>> a big day tomorrow. >> a big day tomorrow. do you know what will go high tomorrow? despite what these they have said, giddyap, giddyap. >> lee. thanks for watching. see you back here tomorrow at 5 for more "fast money." "mad money" starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain you but to educate and teach. so call me at 1-800-743-cnbc or tweet me @jimcramer. is this move real, or is it irrational exuberance? is it justified or is it merely

about trumpian alchemy? that's the dichotomy we need to flesh out on a day where the dow jones average finally broke out above 20,000, rallying 156 points. s&p gaining 0.80%, nasdaq falling nearly 1%. why is this question so important? because if this push over dow 20,000 is all about trump and if trump fails to enact his tripod wish list, lower corporate taxes, repatriation of foreign capital, deregulation, if you believe that, we can say bye-bye, gains. sure, the president's already deregulating, but he needs to get congress on board for the rest of the plan. we don't know if he has it. it would be ease to take a top down view of the market. the dow first rallied post-election because the republicans had a sweeping victory that no one expected. so that even if trump's an outsider he can still get his way as we've seen with every cap n dash cabinet nomination so far.

that's the kind of rap you hear. oh, yeah, that i why it went up and that's what it's all about. no. first of all, that is not even the way i think. that's not my world view. by the way, that's not how it's really done. that's how it may be done on tv. that's not how it's done in real life. this is what you do. you don't do top-down analysis. that's for people who don't want to get their hands dirty or for people who prosecueople are to o do the work themselves. that means you've got to bed late and wake up early. when if comes to critiquing the move to dow 20,000, i prefer to evaluate the individual companies in the index. i like bottoms up, not top down naval gazing. it doesn't help for a broad sweeping thing. think about t. you got literally half of the 30 companies in the dow that have reported earnings, so we have something to work with here.

that's why i want to analyze the results of the 15 companies to see if we can justify this move based on the fundamentals. remember that? not the animal spirits or trump or tweets. the fundies. this is a crucial analysis that must be done because of all the near misses we had in our last failed assault on 20,000. at the time i told you told you there wasn't a good case to be made on the fundamentals. there was too much sizzle, not enough steak. but i think this time is different. this time, the earnings tell a different story. that's why i want to give you a quick and dirty rundown, an encapsulation of the work i've done on the 15 dow members that we've already heard from this earnings season because to me, these numbers say this rally is for real. they say you better start believing. let's go down the list. first there's american express. even though the stock fell after it reported, i think that was a big mistake by wonten and somewhat ignorant sellers. the last time american express was earning this kind of money

two years ago the stock was in the 90s. i think it's headed back there, currently below 77. i'll take it how about boeing? many bears figured this was the quarter where the titan would have to lower numbers. i kept hearing about that every day. they're going to have to cut numbers. why? because of a surfeit of wide bodied planes. others were worried about trade sanctions. after the actual results, all you could do is wonder why the heck you didn't own the darn thing, especially since the once hellish dreamliner is now a profit center. had to happen eventually. it happened this quarter. third, the fact that dupont could report such an amazing number in an atmosphere of intermittent growth is all about the amazing work of a particular ceo. this ceo's name is ed breen, and he's merging his company with dow chemical. i was blown away by the improvement in gross margins. this man is a -- this man, the way i put it, he knows how to cut costs and grow revenues at the same time. that is an outstanding feat.

most ceos could never do that. number four, all right, here we go. general elect. they plain out missed. i was disappointed in the execution followed by its oil and gas moves, not to mention that shortfall in its turbine business which was so huge if i were running the company i think i would have flagged intraquarter. don't look to ge for help now that we've broken above 20,000. it doesn't deserve to help. fifth, if goldman sachs can report the kind of monster number it just delivered last week before we get deregulation and rate hikes, i can't even imagine how much they can eastern once that backdrop improves. yet the stock still trades at a ridiculous 12 times earnings. that's insane. goldman used to trade at a huge premiere to the group. any lightening of financial regulations will send this one into orbit. it's not in orbit yet but it can get there from here, especially with fed rate hikes. six, ibm traded down on its

