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tv   Mad Money  CNBC  July 18, 2019 6:00pm-7:00pm EDT

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>> she will be a senior producer on another fine program. >> ditched us to stay with you it is an unfortunate -- >> we will sorely miss her. >> mel, i think gold market continues to go racing higher. >> see you bac out my mission is simple to make you 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 hey, i'm cramer. welcome to "mad money. welcome to cramerica i'm not here to make friends i'm trying to make you some money. my job isn't to entertain, but to teach contacts call me 1-800743-cnbc. i have a simple rule of thumb here at cramerica. always go for the easy money, not the hard money
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no matter how much you might be tempted otherwise, netflix today after that disappointing quarter. just became the hard money on a day where the averages seesawed in response to earnings, s&p gaining 3.6%, you need to understand how a stock can go from easy -- >> house of pain >> to hard >> the house of pain >> and pin action from that particular move. can rightly or wrongly impact a host of other names as portfolio managers try to wrestle with the consistent company that is suddenly become erratic. and that, ladies and gentlemen, is netflix look, we all know the story. most of us love easy netflix they like lots of older programming to bring you in and add in brilliance to keep you
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hooked they can make some truly great stuff like stranger things the latest season has president been out for a month and already it's been watched by 40 million households however netflix had truly heinous numbers. this they didn't grow subscribers in the u.s., they lost that's the first time they lost since 2011 earnings year over year, even international couldn't save them despite predicting 5 million subs they only signed up 2.7 million. most importantly signs were particularly weak in areas where they raised prices typically by 13 to 18% i'm going to repeat that areas where they raised prices were particularly weak now, we've seen netflix stumble before especially after a price hike how about like this. in one fell swoop it went from easy money to hard money so skeptical it lost 10% of value today and you will for all i know it could go down.
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i believe netflix, between the movies, the shows, you can get a whole month of netflix for less than the cost of a movie ticket. throw in the candy, forget about it i figure people wouldn't blanch at a price increase. yet that's exactly what happened here we thought netflix was the kind of company that could raise prices without impunity. if that's the case we need to take it you out of the bin of consistency and put it in episodic heaven forbid, episode i cal i have no idea what i pay for netflix. i have my own funny picture of when they ask me who is watching a 235few years ago in preparatin for interviewing the ceo, i called at 2:30 to ask a question i wanted to know my best bet for a movie from stalin to go to berlin to end the war in the east watch a movie directed by stalin wasn't bad i will gladly double what i'm currently paying for netflix, whatever the heck it is.
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turns out -- i'm not representative of the broader customer base. in other words, i know we're thinking netflix is like costco or spotify or apple. all the services people pay for without thinking about it. if it's not part of that club you have to guess what people are willing to shell out what they're paying it's no longer easy money, it's hard not just netflix i have another one for the longest pharma was johnson and johnson. terrific growth in actual pharmaceuticals, not just the sales force. suddenly this one's become the hard money even the other day j & j reported an excellent quarter. at the same time there was a story how the company might be on the hook for billions because of its role in the opioid epidemic the authorities went after j & j tooth and nail two other companies for pushing the painkillers that could ruin lives. the other companies were a lot worse than j & j they wrote some checks, they settled. j & j sold far fewer opioids and
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they did so responsibly. they're trying to fight it out in court because they didn't do anything wrong and they're getting hit for it they may have been less than 1% for opioid sales we own it for my charitable trust. it has been brutal this could be the tip of the iceberg in terms of litigation including all the cases based on the allegations knowing j & j sold talc which was loaded with lead i've done the interviews i believe the story he told here on the set there are new cases coming from all over it's become a dangerous whack a mole story trading 140, they didn't want to now it's all the way back to 132 much i don't want to buy more. maybe a little more de risk. the easy pharma is in novartis best of all no controversy two more examples. csx beat east coast railroad what did they do they reported what i can tell you was a very disappointing
