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tv   Mad Money  CNBC  October 25, 2019 6:00pm-7:00pm EDT

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have a great weekend "mad money" is up next >> my mission is simple, to make you money. i'm here to level of 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. i do not want to make friends but make you some money, educate you, train you what's going on so call me call me or tweet me @jim cramer. now we're talking. you give this market enough fuel
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with better-than-expected earnings and you have what we have today, dow gaining 103, nasdaq, boy, .70 nice when we finally get to the point we can focus on individual enterprises, we would be surprised at how well these enterprises are doing. ♪ hallelujah >> so far, so good but next week was way too many jam-packed earnings to keep track of, except for me. let me give you highlights monday is expected to be a downer but i'm looking for a reason to buy, so that's at&t. you might get a chance to by this midland quality phone company, yes, you heard me, once we scrutinize what will probably be bountiful cash flow from the time warner acquisition. we also hear from the one retailer that may disappoint us,
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amazon it used to be cv sfrmt but i think cvs are fine because they went and bought aetna. then alphabet reported -- i can't remember the last time alphabet reported a clean quarter. it's always confusing. after the minority-so-hot numbers from twitter, i fear another head-scratcher who matters now? i care about one thing one thing only, acceleration in google's cloud business any sign google's taking point from azure or amazon' is services, believe me, not what naysayers said, it would end this stock to all-time highs that's what we need, cloud here's what we will mahear from, beyond might, who once got burned but i think will be pleasantly surprised by the sale it won't matter. the lockup on insider sales is expected to come to an end tuesday. once that stock hits, i think
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this $6 billion company will have to be worth a lot less. tuesday starts with mastercard simple, ma paypal went up and visa, i think mastercard will deliver a priceless quarter. let's just hope for a pullback monday to see if they can get in the stock for tuesday. and then there's merck, who got hit after bristol meyer told them about a trial that might make them a tougher competitor tumor. but when merck reports, i expect to see something to perfection, another buy ahead. how much is purdue losing per day? might as well listen to the call and find out i remember a time when the strike at gm could send our whole economy into a recession and we cared about tesla earnings, which were oddly he better than expected we also get observes from cramer fav shopify. i bet it delivers a clean, solid beat we have dispatch from delivery
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guru grubhub this is important. i don't think there's number room for grubhub, uber eats, doordash and post mafts. these companies are bashing their head against each other, which is i predict pain! at the close we her from amd if intel is doing as well, and we know it does, what a move today in that stock. that means, well, you should go buy amd. it was not up enough at the independent of the quarter we knew instel would meet dmajd for all kinds of chips including processors, their bread and butter so i'm a big believer in ceo lisa sue so i remember you buying some amd next week. doesn't matter if we get a negative tweet or nonsense about the fed, that probably will happen if these numbers are good and by the time wednesday rolls around, i expect to hear art tenors saying this company did well, this company did well, you know what will happen, the federal reserve doesn't need to cut rates. that's garbage we have industrials struggling and we know the dollar is way
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too strong a rate cut is what we need to turn around automakers and allow exporters to compete fairly globally if we get it, the markets should roar again and i do believe we will get it. our rates are too high versus the rest of the world. do not let andy's people, pointy heads, tell you otherwise. our pal fed chief secretly knows it maybe he comes out and says it's true after that we have the most particular element of earning season because both apple and facebook report. i can't stand when apple stock runs up in the quarter and lately it's on a wild gallup i have been telling you at the own apple, not trade it for years, i have been right but if the company will rally, they have to do a series of things, talk about strong credit card adoption, the deal with goldman, give us hours upon hours of programming and break out the airpods and watch as separate businesses so we can see the big service stream tall order. i wouldn't be surprised if apple actually falls short and the stock ends up pulling back to
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give you better entertainment. what about facebook? unfortunately the mr. zuckerburg goes to washington is over, where he played the role of pin etta and now we can get back to business i expect good things, especially about instagram, kwwhich is whyi like the stock at the head of the quarter. and we hear from bristle myers, the one cancer therapy drug merging with sellteen. why it's running high this week, i recommend buy in anyway. that's how confident the superpowerhouse the ceo is putting together with this deal. i championed it when the stock was 45 and they announced the bristol cell gene combo. this will be the quarter when the ceo's winning streak finally runs out and his company misses
