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tv   Mad Money  CNBC  November 6, 2018 6:00pm-7:00pm EST

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married at 5 years old i did that in my head. the banks have been waiting for in election. need to get through it for citi to rally. >> happy anniversary to karen vd lawrence goote if 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 other people want to make friends. i'm just trying to save 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. how do we gain out potential outcomes of this election. we saw a lot of bets frankly with not all that much
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information. let me interpret what the buyers and sellers were doing nasdaq climbed .64%. and maybe get insight of what they might do tomorrow most likely gridlocked caused by the democrats taken by the house and representatives. historically when washington can't get anything done, that has been good for stock. is gridlock good for stocks right now? we are not getting any more tax cuts with the do-nothing congress that is no longer going to bolster our growth anymore so that is going to keep puttering along. and the federal reserve looks to keep raising interest rates. three more next year if you own
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stocks this gridlock results in a slower economy that's the sound of a slower economy. it is not great news for the market as a whole. think amazon, alphabet, the cloud play and many of the nonsemi conductor names like broadcom and qualcomm. i can argue that 5g wireless technology is going to go on no matter who is in congress. you can easily buy a biotech etf here i like xbi we have gridlock, and i am not so sure there is enough the democratic house can do for the
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gridlock once we analyze the tax cut, there is nothing else coming but interest rates and tariffs are still going to go up we have seen a tremendous rally. it could come to a screeching halt tomorrow. i bet many hedge funds would like to go up. how about if the republicans keep both houses of congress i got one that, i need you to do this, i need you to buy the defense stocks north rrop grumman and ratytheon the stocks got clocked because of fears that congress would end up defense budget if
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the democrats control of the house. if they can hold both houses in congress, i expect a roaring bull market in defense stock at least the nasty bear market that has been going on months now. i would buy the stock of boeing. the wait list for commercial aircraft is strong speaking of the trade war, i know there are plenty of traders who believe that if the democrats can take both the house and the senate -- if the democratic congress passes a law lower, they will need to veto it you need a real bipartisan
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consensus in congress to get this done. i don't think that all exists. whether we end up with gridlock or no gridlock, the president will keep pushing china and the federal reserve will likely keep tightening in that environment, only the growth stocks can be bought. we saw other stocks rallying today. the industrials went higher. even if they benefit from the breakdown for oil prices i thought they would get hurt. some people are betting that china will be more willing to make a deal if the republicans retain control of the house and senate if the chinese were gaming our country, hoping that the democrats will take the houses and therefore weaken the president's resolve. i don't know about that one. i don't know if the white house even wants to make a deal. policy seems to be containment how about companies that win no
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matter what. i like the health insurers, you could buy humana, cvs and i like cigna. i also like hsa. i wish there were more winners, but i keep coming back to the prospects that the president's tariffs go up and the feds tighten more if that sounds like economic arson, it should burn down the village in order to save it strategy. if we get gridlock, there may be a belief that the economy will stall out.
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i like american electric power, dominion, and clorox which had the best quarter you need to be careful of this strategy if jay powell keeps tightening there may be a lot of money bet that, well, wait a second, bid on the sidelines, it is time to come in. these are investors who regard a classic big event. i think many, many investors are expecting a big rally. i suggest under that scenario you play in reverse. you sell them and you sell them hard you can keep the republican stock but don't overstay your welcome. no deal with china will be reach. and then i think we will get a rate hike and a statement that
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the punch bowl must be smashed to smithereens the biggest issues of the market won't be decided in the polls. let's go to ted in georgia. >> caller: thanks for taking my car. i have a question about pay com software it has growth, return on equity. debt with equity 4%. and a 90% client we tension rate based on their last couple of ten ks our faculty raves about the interface. here is my question. it has got a 62 pe which is about three times its growth rate and that is far out of step with the pricing of companies that i am accustomed to find.
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>> you obviously have done a lot of homework. you are close to the situation the lower price one in terms of risk is pay checks which is three. the higher price thread is workday. my wife is on the board of pay tel and they use workday and they are very competitive. i am going with workday. how about todd in california. >> caller: thanks for taking my call out here in california on the west coast, i have been eating at el pollo loco for decades the company just beat earnings, sits at a 52-week high slowly expanding and have a healthy affordable flamed grill menu. have you eaten at one. >> i have.
