mike khouw >> i like vertical call spreads in some of the retail names, including discretionary like nike, and i would hedge my bets in fedex with a vertical spread, put spread in this case, though. >> that does it for us in "options action. wereac a bk next my mission is simple, 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. hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to heamake friends, i'm trying to save you money. my job is to teach, educate, train and entertain. the fed is in full rate hike

mode and it's scarring everyone like they're trapped in a burning building which is why the s&p tumbled and 1.11 and the nasdaq dropped .97% first time it hasn't been worse than the s&p in awhile by the way, nice increase from earlier in the day that bad today there is just one problem with the thesis why the heck didn't these people sell. >> sell, sell, sell, sell! >> at any point in thepast year why now? the fed wants to see lots of layoffs to tamp down on inflation and it's not happening and they're getting scared there is a shocking lack of urgency in actual corporate america. like most companies believe they can avoid a downturn as their competitors get hurt jay powell can't fire anyone directly but if you listened the other day, he's practically

screaming at business people to stop hiring people that's how you create slack of the labor market that equate into price cuts. the timing is until the action makes sense. we'll see big layoffs after christmas because even grinch-like ceos have a heart when it comes to timing. the latest fed statement gives every ceo in america cover to rationalize and let a lot of people go. the fed is giving you what you need to do and that's why i want to start next week's game plan with the suggestion that we'll soon need to have a tote board for the layoffs because they're going to grow as business softens i think the epicenter of the layoffs will be in silicon valley with enterprise software being ground zero. software for big companies over the last decade, the hottest ticket in venture

capital was companies whether an l analyzing data these outfits could make a lot of money as long as there is new companies to digitize and migrate to the cloud we hardly had any ipos for the past year and that means fewer clients, maybe far fewer potential clients so less business for the industry so far, though, these enterprise software plays again, i'm telling you, that's where the trouble is, have been reluctant to fire people maybe they are actually afraid of looking weak. i got news for them. bad news they should be more afraid of their own viability. which brings me back to jay powell in many ways, the most powerful tool isn't raising interest rates but the bully pulpulpit. he says he is going to keep raising rates to encourage them to let people go when you see goldman sachs plans to lay off a lot of people, no fixed number, you got to figure the other brokerage houses will mimic car.

if you're in retail you might take your queue from bed, bath and beyond and christine, the president of the european central bank said yesterday they could be in store for three more 50 basis point rate hikes this year if inflation doesn't get under control. a major reason why the morning was ugly because we have to believe maybe it could head our way, too you need to understand the job losses are coming no matter what the only question is whether they will be small and surgical or more like the layoffs that we saw in 1980 when paul broke the back of inflation with endless rate hikes but also totally wrecked the economy. with that in mind, let's talk about what's coming. we don't have much corporate news on monday it a strange day just a void day. if i were a company i'd report that day the only company anyone

would focus on tuesday is important at 8:30 a.m. we have start data. this is usually the epicenter of the layoff not this time. we're not building enough homes to meet our population growth so housing prices just won't come down, which is a major disappointment from the fed's perspective because housing is a big part of inflation. that's another reason why powell is targeting lower wages unless we get a big housing number and i doubt we will, there won't be a decline in home prices, which is what he wants to see if jay powell wants to beat housing inflation, you can't be afraid to take a more expensive mortgage that could take years. we get earnings from general mills. i like this company very much. stock up 29% for the year. general mills got away with multiple price increases with the best brands including pet food the stock is up so much i don't know how much it can rally on a great number but the market is getting over sold and so

therefore it could still work. the other side of the trade happens when we get after the close federal express. now, fedex has had a tough time. this company is preparing to take a ton of costs out and because it's just got to get more profitable. some people might be upset by the number, the size of the layoffs if they do have layoffs but let me tell you this if you think the fed is playing a bad hand, you got my blessing to buy fedex after the quarter because new management will make this company hum nike reports, too. i've never seen so many price hikes without anything behind them as we've had with nike like with estee lauder and starbucks, people are simply trying to get into this one ahead of china's big reopening and you know what? i think they will be right i think noike works. people aren't buying goods like they used to but still traveling so how about the cruise lines. we get results from carnival on wednesday and i think they will be bullish because there are

