tv Mad Money CNBC August 25, 2020 6:00pm-7:00pm EDT
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highs. >> guy, do you have any pictures on your gram of your brokini >> yeah. on the commercial break i was looking at 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 educate and teach you. call me or tweet me. last night the keepers of the dow jones industrial made baffling moves
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swapping out pfizer for amgen. raytheon you'll hear later today. the largest oil and gas company with one software play dropping a respected drug company for a descent biotech? kicking a defense contractor to the curb for an industrial if it makes you scratch your head, you're not alone these changes had enormous impact the dow dipping 60 points and the s&p dipped and nasdaq gained 6.7% in all honesty, these moves made a lot of sense they bring the dow closer to the reality of the new cone economyt the memory of the old. before i delve into each trade, there is an aspect of the dow like the king to the s&p 500 prime minister
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same t simultaneously more prestigious. only included the dow because i had old investors regarded as the most important benchmark we live in the efts of trillions of dollars and whatever name gets swapped in, there is a gigantic wave of buying and selling. the dow has little money invested in etfs it's a big deal if you work for them because this is an exclusive club with 30 members and you can get dropped if you under perform. look at ge that's not why exxon, pfizer or honey well got the boot. i thought these would go down because they tend not to go up and stay up but today happened to be a special day and particularly for this one. let's go over these three trades the first shocker is an oil company coming out and a cloud company coming in.
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exxon mobile is not just oil company, it bestrives the world. ten years ago this was the biggest company on earth four years ago was the fourth largest. exxon was considered the safest most conservative but over the last few years, it lost that crown to chevron which is choir chevron will stand to the dow. exxon makesme nervous because it has an 8.5% dividend, which a lot of investors believe the dividend will have to be slashed. what a stunning fall from grace from one of the greatest blue chips of all time. in it's place, we're getting sales force. cloud kingpin that now has a larger market cap than exxon these are two perfect foils. in 1870 the bedrock of rockefeller's standard oil companion. sales force turned 21. it sent the stocks up 7,700%
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7700 what's that? 7,700% from the ipo price. exxon will be the largest to global warning the ceo is trying to plant 3 trillion trees to recapture the carbon good trade i think this is a fantastic move chon r exxon represents the fuel of the old economy, cloud, digitization it is a business to business operation but someone that's run a business, we have a 30% boost not long after sales force was installed. we'll flush this story out when we talk to mark later in the show about his remarkable quarter but the key here is something i've been saying for awhile, oil and gas is simply not investable for the long term i'm doubling down on the view. how about swapping out pfizer for amgen? i'm a little torn here okay sure, maybe pfizer is too much like fellow travelers johnson & johnson and merck. if that's the case, maybe go with medical instruments play. how about abbott labs? a big hold of the travel trust
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these are amazing companies but seems like they specifically wanted biotech to highlight the increasing relevance fine, let's accept the dow needs a biotech. it's up 72,000 percent since the ipo in 1983 but no spring chicken. it is like the face of biotech of 2000 and 2020 i'm sure the pfizer people scratch their heads and pfizer is a 4% yield. as a portfolio manager, i would headache th make this call although definitely not the best or most representati representative i'd go there with others i write about all the time there is raytheon for honey well this is not having to do with raytheon it's so straightforward it's basically housekeeping when the old united technologies flight, they merged businesses
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a carrier of the climate control. it was diversified the new raytheon is similar to another dow jones boeing meanwhile, honeywell looks prebreakup they have aerospace and performance materials, safety and productivity solutions these are highly engineered, that's the keyword, businesses, hon honeywell, they have a vaccine packaging more practical than glass viles. the heating and air conditioning systems are packed with software and growing at a 20% clip. 300% increase in orders and a backlog of 140%. they have the best mass franchise for anybody worried about covid. listen to what jp morgan, the best industrial analysts going
