tv Mad Money CNBC December 5, 2016 6:00pm-7:01pm EST
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the dow. >> guy. >> lululemon, sister! >> all right. thanks for watching. see you back here at 5:00. in the meantime, don't go anywhere, jim cramer's exclusive interview with graying greg hayes. that starts right now. my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. 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 trying to make you a little money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or tweet me @jim cramer. how can the same things that sent us down not that long ago actually be totally ignored now? how can we have still one more
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day where we aren't worried about exactly what ailed us before? with the dow gaining 46 points and nasdaq up 0.98%? >> how can bad news be treated like good news? that's what happened today. it's important we put it in context and not be cynical about the action. so let's start with the presumption. many of the same ills of the old days, meaning a few weeks ago -- are now considered tonics for the stock market. not that long ago we were afraid of every single utterance from anyone connected with the federal reserve because we were terrified. what were we terrified by? the prospect of a fed rate hike, any hike. just look at the history in august 2015. we got a rate scare. one fed official said the economy was strong enough it could withstand the ongoing crash in the chinese stock
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market. that resulted in 1,000-point decline over two days. all that damage from one interview with a person who wasn't even the fed chair and fed chief. then in december 2015, even as we were well prepped, we got an actual quarter point rate hike and the market began a swoon, a swoon that led to one of the worst january performances in history. for years now, the most intently at the beginning of this year, every time a fed head spoke we listened with our hearts, we listen with our mouths, fear in our brains. who gets these officials so much power? we curse them. and we -- when they said the economy was running too hot or that it didn't matter what was going overseas, we thought we could handle the challenge. in the end, it became completely absurd. we knew at any given moment the economy could stall out, we might catch a month or two of
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weakness and a rate hike would be the could ycoup de grat. we got nonfarm payroll numbers that made us feel we are on firmer ground. second, the country elected donald trump over hillary clinton. and routed the democrats. with the gop taking both the house and the senate. the election signalled that washington would not only stop being an obstacle to growth but a friend of business. president-elect trump ran on a platform of deregulation, repatriation of american funds from overseas and a lower tax for all u.s. companies. it was the polar opposite of what hillary clinton was running on and his victory caught almost everyone by surprise. trump's agenda wasn't just a recipe for busting gridlock but a recipe for growth and souped-up growth.
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the economy is almost definitely going to pick up speed. if all goes well, we could see 4% gdp growth that. would be spectacular. there is no such thing as a free lunch, right? nothing. now it seems our manufacturers might end up paying for it thanks to a painful crackdown on offshoring. tonight we hear from greg hayes, ceo of united technologies who got a call from president trump asking he not send those carrier jobs down to mexico. we ask him about that call later in the show. washington's new-found growth empowerment has freed the animal spirits of this market. that's why a rate hike is perceived as a small cost of doing better and bigger business. it's more positive than that. when we bandy about a term like the market, we are being way too imprecise. certain parts of the market benefited from gridlock. other parts like the banks and
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infrastructure-related stocks are almost desperate for high rates and faster growth. frankly, it's gotten to the point where stocks like jpmorgan and bank of america need to get a rate hike or their gains of 26 and 30% could be repealed. same with the rally in caterpillar to date, always considered a winner in the supergrowth world. we don't listen to fed governors and presidents as they speak. we used to look at when they were speaking and what the schedule was. i don't look any more. our new attitude, give me a rate hike or give me death or death to the bull. it's not just the fed. suddenly we are shrugging off news from overseas that would have caused a huge sell-off. last night the italian electorate voted overwhelmingly for change. though we aren't sure how to change. we know this was a win for nationalism over globalism, prime minister renzi immediately resigned, recognizing he was really dramatically out of step with the italian people who are
