>> i don't like the twitter here and i think snape is monetizing better without all the drama. >> thank you for watching cbs fast money. we will be here tomorrow for a doubleheader. mad money with jill kramer starts my mission is simple, to make you money. i am here to level the playing field for all investments. mad money starts now. >> welcome to mad money. my job is not to just entertain you but entertain and teach you. if everybody tries to get out of everything before everyone else, then it what point is

everyone gone? that was the theme of our investment club call at noon today. with the dow only slipping 164 points, s&p declining 1.14% and the nasdaq tumbling 2.26%. we are seeing a circus of downgrades and large price target cuts as the analysts try to get ahead of each other, downgrading and cutting price targets regardless of how low the stocks of gone already. it is abundantly clear that right now it feels like no price is safe enough to buy. nothing. it does not matter if the stock is already down -- so many are. the bears will tell you they never should have been up that much in the first place. it does not matter if they are selling -- devil be able to meet the estimates anyway. nothing seems to matter except getting out ahead of the other

guy. which is funny when you remember we have been in a bear market for seven months. when it comes to technology, do not even ask, this group gets nonstop hate every single day. it is just despised. with much of it aimed at the semi conductor and that i think too even as companies may or may not be doing well. although you can bet the strong dollar is crushing them overseas. i think will be able to ask dressed that. -- it is not how i think, to me, this scramble to get out of the negativity -- is mostly baked in. i feel more construct did about

the market than i did a month or two ago. i bet there could easily become a day where we can get slower consumer data and the fed realizes they do not have to raise interest rates as aggressively as they previously thought. once that happens, the process will be reversed. the analysts will be raising price targets and upgrading stocks as they recognize the sellers have dried up and the buyers want in. they were just waiting for a sign that the fed would take its put out the brakes. and that will happen. i am not saying it will happen immediately but given the -- many goods and even the looming excess in homes because of newfound deal cancellations. it is much easier -- without wrecking the entire economy. that we are stuck with the fear for the time being which is why i want to go over the time -- game plan for the week. it starts with macro numbers.

it is important that people recognize that, we are going to get on wednesday, thursday and friday, the consumer price index, the producer price index and retail sales numbers. i think those figures will be too high and more important than any of these companies. there is just too much inflation. but i also expect early signs of cooling, especially in retail sales since consumers are running out of money they saved during the pandemic. that is something that the ceo of costco suggested this morning. he added it maybe because the consumer has everything she needs which is also bad for retail. in general, the data points are what everyone is afraid of. when everyone is petrified it tends to be a nonstory with buyers coming in after the big bad event passes. but it is cpi, ppi and retail

that have caused so much selling today. how about individual companies. tomorrow, people will be dissecting pepsico. which reports in the morning. i have confidence in them and i think they can tell a good story. their impact cost have come down especially corn and aluminum. we heard a great story from coca-cola and i think pepsi can tell a similar one. maybe even when it comes to snacking at home with frito- lay, provided transportation costs are under control. wednesday, we hear from delta airlines. i think the consumer is not finished traveling. maybe they have everything they need at home but, they are not done traveling. we just saved so much money and missed out on so much travel so now all the airplanes are filled. delta is saying things are not good and that would be a true revelation. and then the banks reporting.

we are getting used to the stocks getting crushed after the report. but what if they are so far down this time that there is nowhere left to go but up. the banks tend to become more profitable every time the fed rages interest rates because they can invest at a higher rate than the will pay you. i think the more this happens, it offsets any damage that could cause by a potential. a potential increase in bad loans. it is amazing that when their net margins were lower, the stocks were higher. now that the net interest margins are high and the stocks are low yet, they are still hated, it makes no sense. it could produce spectacular results. that is why i like morgan stanley and j.p. morgan -- trading lines have been very weak but that is not a reason to sell. according to st. louis fed,

loans were still strong this quarter. that is, as of friday, i think the bank stocks which have been a frigid wasteland could become a hot place to put your money. the usually work at this point in the business cycle. -- if i am wrong, it will still not go down that much. that maybe the best one to be in. also conagra, the packaged food company. they have a lot of good brands that are just getting better, not to mention 3.57% yield. the value -- because of working from home. a lot of snacking, that is something i said would help frito-lay. and the company that provides uniforms and other -- when it merged with its largest competitor. get a check on the -- as i am not sure we will have any acceleration of this kind of nationwide gloom.