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the numbers. after a lot, estee lauder has had a lot of exposure to hong kong and mainland china but most of these have not had the privilege of meeting frayedia, a brilliant executive. he figured out how to harness the smartphone, camera part, and social media, which make people feel like they need to look beautiful every second of the date in case they got hcaught o a photo on snap or instagram how about friday we hear from the two best oil companies, skron and chevron i think they will show you it doesn't matter what a fossil fuel producer says nobody cares you need to recognize the oil and gas category has become the new coal, with the millennial money managers money managers, they just want to own these watch out wall street reacts to these numbers. i think these stocks may be finished unless you're an income seeking investor who believes
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yields are safe and doesn't mind they won't be able to grow a stagnant oil environment, which i suspect will actually last years to come bottom line, listen, there are dozens of other companies i didn't get to opine on here because we simply don't have the time i wish more executives were willing to spread out when there are report dates but i have been begging that for years and nothing changed. still, after the better-than-expected numbers we've seen this week, i'm confident about next week, even if the day's loser earnings reports means i won't be able to get, let's say, one wit of sleep next week. instead, i'll grab a couple of naps in the greenroom! herman in texas, herman? >> caller: hi, how are you, jim? >> i'm good, herman. how about you? >> caller: i'm fine. i'm calling about twitter. it's been as high as 45 and they reported terrible earnings and it's down to 30 now but it's part of the lexicon now. we use twitter like we used to use xerox as a game. i was wondering if there's any -- a good entry point there? >> i thought it was tempting
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while day today. and i said enough is enough. what hurt the stock more than anything else in the world is attitude nall. they sounded so down, you felt like wow, maybe it's not as good i think you can start buying here but they need a -- let's say a cheerleader in chief there. because, wow, it was just so negative that even i, a big twitter supporter said, uh-uh, no way, no how marla in mississippi le marla >> caller: hi, jim first, thank you very much for diligently doing your home work to put together such a great show. >> kru >> caller: my question concerns shares of the bankrupt ultilities company pg&e. the shares plummeted again today upon speculation its tower sparked another california wildfire in light of the prospect of additional liability, do you
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think the company can successfully emerge from bankruptcy and be a good "mad money" investment or is it too hot to touch >> i think too hot to touch and it wouldn't be the common stock. i remember when littlingio had a problem, long island lighting, and you had to buy all other sorts of pieces of paper than common stock common stock does not intrigue me i don't like the concept it doesn't intrigue me let's go to michael in florida mr. michael? >> caller: hi, how are you >> i'm doing great >> caller: thank you for taking my call. i'm calling about bed, bath and beyond today, bbby they're getting a new ceo. he takes over november 4th from target. >> right >> caller: i'm in the stock about $12 and it closed today at $14.27, down 5 cents or so i'm up about 20% should i -- should i take profits or should i wait -- >> no, you should not take profits. i have been working all week
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about trying to do a really good piece about this company and this stock and this executive and why this plan is going to work i know it's very controversial, but i think the activists have gotten the team together correctly. this is a stock i don't want you selling. i think you can return to $18, $19. that's when we will address whether it's time to take some profits. this week's shown us what can happen when we finally get to focus on what real companies are doing rather than just the indices and bomb market. next week could be the same thing. tonight, american airlines is flying high after earnings today but can its tesh lent market and boeing problems make it so it can get out of what some people think is a stock bust? we will sit down with the ceo. are you buying what honeywell is selling? i will explain and really one of the most influential people on wall street i didn't say woman, but -- but
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people now she's looking to help in the breakdown of the walls -- break down the walls they face i do not want you to miss my exclusive with the co-founder of ellevest i'm telling you, you must watch it stay with cramer pacifica: ted! goin' oneighbor: yes. takin' it off road station wagon? you know it's an suv! i know for fact your suv does not suck. why is that?
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♪ >> is it finally time to get more constructive on airline stocks despite low prices and strong consumers, airlines have been struggling most of the year. smch that is due to boeing 737 max catastrophe. some is due to tough labor negotiations and some of it comes down to competition. even so, these have been especially hard hit. take american airlines, the stock is down from 50% highs in 2018, yesterday american did something interesting, reported mixed quarter, small time miss,
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custom b instead of going down, the stock actually rallied 4%. by the way, another 4.9% today when a stock runs on not-so-hot numbers, that's called a bottom. and after a decade of colossal spending, first us airways and then buying a score of new planes, the company can now get away with spending, let's say say lot less, to balance the balance sheet. let's talk to the ceo of american airlines, doug parker mr. parker, welcome back to "mad money. good to see you. i was so heartened on the call because you're solving labor problems, which you said is a must you're talking about urgency in making the shareholder let's say make much more money but you're also saying that the -- because of the end of the big spend, now you can start returning to -- maybe even buy back stock it's the right moment.