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sick of slow growth and the policies that have been inflicted on them by the european union. immediately -- immediately, within five seconds, i got e-mails, five seconds, twitter, whatever, saying from pundits, how unexpected this was. how frighteningly unexpected and treacherous for the u.s. markets. the futures sold off instantly. by the time i woke up at 4:30 -- slept in -- the futures were up and so was europe. there was no surprise to the vote. even if italy is hobbled, it has more opportunity to lead to more growth. theoretically because this is still europe we are talking about. what would have been a huge and surprising day a few months ago, a total turnover of the government was now a built-in given. here's another. the last half dozen years if you told me the dollar would be as strong as it is right now, i would have said you need to get out of job asap. remember the super freaking
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dollar? normally means earnings estimates are way too high or exporters are competitive. when you see you're down to 20-month lows and our market would trade in lock step with that currency, their stocks would be plunging. instead we are completely enduring the dollar strength, 592-week highs are peppered with those companies that would hit 52-week lows. is that healthy? i don't think so. if you're selling off on a strong dollar, if you decided to get rid of these stocks, would you have been out of this market a month ago missing good money. a strong dollar is part of the pro growth bargain agenda because the radical rise in interest rates left 2 trillion of bond markets in their wake. 1.6% up to 2.4% like the 10-year in the blink of an eye, that would cause a paroxism of
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selling. no. rates are rising because there is more demand for money. we have to accept some stocks, mainly the bond market stocks could get sacrificed here, and they have been, but the stocks that benefit from growth are almost all totally unfazeed, including techs we were selling off thursday so hard. i know i'm making growth sound like a magic elixir. a panacea produces great results. that's not the case. real growth breeds a real shift in what stock investors like. right now they like the industrials. despite talk of protectionism. more on that later. and they like the financials because those like higher rates. maybe we should start thinking again, get this -- this is a thought i had in the 15 hours it took me to get from united technologies -- maybe genoa's good for the american people,
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growth, is good for stocks. wouldn't that be a refreshing change? katie in florida! >> caller: hi, jim, this is katie from palm beach gardens, florida. >> nice. what's up? >> caller: well, i just have a question about haynes celestial. i want to know if you think the plunge of han celestial if it's solely dependent upon this due to its internal review of the discounts granted to its distributors? and do you think if 2 it hit its all-time low -- >> i think it has. my rules as made out in books i've written, numerous books but this one was the most important, i said accounting irregular arts equal sell. as much as i want to tell you to buy hain, my rules won't let me do it.
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many other stocks i thought were out of the woods turned out not to be and i've hurt people. this is kind of like a hipocratic oath. i ain't doing no harm in that one. hal in maryland. >> caller: thanks for taking my call. this is the home of the great football team the ravens and the world's greatest crab cake. my question has to do with lbj lloyds banking group. its stock has been trading from 2.47 to 5 the last three years. they are earning money. i'm just concerned that the stock stayed at this low price range and, number two, it hasn't risen like the other banks have? >> it doesn't have as good a balance sheet as barclays. it's better than royal bank of sco scotland. maybe it's the cincinnati bengals. they looked good yesterday. all right. real growth produces a real shift in the market. that's what we continue to see as the trump rally rolls on.
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on "mad" tonight, as trump's presidential priorities become more clear, i'm considering the pros and cons of trump economics. polaroid endured two bankruptcies, but the brand is getting a second chance. i've got the excusive with the founder of an eye-catching new app i abtly downloaded. >> and trump may be trying to make america great again, but can he keep carrier and united technologies competitive? ain't that worth asking? stick with cramer. in their quest to put america first, the incoming trump administration first set their sights on carrier. >> companies are not going to leave the united states any more. >> what does the ceo of parent company united technologies think about being in the center of a political firestorm? >> i was born at night but not last night. i also know about 10% of our revenue comes from the u.s. government. >> find out next when "mad money" returns.
