growth side. >> next week we will get those bank earnings. but the next week expiration is 1 1/2%. that is for you. tune in friday at 5:30. a friday preview potentially. thank you all for watching. "mad money with jim cramer" starts right now. my mission is simple. to make you money. i am here to level the playing field for all investors. i promise to help you find it. "mad money" starts now. hey, i am cramer. welcome to "mad money". doing my best to try to make you some money. call me, or tweet me,

@jimcramer. everybody is worried about either a brutal recession or rampant inflation. even on a good day like this when the dow gained. nasdaq, 35%. you even hear people fretting about stagflation, the prospect of a half dead economy with prices that just keep going higher. but any market that is still at odds about inflationary growth versus inflation might end up in a no growth, low inflation -- just plain old stagnation before re-acceleration with less inflation. rates have been going down consistently for the past few weeks. more downward pressure on commodities. now roughly down $25.

bombs reversed and the rates started going higher. so which move is right? when the market can't make up its mind on an issue like the inflationary growth or recession question, i find that often the answer falls somewhere in between. there is really a great debate going on right now, which is why did rates fall so hard to begin with? was it the benign decline in the price of commodities? the fed might not have to raise interest rates as aggressively. or was it a malignant recession causing a decline in demand and earnings are about to fall apart? tough talk in three increasing severe rate hikes. so in a soft landing to make it a bull market. especially stocks that benefit from lower commodity prices, which is what we are getting. but a pessimist, of which i would say is the majority, a pessimist looks at the same

data points and says we will have a deep recession. that is what i hear most of the time. why is it not too late to sell? because earnings are going to evaporate in stocks will be hit hard. so why is it so hard to figure out which camp is right? because there is genuine confusion. because we are somewhere in between and we have to see some signs that the fed has beaten not commodity inflation, but wage inflation. we have to do them both before we can say the pain is over. until then we can go either way. second, the fed minutes from the june meeting released today illustrate. we know they are committed to raising rates, but they did not say we will do a big hike and then wait, which is what you do if you believe there needs to be certainty. remember, it must be killed, not just wounded. third, i think we are all thrown off by the concept of who over earned at the height of the pandemic.

zoom, roku. you know the ones. but one by one we discovered many other post-covid pariahs. videogame stocks suffered tremendously, even as the business has slowed. they just return to normalcy. streaming has been smashed. disney, much to my charitable trust chagrin, has been crushed, because the company cannot shake off the fact that it, too, must be hurting because of disney plus. we have only recently decided that there were over earning all over the place. principally, i tell you, underneath pretty much all of the decline that i have seen, the serious ones, is the over earning. for instance, stocks have been crushed because they make gaming related chips. the companies must be hurting. those same chips are used for cryptocurrency mining. hp and intel have seen stocks

plummet because the bottom line was boosted. after covid, hp and intel will have a hard time bouncing back. the same goes for best buy and wayfair. although the first two are excellent companies, they need rate cuts. now we still have one more derivative. the internet itself. several research firms have pointed out that internet use is actually down this year, something almost no one thought could happen. that hurts all the companies that have benefited from the internet growth, including the players that enable e-commerce. all that make the internet work better. it laid to waste so many online apparel companies and even damages the trade desk and finally, google and facebook. the whole online advertising edifice. when i say over earning, i mean they make a lot of money thanks to the pandemic and now things are basically back to normal

and that makes it seem like we are experiencing a slowdown. really it is just a reversing, but don't tell people that. they think it is getting bad and they want to sell, they don't even know what reversing the mean means. it is a tough concept. it means go back. a decline could be because we are headed to a recession, but it could also mean speculators take advantage of the expected shortages caused by russia's invasion of ukraine. the shortages failed to materialize, especially in oil. many parts of, let's say, the wealthier world. when russia found a way to offload sanctioned crew to india and china, that was it, the price of oil did come down. by the way, if you want to see a chart of food, look at this chart of john deere. it is incredible. notice i'm not attributing these to what everyone attributes them, the fed. at the end of the day the fed could not predict a post pandemic world any better and certainly couldn't predict the complications caused by the war in ukraine. you throw in china's unexpected