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let's come back, i have got to tell you, i'm with you meaning, honestly, i was wrong and now i am right and you are very right let's go to john in michigan michigan crushed, they crushed penn state this weekend. john >> caller: hi, jim, long time listener, first time caller. enjoy the show my stock is the only nonstatin pill drug. should be available in one to two years. a close to trillion dollar business i don't know what is holding its back. >> i think there is competition of repatha from amgen. and we used to have him on it is a very high risk but high reward situation i am not going to fight you on it because you know how i feel
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about these incredible wonder drug companies with mad money. as long as you can afford to lose the money, you will be fine make sure you vote nucor is down a few bucks. so what the heck is happening. we are going to talk about the ceo about trump and trade. cutting the core of apple tonight. and you know i am on the lookout for a good disruptor story and tonight i found one on the communication base and i will reveal the name so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to or give us a call at 1-800-743-cnbc miss something head to
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[ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone.'re about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. >> when president trump rolled out his tariff on steel months
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ago, i was exuberant so i told you to buy nucor which is by far the best steel maker in america and the world while the tariff has been terrific for the price of steel, it hasn't done anything for the steel stock. and that's after the stock has rallied more than seven bucks. since recent lows. i think the problem isn't nucor, it is rising interest rates. as long as the feds keep wanting to tighten aggressively. on top of that, although i think the feds are more inclined to tightening it makes them want to stamp out inflation. i am worried about a fed slower -- i think it is important to hear the other side of the story so let's check in with chairman
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and ceo of nucor, john ferriola. i am concerned of the world would do and the slow down and what that will do to the nucor >> you have to look at the overall economy. we hear a lot of talk about the tariffs and certainly they are playing a role in the performance of the steel industry and nucor in particular is having this year. the real drive is the economy. and the economy remain strong, being driven by the tax reform and deregulation and strong energy market. and all of these things are factoring into the fact that demand is good, the economy is good and the economy drives the demand and steel
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when you look at our dmemand in the industry this year, up about 2% so seeing a good year in the industry and nucor is having a great year we are on pace to have our best record year in history and we are looking forward to. that we just finished an outstanding third quarter. we generated a lot of cash and a little bit over $1 billion of cash in operations and just to put that in perspective, that number in perspective, that is almost the same amount we generated in full year of 2017 and 2017 also was a good year for us so things are looking good i am more optimistic and more up beat on the future of our industry particularly as we go forward. we continue to see a, we look at 23 or 24 end markets
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and of those 24 end markets, 23 of them are either stable or increasing as we go into the fourth quarter and the first half of next year. so we are optimistic of the future. >> october 2017 there was a piece put out. sector waiting on cautious supply and demand and the feds saying they might be willing to overshoot to stop inflation. those were two things, this report and the feds comments that made me more cautious you seem to not be concerned about supply and demand or the fed. >> when i look at demand, demand continues to be strong up 2% rel liative to next year and the tariffs have stopped the illegal pour of imports into the united states. this year, steel imports are
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down 3.5 million tons. 1.3 million tons have occurred since january 1st when the tariffs went into effect >> should we be concerned let's say the democrats take the senate and the house they do some in some cases, would you be concerned at nucor if that occurs >> not really, because as i mentioned earlier, the tariffs are a factor but not the driver. the driver is the competent aec. and as long as the economy stays strong as a result of tax reform, energy, deregulation, as long as it stays strong, demand is going to stay strong. at the end of the day, economy drives steel demand and steel demand drives pricing.