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>> it is the right moment. look, we had to invest we merged tour lines that had not been invested in a long time we had to modernize our fleet. we merged the airlines in 2013 and over 6 years spent $31 billion in capex for an able even our size, that's never been done before. but we had to do it. and now it's behind us though. we now have the youngest fleet in the business. we don't have those needs and it falls off pretty precipitously after averaging $5 million a year, it falls to $3 1/2 he next year to $2 after that. what that means is even if we don't grow our earnings next year -- which would be a horrible miss for us we certainly believe we can grow earnings next year but just for analysis, keep the earnings flat, we'll have $5.5 billion of free cash flow. >> there's an elephant in the room though. and the elephant is, as you say, boeing shareholders should bear
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the cost of boeing's failure, not american airlines' shareholders you said it could be $540 million pretax they could owe you. do they have the ability to even pay it >> that's for them to figure out. >> but they owe it, right? >> right that's our view. again, we're a customer. and they haven't provided the service that they were to provide their customers. they know that and the reality is the -- we've already borne all sorts of damages to our customers, to our team and to our shareholders certainly the shareholder piece should be borne by the boeing corporation, not shareholders. >> what do they say when you listen, hey, you're right, or you are the customer, and you're
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right, what they should be saying >> they have not said you're not right. so we will talk. it's hard to have final negotiations until we know what the real damages are and we don't know what the real damages are until the aircraft is back flying again that's what's important for us i do feel good about the fact once we are able to get down to brass tactics, we will come to the table and will be quite right. >> i have flied on american airlines i have never been on a plane that wasn't completely full so the people i'm with always turn to me and say, jim, i've got to buy this stock. i have never been on american airlines that wasn't totally full what do you say to those people given the stock is down 50%? >> they should buy the stock. >> because there are labor issues, competition. people don't see the full picture when they're flying a full plane. >> and what people paid to be on the plane. it's an incredibly intensive, incredible business. the fares are, in many cases,
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you know, if the entire airplane was full, the lowest fare would not even come close to cover rg the cost of travel it's a tough business. that's okay. we're okay with that but it feels a lot better of late and demand for air travel is really high and strong and continues to be. so we feel very good about it. >> i think finally on this call i'm starting to hear you're catching up. digitization, you're starting to catch up to the rest of the world in terms of what companies have done with technology, right? >> yes again, we have a lot of initiatives going forward and in some sense you're right, we're catching up with the rest of the world. when you integrate two airlines, it sets you back on your technology you have to take two systems to make one we it to integrate, not innovate, the unfortunate phrase we had to keep saying. now we can innovate and have a phenomenal team doing that incredibly well and making changes almost every month there's some new invasion comnoa
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helps our team. >> like many people around the country, i made my thanksgiving plans and christmas plans. some include american airlines. >> thanks. >> is it because things are robust, it's always too late for a lot of people? where are we >> what's that >> you guys are really busy already. you're booked solid for a lot of flights already, thanksgiving, christmas. >> of course. >> so consumers are good. >> demand is really strong, it's always strong over holidays but it remains strong through all periods through all regions for the most part. everything that we can see, we're horizoned in great people don't purchase their tickets particularly far in advance but we're also a leading indicator. what we're seeing is an increasing demand for travel. >> let's just talk about tbond situation. one, are you going to say do your pilots want massive retraining on the new planes >> our privates are heavily involved in this process with the faa and boeing of course, we're going to make
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certain -- there's no american airlines pilot that will not file an airplane if they don't feel adequately trained. so of course they will be adequately trained. >> is my wife leeszia asked me to ask you this, she said ask doug whether he would be willing to put gwen, jackson, luke and elisa on a max >> absolutely. and they would be happy to go with me. >> because people are saying, listen, i don't know if i want to be on this plane. why are you willing to put your wife and kids on that pilot? >> if the american airlines pilot decided it's okay for he or she to take that plane up, i'm okay to go we have the best pilots in the world. they understand the aircraft they fly they will never take up a plane they don't think is entirely safe once we're to that position, which would mean the faa, the arbiter of safety throughout the world and is taking this obviously incredibly seriously, the faa will have certified it an american airlines pilot
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decided it's safe for he or she to pilot, we're on. >> that's the first time i felt good about that. first time. >> all right. >> that's doug parker, ceo of american airlines. this stock is ripe "mad money" after the break. with esri location technology, you can see relationships. connections. patterns. you can see what others can't. ♪
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make nature's bounty hair skin and nails step one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy. ♪ rufrly a year ago, longtime kramer favorite honeywell broke itself up into three separate companies. spinning off their auto parts business as garrett motion and climate control/home studio business residualed. i own honeywell with the travel trust and you can follow me by joining the action alerts.com club and you know i love these breakup stories. i always feel they create good value. however, some spin-offs are a lot more enticing than others.
