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tv   Mad Money  NBC  February 2, 2016 3:00am-4:00am MST

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nothing. even on a y li tay where the dow cled down 17 pnts. s&p losing.4%. this tellsou nothing about tomorrow or the ne month or thnext year. so tiresome. but'rsta how ts nonsense gs perpetrateso it doesn't miead yo first, it'true, ere are patter to thin. we likto looat the technicals, right? so to eabecause eyhow some pterns that you c t toakmoy fr.ccept the fact that a compy s patterof missingng it's quarters then wshouldn't touch itnt that patter comes ton end. we totally buy into the notion that theconomy tends to slow when the fed raises rates. th's a pattern you see time and again. that'salled economicbut ese other patterns, the seas
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under anscrutiny. for example i hed today this very morning thabruary can be a cru month based on a buh of bad februies. today dr. stley fisher spoke at the counselhile he was s rtainly more dovish than he's been emphasizing data dependence and not the need fore hike he didn't take the rate hikes off the table buhad he done so, weid a rate hike. we should wait a consirable period until we do another because of the worldde turmoil since the last hikand then the averages would have roared gher today en ashe softer comments i wld contend did ovoke a ll that mean if today would haveeen good we wod have beenn good speorhe rt t m does tha does that mean that weld call into question as january es so the year. atou be nice january wise and however the swer is no is is a tale told an idt. siyi nothing. so why do many people pnt itut? first let's be hones many commentators escily those that haven't done their howork. i can say something.
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to fl her up believe me. i've bn in the news ss long enough to know that thost how these statements get t portance.. ora of historical analysis. juike at oth fooli mighsell imay and go ay. u should be nothinon i more imptanturinthis particar period many of the pattns that alys made us money, they mean nothing too. i lived through cycles.. every time the consumer ent like mad. it paid off. you boug eve retailer.ke you did terrific. consumers took to the mal none of that happeneis year. nothing. the ending is re dif. thspending on amazon is nk. e spinning f tse that go out versus those that stayed in. the rsonal spending s unchged but we had a hug snowstorm. w do we know we didn't g spending from ads on facebk
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we foolishlyryo relate the two. ong about facebookhat contues cli up another 2.5% to all time high of 5 or of alabet thasoared in aftehours trading after reporting sharply better t market cap is now eclipsing apple'twpositions for tion owners trust.com. fuher in t last five days we the cle in demand. in fact, demand for oil is incrsed. some cases increased aair r amount because ore driving. particully in thited states. some of the companies even detaed how crude coming tohe maet for deep water products. and they are now proviuch h more oil than anyone thought. e impact on this company. right now, do you know what we're looking barely down in production year over year. no wonder crudn't done goi down. i meanhonestly, there's some projectis that we may oduce
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w about this o when the chinesetock market last year oumarket did nothg.'sen didn'even pay attenono it. no corlation. were lock step downr re conclude they were wrong to go down when we went down or wh we wt down they went dn or whatever. or you can embrace the truth which is there w no national pattern that logic and proportion have fall slopp dead we lookt which bank stocks were going andhich weren't. we could buy with lnsnd deposit owth and then just wait for the teover bids. th were clock work. i wrote whole bo about it. now, meaningless. these days they trade on nothini but the fed. if the fed isn't going to tighten they aren'worth anything. there'
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concentration in banking because theyerged duri t finanal crisis. thbanks that do t ds don't get higher. that's another pattern.for evy time t stoblg goes upnd tn suddly six months o evy me a c g a bid it's ge down. it's a curse tmake a bid and. even in some cases to get a bid. it's a reliablpattern at ceased tbe incredibly reliable pattern. wh do you do in these cases? whato yodo when the patterns aren't working? i think i thinit's simple. you shouldn't invest in patterns in the first place. n't juo buy a foodtock. it might n move the stock as much as you expect. do you know how the mpany underneath the stock is perforng the nbers. if you don't what good is it if f the targets down. here's thbottom line. if you're going toick stoc, your job ito look at t company behind the stockou're buying in order aess the prospects and gure out whether the stock fullreflec those
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them and it's tohigh. that the opportunity. whether it be in a down january or a misable februy or election yeaorget ad a bowl or atever oth nonsensical pattercan be passed passed operceptive wisdom at's nei eirical o rcepve a certaly not wise. eric in california. >> booyah. >> byah. byah. >> i was going to ask you abt
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ng-tm investment into kinder morg. gradfrom credit suisse don't esn't seem sbeatp byhe >> i d >> i don't like it. i'm m not recommding a fosl fuelcknow. you get a lot at the college level. that's the beginning of a definitive me and kind morgan when they made that go from the c cp. there was a huge t game you paid and now
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met all. so let's just say . no how brooke in oklahomaooke. >> hey, >>ey, mr. cramer, w e you doing? >> i'm doi well. w out you? >> i'm a huge fan of the show. thank yofotaking mca. >> thank you. >> what isour opinion on the carl icahn xerox deal and do you think that's worth earning. >> i think you own a stock because the fuentals are good and theompa is growing ani don't think xex has neither. it's not what you want to own. i know it's like forest labs but he has freeport.