did block. the resulting supply-chain use. and it is very hard to make any kind of forecast. given those crosscurrents it is incredibly difficult to figure out if we will go to a recession my soft landing, because the fed may have already won its way against commodity inflation. it is winning the war against housing and even rental inflation and it may soon win the war against wage inflation. more on that later. the banks are due to report soon. every report of loan loss kicks up, which will be regarded as the more important than even the higher net interest margins. however, i think that won't happen. instead we will be impressed with the money the banks make up their deposits. remember, the depositors don't get much more than they get now. think how much the banks are getting? again, there could be a third wave. there was not enough stock and

bond market activity for the trading businesses for the stock to go lower just from that basis. and the consumer package companies report, they have been able to increase prices. meanwhile, the dividends look more compelling with lower bond prices. that could be an amazing moment for consumer packaged goods unless people say i don't want them. text goes up next and i think there will be a severe bifurcation this week. the ones that are thought to sell well below historic normals , think micron, should rally. but companies come i think stocks fall once again and it is not too late to get out of what i regard as being the kathy would stocks. my hat -- why am i more sanguine than everyone else about the market? because i am more cognizant that after 40 years that the damage already meted out is severe. i don't like to hate a market

that has come down this far. here is the bottom line. these levels of many stocks already reflect a recession, so if we merely get a stagnant economy that will then re- accelerate, stocks would go much higher. but if the fed disagrees with me and there is more than just one last rate hike. here is one and many more coming. the market will have even more. i thinwill be right, though. let's go to jerry in my home state, new jersey. >> hi, jim, thanks for having me on the show and congratulations -- >> i am very excited. the set is gorgeous. it will be a rebirth. look, i have been doing it here for 17 years and it is really time for a change and i am very grateful to the network for giving that to me. how can i help you? >> i have a question about darling ingredients. looking at the stock, this is been highly volatile and everything.

do you see anything that this might straighten up and bottom out? >> you know, i will tell you the truth, i would rather see you own clean harbors. darling ingredients recycling, i like the concept. the stock is down too much and i am going to embrace that. people should know that this is something that traps the stuff that is like leftover refuse from restaurants. it is good, it is just not great. let's go to jeff in oregon. jeff. >> hi, jim, it is jeff. i am calling from oregon and i want to give a shout out to retail investment power. my question is gamestop. they are set to launch an nft marketplace at the end of the month. do you think this is enough to keep investors interested? >> gamestop is what i call a controlled stock. it is controlled by a group of investors. they announced a four for one

stock split. it doesn't create values, but they control it. there are really only two controlled stocks in the market which are amc and gamestop. when i say controlled, exactly what i mean. no need to buy in. i am not more sanguine than everyone else you hear about this market. many stocks to me are already reflecting a recession, so if we get a stagnant economy and a possible re-acceleration with much less inflation, though stock should go higher. this logistics, reit, might be right for your portfolio. i'll give you my take. there is a lot of chatter about the bottom. i am looking at technicals to see if the bottom is in or more pain as i had to verify my view. and buy now pay later has been a top corner of the market. so what does the future hold? i am digging into the space. so, stay with cramer.

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okay, i told you last night there are a ton of stocks to get cheaper as they go lower. i know this is horrifying, but when the damage gets this widespread, i think you often do get excellent buying opportunities. i want to single out a couple. the real estate and investment

trust which has seen it stock going through the meatgrinder. now it is down almost 30% from the hi. you almost never get it done that much, therefore i think it is worth buying. full disclosure, i have been a fan of prologis rages. since the bottom in 2009, where we identified it, a long-term winner. the stock has been a huge gainer for us. facilities for business-to business transactions and more portly, online fulfillment. the digital channel became the safest way to transact and everyone in retail spend a fortune building out e-commerce platforms. even when the world started going back to normal, the stock manage just fine. in fact prologis hit an all time high in april. since then, though, look at this. it has been obliterated. you've got to ask before you buy something, what is going on