plenty of people that haven't gone anywhere in years and they're desperate for a vacation cruising is a bargain. let's face it. it should be one of the last groups to show pain as the economy slows down you want to know how the small, medium size businesses are doing, look at cintas that makes and cleans uniforms. they totally dominate the market cintas business is better than ever, they're giving us more 50s. after the close we hear from the commodity chip maker there is a glut of semi conductor makers and china's repeated lockdowns it's been telling it straight the whole way ever since 90. they tell us there is still a glut on wednesday, stocks in the low 50s, i expect yes, another leg down for the semis if they've been bouncing since october. i think the most likely outcome will be a glut and you'll see a lot of chip stocks for sale on thursday now, thursday morning we get the best barometer small medium size

business paychex. they're never down beat having a good run if paychex talks about growing and hiring look at more 50 fro the fed. just take it plain and simple. same for car max, the used car chain. we used to hear prices are being rolled back and sales weak because that means the fed is winning the war on inflation i don't know car max troubled industry. now, i feel terrible about these negatives that need to happen but if we don't get them, then the future looks even uglier because the fed will have to do more than just talk. that's especially true if we get a core price deflator number on friday morning that shows inflation is still burning hot this is a figure jay powell very much cares about he seemed to care about every figure, though here is the bottom line, we want the fed to talk big game without needing to actually do too much. talk is better than action

we want him to scare the economy into slowing under some wait we don't want endless rate hikes or what they were talking about yesterday to destroy everything in its path. i'm optimistic powell can do slower inflation after a day like today, i feel like a pretty darn lonely o optimist ken in arizona, ken? >> caller: yes. >> ken, you're up. >> caller: oh, well, good. jim, just want to tell you how impressed i am that you and your staff can turn out these such high quality consistent programs day in and day out. >> wow i love that. i'm looking at my staff. we are -- i mean, when friday comes around, we're either like punchdrunk or saying okay, this is the best show we'll do in our lives. i greatly appreciate the kindness how can i help >> caller: i want to talk about

dillard's today, dds. >> yeah. >> caller: they describe themselves by saying we're a retailer of fashion apparel, cosmetics and home furnishings and from there they're about a $5 billion market cap, 6.2 total sales -- >> it is an inexpensive company that's doing better than others. i have to tell you, i'm not a huge fan of retail right now we've really cut back on retail for our charitable trust, which you can follow along by the way. really i thought very good lecture yesterday we gave. little trade in our monthly meeting. i prefer costco. because i want to own the stocks of companies that create bargains for consumers i am still optimistic jay powell can get much lower inflation but after a day like today, it's pretty clear i got a very lonely

position on "mad money" tonight, this was a nice reminder to make sure you hold a diversified portfolio to handle whatever the market will throw at it. tonight we're playing "am i diversified" and taking a closer look at the top performing industrials of the year. i'm offering three names i think could have a strong showing for 2023 probably want to write them down should supply chain worries continue to be top of mind going into the new year after all that we've seen let's find out let's talk to the ceo of flex port so stay with cramer >> announcer: don't misa ss a second of "mad money." have a question, tweet cramer #mad #madtweets send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc

miss something head to "mad money" at cnbc.com. (vo) hi, we're visible. a different kind of wireless company. in sports, catches are a good thing. wireless? not so much. so we don't do catches. with visible you get unlimited data for just $30/mo. switch now to get a five-year rate lock. not a catch in sight.