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told me about the new honeywell. it's an automation controls technology company with a heart beat of that installed base software the irons in the fire range from stand alone software for commercial buildings and e commerce to computing related revenue streams and businesses being created out of thin air by leveraging embedded function the balance sheet offers initiatives. this works end quote. like sales force is a big position in my travel trust and i was hoping it would go lower in the end, i don't think these three additions will matter much to the dow's direction if you bought the winners, you might want to stick around unless you're willing to do the homework and understand what they do. this isn't like the s&p where you buy and flip that said, if we go to have a prestigious ceremony, we might as well try to make it more modern and representative of the
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world today, not yesterday the oil industry is shrinking. the cloud is on fire far pharma is fine and a return to the status quo united technologies breakup, welcome back here is the bottom line. this rebalancing came act because of a need for more technology in the index given how big the tech sectors come. i think that the job is almost done there are stranglers out there that we like how about facebook amazon alphabet they would be good additions it is the dow jones industrial averages that we're talking about. bryson in arizona, bryson? >> caller: boo-yah dr. cramer. >> yo, what's shaking? >> hey, man, your staff is great -- >> my staff. my staff is unbelievable unbelievable staff i bring them coffee and lunch every day and fruit cup. that's actually a reverse but. >> caller: as you should
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so my question is with the progression of renewable energies, especially solar, i see homes and buildings becoming more energy independent so my question is two-fold one, is how do you think this is going to impact electric utility companies in the long run and then more specifically, number two, is what are your thoughts on a long-term strategy for duke energy duk >> i think that there are issues about solar. elon musk at a fable dinner when he called me a simulation or 50% chance there was a simulation, always a very pleasant man, he did basically tell me that he felt that all of solar energy will take over the whole country and if that's the case, you don't want to be in duke that said, i mean, look, a.p. is a great installed base i said that to mr. musk, too that didn't change his opinion of me. he is stuck with the 50% simulation and perhaps i didn't exist at all that would make
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this whole world very steven king like. i like the staff you know, maybe it is like steven king. let's go to jeffrey in new york, please, jeffrey? >> hi, how are you, jim? i've been watching your show for many years you've been very helpful. >> thank you, jeffrey. we're out there every day, man. >> i enjoy it. you're a good man. this is regarding crown castle cci symbol i was on your show july 21st and it was a recommendation on it. the next day i bought it at 169 and it has been going down since and then yesterday it stopped trading. i take it around 159 i didn't check it today. i would like to know -- >> well, look, here is what happened these guys are -- they're in a tussle with elliott, which is a very smart group of people they told a good story but elliott management i think tells a better one personally and i think that if they say to elliott we're going with your group, you got a chance to go to
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180, 190 instantly or take a little while to get there. the dow is now indicative of the world of today there is still more work that needs to be done that can take some time. on "mad" tonight are consumers stocking to coverage now that covid lockdowns eased? then despite a mixed day on the average, could a market top just around the corner? hmm. i'll tell you what the charts say. one of the newest members of the dow sales force joins me after earnings so stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. hey, kids!
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salesforce.com gave us the best debut since a riot was sparked on opening night yet, merely one day after the news that sales force will be joining the dow jones industrial average and mobile the company reports to the quarters we've seen all year. you have sales force with 47% earnings beat off the basis much higher than expected revenue up 29% year over year and make sense. the stay at home economy is forcing companies to digitize. they could make $3.73 this year.