conference call and i thought the sellers had lost their minds. this company has become one of the premier consultants for digitizing the workplace. 40% of ibm's business is growing like some sort of young stud tech startup. it's time to pay more, not less for this stock, and that's why i think 178 goes to 200. seven, i am tired of hearing in the last 24 hours that johnson & johnson had a weak quarter. that is nonsense. in an environment where president trump hadn't singled out drug companies, wyou would have been inclined to buy it. go read the conference call if you don't believe it. go read what gorsky says. i know it's time consuming. it's a drag. i mean my wife says, what are you doing? what are you doing with these things? come watch criminal minds with me. criminal porn. no thank you. number eight, jpmorgan delivered the best quarter a bank has ever reported. i am not kidding.

on virtually every mettic, lending, assets, this company simply has no peer. i don't hang out with the jam my dimon, the ceo. i'm just sayring this stuff. this high growth bank with its fabulous balance sheet is trades at only 13 times earnings. john peer pont morgan, i am telling you, is looking at this stock price and rolling over in his grave. this has become a jackie wilson stock. it's going to be lifted higher and higher at the year goes along. if you don't understand jpmorgan, google jackie wilson. nine, i felt lonely like in the mcdonald's conference call. what matters is same-store sales. i think the idea that easterbrook is somehow done inventing this company, is insulting. ten, i heard rumblings that 3 m.'s consumer business was disappointing. do some deep dive, will you? do some sort of corporate

download. the narrative onld gained credence. in its totality, i liked yesterday's conference call a great deal and the ceo only enhanced my view of this terrific stock. i would not be surprised if 3m leads the way higher from here as the consumer business snaps back. how about 11, proctor and gam bbl, big guideup. the huge restructuring is paying off in spades. as for the strong dollar, procter is ready. if this stock comes down, i think it will be bought and bought strongly. it's the lone soft goods company that really blew it out. yeah, it was that fabulous a quarter. 12, travelers earned $3.27. clean beat. what else can i say? now, look, i think this stock should be back to its 123 high. i want you to look for this insurance company's portfolio to start giving you some extra juice because you can take on -- you can take the premiums, invest them in risk-frees that are giving you a better return.

13, united health. it always blows away the numbers and then falls into a strange and weird function for five days as people assess it. and then the stock roars ahead. guess what, the furnk's about t end. this is the only health care stock that i believe is on the right side of president trump because it thought obamacare was simply unworkable. what about number 14, united technologies? the ceo delivered again. otis elevators, better, climate control, superb. maybe the turbo fan engines, they did not -- weren't able to execute perfectly on that, but, please. it was a good kaert. you didn't even notice the couple pennies per share that trump knocked off the earnings by making greg hayes keep those jobs in indiana from going to mexico. two cents. finally verizon. i hate to end on v, but it was terrible. it was really disappointing. it's losing share all over the place. t-mobile and sprint seem to be

eviscerating them and they got to own that. let's go back in totality. of the dow names that have already reported, i have mentioned 13 stocks that i would pay more for right now, and only two disappointers, verizon and ge, which by the way fortunately have juicy dividends that make it so that they have a nice cushion and you don't need to dump them. the bottom line, trump or no trump, we've got 13 out of 15 dow stocks that deserve to keep climbing higher even after the index broke above 20,000 today. my judgment, this move is not alchemy, people. it is not animal spirits. it's the earnings, which is the best reason to rally. and if the numbers from the other 15 dow stocks are even close to this good, we could have a lot more room to run. i need to go to phil in new york, please, phil. >> caller: jim, booyah. phil from brooklyn. >> phil, why don't you come over to bar san miguel and knock back a couple of modelos. >> caller: i wanted to thank you for bringing san miguel to brooklyn. >> thank you, man.