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and we see a sudden unexpected drop in oil, i think it is going to remain strong. >> any issues of seasonality that i need to be concerned about. >> our fourth quarter should not be as strong as our third quarter due to historic and seasonal factors such as weather and the holidays so it will not be as strong as our third quarter in 2008. -- excuse me, 2018 it will be notably stronger. >> one last question your policy has always been to reward shareholders with a strong dividends, sometimes a special dividends, could it be in the making given the fact that nucor is having a good
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year. >> we will keep you guessing about that but i mentioned that we had a great cash generation in the third quarter. when you look at the first nine months of 2018, we generated 1.9 billion. and of that 1.9 billion, we returned about 40% or just about $700 million to our shareholders in a combination of dividends and share repurchases, so we are returning to our shareholders. >> excellent you are a stand up guy thank you so much for coming on. always done a great job and nucor has been the best steel company in the world that is john ferriola. "mad money" after the break.
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sergeant baker, how are you? they were on it. it was unbelievable. having insurance is something everyone needs, but having usaa- now that's a privilege. we're the baker's and we're usaa members for life. usaa. get your insurance quote today. . now that apple pulled back almost 30s points from its highs. i have been so attached to apple, maybe we need an unemotional second opinion tonight we are going with a special report take a more quantitative look at the action of apple.
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her diagnosis is she thinks that apple is ready to rebound. perhaps even climbing back to new highs. now invoking the idea when comparing decline to other declines or rallies to other rallies and particularly securities if a stock has a history of bottoming, there is a good chance that it will reverse after the next ten point decline. it is something like you think a child would have thought of. but it can't possibly be that simple technicians like brodin don't claim there is some law of the universe but the fib queen has been doing this thing for 31 years and she has found that symmetry has shown up in the market a stock is likely to change
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directions especially an emotional one like the one that apple has become for example i want you to take a look at a paint company, sherwin williams, this last spring broadin predicted that it would rally. and it was perfect what gave it away, well sherwin williams had just experienced a $72 decline. so the fibonacci queen did her analysis symmetry held, that the bottom w -- stock was going to bottom. now symmetry doesn't always hold, but when it does, you can catch amazing moves. the fact is you didn't need to be i mean look at this, nice, huh big move so it is not always that simple
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many but you would be surprised often this symmetry method works. it has worked before with the stock she has nailed over and over again, apple. take a look at the weekly chart. no one else thought it that i know of. and symmetry was one of the things that told her that the stock was done going down. apple experienced a swing. so when it declined by a similar amount in may of 2016, she expected that the stock might be ready to change course we checked in with her when the stock was at 104 another dicey moment for apple stock and she predicted that apple would climb.
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apple's company is that good and apple stock reflects that. so what do we do now that it is pulling back how about we try the same thing last time it had a sustained decline. we might have another ten to 15 point downside before the pain comes to an end. she likes to measure past swings and run them through fibonacci when you do this with apple, you find two zones a potential floor of support and another one running lower from 186 to 192. she says ideally, we want this stock to hold somewhere between the first floor of support which is five bucks.
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how about the daily chart? support level in this looks different. the crucial area is 195 to 198 if the stocks falling again, that is where broadin expects supports now her methodology applies to price and time and it is the same formula she can tell you levels where the stock is likely to change course or dates all based on this past swing. when you run these past swings through a prism, she says you find a cluster of five fibonacci timing cycles all come due this week she expects apple to make an important low sometime this week and maybe, just maybe it already
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has. now before she would be a buyer, she has a trigger she likes to look for she suggests to pulling up a 30-minute park and looking for cross over she likes to see an eight period moving cross and i don't think you need to be that granular. what matters for us is that apple has a powerful floor of support. if it holds, it will go right back to rallying she thinks apple can zoom to new highs. of course if the stock breaks down be low its lowest form of support, then it goes out the window and likely, it bottoms sometime this week and then starts climbing again as for me, i think it is too
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hard to trade in and out that is not my thing given the size of the company's buy back, i am confident that apple will be buying alongside you. let's go to greg in illinois >> caller: ahoy cramer i own tivo, it is down a lot but they are still signing up partners and looking to sell the company. should i hold on to it >> you know what, i am going to say no i am going to say there are better buys. by the way you mentioned one that i like. comcast. the stock went down seven bucks
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to be able to buy. and now since rallied and the trajectory has been the stock outperforms the s&p 500. so that is my story. joe in texas. >> caller: hey, jim, thanks for taking my call before i ask my question, i want to say hello to my son at texas a & m university >> there you go. who loves a & m. what's his name, that cow, that bull >> caller: i recently just discovered it, gopro. >> the inventory is leaner, but in the end i regard that as being commodity oriented joe, we are going to say no.
