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tv   Mad Money  NBC  November 11, 2016 3:00am-4:01am CST

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my mission is simple, to make you some money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. [ applause ] hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. you know i say that at the top of every show, and i usually
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but the ones i have here today are west point cadets and members of the reserve and veterans of the army, navy, and air force and their families. so i'm feeling humbled, and i'm filled with pride tonight. the night before veterans day. [ applause ] thank you. okay. let's face it. in the last 48 hours, the world, a fiery candidate who seemed hell bent on putting his opponent in prison now graciously accepts her concession speech. a republican nominee who at one time questioned the bona fides of our current occupant of the white house has by all accounts a terrific meeting with that same sitting president. then a successful candidate who has turned his party asunder makes peace with the leader of the gop in the house and embraces him.
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and isn't it the narrative of the stock market itself with the dow and the s&p 500 visiting all time highs today? dow gaining 218 points. s&p climbing 0.20%. even as the nasdaq declined 0.81%. after flying high for many years, while the economies the world over were laid low. it's as if the squinty, flinty pessimists on wall street suddenly turned into cockeyed optimists who believe that things have really changed. as though the meanest election in modern history has suddenly embraced the land of lincoln with charity toward all and malice toward none. tell me this isn't like when george bailey wakes up in the middle of that nightmare in "it's a wonderful life" and he finds out there's innate goodness when men and women come together. it sure feels like that to me except this is reality, not a
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maybe it's because i'm imbued with the strength and power of some of the greatest people our country has to offer, a group of 40 cadets from west point as well as veterans and reserve personnel that i too feel my saturnine skepticism melting. would you be any different surrounded by these wonderful young people who are committing their lives to serving our country in the most honorable way possible? yeah, i bet you'd feel exactly the same way i do. ys home, but i turn to you now in the audience that represent the millions of men and women and their families who have joined the armed forces. and i say, thank you. we civilians hope we never let you down. we need to serve you whether it means hiring you after you've completed your duties or simply acknowledging those in uniform with a smile and a, "thanks so
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army. he served in the pacific with the six, saw too much action frankly, helped occupy kyoto. got to go back to college on the g.i. bill and get a job and raise a family. we owe you jobs for your service so you could do the same thing, which is why we're saluting you tonight in showing appreciation to two chief executives, alex gorsky, the west point alumnus turned army ranger, turned ceo of johnson & johnson, and howard schultz of starbucks. both of whom have shown an admirable commitment to hiring veterans. but at the same time as we offer thanks, i have to put what the heck is happening in the stock market in perspective for you and for everyone at home. why? because underneath this market, underneath this market, we have got a wholesale switch happening. the biggest money managers in the world are speaking in unison and what they're doing right or wrong -- right or wrong, that's important -- needs to be put into plain english. these fund managers are throwing
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good, and they're forgetting the idea that washington is anti-business and can only do harm. come on, that's been the rap, right? instead they're basking in the idea that the government could be involved in creating a bigger pie for all to eat, even if that seems a little too fanciful, a little too like george bailey. fictional character. to be true. nevertheless it's become the new conventional wisdom on wall street. i'm not saying it's right. i'm saying it'ha you see, our stock market has become this place where people just accepted the tenor of the times, reflecting a low-growth, overstretched, beleaguered world where the next meal could be hard to come by. and perhaps because of the surprise factor, perhaps because trump has pledged to take a howitzer to regulation and taxes, we have a rally in the kinds of stocks that the world had forgotten about while big money managers sell the stocks that work when the economy is
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things -- and i mean tangible things, not software, not websites, not search -- that make up the trump rally. same goes for the stocks of the companies that cater to people who feel optimistic enough to go out to eat and shop. witness the incredible rallies in kohl's and macy's this morning and the monster good number tonight from cramer fave nordstrom. instead of sitting at home watching political mudslinging or playing video games, although it reported this evening, people are shopping. they're going out. that's what we're hearing. macy's told me that today. chipotle said it yesterday. it's the companies that have been mired in regulation, the banks, that are leading the charge to all-time highs. a group that when it gets going has always been a remarkable general for others to follow. it's going because people feel that the regulations will be torn asunder, the ones that kept