really the wife is doing all the work there, but i appreciate it. what's going on? >> caller: i need your opinion on deutsche bank, please. >> man, phil, it was at 14, 15. looked like it was going down to 10. that was the time to buy. i am officially in the deutsche bank. it's at its high now, but remember when we were trembling that deutsche bank was going to bring down the whole market? isn't that kind of like when people said -- when tim cook here when apple was at 93, and people says, though guys are finished. let's see, apple, came here at 93. where is it now? oh, look at that. it's at 121.88. i guess if you bought it when he was here, you did better than if you sold it. that's something. anyway, it's the earnings. there are 13 dow stocks worth more than what they were trading at now that we've seen the quarter. that's the best reason for the dow to keep roaring. on mad tonight, the dow hit 20,000 for the first time ever today. a historic day calls for a historic amount of time to here from you cramericans.

tend your tweets, your messages, hey, instagram, snapchat me. i don't care. then frozen, football, and the force. it's all behind the walls of the magic kingdom, but can you still by disney? after a roller costar ride on the averages, i'm taking a closer look, and i'm cutting to the core. could the trump administration make it a promising play in the oil patch? i've got the exclusive with the ceo. come on, stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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and it is done. >> our grandchildren will remember, hey, those guys were on. we were on. >> when it hit dow 20,000, we were on television is what you're saying. >> yeah, yeah. kind of like first to the moon. >> yeah, i'm sure it's equated to that. >> it is equated to that, david.

i mean come on. david loves to give me a hard time. anyway, the nail-biting anticipation, the wait, it is finally over. it was an historic day on wall street as we watched the dow reach 20,000 and surface the key level first time ever. the milestone is, i would say, a symbol of strength, but i don't want to lose sight of the fundamentals. remember, these are stocks in an index, and the stocks are backed up by companies. for weeks we've actually waited for the dow to cross the line. some people got to negative and tried to short it. some investors are wondering if the rally can continue and that's where i come in. it's not about what happened yesterday. it's about what's going to happen in the future. your questions have been pouring in all over facebook and twitter. yes, the voice of cramerica must be heard. as always, i'm here to help you make sense of the action. as we did with the inauguration, we're going to take -- this is a 2017 thing. you might see a bunch of it where we're just going to talk to you. we know that you have a lot on your mind. we know that we have all these different new social media

devices, new for someone like me, but old for someone ten years ago. they let us communicate directly, and that's what the show has already been about. our first question comes via skype, older technology but new to the show from jill in connecticut. jill. >> hi, jim. how are you? >> i'm pretty good, jill. how about you? >> i'm doing well, thanks. thank you for all you do. i love your show. you have a fantastic team. >> i have an unbelievable team. i tweeted today that my team tries to make me look good much to my own chagrin because i often work pretty hard to not look good. they make me look good every day. look, we have regina, who today when we knew that this thing was at 20,000, we had to bust the show. that's not a fun thing. we have a whole show planned and suddenly we say the heck with that show. we've got to do a new show. b what do you have? >> my question, jim, is the dollar has had such a big run up. you know, the high dollar can

have a negative impact on multinational corporate earnings. what happens in the dollar continues higher? >> you know, jill, it's funny. i was going over the ibm call, the procter call, the j and j call, i actually read the calls. i'm like my kids are grown up. none of my teams are in the playoffs. ki do whatever the heck i want with my time. my wife thinks i'm completely boring. she goes out and i read the calls. most people are not in that pathetic situation. that's how i have the edge. and those companies, j and j, procter, ibm, they all explained it. united technologies, 3m, they all explained it where you felt, you know what, it's not their fault. they're doing incredibly well in their local markets. that's what matters. when the dollar gets weak again, they'll do great. in the meantime, i've got to tell you they have taken such unbelievable steps and are so much smarter than we think that this worry about the strong dollar, i'm telling you they thought of it, and they've thought of it hard.

