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tv   Mad Money  CNBC  April 1, 2016 6:00pm-7:01pm EDT

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expired. i'm melissa lee. meantime, see you back here next friday for my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you some money. my job is not just to entertain you, but to educate you. so call me at 1-800-743-cnbc or tweet me @jimcramer. you need to try to make money from everything that gets thrown at you. today was the non-foreign labor
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report. which first sent the market down, and then upon further review, made it roar back to life. dow ultimately gaining 108 points, s&p advancing 0.6%. nasdaq 0.92%. wow! so how do you play something as dry and convoluted as the labor department's release? simple, you look at outsized gains in certain segments of the report and you extrapolate. which ones showed truly outstanding growth? first there was construction. the economy added 30,000 construction jobs in march, with the heaviest concentration in residential specialty trade. second, retail, which added 48,000 jobs. the biggest gains besides general merchandise, 10,000 new jobs in building and materials and garden supply stores. bingo! >> hallelujah! >> you have your payoff. by home depot. it dovetails perfectly with the release.
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now, we know home depot said it was hiring more than 80,000 people for the spring selling season. that's the big holiday. so, profit point number one is hd, which is not, coincidentally, breaking out here. second, how about lumber, appliances, and tools, which are huge sellers. there's wirehouser, whirlpool, and stanley black and dercker, which is the tool play. it's been so strong, we've had to trim it back from our charitable trust, which you can follow at actionsalerts.com. and employment and health care increased by 37,000, with hospitals doing the hiring. i want you to think amn health care! the staffing service for those jobs. it's three points off its high. i bet it breaks out. finally, the release dates employment continued to trend up in food services and drinking places. if that's the case, go with cisco, the syy.
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the food supplier to restaurants, and to darden, the parent of olive garden, which happens to report next week. i think it will be an excellent quarter. you do the homework on the companies, and then when you get the release, you'll know the profit points. that's how calculated risk plays out. and money can be made. with that in mind, let's get right along with our game plan for next week. first on monday, we're going to get the big read on how many orders to work for the new tesla model 3. earlier reports signal that about 193,000 people signed up for the car, in just the first 24 hours. which means given current production rates, you'll be lucky to get one in a couple of years. but this stock does trade on orders. look out if you get another 100,000 orders over the week. this shows this $35,000 car may be the hit that tesla's been looking for. stocks stopped their resistance today, it would break out if he wit that number. more pedestrian, we've got durable goods out at 10:00 a.m. the weak part of today's otherwise fairly strong employment report was
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manufacturing. this is where we've been losing out to foreign competition. look at how boeing's fairing versus the weak euro-backed aerobus. be prepared for political hay being made on this one. tuesday darden reports at the open. and i think this chain revamped by that new board of directors put in by dissidence for starboard value, will report an excellent number, buoyed by olive garden same-store sales. i want to hear what they have to say about raw costs coming down, but also about minimum wages going up. be careful, there's been an odd pattern with darden stock as of late. it tends to jump too high at the opening and it comes in as enthusiasm cools. so i say if you like the quarter, hold off buying until mid-morning. my charitable trust is big position walgreens. so big we have to pare it back, so a good earnings report on tuesday. i've got to tell you, i don't like that when that happens. i don't like this kind of running into the quarter. so i want you to be a tad
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circumspect. and remember, we also want to hear about how it's fueled by riteaid is progressing. coincidentally, riteaid itself reports thursday, and i don't want this to drag on that it will be halted by the furious back and forth behind the scenes about which stores will close, who will move on. that creates sloppiness in a chain. we've got two huge analyst meetings tuesday and both will move their stocks respectively. the first is nvidia. and i bet this will have a fabulous story to tell. it's been a cramer fave. the second is first solar. and deutsche bank research put out a curious note today, saying that it expects first solar, maybe that they can't make the numbers. maybe to just temper the enthusiasm. i don't know. first solar is the best solar company out there. however, i've seen the stock trade wildly off these meetings in the past. deutsche knocked down my short-term enthusiasm by a peg. but, longer term, i think first solar is best in show. and fit really does get it, i might urge you to do some
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buying. another hot stock, constellation brands reports wednesday morning. this is a tricky one. not unlike darden, where the earnings have been very strong because of terrific sales from corona, the double-digit mexican beers that constellation sells in the u.s. but then the buyers bid the stocks up too high, and then it comes down. wait for a better price if you like these numbers. very few stories have been as beaten around the pipe amazon like bed bath and beyond wrp the couponing is heavy and the sales are light. much of which bed and bath sales can be bought at amazon and delivered quite quickly. you may not have the appetite for the stores you once did, although i still go to harmon for my toiletries, even as the wife goes on amazon for same-day delivery of the stuff. however, one thing's certain, bed bath's management has a huge appetite for its own stock. that's why i stayed close to the number of shares is bought back, because one day this darn thing