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now, let me just say that i think this rally could be, after today, getting out of hand. there's no way that the velocity of these moves, both up and down, can last beyond a few days past this election. no, it's super natural. while the baton has indeed been passed, making the financials and the metal benders this market's new leaders, i think the better bargain after tonight might lie in today's trash bin. if only because the tech stocks and soft goods plays and bond market equivalent stocks seem to have fallen too far too fast for my taste. soon have been spoiled, but it might be time to spare the rod. still when you get these kinds of fulcrum changes, and we got a similar one right at the conclusion of the first gulf war, they tend to have staying power. that one lasted for three months. people thought it would last for three days. here's my bottom line. we salute those who serve, and we praise the healers and those who bury the hatchet. and we marvel that maybe, just
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the air. and i don't just mean that army could beat navy this year. [ applause ] or take down the fighting irish this weekend either. [ applause ] i mean that the people that are putting money to work in this market are betting that our country is going to grow at a much faster pace. will they be right? way too soon to tell. i think it's possible, but i hate to be a little too hopeful. nevertheless, we need to accept that for a moment, cynicism, it's been knocked for a loop here, and cautious optimism has descended upon wall street in a way i haven't seen since ronald reagan won the white house 36 years ago. let's take questions. sir? >> good evening, sir. my name is t.j. min, and i'd like to extend you a warm greeting from my hometown in carthage, illinois. >> thank you so much, sir. great to have you on the show. >> as i watched election results, i saw volatility and the futures just drop. and then i went to bed thinking that the next day was going to
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i woke up pleasantly surprised that futures were coming back, and we went up. and i'm wondering between now and the inauguration, what do you think volatility will do? and i own a stock of freeport-mcmoran. that stock has been on a tear. >> sir, you own the best acting stock since the election. that's a copper company and copper is breaking out. i think you raised a good question, which is, is volatility here to stay? i think with every important appointment we get or rumor of appointment for treasury secretary, for important positions in the cabinet, we are going to have crazy trading. and i say that because right now we've moved so much so fast that it's too easy to repeal. i urge people to think longer term. but freeport, i've got to tell you, that balance sheet's been fixed. if copper stays this high, it's worth owning. thank you. yes? >> sir, scott buchanan from new jersey. my question is in regards to
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being an income stock and if so, could it now be considered a growth stock? >> that's a great question. kinder morgan is actually in the sweet spot right now. you know i wasn't happy when they cut the dividend. i've got to tell you what went wrong here is that they expanded too quickly, and they took down too much debt. but here's what matters. we do not have enough pipeline in this country. we need more pipeline. and president-elect trump has pledged to be very positive and industry. therefore kmi, it's worth buying right here. that is a change of my mind because i've been favorable to the pipelines but not that one. it's a buy. all right. optimism is ruling the day on wall street for a change, and from the view i have right now, you know what? it's fine. on a very special "mad money, invest in america: salute to the troops," i'm sitting down with the johnson & johnson ceo and west point graduate alex gorsky to hear about the future of health care. plus starbucks ceo howard
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efforts to assist veterans. but first we went from down 800 points tuesday night to all-time highs today. how did so many miss this move? and how do you make sure your positioned the right way going forward? i'll tell you, so stay with cramer. [ applause ] >> announcer: don't miss a secof follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something?
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hi, i'm from carmel, indiana. >> and i'm from westminster, colorado. we're here at the united states air force academy. >> we'd like to say happy holidays from us at the academy and thank you to all those who have served before us. happy veterans day. [ applause ] >> every year we celebrate veterans day on "mad money" by highlighting the companies that
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country's brave veterans. that's why tonight i want to welcome one veteran in particular, alex gorsky. he's the ceo of the world's largest health care company, johnson & johnson. he's a retired army captain and graduate of west point, and his company does an amazing amount to help our troops, supporting nonprofits like american corporate partners, which helps vets with their careers, and the travis manion foundation, which provides assistance to veterans and the families of the fallen. plus j&j is the official health care partner of the uso. so let's check in with alex gorsky, the terrific chairman hear more about the amazing work he's doing for his company and our veteran community. mr. gorsky, welcome back to "mad money." good to see you. have a seat. >> good to see you. >> your company is deeply committed and hires veterans throughout the organization. you've got a vast, vast company. where have veterans helped you? >> well, jim, they've helped us in so many ways. you know, we look at the employees, for example, at johnson & johnson.