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looked you dn't want to be in those. let's do our own work, please. don't want to invest i tterns. your job is to look at the underlying companies ogive it to an inx fund. i'm here to lp "mad money" tonight the pre of crude anthe stock market are nked as of late but what wou happen if the bond were broken? i' reveal. then that coach purse macost a pretty penny but cld an investment in the brand pay u ck with interest? i'm eyei the compa after earnings and talabout a wer move have the ceo afteroday's acquisition. so whyon't y stickith crer. >> don miss secondf mad money. llow @jim cramer on twitter. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-3-cnbc.
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madmon.cnbc.com. check this out, o. what's that, broim? i switched to geico and got more. more savings on car insurance? yeah broessor, and mor likeenters insurance. more ways to save. nice, bro-tato chip. that's not all, bro-tein sha. geichas motoycleand rv insurance, too. oh, that a l more. oh yeah, i'm all about mo, teddy osevelt.
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it sms to be joid at the hip with the p ooil. whener o went down t averages averages get crushed like we saw alday today until the closing bell that locks thatecline and is lunacy as i sd repeatedly because the va majority actually benefit from crude being cheaper. we know that oil is a hugeost. a tax ifou will foconsumers and businesseslike you wou assume ia raonal mket most stocksould dfine. instead montafter month afr month we watched as the oil fures head our stock market by the nose. of course crazy town has its own logiand weak demand for oil is a sign that we're headed io cession.but as i t but as i told you before t collapcrude isllut a supply glut. very little to do wi dand it became clear that the oil futures and the stock market
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separately basedn their n fundentals and today decoupled further. the averages managed to remount a late aernoon come back. it's the it's the most visible sign to date that crazyown's days mig be numbered. which whye'reoingff the charts w charts wa brillian techcian, commodities expert and co-fnder as wells being my colleague at al money.com to get ase of what might happenf e linkage between the e crude andhe stock marketinally snaps: fit look at the daily chart showing the s&p 500 in blue. th has typically been in the high 90s for those of you that may ha slept through statistics a correlation of ro means no relationship
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in lmens term p 500 anwest texas crude os in the same directio95% of a time. that's about as close as you can t in the real world. t on is this hostage to oil it is usedo develop th stockhm syndrome. dot get to do much oa ri shot in a business show. wever there's no way corration thistrong ca st. it's clear that the linke between the oil futures and 500 became ironclad.that's when peop started to panic about the financials of the oil coaniethemselves. worried about china and dema. if you zoom ouwith the wkly chart and look back overhe past 180 trading ds though the correlatioefficient dropped drically. it wasn't totally in control like we have seen the last f weeks. in aor in a normal healthy maet ts number would typically be around 30% buof coue normal and
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never use to describe the market right w. remember last week we finall saw so signs that the oil future a the stock market are capable inrading in differen corrections anwe g that follow utoy. the the crude and the s&p 500 ll continue to decouple. once there's a break out of crazy town we uld see a bottom in bh oiand stocks as traders feel the tail is finally not wagging the dog. ke a gandeat this long-term monthly chart of west texa intermediate crude it wiltake time tot itself out. e rn below it's recent lows there's nothinstandingn the way of brutalecline t18. that's not what she excts to haen. she believes the $26 floor will hold go all the way ba to 2004. soou see the synergy? still the $26 lows are likely to be retested anshe does expect the s&p 50to go back tcrazy town and tra lower lock ep
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ago. too many art peopleed and iled to make that kind of call. hover she does believe that prices this low are sily unsustaible in the longer run. if you look at the relationship stif strength inx here's t rsi that's an important momentum indicator and the williams percentage r oscillator and gets ovbought or overso. you can see that oil hasn't been thversol decad see lookt it. these are for longer than ey did in 2008. garner says they have a way. they're dermined to keep the price low. althgh who knows when that will happen. >> mid t>> m to high 50s. >> it's going to finish the
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end of the yr. check ou eck out this monthly chart of the s&p 500. despitthe ally rough start to the year and we know that's been ter been terrible, hideo volatility toogarn looks at the chart and sayshe sees a market that's nothing more and nothing less than neral.d may not be goot not bad as the doom and gloomers would have y bieve. it becom 's bece emotionaand thou we finally got a nice rally e thinks we neo prepare for one more one moreift fore we can get comforta comfortae again. ter today's not so good difficult action. based on thichart the pu