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this is "mad money." we love to highlight american manufacturing, something we still do best. i like that, despite the endless nay sayers. there's no better place to do so than the practice the and whitney division of united technologies where we journey to meet greg hayes, the chairman and ceo of one of the best companies we have in this nation, united technologies. they make the geared turbo fan is an engineering marvell using an environmentally-friendly machine that uses less gasoline. hayes took us on a tour of the connecticut factory where they are made. he addressed an issue that
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caught america's attention by storm. the phone call from president-elect trump to hayes asking not to move carrier jobs from indiana to mexico. it was the call heard around the world and hayes talked about the deal he made and impact of that deal on united technologies. its stakeholders and yes, the country itself. take a look. >> greg, i'm surrounded by incredible equipment. what is being made here and how important is it to united technologies? >> you're standing in the middletown, connecticut, final assembly facility for pratt whitney. you see the a-320 product line. >> being airbus. these foreign companies -- >> a-320 and a-321 models. >> why would i choose this gear turbo fan over somebody else's engine? >> if you see the size of the
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fan, 81 inch diameter fan, that particular engine is about 16% more efficient than the last generation of engines that we were building the v-2500. let me put that in context 16%. we've got about 8,000 engines in backlog today. >> order for 8,000 of these. >> of these. of those 8,000 engines in the next ten years, we'll save the airlines 11 billion gallons of fuel. 11 billion. at $1.40 a gallon which is jet a today, you're talking $15 billion of savings to the airline. that's the biggest benefit. on top of that, we've also got the technology allows us to reduce the particulate emissions. we'll take emissions down about 50%. that takes essentially 2 million cars off the road for 10 years by using our engines. the other piece of the pie, the third piece is the noise. this is about 75% quieter than the engine that it's going to replace. if you're at laguardia and over the flight path, today about
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500,000 people wouldn't hear this plane coming in that they hear the planes today. that's why we have 8,000 orders for this engine. >> how hard is it to make? >> it's hard. right? think about this engine. we spent about $10 billion developing the technology around these engines. starts with the gear. we have the star gear system which allowed us to do something we've never been able to do before which is to spin the fan in the front at 1/3 of the speed of the triple machinery in back. that is keith to this entire architecture. that's why we call it the geared turbo fan. spinning the fan at about 8,000 rpms and 24,000 rpms, you optimize the turbo machinery and the bypass. the beautiful thing about this engine, it's bigger than the engines it's replacing. it's got about a 12-1 bypass. most of the thrust is coming from the fan and not the thrust of the turbo machine. >> what your executive said teething problems trying to get
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the backlog under control, don't want to lose any orders to the other guys. >> we have had a number of issues. we talked about that during the course of the year. today we've got 10 airlines operating this engine. we've got about 50,000 flight hours. with 99.88% dispatch reliability. while there remains things we are learning as we get more and more hours on the engines, those are nuisance faults as compared to the overall design. the beautiful thing is the gear works. that was the thing people always were concerned about is, can you really put a gear on the front of a large turbo fan engine? the fact is we've been able to do it. >> where does this fit in the vast plan plea of divisions you have at united technologies, whether climate security, otis, these are huge important -- of course carrier. >> right. we've got four big pieces. each one of them global in scale. pratt whitney is about $15 billion in revenue today. because of the geared turbo fan
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by 2020, four years from now, we'll be about $21 billion in sales as we ramp up production here. compare that to our climate business with carrier, that's about $17 billion. we've got the otis elevator business about $12 billion. then we've got aerospace systems business. if you think about this big engine, almost all the big components that go around that make the engine work, the full authority digital electronic control, those are made by our aerospace systems business. that's about a $15 billion business. think about $30 billionaire spice, $30 billion building systems. >> obviously, this is a key part of united technology story. so is carrier. i know you've been in a tough spot of late. i look at you as a guy who wants to make as much money for shareholders as possible. you're committed to doing that. you go to a board. the board wants to represent shareholders. the main thing that you and i would talk about is how much you can save and what kind of revenue. we look at these great engines