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people are looking for $2.97 that is insane especially after the previous quarter sales force had a 63% increase in seven-figure deals from a year ago it was otched. the stock exploded higher in after hours trading and deeverything deserved every part the ceo of sales force to learn more about the quarter mark, double congratulations and welcome back to "mad money". >> jim, great to be with you, always. >> so mark, this is some day first of all congratulations to being added to the door. it's ceremonial and recognition you're one of the great 30 but the numbers today are the best beat i've seen let's go back this last decade how did you do it? >> well, jim, thanks you know, this has been such a challenging time for so many of us and, you know, we realize
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with 54,000 employees working at home, with a raging pandemic, with this economic crisis, social justice crisis, with this environmental crisis, we have two changes. we could stay and do, we can shift and make changes to go forward and go faster and that is why i am so excited about this quarter and also, jim, this is a victory for stake holder capitalism because you flow kno did a great job for stake holders this quarter and stake holders, as well this is a moment to think not just about how to serve our customers but also how to take care of our communities because they are in so much pain. >> you have a giant revenue beat 29% and yet, i will say this and i hope that the other ceos, please don't get mad at me
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i know you devote more time to charity than any other ceo what do we conclude? can we conclude being good generates good numbers >> well, as i said, jim, this is a victory for stake holder capitalism and shows you can do well and you can do good at the same time. you know, our stake holders have rad dicically benefitted from 2 when we were on your show. after that that's a 5,000% return for shareholders. our stake holders have benefitted of course, we have done millions of hours of volunteering, maybe perhaps i'm most proud of this quarter, we gave an additional $20 million to the san francisco and oakland public schools we also included our new york schools and indianapolis schools, other key headquarters of sales force, as well. that's over $120 million that we've been able to give to public education, our public schools are key striake holders. while we grow the company and do
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well for our customers, we're taking care of stake holders that's our very core of who we are. >> i know you like irony what do you think of the irony of the largest carbon company being taken by a company whose ceo wants to plant 3 trillion trees? >> we do we have created one tee.org and i encourage everyone to look at that because we want over 200 g gigatons of carbon we have no new net carbon emissions. we encourage every company to become a net zero company. we need to go out and sequester that 200 gigatons of carbon put out by all of us over the last several decades. that's the best thing we can do for our environment. we're excited about that because jim, the planet is a key stake holder. >> mark, today jeremy segol was
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saying a lot of people may not know what sales force does i know because every time i have a 30% lift in the business, which is not bad 30% is hard to get but maybe you can tell people, say, for instance att. what are you doing for att >> well, jim, thank you for letting me talk about our customers. i love them and love working with the customers and at&t, i work closely with their ceo wireless products which is jeff. jeff is a brilliant visionary and has an idea we're pursuing but will impact the whole communications industry, jim it is that when you show up at any at&t customer touch point, that is their stores, their call centers, their apps, if you go and get an email message from them, if a service technician shows up at your home, regardless of the customer touch point, at&t will know who you are. they will have a single source of truth and the big news this quarter, jim, is we signed that deal as you know in february of
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this year. february 2020. we have already delivered the first 35,000 users now deployed deployed this quarter six months later because jim, one of the keys to being successful in this pandemic for every company including at&t, including sales force is speed and we have radically accelerated the speed of our deployments and working really hard to make sure that our customers get what they need as fast as we can possibly deliver to them including this deployment at at&t hundreds of stores 35,000 users deployed. incredible. >> so i want to go back one moment first, i'll talk more about charity. we did have paypal on last week. dan schulman talking about speed. >> you know i love dan schulman and paypal he has a tremendous opportunity to be more connected to a customer in new ways and he's
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using the sales cloud and service crowd and many other products to build a single source of truth around his customers. paypal is a great product. electronic payments, contactless payments, more relevant and important than ever with the pandemic but what it means, jim, is that dan schulman, paypal they have to know their customers more than ever before and have a one on one. they have to be on a customer journey and i love paypal. i used property ducduct it's incredible. what they need to do is know me like no other person bam, know me and that's why we have had this great relationship now with paypal. >> so you shocked the world when you said not coming back until the end of july of 2021. that sent the housing stocks roaring. all the companies that do work at home roaring because everyone knows you do work.com and you have the pulse of what people
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need to do is it just good for business and good for people? why are you doing it >> jim, you know we have introduced work.com. we introduced it on this show. it's the fastest growing product ever companies have to get back to work and get back to work safely that's extremely important and many companies have and many companies opened offices including ours, but the reality is not everyone is ready to get back to work we don't have a vaccine. we don't have a culture yet that's safe for all companies to get back to work but we can get back to work in certain situations work.com enables that and that's -- hey, look at the colleges and university campuses now and this great deal we signed this quarter and deployed with the university of kentucky. they are back to school and contact tracing and a work force command center schools, doesn't matter if you're a k through 12 school or high school, doesn't matter if you're a college or university you need work.com because you
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have to know what is happening with the pandemic. that's going to let you go back to school safely that's incredible. >> last one, so where were you when you learned you joined the dow jones industrial average and who did you call >> i was right here at home and all of a sudden, several friends of mine started texting me saying well, congratulations sales force is part of the dow you replaced exxon and i'm like, i never thought, you know, when we started this company, jim, more than 21 years ago that we would create a company worth more than $200 billion that, you know, this year we'll do more than 20 billion in revenue and here we are. it's amazing look at this growth rate we're still growing at 22% at 20 billion. that's, you know, faster than any enterprise software company in history in this quarter, jim, we did $5.15 billion, jim, did you see that we did more than 29% growth that's unprecedented in software
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and we also delivered our best operating margin ever at more than 20% also unprecedented. so we're very excited about being in the dow but very excited and grateful to all of our employees, our customers, partners, everyone who has worked so hard to pivot to be successful during such a challenging time. >> well, mark, congratulations to you and your team for being in the dow and having the biggest beat of the largest company i can ever recall. great to see you, sir. >> thank you, jim. great to see you looking forward to seeing you again. >> thank you. >> that is chair and ceo of sales force with, i don't know how to -- it's a beast "mad money" is back after the break. woman: my reputation was trashed online.