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standard. can't ru can't rule out a plunge down to 17. ov0% from here. something we haven done until 2011. it's the healthiest move the pe out the weak hands and give buyers beautif entry points. on the flip side she says only a fresh brout above would signal a continuation of the oil bull market while garner believese will get there eventually her prediction is we'll go lower first before go higr again. here's the btom line ile it's too early to try to ll a bottoin the oil a stock market in thcharts ty suggt that the oil futures and the p 50might nally be
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linkage and boy that was on its own be a own be maj positive. exactlas we saw in the afternoon today's session. much more "madoney" ahea after it's latest earnings does coh ve a turn around in the bag? i'm crunching the numbers. and doest ha yr pipeline in profit? i like ts one. let's fi outbouthis power surge aftethe latest acisitn and did janet yellen and e rest of the fe i he a message for you. you're motte going to want to
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we b we bh know this market can be far from encouraging but there are somendividual stocks out there that areivinyou a terrific performance.
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hunt tm do. for example ok at this incredibleesurgee in coach. the handg maker that reported a so-so quarter lasthursday d then s it's ock soar nearly0% in a single session. in fact, in less than a we since that quarter coach has now roeted more than 20% higher which is absotely amazing when you consider this company has struggled for years to get it's act togeer. we know coach has been a total dog foyears. mpany sily hasn't been ae to put tether y kind of sustainable growth. now, thoug the market seems to beeve thatoach imaking come back. itecame loved again practicay overnight. the turn arod re is r real. even tho even though this hdbag stuff has become toughoach fly go it's grve back. wh mak them say th. at first glance h's latest quarter may not have been all that impressive. on slightly weer than excted revenue 4% declinef same store sales but wh you dig dpe unr the hood it's starting to be a lot morencoagg. after two years ofeclining
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posive revenue growth this quter up 4% thanks in part to the recent very smart acquisit acquisition. it raises fu year guidance. that was huge. th hasn't happedages. thd coach has been solwith negative se store sales in north america for years. and 19% decline the quarter before that. and this was the kind of the bottom. that's whait lks like en the stock is going higher. management predictg that the sametore sales wl contue to improve over the course of the year. thanks to thanks to new products, store remodelling and marketing ittives and four the company deliverestrong results in china. evyone is so wored about ina. these guys were up 5% in
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were struggling and that mattersbyhe way because it's not a small market. 15% of their total shares from china. how onarth did coach mage to mot ch a dramatitu arou after spending the la years in perg toir. the actual turn around the companhas been a multiyear multiprong process. fr the moment victor luis took overs cein january 2014 he hithe oundunning. outlining the branand the business. promns disuntinghat is eatg into it's margin he closed stores amaller markets in oer to focus on theajor 12 mor nor american maets. he made mar ovements and rolled o a remodelng initiave. he already remodelled 250 stores. mpany anneto rovate 40%
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the fial yr. now we h now we have se before how a remodellg progracan bolster a company's same store sales but yond everying elsee was company' company's prodli. back in 2013 he brought in a new crea director. higoal, restoring coacs identitynd shedding the image of luxury brd for the masses. theyedesigd the tirety of the product line and it's resinating witconsums. goo the stores i he. you haven't been there in ng timyou mighnot recogn regnize them. plus when it comes to china coach is in the t spot. producing double digit growth in the chinese mainland morthan offsting the tourism based clines coach is a loweice point an other luxury brands
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and thcompany hasn't been hit as hard. if you're going to bribe an official you do it and breaking the lais wng anywhere pecily in the ople republichere it's very easy to get yourself executed if you break the law. i'm simply endorsing. now perhapthe bestove luis made sce takinover ts is acquisitio that's the pritelyeld xury shoemaker that coach snapped up for $574 milon. it used to be worth less. anit's over 50/50 boots. it managed toutperform durg the holidays. coach is now forecasting 340 milln in sal for the label this y thats up 13% versus the 12 nths beforthe acquisition. double digit and it was the stngth of thisew auisition
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look, this turnauninfancy just beginning. as of it75thnniversary ts ar, coach plans to launch a marketing campaignnd rchand merchandise initiative. my dghter has one of those. from the 50s she loves it. they're also using social dia to tget millens d a demographic that's been ugh coacis killing it in europe and china. some of the other brands are struggling overseapaularly in this accessy category. michael kors thiss the real bright spot but 's clear evince at the ack and that's why the stock can continue to go higher ill. pl at these levels coach is