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is probably going to go private if the same-store sales ever stabilize. have you noticed some of the way these consumer packaged goods stocks, including general mills, smuckers, hormel and, geez, campbell's soup, you see them roaring higher? how about conagra, now that it's gotten rid of that hapless private label business, although it's been anything but hapless now that they're under the roof of tree house, which has a stock i adore. can conagra join the ever-growing parade of food stocks doing well? i don't know. we'll find out thursday. i'm a tad worried about sales from tesla, as ford and general motors had lighter than expected numbers when they reported today. what will car max tell us when they report. the stock looks like it's bottomed, but let's see first if it's a false breakout. usually i don't care about shareholder meetings, but on friday, we could have some sort of fireworks when marriotts tallies the votes on its plan toll buy starwood.
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the ambac suddenly and unequivocally dropped out last night. and we had to think in the end that marriott got bluffed into paying a lot more -- marriott got bluffed into paying a lot more than anyone at the company would have liked. but, you know what? i still think the combination could work at these prices, but we might get blowback. marriott stock down horribly today. so ever since janet yellen removed the fed from the equation with her need for caution on rate hike speech, we've been able to invest in individual stocks without bizarre, discordant, off-message fed voices disrupting our thinking. keep that in mind, as an awful lot of good companies are object to report in a week, where there's time to catch your breath before earnings season. i see ones i like. you know them and i would be a buyer in any market weakness. we're now going to go to the president, who's speaking at the conclusion of the nuclear securities summit in washington, d.c. >> these summits, in another six years, i want to thank everyone who participated in our
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meetings, and more than 50 leaders from every region of the world, and key international organizations. as at our previous summits, we didn't just come here to talk, but we came here to act. i know that the very technical nature of nuclear security doesn't always make for flashingy headlines, but over the past six years, we have made significant, meaningful progress in securing the world's nuclear materials, so that it never falls into thane hands of terrorists. and i want to take a few moments to step back and lay out exactly what we have accomplished. together, we have removed the world's most deadly materials from nuclear facilities around the world, with japan's announcement today, we've now removed or secured all the highly enriched uranium and plutonium for more than 50 facilities in 30 countries. more than 3.8 tons, which is more than enough to create 150
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nuclear weapons. that's material that will never fall into the hands of terrorists. 14 nations and taiwan, countries as diverse as argentina and chile to libya and turkey and serbia to vietnam have now rid themselves entirely of highly enriched uranium and plutonium. and particularly i want to point out again that successfully removing all of ukraine's highly enriched uranium four years ago meant that the very difficult situation in ukraine over the past two years was not made even more dangerous by the presence of these materials. as of today, south america, an entire continent, is free of these dangerous materials. when poland completes its removal this year, central europe will be free of them as well. when indonesia completes its work this year, so will all of southeast asia. in other words, as terrorists and criminal gangs and arms
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merchants look around for deadly ingredients for a nuclear device, vast regions of the world are now offlimits. and that is a remarkable achievement. we've made important progress in the united states as well. in addition to new steps i announced this morning, we've improved nuclear security and training. we've consolidated nuclear materials at fewer facilities, eliminated some 138 tons of our surplus highly enriched uranium, which would be enough for 5,500 nuclear weapons. working with russia, we're on track to eliminate enough russian highly enriched uranium for about 20,000 nuclear weapons, which we are converting to electricity here in the united states. more specifically, as a result of these summits, every single one of the more than 50 nations represented here have taken concrete steps to enhance security at their nuclear facilities and storage sites, and that includes improved physical security, stronger regulations, abiding by
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international guidelines, greater transparency, and that includes international peer reviews. 14 new centers have been created around the world to promote nuclear security and training and to share best practices. and as part of our work today, we agreed to keep strengthening our nuclear facility's defenses against cyberattacks. we've bolstered international efforts to disrupt nuclear smuggling and the proliferation security exercise has improved. the united states and 36 partner countries have worked to install radiation detection equipment at more than 300 international border crossings, airports, and ports, and we are developing new mobile detection systems as well. and finally, as i noted this morning, we've strengthened the treaties and international partnerships that are a foundation for so many of our efforts.