did you know your health has more to do with your zip code than your genetic code? that doesn't seem fair. we agree. but where you live determines access to doctors, green spaces and fresh food. that's why we grow our own. smart. we don't think it's right that some people are healthier than others just because of where they live. that's why we're delivering food to areas with less access to it, and helping schools teach kids about gardens. wish they'd taught gardening at my school. you would have aced it. introducing elevance health. where health can go.

just look around. introducing elevance health. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting.

it'salways hard to watch a major market selloff like this week but it gives you reason to reassess the positions you have, maybe make your portfolio more ready for the shock of the system and that's why we're playing am i diversified what do you do call me, give me your top five holdings and i tell you if you're diversified enough. maybe we need to change things we'll start with a tweet from ron that asks @"mad mon money" @jimcramre,, r, home dep, ibm, accenture, honeywell, i didn't think it was nearly as

bad. i thought it was fine and i want to buy that stock on monday to tell you the truth that is a comb pany that does it analysis for you as a company. ibm also does the same thingso l i prefer ibm over accenture. home depot the great box retailer and starbucks and put up many more stores in china you want to buy that aggressively it was down today and honeywell, climate control. industrial food and beverage company. we've got an absolutely fantastic big box retailer we have ibm. we're going to say no to accenture because ibm is doing better and we have a health care company we'll add is eli lilly i think that's the best. i'm going to come back on accenture. now let's go to richard in new york, richard?

>> hi, jimmy chill my five stocks are boeing, apple, broad come, john deere and nvidia am i diversified merry christmas. >> i'm liking it i like that sweater, too remember the ugly sweaters that's a good looking sweater. bad quarter comment for apple. said it yesterday in my conference call for those who are members of the club. nvidia up 40% in october but probably a little exhausted but make the finest chips in the world. deer is my favorite industrial broadcom with a knockout quarter. this is high in semi and boeing is making a comeback air space. we have technology we have ag and two technologies. yes to nvidia up too high and once again, you got to have an economy slowing, you need health care i keep emphasizing that. this time i'm going to say once

again we're going to go with j&j for those who don't like eli lilly so i'm giving you play let's go to alexander in michigan, alexander? >> hey, jim, me and my dad love the show i'm alexander from flint, michigan am i diversified coca-cola, gm, walmart, apple and boeing thank you. >> don blake, my brother-in-law is an engineer from michigan they probably know each other. that's probably a stretch. coca-cola, beverage company. mary barry is reinventing gm i'm here apple is technology. boeing we blessed that aerospace. walmart, all right walmart is good. i prefer costco to walmart but i like this of pure diversification. we got beverage. we have auto we have tech we have aero space and retail. this is what i'm looking for

it is the way you should be thinking let's go -- oh, we're going to texas. ed in texas, hi, jim, this is ed from irving, texas home of the dallas cowboys. am i diversified and i'm preparing for retirement in one or two months so i have a portfolio on dividends my top five holdings are at&t, abviv, capital one financial, southern company, and qualcomm thank you very much. >> wow this is going to be very hard. okay i'm going to be harsh. they went from 1.5 to 3% capital one. way too high we're not going to own that. southern is one of my least favorite because they have screwed up on a couple big nuclear plants we're going to go with aep american eletric power att slashed dividends so we're not going to ever buy a company

that slashed the dividend because we're trying to get dividend income here abbvie, i'm not crazy about it i prefer j&j and qualcomm is a charitable trust name we're extremely disappointed in and i would not own that for yield we got to do a lot of changes. we want to change the equality let's do jp mornin pp morgan, a that out i'm not ready to give him verizon. don't want to do that. i'd rather own the two-year treasury at 4.1. better piece of paper. we'll keep abbvie. we sold it for the charitable trust because we were worried about the outcome of a couple stocks that may not be doing as well as people think let's go to one more jimmy chill says randall in california, randall? >> hi, jim, this is randall from california first time, long time club