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hormel without your mask anyway, i believe in masks when the pandemic hit, the first stocks to bounce back were the packaged food plays as people stocked up to make it through the lockdown and traded sideways for getting their groove back as covid cases exploded again how do we know when the trade has run its course take hormell, the company you know as spam, organic meats, turkey and hormel canned turkey. the gains since the last time we talked about it on march 18t but this morning hormel reported the stock went down. it was at the all-time high we talked about a fabulous top and bottom line but not perfect. the cost are rising a bit and a potential supply shortage. no numbers still, it was a fantastic quarter. come on. the main worry is we don't know
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how long it will last. let's go straight to the source with the chairman and ceo. a better read on the quarter and where the company is headed. welcome back to "mad money". >> hi, jim, great to be with you again. >> jim, it's a tough situation because you can't say all right, here, we think that spam and skipee and applegate are going to continue to be fantastic because you don't know what is going to happen with the pandemic but they are fantastic so how do you choose your words, sir so to keep the enthusiasm in but not make it so we're too excited? >> well, we want you to be excited because we're excited and we had a record quarter and what was so great about the quarter, jim, was the fact it was so broad based so all the items you just described, those were the center of the store iconic brands, they had a great quarter. but equally as important were the brands around the perimeter of the store you mentioned applegate. black label bacon, hormel
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pepperoni. the balance that we built in our pa portfolio over time. this isn't just a one trick pony but we're depending on people to go to the center of the store and glad so many consumers have come back. we seen millions come into our franchise since the start of the pandemic but more importantly is this intentional balance that we've built across brands, across biusinesses and across channels we have a retail business. we have a great food service business food service has been dramatically impacted during the pandemic but we're optimistic about that business as food service continues to reimagine itself over time and continues its recovery. >> well, let's talk about one of the businesses that i think is extraordinary one-two punch. smucker was on today smucker has jiff i grew up in a skipee house. we had pgj i never liked jelly. my mom loved jelly
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peanut butter was a staple of the house and thought it went away except boutique peanut butters, what is with peanut better >> i don't think peanut butter ever went away you look at the household penetration of peanut butter, the concentration is high. you have brand favorites you're talking about two iconic brands and it becomes how are you connecting with the consumers? how are you reminding them to purchase the product and when they have it in their pantry, are you reminding them and educating how to use it, the variety of ways they can use it and inviti innovating in the ca? we announced three new invasions. we have a squeezable skipee and protein added skipee those are the things that keep brands fresh and new with consumers and that's why we believe peanut butter is only going to continue to grow and we saw that in our results not only this quarter but previous
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quarters as skipee really delivered great results for our organization. >> applegate is great since you bought it. it just had some sort of breakout here that i think and this is again the problem of trying to figure out when this rally ends so to speak to me applegate became household in five months. >> yeah. i know you're a huge fan of applegate and we are, too, obviously, jim the key here is as consumers were at home, you had parents who were looking for foods to feed to their kids and applegate just fit that bill perfectly you think about the chicken nuggets, the hot dogs, sliced lunch meat applegate has a great broad portfolio of items the key for us now is to understand who these new consumers are that have come into the franchise and what do we need to do differently? how do we talk to them to make sure they stay, make sure they are utilizing the products on a
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regular basis? that's our job as brand stewarts we have an obligation to make sure we're keeping these in our households for the long term and that's a top priority across the marketing organizations. >> you talk about brand stewart but you're brand stake holders and i thought what you did for community college is the break this country has to think about. i want to give you the floor to talk about this because this is what we're doing wrong in the country in terms of government and what private industry is doing right. >> thank you, jim. we couldn't agree more clearly, we had a bird's eye view to the social unrest that took place here in minnesota and it was one of those things that we took a step back and said okay, we've got options here you know, we could just write a check. we're capable of writing a lot of checks, a lot of big checks