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again, we have made significant progress and everyone involved in this work, especially our teams who have worked tirelessly for years, can take enormous pride in our achievements. nevertheless, as i said earlier, our work is by no means finished there's a great deal of nuclear and radioactive material around the world that needs to be secured. global stocks of plutonium are growing. nuclear arsenals are expanding in some countries, with more small tactical weapons, which could be a greater risk of theft, and as a consequence, one of the central goals of this summit was how do we build on the work that has been done so that we have an international architecture that can continue the efforts, even though this is the last formal leader's summit. so even as this is the last of those leader-level summits, today we agreed to maintainchit
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through the united nations with, the international atomic energy agency, and interpol, to carry on this work, and to provide the resources and technical support that is needed to continue this mission. and we are creating a new nuclear security contact group, senior level experts, from more than 30 of our countries who will meet regularly to preserve the networks of cooperation we've built and to institutionalize this work and to keep driving progress for years to come. at our session on isil this afternoon, there was widespread agreement that defeating terrorist groups like isil requires more information sharing. everyone understanding the urgency in the wake of what's happened in brussels and turkey, pakistan, and so many other countries around the world, as a consequence, our director of national intelligence, jim clapper, is continuing to engage with intelligence leaders from a number of our european partners on deepening our cooperation, and today i invited all the nation's represented at this summit to join a broader
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discussion among our intelligence and security services, on how we can improve information sharing within and among our nations, to prevent all manner of terrorist attacks, especially those that might involve weapons of mass destruction. in closing, i just want to say that preventing nuclear terrorism is one part of the broader agenda that i outlined seven years ago in prague. stopping the spread of nuclear weapons and seeking a world without them. in recent days, there's been no shortage of analysis on whether we've achieved our vision, and i'm the first to acknowledge the great deal of work that remains, from negotiating further reductions with russia to dealing with north korea's nuclear program. as i indicated in prague, realizing our vision will not happen quickly and it perhaps will not happen in my lifetime, but we've begun. the united states and russian nuclear arsenals are on track to
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be the lowest that they have been in six decades. i've reduced the number of and role of nuclear weapons in our nuclear security strategy. in an historic deal, we've prevented the spread of the nuclear weapons to iran. an international fuel bank is being built to promote civil nuclear cooperation. so i'm extremely proud of our record across the board and we're going to keep pushing forward, wherefore we can, as i hope future administrations do, to bring us closer to the day when these nuclear dangers no longer hang over the heads of our children and our grandchildren. with that, let me take a few questions and i'm going to start with roberta rampton of reuters. >> thank you. i want to ask about iran. and three weeks ago, iran's supreme leader complained that his country has not been getting actual business deals since the nuclear agreement. and non-u.s. companies are saying that it's very hard or
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sometimes impossible to do much business with iran, without at some point, accessing the u.s. financial system to do u.s. dollar denominated transactions. so my question is, are you considering allowing such transactions? and if so, is that not a betrayal of your assurances that most u.s. sanctions would stay in place? >> that's not actual the approach that we're taking. so, let me say, broadly, that so long as iran is carrying out its end of the bargain, we think it's important for the world community to carry out our end of the bargain. they have, in fact, based on the presentations that were made by the iaea this morning, to the p 5 plus 1, have, in fact, followed the implementation steps that were laid out. and as a consequence, sanctions related to their nuclear program
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have been brought down. part of the challenge that they face is that companies haven't been doing business there for a long time and they need to get comfortable with the prospects of this deal holding. one of the things that secretary lou and his counterparts within the p 5 plus 1 and elsewhere are going to be doing is providing clarity to businesses about what transactions are, in fact, allowed. and it's going to take time over the next several months, for companies and their legal departments to feel confident that, in fact, there may not be risks of liability, the they do business with iran. and so some of the concerns that iran has expressed, we are going to work with them to address. it is not necessary that we take the approach of them going through dollar denominated
