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tv   Mad Money  CNBC  October 13, 2021 6:00pm-7:01pm EDT

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>> mel, i know you are a huge hockey fan i want your input. rangers/caps do you think they will drop early with tom wilson or wait till a more opportune time in the game >> early for my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a a work and i promise to help you find it. "mad money" starts now >> hey, i'm cramer i'm just trying to make you some money. my job is not just to entertain, it's also to teach you call me at 1-800-743-cnbc or tweet me we are so spooked by inflation
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that's it's got us jumping at shadows. this morning we got a consumer number that ran red hot. that's highest since 1991. in response, we got cascade of selling this morning the inflation eases and do what they do best, freak out. then the market rebounded from those levels the nasdaq which thrives on disinflation jumping .73% because it made no sense as someone who bought and sold 30-year treasuries, 14%. rather than taking a cue for the stock market, maybe you should watch the bond market. what they do, treasuries rally today sending yields lower perhaps we got some data from
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jpmorgan maybe though some people are thinking that inflation could soon peak meaning this might be one of the last red hot cpi numbers. maybe that's what the nasdaq said when it rallied so hard let me give you an alternative scenario i'm going to have to dust off my old when inflation now button. whip inflation when inflation this thing was crazy we all walked around when this win inflation buttons we had i can't believe i wore one you can see them on ebay you can google you can google and then go to e bay. people made a lot of bad fashion
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choices in the 7'70s back to the peak inflation let me give you some suppositions that make a ton of sense here write these down if you want to. first, last time we checked in with our resident commodity, expert who told us historically oil tends to peak when, now. this week. that's your take away from the last 30 years of data. now, this week warned us to be ready for natural gas peak, boom we got one even a week ago, every one thought they would go above. also the chairman and the pioneer of export business thinks the tops are ready. we check natural gas we can check maybe oil now, as i've been picking stock frs s for a long time, i kept my eye on commodity think boxes.
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target now we know you can't do business without packaging today, truest is three reports they are all three as holes and this jarred me, people the moment i saw that, i knew the commodity most sensitive to industry corrugated box must be peaking demand slowing as e commerce goes back to normal. maybe because my father was an old liner board's salesperson, i worked for stone when this product peaks, you have to look out below producers got greedy and put up too many factories and prices will spiral lower. they forgotten pricing really can be a two way street.
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they are almost expecting a down 2022 why? because of over building over capacity. pricing going lower. packaging is going to come down and come down a lot faster i'm saying that. i'm going to be right. they will make knock off products with funny brand names and price them below the brand stuff. consumers now educated enough know the private labels are every bit as good as the national brand stuff i happen to think it's a lot
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better than most of the brand of stuff. price kills. how many times have we heard poor congestion is the biggest bottleneck to getting goods where they need to go causing prices of everything to spike. president biden is now ordered the congested constituencies to come together for the dozens of container ships that are waiting to be unloaded he said there's such a little sense of urgency out there if we can fix it the same time the factories start recovering, opening up more cargo space in the belly of these planes, inflation will cool down
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dramatically we have little data, no organization to pinpoint government should bring in amazon web service or salesforce to take a leave of absence if it takes higher wages for truck drivers and lone shore men, so be it. that's the price of doing business i remember going up during the great north dakota well rush it was 20 degrees out there. better than the minus 30 that hit the place that winter. it was nothing there no amenities tlp was a mcdonald's most of them had not gone to college. they might not go to college why? because they are making mid six figures. what's the point if you're going to make money. the mcdonald's workers were making $26 an hour
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i did not meet a seole up there was working because they loved the job. they loved the money there are individual signs of price degradation. home sales are cooling as prices have gotten way too high for first time home buyers that will lead tho lower home prices what happens this week corn collapses what a bumper crop that's the nonsense that k
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occurred you have to forget this whole transition inflation and get used to this new term. first time you're going to hear it it's called peak inflation the blossoms will soon be self-evident to all that want to bet against you, fed and capitalism jerry in michigan. >> caller: thanks for taking my call >> i am at&t investor. given the recent drop in the stock price i'm considering an i digsal investment between now and the time waern and discovery merger takes
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i'm woerndering your thoughts. >> where is the sedative i don't want you biuying at&t i think that stock if it goes up two buck, you have to sell bad balance sheet, bad management bad. they should rename the ticker b-a-d. sorry to be direct please do not. the seeds of inflation are being planted. i've seen them i'm a gardener this week cnbc has been profiling the lost workers as we emerge from the pandemic i'm highlighting the winners and losers to make money off the workers. there's a whole new cord of banks on wus complete the opposite of office zero i'm checking in with incredible