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sometimes a big value breaks itself up because it's sitting on an underappreciated asset that's not getting enough attention. sometimes you spin out of the business because you scrub it and want to wash their hands up and that's what honey well did they washed their hands. super cyclical auto parts and residential division the new, meaner honeywell can focus on industrial space, nonresidential and more consistent markets that was a brilliant call. in the last months, they have been hammered, ra sidot, in particular, just getting entirely owe blivated this week in a fashion i didn't think was possible now that we've had a year to observe these three -- these new independent companies, i think it's worth another look, along with honeywell itself. have the spin-offs come down to the point where they're attractive here? no let me make this crystal clear honeywell is a very smart
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company, run by the experienced dan check and you don't want to buy what he's selling. if they don't want auto climate controls here, maybe you shouldn't either let's look one by one starting with garrett motion. always been the best in its industry they sell turbochargers which i always loved when things were good in the oil energy, electric good and software for cars and trucks, always considered to be the gold standard they had the struggle to be the sell-off in the market last year, plunged all the way down to $11 by early december after that it briefly got its root back. by late april traded at $17.87 but then it rolled over again and has not looked back. the darn thing has been cut in half over the last six months. no wonder honeywell wanted it out. i think the weakness makes sense. garrett's auto company are in dire straits, not to be confused
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with the band dire straits gm is not the sultan of swing. the report the other night was not that good. but if we're building fewer cars, they will serve fewer turbocharges this is a value trap situation that you often find right before a cyclical downturn. at the end of march, garrett looked like it was selling fourth times earning you see what that is, a huge red dplag -- i have to throw yellow flag, i'm on the wrong side, i'll throw a yellow flag, stocks don't get that cheap unlessle wall street believes the essence is about to be crushed in july, sure enough, garrett reported hideous revenue shortall and slashed growth and now the stock, what can i say, it's become a total punching bag. here we go we know garrett reports again in two weeks and i doubt you will like what you hear why not? because last month we learned the cfo, chief financial officer, will be leaving the company to, quote, pursue other
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interests. you hate to see a torch executive live after just one year as an independent company even if this particular executive has been doing a bad job of forecasting where the business is headed it's just not a sign of confidence for the moment, garrett needs to show a story in an awful market and we need to see evidence in the market before we think of owning this one. i don't see such a turn. how about this re-sidot, maker of the home climate control, security systems just like garrett, this thing got hammered right after the spin-off because the market was rolling over unlike garrett though, re-sidot didn't get as much of a bounce, climbing as high as $26. for the next eight months it worked its way down to $15 as the company posted a series of not-so-hot quarters. which brings us to tuesday night, when resideo's stock
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plunged nearly 40% the next day to $9 and change with the mortgage ratio, you would think they would have a winner here. you would think business would be better to a stock linked to the red-hot housing market no they slashed its four-year forecast even worse we learned, yep, the chief financial of this one is leaving too. it's highly funny that they're losing ceos here they said they're conducting a comprehensive prasal and financial review that's not something you do when times are good and something they should have thought about before spinning it off turns out they're having specific issues. the legacy portfolio thermostat security systems are outdated, when everyone wants connected versions with google or amazon, they're building their own smoort systems and the rollout has been marred by execution