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they're veterans like marine allison, who's right out in the audience today. i'd like to recognize in the very first class of women cadets, 1980, served her country, then got out and went into the fbi, worked her way up. now she runs cybersecurity for johnson & johnson. so it's a great example -- [ applause ] so whether you look at a woman like her running our cybersecurity, the head of our they touch all aspects of our business ask we couldn't do what we do without the great leadership, the great work of veterans. >> how do you find the veterans and how do they find you? >> it works both ways. one is you've got to be constantly on the hunt. the thing is right now there's several million veterans who are either just getting out or have just gotten out of the service. they've got great leadership skills, great problem solving skills. we make it a priority in our
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your people are trained and developed to make sure they understand the backgrounds they've had in the military. sometimes it just gets lost in translation. making sure you can translate what they did in the military to what they could actually do in the business situation. and then it's about making sure that you have a really welcoming environment. so once they get into the company, that they can be successful. they get mentored. they got a lot of coaching. then we find they just take off. they really end up doing some great things. >> worldwide organization. worldwide organization, the armed forces. dovetails well? it starts really with character, with things like integrity, the things they learn at the military academy, duty, honor, country, the honor code. it's hard work. it's problem solving, critical thinking. it's leadership. all those things, that's what we need more of in business as you know. >> now, i don't want to single out -- you do triumph games, but the travis manion foundation you've introduced me to. >> thank you very much. the travis manion foundation is
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it started with an acquaintance we had, a fellow person at johnson & johnson, colonel tom manion and his wife, janet, and their son, lieutenant travis manion, a graduate of the united states naval academy ended up being tragically killed in iraq. when travis came back, janet and tom were absolutely committed to make sure that we could use this terrible event as a way to inspire others. so what was created was the travis manion foundation and it's a foundation that my wife in. and travis's sister is now in a leadership role. it helps families, service members get their feet back on the ground. it's got a wonderful program called character does matter where we coach people to go out to high schools to make sure that people don't forget the incredible commitment and sacrifice that so many of these veterans have put on the line. and it's been a tremendous success, and it's a great way to keep the spirit of travis manion alive. >> you put out an announcement
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than an a coin. e pluribus unum. i want you to talk about it because i like what you had to say. >> i felt there's so many going on in the world, in our country the past few days. i think being here today right before veterans day, it's a great example of the importance of how we all come together as a country. and all the common values that we share, what we stand for. and making sure that we think of -- when we come together, we're much stronger together than we are as one. alive, and i wanted to keep that spirit alive at our company at johnson & johnson. but i think it's an important message for everyone in the united states. >> i want to talk about the role of johnson & johnson. i'm from philadelphia as you know. >> go, bucks county. >> live in new jersey, always felt that johnson & johnson, force of good, hires lots of people, does great things around the world, invents, discovers things. sometimes pharma get vilified.
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so what's president-elect trump. what do you have to say to the politicians about the good side of pharma? >> look, we understand it's been a very political season. there's been a lot going on. health care, you know, is and it should be an important part of the debate. when you think about it, what's more important? what is more personal than good health care? at some point in our lives, it's going to touch all of us. it's 18% of our gdp. and regardless of which side of the political spectrum you fall on, all of us are goinav to work together in the coming years to come up with better solutions around health care. we talk about pharmaceuticals. look, if we look back over the past 75 years, one of the reasons that life expectancy has increased so dramatically from the mid-50s to now your late 70s is because we can stop infection. we can stop so many diseases. cardiovascular disease, other areas. much of that is due to pharmaceuticals. so, look, it's our responsibility, it's our obligation to continue to
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we've got to find a secure for alzheimer's. we've got to find a cure for post-traumatic stress disorder, for traumatic brain injury. that's what really motivates our scientists and all of our employees every day is to bring great new treatments and therapies out there. frankly, we've also got to do a better job of explaining what we're doing. >> right. >> and we've got to behave responsibly as well. >> there were some bad actors out there. >> absolutely. >> in the few seconds remaining, you're an alumnus. what do ve at the academy? >> i could not be more proud of the men and women out there in the audience right now. they really represent so much of what is great about our country. thank you so much for your service. thank you so much for what you do each and every day. you've got an exciting future ahead. go, army. >> thank you to alex gorsky, chairman and ceo of johnson & johnson. "mad money" is back after the break. >> announcer: coming up, "mad
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a conversation with the politically outspoken starbucks ceo howard schultz. cramer and he talk about his mission to support veterans and whether a trump presidency could stall starbucks' growth in china. >> there are significant differences we have all over the world, language, politics, religion, culture, all of these things. but we all basically want the same thing. >> announcer: a very special "mad money" is coming right back. what? is he gone?? finally, i thought he'd never leave... tv character: why are you texting my man at 2 a.m.? no... if you want someone to leave you alone, you pretend like you're sleeping. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. tv character: taking selfies in the kitchen
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this is captain trina edwards. i am stationed in kuwait with the transportation brigade. i would like to say hello. happy holidays to my family in lakeland, florida. that's polk county. especially by daughter, ava, my mom angel, trilla and all of my family and friends. happy holidays.