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quarter. and you know what? why? because the ceo is even baffled by the weak economy and the stock got crushed. lance, ceo of union pacific, a west coast railroad, didn't seem baffled at all csx is a train wreck with hard money. maybe i'm being a chicken, the real reward goes to the bold and the brave. people were willing to wade into netflix and make a stand j & j will win all the cases or csx can figure out what went wrong and turn things around that, my friends is totally wrong. through many years of experience, i can tell you that this kind of bravery rarely pays off. sometimes things are as straightforward as they seem costco is now cheaper than netflix. they usually don't get away with raising the price of membership. novartis is a better buy than j & j, even with the stock back to its all-time high 17 times earnings as for csx versus union pacific,
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are you kidding me being a hero looks great in the movies, but it's a silly way to invest if you 3w4r50e678 netflix is turning things around because of the quarter being good, good for you. i'd love to gift hastings the benefit of the doubt as competitors ramp up, their own streaming services, it turns out some people do care about the price of netflix when they raise price, people stop subscribing this makes it a much less compelling story bottom line, some companies are so straightforwardly fabulous that they are easy money netflix used to be part of that club, but not any more i'm not saying it's a bad story. maybe it's already making a comeback maybe it's not, that's why it's hard money i'd much rather chase easy money any day of the week than hard money ever, and it is that simple rafael in florida. rafael caller: good afternoon thanks for taking my call. my question is for stitch fix. it reported two months ago pretty good numbers, but hasn't picked up yet. >> well, let's give it a chance.
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it's a young unseasoned company, but i have to tell you having met katrina lake, i am totally impressed. i think that they've got a good business going, and that the stock is a buy right here. the quarter was good, by the way. lettu's go to scott in florida. scott. caller: jim, how are you doing >> scott, i'm doing well, thank you. caller: all right. my question is on umh. what's up with umh >> i am furious about umh. caller: they're still down $6 a share. >> great quarter, middle of the conference call they dropped a bomb about a piece of business they made it so you could not get the right estimates of what they did so it looked like they boosted, but they didn't. and they did it in the middle of the call and reversed the stock and it went down i'm getting tired of this. i'm getting tired of the inconsistency in united health my charitable trust owns it and i threw something today. i haven't thrown things in ages. i haven't thrown anything since saturday all right, take it easy.
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remember that being a hero is a silly way to invest. it's okay to seek out easy money. on "mad money" tonight, bank of america just hauled in a record first half profit. pay cuts take a bite out of the stock in the longer term i'm sitting down with the ceo to find out ever heard of a $34 billion bargain? i'm conducting an investigation to find out whether ibm overpaid for red hat. after reporting top and bottom line misses i'm going to sit down with the ceo of knew core find out what's ahead for this great american steel company so stay with cramer. >> announcer: don't miss a second of "mad money." follow at jim cramer on twitter. tweet cramer, #mad tweets. send an email at cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. i consulted with your grandmother's doctor.
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here, hello! starts with -hi!mple... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out.
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that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. the craziest thing about this market, the banks are back. so far this earnings season, major banks other than say wells fargo, have reported spectacular
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quarters yesterday bank of america delivered what brian moynihan called the best quarter in the company's history. you know i'm a fan of this one i'm a customer, full disclosure. bank of america developed itself bought leading online bank they have the best technology by far and helping to rake in positive fees. it grew by $75 billion that came from the consumer. we learned from brian it was flush. it wasn't perfect. bank of america's net income was stagnant which is what you'd expect with an inverted yield curve. they're making inroads into investment banking equity is great plus at ten times earnings ridiculously cheap. i think it's a buy don't take it from me. let's check in with brian moynihan, chairman & ceo of bank of america mr. moynihan, welcome back to "mad money." thank you so much. have a seat. brian, i thought that this quarter was a break out quarter. you can criticize it or not, but i think that you have crossed the level where you are a technology company that is really fabulous at banking is that a fair statement >> it's absolutely fair
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statement because at the end of the day we have really talented teammates. the computers that they operate and technology they operate and frankly buildings to keep it all dry so that works. that's what we have. those teammates use those computers to either build them so clients can work themselves or work with them to help serve clients. 37 -- 37 million digital customers, 28 million mobile customers, the numbers just roll in by the way, whatway highlighted on earnings report is on the institutional side, treasury services it's all automated wire stuff. the customer is much more automated. >> what i'm hearing is recurring revenue. even though i mentioned this net interest margin, it hasn't meant anything the fed cuts rates we were supposed to sell banks i'm wondering if there isn't something different happening. your streams of revenue are really building and your costs are going down, the efficiency >> that efficiency, again, is driven by the technology enabling the consumer and the wealth management companies, it's always more efficient to