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transactions. it is possible for them to work through european financial institutions, as well. but, there is going to need to be continued clarification provided to businesses in order to -- for deal flows to begin. now, what i would say is also important is iran's own behavior, in generating confidence that iran's a safe place to do business. you know, in a deal like this, my first priority, my first concern was make sugar that we got their nuclear programs stopped and material that they already had, that would give them a very short breakout capacity, that that was shipped out. that has happened. and i always said that i could not promise that iran would take advantage of this opportunity and this window, to reenter the
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international community. iran, so far, has followed the letter of the agreement. but the spirit of the agreement involves iran also sending signals to the world community and businesses that it is not going to be engaging in a range of provocative actions that might scare business off. when they launch ballistic missiles, with slogans calling for the destruction of israel, that makes businesses nervous. there is some geopolitical risk that is height nened when they e that taking place. if iran continues to ship missiles to hezbollah, that gets businesses nervous. so part of what i hope happens is we have a responsibility to provide clarity about the rules that govern, so that iran can, in fact, benefit t-- the irania people can benefit from an
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improved economic situation. but iran has to understand where every country in the world understands. which is that business wants to go where they feel safe, where they don't see massive controversy. where they can be confident that transactions are going to operate normally. and that's an adjustment that iran's going to have to make as well. and frankly, within iran, i suspect there are different views, in the same way that there are hardliners here in the united states who even after we certify that this deal is working, even after our intelligence teams, israeliteams been a game changer, are still opposed to the deal on principle. there are hardliners inside of iran who don't want to see iran open itself up to the broader world community. and are doing things to
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potentially undermine the deal. and so, those forces that seek the benefits of the deal, not just in narrow terms, but more broadly, we want to make sure that over time, they're in a position to realize those benefits. david nakomoro? >> thank you, mr. president. as you said, you just finished a meeting with 50 world leadering about combatting terrorism. i want to ask you about one of the strategies your administration is using in that effort. in the past several weeks, your administration has killed well over 200 people in air strikes in somalia, libya, and yemen, according to the department of defense. how can you be certain that all of the people killed pose an imminent threat to the united states? and why is the united states now killing scores s of people at a
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sometime rather than eliminating people in very targeted strikes? thank you. >> you know, we have constructed a fairly rigid and vigorous set of criteria for us evaluating the intelligence that we receive about isil, where it might be operating, where al qaeda is operating. these guidelines involve a whole range of agencies, consulting, extensively, and are then checked, double-checked, triple-checked before kinetic actions are taken. and for the most part. our actions are directed at high-value targets in the countries that you just described. outside of the theater of iraq and syria. in some cases, what we're seeing are camps that after long
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periods of monitoring, becomes clear are involved in and directing plots that could do the united states harm or are supporting isil activities or al qaeda activities elsewhere in the world. so, if after a long period of observation, we are seeing that, in fact, explosive materials are being loaded on to trucks and individuals are engaging in training in small arms and there are some of those individuals who are identified as couriers for isil or al qaeda, then, based on those evaluations, a strike will be taken. but what we have been very cautious about is making sure that we are not taking strikes
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in situations where, for example, we think there's the presence of women or children. or if it is a normally populated area. and, you know, recently we laid out the criteria by which we're making these decisions. we declassified many elements of this. we are going to be putting forward and try to institutionalize on a regular basis how we make these evaluations and these analyses. you know, i think in terms of the broader debate that's taken place, david, i think there's been, in the past, legitimate criticism that the architecture, the legal architecture around the use of drone strikes or other kinetic strikes wasn't precise as it should have been, and there's no doubt that