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and know these are great sales. what happens when the government gets involved? could you walk us through your side of what happened when president-elect trump called? >> it's no secret. i got a call from president-elect trump a couple of weeks ago. >> before thanksgiving. >> about a week before thanksgiving. he simply said, look, greg, i need you to relook the division to close the indianapolis factory on carrier. we're going to do a lot of things in this country that will make it more done suesive to manufacturing. we'll take the tax rate down and reduce burdensome regulation. when that happens, you're going to be printing money but relook at your decision to close the factory in indiana. >> you have an obligation to your company. to relook at it means you have done something that actually -- greg, hundreds of american manufacturers have done ever since nafta, it's been the right thing to do. we accept the fact i would be critical of for not doing it. i care about the shareholders. how do you justify it? tell mr. president-elect, that's
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not what i do. i make good stuff and i try to get the best cost. >> i had that discussion. i had it with vice president pence specifically a couple of times as we talked about the fact most of the supply chain and hvac side already moved to mexico. we've got about a million manufacturing square feet in mexico already. so this is just a natural evolution to close a couple of our facilities y s iies in indi. these are commodity products at the end of the day. unlike the engines you see here. you've got a highly skilled, highly trained fork worse. the average employee has 26 years experience. very difficult to do. these are the kind of jobs we can do in america because they require high school and high value. the assembly lines in indiana, great people. great, great people. the skill set to do those jobs very different than what it takes to assemble a jet engine. >> there is no give without a get. we all know this.
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we would like to you rethink it, but at the same time, everybody's going to get those benefits you talk about. what specifically at united technology? we hear about this $700,000 incentive. that's much less than you would have saved. >> there was a cost as we thought about keeping the indiana plant open. i'll tell you this because we know each other. i was born at night, but not last night. i also know that about 10% of our revenue comes from the u.s. government. i know that a begger regulatory environment, lower tax rate could eventually help utc over the long run. so we weighed all those things and make a decision with the board. >> you weighed it. president aelect did not say did you see how many engines we buy from you? >> did not come up. nor was there any deal. there was no quid pro quo to say i'm not going to tax you if you don't do this. he simply said take a hard look at it we worked with governor pence and i think came up with a relatively good solution for everyone.
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we keep the plant open, keep 1,100 people employed in indianapolis. we still get to do the preponderance of the restructuring which we were going to do anyways. so i would say no deal but the a the end of the day a good deal for utc. >> how about the united states? >> i think if we can see a renaissance in manufacturing in the u.s., that's a good deal for the u.s. it's got to be a renaissance. it's got to come from more thoughtful regulation and a more competitive tax rate. those are the things they are focused on. paul ryan is, chairman brady in ways and means are on the right track. >> you make the best engines in the world. you have factories everywhere. it sounds like you're being asked to be an american first who has to put other interests at heart, not just the shareholders. that was not the previous way business was done in this country. >> i think it's more than just shareholders. you have to think of the stakeholders. all the stakeholders, be it the communities, employees, shareholders, and you have to
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make a trade. at the same time i would tell you the jeannie of globalization is not going back in the bottle. free trade is essential to the growth of this country. this country was founded on two principles, right? immigration and free trade. that is what made america great over time. we had the ability to develop and innovate in the u.s. and take those products and sell them around the world. like i sell otis elevators around the world. >> let's hold it right there. more with united technologies' chairman and ceo greg hayes in a moment. coming up -- the conversation continues. >> are you xut at a competitive disadvantage? what's good about mexico and going there and what's good about staying here? >> more from cramer's interview with united technologies ceo greg hayes next.
