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tv   Mad Money  CNBC  July 16, 2020 6:00pm-7:00pm EDT

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ideas a year, that's great my one idea today is the only idea i had so that's walmart, which i really like. >> guy >> i love how happy you are when karen wins it's the same happiness you feel when i lose. fireeye i think istremendous i think it's going to test the 13.5 level. >> "mad money" starts right now. >> 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 other people want to make you friends, i want to make you money. my job is to educate and teach you. call me or tweet me. okay we needed a breather market can't go up every day
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without some sellers coming out of the woodwork which is why the dow shed now tepid nasdaq lost 3.4% twee have to use this moment to regroup and figure out the markets. i think today's action was pure profit taking. but the sellers had a lot of excuses. i any it's worth going over them in detail. it's forearmed rail recovery thesis really moderating. it might be right. it's certainly a possibility if you don't get stimulus.
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second, the reopening has clearly been stalled by the outbreaks. it's trying to get the mortality rate substantially lower than the original outbreak in new york some of that is because we've gotten better treating covid as we learn more about it, it is novel if you were on a vent lator in new york, you only had a 20% chance of surviving. you're now at 70%. you have a host of treatments you didn't have before steroids, remdesivir, blood plasma i don't want to doubt it even if more people survive, complications are horrifying nobody wants to spend weeks in the hospital nobody wants permanent or potentially permanent organ damage none of this is real nub of it's real news. it's been going on third, the trade war with china has turned into something closer to a cold war. it is chilling to see the attorney general of the united
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states attack hollywood, microsoft, apple, and google for being communist lackeys, like something out of the 1950s it seems like the white house wants to go with the '50s playbook they want to cord done off china. i've been very tough on china. they have an authoritarian government i do not like it why? because it doesn't respect its trade agreements they spent decades hurting the american manufacturers i was thrilled when the trump administration decided to crack down i'm a trade warrior, i'm not a warrior. it shows we're better than the chinese folks. still, the president increasingly seems to regard any company that does business as an appeaser of dictators. he's going after u.s. companies that are staunch opponents of the communist party. google pulled out of china years ago in protest to the
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government's suppression of free speech bill barr knocked disney for playing ball with the communist even though disney is more of an american fifth company operating on the island. bob iger has been tough on china. just read the autobiography "ride of a lifetime" and you'll know read the pro log, you can get that on amazon without buying the book that's beyond mccarthyism. it's like out of dr. strange love or something. they are a bad act they've started throwing their weight around with other governments via that belt and rote initiative i hate so much don't get me started on how they treat their own people i am glad we are taking a harder line but this naming name stuff, come on. it's america we know better to do that. it's dishardening to see the attorney general of the united states roll out a nascent black
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list companies in china make money, including apple. i want to bet against the black list apple, don't trade it on this, own it fourth worry, we have some very stretched valuations here, no denying it no one denies it too many stocks trade at sky high priced earnings priced at sales e, not multiples. they are subject to downgrades we saw with peloton. review your portfolio. understand if you have a bunch of high flying momentum, they will trade and soar and you might want to trim them. i spoke at length about that yesterday. finally, number five, we don't know how much longer we're going to be working from home. a lot of people are itching to go back the banks are reporting. the heads of the institution favor everyone coming back that's weighing down the work from home plays including the myriad cyber security. i say don't sweat the remote
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work program yesterday's big hack is going to be a boon. crowd strike, z scale, palo alto network, cramer family favorite optic. how do you approach this kind of selloff? simple look for companies with strong fundamentals and falling stocks. abbott labs reported a wonderful quarter this morning they're selling tons of covid tests. the other day pepsico posted a picture perfect quarter. morgan stanley posted a great quarter. jonsson and jonsson gave a great forecast and facebook, google, salesforce all nothing to do with china and they're doing great. estimate bump for alphabet, i think facebook is cleaning up. watch amazon the stock is down 10% from the highs though they did find a
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slew of buyers that's exactly what should happen don't let the disappointment from netflix spill over to your thinking how come i'm not worried about the pandemic these numbers horrify me i'm optimistic this is out of the government's hands in the absence of a government mask are the best way to stop a spread the absence of government sled errship, corporate america is taking action to keep us healthy. walmart, walgreens, cvs, tarlt, best buy, kroger have joined the pioneer costco, no shirt, no shoes, no mask, no service i think the severity will scare people into taking the virus more seriously i don't want it. i don't know when this all is going to end i do know the younger momentum traders who believe stocks will only go up because that's what stocks do, they might struggle a tad here i'm concerned about the companies that need capital that people are bidding up, like the
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airlines, cruise lines don't be a useful idiot. the bankers see the speculative stocks go up and they see the action and they advise these trubltd companies to raise capitol every time there's a positive vaccine story look at norwegian cruise lines which admitted it was selling. stock lost 15% the bottom line, don't panic look for the stocks of high quality companies that are going lower even though they deserve to go higher if that's too much work for you, you've got my blessing to get into a low cost index fund nothing to see here. move on. let's go to jerry in texas jerry. >> caller: hey, jim. how are you today? >> i am good how about you, jerry >> caller: doing good. thank you. general two-part question. the price to earnings ratio used to be a good indicator with 25 to 30 being about average. today we have companies with no
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profits or with tds of 150 to 300 and their stock price continues to go up i do understand there are many factors to consider when evaluating companies kbut, numbe one, are the true earnings and pe ratios still important? number two, what do you feel are the best ways to measure and select companies in this market? >> i would tell you that any stock that sells at more than a pe of 8 times sales is off limits for me. i find be that those companies are terrific companies but you can't have more than, say, about 15 to 20% of your portfolio. talk about that. you're right, much of the market is stretched but there's a lot of the market that isn't and i think that if you follow the show you know there are a lot of companies i like that are selling traditional multiples and you should have some of those and a spattering of the higher truly momentum names. let's go to michael in north carolina michael. >> caller: boo-yah, jimmy chill.