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[ applause ] >> if you needed any more proof, the tremendous rally over the past two days is a textbook example of why no one ever made a dime by panicking. on election night, i heard some commentators tell you to sell everything. >> sell, sell, sell. >> heard it several times. i saw it on twitter repeatedly. these sell-everything calls started in earnest when it became pretty clear that some of hillary's firewall was being breached. boy, i hated that term. they continued in earnest as the s&p futures kept plummeting into the wee hours of wednesday morning. now, if you believe we were on the verge of some kind of financial collapse, i could see why you'd want to sell everything. but the truth is going into election night, we had one candidate who wants to cut taxes
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shrink the deficit. what's so shattering about that? what if one candidate wants to play hardball with trading partners, betting because of his negotiating skills he'll get the best of them, and the other wants to leave well enough alone? what if one candidate thinks there's too much regulation, red tape, and the other thinks there isn't enough regulation because the first candidate wants to protect capital and the second one wants to protect labor? big deal. that's what happens every four years. but we got off track this election. we had two candidates with two different philosophies, and we never gave the philosopha many people in this country can afford cars and clothes and household goods from places like target and walmart because mexican workers are paid about $3 an hour to make these goods, and they might as well be part of the u.s. because of nafta. if there were no nafta, there would be tariffs on these goods because it's a totally unlevel playing field, especially with the debasing of the peso. it might easily cost eight to ten times as much to make the same thing in the u.s. where sadly absenteeism runs high and labor-dictated work rules meant to give workers a decent life
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i don't think nafta would have passed if we knew the two nations were going to diverge so much with mexico's peso making labor cheaper and unfair, aided by state-provided health care and easier pollution laws than we have. wouldn't it be great if we'd had a debate about whether jobs in this country are being killed off by offshoring or if the real culprit is technology and all those apps on your cell phone? i think reasonable people could come down on both sides of these issues if they were explained but things got out of control. lo, "mad money" is that the rhetoric on both sides so exceeded the issues that people turned a so-called scary election into a scary market analysis, which caused them to sell the futures aggressively on tuesday while telling regular people to get the heck out of stocks. this is why we don't panic because if you listened to these people, if you focused on the shenanigans and not the substance, it kept you out of an amazing opportunity. here's my bottom line.