we talked about that with -- they still have good business formation but, there is concern things are -- they are gloomy. friday, the bank day. wells fargo's stocks fell after failing to grow much last quarter and higher expenses. i was infuriated by that. the company says there are regulatory issues they are working toward. we own wells for the travel trust but, this is a bank under a lot of federal pressure. much more pressure than i thought at this point since the ceo took over. at this price, i think there is little to lose with wells fargo and a lot more to gain. then, citigroup. they are a total conundrum. the book value is much higher than the stock prices. that means nothing at all to prospective buyers. a lot of you have asked me how could i not want to endorse

this one but, until i see actual earnings i will not go positive. we also get results from -- i could not believe when i saw negative analyst chatter about this great company. i think they are a terrific court holding that rarely come in. clearly defined vision of -- he is a technology fiend. they have the best -- finally, united health. a fantastic, consistent health organization that should have a good quarter simply because covid-19 is not as threatening to the public as flew in terms of fatality and length of time in the hospital. the business has cyclicality, a lot of layoffs. but we haven't seen it yet. otherwise, you have my blessing, just keep buying. that said, we prefer you man up for the travel trust, much cheaper than united health. although lately we have been -- giant run. bottom line, everybody is scrambling to get out of the market ahead of everybody else.

at this point, i think many people were going to sell have already gone which means, we could get pleasant surprise going forward. let's go to indiana. >> thank you for taking my call. >> thank you for calling. >> i am a club member, i love the call today. i wanted to dig a little deeper into -- one, do you feel concern if the pe gets higher and two, in addition to holding the stock long, i have been learning to buy some options from your book, adding back to even. i have some deep in the money calls. this sounds bad but i swear, i could've gotten out even further for the same amount of money. i like oh, i guess i should've done that. >> that does happen i always tell you to go out further because there is a surprising bargain. what you are doing is right. the reason why lily seems cheap

is because i am looking at some of the remarkable things in their pipeline. they have four, five six, seven billion-dollar drugs you are just starting to hear about. that makes it seem like the estimated earnings will be lower . the estimates will have to move up dramatically. that is what i think will happen. not nearly as expensive as it looks right now. it seems like everyone is trying to get out of the market before everyone else. i think most people who are going to sell have already done so. we could get positive surprises going forward if we just get numbers that are okay.

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tech was obliterated today but, many of the hardest hit groups bottomed in may. that includes the -- cloud stocks did a much better job holding up. but if you want to go bottom fishing, you have to stick with the highest quality names. although even some of those are not holding up. you can justify coming in because their stocks have gotten cheaper. the cloud-based software company that helps businesses automate all sorts of information, in less than two months, the stock has gone from 4 to 6 dollars to $490. business is good and they are profitable. we will not talk about the quarter, it is in what we call a quiet time. we want to check in with the president of service now to get a better sense of how the industry and frankly, all industries are doing. welcome back to mad money.

>> thank you for having me. >> you and i got to talking in 70s,. sometimes we just talk about the tone of business. you talk to more people than anyone i have ever met. are business people in tech like the analysts and stock traders about their business? >> i certainly do not think so. i think the mood and headlines is a little bit worse than the reality. if you look at tech automation is front and center. if you have a business and you want to grow it or run it more efficiently were, you want to differentiate your brand, you will have to compete with tech. automation is alive and well and i think the prospects for technology companies, especially ones with very strong brands and architectures will do well. >> there is a mistake in judgment eing made by people