and a lot of these guys deserve more credit than we give them. that's what's happening in this quarter, realizing these guys aren't idiots. they weren't born yesterday. and they figured out a lot of how to do the dollar. that's why it's not mattering as much as you or i had thought. how else can i help? >> thank you. what about with the pullback? i mean, you noknow, what about there? >> how do you view a pullback? i think the last ten days before the inauguration were days where people said, you know what, we're not going to get through dow 20,000. i got to back away. the crazy man coming into the white house, who knows what he's going to do, blah, blah, blah. you see it on twitter all the time. i think there were people who were set up to dump stocks. once he took the oath of office, because they just felt that was it. and the whole rally was leading up to the inauguration. i have felt traditionally that the rally is based on the profits that companies are reporting. we had 15 of the dow stocks reporting. only two of them so far were

bad. so anyway, jill, that's what makes me think that we're not done. i'm a little more sanguine than others. don't confuse it with complain sency. if the ratio were 13 bad, two good, i would say we're on thin ice. we're not. i thank you for the kmiend comments. let's take a message from facebook, nick k. asks me, can you please tell me how trump will increase interest rates with so much debt? all right. well, okay. economic activity drives the price of money. if we get more economic activity, which is what i think we're having, then i think that the price of money goes higher. it's going to cost more to borrow. if it costs more to borrow, the banks make more money. what's the largest group in the s&p? well, it depends on the bay, but banks and technology. we get banks up and technology up, that's a huge part of the s&p. we didn't used to have that. that's what makes the coloration of this market so strong. it's the financials. i'll take higher interest rates. we need three rate hikes, and we need them in 2017. how about sherry in illinois,

sherry? >> caller: hey, jim, how are you? >> sherry, i'm pretty good. i got to tell you something, i'm liking the fact that there's some people who came on air over the last, let's say, ten years and said we'd never get here. and i'm trying to figure out whether they should have crow, crow with maybe some gray poupon. how about that? what's up? >> caller: anyway, i really need those 25 years of accumulated business and market wisdom, and i'm not sure which hat you're going to have to put on, whether it's the dr. cramer hat, the professor cramer hat, or ur might even have to borrow matt damon's good will hunting for this one. >> matt damon, i have not been confused that often. i like that. >> caller: okay. i'm really concerned about the new protectionism policies, especially regarding less imports and more exports. how will this affect a company's bottom line if they have to remove and replace steel inventories and, seriously, do

we even have enough domestic u.s. steel for a huge pipeline and pipe replacement project plus enough steel for new bridges plus enough steel for new autos plus enough steel for new factories plus maybe even some new u.s. navy ships, and how about enough steel for a yuge border wall. >> sherri, these are all great questions and you're really talking about the tradeoff that i'm concerned about. i have historically been for fair trade. i think currency manipulation has hurt the united states. but it is questionable whether we have the steel. i have always felt we should have more of a steel industry just for the defense industry alone because you need steel. no, we don't have enough steel in that situation, and it is of grave concern to me. and the companies that need to buy steel have going to have to pay too much, but that doesn't mean we should allow the chinese to take away the jobs anymore. remember what the chinese did to our steel industry. they took away our jobs and they sent their darn pollution over to california.

they took the jobs and they gave us the pollution. thanks for nothing. all right. thank you for all your great questions. cramericans, i want you to keep them coming. we're going to do more of these on big days, all right? i want you to learn. much more "mad money" ahead. from film to fantasylands disney has been making dreams come true on wall street. tonight i'm eyeing what's next or the media congom rat. then yesterday trump cleared the way for the keystone and dakota access pipelines as a way to put america first. will they? i'm going to sit down with the ceo of core labs, science of the oil patch. and micron, seagate, and western digital have the short sellers just talking and talking. i'll cloouz you into the conversation and tell you what it means for your money. stick with cramer.

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for the past year and a half, disney, yes, walt disney, has become one of the most controversial stocks in the entire stock market. ever since it peaked at $122 in the summer of 2015, a fierce debate has been raging. i mean it is like a daily morning debate about nearly every single aspect of this fantastic company. in particular, investors have worried themselves silly about how cord cutting is causing disney's premier cable franchise, espn, to lose subscribers. this issue has been especially brutal because until not too long ago, espn was viewed as their most valuable growth property, and suddenly it stopped growing. as a result, disney stock has been a total roller coaster, plunging from $122.18 months ago down to $86 and change last february before finally catching fire again over the last few