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problems not saying housing is a much bigger market but management is cheap here management can't seem to get out of their own way my view, don't consider buying this one until we see some sign that management has a plan -- a plan to turn things around if you're catching up with these spin-offs, i have more respect for the actual stock honey well, the parent getting rid of re-sidot at the moment the economy peaked was brilliant. it's up 30% for the year the environment has been tough on the industrials they would be doing much worse if they held on to the housing and auto divisions instead they're in surprisingly good shape last week reported a robust quarter, small revenue and mostly okay guidance was it perfect no but it was nabbage, that's right, not as bad as feared. they saw strength in products, strength in process solutions and strength in industrial software the two spin-offs have been tribute for their margins, that's why the stock caught fire
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in the news, rising to $171 today. i think it has more room to run. that's what i'm telling club members. bottom line, i love it when a company breaks itself up to unlocked value for shareholders but not all breakups are the same sometimes you spin off for fabulous business to get an independent valuation. sometimes you amputate the underperforming divisions that are holding everything back. when dam check split the honeywell into three separate entities, it wasn't amputation he cut out housing and auto to save the rest of the business and it worked. that's why honeywell remains a buy but garrett and re-sidot stay in the penalty box until they figure out how to turn themselves around. richard in new york! richard! >> caller: so, james, thank you kindly for taking my call. >> of course >> caller: i thank you for my family for making a difference in our life with what you do. >> yes, yes! >> caller: that's a big damn deal anyway, i'm interested in a now
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stock and play for the long haul i was wondering if general dynamics is the play, especially with all of the distraction with boeing >> no, it's united technologies, which will be combining with raytheon and spinning out their business, the premium aerospace business in the world. so i want you to go with united technologies look, this is a tough one. i mean, breaking up is hard to do but in honeywell's case, it's a sign that steer clear of two companies that actually are the -- good companies seriously, garrett the best turbo charger, re-sidot may be sub standard but maybe someday. honeywell always been good much more "mad money" ahead. i'm talking to ellevest's ceo
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hird this was national business women's week there was one woman hi to have on the show, sallie krawcheck, the legendary ceo of merrill lynch's wealth management. she's got a new job as founder and ceo of ellevest, privately held visual investment adviser around women it's number 45 on the cnbc disruptive list. the idea is the whole industry is designed around men you might think this would be naturally gender neutral uh-uh, big difference. women tend to live a lot longer than men which means you have to put different thoughts entirely to retirement. that's a brilliant concept, which is why ellevest has been growing like a weed. let's check in with wall street legend sallie krawcheck, ceo and founder of aellevest, personal find and icon too. why women are getting more involved in money management, taking care of themselves and control of their finances, sallie, welcome to "mad money."
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>> so glad to be here. if i knew we were going to do disrupter, i would have brought the disrupter socks. did you know you sent out disrupter socks? >> i did not. >> what says disrupter more than socks? >> you got me stumped there. >> nothing. >> when i heard about what you're doing, and i'm a fan and a friend, i said it's about time and it's the right time, isn't it >> appreciate that when i thought about doing it and people said to me, gosh you you should start an incresting platform for women, my first thought was, that's such a really not very good idea. women don't need their own thing. there are plenty of options out there. and then the more i thought about it when i realized it doesn't matter if i think women need their own thing, the numbers were telling me that we do. >> it seems like that there is the ratio of women in the world versus women in this industry, particularly bad. >> oh, my gosh, it is a male-dominated business.