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civilians were killed that shouldn't have been. i think that over the last several years, we have worked very hard to avoid and prevent those kinds of tragedies from taking place. in situations of war, we have to take responsibility when we're not acting appropriately, or where we've just made mistakes, even with the best of intentions, and that's what we're going to continue to try to do. and what i can say with great confidence is that our operating procedures are as rigorous as they have ever been, and that there is a constant evaluation of precisely what we do. carol lee? >> thank you, mr. president. you've spent seven years, now, working on nonproliferation issues and you said in your
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opening remarks that you open the future administrations do the same and make it a priority. this week, one of the republican front-runner to replace you said that perhaps south korea and japan should have nuclear weapons. and wouldn't rule out using nuclear weapons in europe. did that come up at this summit? and just, generally, what message does it send when a major party candidate is articulating such a reversal in u.s. foreign policy? and also, who did you vote for in the democratic primary? >> well, first of all, it's a secret ballot, isn't it? okay. no, i'm not going to tell you now. what do the statements you mentioned tell us? they tell us that the person who made the statements doesn't know much about foreign policy or nuclear policy or the korean
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peninsula or the world generally. it came up on the sidelines. i've said before that, you know, people pay attention to american elections. what we do is real important to the rest of the world. and even in those countries that are used to a carnival atmosphere in their own politics want sobriety and clarity when it comes to u.s. elections, because they understand the president of the united states needs to know what's going on around the world and has to put in place the kind of policies that lead not only to our security and prosperity, but will have an impact on everybody
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else's security and prosperity. our alliance with japan and the republic of korea are cornerstones of our presence in the asia pacific region. it has underwritten the peace and prosperity of that region. it has been an enormous boon to american commerce and american influence. and it has prevent ed the possibilities of a nuclear escalation and conflict between countries that in the past and throughout history have been engaged in hugely destructive conflicts and controversies.
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so you don't mess with that. it is an investment that rests on the sacrifices that our men and women made back if world war ii when they were fighting throughout the pacific. it is because of their sacrifices and the wisdom that american foreign policy makers showed after world war ii that we've been able to avoid catastrophe in those regions and we don't want somebody in the oval office who doesn't recognize how important that is. andrew beatty? >> thank you, mr. president. yesterday, you met with president erdogan of turkey, hours after some fairly ugly scenes at the brookings institution. i was wondering, do you consider him an authoritarian? >> turkey is a nato ally. it is an extraordinarily
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important partner in our fight against isil. it is a country with whom we have a long and strategic relationship with. and president erdogan is someone who i dealt with since i came into office. and in a whole range of areas, we've had a productive partnership. what's also true, and i have expressed this to him directly, it's no secret that there are some trends within turkey that i've been troubled with. i am a strong believer in freedom of the press. i'm a strong believer in freedom of religion. i'm a strong believer in rule of law. and democracy and there is no doubt that president erdogan has
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repeatedly been elected through a democratic process, but i think the approach they've been taking towards the press is one that could lead turkey down a path that would be very troubling. and, you know, we are going to continue to advise them to, and i've said to president erdogan, remind him, that he came into office, with a promise of democracy, and turkey has historically been a country in which deep islamic faith has lived side by side with modernity and an increasing openness, and that's the legacy that he should pursue, rather than a strategy that involves repression of information and
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shutting down democratic debate. having said that. i want to emphasize the degree to which their cooperation has been critical on a whole range of international and regional issues. and will continue to be. so as is true with a lot of our friends and partners, we work with them, we cooperate with them, and, we are appreciative of their efforts, and there are going to be some differences. and where there are differents, we will say so. and that's what i'm trying to do here. i'll take one last question. this young lady right there. >> thank you, president. mr. president, what do you think -- >> where are you from? >> i am from azerbaijan.