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identity juggernaut cyber security play. stay with cramer
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underwhelming jobs report. it's more like a half million. we're seeing wage growth you'd think that would be good news when the unemployment rate falls at a time when we're not crecreate ing many job, that tells you tons of americans are dropping out of the work force. we have an intractable labor shortage we learned a record 4.3 million workers quit their job in august more than 30 million have quit their jobs in 2021 we're losing workers at an unprecedented rate it's wreaking havoc on the economy. it's the loss workers. i want to put my mad money spin on it. rather than trying ing to figuri why people are dropping out, it's my job to show you how to
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play as we see it, the hardest hit companies are ones whose employees are engaged in drudgery workers are fleeing these jobs because they think they have better opportunities other places we're calling it the great resignation. take fedex remember thaiey told us they wee suffering from worker shortage the hub in portland only has 65% of its staffing it needs to handle the usual volume. that's created huge supply chain itself labor shortage i keep telling you a severe shortage of truckers in the country. the only way to solve it is if they start paying a lot more money.
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we know deere stock has been pummelled. you look deeper into the 4.3 million workers who quit their job, the biggest losses were in food services and accommodations those service jobs are rough and poorly paid. that makes me a little worried about all these sectors. hospitality, retail, health care for years capital has been crushing labor the boss is cleani ing up while the rank and file get the short end of the stick is it really terrible. what about the workers in general a tight labor market is bad news.
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they have base wages that eat into earnings. for some company it's major opportunity. let's go over some first there's paychecks. they blew away the numbers because businesses are desperate. companies either work to attract talent for the first time in ages anyone who makes that process easier is wa winner here. the labor shortage means companies need to invest in technology to boost productivity they have to do more with less that's salesforce.com. even as the pandemic subsided, many people don't want to go back to work companies can offer more flexible arrangements with huge advantages over competitors. you automate those jobs out of
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existence or the drudgery of the job. they can automate repetitive tasks. i think it could go even more. lock up on insider in the near future that said, when that happen, they buy some. generally speaking larger companies with full-time recruiting staffs. should have a much easier time that goes double for companies that are always treated the workers well like costco, william sonoma, chipotle small businesses get hit the harders. maybe you want exposure to enablers think intuit
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it makes human bookkeepers unnecessary. too many people seeking too many jobs, great places there's only throe ee that come mind there's apple, google and facebook the labor shortage is here to stay avoid the losers and stick to the winners. don't miss the final two installments of the lost workers series tomorrow. kate rogers will have unconventional reasons while people are dropping out the work force. coming up, do these stocks amfer a road map to the future crer hops on the fast track of
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fin tech, next
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: for the last couple of months the bank stocks have roared. now that earnings season is upon us, that makes it difficult to clear an already high bar. there's a weird relationship between the banks a and the financial tech stocks and it's not enough on the show when the banks are cold, fin tech is hot? why? money managers want financial exposure without the banks, they swap into fin tech when they like the banks, maybe cause they go higher, that money rotates back so they are t traditional. if the rest of them go like
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jpmorgan which reported stellar earnings but gave conservative color, we could have one more exodus and one more love affair with the fin teches. it's a dprup of stocks we're calling the nuevo backs. the 140 people behind this show are amazing. these are going to be in your face for next ten years. they are household names among the people that save stocks. paypal, square and upstart, affirm, robinhood. you might know that already and because this other one has
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opiniobeen on our show a lot, sofi. long term they running circles around the old school banks. let's start with paypal. i'll just write them down because this is like a class here what happened? aye been pushing paypal since before it was spun off by ebay now it's at 256. it's more important, it's pull back from $310 that makes it attractive everybody recognizes this one as the digital payments and check out solution in recent years, paypal has
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gotten into range of businesses that we typically associate with traditional banking. they have a buy now, pay later platform they offer crypto currency trading. they just launched their sure app that combines all these services onto a single platform. i think this is huge younger americans have zero faith in the old financial system fairly run, fairly the banks are hated companies. there's no trust paypal under dan, let me tell you something, i've never met a younger person who say you ought to talk more about paypal. they love their bank who loves their bank i don't love my bank i fight with my bank
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paypal is loved. my kids love paypal. it's exhausting. i think it's worth wbuying now i suggest you read them before you pull the trigger you need more information than i just gave you. we can do that which is why i feature the qr code on david's face and occasionally over here. i'll leave my arm up here. how about that how about square this is another fin tech story scare has the little gizmos. i ended up buying postcards.