who had not been in the business long. which is tech stocks have to go down if the fed wants to punish the market and slow down the economy. in reality, you bring in tech when you are being hurt by the economy. tech makes it so you can still have good profits. what happened to that -- >> it is true. i see some of the more seasoned ones saying move away from energy and commodities toward tech. since now the multiples have been really brought into a very attractive range. the bottom line, if you look at the world through the ceos out there, they have to deliver great experiences for their customers. they have to make their employees happy and all the relational issues. not just bonuses but, people care a lot about cultures and you cannot yield a great culture without serving your employees in moments that

matter. ultimately, you have to innovate and do it on the fly. tech will be front and center through all of this. but i think one of the things going on is the macro crosswinds are blowing strong. you are at a 41 year high inflation. the dollar right now is the highest it has been in over two decades. interest rates rising, people are worried about security, you have a war in europe. the mood is not great. but, there is no way out except to innovate and drive technology in your company so you digitize your prophecies, you move faster and ultimately win. >> that is what i am talking about. you are describing a countercyclical situation. something that comes in and makes it so you can better handle what the fed is doing. you do not cancel service now

or -- companies we deal with and i know some are your competitors. you cannot afford to rip them out, you have to put more money toward them in order to be able to take advantage of the situation. that is totally true. if you look at the hyper scale out there on the infrastructure side, they are all doing very well. the well-known brands you mentioned will be around. but, there is one serious change going out there and that is, a new level of prioritization in the enterprise. i have seen this hitting a new gear. companies are saying which platforms do we want to bet on and then how do we stack rank the priorities because they are capacity constrained so they choose the projects they want to go after that, there is one filter on all of this and that is fast return on

investment. if you cannot put an architecture in there that gives the customer fast roi, chances are you will get postponed or moved to the left side of the list. >> let go full circle. -- not as roomy as wall street but, one of the things that is true is the ceos are having a hard time working with government. i think they are a little more progressive. government seems to be more of a stumbling block toward growth then the corporations. am i too pro corporate in that way of thinking? >> i think you are onto something. the crosswinds blowing are strong enough that it is probably moving people off their mark a little bit. it is now time to reprioritize what matters. you cannot be swayed by the

news and headlines every day. get back to basics. the customers i talked to are thinking about how to build a great business. government has to run like a best run business. how do you serve the citizens? >> i think you really nailed it. i think a lot of businesspeople want to keep their heads down. they do not want to assert themselves. they are doing everything they can to stay out of the news headlines. they devote more time towards that and they do making the calls they need to get the business done. >> exactly, you talk to a healthcare provider, they have to care about their patients. you talk to a retailer, they have to think about direct to consumer. you talk about -- research reports, the enterprise businesses are strong. of course, you are going to see

the headwind of the dollar right now against well-known technology brands. no one will outrun the currency right now. and probably, when you think about energy and the dislocation caused by the war in europe and the re prioritization i am talking about, you will see longer cycles in europe. but this does not fundamentally change the narrative that tech is the only way to cut through the crosswinds and ultimately get to the other side. , thank you for saying that. i have been beating the drum that this is countercyclical, it is the right time. i felt like having you on would be great. thank you so much for coming onto the show. really good to see you. >> thank you. i think the idea that technology is somehow superfluous right

now is somehow completely wrong. back in a moment. [music - cover of blondie's “dreaming”] [music playing] ♪ dreaming. ♪ ♪ dreaming is free. ♪

bubbles bubbles bubbles bubbles there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles. had a we get -- in this crazy emotional market. to say nothing of the war in ukraine and covid-19 lockdowns in china. this has been a miserable year for stocks and we still have valid concerns. a little over a few weeks ago, the market seemed to find the floor. and the things we were afraid