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donald trump hasn't been sworn in and is already taking steps to prevent some american companies from moving jobs overseas. united technologies, calling it patient zero. this conglomerate has been doing very well. suddenly we've got a new political risk to contend. with it's hard to get our heads around how serious it might be. take a look at more of our talk with greg hayes chairman and ceo of united technologies, jumping back in with the conundrum facing so many companies. are you put at a competitive disadvantage? the other gu-- what's good abou mexico and going there and what's good about staying here? >> what's good about mexico? we have a talented work force in mexico. wages are obviously significantly lower. about 80% lower on average. but absenteeism runs about 1%, turnover runs about 2%. very, very dedicated work force. >> versus america? >> much higher. i think that's just part of the
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jobs again are not jobs on assembly line that people really find all that attractive over the long term. we have long service employees who do a wonderful job for us. we like the fact they're dedicated to utc, but the key here is not to be trained for the job today. our focus is how do you train people for the jobs of tomorrow? i talked about our employee scholar program. >> you're the second biggest after the government. for scholarships. >> 45,000 people have been through our employee scholar program. we spent $1.2 billion over the last 20 years educating our workers. got 7,000 people currently enrolled in this program. the whole idea is i am prove your own marketability, improve your own skills. the skills you have today are not going to get you through tomorrow. >> it's not -- sometimes i feel like it's bad luck. you were quoted when you moved that factory from mexico to south carolina. you felt that was a good thing
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but there was $60 million costs that first year. it's not as easy to reshore. >> any time you undertake a major restructuring, closing a plant whether in mexico or china or indianapolis, it is expensive and it's high risk. we did. we spent about $60 million extra to move the plant from mexico to florence. today it's one of our most efficient plants is in florence, south carolina. great work force, productivity and great products. >> when we talk about indiana, what happens? trump calls and you work out the deals with pence. he gives you incentives, but it's not that makes up for it. you have a new view because you can't just be a globalist. >> you have to recognize the reality of the day, right? at utc we reserve the right to get smarter. when the facts change, we have to be able to adapt. i think that's what i would say we did here. we understood that the facts have changed, something we didn't expect, but we have to be
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adaptable. >> but if you come up with a not competitive furnace, whatever, not competitive engines, you will lose to others. >> right. again, think about what we talked about last week. we are going to make a $16 million investment in that factory in indianapolis to automate to drive the costs down to continue to be competitive. is it as cheap as moving to mexico? no. but we will make that plant competitive because we'll make the capital investments there. that means there will be fewer jobs. >> i was going to ask you. to me, i don't see a million people working here. but the engine, you could not make this in mexico. you need those great american engineers to do it. >> we invented this engine here in connecticut. just up the road in east hartford where we have about 6,000 engineers. there's another 1,100 engineers in the plant and 1,400 mechanics that work on these lines every day. having the closest proximity to the engineering talent is
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critical. it's the same reason we are setting up our overhall and repair facility in columbus, georgia. we could have put it someplace else like mexico or china, with you we elected to put it in the u.s. because we need that engineering talent to support the overhaul process to see what you need to learn as these age. >> these are a great starter. the actual maintenance business is a fabulous business for united technologies. >> that's why we are in the business of selling jet engines. every time you sell a jet engine you send a check to the customers of $1 million or so. >> the fact is you want to be in the long term. you have 8,000 orders. you get those orders. it's almost a razor blade model. >> these are really expensive razors. it's a business where you have to take a very long view. these engines will be in production the next 30 years, will be on the aircraft the next 40 or 45 years. if you think about it, you give away the engine up front or get
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paid 2/3 the cost of the engine but you make it up because you'll overhaul the engine three or four times. i saw an old md-80 taking off that were built 40 years ago. i love those engines. it's the same thing. we'll sell spare parts for years and years. that's why we're in the business. that's why there are so few people in the business. the barriers of entry are huge. >> you said when you moved otis to florence, you wanted the engineers next to the otis elevators. that's been your philosophy. you build them here with engineers. that's how it works. >> you need to have the engineering talent. we talked about, these engines don't go together all that easily at first. there is a lot of learning and changes to go through the process of learning out. today it takes us about 17 days to assemble an engine here. in another year it will be 10 days. eventually we'll get that
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probably in half. >> will you get to the 200 you're hoping? >> this year we have about 150. >> there is an outside hope you can beat that. >> what we won't ship is fan blades. we'll shep well in excess of 150 engines to airbus. none of these have fan blades. they get shipped from our plant in lansing, michigan, to where they are assembled on to the engine. >> how valuable will that money be repatriated both to shareholders and engineering and american manufacturing money? >> if tax reform is the key for utc. we've got today $27 billion of permanently reinvested earnings overseas. $27 billion. $6 billion of that is sitting in cash i could bring back tomorrow and invest here, whether it's dividends, buying back stock. >> or doing more research and
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development in america. >> we are spending $2.5 billion a year on r&d. there could be a renaissance in manufacturing in the u.s. if we get a competitive tax rate. >> of the things you're most proud of, you build the best stuff, you're an american in a globalist environment but thinking larger. if i asked are you a globalist -- >> absolutely. >> you're more concerned in this regime you get a call from the president-elect, do you think some is because united technology is a well-known company or someone said we are moving this factory? >> i think there is bad luck involved, if you will. the fact is when we made the announcement in indiana that we were trying to be as humane as possible talking to employees with a three-year leave time on the announcement, unfortunately, someone took issue with it. they didn't like the fact we are moving the jobs to mexico.