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then they realize they had this data about how small businesses were making money, so they rolled out square capital which offered loans and cash advances. they can be repaid if you're doing well at a restaurant, they already know how much you have. they loan. like paypal, square has its own peer to peer payment system. it's called cash app it's what everybody likes. they offered bitcoin trading square went so far to get a bank charter but so far they are handling loans the nuevo riche of the banks first you have upstart the uber cramer fave.
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this one has a monster run it came public at $20 in december zoom then to 344 it's going to be replacing for fico you do not need people upstart is not in lending business they connect borrowers to lenders and collect a fee in the process. it's the least bank like of the nuevo banks. i don't care because the numbers are spectacular. it's like looking at a total eclipse of the sun
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i think the stock might be over extended that period you should put that one on the shopping list. a pull back and you pull the trigger because i've got to tell you upstart is probably the most explosive stock other than hub stock which david learned about today. there's upstart. this is love too this is the company that's leading the way on buy now, pay later. they are bringing back layaway everybody is trying to get in on this buy now, pay later action like it's some sort of tnew thing. we knew this one would be huge when the firm partnered up with amazon over the summer hasn't looked back since then. partnered with wall street and target affirm has big plans they don't want to cut out the credit card, they are working on their own debit card and not to
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mention what you have to have, crypto trading the only problem, affirm has made a new high today. you're not going at the bottom i think management and affirm is creative and extraordinary fifth is robinhood that's the broker house becomes controversial because of reliability concerns i have some qualms about this. i don't like how much of this business is based on options trading. there's no denying that robinhood has accomplished its goal they single handedly forced the whole discount a single money app for consumers. he wants it all. your paycheck deposits your savings, you bill pay your day-to-day spending right now robinhood is a long way away from any of that. they still need to placate the sec when it comes to core business model taking payment.
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stay tuned on that one he helped bring it public which has been acquired by another company in is the closest to an actual bank of all the ones i mentioned. sofi has the start in lending. now they've got a mobile cash management offering that comes up a debit card. they have broker services. they have a credit card. they are even selling insurance policies sofi is well on its way to obtaining banking charter too. it's gnaw bank the stock has been in the dark i think they got in business of student loans. they were student loan refis it's payment hiatus if you have a student loan they came public via the hated vehicle of a spac. we generally do dislike spacs
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because of their hideous record of people who get in last and at the high you know who those people are? you. it's up nearly 20% month the date here is the bottom line. it's a good time to get some nuevo, the mayor of pennsylvania the nuevo bank exposure. right now i like paypal more than square because it's cheaper, owned by the investment clubs. similar ones with affirm and upstart, you need a pull back. i'm blessing sofi right now. i'm taking a pass on robinhood until those lock up expi rratio occur. i feel like talking calls. let's start with susie in new york >> caller: hi. thanks for the education
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>> you're quite welcome. >> caller: yeah. my question is on coin base global regulate d platform for crypto currency. i bought it as a speculative play on bit coin because they are profitable in a growing market with 11.3% share of global crypto assets my question is will margins shrink with heavy competition from paypal and robinhood and increased regulation or is the company solid and innovative enough to grow market share and justify what say is their high premium? >> here is how i look at these guys they are interesting you know what they did, they picked a fight with the head of the sec. now they are probably saying why is jim stipharping on that the answer is because that's one of the most ill advised positions i'd think a financial institution could have and they can't get my blessing up they shake things up and prune those who ask for, to school gary.