of started to move the opposite direction. commodity prices have collapsed from their highs. -- many people seem to believe. -- leave that at all but it is true. a sign the fed may not have to raise interest rates as quickly as we thought. china is even going back to normal. although that process is a lot more linear than we would prefer. not that long ago or this market was trading as though a recession was inevitable. i think the average is still reflective of a pretty hard landing and much softer earnings. the doom and gloom remain pervasive. wall street is totally shellshocked. from a fundamental perspective, we are in better shape than we were a month or two ago except for the companies hurt by the strong dollar. how do we reconcile these two competing versions of the stock market. we will do so with the help of our friend mary williams who has been in the game since i

was a teenager. incredible track record. especially -- everybody else has given up. remember april 2020 when everyone was terrified covid-19 with the story the economy. he said business is starting to -- within weeks, the market would bounce with it and that was one of the greatest calls ever. right now, despite all the gloom around him, larry likes what he sees. specifically, the behavior of market participants. every week the commodity futures trading commission releases data on the net holdings of three different types of investors. divided into the public, large traders and fund managers and finally, commercial hedgers. if any of the companies -- it is part of their business model. when it comes to these three

groups, williams thinks that commercial hedgers tend to have the best understanding of the particular sector. they are the only ones involved who are doing more than just gambling. they have an edge that the public lacks. when it comes to the stock futures, commercial hedgers are mainly banks, mutual funds and even governments. when these guys get -- it is often a great buying opportunity. thanks to the weekly commitments of traders report, we know what each of these three groups is doing. especially -- tend to be bullish while the large speculators like money managers and the public tend to be bearish. this is pretty amazing, the weekly chart of the dow jones industrial average futures from late 2009 through 2014.

the redline at the bottom shows the net position of commercial hedgers. the ones that larry says are smarter than the other guys. as you can see, they typically step up their buying. step up, step up, step up. if you move forward and look at 2015 through mid-2019, the exact same story. when the going gets tough, the commercial hedgers go long. step up, step up, step up. finally, watching the dow futures from mid-2018 through today, current day, the pattern continues. it happened again over the last few months. commercial hedgers have gotten more bullish and -- incredibly encouraging. here is the decline that we are also crazy about. look at this. look at that. look at how right they have been. the air right over and over and over again. just as important, the

commercial hedgers and money managers have been going in the opposite direction while the former get more bullish, the latter have gotten more bearish. that matters because historically, when the commercials and hedge funds are going in opposite directions, you are must -- commercials. take a look at the weekly action from 2014 to 2016. the bottom shows the net position of commercial hedgers well the blue shows large speculators. we had a double bottom in 25 teen and 16 which many people i think were on the fence about or, betting against. the commercials were going increasingly long while -- having up, going increasingly short. it is happening again. how about more recently. now, we are looking at from late 2019 through right now. buying, selling. shorting

actually, these are shorting. in the spring of 2020 when covid-19 hit and the market collapsed it was hedgers who bought aggressively while the large speculators got more bearish. more portly, when you check out the recent positioning, the commercials keep upping their net long position while the large speculators get more bearish. this is current day, bullish, bullish, bearish, bearish. i can understand why -- but larry is right. markets bottom when the hedge funds throw in the towel and the public throws in the towel. based on the history, he suspects that is what is happening. when you look at the data from late 2012 through today, he points out commercial hedgers are buying stocks at some of the highest levels ever seen. meanwhile, the large speculators and public are more bearish than at any time he can call.

i cannot believe -- these are the people we hear from every day. that is who you are listening to. when williams says this kind of pattern is bullish for stock prices, the last time we spoke to him -- choppy trading in the market. right now, what he is seeing confirms -- likes what he sees. all he can do is tell me this is it, i like it. exactly what you would expect. here is the bottom line. despite what you heard all day, commercial hedgers have gone very bullish while -- have gotten very bearish. the chart as interpreted by larry williams suggests you want to bet with the reds, not with the blues. as he sees it, you do not have to be smart to know the future, you just have to know what the smart money is doing. i would not go that far myself

but, giving his incredible track record, this is, believe it or not, in a tough day, super encouraging. stephen in rhode island. >> thank you for taking my call. personally, i am bullish on the stock and i love the company. -- 4 1/2%, i would love to hear your opinion. what will drive the growth for the remainder of the year and does the -- >> that actually, the stock is seated where it was and then -- that is very positive. the same -- to be able to buy back more stock and by the way -- a lot of money and it requires them to come in much more easily.