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how can i azerbaijan support in nuclear security and nuclear security issue? >> well, you know, azerbaijan, like many countries that participated, have already taken a number of steps and each country has put forward a national action plan. there are some countries that had stockpiles of highly enriched uranium that they agreed to get rid of. there are other countries that have civilian nuclear facilities, was don't necessarily have the best security practices. so they have adopted better security practices. there are countries that could potentially be transit points for the smuggling of nuclear materials. and so, they've worked with us on border controls and detection. and because of azerbaijan's
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location, it's a critical partner in this process. i should point out, by the way, that although the focus of these summits has been on securing nuclear materials and making sure they don't fall into the hands of terrorists, the relationships, the information sharing, the stitching together of domestic law enforcement, international law enforcement, intelligence, military agencies, both within countries and between countries, this set of relationships internationally, will be useful not just for nuclear material, but it is useful in preventing terrorism generally, it's useful in identifying threats of chemical
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weapons, or biological weapons. one of the clear messages coming out of this summit and our experiences over the last seven years is an increasing awareness that some of the most important threats that we face are transnational threats. and so we are slowly developing a web of relationships around the world that allow us to match and keep up with the transnational organizations that all too often are involved in terrorist activity, criminal activity, human trafficking, a whole range of, you know, issues that can ultimately do our citizens harm. and seeing the strengthening of these institutions, i think will be one of the most important legacies of this entire process. mark, since you had your hand up, i'll call on you one last
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time. >> thank you, mr. president. i wanted to ask a question about nuclear policy. through these past seven years, when you've pushed to rid the world of nuclear materials and fissile material, the u.s. nuclear industry has actually worked to improve miniaturization of warheads and while it's not developed new classes of cruise missiles or warheads, it's worked to improve the technology, and that's prompted some in china and russia to say, well, gee, we need to keep up. are you concerned that the technology advances in the united states have had the effect of sort of undermining some of the progress you've made on the prevention side? >> i think it's a legitimate question. and i am concerned. here's the balance that we've had to strike. we have a nuclear stockpile that we have to make sure is safe or
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make sure is reliable. and after the start treaty, the start-to treaty that we entered into in russia, we have brought down significantly the number of weapons that are active. but, we also have to make sure that they're up to date, that their command and control systems that might have been developed a while ago are up to snuff given all the technology that has changed since that time and we have to make sure that our deterrents continues to work. and so even as we brought down the number of weapons that we have, i have wanted to make sure that what we do retain functions. that it is not subject to a
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cyberintrusion. that there's sufficient confidence in the system that we don't create destabilizing activity. my preference would be to bring down further our nuclear arsenal. and after we completed start ii, i approached the russians, our team approached the russians, in terms of looking at a next phase for arms reductions. because mr. putin came into power, or returned to his office, as president, and because of the vision that he's been pursuing of emphasizing military might over development inside of russia and diversifying the economy, we would not have seen the kind of
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progress i would hope for from russia. the good news is that the possibilities of progress remain. we are abiding by start ii. we're seeing implementation and although we are not likely to see further reductions during my presidency, my hope is is that we have built the mechanisms and systems of verification and so forth that will allow us to continue to reduce them in the future. we do have to guard against, in the interim, ramping up new and more deadly and more effective systems that end up leading to a whole new escalation of the arms race. and in our modernization plan, i've tried to strike the proper balance, making sure that the triad and our systems work
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properly, that they're effective, but also to make sure that we are leaving the door open to further reductions in the future. but one of the challenges we're going to have here is that it is very difficult to see huge reductions in our nuclear arsenal, unless the united states and russia, as the two largest possessors of nuclear weapons, are prepared to lead the way. the other area where i think we immediate to see progress is pakistan and india, that subcontinent, making sure that as they develop military doctrines, that they are not continually moving in the wrong direction. and we have to take a look at the korean peninsula, because the dprk, north korea, is in a whole different category.