here? okay, the stock had a very strong peak and then raised forecast for april 19. now we spoke to the ceo that night and he sounded very confident. so it has nothing to do with the actual performance. no, the stock started getting hammered a week later. april 29, prologis lost 7% of the value. only going lower, lower, lower. nine straight sessions. in total it went down 28%. that is some amazing losing streak. the reason? simple. the night before amazon reported and admitted that they overbuilt the warehouse capacity and logistics infrastructure. they talked about the excess capacity and fulfillment at work. basically amazon over invested in this stuff. they thought it might be the right thing to do. they were too pessimistic. too pessimistic about what was going to happen. so they keep saying extremely

high demand, then covid receded and people started buying stuff in person n. they did not expect that. they took a chance. i don't blame them. in order to operate, amazon slashed its capital and so they are looking for new ways. they over earned during covid. when they say they have too many fulfillment centers, obviously that is bad news for prologis. they own some fulfillment centers. it only got worse. the wall street journal published an article saying amazon might want to sublease excess warehouse space while renegotiating leases with outside warehouse owners. you wonder why the stock goes down. it is alarming news for prologis. amazon is the largest customer, accounting for nearly 5%. so you don't want to hear that amazon may compete with them and also wants to negotiate down the cost of rent.

i think the selloff was a huge overreaction to amazon's demand. of course there are other reasons, although i think it does not help that prologis sent out a proposal to acquire duke reality, one of its key competitors. in an all stock transaction the value duke at a 20% premium. i don't think there was anything wrong with the deal, but we learned about it on may 10 when it seemed like the market was falling apart. bad timing. they shut down the proposal the next day, but that made people worry that prologis might raise their bid. the stock went down again. finally, big picture. everyone is concerned we are heading into a recession and we are certainly looking at a slowdown in consumer spending. that could hurt prologis, given that the whole story is about the long-term growth of e- commerce. it doesn't hurt that the dividend yield is less attractive by comparison. a lot going on here. we will take the worries one by one, starting with the biggest

one, amazon. shouldn't we dump prologis when the largest customer says they have too much logistics capacity? not so fast. sure amazon is a top customer, but it makes a 4.8% of the business. even if amazon is trying to renegotiate or give back space, we're talking about a very small earnings hit and i don't think amazon can strong-armed them on rent. the fact is prologis had an astounding 98% occupancy rate at the end of march. they have no trouble finding tenants. while they have also been building new facilities. a substantial of these are what is known as preleased, even while construction is taking place. they do not have a demand issue. in fact when we spoke to the ceo in april, he said the only problem is finding land where they can build these facilities. listen to this. >> convert other types of land uses that are less in demand into logistics facilities. we've got to pull every trick out of the hat to satisfy the demand of our customers.

>> insatiable customer demand. that does not sound like someone worried about amazon breaking some of the lease and giving back the space. they need the space and probably can charge more for it. even if amazon is a major tenant and it is, i am willing to bet prologis can get better term somewhere else because there is so much demand. e-commerce is the future. maybe it will slow down a little bit. i think it will speed up again. amazon made a mistake. most other companies cannot afford to make that kind of mistake. plus, just because amazon is breaking some leases, that doesn't mean they will break the lease from prologis. some of these fulfillment center properties are highly desired. last year the ceo spoke at a conference where he said amazon leases 150 properties from them and are only trying to negotiate terms on two of them. when i thought about that it seemed much more of a benign issue. second thing, the duke reality deal.

last month they agreed to a merger at a price only slightly higher than the original offer. prologis saw its stock dropped 7.5% on the news. guess what, that is where it bottomed. since then it has rebounded back to roughly $121. it makes sense. the duke deal should add to earnings in year one while substantially increasing scale, all without hurting the balance sheet. they had to similar deals in the past like 2018 or lincoln property, 2019. i think it is smart. what about the macro concerns? look, prologis is not a retailer. it is a real estate investment trust. they have long-term leases with their clients for these fulfillment centers. there is only so much a garden variety slowdown can really hurt them. the bottom line, just these few lines from amazon have sent prologis back to where it was trading in may, 2021. stock trading 24 times.

i think it is a steal. one of the best growth stories of the past 15 years. "mad money" is back after the break. coming up, begging for a bottom. cramer shines a light, next. (fisher investments) it's easy to think that all money managers are pretty much the same, but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades.