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everybody has seen the youtube three minutes. it's unfortunate. that just happened to get in front of mr. trump and he saw that and he picked up on that as a campaign issue. indiana. he used the message not just in indiana but through the rust belt. if you think about the election of trump, it is because of the midwest and rust belt. >> if hillary had won, that plant might have gone. okay. with this kind of inspiration and discussion and bargain and art of the deal, can united technologies lead the renaissance? are you in position to lead the manufacturing renaissance? >> absolutely. we are doing huge innovation. we are not just talking about these engines. talking about the next generation of elevators we are working on, systems, power electronics, what we are doing with the carrier business in terms of the 3,000 ton coolers we are making. there is truly going to be huge growth in manufacturing here in the u.s. a big piece of that will get
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exported. think about it this way. of utc usa sales which are about 30% of our total sales, $10 billion get directly exported today. that supports 40,000 jobs in the u.s. if you think about pratt whitney, they will add about 8,000 manufacturing jobs in the u.s. the next ten years. those are good paying jobs. it's pale in comparison to the 8 hup jobs we were able to save in indiana. these are very, very high paying jobs, high technology jobs. our challenge is where do we get the people to do that? part is our obligation to train people for the next generation. >> you provide more scholarships than any other company. that's really important. >> it's about life-long learning. >> exactly. i want to thank greg hayes, chairman and ceo of united technologies. thanks so much for your time. coming up -- markets have weathered a lot of uncertainty about the incoming trump administration with averages
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hitting all-time highs could recent developments mean the honeymoon is over? cramer eyes the industries that could catch the ire of the president-elect. find out who when "mad money" returns. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) i won't. why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision,
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ever since donald trump's surprise election win, the markets have been having a love affair with the prospect of a president who is super pro business. after this weekend's blitz of tweets, some are wondering about the potential down sides of a trump administration, at least for certain industries. sure, while we still have the three big positives of tax reform, repatriation of foreign profits and deregulation, there are some emerging negatives. first it's starting to look like trump is serious about cracking down on manufacturers that ship jobs overseas. witness our earlier interview with greg hayes and the tweet about a $2 million company out of milwaukee. say what you want about offshoring, it's a effective way for companying to cut cost. we like that in "mad money" historically. this suddenly becomes a political fraught issue, though
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obviously bad for workers. we also have to be concerned that trump spoke at a time when he's president, something no american president has done since nixon recognized the people's republic of china because they consider taiwan a territory. a trade war with chinese seems likely. they've been waging wars for us for years and we didn't seem to know it. tough talk could hurt everyone in those business areas, from caterpillar to apple and procter and gamble. while trump's an enemy of the affordable care act, that doesn't mean he's a friend of health care. in short, while the positive of trump's agendas still outweigh the negatives as far as the stock market is concerned, the winner's circle shrunk. who is unscathed? banks, steels and fossil fuels. from the beginning there's been a concern trump could be a populous when it comes to the