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and poses the most immediate set of concerns for all of us, one that we are working internationally to focus on and that's one of the reasons why we have the trilateral meeting, with japan and korea and it was a major topic of discussion with president xi as well. okay? thank you very much, everybody. have a good weekend. >> that's, obviously, president obama at a concluding press conference of a nuclear security summit in washington. let me bring in john harwood, our chief washington correspondent, for some wrap-up there. it was wide-ranging. he concluded on an answer about nuclear proliferation, saying that he was disappointed that he hadn't, that he and specifically russia, had not made more progress in reducing nuclear arsenals, but that he hoped that the groundwork had been set to enable the two countries to do so. he clearly, john, pointed a finger at mr. putin. he did say in conclusion there, that north korea remains the
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most immediate of the nuclear concerns. >> that's right. and that's the topic on which he, by the way, he took a shot at donald trump. you know, donald trump has made some statements during the campaign this week, saying that he thought it might be necessary for south korea and japan to take a greater role if their own defense, perhaps even with nuclear weapons. he also declined to absolutely rule out the use of nuclear weapons, should it be necessary in europe. and the president was asked about that, and he said, those statements showed that donald trump doesn't know much about foreign policy, about nuclear security, about the korean peninsula, or the world generally. and he had a longer riff about how the rest of the world's watching our campaign and expecting more sobriety than they're getting. but this concern about nuclear security, tyler, is something that has been a consistent threat throughout the president's tenure. and he's hoping that he's institutionalized a set of concerns and a set of meetings, including biliteral meetings
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with china that will outlast his administration. >> it certainly was true when he referenced mr. trump's statements, for 60 years, since the end of the second world war, the basic non-nuclear stance in those regions, south korea and japan, have served the world well. obviously, a destablingize threat because of the north koreans, clearly do have those weapons. another area he talked about was the danger of theft, and specifically, that isil, as he refers to them, could get their hands on nuclear material. >> that's right. and he talked about the transnational nature of that threat. he got a question from a jur journalist about azerbaijan, what would be the role of azerbaijan, which is not one of the world's larger nations on this stage, in this nuclear security effort, and what he
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said was that many nations can become transit points for stolen materials and that's why that the effort the president's undertaken has extended so broadly around the world and he ticked off the number of countries and facilities from which plutonium and enriched uranium had been taken and secured. and that's something that it's difficult to measure, the degree of success of programs like that, but that's, he's consistently stayed at it. >> let's bring in john greg valuier, veteran washington analyst, and not just market, but political watcher. greg, welcome, good to have you with us. why don't you pick up on the president's comments about the u.s. election and about mr. trump and his views of nuclear policy? >> this has been an extraordinary week, tyler. i think both trump and maybe to a certain extent, hillary clinton, showed some vulnerability this week. and i think for trump, as shocking as his comments were on
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abortion, i think his comments on southeast asia and nuclear power in europe and the nuclear bomb were just as shocking. and i think in this city, i think john would agree, in this city, there's real panic among republicans, when they hear stuff like this from trump, they realize what a total loose cannon and vulnerability he is for them in the fall >> john? >> there's no question, there's a tremendous amount of concern among mainstream republicans, which is why you see the stop-trump, never-trump movement. they think they've gotten some traction because of the statements donald trump made this week. ted cruz isn't much more popular among the establishment, but he's a lot more popular than donald trump is. >> greg, the idea of concern about how other people -- people in other countries are looking at the american election was an interesting side note. we've got about 30 seconds. >> sure. i think that's a growing anxiety around the world. i think people are mystified. real quick, i know we're going to wrap up.
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i saw a bunch of investors in texas, conservative republicans, they all said to me, john kasich, adult in the room. they're not crazy about cruz. they're terrified by trump. >> all right. gentleman, thank you very much greg valuier, we appreciate you being with us. john harwood, have a great weekend. we'll take a short break and "mad money" will pick up after this. er than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
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every night, i work to make
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this the most interactive show on television. sometimes i'll get a question i need to do some more research on before i give you my opinion. simply because anything else would be stock picking malpractice. so with that in mind, let's catch up on some of the homework. first, back on february 18th, joel in north carolina asked about lpl financial. i said i would get back to him. it's a service provider to nearly 18,000 companies across the country. it includes brokage services and investment offers. it was taken private by a pair of private equity firms in 2010. and since then, frankly, it's been a bumpy ride with the stock performing well for the first few years and peaking a few years ago. shares have been trending lower, say, ever since, including a vicious decline over the last three months. lpl financials is now down 41% year-to-date. thanks in pa to a truly hideous quarter that the company reported in mid-february.