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serve it that way. yet you have to have great people when the face-to-face meeting comes up when the need is there so 57% efficiency ratio, we ran about 13, 3 billion in expenses, 13.3 billion, that is 7 of the last 8 quarters, 1.13, 1.3, one was a little higher. we invest ed in thousands of relationship management people $3 billion in technology in that time period 67 new branches, probably retooled a thousand branches. all that investment going in, at the same time expenses flat that's enabled by technology >> as a customer -- my wife does the banking in our house -- we keep hearing it's a millennial bank because they have it. i think what's distinguishing your app it's not a millennial bank not enough millennials to make those numbers. it's ease of banking which i thought would never happen you're spending a lot of money making a design that does appeal to everybody >> and that's the key. by the way, you know, it works
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for general consumers. it works for wealthy consumers, it works for small companies, it works for big companies. you're right, with that many digital customers, everybody is using it now, does it cohort in age a little bit younger what i said yesterday in earnings about millennials, there is a debate about whether banks like us are appealing to millennials. we open accounts at three times the population rate in our new sales. we have about twice the population rate in our customer base today they have 60, $70 billion checking deposit gen z add another chunk on top they have $200 billion of investments in deposits and loans with us. it's already a big business. as a millennial owning bank, it's one of the biggest banks in the country, probably 5th or 6th largest bank >> that's a sticky customer. once you get them at that age, they stay. one of the things that struck me, we have two economies. you can tell me otherwise, but
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the consumer is doing so well, they don't have all thighs r these industrial companies that are not doing that well. how do you explain that die k l dichotomy? >> you have to parse the global economy, with china slowing down and europe expecting to grow faster but didn't grow as much and the united states going from 3% growth to maybe mid 2s. the core thing is the united states economy is growing. is it growing slower than it grew last year actually not so far reportedly, but expected to slow down because the first quarter is basically equivalent to last year and the consumer is driving it consumer spending at bank of america for the first six months of the year was up 5.5% over last year. the year before it was up 8.5% for the year before. so it went from about 4, 5% to 8.5% to 5% guess what those two years, 2.5% growth economies. that's what we feel. so if you're selling into china, it's 20% of your business, it slowed down, that's hurting at the margin, but everything else is fine. so even our small and midsize businesses, they feel good they used to be this
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enthusiastic now they're this enthusiastic. but three years ago they were this enthusiastic. >> that little enthusiasm is enough to make it so if j pal is watching this conversation he doesn't say, boy, to cut rates my silly >> the evidence doesn't show the consumer slow down unemployment is tight, wages are growing. teammates worked for us. that was in the lower part of the wage scale, 75,000 and under. for the last ten years has received 6% per year in salary and wage increases, per year >> that's great. >> not once. 6% per year. to keep a talented teammate base, you have to pay that that's what i hear my clients saying wages are growing. spending is growing. that's all good. is it growing as fast as last year no is it growing? it's growing fine. >> but the balance sheet is surprising you always read these articles that say they're taking on more debt i looked at the balance sheet that was -- and you're really exemplary. there's not a lot of bad loans being made >> we're running long at levels
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that have been very stable, 40 -- we had a little bit of recovery because we sold some loans. it would have been 43 forma basis points charge off. we would have been in the range of 41 to 43-ish the last eight, ten quarters in a row. a little blip, oil and gas a couple years ago, remember this happens, that happens at the end of the day it comes right back the credit card charge is stable for the whole industry, us, too. those are things that you show the consumer has borrowing capacity left, to use their borrowing capacity wisely and will continue i think to do so because they continue to make money and payoff their debts >> i've known you for a long time one thing i think we agree is capitalism is good senator elizabeth warren just this afternoon demonizing banks again. i want to give you a chance to talk about some things important to you, what you do for workers. it's pretty monumental >> if you think about our company, one of our basic principles is to be the best place nfor a person to, would