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banks. former goldman sachs partner for treasury spell good things for steels and banks. with ross in the cabinet, steel makers are obvious keepers. ross knows that beleaguered american industry and foreign competitors tried to destroy it. i don't think tariffs from steel and south career will be lifted any time soon, especially his tweets telling off the chinese. behind the scenes, members of trump's team made it clear washington will no longer stand in the way of the fossil fuel industry. especially the pipeline companies. last week when i spoke to the terrific ceo of marathon i got the sense the federal government under obama has worked hard to stymie pipeline development. yesterday the army corps of engineers said it will block the pipeline. fossil fuel will be better under trump because of this decision like the dakota thing. trump endorsed the dakota access
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line. that's very bullish for marathon pete. obama would prefer fossil fuels to stay in the ground because he's very worried about climate change. trump wants to drill, baby, drill, and lay a ton of pipe to create jobs and give us energy independence to boot. i can tell you the market cares more about employment than the environment. how about coal? tough. there aren't many investable coal plays. the only ones i can bless are the railroads, which ship a lot of coals. their gains will be limited by the cheapness of natural gas. the utilities felt pressure to shutter coal plants may be free to leave them open. coal likely won't be phased out as quickly as we might have expected. time and again i come back to the banks. why? because let's see, how about the regulators? they can play hardball or
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softball. if it's softball, the banks see earnings go higher, perhaps much higher. i've yet to hear anything from trump to constrain the banks from going higher. in the end, while the trump administration may be positive for business overall, some ministries are going to been fitt more than others. you need to start refining your stock picks going forward. the trump rally will go forward, be a front and center concern for a shrinking number of companies.
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it is time, time for the lightning round. i say buy, buy, buy, sell, sell, sell until i hear this sound. are you ready, skee-daddy? max in georgia. >> caller: how are you? >> i'm good. >> caller: thank you. a big rush and boo-yah for appreciation for all do you for us home gamers. >> thank you. i'm in it to win it for you what's going on? >> caller: i was on vacation in
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the beginning of october. one day i decided to look in my portfolio and for the few days i wasn't paying attention, my skok was crashing as a result of the outbreak. >> it's got a lock-up expiring more stock hitting the market. wait to see what happens. lately those things have been busting a stock. let's wait. jeff in florida. >> caller: big eagles fan, himx, buy, sell or old? >> that's an eagle stock right now. we've got so many companies like nvidia doing well. i'd rather buy nvidia. alfredo in florida. >> caller: i want to ask about life sciences? >> this is down way too much on a series of misinterpretations.
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they have a ground breaking device. christi in alabama. >> caller: hi, yes, we love your show. what is your thoughts on pandora for now and later? >> roll tide. i want you to be long in it. think about the company for sale, i like it. and that, ladies and gentlemen, is the conclusion of the lightning round! this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade.
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my neighbors are here, my friends and family live here, so it's important for me to respond as quickly as possible and get the power back on. it's an amazing feeling turning those lights back on. be informed about outages in your area. sign up for outage alerts at pge.com/outagealerts. together, we're building a better california.