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the vamajority of financial advisers call it 85% the vast josht of mutual fund advisers, 75% and despite the research that tells you women are as good, certainly not worse, investors than men. >> i think, and you know i believe this, there is inherent discrimination in our industry jane frazier, terrific banker, just now elevated maybe one day a woman will run a major bank. isn't this in 2019 crazy >> here's the crazier part about it, which is that wall street as an industry is all about no emotion, just thefacts let's go after returns highest risk adjustment returns, no offense, cream rises to the top. yet it hasn't tapped into a really very powerful means of driving greater performance, which is cognitive diversity, which is often driven by diversity of gender, background,
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perspective, et cetera here you have in theory pure meritocracy that is not at all diverse. >> let's say i sign up with you. apparently growing a tremendous amount per movement i want to be part of sallie's army. what do i get? where do i start >> . >> we take men too i love to see on our digital size, our investing algorithm kills you sooner and men sadly has you earn more. we have a digital offering, which is where we started, which is an online experience tailored to women such as explicit ways as gender awareness of life expectancy but in some sort of smaller ways too for example, we learned that men will invest through verbiage, jargon i don't quite know what that is. here, let me go. women, whoa, let me get out the old finance dictionary we have about a thousand little differences. so we have a digital difference. we now have a high network business where we have financial
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advisers who are engaging with women and our allies as well. >> because you know my family, my situation, my wife was at one point an ex-wife, as you know. and i felt that ex-wives in particular are treated as if they are -- i'm going to say a prejurortive term -- dopes by the males in the industry. this seems like 50 prgs of the marriages end in divorce, a lot of smart women mistreated well, she doesn't know anything. you can be an end irof that. >> i don't know if i agree with every word that came out of your mouth but what i will say is us as women, society says you're not great with money let the man management 97% of women manage their money on their own at some point in their lives. when women outsource it to their partner, 70% have a negative surprise when the money management comes back to them. for some women the existing offering works just fine but there is a big need there for an
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offering that's really focused on women. >> people are listening to this and they're saying, you know what, how do i get shares in ellevest this sallie krawcheck, total winner i really like this idea for the company. but it's not yet, right? >> we're venture funded. we started from a dead standstill now i guess three years ago, almost three years ago. we've got some great investors in our company we tried to be truly mission aligned from who our investors are to what we do. melinda gates, digital adventures, penny from investor capital, the number of always investor capitals part of the me too movement, the female venture capitalists out there rethink impactp and large genderless investment investor. so we're trying to walk the walk and talk the talk mission based because one, it's great and fun to do but about the most powerful thing can you do to
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help a society and economy is get more money in the hands of women. >> empowerment. >> which is why so many of your viewers, which i guess quite a few are male, they may say why do i care? you care because of this mission. you also care because for the next generation, there's not one of us new york city matter how traditional you are, that wants our daughters to have less money than our sons. and this gender investing gap is costing our daughters hundreds of thousands, maybe millions of dollars, and for the dads out there, you do not want your daughter caught in a job where she's being chased around the desk. >> you know that situation. >> you want that out. >> i worry every minute about it my mission is to have you on as much as possible, how about that >> there we go i like that mission. >> sallie krawcheck, co-founder and ceo of heroine of mine or can i say saint, of ellevest "mad money" is back after this
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♪ it's time, time for "lightning round"!
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and then the "lightning round," are you ready? casey in california! casey? >> caller: boo-yeah, casey from san jose, california. >> great to have you >> caller: jim, i have been a fan of yours since i was 14 years old. >> i love that, i love that. >> caller: i have had micro chip technology ten years and it's been stagnant the last two years. sell or hold >> it's too much, honestly, it's too much like texas instruments. i want to you make the switch and go into envideo, even knows how to run marvel if you think nvidia has had too big of a run. hello, craig >> caller: hello, jim. boo-yah. i just woke up with a 100,000 loss on taco bell's report should i keep it or sell it? >> mcdonald's stock could go down 15 points i do not want to be in el taco.
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gregg in arkansas. >> caller: good afternoon, jim cramer big arkansas razorback boo-yah to you see. >> now you're talking. what's happening >> caller: i was wondering what you think of a great company in my home state, tyson foods. >> i think tyson foods are doing a remarkable job they have the protein story. 0 stock has come down a lot. i think it's an interesting level. by the way, may i say their pea-based chicken dinners are dynamite let's go to bernice in nevada. >> caller: hello, jim. >> bernice >> caller: i'm here. >> you're up >> caller: jim, i love your show i'm totally addicted to it. >> wow >> caller: i have a question i bought chewy in july i paid $34 for it. and i have seen it going the other way. what is your opinion on it now >> the problem is, bernice, is what happened the market is going away for companies with fast growth and no earnings and that's chewy i think if chewy goes up even a
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little bit, i say get out of position if you're going to be in that, might as well be in amazon, down $130 i said good-bye $130 closed less than $130 and that's a better stock to be in. jamie in texas jamie? >> caller: hi, jim, thank you for taking my call. >> you're welcome. >> caller: my question is on progressive insurance. their third quarter net premium policy enforced growth looked solid, earnings per share a b but yet the stock outperformed 14% since july what's is your take? >> it's an uninvestable situation. the insurance stocks ever since travelers blew it, nobody wants to touch them. it's really too bad, they're not bad but i don't want to touch them and that, ladies and gentlemen, is the "lightning round" >> announcer: "lightning round" is sponsored by td ameritrade. ♪ >> boo-yah
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and this is a big but, sir, is there like a toronto raptors team maybe can he watch that. i wish i had a picture of da vinci for those who are not -- [ crickets ] where is the picture of da vinci? i was naturally miffed it was a miffing human sacrifice, dogs and cats living together! mass hysteria! i love english funds i love english funds marcia >> oh, my nose >> i have a dunce cap on i he kpeel like a complete idiot. i should have ton stadd in the corner and write on the black board is,000 times i'm an idiot ly have to spend this whole darn period with my dunce cap on. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists.