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just a horrible top and bottom line miss. as you can imagine, even with the stock down big, this is not an appealing story. lpl's growth, it's stagnant. its margins, shrinking. and one of the private equity sponsors, tpt capital, sold off a third of its stake in the business in the fourth quarter. these are the investors who know this company best. i'm going to regard it as a bad sign. i'll make matters worse. friday "the wall street journal" said that a pension fund was suing lpl financial accusing it of fraud. on the other hand, though, the stock is extremely cheap. trading at less than ten times next year's earnings, if you back out the non-segregated cash on the balance sheet. at the same time, lpl has been voraciously buying back its stock, hand over fist. skbrus last year, they repurchased 391 million worth of stock. and that's a lot when you consider the company is only $2.2 billion in market cap. plus, they have a dividend of 4%, which i regard as safe. put it altogether, and i think
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it's still one to avoid. lpl's financial's dividend, it's tempting, but the fundamentals are faltering. given the stock has rebounded from its mid-february lows, i say use this recent strength as an opportunity to ring the register. next up on march 1st, russell stumped me. he's from california, about a company called 2u, the symbol is twou. it's a cloud-based software service provider that helps nonprofit colleges and universities deliver content online. basically, they're a tech outsourcing firm for higher education, and a play on the proliferation of online classes. i like the 2u posted strong revenue growth, 36% in the latest quarter, with expanding gross margins. full course enrollments in 2u's programs was up 39%. of course, like so many of these growth cloud plays, 2u is far from profitable. but in the first quarter of
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2015, they actually broke even on an earning per share basis. that said, the company's guidance was rather conservative. so what do you do with this stock that's got some pretty interesting fundamentals. it came public for its first 18 months as a public company, the stock roared higher. tripled from its $13 ipo price to a peak of $39 last september. then all things growth, as you know, went out of style, and the stock went into free fall, plunged as low as $15 at the bottom of mid-february, before e rebounding back today. i think 2u is definitely worth keeping an eye on, but i can't give it my full blessing until the market starts liking these high-flying, unprofitable growth names. and we're just not there yet. next on march 22nd, pat in texas asked me about alarm.com. alrm. alarm.com is all about the internet of things, iot, especially the connected home. the cloud-based platform let's you use your smartphone to monitor your home security,
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including video cameras, locks, garage doors, and alarms. alarm.com became public last june at 14 bucks. and a big ipo roundup piece we did over the summer, i recommended the stock about a buck higher. i liked the growth story. since then, the stock has surged up to $23 as of today. so do we still like it at these levels? the company has more than 2 million subscribers and unlike many ipos from 2015, it's actually profitable. plus, the latest quarter, phenomenal. however, up here, alarm.com trades at nearly 45 times next year's earnings estimates and the stock has already rallied 39% for 2016. i like the company, but at these levels, i think your best course is to wait for a decent-sized pullback before you pull the trigger. we got the start of one day today, just today, stifel downgraded the stock to hold. too high. but i recommend keeping your powder dry until it comes down at least a couple points before i pull the trigger, but i do like the stock. finally on march 11th, betsy in california gave me a call about
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ring central, rng, and i said i need to do some more homework. here's a company that provides software as a service solution, this time for business communications. basically, ring central is all about using the cloud to replace bulky on-premise enterprise communication systems, as the platform allows you to do everything from phone calls, faxes, texts, audio conferencing, online meetings, even video conferencing, all through the cloud. a standard precipitation costs $25 per month, per user, and businesses clearly like the value proposition, given that ring signal has been able to generate some significant revenue growth, up 35% last year, incoming a 34% increase in recurring revenue software scriptions, that puts it almost at the top of that group. however, the stock has been slammed. it's down 32% year-to-date, some of which has to do with the sell-off of all things cloud related in february and january, but ring central got hit in march with at&t announced that their entering the small and mid-sized business market with an offering that frankly sounds very central to ring central's
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core business. i think that the sell-off might be done. att, they're a tough competitor. and there's nothing to stop other online players -- other players from jumping into the space. at the end of the day, if you want a cloud-based enterprise software place, all right, let's keep it easy. i would rather stick with the surging salesforce.com or adobe. it's always tough to go wrong with either of those two gems. there, homework complete. stick with cramer. if you're going to make a statement... make sure it's an intelligent one. the all-new audi a4, with available virtual cockpit.
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there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim cramer. see you monday!
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♪ >> narrator: in this episode of "american greed"... ray nagin rises to power as mayor of new orleans on big promises of reform. >> the winds of change are blowing, and they are fanning the flames of a renaissance in our great city. >> when he first came into office, he was a rock star. i mean, this is a guy who had crossover support -- black, white, rich, poor. i mean, he was the guy that came into office that was supposed to change new orleans, fix new orleans, clean up new orleans. >> narrator: until one of the most catastrophic storms in history changes everything. >> katrina strikes a heavy blow to the louisiana coast as a category-4 storm. >> everybody was devastated. we had no electricity. we had no running water. we had no food.

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