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that goes across all dimensions. our diversity, pay for performance, reskilling, leadership development programs, our opportunity for all the people our average compensation is about 140, $150,000 per person >> that's a lot. >> behind that is families health care benefits, we insure 400,000 people plus retirees on top of that. 401 k, the match we have one of the things that's interesting, your colleagues asked earlier, going beyond. so we have a thing called life event services the floods hit someplace, we contact every employee, do you need anything, what do you need, we'll help you we do that in all the events you think about. once i went on the hurricanes last year, i said to a teammate, how is the hurricane season going in the united states? which one of the three are we working now? we have people in singapore and thailand at the time we do that the life event service has been fascinating. along with mental wellness, the stress at work and can't cope question, which is something we've been working on in business at the american heart
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association, ceo group, al sikorsky and i think about this question we realize mental health is key. we run a lot of sessions about mental health. what's interesting is we got into the question of domestic violence we're a company that has a safe place to work, but even that, since we started we have 1500 teammates come forward and said they needed help with domestic violence not necessarily them sometimes a cousin, sometimes a child, sometimes themselves. sometimes a friend our job is to get in and help them and get them taken care of. you think of about a company like ours, if we had that many teammates, all companies have to be doing these kinds of things it's a company that makes a good money, investment in teammates our work areas are safe. the stress in our work is -- >> sure. >> we're type-a people on the other hand it's not unsafe, yet you have this happen >> what you're describing is impact per share these people work at a lot of different places it's a tight labor market. the things you're doing are to
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change people's lives. >> we're $17 now, $35,000, anybody starts in our company. go on to $40,000 over the next 24 months. plus you get full benefits the effective rate of that $17 is $29 an hour between the benefits and other things. by the way, we're not alone. other companies do this, too that's what corporate america does we employ half the american population plus. weinsure half the american population, we employ 200 million people we provide these great benefits. so the idea of capitalism, that's what capitalists do they have to have great teammates to be successful we provide great benefits. the question for capitalism is we have to do both, provide great returns, 16% return on equity shareholders, common equity and help society make progress that starts at home and with our teammates that starts with life event services >> you're doing it and the stock is a buy i don't want to be so crass as mention money, but it's a buy. that's brian moynihan, chairman & ceo of bank of america you hear all the good things
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e in'rdog? it's the right thing to do "mad money" is back after the break.
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look at ibm go last time big blue reported, okay, an imperfect quarter, but strong enough to get the stock roaring today, up nearly 5%. >> hallelujah. >> more importantly i think the results vindicate ibm's dee to pay $44 billion for red hat, the software company that's become integral to helping other businesses embrace the cloud you know i've been watching this transaction like a hawk ever since it was announced last october. we had the ceo of ibm, of course, and jim white hearst, ceo of red hat on the show right after the deal closed earlier this month as i told you repeatedly, impassionate in the belief of this merger. ibm boosted the revenue growth
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red hat gave them exactly what they wanted. we've been hearing a new refrain from the pundit ocracy over and over they tell us ibm overpaid for the red hat acquisition. >> boo >> $34 billion, a 63% premium versus where the stock had been trading was too much and that it's all going to end in tears my response, wrong i think the red hat deal made a ton of sense i'm going to prove it to you it's not about what we saw in the latest quarter i'm save that for last because i've been on this deal for quite sometime let me set the stage ibm has been stuck in a multi year stock rut in 2013 the stock peaked at $215 then it fell off a cliff you can see this tumbling to $120 this has just been miserable, right? it's been a really rough stretch the last three years ibm bounced through those levels every time it tried to make a sustained rally, you see what
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happened the move fizzled it was like a bear trap, value trap every time it went up, people got excited, jumped on it, then it went right back down. why? ibm hasn't been able to generate meaningful sales growth since 2011 i wish i could say sales stagnated. they were down nearly 12%. it was a brutal period that came from shedding empty calorie divisions. ibm was too much in the wrong part of town they were all about selling mostly hardware and old tech at a time the whole industry was embracing cloud based software as a service not on premises ibm tried to turn things around. for years jeannie remedi invest ed in cloud analytics and intelligence the faster growing businesses would offset the weakness in ibm's legacy divisions someone said it worked the growth turned around, up .6%, but it was up. that is a big improvement versus the hideous decline four years ago.