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or we can do something that's really going to make a difference and so we settled on the hormel foods inspired pathway program where we're offering the opportunity for every child of a hormel foods employee graduating from high school to have a free two-year community college education. this is an opportunity to really make a difference. this is game changing, as you described. because our employee base, our front line workers, the people who are showing up every day, the ones who have been true heroes in this, we have an incredibly diverse population, diverse backgrounds, diverse cultures some of them never had the opportunity to have that education. and for us to give them the opportunity to pass that along to their families, to their children, that's life changing so we're excited to think about the change it will have on
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families, the change it will have on communities not just today, next year but for generations to come. the other part of this, the other part of this i would tell you, jim, it's not as easy as it sounds because our employees who maybe haven't been through that experience have to now fill out applications and paperwork we have a whole army of volunteers that have raised their hands in our company to say we want to help. we want to help them navigate the paperwork and the process so we can get these kids to school. >> jim -- >> i tell you what, it speaks volumes. >> i would be remiss if i did not mention after that incredible thing that you're doing that i do indeed have some spam pumpkin spaice in my hand and we're ready for your next full throwdown and i will have it onset and we'll zoom it all right? >> that is a deal and you better make sure you're wearing you spam mask. >> i don't go anywhere without
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it thank you for everything you do for the community and for shareholders and thank you for some really good tasting stuff great to see you again, sir. >> good to see you, jim. thanks, have a great day. >> chairman and ceo of hormel foods hit a high and bounces down that's when you buy. "mad money" is back after the break.
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i mean, what we had over the past few months is a powerful bull market mostly stocks that benefit from covid or can safely ignore it as the s&p 500 makes new highs, more stocks are down for the year the dow is less technology exposure and still down more than 1,000 points from the february highs even as they come roaring back from march lows long story short, i'm worried the market has bad breath like a lot of other people, meaning not enough groups winning as the smaller cohort is doing very well and a bull market with bad breath could have a limited shelf life how limited? rather than go with my gut, don't we're going off the charts with tom demark, thehead of demark analytics demark is a titan of technical analysts and a market time he's created indicators and strategies we were talking about the demark sequential 13. he's a consultant for some of the most successful hedge funds on earth and spent decades on
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science of timing the market i know i use a lot of superlatives but the methodology is something else and we're grateful to him for sharing it on "mad money. he called the breakdown in february we checked in in late march and he told us the average bottomed and the s&p 500 would bottom soon after the stock haves been on fire for five months and the methodology said we could be approaching the peak i don't think. but he wouldn't be surprised if the bull market rolls over later this week or early next week we're putting it on the equation what's the logic take a look at the daily chart of the dow jones industrial. decades a i go, demarked developed a series of timing models that have proven unbelievably reliable. they are famous for moments when a trend is exhausting itself you can get deep into the weeds on symbolic, symboli cdsymbolicm
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we need to talk about the td sequential and td combo. in february and march, the td combo model nailed the top and bottom in the dow. you had upside trend exhaustion, 13 in february followed by downside trend exhaustion, 13 in march. i bring it up because the dow jones industrial average is ten sessions with what could be a and session combo. at this point if we get three days where the dow closes higher than the day before, that would tell demark this rally is about to run out of steam. trading lost themselves relying on ratios. the numbers discovered by the key numbers 23% and 38.2%, 50% and 100% these ratios repeat over and over again for a bizarre reason. the example march lows happened
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as the dow pulled to 61.8% of the february highs isn't that incredible? it's not hocus pocus 29,469 whatdustrial average gets within spitting distance of its february highs, that would tell demark we're peaking we're not there yet. we're getting closer and something you need to watch for according to demark. we're using demark how about the daily chart of the s&p 500? for demark, this recent move is looking a lot like the fabulous bull market from august 2017 through february of 2018 there is a very high correlation that doesn't breakdown, we're likely to see it by early next