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little too much like yelling "fire" in a crowded theater when the pyrotechnics masked the simple fact that the stock market was going to be just fine either way and another great buying opportunity was missed because of the fear mongers unaware of the unrealities and, yes, the strengths of our political system. let's take questions. >> robert sprinter from charleston, south carolina. >> thank you. >> i have a quick question. four states on tuesday voted to raise their minimum wages. i was wondering how the stock market for businesses in those states such as dish network in colorado would be affected. >> it's interesting you say that becaues i always ask the ceos about how they feel about the minimum wage. for the most part, they're sanguine and say it's kind of built in. no one has said on-air that the minimum wage is an issue. sometimes regulation, absolutely. sometimes issues involving what i say is the difficulty of running a business because of regulation. but no one has actually fingered the minimum wage as a reason for a shortfall. it just hasn't factored in, but it's a good question. yes? >> cadet mark mcginnis from
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>> sir, you see the market went down on a crash for three days and it's now on an uprise of 200 points for the past two days. what do you foresee going into the future? >> i think a lot of this is market-senstivie. for instance, disney reports a quarter tonight. and it looks like espn is bad. then it turns out espn is good, so then disney goes down, then goes up. nordstrom, retail is weak yesterday, and then it flies up. what i'm saying is it's too minute to minute for my taste. got to sit back. got to figure out like i've been saying for disney, hey, how about the next 50 years, not the next 50 minutes? yes? hi. sterling willman from arizona. >> sir. >> with the results of the recent election, how will the likely repeal of obamacare affect health care stocks? >> okay. it's a varied thing. a lot of people feel the hospitals have been filled more because of the affordable care act. at the same time, a lot of people feel the health maintenance organizations have been punished, or particularly there's been a lot more scrutiny on the drug companies and that that's going to end and maybe make it more benign environment
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but it's the hospitals that have gone down too much. i think that they're buys, but it's an important issue. that's the group that's been hurt the most. it's a little overdone. but thank you so much. all right. the rhetoric of this campaign trotted out the policies behind each candidate. so the next time you hear someone shouting "sell everything," remember to take a closer look past the headlines. still more "mad money" ahead. my conversation with starbucks ceo howard schultz. plus is your next vacation about to get a whole lot more profitable? i got travel-related stock that could be ready to move. and these cadets are going to put me to the test in the lightning round! so stick with cramer. [ applause ] too. excuse me...coming through! ride the gel wave of comfort with dr. scholls massaging gel insoles. they're proven to give you comfort. which helps you feel more energized ...all day long.
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i wish the rest of the entire american population could see them in action, see their level of integrity. that started me thinking about what could i do. you know, te let's turn it back to what it's supposed to be. [ applause ] >> every now and then, it's worth remembering that some things are more valuable than money. something i only remember once or twice a year. but tonight's veterans day show is one of those moments. that's why i like to celebrate the companies doing the most to help our veterans, companies like starbucks, the global coffee and tea powerhouse which, among other things, is committed to hiring at least 10,000 vets by the end of 2018. plus starbucks has also partnered with a host of
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like team red white and blue, team rubicon, and the mission continues. on top of that, the company has rolled out dozens of military family stores that are operated primarily by veterans or the spouses of service members, and that also work with local organizations to provide services to veterans and their families. howard is too modest, so i'll say it myself. this man's family foundation has committed $30 million to help veterans manage the challenges of successfully transitioning into the civilian workforce. so let's take a closer look with howard schultz, chairman and ceo these efforts and get his take on the future of his company, the world, the election, whatever. welcome back to "mad money." thank you so much. >> thank you very much for that nice introduction. >> of course. now, howard, i've heard you talk about these fabulous men and women deserving of respect but also deserving of opportunity. >> yes. >> and you are giving both. >> well, i have to just tell you a quick story. that is secretary gates joined starbucks board about four years ago.
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educate our entire company that over a million extraordinary young men and women were coming home from afghanistan and iraq, and they were coming home without not only a parade, but an understanding of the american people because most americans did not have much skin in the game with regard to the war. so we really began to understand what could we do as a company. so we hired thousands of veterans and/or their spouses. i want to say something that's really important. their level of integrity, work ethic, leadership skills is beyond reproach but also, on a cultural basis, which is so important to a company, when starbucks people are working alongside a veteran, their level of pride and what the company stands for, and i think we've now opened up stores that are veteran-based. they have an apron that says they're a veteran, and i think what we've tried to do is raise the national awareness and discourse about what it is to
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extraordinary hbo starbucks special where 800,000 people came to the national mall, and all we tried to do once again was elevate the national conversation. what i would say is simply we should not be acknowledging veterans who have served the country only on veterans day. we should be doing it every single day. we owe them a great, great debt of gratitude. >> we owe them, and we are entitled or feel entitled, but not for anything that we necessarily do. >> exaig with somebody who has served, you realize there's no sense of entitlement whatsoever. i'll tell you one very brief story. we were in a focus group with veterans who were leaving the service. and i heard a young man say something i will never forget. he said he had more anxiety about going to a job interview than he had going back to afghanistan because he had no training, no resources, no tools.