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it's not the number portfolio managers, particularly tech managers get excited about even though it started to slow in the second half of last year, we began to hear rumbletions they were going to do something big. sure enough, she did something different. she snapped up red hat for 44 billion in cash. she kept on ceo jim white hearst who gave me this hat, he's joined ibm senior management team you know i like the deal what about the criticism remedi overpaid ibm wasn't the only bidder it filed a acquisition statement. they mentioned three interested parties. if you read me in the lines, there were three cloud giants. microsoft with azure great quarter tonight. alphabet, okay that's google wide services. amazon web services. while that 63% premium sounds like a hefty price tag,
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considering there were other potential bidders, they paid what they had to pay to get the job done it's a little misleading it seems like ibm paid through the nose for red hat if you measure where the price tag was before the announcement. at the time, $116 stock, ibm sold out 190 we've been supporting it for years when it was in the 50s, 60, 70s, 80s red hat, even a year before, the price seems a lot more reasonable in june of last year the stock was at $177. after getting clobbered for a suboptimal quarter if you think jim white hearst like i do can turn things around -- and i did -- then it wasn't going to stay down here for long it was going to start climbing with or without jenny. if you take red hat's price over the year before's ibm's take overbid, $142, ibm only paid a 34% premium. in other words, i don't think they overpaid versus what this
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business was really worth. then there's the qualitative argument for years ibm had been trying to expand into the cloud. rather than a plug and play company, it believes we're only 20% of the way into the cloud transition the next step will involve mission critical work loads the best at this to the cloud while optimizing every business process under the sun. ibm wants to be the one stop shot for managing your cloud i.t. infrastructure. red hat makes that possible. and also be really tough and transform into a major player. what about the quantitative side now, this is really important. we spend a lot of time in this, too. if you still think ibm overpaid, look at how much the cloud stocks have run since the red hat deal was announced this is really important remember, red hat was one of our original seven cloud kings along with adobe, salesforce and workday. cloud king is up 51% since ibm told us it was buying red hat.
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51%. you look at the market capitalizations, they increased 54%. it's a $30 billion company, now a 35 $5 billion company. workday doubled in market cap from 26 billion to 49 billion while red hat, let's just say it didn't go up as much as a lot of these other companies. that compares. you look at the valuation at average, cloud kings are selling 54 times next year's earnings. ibm paid 46 times next year's earnings for red hat if anything, i've got to tell you, based on these comparisons, you could argue that they under paid for this company. i'm not kidding. yeah, the company got a great value, especially if they can keep white hearst on white hearst has to have free reign. he gave me the hat by the way. i always thinklike sinatra, maybe not. finally ibm just reported. while the company reported nice earnings, there was real hair on
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the results. down 4.2% year over year cloud sales excluding the mainframe business were only up 9% that's down from 16% the previous year, 18% ouch it continues to hemorrhage red hat wasn't included in these numbers. i think it's crystal clear they did need to do this deal if they wanted to start greeg it as lisa ellis put it in her piece this morning ibm second quarter '19 just in time red hat enters as cloud growth sputters players in the other space continue to do just fine they needed to change of direction and that's what red hat gives them that's why i think it's earning for this nice day. bottom line, next time you hear that ibm overpaid for red hat, you remember what i just told you. you remember that the whole cloud cohort has been on fire and ibm needed to do this deal if anything, i think they could afford to pay more that's how viable it is to have white hearst running the business for them. finally ibm can return to growth
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mode and that's definitely worth $34 billion. i have to tell you, i think the stock is put in a bottom i think the stock is buy, buy, buy. susan in texas susan. >> caller: hey, jim, thank you for taking my call and all that you do for us home gamers. i have so much learned >> thank you >> caller: and i enjoy listening to your interviews >> thank you >> caller: in february 2018 you featured zebra technologies and they steadily climbed year over year for a 96% increase, until this april when it reported a beat in earnings and took its first significant pull back, taking it down to 166 for a 30% decrease at that time i thought it was just profit taking >> right >> caller: in position it's quickly climbing back up this past june and july until ten days ago when it took a hit high of 218 down to 177 towed. >> right >> caller: an 18% decline.