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we are going to say no we like the aggies, we don't like gopro let's go to deyan in california. >> caller: i have a question about mon goob now it is back down to oh, high 76 i think it closed out today and i just wondersed is it too late to cast average. >> we like this company. i think they have, look, remember the stock is up 156%. so a lot of people are ringing the register when it comes to the business, it is strong apple is not the forbidden fruit that people think it is. the charts suggests that the
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stocks will bottom maybe this week before it starts climbing i say own it don't trade it. one under the radar company that fits in. i will reveal the name ahead i am telling you what to expect from the imminent fed meeting, it is not that positive. and all your calls rapid fire and tonight's edition of the "lightning round." stay with cramer
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now that the cloud stocks have pulled back, which of them might be worth circling back at these lower levels i have a new one, ring central rather than having a phone company wire your office, you can blow everything in the internet and it handles everything pluses the software makes it easy to log in just last night, the company reported a strong quarter.
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it 33% revenue growth. but because the cloud stocks have fallen out of favor of the wall street fashion show, nobody seems to care. let's take a closer look with vlad welcome to "mad money. thank you. >> you are really trumping a lot of the legacy providers. when i read through the documents, i saw one thing and i am going to mention a team you have to tell me what you do, i wish you could score points for them, the tampa bay buccaneers i get what ring central does. >> so what it does, is we change
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ways in which companies communicate, communicate internally with their moiys as well as their customers. and we have other nfl teams. >> you have two others. >> two others. and i won't announce the names yet. they are franchises, but also companies. they of employees and customers. and what we do at ring central is we make it easy and for modern. >> because the reason i mentioned it, tampa bay buccaneers have smart ownership. and it must be they are the most technologically inclined team from which i can tell. they are happy with retention, what is it that you know that is an improvement >> well to be, a little bit humble about, this is a brand new relationship so we hope that they will be happy with us moving forward but i will tell you what other
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companies and customers are happy with us for. >> how about financial times >> yeah. another fantastic name so what we do is different we enable companies and people to communicate the way that they want to. what does this mean? they can communicate via any mode, any device voice, video, texting, messaging, we have an open platform which means that people can enable our communications within their work flows. none of this was ever available before, before the cloud came in and we happen to be living in the cloud. >> in your documents, you talk about the competition, and one of the analysts compared to you by broad soft which i thought that was legacy. but cisco has an interesting cloud basis. >> we are winning business from them all the time. the number one provider or
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company that we replaced happen to be cisco followed by avia. >> chuck roberts is a competitive guy. how do you know he doesn't step up. >> it is a big field we are in the lead all of the legacy providers is in decline cloud is doing well and we are doing 50% better than cloud on average. >> taught me how to code and push things, now can that be a friend or an enemy >> he is a great guy so that's for sure but that aside, so what it does is they enable developers to
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voice and text message enable. what we do is we replace cisco avia, legacy software, and we replace them enabling corporations of any side from small businesses to large international enterprises and we enable them to replace things with a cloud solution. >> and dimmolo, what is that added to your business. >> it is a french company. that is a customer digital engagement so people used to communicate mostly via voice what is happening nowadays, is
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that people more and more want to communicate via other means, texting, messaging, social networks why not go on facebook, united airlines. >> total agreement. >> dim melo shaphappens to be a leader in that space. >> i am sure the people who are struggling season ticket holders of tampa bay thank you to the founder and ceo of ring central. "mad money" is back after the break.
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>> announcer: lightning round is sponsored by td ameritrade i want to invite the men and women of the armed forces to be my guest at our special veteran day show on monday november 12th. if you are serving or have
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served go to veteran's day. it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire you tell me the name of 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 is i am going to start with steve in florida >> caller: what is up with cell gene. >> it is not my cup of tea let's go to tm in california. >> caller: hi, how are you >> i am good how are you? >> i am good thank you for taking my call i want to check in with you and see about blackrock. if you look at the last two years, they hardly made 8%
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return on the money. >> i know. he is real smart i think this is a decent level to get into the stock. jeremy in aryland. >> caller: election day booyah i am interested in talking about the stock nio. >> i am not recommending any stock from china because we are in a war of containment against china. not a trade war. luke in pennsylvania. >> caller: booyah. i am calling in about the stock of hpt. >> 8% yield. i don't want to be there marriott is a great operator and that stock got crushed jim in massachusetts. >> caller: how you doing, jim. >> i will doing fine, thank you.