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good to talk to you this evening. appreciate what you do to help us home gamers money. >> thank you. >> caller: i'm looking to add a health care to one of my portfolios and i watched the beginning of the -- oh, goodness, go health. >> go health, right. >> caller: it went down to 18 and up to 26 is it too early to jump in there? >> i think it's a very good -- you know what, that stock i thought was kind of attractive i think that might be a good idea i bet you we look at it and it's going to do okay how about we go to max in florida. max? >> caller: hey, jim, how's it going? >> very well thank you. how about you? >> caller: i'm doing all right i'm an 18-year-old new investor. i was interested in a consumer driven tech stock that reported higher than expected earnings yesterday which is sleep number.
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and during the whole covid rise again i was wondering how you would think they would fare in the near future, the fact that people might be buying when they're not traveling? >> you know, i think the bed business has been historically a terrible business. these guys are interesting they're good didn't have as good a quarter as last year, but you know what i say? i want you to step up your game. i would rather have you be in a home depot or particularly lowe's which is doing much better, more diversified let's go to lee jo in new york >> caller: hi, jim just want to say thank you for giving the platform for everyone to wear a mask my question is on the tech company neo. the recent government owned investors for the company.
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>> but, sir, it's a dice role. it had a huge move last week, just ggigantic now i think you have to wait until it pulls back. this is the wrong level. now i have historically -- i was right about it, wrong about it right about it, wrong about it i will tell you this, alibaba is the one i've been right about all the time that's the one i think you should be in today was a breather i don't think it's a cause for panic. look for stocks of high quality companies that report numbers and then their stocks go down. on "mad money" tonight with the resurgence of lockdowns, can dominos continue to deliver? i'm sitting down with the ceo. then with new investors, i have one player that couldn't make it they made it very easy for you to get involved in this market you know i want that don't miss my sitdown with acorns first, as covid cases continue to rise, do the unnopes surrounding this market continue
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to make gold an appealing place to park your money i'm eyeing barrett gold to see if it's worth considering here stay with cramer. don't miss a second of "mad money. follow @jimcramer on twitter have a question tweet cramer #madtweets send him an email madmoney dath or call him 1-8 oof h 783-cnbc h 783-cnbc h 783-cnbc h 783-cnbc 0h 783-cnbc 0h 783-cnbc -h 783-cnbc 783-cnbc 1-800-783-cnbc
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it's gold. it broke out over $1080 an ounce. pulled back to 1795 today. i think it's worth having an exposure against the recession and position of inflation. you can own the commodity itself you canown an etf that tracks the price, like the gld. my way to track it is barak gold i started recommending this when it was trading around 13 it's now 26 and change now they just reported preliminary numbers. they're on track to hit the full year targets let's dig deeper with dr. mark briscoe. he's the bank president of barrick gold how is your company doing and where it's headed. welcome back to "mad money." >> really great to see you again. long time since we chatted. >> way too long. now i know that to do what you
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did, which is to pretty much make the quarter in an era of covid would seem to be impossible in the way mining is done, then i remembered, unlike the rest of us, this is not your first pandemic, is it? >> no, it's not. as you know, i grew up in africa as we always say, we wake up to a morning of a few crises and get a couple more in the afternoon. that's been the game >> so at the same time that you had this you were able -- you were able to help all of your employees, keep everybody pretty safe and where are things now? is everything operating as normal >> yes you know, we had some challenges in argentina, but generally our own operations are operating at full capacity. our projects are on track and in particular, jim, nevada for us, southern nevada had some real
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challenges and we were able to keep our operations running. that's 7,000 people going to work every day we have had limited number of infections it's been a great effort from management, and it also reinforces our strategy to flatten management, to get ownership in the countries and regions so that you -- and do away with the central control, as you know, something that we set out to do when we merged the two companies. >> i'm used to talking about some of the toughest areas, and you've schooled me on how to do business in west africa, for instance, or southern africa i was shocked to see how much gold there is in the carla mine in nevada. this is a gigantic field where's it been all our lives? >> well, you know, it is a -- it's the largest gold province in the world today really taking over from where south africa
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left off quite a few years ago now. and this merger of barrick and newmont has unlocked the gold belt by taking down the fences and putting the real all bodies together and it's been an amazing experience it's just been fantastic, i must tell you then, of course, the gold price has gone up, which always makes gold mining more enjoyable. >> how about copper? we have a big surge in copper. you have a ton of copper there >> yes the copper side of barrick did well this quarter as you would have seen in the preliminary results. despite their low, copper price for most of the quarter, the team did exlemt, both in africa and in in south america. in particular, africa and middle east copper operations did