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he knows more about bit coin than they will ever. i like paypal first and then i like square. you can buy sofi right here and you might get a pull back in my buddy's affirm and upstart which are the stars of this particular quarter. much more "mad money". how could the latest deal reshape the cloud landscape? i'll bring it down to earth. last night we learned that apple may have to cut iphone production due to the chip shortage with the stock falling. own it don't trade it all your calls rapid fire next edition of lightning round. stay with cramer
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regular viewers know we're long time fans of cyber security company that handle identity management last month it sold off hard. in last two days, it's roughly 49%. it's back if style with wall street fashion show. a lot is because it had this huge catalyst today. it's another cyber security firm focused on authentication and they dove tail well. i think the stock could have much more upside
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welcome back >> let me start with you one of things i hear, younger people have a different view of your company younger people are afraid they will have to spend a lot of time toggling back and forth. we put both together, young and old like okta? >> the way companies are solving the challenge you outlined when they think about giving their employees the best tools to be productive or think about giving customers the best experience to access their digital products is they are becoming digital first. they are becoming digital first and also becoming an identity first mode what that means is that you balance both the ease of use for employees and customers along with the security concerns to make sure no one can be impersonated no one can be lack hacked or brn into it. you take this identity first
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approach to it >> all right what is that -- what's off zero brought to the party the fact is that only your company makes people feel safe enough to be able to be themselves and not worry about being impersonated >> what we bring to the pcompan is the developer mind set. the software is running everything everything is depending on the software and it's built by developers we bring the developer first >> the one thing i'm concerned about, i hear about these different hacks and i keep thinking a lot of times the hackers are somehow impersonating people, high level people at the company or taking the place of high level people who have left. if they have okta, how can they impersonate? >> well, i think this highlights the reality that it's a difficult job.
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if you're in media, you're concerned about media and content. you're not experts on identity we are the experts so you don't have to be one >> we had a great customer, mass mutual they're an insurance company but really a technology company. they have to have better digita and that involves getting identity right that's why they need a trusted partner like okta to take that burden off of them >> tell me about moodyy's. it has to be stellar how do you make sure people work at moody's like okta but they are safe >> well, a company like moody's is predicated on trust and
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confidence installing confidence with their brand. it has to connect to their employees to make sure employees are able to do their job productively but directly out to their customers. this is a great example of even an organization like moody's is building better digital experiences. they have to connect with their customers. they want to equity directly to them they don't want to go through a middleman. they don't want a complex registration form. when they get into the website or mobile app, it had to be tailored to their specific needs. what off zero does is we allow moody's focus on the application they are trying to build and not have to worry about the plumbing of identify that gets that user to that end goal >> which is they have to now because of what we have seen like a colonial pipeline where they had to pay.