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in and provide transitional training, transitional tools and give people the opportunity to enter the workforce in a way that is a smooth transition for them. >> you are talking about something that's really a partnership not just between the men and women in the armed services and business, but maybe a partnership that's with a nation. we're at a time where we just finished a very divisive election. when i hear what you're saying and your heartfelt mention both to the troops and to veterans, what i think is, is that you're business can help. and maybe business shouldn't be vilified because you're playing a role too. >> what i would say is that business today, for one reason or another, has gotten a bad rap. and there are bad actors. let's admit it. but business is not evil. >> right. >> we have an opportunity as a business and business leaders to contribute greatly to our society by hiring great young men and women, by creating
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we just opened a store in ferguson, missouri, after a year of what went on there. people said, ferguson, how could you possibly go there? that store is doing so well, and you should see the community. it's a beacon of hope. we can provide that kind of opportunity across the nation. >> so there are veterans watching the show right now. >> yes. >> we both want them to work at starbucks. so what do we do? how do we make that happen? tell them right now. >> yes. one thing we've learned is that what we need inside starbucks in the h.r. group is we need veterans recruiting veterans. >> okay. >> who understand their language, their challenges, their issues. so the people who are recruiting veterans at starbucks are people who have worn the cloth of the nation. but there are thousands of opportunities today to work in starbucks stores, to come in, to get trained, to work in our office, work on our management team, work on our supply chain. what we've learned is that the level of attrition rate among veterans is lower. the level of performance is higher. and these are great, great young
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>> so tell me where we are. it's a difficult moment in the country, and it's also, today, we've seen, and yesterday, a kind of magnanimous gesture of coming together. you are an optimist and also a skeptic. how does it make you feel right now? >> i think the country has gone through an incredible crucible, and i think we're all -- the fact that it's over, whether we like the result or not, i think clinton did a wonderful job of demonstrating real humility and recognizing that we need to support president-elect trump, and as a nation, we need to come together. so i am optimistic. but we have a lot of work to do. my concern right now is to ensure the fact that there is a lot less divisiveness and vitriolic behavior, and there's a level of sincerity and people coming together with compassion and empathy for everyone. >> you and i have spoken for a
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i have said to you at one time that perhaps whole conflicts could have been avoided had american business, through starbucks, had starbucks throughout the world. what is the feeling in vietnam, in china, within our own lives? >> i wish everyone could come with me on a trip. we just came back from china and japan, and see what's going on. i think the thing we've learns, the bottom line is there are significant differences that we language, politics, religion, culture, all of these things. but we all basically want the same thing, and it's universal. we want to be respected. we want to be dignified, and we want a better life for our children. and if a company, if you can reach out and demonstrate truth and authenticity and be value-spaced, you're going to be embraced all over the world. that's what happens. that is what happens to starbucks. >> you've exported a remarkable concept and you have done an amazing job for shareholders.
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troops our best export? >> i think there's no better export when you see a young man and woman in uniform representing the united states of america. and i've had the great privilege of going to -- i've said okinawa. i've been to kuwait. i've been to a number of places, and everyone i've ever met makes you proud to be an american. >> we're proud to have you on "mad money." thank you for everything that you're doing for service people, country. that's howard schultz, chairman and ceo of starbucks. "mad money" is back after the break. >> thanks, jim. >> thanks. i'm with the united states army reserve. i want to take this time to say thank you to all our veterans. your service and dedication is motivating me for the future. thank you again. why am i so devastatingly handsome, i'm in a fragrance...
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>> it is time! it is time for the lightning round! that's where i take your calls rapid fire. you tell me the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." hit me. >> hey, jim. i was wondering how does the at&t and time warner cable merger affect a stock like t-mobile? >> well, t-mobile is a creature of its own. john legere is money. buy t-mobile. yes? >> jim, andrew from california. booyah to you from the corps of cadets. >> right back. >> with the resignation of the ceo of weight watchers over a rough year, can we expect positive from them upcoming? >> don't buy. don't buy. don't buy. words speak louder than words.