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week as it currently 11 on the combo 13 countdown. so i see we're at 11 13 countdown that could represent the last gasp of this move. now i need to show you a pair of charts -- okay i'll warn you. these are charts that will put thoughts in your head i don't want you to have but i need you to see everything. they are a lot worse than they are. okay the chart is worse than the story. this is the daily chart of the dow jones averages right now wherever the performance of the dow in 1929 and 1930 specifically want to look at the period from november 19 low to the great high in april of 1930 because believe it or not, there was a sizable balance. people don't remember that they aren't around in the beginning of the great depression, that lasted for 107 days right now it's 107 trading days
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since the march lows. where we are in this countdown, he'd bet against it. he's worried the dow might peak soon but not yet i'm more bullish but this is worth keeping in your head i'm sure i'll see this in twitter saying cramer says we'll crash again. this is demark's work. i thought it was interesting what if we compare the action of the dow in the same period from november 1929 to april 30? demark points out during the post crash rebound, the dow gave you 36 successfully higher closes before the bounce at the apex the s&p recorded 35 successfully higher closes since the march lows and count on daily up trust where the index spikes on high value but closes down since the bottom in march the s&p had 16 up trusts which is exactly the same number we saw in the dow during the 1929, 1930 period
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demark doesn't think we'll repeat the great depression bottom line, don't get compile sent this should teach you. the chart is interpreted by the brilliant tom that suggests the dow and s&p could roll over later this week or early next week specifically a big burst higher over the next few days demark is prepared to call the top and when he makes the top call, it pays to listen. he hasn't called a top he thinks we have room to run but you need to be careful because if he's right, this market's next leg, well, the one higher, it could potentially be its last again, i like to show everybody's view stick with cramer.
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it is time, it is time for the lightning round. buy, buy, buy, sell, sell, sell. and then the lightening round is over are you ready ski daddy? time for the lightening round. let's start with andre in new york, andre? >> caller: jim, good evening. >> good evening. >> caller: calling from long island, new york scotts miracle grow, they recently raised their quarterly dividends. they announced a $5 special dividend. >> right. >> and they had an outstanding -- >> it was fabulous but remember, i mean, this is one of those where i feel like you know what? that may have been the trade the summer is almost over. we don't use a lot of miracle grow in the fall so i think you take the money and run there i've been liking that company for a long time. let's go to nathaniel in
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wisconsin. >> caller: boo-yah, jim. >> boo-yah. >> caller: my question for ya is what is going on with the marathon patretroleum corporatin should i sell? >> no, no, no, people react -- look, everyone hates everything carbon and oil but this is a long race and i think you should stay in. okay i can do a longer piece on that. let's go to steven in pennsylvania, please, steven >> caller: how are you doing, jim? >> doing well. >> caller: first-time caller. >> okay. >> caller: listen, my whole family loves watching your show. >> thank you. >> caller: listen, being held on maybe a $230 million to revitalize ge. should i keep it >> keep it remember, you know what? yes. yes, you should buy ge i think it -- larry got a new long-term contract i wanted to see that he got dealt a real bad hand and trying to augment it
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sometimes go to the card table with me and see how difficult it is but he'll get it done let's go to maik in arizona. >> caller: boo-yah jimmy chill. >> boo-yah. >> caller: i want to give a shoutout to my beautiful baby daughter and girlfriend amy. my question to you is with the stock market at all-time highs and the energy sector lagging, is the beat up heavy weight chevron with the strong dividends and balance sheets a buy right now? >> look, i don't like oil and gas. i think it's uninvestable. the only large oil company is chevron. mike worth doing a good job 6% yield and he can pay it. let's go to daniel in colorado, daniel >> caller: boo-yah, jim. how is it going? >> going well. how about you? >> caller: with the reform bills in 2021 and 2023, would exxon be a good short term and long term
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investment >> we've been behind rick smith and his work he's the ceo for, i don't know, let's call it 60 points. and we're still backing him. so nothing changed for us. let go to kyle in new jersey, kyle >> caller: hey, jim. hope all is well with you and everyone on the show. >> doing well. >> caller: i was wondering your thoughts with peloton. >> people want peloton to be an ecosystem. not comfortable with that. i would like to ring the register peloton i have so many different positions like this one is up so much up 133%. that's a bit of a nose bleed for me and that, ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade what do you look for when you trade?