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watch that 10 year it's ing lower. thks to the vision of the fabuus ceo coach has finally begun to turitself around and the numbers e starting to reflect this new and very much imoved story. the company still has long way to go bui think it's heading in the right dection and i wod put coach on my shopng list the next me that the market decides to throw sale. les go to scott in michigan. scot >> booya >> booyah om the great lake stak >> oh, man how can i help. >> silver is affordable for almost every investor. is this still a valid strategy to own precious medals and n et or do ty have two much do side from the average investor. it's high. is is a really tou qstion. we have the doctor on and he impresses me as a no nsense
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e one to go to. let's go to john in colo, please, john >>ooyah, tnks for havi me. >> booyah. ounger investor i'm looking for a good dividend in the market. with the strong doar and chper dpas priceallowing americans to travel a little bit more more. >> it's a ve sick group right now. all ofhem. i want you to stay away. i'm sending you epr or i'll send you to n. okay. epr properties has bn on fire since we profiled it and yet it still yields 6 or you can to n.
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cedar fair whi also yields six. the armuch safer. all right. coacis othe ad to becoming wall street eik again. it's still got a long way go. we hava loon "mad y" today. is it ti to consider a utility play? i'll check in with ceo and then the iowa caucus is finally here. we don't talk politics but im talking about how outcome can effect your poetbook and your
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>>t al >> it almost totally dried up since the beginning of 2016. then we got two major deals. and dominon resources. for those that don'tnow it's e t largest g and elecic utilities in the country.
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distributi. ey're they'racquiring a utah based distribution, pipeli storage and gas supplyompany. this could be the first many compies inhe energy spac as deep pocketed outfits like dominion pick off the highest quality diressed in the group. i ink thstoccould be iniguing. it'sup it's supposed to be immediately added to t company earngs. let's look with tom ferro find out more about this deal and his company's prospects. welce ck to "m money". >>ood evenin jim. odo wh you. >> well, i have to tell you, none of the alyst notes in t conference call didn't give you
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2007 you sold $11 billion worth of assets at whalookto be the top. now you're coming in and buying up aompany that -- whose stock is down anout but the company isn't down and out. ju talabout e reshuffling that youave done and how you sold high and now i ink you're buying low. >> we sold theover 2007 and 2008. the companis a very well run company. sits iheadquater in utah. it is a natural s infrastructure company. it's not a cssic e and p production compa like the asse wsold. it's pipelines, local gas distribution and a rate bad gas supply for the benefit of the customers. very good compan >> there's
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small that you're going toeep but what i found interesting a dinot know is that until you told us on the conference call this is the hub for californ fothe most part. that's a big market for you now. >> yes, our pipene assets in the st are the hub of th mid-atlantic. l the gas pilines th come fr east to west and south to north and from canaddown all touch our pipelineity. and the same is true for qstar in t norern pa of e westn states all the gas runsough that company. a great percentage of the s runs through that coany and we're looking toelp expand. >> is this also recognizing that coal will have ls strengthn this country? because iteems like these co based places th have to goatural gas because of the epa. >> uh and oming both about 80% of their electricity is produced b produced by coal. cln coal but stillave carbon emissions and the's going
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basically i know th thing couldn'te downhere with companies thatre pure oil and gas companies and that how you billion as opposed to say 8 billion maybe ree years ago. >> well, if you track the stock, it traded do a natural gas prices srted down and donion ovall it's a rate based gas which we're not enough time to talk about that but it's very different from aommodity gas company. >>t's gotten very tough overseas. do we need to worried about yourigo-point. or a you just prty sure that the coracts are goodnd 's just a reallyood investment? >>t's a grt instment. it's on time and on dget. wl beding natur gas
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long-term coracts r 20 years with highly cred worth paners in japan and india. not concerned about the contcts at all. commodprice keno erence. >>here was the most referenc article in the new york times about how some of the big tech companies are tting under server is ts something you veo worry abt or more the merrie >> think is more t merrier. have -- we brght on like we have more data centers than anywhere ithunited stas and we expect nine more is year. partly because whave lotf fiber in t stateut a lot of it has to do with our locost elecicity and very reliabl elecicity. which is the highest marginal st and we recent entered into a contact with amaz to bud a solar farm to get the electricity from solararms to their data center in vginia. wee oking at renewle resources as well to provide that power.
