rapidly. classic hot spots no one paying attention to. thailand, what can i say, will i learn? europe, gotten bad again, recognition no growth to speak of. while things may have bottomed out they haven't fixed the banks. plus france is the worst government on earth. spain -- of the developed countries. unlike spain and italy doesn't get it at all, backwards to labor perform. everything that moves, seems like the country is having stagflation. latin america the streets, let memorial meet olympics and world cup style of infrastructure. no one knows what a new government in brazil would look like. this is the height of instability. a man has tentacles everywhere. economic miracle that is mexico
6:57 pm
is totally falling apart, too. have you seen that etf, in free fall. consider the backdrop you can't blame anyone from panicking the last hour, betting one powder keg would go off. they didn't. ten-year settling down. what i can say to everyone who sold yesterday afternoon is hey, buddy, did you ever get it wrong. stay with cramer. [ male announcer ] we've been conditioned
6:58 pm
to accept less and less in the name of style and sophistication. but to us, less isn't more. more is more. abundant space, available leading-edge technology, impeccable design, and more than you've come to expect from a luxury vehicle. the lexus es350 and epa-estimated 40 mpg es hybrid. this is the pursuit of perfection. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪
7:00 pm
hey, good day. enjoy it while it lasts. always more right here on "mad money." i'm jim cramer, i'll see you tomorrow. hot housing. can it carry the economy? case shiller today up 12% year over year, and to tell us if it's all real we have a special guest from the hit bravo tv show "million dollar listing" and it sounds like president obama launched a war on coal today. that's a sure fire job cutter and cost increase for america, and what happens to the keystone pipeline? no decision. senator joe manchin will join us live to give us his take on the shape and russia thumbs their nose at turning over eric
168 Views
IN COLLECTIONS
CNBCUploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=1547884134)