months, coming back to $108 as of today. the reason for this repeated change in disney's fortunes, the rest of disney's business. the rest has been doing so well that investors have finally stopped fretting so much about the subscriber losses at espn. even though the stock seems to be back in uptrend mode, this battle of opinions keeps raging. just last week we got the perfect illustration of the disney dichotomy which had my head spinning not unlike the exorcist frankly. goldman sachs upgraded the stock from hold to buy, raised its price target to 134, but then the very next day, bimo capital downgraded it from market perfect to underperfeorm, from hold to sell, now, regular viewers now i just absolutely love it when we get this kind of genuine analyst gun fight because these dueling pieces of research clarify the best

bullish markets and best bearish ones. it makes it so that you're ready for the down side, and the timing here is particularly helpful given that disney reports in less than two weeks. let's have a good old-fashioned face-off, lay out both sides of the story and make a judgment about who's right. why don't we start with last tuesday's upgrade of disney by media analyst drew boors. there wasn't much e kwif kwags in this piece titled the mouse will roar, upgraded to buy on fiscal year '18 growth acceleration. translation, they see disney's business booming so strongly next year that they're upgrading it right now to get ahead of the stock's strength. goldman's reasoning, for starters with the stock's post-election outperformance, they point out shares are pretty darn cheap on an historical basis. it deserves to be trading at

$134 based on their earnings estimates for next year. speaking of earnings, goldman believes that disney can generate 14% earnings growth in 2018 fiscal year. but the 2018 story is so compelling that they're willing to look past this year's much more tepid numbers to pound the table on the stock. they're willing to look past the valley. gutsy. so how is disney going to deliver those numbers and earn its stock a premier price? goldman sees forge major catalysts here. i want you to know all four because you may need to be thinking about these if it starts dropping with they report. disney's film slate with two movies, not to mention the next avengers seek well. i love the avengers. and then three more marvel movies. these franchises are all reliable money makers, which is why goldman expect's disney's

studio entertainment individual could deliver up from 8.6 billion this year. it's no longer episodic. it's just clock work. second, goldman believes that the espn headwinds, the subscriber losses that hammered disney stocks in 2015 and much of 2016 may abate in the not too distant future. the key here is that the stock market already seems to be assuming that espn will keep losing subs at about a 2% clip in perpetuity. in other words, the weakness is already baked in according to goldman. if anything good happens like with the streaming service that espn is launching this year, which i think is going to be a home run, it should cause the stock to go higher, not lower. third, the theme parks. hey, that's still part of the game here. from this year through 2019, disney is rolling out some major new attractions at the parks including a star wars-based set of rides. that brings new people who haven't been there lately. that's what happens. you get repeat visitors. plus they expect shanghai disney to start breaking even by next

year. plus disney is a total trump stock, trump stock, as they're the media company that would likely benefit the most from our new president's proposed corporate tax cuts. disney pays -- if the trump administration can simply cut down that corporate tax rate to 25%, then goldman says that should boost the company's earnings per share by 9% next year. >> trump stock, trump stock, trump stock. >> how about the bear case? the very next day after goldman upgrade,by mow capital's daniel solomon, he downgraded disney from market perform to underperform. wall street speak for sell. it read like a direct rebuttal to goldman. down grade to underperform. too early to own for 2018. remember, i told you goldman says you got to own for 2018. bimo acknowledged that sentiment

has turned positive on disney has investors have become less worried about espn's issues and more focused on next year's film schedule. but as they put it, this positive return comes to early, and the risk/reward skews negatively. bimo slapped an $88 price target on disney, and in particular that's bears see three specific negative catalysts that can send the stock back to the 90s. first they think these nielsen monthly cable subscriber numbers, they think they could be real ugly. >> house of pain. >> this year. these are some of the same figures that so often pummeled disney's stock last summer. they also think we shouldn't get ahead of ourselves by assuming the box office numbers will be so incredible. second, they're worried about the fact that investors keep badgering disney to make a transformational acquisition. they think it would hammer the stock in the short term if disney were to pay through the