member my top five stocks are devon energy, dvn, enph, ed stee laud el, proctor & amble, pg and wells fargo, wfc am i diversify snd. >> we touched on stocks including wells fargo at 40. amazing given the fact they haven't raised the rate they've given you. wells fargo is the bank to own here estee lauder with china opening is ready there is going to be a makeup surge there. that's why the stock is up 50 from the low but still down 100 from the high. proctor and gamble, one we've been fighting and battling and fighting and battling. the raw costs going down and prices will stay the same. it fantastic i'll call this cosmetics and

i'll call this consumer package andlet's be different enough end phase we cover this as one of our favorite solar plays and devon has come down 20 points and i was ready to pull the trigger on devon but frozen and we're frozen again remember, we never trade on anything that's been talked about on this show for three days why? we don't ever want anyone to think that wow, you know, what we bought devon and devon moved up, that kind of thing or we're using the show i point that out the rules are available on the site rules matter and matter -- they're everything to me we have a bank, makeup company, we've got a solar company and one of the finest energy companies run by a man who knows more about energy than anyone in the country, the first to have this incredible dividend policy that gives you a huge return, which makes me think i should have suggested devon to the previous caller when he said he wanted income and get rid of the gosh darn att that cut the

dividend and shamed us all "mad money" is back after the break. >> announcer: coming up, our sector by sector trip across the market continues the best industrials of 2022 and an eye to the future, next

i was having challenges with my old bank. lots of red flags. yellow ones, too. fees, penalties... unnecessary fees! ...playing dirty. so i broke up with bad banking and moved on with sofi checking and savings. now, i earn higher interest on all my money, and pay no account fees. feels good to get my money right. banker disqualified! [announcer] break up with bad banking. get up to 3.25% interest, and earn up to $250 when you set up direct deposit.

if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee, even if it received ppp, and all it takes is eight minutes to get started. then we'll work with you to fill out your forms and submit the application, that easy. and if your business doesn't get paid, we don't get paid. getrefunds.com has already helped businesses like yours recover over $2 billion, but it's only available for a limited time. go to getrefunds.com powered by innovation refunds. ugh, this rental car is so boring to drive. let's be honest. the rent-a-car industry is the definition of boring. and the reason can be found in the name itself. rent - a - car? you don't want a friend. you want the friend. you don't want a job. you want the job. the is always over a. that's why we don't offer a car. we offer the car. ( ♪♪ ) sixt. rent the car.

after another awful day for the averages, i wanted to do something constructive this whole year has been ugly for the market because there is a fed mandated recession and those fears get more and more real even an ugly market you can find winning stocks if you know where to look. >> house of pleasure. >> that's why all week i've been focused on best performing stocks in the best performing sectors according to the global industry classification standard breakdown because they give clues what might work next year,

which may not be as horrible as this year. while most of this year's winners weon't be able to put on a repeat performance 2023 there are good ones once you drill down i'll focus on them so you know them we've been through energy, the fifth place sector is the industrials down 7.3% for the year definitely nothing to write home about but still enough to beat the mighty dow industrials like with health care, which we talked about yesterday, the industr industrial make it the second largest group behind tech and a real grab bag when you look at them you typically think of machinery, right this 11 sector breakdown contrad industrials and transports the defense stocks have been on fire since russia invaded ukraine and the world reck nieni --

reck r regula recognized need. they benefitted from last year's big infa rastructure bill the transports have been crashed. even the airlines were on the weaker side despite the fact we had a booming bull market in travel i'm a believer in the story but wall street seems surprised when the airline numbers stay strong. the industrial is touching on housing, stanley black and decker, what a disaster. forcing brands out innovation and change the name they all finished bottom ten and higher quality companies that sell into commercial building projects have been struggling. you can divide the industrials into two categories. companies that are hostage and government spending which are in much better shape. consider the three best