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so what's going on with this stock? is it worth profit taking? >> first thank you for the kind comment. it has been a big winner third, here's what matters a company high wall, what zebra does in terms of warehouse animation. that business turned down. it was actually quite shocking i think there are other things involved honeywell did well in that it was one of the biggest leaders today. but that's zebra's bread and butter wheel house i think people have to reassess whether zebra is seeing the same pressure honeywell is. and if they do -- >> sell, sell, sell. >> if they do, you have a good game let's think about that 34 billion is a lot of money, i get it, but ibm paid what they needed ford an assetred hat is helping them return to growth mode much more "mad money" ahead. it's been nearly a year and a half since the 25% steel tariffs went into effect especially on today's earnings, i'm asking nucor see how the
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company has fared. i'm highlighting one of the bifgt mistakes investors make. don't let yourself fall prey to it all your calls rapid fire in tonight's edition of the lightning round. so stay with cramer. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.
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16 months ago president trump thought the 25% tariffs on imported steel to protect the beleaguered steel industry against china which subsidizes the production of cheap steel. i think the underlying logic of the trade war makes perfect sense. china has been a consistently bad act or on trading and we needed to show them we 19 business nucor may have been too early because of some events that occurred that i did not foresee. just this morning nucor reported an imperfect quarter because of sales and earnings i think the fed will cut interest rates, i expect cyclicals like nucor might get a boost. things are looking up given declining steel inventories and decline in dumping because of tariffs. let's check in with the chairman & ceo of nucor for more on the
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quarter and what it will take to get the stock back on track. welcome back to "mad money." >> hi, jim thank you for having me on the show >> john, i am hearing, when i read the conference call, and listening to what nucor has been up to, there are a couple of price hikes. i know the steel business. when that happens, it's time to pounce tell me what's going on. >> well, we have had two price increases on our sheet products over the last four weeks the first one took place about three weeks ago when we did -- we were able to collect just about all of the $40 the second increase was also $40 just a week ago, and it's too early to tell how we're collecting that, but we have high hopes of being able to collect it because we see our lead times going out, expanding out from about three weeks to about six weeks. >> now, i think for those who are uninformed about the steel industry, these sound like they may not be major, but isn't that how almost every churn has really begun >> it is and, you know, you started the
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show mentioning we had a weaker than hoped for first -- second quarter. but let's bear in mind that the first half of this year for nucor was our third best first half of a year in our company's history. so despite a challenging market because of weather conditions and, and inventories that were loaded, our team did a great job in operating in a difficult situation and presenting a very good first half of the year for our company. >> john, i'm used to the chinese seeing these price increases and flooding our great nation with their cheap and i think imperfect steel. will that happen again >> well, the administration and the commerce department have taken many steps to prevent that from happening we're very pleased with the results that are happening as a result of the tariffs. the anticipated response was domestic capacity coming online to replace the lower imported steel and that's exactly what happened so things are becoming more
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normalized last year demand was very strong and as a result, people were worried that they wouldn't be able to get the steel they needed when imports went down. the domestic industry, nucor included, responded by making sure we gave our customers what they needed to keep their customers happy. and with the strong end demand use we saw in 2018, jim, we see it increasing right into 2019. so it's carrying forward we still see end use demand very strong what we saw in the last quarter and the first half of the year was inventory de-stocking by our service customers getting rid of that overblown inventory they had last year. and we see a more normalized ordering pattern from our service center and our oem customers occurring now. >> i know something about nucor from when i met the great ken iverson which is that the company grows when it's not necessarily perceived to be the right time to grow because they want to be ready they also have the best work force, and most importantly, the