nose to buy a company like say netflix. that would be very expensive. third, this is the one that i actually kind of agree with them on. there's the ceo's succession issue. we know for a fact that the company's fabulous long time ceo bob iger will be stepping down in the middle of next year. we don't know who iger's successor will be. there's no heir apparent, but whoever it is, it's awfully hard for me to imagine them being better than iger. that's a real negotiate. i don't want to say it's the only thing i'm concerned about but it is a worry for me because i think iger is fabulous. i think both the bullish arguments from goldman and the bearic arguments from bimo have some merit. to me, that says the risk/reward is still in your favor and the bulls are right. bottom line, it may seem crazy

to look through this year and bet on a stock based on the stock of the -- but we do have a bull market going here and disney is a fabulous company. it never should have traded down to the 80s in the first place, which is why i regard the stock's rebound back to 108 as being the first electric ofleg term rally. i believe disney has got more room to run. i want to go to alex in massachusetts, please, alex. >> caller: hey, jim. thanks for having me on. i wanted to get your opinion on the coca-cola company. i've had this stock for a long time, and the dividends have been good to me. are they going to continue to grow, or is it time to move on? >> look, kent is retiring. i think he set the company up well in a kind of coca-cola light to be able to beat the numbers. i happen to like inja knew which and her model, which is snacks and drinks and her move to more natural, and i think that has more staying power. i prefer pepsico to coca-cola. pepsico is cheaper.

richard in arizona, richard. >> caller: hi, jim cramer. i'm richard from minnesota, and also i'm in arizona. my question is about general electric. i'm a retiree of ge, and i have watched reginald jones, jack welsh and jeffrey immel run the company, they seemed to have had similar results, however mr. welsh had unbelievable results, and four of his officers have run companies like honeywell, boeing and home depot and all with tremendous results. my question is why has immelt fallen behind? >> i'll tell you, honest to god, he was dealt a bad hand of way too much finance. but since then, i think there's an unclear strategy, and the execution has not -- i'm going to say the execution has been suboptimal, and some of the moves have been ill advised. the last quarter was along with verizon so far the worst quarters in the dow. i don't even know if they would disagree with that frankly.

all right. dreams do come true. there's a bull market in disney! i think it's off to the races. much more "mad money" clueing my exclusive with a scientist of the oil patch, core labs fresh off its earnings. then when it comes to tech, is it time to grab the reins and hop on a play in space? i'm investigating. and all your calls rapid fire in tonight's edition of the lightning round! so stick with dow 20,000 cramer!

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regardless of the day to day fluctuations in the price of crude, i think 2017 is going to be a pretty good year for the oil industry, especially the oil service plays and the pipeline operators, the trump administration might as well put drill, baby drill on the white house line. that's how pro-petroleum these guys are. meanwhile, opec has cut production, and it's been meaningful, allowing oil to move back into the 50s where it's a lot more profitable for our domestic companies to drill, which brings me back to core labs, the company i always refer to as the scientist of the oil patch because they use their technology to analyze fluids in

oil reservoirs. in short, more drilling means for business for core labs. the company just reported after the close and they delivered a one cent earnings beat off a 40 cent basis, higher than expected reven revenues. the stock didn't do much in after hours trading but i think that's because it had already run so dramatically going into the quarter. keep in mind core labs had already climbed from $96 on the night of the election to nearly $124 as of today's close. after that kind of move, you wouldn't be surprised if the stock sold off after the quarter even with solid numbers. i think things look good here. let's take a look with david demshur, the chairman, president and ceo of core labs to learn more about the quarter. mr. demshur, welcome back to "mad money." >> hey, jim. thanks for having us back on "mad money." our 19th appearance on cnbc and our 14th appearance with you on "mad money." >> well, thank you, david. thank you for remembering. you know that we've been big

believers that you would be a company that withstood this downturn without a problem. clearly from the stock prices and your return on investment capital, you have. you predicted a v recovery. you predicted maybe a few dollars lower, but all we still on target to go higher give the fact that maybe demand pickup and supply cutback? >> yeah, we believe so, jim. if you look at the ia numbers, they think that the demand is going to be 1.4 million barrels in 2017 over the 1.3 million barrels that the increase was for 2016. moreover, the opec cut of 1 million barrels a day is going to be very helpful. and remember we also have countries that are headed for big declines again in 2017. that includes mexico, venezuela, colombia, angola, kazakhstan just to mention a few. higher we go from here as the