(fisher investments) never at fisher investments. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different.

when will the pain stop? will we be able to hold or are we looking at still one more leg down? this is what i think about every day. stocks have come down from their highs and wall street feels a lot less blindly optimistic than six months ago. that said it is an insanely emotional market and when you

are trying to spot a bottom or a top you need to take emotions out of the equation. but a purely empirical approach to go with that approach that i gave is pretty bullish. that is why we are going with the help of tom demark and his team at demark analytics, whose work you can follow. he is legendary in this business. he and his team have an incredible track record that goes back decades. what you need to know is he is feeling good about vast swabs of the stock market. demark is all about trying to identify when markets are likely to change course, ideally ahead of time. that is why he is always on the hunt for signs of trend exhaustion and price reversal inflection points. those are the language that he likes and i have learned to use it, too. i don't want to go into too much detail about how it works, partly because it is

complicated and some of this is proprietary. you can go to symbolik.com to learn more. it comes down to the basics of supply and demand. remember at the end of the day, the stock market is a market and all markets are controlled by supply and demand. when demand is greater than supply, stocks go up. when supply is greater than demand, stocks go down. he has made his career spotting these moments of dynamic change. it makes sense to me, very intuitive and rational. when hunting for a bottom, the key is to identify when the sellers have run out of firepower, when everyone he's going to sell has already sold. i talk about that, seller exhaustion. markets tend to buy on bad news, not good news. you know when something awful happens and when stocks go up anyway. think about what happened with micron, bad forecast, stocks went up anyway. what does this have to do with the actual market? let's start with the dow jones industrial average. the model predicted we would get to successive lower lows

and closes before the bottom. the dow and s&p hit those targets two weeks ago. however, because there was a two-week rally off the low in the first week of june, the timing model required an extra day to recalibrate. he and his team have a 13 step i or cell count down model that helps them identify highs and lows. you get a certain number going in the same direction and sooner or later the trend exhausts itself. there is more to it than that, but what you need to know is that the s&p 500 hit 13 on the countdown on june 16, which suggests this was a real bottom. as for the dow, it hit 13 on the countdown the next day. there is a second countdown that is still only at 12. to demark that means the dow may have bottomed the last month or maybe there will be one last downtrend. now demark has been doing this analysis for 50 years and he sees some parallel between the

current market in the early 70s. it shows the action in the dow this year versus the daily action in 1973. as you can see he is using the same 13 step countdown, even back then, and it worked just as well as it does now. they believe it is noteworthy and if it holds, we see more choppy trading over the next couple of months, followed by a strong rally in september and october. remember, following a pattern of 73. then a large decline. if demark is right, then right now we could be looking at an incredible -- last november the tech heavy nasdaq had run so far, so fast, that it was exhausted and then overwhelmed by selling. you remember what happened. four straight months, then in march the nasdaq hit the 13 countdown. and we got a nice rally.

by the end of march we got another cell signal. this is really tough. the nasdaq experienced another leg blower. right now it is at 12 on the 13 step countdown, meaning the bottom is probably not here yet. it has also not hit the lowest downside price yet. more on that in a second. how about the 100, made up of the 100 stocks in the composite? take a look at the 13 countdown in the middle of last month. but here is the thing, it is not enough just to hit 13 on the countdown. in a market this tricky, he won't try to call bottom until the index actually hits it's downside targets. neither the composite nor the nasdaq 100 did that. he does not expect the bottom until the former hits 10,515 and the latter hits 268. he has a tool that he calls his

market model that surveys historical price action to predict future movements. he has applied it to the nasdaq 100 and came up with a forecast that looks a lot like the 1973 run for the dow. specifically he sees a rally at the end of july, then a decline in the end of august to a newer low. after that, however, he is expecting the sharp rally we talked about into october that could recover 55 to 60% of the entire 2022 decline, so obviously you want to be in for this. if you want another analogy, comparing the bottom two and everybody thought the world was ending. in part the fed was printing money like crazy and in part everyone who is going to sell had already sold. remember that bottoms out on negativity, not positivity. we spent months getting hammered by the same story, but sooner or later that gets baked in and you are okay.