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i want to get your insight in atmx, athenex. they were on pace to hit first year target. >> but let me do this, i am going to have to do work on this one. that is a biotech company. and opining on it would be a big mistake. let's go to i dst vor in north carolina >> we are act active vision, and on to ttwo. >> dave in illinois. how you doing, man
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>> caller: some bumps along the way, recently an acquired canadian winter and apparel manufacture. >> i want you to stay on can na nada goose i think it is a winner and not a loser. carey in tennessee. >> caller: first time caller, long time watcher. question about arena pharmaceutical. >> that train has left the station. nope, nope, too late for that. john in arizona. hey, john. you're up. john, it is jim.
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>> caller: jim cramer. >> yeah, what's up. >> caller: thanks for everything my stock, amrn ama rin. >> no, no. this stock was at three a couple of months ago, and now it is 22. i would call us not early. and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade you s? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. ♪ ♪
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when the federal reserve meets over the next couple of days will it be a one-2 punch or a reset? despite the slowing in corporate america caused by rising transportation cost and tariffs and supply chain issues. higher ethane prices higher steel price and higher freight cost higher interest rates won't actually solve many of these problems wonder if the fed knows well-built report a sorry number last night why? plagued by the steel tariffs and transportation cost.
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let's check in how sisco how will higher rates affect them take a listen. >> we are missing about 50,000 truck drivers in this country today and that is because the job of a truck driver is less attractive today than it was years ago and as a result for every available truck there are seven available loads and that is two to three times higher than years ago and that puts pressure on the supply chain. >> every day i get the sense that there are actual living, breathing people who believe higher interest rates will make transportation go down we will still have a shortage of truck drivers. even with rates kept steady, companies will stop expanding their operations
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sure the fed can acceleratethi process but do we need them to turn a mild slow down into a worst slow down? the trade war in china is already do that. i think all of our policy makers should be focused on getting the supply chain working and yes, i know there are employee wage inflation but not that much. these other costs that are being cited. if it is because people don't want the job, maybe the government needs to get incentives to get people behind the wheel. 50,000 new truckers would do good than 50 basis we have all of this oil and gas sitting in field that don't have enough pipe, more construction
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and we can build it to markets this administration has been discouraging towards pipeline construction we have the most plentiful supply of natural gas on earth you can see it from the moon but we don't have enough infrastructure that said, even once we put election season behind us, i doubt that washington will do any of these things. stick with cramer. oh good, you're awake! finally. you're still here? come on, denise. we're voya! we stay with you to and through retirement... with solutions to help provide income throughout. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. oh. so, that means no breakfast? i said there might be breakfast. i was really looking forward to breakfast. i know... voya. helping you to and through retirement.
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okay we got a couple of real good ones tonight you know we think that jeff lawson is doing a great job. and then etsy, again with the nice beat in raise and zillow, not so hot i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you tomorrow
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lemonis: tonight on "the profit"... that's pretty good. ...a tortilla maker has overcome incredible odds... george: i mean, if this guy was a boxer, he'd be world champ. lemonis: ...only to risk it all with his reckless behavior. was there a fire here? adelo: it's not so illegal. lemonis: he cuts corners without regard for the consequences. you can't buy this machine? adelo: here, they're not so much allowed. lemonis: he sweeps serious problems under the rug. i didn't know to ask, "oh, by the way, are you getting evicted?" and now his beloved business is on the brink of failure. the place is bleeding. he owes people money. it's just not gonna work. if i can't get him to change his habits, this american dream could become a nightmare. adelo: everyone told me i was never gonna be somebody. i'm not gonna give up. i don't want to give up.


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