nearly every business seems worried about higher labor costs and -- to keep the costs down. restaurants particularly have it rough right now. but, they also have the benefit of new technology. i am talking about --, a privately held company that you might recognize from chipotle. they are using him to make chips. ever since the chipotle deal was announced back in march we have are -- fast casual change. that adds to an increased impressive roster of customers that are using the robot. a lot of this is still early stage but, they are raising money. they have not had much trouble doing so making it a rarity

right now. i think -- let's just take a close look at this. i have insights from my own restaurant business to see if i should be using robotics with mike bell. welcome to matter money. in my former restaurant days, the thing that cost me the most was someone to make chips. a body that costs a lot, a dedicated technique that is frankly replicable more by machine than a person. how did you come up with this and, is it taking the industry by storm? >> yes, the way we came up with it, when you look back of the house, there is a ton of opportunity for automation. so many tasks that are repetitive. things that humans do not like to perform. for us, it is progression. >> it seems you have the robot

in the service process. basically, you get a subscription and it looks like, say it comes to 45,000 for a fry cook, that is about 25,000 under what a human would cost without even getting into benefits. how are you pricing that? >> we have done a good job of taking the friction from buying from us. most restaurants have a fry station that is pre-existing. what we do is install a robotic arm into the fry station, overnight, over this pre existing equipment. we provided in a subscription service for about $3000 per month, depending on the configuration. it is priced somewhat under the equivalent cost of labor to run the machine. and frankly, fewer hours during

the month. we come in two restaurants and show them a positive roi in the first month. it does not require a large capitol outlet. we are facing a lot of demand. >> what are the replicable things that a robot can do. on your side to help perfect once, to me, it seemed like you could have them do pretty much every part of the -- >> it is a careful balance. we have four products. including a drink solution and an ilt product. can you help us automate xyz. the engineering answer to that question is yes, of course we can. the business person answer is often different. the question is, can we do that

and price it in such a way it represents a positive roi for our customers. that is not always yes. we are careful about what products we take on. we have to demonstrate that the robot can do the things the human can do at a better price. >> chipotle was the one that first told me about this. they made it clear, these are not the jobs people want. which made me think, there are so many hundreds of thousands of restaurants that your company could actually play a deflationary role in the economy. >> yes, and if you think about it, the restaurant industry as we are sitting here, there may be a quarter of 1 million locations where human beings are cooking essentially the same kind of food -- largest distributed factory base if you will. the restaurant industry is kind

of lagging other industries in terms of adopting automations and cost-cutting technology. we are the forefront of fundamentally changing how food is cooked in america and frankly, the rest of the world. it is not a matter of taking over all the functions. there are tasks that humans are naturally better at. for example, interacting and working with other humans. but, the task like a fry station. as a human being, it is not intrinsically good at managing all those baskets at once. we look at that as a natural use of technology and automation. we are off to the races, starting with the price issue. >> one last thing that i think is true for someone in restaurants. these are not save jobs, necessarily. people get burned constantly.

that is the end of that with the robot. >> exactly, when we install -- in the restaurant, there is the barrier shield that separates the robot area from the human area. the robot takes over and all of that hot, dangerous job -- we talk to restaurant workers and they are quick to say do not ever try to get this thing, we love it, we have to keep it here forever. it makes the operation quieter, smoother, faster and safer. >> your product will be a godsend to both people who work in the restaurant industry but also for the bottom line. it is terrific to see what you have done. thank you for coming on the show. >> thank you. >> go to their website, you can see how many things they can automate. every one of the jobs they are replacing are not as desirable as other jobs.