performers for the year. lockheed, deere. the defense contractors and they're tied to a global agricultural boom and they're also making money from last year's big infa srastructure bil let's take them one by one starting with northrop grumman across air, land, sea, space and cyber. all areas happy to spend money they're a leader in drones and long-range stealth bombers and rode out the b 21 bomber they offer military grade cybersecurity system lunges. t -- solutions. they are a top priority for the pentagon tons of big ticket hardware. the war in ukraine created a tremendous bull market in the defense stocks, we're not seeing a ton of the hardware being sold to ukraine

cannon ammunition, rocket propulsion and surveillance. the stock caught fire because the russian invasion reminded we could end up in a conventional war causing congress to boost defense betting and the europeans are doing the same thing. if you have a conventional war, you need northrop grumman. can the stock keep climbing? it has more expensive. it's trading 21 times this year's earnings estimates not unreasonable if you think we're looking for a period of long remilitarization the second best performing was my favorite, lockheed martin up 35%. this is another defense contractor that's become surprisingly controversial after going higher this year in the spring, lockheed trended lower throughout the summer and early fall we saw a bunch of downgrades with analysts arguing that all the good news from ukraine was baked in but then the company

reported a strong quarter in mid october, couple $14 billion buy back and the stock caught fire surging to a new all-time high a couple weeks ago that buy back surprised people we're seeing the negativity creep back into the picture again. this time morgan stanley downgraded yesterday from buy to hold as they raised the price target substantially my view, look, lockheed took a legitimate hit last week losing a key army helicopter textron but this is a great defense contractor with leadership huge programs think the f-35 fighter all sorts of missiles including the javelins doing such good work in ukraine. while there is definitely less upside than there used to be here because of 36% run, i think lockheed is a buy. definitely a buy on weakness the best performer is one i keep coming back to you again over and over again, john deere we liked this one for a long time because farmers are flushed after high crop prices

when farmers have money, they buy deere so their order book is full into the back half of next year and the big construction business should get a boost. buy american deere sells were 15 times earnings still cheap after running for 25%. beyond the three best performing industrials, this are other names i like caterpillar was the tenth best performing up double digits. i like it almost as much as deere after that most recent blowout quarter but cat has much more exposure to infrastructure and i think they also got a boost from oil and gas industry coming by the way, it's interest egg. i know jim, cat is more to oil and gas and private oil and gas are still drilling like mad. definitely worth loaning next year is one we talked to recently really well run itw this stock is slammed this year due to slow down worries even though the company keeps

beating the numbers. and the most recent quarter, they had 16% organic growth. while illinois tool works rebounded off the lows in recent months, it's trading cheaper than the historical average trading around 25, 26. i like it more in a pull back but i give you my blessing to buy itw ask here is one i really like i'm a big transport fan. some haven't been punished enough that's how i feel about the great csx, the east coast railroad east coast port is getting more business and shipping companies adjust to the fact west coast ports are dysfunctional. csx is minting money with coal they don't talk about that much. europe loves car coal because they denuclearize. i think it's worth buying going into 2023 especially with the stock down 16% for the year. a lot of upside. bottom line, look at the best performing industrials, they're companies to something beyond the business cycle lockheed, they're about defense

spending i expect them to do well again next year although i prefer caterpillar, illinois tool works and csx as ways to make money off infrastructure spending and industrial growth. jerry in new york, jerry >> caller: how are you >> great how are you? >> caller: doing well. jim, what i'd like to briefly discuss with you this evening is boeing and looking at the past one year chart, we see that boeing peaked at 225. >> right. >> caller: january of last year. of this past year, excuse me then it was on a downward trend -- >> had manufacturing problems. right. right. >> caller: so since mid june of this past -- this current year. >> right.