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>> jim, colonial pipeline, that's a big one that's a ransomware attack they think about computers getting malware on them and being encrypted but tals an identity attack. they leverage an identity system that's not modern and not secure to get to every computer and lock up the whole thing. we have a real big problem modern identity systems can help prevent this ra are you constantly staying one step ahead of the posse? >> that's all we do. it's in protecting systems for developers they don't have to build and worry about it they can focus on things that matter most to them. >> todd, i had this vision you die and go to heaven and what you discover is it's
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passwordless which will be amazing. i have so many different passwords now. i've been hacked so many different times that i'm convinced there has to be better way. can i be password less in this world and not the next world >> i'm just imagining heaven having an app for a website. i'm not sure if that's good or bad. if it did, you're right. heaven would have no password. there's no standardization and no connection between the different systems. when you go -- when people go to their jobs, it's too complicated for that employer to hook all the systems together what okta does is it comes preintergrated we have this network that's over 7,000 preintegrated apps so it's all connected. we take the passwords away and make itwork like heaven. maybe that should be our new
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slogan >> ookta, they may work like heaven we'll end it like that next week i'll be interviewing another disrupter 450 ceo you can register by visiting c cnbcevents. cnbcevents. cnbcevents.com/disrupter50summit the lightning round is next.
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it is time lightning round is over. let's do it. hal in florida. >> caller: hey, jim. let's talk a bit tte >> good yield. i like the spin off. it's terrific. these are the kinds of things i'm looking for. same price, same yields. clay in massachusetts. clay. >> caller: hey, jim. first time caller. started listening back in college. i graduated in 2020. i know people my age like to give you a hard time i want to say thank you. i'm in the investing club as well >> i'm teflon. believe me with a human face. go ahead. >> caller: i want to get exposure to some companies in industrial space
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sgla it brought back so much stock. i like that. how about jan. >> caller: hello there mr. cramer >> how are you >> caller: i'm great you can a treasure i want to thank you for freely sharing your vast knowledge of the market >> thank you very much i appreciate that. thank you. >> caller: you make investing more exciting. >> i need to keep people compelled so they keep doing the work let's go to work together. >> caller: my stock i'd like to ask you about is paccar. >> it's a great american
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i think it's terrific. calvin in kentucky >> caller: how you doing, professor cramer >> i'm good. how about you? >> caller: i'm well. my question is about xl. >> i talked positively i skcrewed up. i should have done a better job. that's the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade coming up, supply worries may have shaken some investors to the core. don't make a move on apple until you hear cramer's take, next
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here we go again we get another round of worries about apple's cell phone sales i remain sanguine. how can i not be concerned when every one else is fretting about apple supply chain simple i've seen this movie many, many times. i don't blame you if you don't remember given it's turned out to be a fantastic buying opportunity. it was a seminal moment when apple had a real fall. if you look back at the chart, you can't make out what happened it bounced around from 13 to 14. it's ten times higher. since then we had tons of the stories. chatter about supposedly lackluster new models. endless talk about how the phone should be tune ups and not upgrades that was one of the most
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seminal, bear moments for apple. the stock plunged from the 50s to below 40. remember a lot of people were saying that apple is best times were behind it it's pretty nasty, right i remember these because i came on tv each and every time and urged you to take the other side you don't get a lot of buying opportunities like you have here how did that do? what about it now. it's true that apple is having trouble. that's fact. it could be ten million short this quarter i don't know if apple is struggling here, think about how bad for the rest of the industry. how come i'm always so confident in apple they have the best technology and the best customer loyalty and consumer product spacing that's rare to have best tact and best loyalty it means if you can't get your hand ons the new iphone this
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quarter, just wait until it's back in stock next quarter sure it's hard to believe the suppliers enough chips and they are the source of the problem. the whole industry is too much demand and not enough supply sooner or later they will make enough chips no stock will with stand number without falling. unless you are manager fun time, trading in and out of apple is bad. i think you're better off in you
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own it, not trade it nobody is looking back and kicking themselves for being too bullish on the stock of apple. i like to say there's always a bull market. see you tomorrow the news starts now. see you tomorrow "the news with shepard smith" starts now the nightmare before christmas coming early this year now the president's looking for a fix. i'm shepard smith. this is "the news" on cnbc store shelves empty. what you order months delayed. how to ease the cargo ship bottlenecks and get your holiday gifts on the move. >> this is a big first step in speeding up the movement of materials and goods through our supply chain. >> but will it be enough americans on strike. thousands threatening to walk off the job. hollywood crews, front line
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heroes, even joh

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