and you have to understand, the roi and dislike of these jobs is just made for the robots. finding the perfect designer isn't easy. but, at upwork, we found her. she's in austin between a fresh bowl of matcha and a fresh batch of wireframes. and you can find her, and millions of other talented pros, right now on upwork.com [sfx: street ambience]

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it is time -- the lightning round, are you ready?

let's go to jeff. >> thank you for taking my call. previously, you highlighted bath and body works as a top pick which probably indicated a potential by opportunity. but with the recent decline in the retail sector and especially in the bath and body stock, do you currently grade bath and body as a buy? >> i did say if it was in the mall it would have trouble. that was from the horrible battle we had with -- i still cannot prove it because it turns out the yield -- does not stop the stock from going down. let's go to alan in florida. >> i want to ask you about 23 and be. a great partnership with -- development. i think about 40 more -- what

do you think about that? >> i am shocked. i am just shocked, they should just close their eyes and -- i think that the risk is priced. charles in north carolina. >> thank you for taking my call. i have a -- miracle grow that i am down significantly. it is a retirement account and i have considered buying more. >> this is a -- housing and long play that got turned into a pot play. anything that is cannabis related is no go in my book. ken in california. >> --

>> not proprietary enough. that is not the right course to bet on. let's go to jack in georgia. >> this is jack -- thank you for taking my call. i have been watching your show for about 16 years. my question is about the canadian energy trust -- pipeline. >> i do not know why that stock is as low as it is. i think it is a terrific investment and a good deal. i would be a buyer of that. and that is the conclusion of the lightning round.

nope. run! ♪ ♪ [ droning sound ] >> i heard today that elon musk

can simply just get away with breaking his deal with twitter. anyone who -- delaware is the best place for businesses to incorporate. to break the deal he will have to go up against delaware judges. that is not easy. these are experts, they are brilliant and take their jobs fiercely. their job is to enforce contracts. judges in delaware -- which is why they are not just going to let elon musk, contracted by twitter go on unenforced. there are very few outs in this kind of contract, he initially stipulated he was fine with the major issues he is now complaining about. that is why, tonight in his letter, twitter told elon musk efforts to terminate the deal are quote, invalid and wrong for. if i was elon musk i would want out to. twitter is not worth what he agreed to pay for it.

because the sector has cratered since elon musk agreed to by twitter. but, you are supposed to do your due diligence before hand. it doesn't matter -- since the deal with twitter wanted to break the contract but, -- i know that elon musk and his team did a deep dive on the bogus accounts issue and he personally told twitter he was satisfied. the idea that twitter somehow held anything back is ludicrous. why would they hide anything. twitter must do everything in its power to make this happen. in the end i do not know what price elon musk will have to pay but, when i look at similar cases brought in delaware -- out and out fraud situation. he has two options to litigate

over a long time. and then have to buy a vastly depleted twitter negotiate to by twitter now at a lower price that seems fair to both sides. what i think will happen is -- twitter is -- would look like the other social media companies. he is too brilliant for that. really just expected to be one more -- never would've made the deal to begin with. it is either that or it was never about the money. of course, if he did not have anything special planned for twitter then buying it was a stupid rash decision. but that is a problem every buyer faces. if he had -- look like a genius instead trying to decline the deal looks foolish. let the state of delaware seem arbitrary and capricious and therefore it will not attract businesses. you have to get together with

twitter right now and come up with a better price. otherwise i think a judge will end up forcing you to buy something really worth a lot less than it is now down the road and possibly at a full price. better to just take the hit upfront and go buy it. ♪ the january 6th committee readies for one of its final hearings i'm shepard smith. this is "the news" on cnbc steve bannon agrees to testify, and trump signs off. >> this is a gimmick he does not want to testify. >> plus a former spokesperson for the far right oath keepers set to tell his story. the accusations the group brought explosives to d.c. what the committee is expected to lay out president biden interrupted during a ceremony for the new gun law. >> sit down. you'll hear what i have to say >> and the polls that show how many democrats want a different candidate in