look, we spent all year terrified about how the fed might have destroyed the economy but one look at the commodity markets tells you that the fed made tremendous progress in containing inflation, at least for commodities. so i think demark may be onto something. here is the bottom line. the charts created by tom demark suggests that there is a legitimate chance to bottom for the first time since everything started rolling over last november. the s&p 500 might have already put in the close, i hope he is right. more important i think he is right. let's go to michael in colorado, please. michael. >> hey, jim, michael from colorado. >> what is going on? >> you think they have what it takes to ride out the bear market or will we see more serialization along with the other crypto's? >> i don't care much for going base. here is my problem with coinbase. we have, even with the best of banks, they are all hard stocks

and they think they will get better. but i need the upside from a bank and i don't think coinbase, which rescinded offers and people are saying has a hard time getting talent, can necessarily be the one that you want to be. let's go to tyler in california, please. tyler. >> how are you doing? >> i'm doing well, how are you? >> i am all right, thank you for asking. i was wondering the stock i was watching moved up 1.4% in the same direction for every 1% move in bitcoin. i was bullish on bitcoin, of course. i was wondering if marathon, down 80%, if this would be a long term hold in coordination with bitcoin? >> i think it is, i just don't know i want to be correlated with that. i was checking in with some people on my mentions column and people were saying, now you tell us you don't like bitcoin. i once again remind people i

sold my bitcoin and bought a farm in pennsylvania and i will never think about selling that farm and buying bitcoin, because there is a tremendous amount in the pond. the chart suggests the market has a legitimate chance to bottom for the first time since november. i think tom demark is right. buy now pay later has turned into by now, pay never, so i am taking a look at the players in the space and see what the future could hold. and then the employment report. which key aspects should we be watching that we are not? i will give you my take. and this is the lightning round, so stick with cramer. next, investigating the highland park shooter. new reporting on how he got his rifles and what he confessed to.

i'm going to tell you a little story that encapsulates everything that is wrong in the tech space. late last friday we learned a swedish financial technology company in the by now, pay later space was nearing a deal to raise a $6.5 billion evaluation. now for nearly any other privately held company that would be great news, but it was horrific. why? because a little over a year ago, klarna raised the same amount of money at a $45.6 billion evaluation. it lost 85% of its value and it is just the latest disappointment with many in the by now, pay later universe. these stocks were red-hot a year ago, yet now they are one of the dentist areas of the market. it is worth taking a closer look, because looking back, the idea of buy now, pay later is

ridiculous. this was supposed to be the next revolution in consumer credit. it was displaced by credit cards. 18 months ago we started to hear that buy now, pay later was an incredible opportunity. an upstart firm became public. it was a major player in the space. upstart is more of a lending decision software. what matters is upstart went up and it was just under $30. less than a month later it was in the triple digits. that was just the beginning. it finished its first day of trading at $97. while it quickly pulled back from its highs, within months it was soaring to the stratosphere. meanwhile the largest player in the space was raising lots of money in the market. $10 billion in september, 2020. $31 billion in march of last

year. $41 billion last june. the same guys, by the way, with the wild investments in lemur. i believed in buy now, pay later, because i believed the stocks would go higher. that is not a rigorous idea of how to do something, but it worked for a while. the public market analogs quit quickly became much more valuable. upstart surged. remember, it had gone public at $20. after excellent earning reports it surged all the way to $401 at its peak last october. $20 to $400 in just 10 months. what a stock. as for the buy now, pay later business, last august we learned that square was shelling out billions. the space was so hot that square rallied on the news, though the stock peaked a few days later.

a firm exploded higher after we learned about the deal. we learned that they reached a deal to provide buy now, pay later services to amazon and another 34% in september. a couple of weeks later, excuse me, we learned about a deal with walmart. that sent the stock up another 11%. in early november it was trading at $176. last fall everyone wanted a piece of the business. paypal already had an offering, but snapped up amy to get more exposure. last november they sounded very confident. visa, mastercard, and american express, too. even j.p. morgan chase rolled out a service called my chase plan. unfortunately that was the peak. upstart is down 92%. the firm is down 89%. block is down 78% and paypal is down 76%.