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everybody knows "mad money" is a show about stocks. sometimes you want to know what the future holds for the publically traded companies, you need to check into the privately-held start-ups. take polaroid swing. remember that name polaroid? partnered with the old iconic brand. with a tech start-up calling swing trying to reinvent technology latched on to the polaroid name. i got a chance to sit down with the co-founder of swing to talk about his game-changing app. take a look. >> tommy, explain the concept behind polaroid swing. >> this started with the brand polaroid. we felt if we could combine the design heritage iconic brand of polaroid with pioneering photo technology, we could do something special. our initial product is polaroid swing. what it does, allows you to capture one-second moments you
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can then reach into your iphone, swing it backwards and forwards and bring it to life. >> we did our selfie together. that's kind of one of the things, only one of many things the polaroid swing does. >> absolutely. if you think about your special memories, any moment in your day, we think that the human brain doesn't remember the world in stills or videos. think about life in these short moments. now this technology allows you to capture those moments. it captures life more favorably. >> when i was growing up we all had polaroids then the company went bankrupt. you believe it's an iconic enough name which 22-year-old will know it? >> yes. it has an emotional connection with people around the world. taylor swift brought out her album a couple of years ago. the front cover was a polaroid picture. it didn't say polaroid but you knew it. that iconic white border. that reintroduced the brand to a whel set of younger audience
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here in the u.s. and around the world. >> how many people are downloading the app? it's on the iphone. >> available in the app store. we launched it a couple of months ago. this was meant to be a trial to test the waters. but apple got hold of it and launched it as the number one featured app on the app store. we tad to struggle to keep the servers up. we did it. we had exponential growth since then. >> it's a private company. is it growing by every day? do you have hundreds, thousands, 10,000s? >> it grows exponentially every day. the numbers are quite large now. we are about to launch in 50 different markets next month which is really exciting. >> how are you going to make money? it's a private company. maybe people want a piece of it. how do you monetize? >> one thing we found soon as we launched, we had a lot of calls every day from brands. brands pick it up quickly. >> you mean consumer packaged goods companies? >> consumer brands, sports brands. this medium, the polaroid swing medium is five times more
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engaging than a still photograph. >> because of the thing we did on the selfie? >> you linger on it, you want to touch it and that was compelling to brands. the other thing they figured out, the endowment effect. if you go in a store and touch a pair of jeans, once you touch it, you will be willing to pay 60% more for that pair of jeans. same thing is true on a smart phone. once you start touching it, you value it more highly. this will transform the media world. >> snapchat is hot, instagram. these are big competitors. how do you stay in their league? >> big thing is allowing people to create amazing creator content. >> it's not zero sum. you can be in instagram. >> people are sharing over 3 billion photos every day now. it's crazy. if we can help people create better content for their instagram account, their snapchat account, that's the way it starts we are growing an emerging social platform ourselves. >> 50 countries.
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you're telling me polaroid is not just an american or british, everywhere. >> we are excited. we'll be going to japan, korea and the polaroid brand means so much to people in those markets just like it does here in the u.s. >> i've got to tell you, to me it's exciting to use. i'm trying to figure out really young people -- what's the youngest people? >> our chairman uses it with his kids. >> perfect. tommy stadler the co-owner of the polaroid swing. ♪ i got it, dad. ow! ♪
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we love to keep them safe. so we made the nest protect smoke and carbon monoxide alarm. it speaks up and can alert your phone if there's a problem. or let you know if everything is just fine. because, ya know, we worry. ♪ this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.
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enepeople want power.hallenge. and power plants account for more than a third of energy-related carbon emissions. the challenge is to capture the emissions before they're released into the atmosphere. exxonmobil is a leader in carbon capture. our team is working to make this technology better, more affordable so it can reduce emissions around the world. that's what we're working on right now. ♪ energy lives here. >> thank you, greg hayes. there's always a bull market somewhere. i promise to find it for you right here on "mad money."
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i'm jim cramer. see you tomorrow! lemonis: tonight on "the profit"... trevor: we're flex watches. we make watches that give back. lemonis: at an l.a. watch business with a powerful mission... travis: each color represented a different charity. lemonis: ...the owners have lost their way, and now they're losing time. how much longer could you keep the business open? travis: another few months. [ sighs ] lemonis: their branding is unfocused. this is a total mess. there's no signage. there's no point-of-purchase material. there's nothing. their process is rushed. feels like a high-school art project. and a painful tragedy has them questioning their purpose. travis: you're allowed to talk about the fact that we did charity and -- trevor: that is not our direction. travis: let's be honest. trevor: stop cutting me off. travis: this is who we are! lemonis: if i can't help these guys return to their roots...
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