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exceptionally well >> in the u.s. you were still using $1200, that's what your price had been to do your projections. is it time to move that up you've got a dividend, you've got a much better balance sheet than you had maybe things are kind of going more your way than you thought when you put that together. >> yeah. but, jim, 1200 is the new thousand i always say. that's the long-term goal price at which we allocate our capital. this is a long game, as you know you've been with me on this voyage for more than a decade now and so we allocate capital at this time we brought the debt down materially we have the strongest balance sheet in the gold industry today and, in fact, we have the strongest balance sheet in the mining industry and we intend to stay there we want to be, you know, the go to business with the best seats,
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the best people and as i always say, when you put those two together, you deliver the best financial results. >> when i listen to you now this is not something you talked about ten years ago. you're talking about the environment and how important it is now you even talked about it at the beginning of your last talk that you know that people don't like mining you're trying to explain to people that it's necessary and that you're going to do what you can to be able to make it so you don't pollute. >> exactly you know, while that was our mantra in rand gold in subsahara africa license to operate is important, whatever business you're in. we need to be more modern. the mining industry definitely needs to grow up and be more modern and we need to employ younger people and align ourselves with the expectations of the future generations. and that's my intention, my last
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stint in barrick is to really take barrick and deliver a new modern mining company that's acceptable to our future generation. >> hey, mark, 7,000 people in one place. now a lot of the factories that have just even 300, 400 people in our country, it's been tragic i've seen waves of covid why didn't you have to shut down >> well, you know, we learned this in africa if you go back to the 2012 ebola pandemic in west africa, when the rest of the world shut down west africa, it's all about isolation, screening, understanding yourself, making sure if you're symptomatic, not exposing yourself to other infected people and, as you know, we haven't got a cure for this so we've got to behave. and it's behavior. just like safety
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and so in nevada what we did is we said to everyone, look, we're going to manage our way through this and -- but it means that you are going to wear masks. you know, these masks on your face and you're going to do social distancing and we're going to be careful about how we feel and if we don't feel well, we're going to isolate, self-isolate we're going to trace everyone that you've come in contact with and we're going to ask them to isolate as well. in the peak of the exposure in the u.s. we had nearly 600 people isolated. we are now down to early hundreds and we've taught our people to manage that. we're doing the same in africa, jim. you know, africa's a bit behind the developed world, but, again, we are managing our operations and that's the way you can get back to the new normal be aware >> all right i'm glad that you said that because i know that you're a
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tough guy. you've told me that. and you know how to deal with these situations, and i think that you wear a mask hey, america, if he wears a mask, you can wear a mask. mark bristo, barrick gold, go g-o-l g-o-l-d. thank you, sir >> back after the break.
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on all 2020 lexus models. experience amazing at your lexus dealer. earlier this week domino's pizza, one of our new faves broke out to a new high, 400 bucks. we've been recommending this stock since it was at $10 roughly a decade ago 10 to 400. this move was totally gettable they come on the show like clockwork. they have a good story every step of the way. i've urged you to buy the stock a dozen times. dominos has spent the last ten
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years building out an amazing online platform. they pioneered the delivery business takeout and delivery are the only way for restaurants to reliably make money. domino's is perfectly positioned for covid-19 they are practically printing money. we're talking about a monster earnings beat. 299, street only looking for 244. magnificent 16% savings to sales growth in the u.s. at first the stock surged to 422, then it gave back all of the gains. people decided to ring the register i this i a pull back was inevitable which means this could be a buying opportunity but do not take it tome. let's check in with the ceo of domino's pizza get a better sense of the quarter and his company's prospects. mr. allison, congratulations and welcome back to "mad money." >> hi, jim thanks for having me back on the show. >> rich, people looking for 13% comp store sales which would be hard to get. you come in at 16% judging by how the quarter
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ended, they may even have been stronger, correct? >> jim, we had, you know, strong sales that really began to pick up, you know, around three weeks or so into the second quarter and then really sustained all the way through the end of the quarter driven by the delivery and carryout business. >> i know you have tremendous business you could tell who were the new customers and carryout. >> we do we saw very strong increase in customer acquisition in the delivery business. not surprising as customers are looking for a contactless experience, staying at home, and we adapted very quickly all of our operating procedures to deliver that safe and reliable experience to our customers.