energy complex gets tighter, we've had four consecutive months of draws on inventory, and we think december makes the fifth month. so the energy complex is tight, and it gets tighter. energy prices go higher. activity levels go higher. core labs stock price goes higher. >> let me give you a possible fly in the ointment. is it possible that you are so good at what you do and you are in all the key basins in america, that you have been able to find far more oil than we thought existed, so much more that we in this country may actually be impacting the price and keeping a lid on it because we can make so much more money with oil because of your technologies from others that it's worth pumping the heck out of the place right now? >> well, yes, certainly, jim the u.s. did have an impact over the last several years as production increased significantly from about 5.7 to about 9.7 million barrels. a lot of she's sweet spots have been drilled so we've got to

look at other technologies and techniques to get more oil out of maybe the tier one or tier two properties that are not in the sweet spot. one of those has to be enhanced oil recovery in these unconventional tight oil reservoirs. right now recovery factors are about 9% on average from these oil laden shales. using some e.r. technology that's being developed at core lab, we think we can increase that recovery factor from about 9% to mid-teens, maybe as high as 15%. that makes a whale of a difference on the return on investment capital for our clients. we've got six projects under way right ndnow, some cutting-edge technology. so more good stuff to come from core lab t. >>ab let's use that because you mentioned -- we happen to be very big fans of pioneer on the show. we've had pioneer on a number of times, and you actually -- you call out pioneer as a company you're working with. pioneer has fabulous acreage in the permian. they talked about how they have a very low break even. with that kind of discussion you

just mentioned, can the break even fall even lower again so our oil companies -- we should no longer say, oh, 53, they're not making anything. 53, they could be minting money? >> i think that's right, jim. at $53, i think you're seeing some nice return. pioneer natural resources happens to be one of our most technologically sophisticated clients using this new technology, including some of these e.r adventures that we're lookingth at. also we had just signed an agreement with them and the old hughes research lab to look at some machine learning expert guidance for identifying better reservoirs on their 800,000 acres present in the permian base in. >> oneen last question. president trump is, i say, the most pro-fossil fuel president this nation has ever had. what does that mean for the oil business, and what could it mean for core labs if he stays true to that message? >> well, i think the amount of production and activity levels is going to go higher. for core lab, that's good news.

moreover, jim, i think he's interested in ramping up the offshore. if wee look at one of the golde places to produce, it's in the u.s. gulf of mexico in the deep water. activity levels there are at multiyear lows. i think that will change under the trump administration, and deep waterti projects and technology is really right in the middle of the fairway for core laboratories. >> boy, that would be huge. once again, congratulations on being the highest of all the companies in your industry when it comes to return on investment capital, which is really incredibly meaningful metric. congratulations on a great quarter, david demshur, chairman, president, and ceo of core labs. good to see you, sir. >> you're welcome, jim. we'll see you nexte, time. >> i've got to tell you, if you believe like i do that we're not going to see low 40s in oil, a company like this which can help companies make money at $30 oil, $20 oil,oi is going to be a winner. "mad money" is back after the break.

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>> announcer: lightning round is sponsored by td ameritrade. it is time! it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire. you tell me the name of the

stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with jerry in michigan, jerry. >> caller: jim, good to talk to you, buddy. i've got a question on box. >> look, i thought aaron did a great job the last time he was on. i said buy. it was at 14. it's at 17. i think it goes to 20. let's go to anthony in illinois, anthony. >> caller: hello. booyah, jim. >> booyah. >> caller: thank you for taking my call. >> what you got? >> caller: my question is for a company called chem warsco. >> that one has already left. i'm wait too late on that. let's go to ricky in pennsylvania. >> caller: hi, jim, zoe serks. >> i'm not liking the restaurant stocks. i think they're too hard to own. stephen in washington, stephen. >> caller: jim, my question is when is it time to buy hertz? >> you know, i got to relook at