>> caller: it reached a peak of about 172 give or take and then -- >> true, but then went down but then i got to tell you something, jerry, i think it's going to go up again why? there are only two, the europeans and us and starting to get very big orders. i've been a critic about boeing being run but if that stock came down, i'd buy it and that quarter, the quarter coming up next, i think will be a good one. i think you can buy some at 185 and wait for it to come in on a pretty ugly day because boy, do we ever have a lot of ugly days? i expect them to do well again next year, deere my fav. i like caterpillar, illinois tool works and csx because -- >> all aboard! >> much more "mad money" ahead including my exclusive with flex port they have taken a lot of business away from the west coast. one of the reasons why i like csx so much. so has the logistics changed in a post covid world

i'm checking in and could jay powell be further along in his fight against inflation than we think? i'm surveying the data giving you my take and all your calls, rapid fire in tonight's edition of the lightening round so stay with cramer! who is t with cramer! who is t >> announcer no, hard pass. puss in boots. rated pg.

about 18 months ago we gotten early notice about the quickly ed ly escalating supplyn crisis the founder of flex port, a privately held company to help customers do a better job of

managing logistics it's the solution to an important problem how they ended up as number one as the cnbc disruptor 50 list. since he tipped us off, we view peterson as a best source of the entire issue every time we spoke, we learned more because the commentary is spot on. it's time for an update. let's catch up with brian peterson, the co-founder and ceo of flex port welcome back to "mad money." >> nice to see you, jim. boo-yah to everybody out there . >> you told us costco and how much better are we and how do things need to improve? it depends who you are if you're a business that's shipping things are better off and prices have come down which is the main thing we care about. we've seen a decline in the spot

market signing up to ship a come tan -- container without a contract is down. transit improved what is taking 180 days to get cargo from asia to the united states, it takes two weeks for ships to cross down to 5 five days. huge improvement if you ownerships, it's not very great right now, the price has come down and starting to turn from a very profitable business so let's see what next year looks like. >> look, one of the things that we were clearly in the grips of is china and now i keep hearing people are diversifying away but i hear forget about it really. the ports aren't deep enough china is set up to handle export have we actually shifted any business away from china during this period? >> no, i mean, there is more volume coming out of china than ever really. we're doing more trade with china than before the pandemic that said, it's like a long run

over the last decade, a lot of industries moved china's labor cost has gone up which is a thing for getting paid more. less competitive for low value ad things like apparel that's largely moved to southeast asia. that's an ongoing trend to continue the narrative is over blown about everyone moving away from china. >> ir am glad you cleared that up flex port itself if you don't mind me asking hired 400 engineers. first, i want to own shares from flex port that says no, it's not public. >> yeah, we're still privately held company we'd like to go public we have more to prove to ourselves and the investing world. we're a technology platform to make it easier for companies to manage supply chains and get space on ships and airplanes but it's about door to door

management and moving the cargo where it's made to where it needs to be and giving visibility and control so you can route around bottlenecks and accelerate parts of the supply chain and accelerate orders and get a better sense how your supply chain is running at all times. we're hiring 400 engineers in the next year and we'll beef up the tech team. it's a great opportunity as companies are scaling back, we raised $1 billion at the beginning of the year and p prof profitable we feel good about our position. >> that's terrific let me ask you, i've been dealing with railroad companies and they're claiming the east coast ports have been dormant have come alive as people realize there are other places to drop off cargo. is the southeast making a come back from the way it used to be? >> i don't know how permanent that will be right now on the west coast, the international warehousing union, the ilwu runs the ports on the

west coast, they are operating without a contract since the summertime and so a lot of people have been very nervous that there is going to be a strike on the west coast and so they started to route cargo to the east coast in anticipation of that. i think that's probably going to last until they get a contract signed, which hopefully that's soon they've been operating without contract for almost six months if they have stability on the west coast, it doesn't make sense taking the extra two weeks -- >> understood. now, a lot of our retailers including fine retailers actually got caught without a lot of inventory and had to ship by fedex, other airways. it cost a fortune. it was bad did anyone make that same mistake this year or did they solve these problems >> so what we've seen is the opposite right now where people have too much inventory and stock. think about it when you had the 120 days is what it was taking from asia to the u.s., when that reduced to 60, you got 60 days worth of