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smart acquisition. good to good to see you,ir. >> good toee you. >> that's the president d ceo of dominion resources. these ut these utilities have bn red hot. it's the one to buy. "mad money" is back after the brea werwth souern parall we had traved for over 850 miles. my men dn nearly madrom arndrostbite todaweakhistory. >>bienvedos! welcome to the south pole! if you're dora the explorer, you explore. 's what u do >>whatooyou lon
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fteen percor more on car insurance, you switchico. 's what you do. you it, yay! take one of those pillows and a big smell. they smell really fresh what if we told you we washed these sheets 7 days ago. really? no way downy? wny fabric conditioner ve us a week, and we'll ch ur bed fever. want me eses d w wny frh prect? cougif you can hear me dot even t about it. i okucexm for my phley cough. yeah...but what about mike it works on his cough too. coh! workshicough to mucinex rieves wet any coughs for 12 hours.
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,,,,,,,, >> it is t >> iis time it itime for the sound and en t lightning round over. are you ready? it'sime for e litn round. we'll start with neal in ey, jim. c reporting ter this month. sell or hold. >> i have to tell u my pofolio managed search director, ve to tellou, i think he's making a compelling case that at these levels you might want tbuy it. he's aresearch dector. it's from my tst. i'm going to say yes. >> cou >> could y tell buyll or hold on international paper. >> ts is a very big yield. remember mdaused to sell for them. ve big yield. let's see whatt is now and 's at but t estimat are
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waitntil we see the whites o their eyes their eyes. how out we go to new york. >> harmon ternational you had th at your 100 best. he w a poorly receed qrter that wasn't so bad. so i thihat harmon is okay he. let's go to ll in florida. >>ey, this is bi fm flida. i'm intested in what your opinion . >> this stock is -- this is a hotel chain that's been beaten and beatennd beaten and you know wt, i think it's overdone. , i wanto go thether w. i think it's a buy here. toinew jersey.
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>> i juswanto say thank you for all you do to sharyour knowledge with us and i like to get your take on pdential. >> the stock has been in a wor of pn and i'm concerned that i don't wanto get into a house of pain. metlife is doing stuff i think is far more gresve to able to help the sharolders. let's go to miken nnsylvania. mike. mquestion is planet fitness,uy, hold or sell. >> from my relatives up in scranto, nto, pa, planefitness is doing well but i'm not going to go tre. i lost too much money recommending over the last decade. let's go to mo in florida. mo. >> yh, h crame i love youou'rthe best. >> there you go. >> i'm cling about ept. >> i talked about how my charitable trust owns le and facebook. need keey to come on. this h been a very bad stock. we havlost money on it. got to o that.