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i'm grant from houston, texas. my question is i wanted to know is as electric cars become more popular, how do you think tesla is going to do in the next year? >> i think tesla is a cold stock. people who own the stock and own the car, they love each other. they can't sell. they're inseparable. if it comes to the financials, i can't justify owning it, though. yes? >> jesus cortez from dalton, georgia, the car capital of the world. given recent political tension on american car companies, what do you think the next year is going to look like for ford? >> i think ford isoi an okay year. i think they have operations that are far flung and they're not carrying their own weight. i do like mark fields, but that's a very challenged industry right now. yes, sir. >> hi, jim. nathan brooks from st. louis, missouri. how do you think the possible transition from coal to shale as an energy source will affect oil companies such as b.p.? >> well, b.p. doesn't have enough natural gas. i prefer if you're going to go that way, i would actually think about doing cabot, razor resources, or you know what? you can do a pipeline company. you can do an enterprise, or you can do, yes, i'm going to say
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transfer partners, which would also be very good, and williams. yes? >> hey, jim. marco from down south. with the new administration coming in, where do you foresee energy companies like clayton williams in 2017? >> you got to be careful. i don't want the smaller ones. i really want some heft. i want companies to have a lot more natural gas. let's stay away. let's stick with the ones with the good balance sheets. by the way, i have to admit these guys from chevron have really figured out a lot. yes? >> yes, sir. daniel from minnesota. what's your take on the eaton corporation? >> it wasn't that good a quarter. yet the stock went up anyway. that's because people love the cyclicals. yes? >> sir, ben from north carolina. is target a buy or pass? >> you know what, i'm going to take a pass on target because i think they're neither a walmart nor a dollar store. don't forget amazon. only the second straight day off a trump selloff, might be time. yes? >> hey, jim. peter from north jersey. i was considering working in the health care field. i see increasing infection rates among certain diseases. what do you think about novartis?
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able to make it as an infection play. merck is my favorite in terms of the overall kind of vaccination. they're the best. and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. thanks for the ride around norfolk! and i just wanted to say, geico is proud to have served the military for over 75 years! roger that. captain's waiting to give you a tour of the wisconsin now. could've parked a little bit closer... it's gonna be dark by the time i get there. geico. proudly serving the military for over 75 years. we're going to prove just how wet and sticky your current gel antiperspirant is. now we're going to show you how degree dry spray is different.
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hi. my name is private first class spencer hayward with the army reserves, and i want to say happy veterans day and thank you, mom, for 17 years of dedicated service. [ applause ] >> now that we at last have some closure on that whole election issue, i don't want to lose si that are being overlooked and what has become a headlong exodus from consumer product and tech equities towards cyclicals, retailers, banks of all sorts. i know we are celebrating the work of veterans here, but we would be off key if we didn't try to help you find ignored opportunities, ignored because of the endless focus on politics. two days ago priceline reported a terrific quarter. its stock soared higher. i think everyone is ignoring the other big online travel play, expedia.
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it deserves for its smaller businesses. this is a stock that fits in between the cracks of what's hated right now and what's liked in this new political world. a couple weeks ago, expedia reported a quarter that at first glance seemed like it wasn't anything to write home about with more or less in-line revenues and weaker than expected earnings. yet the stock rallied 4% the following day because when you took the time to look under the hood, a lot of good things are happening at this company. the problem is i don't think many of you had time to check under the hood because all that moment was who would win the election. so it's time to talk about this company. see, there's a lot to like with expedia. i want to make sure you understand what makes this story so strong because it's exactly the kind of stock that's worth owning in this very environment right now. first and foremost, it seems clear to me that expedia is finally starting to benefit from its purchase of a company that i liked very much before a takeover bid. it's called homeaway, the vacation rental company that management told us they were buying roughly a year ago for $3.9 billion.
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the darn thing is still in the red for the year in part because homeaway was only the latest in a string of expensive acquisitions including orbitz and travelocity. but i think this is beginning to bear fruit based on the most recent quarter. for those of you who don't remember, homeaway is the world leader in the fast-growing vacation rental space. owners and the property managers use it to connect with travelers from a wide variety of vacation homes. before the deal was announced, homeaway's once red-hot growth rate had startedce from a company that many of you know, airbnb. but from the get-go, expedia said they could get the business roaring again, shifting homeaway away from their complicated paid listing-based business to a more transaction-based model with plans to nearly triple its earnings before interest, taxes, depreciation, amortization through 2015 through 2018. in short, it was a force to be reckoned with before expedia's takeover.