extrain inventory that showed u so they're over stuffed. walmart announced 10% more inventory this year than last year costco is about the same you're seeing quite a bit of that it's kind of natural then what is happening is they've cut back orders to replenish because they don't need goods right now that's a big question mark is when will they start ordering stuff again because container volumes are down. >> one last question, what was happening before you people who had nothing to do with logistics making big logistics decisions? >> you know, i think this is one of the older industries in the world. freight forwarding has been around since the time of memorial and i joke it should be freight email forwarding, emailing pdfs to bring sanity to this under invested area of the world so that logistics professionals inside companies and asset owners can get access to realtime data and make

decisions like and have modern software like they deserve. >> well, look, i think you have done a lot to be able -- all of us to this industry. i want to wish you and dave clark, your co-ceo we hope to be able to get in touch with him. congratulations for all of your success. ryan peterson, the founder, co-ceo of flex port and best known as the guy that called this whole thing well ahead of everyone else. thank you, great to see you. >> thanks, everybody have a great day. >> announcer: coming up, what's in your mind cramerica give us a call the lightning round is storming the nyse next [newscast audio] hello, world. or is it goodbye? you know, it seems like hope and trust

are in short supply. [clap] now, as businesses we can blame and shame. or [whistles]... we can make a change. [clap] we can make work, work for our communities. create more equal opportunities. [clap] maybe, just maybe, get a bit more unity. ♪ let's have less cancellation and more conversation. prioritize conservation. and... empower future generations! [clap] [chuckles] let's question again what we think we know. use our power and our people... to pay back what we owe! [clap] ♪ it's time for business to show its true worth. because it's not goodbye, world. it's hello, team earth. [clap] now, let's get down to business. at adp, we understand business today looks nothing like it did yesterday. while it's more unpredictable, its possibilities are endless.

from paying your people from anywhere to supporting your talent everywhere, we use data driven insights to design hr solutions and services to help businesses of all size work smarter today. so, they can have more success tomorrow. ♪ one thing leads to another ♪ at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward.

so you can enjoy more of...this. this is the planning effect.

no >> announcer: lightning round brought to you by ameritrade. >> buy, buy, buy, play this sound and then the lightening round is over. are you ready, ski daddy time for the lightning round start with adam in oregon. >> caller: mr. cramer. love you show. >> thank you, adam. >> caller: thank you for your hard work and dedicated diligence. >> i love oregon my daughter had the best time working up there what's going on? >> caller: glad to hear that i know you're cautious on nuclear. energy is on fire and carbon trading. >> yes. >> caller: speaking of which, i seen intriguing partnership be nuclear, solar, wind, hydro and power house investor is it time to green light brooke field renewable energy partners?

>> man, i've been skeptical of that one but you know what? i'm always willing to -- i learned that from will frost but i'm willing to reopen the books and see if there isn't something here we can't find put me down for that mr. oregon. let's go to anglo in new york, anglo? >> caller: hello, jim. i love your show. >> anglo thank you! yes. >> caller: also, i'm hoping this year underneath my christmas tree there is a two-year club membership if my family is listenings, would make a wonderful gift. >> what a great gift yes! what's up? >> caller: my question, cck. crown castle and steel company i bought it -- >> crown cork. i love those guys. i loved them since i was a little boy and my dad said i wish i had money to buy a share. it's come down great industrial

winner vinnie in new york. >> caller: hey, wathhat's goingn jim? >> i don't know. trying to decide whether to sit at home and watch the game or sit at my wife's and watch the game what's up? >> caller: lucid stock has fallen -- >> yeah, we don't -- come on, we don't want to fool around with that we're afraid -- the thing goes down, down, down i see a trend. i got the eyes i think that one is just too dangerous. no more? let's take another i say we take one more because it's friday and because it's my show let's go to steve -- i always wanted to say that let's go to steve in michigan, steve? >> caller: boo-yah, jim. >> boo-yah steve. >> caller: love the show. >> thank you. >> caller: calling about jory

aviation. >> put theman on the moon, let's leave it like a story and not think of it like a stock and that, ladies and gentlemen, is the conclusion of the lightening round. >> announcer: the lightening round is sponsored by td ameritrade coming up, there's always a glow at the end of the tunnel cramer's thoughts how to protect your portfolio until the fed sees the light, next you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah!