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lowest costs will you be able to maintain that and would this not be one of those moments since then can't flood us with imports, that nucor can show you how much they make when things get cranking? >> you're right. we continue to invest during the tougher times. we've done that during the first half of this year. you, i'm sure, know we have $3.5 billion of investments. and what we're investing in is our capabilities not just our capacity so as we invest in our capabilities to produce higher grade steals to provide solutions to our customers' needs, we're also investing in our ability to keep and enhangs our low-cost position in projects of logistical to our customers and scrap suppliers. we're investing to get closer to our customer, closer to our supply, and also investing to increase the capability of our mills. >> now, john, i know that you
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are a gentleman and you're not going to slam your competitors but some of the other guys did not handle their balance sheet well during a period where nucor had exceptional balance sheet management is it possible you might be a theoretical last man standing when prices go higher although they'll still be below all the worries we heard about from the media when they put through the tariffs? >> absolutely, jim you make a great point we heard all this from the media that steel would be so highly priced with the tariffs that customers could not take care of their customers in appliances and downstream businesses. if you look at the pricing today, it is about $100 a ton under what it was before the tariffs went into effect so the pricing today is lower than before the tariffs. we said all along last year that this is an issue of supply and demand it got a little bit out of whack last year. now it's back normalized and pricing is normalized also >> well, to me that sounds,
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john, that's the loaded spring i've been looking for. i know things got a little delayed because of stocking and de-stocking, but this is the moment i think i should be -- i should have prepared for it's time, isn't it? >> well, let me put it this way. i sleep very easily at night i know we've got a great team. we have great end use demand the combination of those two things can give me a great deal of confidence in nucor's future. >> that's the president and chairman of nucor once again, the best steel company in the world. "mad money" is back after the break. (soft music) - when i see obstacles, i create opportunities. - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university
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is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu.
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abbreviated tv channels 200. >> shows like "mad money" and the profit help put the b, business, in this four hahn letter channel >> what is cnbc. >> yes >> what can i say? that man is a genius he has horse sense it is time it's time for the lightning round. >> buy, buy, buy buy >> sell, sell, sell, sell.
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>> and then the lightning round is ready are you ready ski daddy? lightning round, omid in california omid >> caller: booyah, jim i want to ask about tesla. do you think they're on the road to bankruptcy? it's undeniable -- >> we wrote a nice book about them they can't cellsell elon musk i want to congratulate them for making a lot of cars that's the ticket. let's go to tyler in michigan tyler. >> caller: booyah, jim first time caller, big fan of the show >> thank you >> caller: what are your thoughts on ee i don't know property >> unlike most of these good time char liz, it's been right lucas in pennsylvania. lukas. >> caller: booyah, jim, how is everything going >> going really well how about you? >> caller: great listen, my question is about
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entertainment ticker sif >> it's become too hard. i don't like too hard. hard money, i like easy money. oreen in pennsylvania. oreen. >> caller: hi, jim what i want to know is i have coca-cola for a long time. should i trade it for another beverage stock >> no, 3% yield, it's doing a good job it has premium always does boy, you sound like you're from kna just like my ma. let's go to charlie in pennsylvania charlie. >> caller: jim, thank you for the guidance >> of course >> caller: in a bull market. it's been invaluable i'm looking at a regional remarkably well in a low interest rate environment. i expect the dividend interest, the rate to rise shortly talking about community bank systems. >> i don't want that community bank i'm sorry, that is one that will be hurt by lower rates we've got bank of america.