it has been an abominable decline. some of this because they were overvalued in the first place. sales could not possibly be earnings, because the firm is losing money and they are not expected to go public anytime before 2026. block and paypal were trading at a skyhigh price. the highs last year, 170 times earnings for block. 65 times earnings for paypal. which again, full disclosure because i talk about the winners, i lost a lot of money in. now you can get away with the growth stocks from last year. wall street turned against growth. the whole financial technology edifice. the real term was innovation. the buy now, pay later firms are everything the new market pates. improbable, expensive. they are well run. a good manager.

the important thing with him and plans like block and paypal, they also had cryptocurrency trading exposure, which is turned into a stone around their necks. initially you might've thought it was getting killed because it had gone out of style, which it did. then we started hearing about an e-commerce slowdown as the economy reopened. a lot of the business is done via the internet and there is less purchasing on the internet, then there is less need for these companies. particularly paypal. things got worse in spring when people started to worry about credit quality. a lot of us did not think there even more issues. the company lends people money to sell stocks and then they offload them to institutional investors. they can't raise the cash to make more loans if they don't sell off the old ones and it needs to be at good terms or else the margins fell apart. but the demand was drying up. now, when we spoke he was dismissive of these concerns. he said it was simply about

taking a step back as the market adjusted to higher interest rates. two weeks ago analysts were pointing out that a firm's bad loans were getting worse and worse, making any securities backed by these loans less attractive. i advice invite him back if he wants to dispute the analyst. everyone is worried about the economy and recession, which would be catastrophic for the business. not only will there be more people who can't pay back their loans, but also less consumer spending and less willingness to take on new debt. how about upstarts? it is worth going into more detail, because i feel the story was misleading. i like this stock a lot on the way up, because i thought they were merely in the business of facilitating loans using their technology, not lending money themselves. but it turns out upstart had far more credit risk than we assumed. that is what made me so upset. they now have the same issues

for their asset-backed securities. at the end of the day, the stocks never should've been worth so much in the first place. the business models were more attractive when interest rates were low, but it remains to be seen if they work in a more normal environment, like the one that the fed talked about in the release today at 2:00. all sorts of competitors. last month apple joined the fray. the opportunity was never as great as they describe it. i use my apple pay constantly. the ottom line, let this be a lesson not to get caught up in the euphoria and that includes you, venture capitalists. even if it doesn't seem like it at the time, earnings matter. valuations matter. the economic landscape matters. interest rates matter. the fed matters. that is what we learned this year and it has been agonizing if you had big tech exposure. i don't think the pain is necessarily over. maybe the only thing left to ask about is who lays the cast

of executives on the program on apple plus? "mad money" is back after the break. stick around. the lightning round is coming up next. lemons, lemons, lemons. the world is so full of lemons. when you become an expedia member, you can instantly start saving on your travels. so you can go and see all those lemons, for less. are your hr processes weighing down your employees? on to quarterly projections! expense report! if you're using multiple systems, re-entering data over and over time sheet! using email and spreadsheets to manage information and approvals, then your hr systems are a drag on productive time. with paycom, employees enter and manage their own hr data in a single,

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lightning round is sponsored by td ameritrade. it is time for the lightning round. are you ready? chris in texas, chris. >> hey, jim, booyah from texas.

>> good to have you. >> is it a good time to buy boeing? >> i'm not going to recommend stocks that lose money with really bad balance sheets and that is what they do. that is boeing. let's go to charlie. what is up, charlie? >> jim, are you there? >> charlie, what is up? >> sorry, pal. booyah to you, i appreciate you taking my call. >> what is going on? >> with earnings coming up later this month, do i buy or sell u.s. steel? >> there is too much negativity on steel right now. it has to come down a little bit more. the numbers have not been cut down enough. let's go to kurt in nebraska. >> hey, jim, how are you doing? thank you for taking my show call. >> what's up?