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look > look i know we're supposed toave an independent central bank in this cntry.it's supposed to babove politics. the iowa ccus where two candides decide the traditional sptrum of american politics are poised to do well on both parties. we need to acknowled two ultra importt things. first the feally does matter
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licy or the markets areven or the economy or stocks. in terms of our nation potical stability and second fe the fed setoe ing a suboptimal job consider if thfed continues raising their inst rates fourimes this year then it's very likelat the unid states will gonto recession. come on. at a time when alobal econic sur power ke china is experiencing a massive decerationn grow and eve other ntral bank oearth is trying to ease and ease agessiveheed lead by janet yellen keeps talking about tighteni tighteng. our policy makers are totally out of sync with the rest of the rld and that has serious consequences with any american company that does busine overseas a thenomited the strong dollars and at a huge disadvantage to foreign competitors that sell their rchandise in cheap euros or
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how people get fired this coury, because of that. ers get hurt. d a bi and a big reason for the super freaking strong dollar is that the fed stl ses committed raising interest rat. perhaps rapidly when theest of the world is tened. en the strongestcks in theet a market are what i callhe recession stocks, utilits, beer mers, gamble soup, rmel and smuckers, like it or not the stock market is very serioly forecasting a recessio to be fair to janet llen, she's a smart person. i have to belie if the gba economy esn'prove dratical by the march fed meeting she probablyon't make the mistake pproving anoer ra hike but i if theed
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still flubhe stement. it sounded like a temporary reprieve frothe inevitable. i fear the fed will gi us the imprsion that why it's too risky to tigen for the moment. and akss around e globe. d shou fed should be trying to fire out a way to revse t rate hike. maybe gog back to a quantitive ease again. i wouldn't md qe-4. i hate inflation amuch as the rest guy. and me and come on air and talkbout this stu this sff and maybee shou
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nail. anto a and to anyone who inks rates need to go higher here, maybe because ofhe strong job market orising ge c i pase point out th if we're seeing wage inflation at all in the united states it'secse states and municalits e raisg the minimum wage all overhe country. that's articial annot organic. it's beyond that. it not something the fed c contro if anything the fact thaso ny people care n aut the minimum wage for t fst time in daduggestthat way moreeople are working in minimum wa jobs. if that happs you better believe morextme populous candides like donald trump on the righ bernie ers on the left, neither what i wl ca fans of the fed will start to get re traction than the have. i'm not a political commtator. i don't care abouthistuff but i do care about the wo peon. we know political uncertainty hurts the stock market and we
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e runng against wall strt and frankly real don't think anyone at the federal reserve wi be too happy. and that's why'm bging janet yellen andveryone else ithat deral market committee to art pa theate hike. the fes b is t important to sit theren auto pilot and the americanorkeis t individuossqueezed by your very real actions and guess what, that is who iseadyo vote foromeo who would throw all of you out and replace y with a very differt reme. e im sure wouldn't exactly be to your liking. stick wi cramer. (cl phonrings)where are you? wellhe squrels are back in the attic. mom? your dad w't call an extermator. can i ca y back, mom? ays it'sersonal this time... if you're mo u call at the worst ti. it's what yodo. if you want to sav fifteen percent orore on car insurance, you switch to geico. it what you do. ere are you? it's verloud there. are u taking a zumba class? there's a more eoyableay to get your fiber.y phillips' fiber good gummies pl energy support. it a new fiber sementhat helps support regurity and incles b vitams to help convt food to engy. mmm, these aood! nice wk, phillips! the sty side of fiber, from phillips'.
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th's fun. iteady! noait timethis is great. it's vsoft. can keep it?(laughs) ale care of de...
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yb > maybe a significant day toy becae oil was do $2 and guess what the stock market rallied into the close. this is the second time we had major decline oil. e s&p has been ready to rally and we can be out of crazy town. after the close, alphabet, we ed to callt gole reported an amazing nber. noliacebook. alphabet is larger than apple and maet cap. it makes sense to me. a lot of what they're doing is because of cost control. the cf remarkable job and ve got to tell you it's why we are going to s francco. it's where the excing companies ar that'sight. come fm san francisco. thalstarine-up we have is noto be believ and ian't wait to e you there. there's alys a bull rket somewhere. i promise to t to find it for
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torrow. it's esday, february send and coming upn "early
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a dead heat wit bnie sanders, hillary cnltton is named the parent winner in the wa caucus caucuses. "early today" starts right now. andood morning everyone. than for being with us. i'm shannon mulaire. iowa voteers have spoken, ted uz is th wner of theowa cauc wbcs hasam hiy cnton wf thedecrats. in aace so close that a three caucus site clinton won b an actual coin toss. afr the results were at a stalemate they flipp a coin to decide who to support. rytere on the republican si, donald trump finished sondbend uz followed closely by mco
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