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we have goldman sachs. we have j.p. morgan. we have citi that's all we needed pee pete i need narayan in iowa >> caller: i'm a first-time caller biopharmaceuticals was on your show you said the stock imploded. the stock is down almost 30% should i buy, sell or hold >> it's not been exemplary it is a spec you're just hoping one of the drugs pays off they have a lot of stocks on go and i think that is absolutely go with the late stage migraine has proven to be okay. let's go to charles in california charles! >> caller: hey, greetings from hollywood! >> all right >> caller: about five weeks ago you recommended the three zs, zebra and zendex -- >> yes, z scaler, how can i help you? >> caller: i put my money into
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dana corp., dan. is there hope? >> you wanted zana no, i'm saying z scale, you don't want dana because that is a d and that is also not a great stock. no dana, only zool, and z scale. that is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by t.d. ameritrade oked at chart pattern. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪
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listen to me there is no cure for stupid. that's how i feel every morning when i see investors jumping the gun in premarket trading trying to trade-off the headlines during earnings season is a mugs game >> boo >> you have no idea what's going on underneath the silly headlines so you have no one to blame but yourself if and when the stock in question reverses and runs you over. that's why i always tell you, wait for the conference call i know it's boring, before you pull the trigger just look at j.b. hunt, giant trucking company when j.b. hunt reported earlier this week, it traded down 3 bucks and turned around and up 5. a swing for anyone bold enough and smart enough and not stupid enough like the sellers right there. all right, listen. i understand the confusion see, what happens is during earnings season the headlines comes with fast and furious. i think a lot of the headlines
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are written by machines. they're not great at capturing nuance when j.b. hunt reported, they used an algorithm to slash weakness machines were wrong. if you waited for the comps call you would have heard them say they were disappointed about some line items. they told a story of growth despite rough condilgss. it was a lot like what happened today with union pacific people sold ump stock down hard. csx another different railroad reported an awful quarter yesterday. today union pacific told us they're still doing well and could do even better if the president decides to be less combative on trade look at this the stock pulled nearly 6% how about honeywell, hom the company reported a set of numbers that seem to reflect serious weakness, particularly division that involved automation of warehouses huge swing from up to down and safety and productivity solutions business that is the best automater because amazon uses them the stock had already pulled back hard yesterday in part because of a bogus redistricting tech drive aerospace had a better quarter
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what an incredible buying opportunity. the ceo was explaining how honeywell's aerospace business is stronger than expected. three times larger than safety and productivity segment, bingo. that's how you get a fabulous snap back and the stock closes up 3%. what can i say if you try to trade stocks on the headlines, the market will make a fool out of you it's humans writing stupid headlines. sometimes it's pure pen action amd remains my absolute favorite it caught a rare downgrade from mizuho that downgrade gave sellers ammo to wreck the whole group as a result, lrcx my fave equipment maker not a semi company, but equipment maker got slammed. big mistake. why? another semiconductor named asml made a bold call in europe the
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bottom is in for this segment of the industry boom lam came right back up, the stock gaining 3.4% one of the biggest changes from down to up i've seen in ages anyone who sold the stock off amd downgrade, you're an idiot, a chowder head >> chowder head. >> i don't know how many different ways i can say this. don't mess around with premarket trading, sparky. don't buy or sell based on earnings until you listen to the annual conference call, chief. the headlines are not enough and they will often mislead anyone who is too trigger happy. nobody's making you swing at these curve balls, sunshine. just be patient and keep your bag on your shoulder until you have all the information it's not that hard stick with cramer. this is his family, the world he's built, for 72 years. ♪
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this is hal's heart. it's been torn. broken. and put back together. this is also hal's heart. this is the cardiologist his brother recommended. and this is hal's relief, knowing he's covered. this is hal. his heart and memory keeper, and it's beating better than ever. this is what medicare from blue cross blue shield does for hal. and with easy access to quality healthcare, imagine what we can do for you. this is medicare that cares back. this is the benefit of blue.
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microsoft was great tonight. i like to say there's a bull mark somewhere i try to find it for you on "mad money. i'm jim cramer see you tomorrow
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ is an innovation in personal security. [ laughs ] corcoran: oh, it's a real llama. wow. are they cool. i've never seen one. have you? o'leary: that's crazy. wow. [ laughs ] hi, sharks. my name is nick nevarez.

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