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it is done. >> dow 20k for the first time. the question now is will it hold? >> it's clearly from a techni l technicalal standpoint something that's sustainable. >> now is the time to put up or shut up for the markets. >> there are 13 out of 15 dow stocks that reported so far this quarter that i would buy.

i think that that is why this market is rallying. >> donald trump tweeting out this morning, great, dow 20,000. >> but can trump keep this rally rolling? >> we used to call it riding the tiger as in are you willing to ride the fastest, most ferocious beast in the jungle to get where you need to go, and can you hop off before it gets real angry and tears you to shreds? >> buy, buy, buy. >> sell, sell, sell. >> historically few stocks embody that wild ride than the semiconductor names and the disk drive makers. they tend to be the biggest boom bust stocks in the entire stock market. there are times when their moves have been so braekt taking that you had to stay one or two things to yourself. either, how could i not have ridden that darn tiger higher or, thank heavens that tiger didn't eat me when the jaunt ended. but what if it only looks like you're riding the tiger?

what if that tiger has turned into a race horse with a saddle, a thoroughbred? a thoroughbred that could have multiple quarters or years of upside. what if the beast has indeed changed its stripes? that's when investors, particularly sort sellers but momentum buyers are debating with the stocks of micron, seagate and western digital. micron is the protest typical boom bust stock, the one that every few years is the best performer in the s&p and then every few years is the worst performer in the s&p. that's because the type of chips that it's known for, the most basic commodity in every personal computer with exhibit tightness in supply that allows the company to raise prices, but it's an endless cycle because eventually prices get so high that they decide to spend a few billion opening up some newfoundries to get a larger piece of the pie. that floods the market with new

supply. micron stocks gets eviscerates. so if you're riding the micron tiger, you needed to know to get off before you start seeing foundries even being made let alone producing d-rams. that's why micron recently decided to move into flash memory. that's another form of supply, another form of chip, because there simply aren't as many companies competing for customers in this flash business. there aren't that many new factories being put up because the return has been terrible. now tigers themselves typically don't change their stripes. it's almost a given that one of micron's asian competitors will build out new capacity. nevertheless, in my recent interview with steve milligan, the ceo of western digital, which makes both hard drives and flash memory, he told us flash had gotten very tight of late, meaning that pricing is better and that's allowing a lot of profit to fall to the bottom line. i've been pushing western digital sind it bought san disk,

which is a fantastic flash memory company. basically it bought it for a song, and just like micron, it's now reaping the harvest of that same cycle. but why did tech do so well today? what was the big thing that happened? it was last night. along came seagate, which is a pure disk drive maker and they talked about how business has suddenly exexploded because of new uses for large scale disk drives, note aably the data center but also for surveillance. their average selling prices are saying strong. seagate stock vaulted almost 14% today. it helped propel western digital stock by 5% and micron's buy 3%. that's some powerful pin action that extended all through technology. that's what drove things. so now we have d-rams, flash, and disk drives all much stronger than expected. when these cycles are in the sweet spot as they are now, you're riding a turbo charged tiger. it doesn't matter who's president as long as there's no new capacity. these stocks will keep going higher. we don't have to wonder

something has changed with the customer base. are personal computers back, does the internet of things rier more storage? we don't know, but what we do know is getting on this tiger now -- now -- seagate, micron, western digital is still the right thing to do. maybe it will turn out to be a thoroughbred and it could be a multiyear ride. for the moment, those, after seagate's remarkable quarter when so many were betting against it, let's just say climb on board. enjoy the ride. stick with cramer. and stick around for the cnbc special report. dow 20,000 at 7:00 with yours truly and a fabulous cast.

don't go anywhere, cnbc's special report dow 20 k starts right after this. i'll be there with carl ask kelly. every angle covered just for you. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer. see you tomorrow and in one minute!

. we do expect the dow to crack. a number that's seemed out of reach. concerns over global uncertainty have quickly given way to optimism sending an uneasy dow to a benchmark of 20,000 points. >> we closed on the dow jones industrial average. >> we are going to be cutting a