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changes to stay relevant. changes that expedia wasted not time executing. right when the deal was announced, homeaway said it would implement a traveler booking fee, about 6% on average for most transactions, which would help to wring more money out of the business. they also planned to make all of homeaway's listings bookable online. yeah, i know. it wasn't really as technologically savvy as it should have been. now, at first the analysts were very enthusiastic about this deal. once it closed last december, there were plenty of concerns that expedia would have trouble integrating this acquisition. but in the three far a terrific job of laying those worries to rest. when expedia reported at the end of april, a strong top and bottom line beat, they announced some major changes at homeaway to move it away from an ad-based model -- that's not a good model right now -- to a transaction-based one that people really can build on. expedia also eliminated the complicated five-tiered subscription model for people who want to rent out their properties and replaced it with a single $349 a year
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ca bonli. as for the transaction fee they announced at the time of the acquisition, management said it was going very well. transaction booking growth up 170%. their overall commentary was incredibly optimistic. expedia reported again in late july, a bottom line beat with a small top line miss. once again, homeaway did very well, with its revenues up 33% year-over-year driven by stronger subscription and transactional revenue. plus management said their homeaway business should accelerate in the second half of the year, which brings me to the quarter expedia reported two weeks ago that no one cared ou like i mentioned earlier, the headline numbers were less than stellar, a 6-cent earnings missed off a $2.47 basis, only slightly better than expected revenue. but the homeaway business was en fuego, and that's why we liked it. standalone revenue for homeaway increased by a 61% year-over-year. that's accelerated revenue growth. management said the transaction revenue was very strong as they rolled out their booking fee worldwide. despite these terrific numbers, expedia told us homeaway is in the early innings of its
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plus analysts at pacific crest recently did some channel checks of the vacation rental plays and they found homeaway derives significantly more traffic than the other platforms. so if you've got a vacation home to rent, homeaway is a lot more attractive than the competition. expedia has pulled off a truly amazing transformation with this business and it's just not getting any credit for it. it's not just homeaway. back in 2012, expedia bought more than 61% of trivago, the german metasearch company that's similar to priceline's kayak. at the time, trivago was very big in europe, didn't have much of a following in america. after being under expedia's umbrella for a few years, it's now performing incredibly well. in the latest quarter, their revenue growth accelerated to a monster 57% clip. the business is seeing health growth in all of its major markets. that's after the previous quarter where expedia pointed out they've already grown trivago's revenue sixfold since taking it over. now, lately there's been a lot of chatter about a possible trivago ipo. i think that could help unlock a tremendous amount of value for expedia. put it all together, and i think expedia deserves to go higher,
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when you consider that competitor priceline is up 22% for the year while expedia stock has done next to nothing. let me give you the bottom line here. expedia has done some tremendous things with homeaway and trivago but i don't think it's getting nearly enough credit for the way it unlocked the true potential of these fast-growing businesses. that's why i think it's time for this stock to play catchup with priceline or at least catch up to the red hot airline stocks that are signaling a boost to worldwide travel. stick with cramer. >> hi. i'm seaman brown. i'm stationed here in spain. i'm from germantown, wisconsin. i just want to wish a happy veterans day to everybody back home, especially my grandpa. i love you. just checking my free credit score at credit karma. what the??? you're welcome. i just helped you dodge a bullet. but i was just checking my... shhh... don't you know that checking your credit score lowers it! just be cool. actually, checking your credit score with credit karma doesn't affect it at all. are you sure?
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i hope that after tonight's show you have no doubts that the promise of america is alive and well. take a moment tomorrow to remember the sacrifices of those who have served and are serving around the world. i like to say there's always
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money." i'm jim cramer. see you tomorrow! [ applause ] . protesters are out on the city streets for a second night voicing their president-elect. president-elect donald trump meets with president obama for the first time. >> mr. president, it was a great honor meeting you. i look forward to meeting with you many, many times in the future. >> leonard cohen, a giant in the poety center for the last half century has died. america is honoring its

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