it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. researchers believe the first person to live to 150 has already been born. it could be you! wow. really? of course, you'll have to eat your greens, watch your stress, wear sunscreen... but to live to 150, we're developing solutions that help doctors listen to your heartbeat while they're miles away, or ai that knows what your body will do before you do. cool. introducing elevance health. where health can go.

memo to jay powell, maybe we're closer to beating inflation than you think this morning the s&p global flash u.s. services purchasing managers index, i know, real mouth full show biz is slowing pretty darn quickly in this country i had no idea how weak our economy has come let's take inflation inflation pressures in the service sector of quote cool notably in december as input cost rose at the softest pace since 2020 big deal inflation is going the right way. service sector prices are growing at a piece of 2020

good news. it was not good enough yet but let's go to actual business. listen to this, quote, conditions are worsening as 2022 draws to a close with a steep fall in the pmi indicative of contracting in the fourth quarter at an annualized rate of 1.4% that's an actual reduction powell is looking for. the report goes on quote, jobs growth has meanwhile slowed to a crawl as firms across both manufacturing services take a much more cautious approach to hiring amid the slump to consumer demand. i've told you over and over again and the fed wants to see mass layoffs before they start raising rates. powell knows how this goes you get cautious hiring like we have now and as long as demand stays soft, that leads to aggressive firing. the weaker demand has taken pressure off the supply chain that will result in lower prices the bargains power is shifting

from the seller to the buyer that made that point that is so eye opening that shift is going to mean lower prices for us all. a reliable out fit that we had on last night. these implications are huge. if powell plays for time with smaller rate hikes along the way, i don't know if i want the 5 50s, he'll be able to beat inflation. the negativity is what i read you. we're in bad news is good news mode the worse the economy gets, the sooner the fed can relief the pain stock is trading like the fed is making zero progress and will do multiple 50-point basis point hikes as said in the press conference yesterday what is missing? simple the companies being forced to cut prices will have to lay off people, maybe a lot of people. we know many firms hired too many workers over the past few

years including goldman sachs. that brought in a lot of people to meet demand goldman had to do that so much demand now that demand has managed. we know it's gone because goldman sachs is planning to lay off a lot of people from the work force and it's been adamant it wouldn't do that unless the revenue declines more severe obviously, you never want to root for people to lose their jobs but from the stock market's perspective, that's what needs to happen before stocks can mount a real comeback. not these kinds of one off days. of course, there is another camp that says you can't win regardless of how this plays out. think they think we're going to have a serious drop in demand that will cut numbers or have supply that will cut numbers either way thanks leads to a spike in bankruptcies and a wave of defaults for credit card companies. i say so what? pick the right stocks, the ones that raised prices and cut costs to comp sensate for inflation, they will clean up as costs come

down allowing earnings to explode. we talked about it with proctor and gamble they're always on a bull market somewhere but harder to find at times like these i still say there is always a bull market somewhere and i promise to find it for you right here on "mad money." i'm jim cramer see you monday [dramatic music] male announcer: more than a hundred of america's biggest bosses. - i just hope i can keep up with the guys. announcer: have gone undercover in their own companies. - nah, it wasn't as easy as it looks. - so... - here we go. - lift me up. - i'm about to just live out here. - i would almost swear you look like somebody else. - right here, right now, we're gonna shut the restaurant down. announcer: more than 20 million dollars has been awarded to employees. - because i wanted the check for $250,000. - oh, my god. announcer: and millions of lives... - i'm gonna pay off the mortgage. announcer: change forever.