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and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ let me tell you something, i wouldn't be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. learn how homeowners are strategically using a
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♪ have we finally taken the possibility of a recession off the table? after this week, it sure feels that way on top of the lessening of the trade tensions with china, potential may be even for brexit resolution and high probability the fed gives us another rate cut next week, we're also getting some powerful evidence from earning season. evidence is suggesting the economy might be actually better than you think you know disdain the mac but i take the top-down approach where you start with the aggregate data and apply it to the market in general
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instead i like to take a bot manies-up approach, approaching a mosaic from every individual company. yesterday we got important pieces of that mosaic and i've got to bring it to your attention. first, there's dow chemical. terrific barometer of the broader economy. according to dow the basic building box chemicals are finally bottoming in price these chemicals are as cyclical you can get, great tell of the economy and future and pure supply and demand. if they're bottoming, that's a very good sign secondly, i like the way the more cyclical stocks with higher yields are trading and that includes dow i follow a host of stocks that are doing better before nonyielding stocks were thriving but now caterpillar, how about that one, disappointing quarter but stock is yielding. they said the dividend would be cut but they're buying back stock. same for tankry outlet center. pangers numbers have been
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horrendous a lot of people worried the dividend may not be safe but the stock is rallying here i think the marriaket has a lite more faith than a few weeks ago. a lot of investors lost their faith in coal, which is how it ended up with 5% yield to begin with same thing for macy's 10% kwleeld. but it's heartening to see the rally in stocks like khol's. and suddenly wall street cares about their bounty physical dividends because because they think they're safer. there's a sign september was a strong month and they showed an uptick in business, the most powerful in the country, felt the economy strengthening in the quarter intel painted a picture of amazing demand across all of its consumer and data center oriented products. visa said it had 47 billion payment averages can you say all of this evidence
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is anecdotal but if you put enough in, it goes together. you get a comprehensive look at the economy. what i see is not at all recessionary don't forget jamie dimon from jpmorgan, he indicated the consumer is in great shape and industrials put up surprisingly solid quarter the last few weeks. think illinois tours, honeywell, united technologies, they are supposed to be cyclical companies but they had excellent earnings and what happened the market lapped it up. what if you take away one of our bullish props, what if the fed decides not to cut next week i would say the fed has to be nuts not to cut. our international companies are struggling and only ones managed by truly resourceful ceo end zone are holding up. the dollar has been a major headwind for quarter after quart esh, based on the short rates controlled by the fed. there's no inflation which means there's no reason not to cut the idea jay powell should save the next rate cut until we need
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it more is just plain simi, even though i hear it articulated all the time that's like saying you should only go to the doctor once you get sick you would get sick a lot less if just went to a regularly scheduled checkup. think of this rate cut as a vaccination. if we can take the recession pieces off the table, it's a huge positive for the market let's just hope the fed listens to our please and gets it right! stick with cramer! who says our bank isn't tech enough? everyone, look at your phones.
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the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. i need all the breaks i can get. line? liberty mutual customizes your car
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insurance so you only pay for what you need. that's a lot of words. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ pacifica: ted! goin' oneighbor: yes. takin' it off road station wagon? you know it's an suv! think of this rate cut as a it ain't got that vacuum in the back! we got to go. ♪ vacuum in the back, hallelujah! ♪ now that we hear from the actual companies other than the macrodata, can you tell there are a lot of companies doing incredibly well and a lot of ceos being able to navigate what are very choppy waters it makes me proud, proud to come out here every night and talk about so many great american companies that really do great things i say there's always a bull market somewhere and i promised i would find it just for you here on "mad money"! i'm jim cramer and i will see you monday
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ come here, boo. i live in anthem, arizona, with my wife, our daughter, and our twin boys. started playing football in high school, and i quickly noticed that that was my ticket out of the rough area that i grew up in. growing up was a struggle. my father was never around, and my brother and i would watch our mom fight to put food on the table. i had the opportunity to go to kansas state university, and i was selected by the green bay packers in 2004

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