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i want free access to research. yep, td ameritrade's got that. free access to every platform. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. now offering zero commissions on online trades. we charge you less so you have more to invest. ♪
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if you can't beat them, join them that's how i feel about these early morning traders who insist to be active whenever they see or hear something positive about the macro data or potential vaccine diagnosis. we hear about successful trails, macro good news they go for airlines who are they it is younger home gamers that came in near the bottom in march and coining money since as some of the smartest people in the industry want you to stay away, said this is the most dangerous market in history but all sorts of hedge fund managers said this market is still scary and you have to be a moron to own stocks here or thousand points below this or a thousand points -- you get the picture. when you go to the tape, these geniuses got it wrong. the armature robin hood traders nailed it. okay they did nobody has been more right about this year than day trade from bar stool and that drives the pros crazy because the mantra is
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stocks always go up. it doesn't get more unsophisticated for that for five months, it's been dead right. i think maybe they got it wrong. what you need to understand is stocks go up when things get better he doesn't need to look deeper than that. if he did he would feel differently. if he felt differently, he would have a worse track record. the calls are better than the suits as he calls them, the ones they are making and more entertaining what does this have to do with the morning traders? they have a set routine you can follow by getting up at 4:00 a.m. and watch this thing called the crawl at the bottom. it tells you what people are doing. you can see little buys. if you seen positive news on the covid front we'll haven daan update they buy united. jetblue, dell ta and southwest the most fund mentally sound is southwest. the most speculative and maybe most exciting is american airlines it needs a bailout or a vaccine.
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it needs something they will rally and rally and rally and rally if they get a break. then these morning traders go for the cruise lines because even though they aren't sailing, won't be for months, they are synonymous with a return to normalcy carnival, norwegian. the best most cash per share and can hold out if a covid vaccine takes longer than expected cruises will be loved as much as ever shopping, the morning traders grab property groups, mall real ed state in america. crazy. malls are different from shopping centers or strip malls. simon has real issues. the pandemic is brutal on the indoor shopping malls and desperately trying to get out and agreed to acquire before the virus hit. these traders couldn't careless. they are just betting on a rebound. they go by hilton or marriott. marriott is a pure operator, better management, exposure to china because they have covid under control. they buy chipotle but more of a
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covid play they pivoted to delivery they are making as much money as they did before the pandemic but they go for mcdonald's, even though it's not as good. that's it. if you want to play this game when you see good news on the covid front, you buy southwest, norwegian, hilton, simon properties and chipotle in premarket trading because by the time you get to the opening, it's too late. i don't actually recommend premarket trading. for most people i would recommend any kind of short term trading. it's too hard. if you want to play this game, you have your game plan. he's armature robin hood types are sophisticated but for months they have been right along with the confounding port know and i'll take being right over being arrogant and sophisticated any day of the week stick with cramer. i had saved up some money and then found the home of my dreams.
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with sales force up this much and expected to be a contributor dow tomorrow morning, i want to spend another second on it it made a series of great acquisitions and this last quarter, they did hit a wall because of course, covid and now that that wall is penetrated, we see all the work they have done and acquisitions paying off and that's what happened there is always a bull market somewhere and i promise to find it here for you on "mad money.
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i'm jim cramer and i'll see you tomorrow narrator: it's been 10 years since "shark tank" ignited america's entrepreneurial spirit. and we are still blazing a trail. for those who take their fate into their own hands by working hard... we are growing incredibly fast. we need a shark to help us take a billion-dollar bite. narrator: ...by working smart... are you ready to try the best tasting drink you've ever had? narrator: ...by thinking big... you simply squeeze the zit, and that's it. narrator: ...and chasing their dreams. we're stepping up the dance-fitness industry to a whole new level. narrator: and tonight, skinnygirl mogul bethenny frankel and branding guru rohan oza join the tank. i think your valuation is too steep. but wait. there's more. take it or leave it. don't go fishing. no one else is gonna make you an offer. i'm the only one with creativity. i'd like to say something! no, no, no, no, no.
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