>> let me just by real housing. that is the one i would buy. lucas in minnesota. >> hey, jimmy. welcome to the second half, my friend. first i want to thank you for keeping the morning show so positive and informative during this downturn. >> thank you. >> my lightning round stock is actually allied baba. >> i'm not recommending any chinese communist stocks. i will not let it happen on my watch. let's go to michael in california. michael. >> jim, in the carnage of my test portfolio, i have a couple of tech companies that i don't care much about. the year to date stock prices have weathered the storm better than the rest. including stalwart, microsoft, and apple. i would like to get your long term take on synopsis.

>> i do believe semi conductor stocks have come down to much and there are other semi conductor companies i think are cheaper to buy than that one. if you want to check, you can go right to the investing club. you will see the best of the best. let's go to steve in new jersey. >> hey, jim, how are you doing today? >> i'm good, how are you? >> doing good. the stock i'm calling about is arbitrage. but without the problems of microsoft. the company is an auto parts maker. it is trading now at $17.16. the deal will close at the second half of this year and it is already approved by the board and shareholders. what is your opinion? >> i would be very careful. i do not have a great call on what will happen so i am very sorry. and that, ladies and gentlemen, the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade.

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coming up, investigating the highland park shooter. what he confessed to today, plus, could his parents face charges? the news is minutes away. >> the news with shepard smith, next, cnbc. this weekend i had a review of sorts. two kids trying to get jobs to bag groceries were told to submit their resumes and after a short interval they were told resumes would be kept on file, but the answer was no. we have a labor shortage? it has nothing to do with the true state of the economy.

on friday when we get national employment data we might see that these two kids were just knuckleheads, but what if we see declines in hiring? one thing i know for sure is we have gloom in this industry. a glut of gloom. when you are gloomy you do not expand your business or hire as many people. again, you might invest in technology so you can do more with fewer workers. the job situation in flux. out of nowhere. losing money because of theft and decline. stolen and sold to a fed who sells it on amazon. that is what many big stores are doing. it is the first time i have ever heard of theft causing a decline in the economy. it has been growing. as it is retail has too much

inventory, though pilfering is a bad way to clear it out. by the way, if you want to protect your inventory all you do is put it behind lock and key. then there is the oddity of the winter. it feels like every day we discover there is another crypto that cannot get bailed out. today one filed for bankruptcy. voyager. we don't know how many people worked at these companies. they are so in the showers shadows, but coinbase had employees and rescinded offers. they know they aren't big, maybe 100 people each. when you include the hedge funds that have been blowing up in the people's trading successfully until now, will you have enough people need jobs for the deal. goldman sachs made a point that if things got bad, hey, things are bad. they are bad for everyone on wall street. i expect layoffs this quarter, although they have not been announced. but it is a nontraditional

layoff, because no one is thinking about them. definitely not the people at wall street who are shocked when interest rates go lower. i'm talking about layoffs connected to the internet. now we have not seen a slowdown in the internet space since 20 years ago. according to multiple research, that is what is happening. gaming peaked at the height of covid. we don't need more gaming companies now. the internet is growing at half the pace it was a while ago. amazon by its own admission has too many people. platforms are laying off people, although it could still grow. i think we will see massive layoffs at many financial tech companies. this might even hit computer scientists and coders, area was where demand has been steady for ages. it will be a different factor in this economy. i think it will offset whatever small and medium-sized businesses we have still growing, resulting in a more

balanced employment report. i expect labor department numbers to show a cooling. not with a bang, but a pastiche, a whimper. the only question is when? will we see the slowdown friday? possible, but if not, it will be next month. a surprising turn in the case of the man charged with murdering seven people at a fourth of july parade. i'm shepard smith. this is "the news" on cnbc. the highland park shooter confesses. >> he admitted to what he had done. >> his story to police in detail including what happened after he ran from the scene plot thwarted. another mass shooting planned for another city >> one phone call saved numerous lives on the fourth of july. >> the tip that led to suspects arrested basketball star brittney griner's wife gets a call from