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so great acquisition and also terrific repeat purchases among our delivery customers as well then on the carry outside of the business, you know, little softer on the acquisition. very strong on the retention you know, customers in the early part of the pandemic, very reluctant to go out of their homes and into places of business so we've been innovating there as well, jim, with our domino's car side delivery to draw more customers into that part of our business as well. >> artificial intelligence for voice for the remaining people who still call it's more than 2/3 digital. >> yeah. we're up to 75% now consistently digital in sales and we've had weeks where that's been up as high as 80%. we do still have some customers that choose to call us and we're continuing to work on our ai engine, you know, to deliver that voice ordering experience also answer a lot of phones in the stores as well, jim.
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>> ritchi i was di, i was one disappointed by one of your pieces of your call. i like your wings. what are you going to do to make them better? >> if you liked our wings before, you're going to love our new wings. i think you're going to sfiend the taste and the texture are even better. the new sauces we have are just terrific and i'm really excited about it. it shows the culinary team isn't focused on new products but also focused on existing items on our menu and how we can make it better the real winner out of this new wings offering is that we've got it on our $7.99 menu 10 piece offering at $7.99 which is a terrific addition to that value platform. >> you're making a pretty big investment and it's an investment in china. people are looking at franchises can you address how strong the
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franchises are financially and why you want to invest in a country rather than do a franchise? >> sure. the first part of your question is we look across the country and around the world, we've got a very strong and stable franchisee base. in the u.s. we exited 2019 with the highest levels of ebitda, $129,000 in the store. very strong and stable there as evidenced by the fact that we only closed one store in the u.s. during the second quarter international side of the business we're fortunate to have some very well-capitalized international master franchisees. we looked at china it's a market we've been looking at for a long time terrific leadership team just passed 300 stores we saw a great opportunity, jim, to make an investment on the part of dpz and to work side by side with dash brands, our partner there, togrow what is going to be an incredibly
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important market for domino's in the years to come. >> terrific. i know you never speak ill of competitors. that's terrific because you're a gentleman. you have to recognize that a lot of places that sell pizza have seats in the restaurants and they have takeout. those places have to struggle if not close. i know that because that's what we're doing in my own restaurant is it not a great help to you in the end that a lot of the unfortunate spool guys won't be able to make it in the restaurant so they can't do any takeout or delivery. >> jim, i sure hate to see independent restaurants close. you operate them i frequent them often but i think the reality of this situation that we're in is that the businesses that have performed best during this pandemic have been those that already had a strong digital presence, which is how customers are choosing to order, and then, secondly, had a very significant off premise business, whether that's delivery, carryout, drive through, et cetera and i think those businesses
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that were dependent on dine in are just really struggling if you didn't already have a good digital presence, then your only option really is to pay significant fees to third parties to bring your orders >> right. >> that really crushes some of the economics for some of these independents. >> i'm so glad you pointed that out. i can't leave you without mentioning ten million slices. seems like you're doing something terrific there. >> we're trying. it's been a real privilege to remain open and serve our customers. we and our franchisees have partnered together to give pizzas away to folks in need, to first responders, to kids, to a wide range of folks that need to be fed at this time. we've also been able to provide thank you bonuses, you know, to our hourly team members in our corporate stores and supply chain side of our business i think dominoes always rises to the occasion when it's time to
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give back to the communities, and i've been so proud of our franchisees and teams. >> you should be congratulations. amazing quarter. now double it's been a remarkable run ritch allison, always good to talk to you. >> thanks, jim. >> "mad money" is back after the break. ♪ ♪ now is the time to support the places you love. spend 10 dollars or more at a participating small business and get 5 dollars back, up to 10 times with american express. enroll now at
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for the first time in 20 years we're finally seeing waves of new investors as young people get excited about the stock market it's an unambiguously good thing. i wish people would spend time training them. when you're first getting started you don't actually need
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to do that much. all you have to do is put some money away in a low cost index fund quality individual stocks. bit by bit over time it will add up which brings me to acorns, the private company which is the fastest growing financial wellness company. this is brilliant. you connect your credit or debt cards to your acorns account every time you buy something they round up the purchase to the nearest dollar and invest the spare change in a diversified portfolio of stocks and bonds to your suiting. if you are the kind of person who has trouble saving, this is great. i'm co-hosting a live town hall with acorns. invest in you, ready, set, grow your future to help regular people deal with the current crisis nbc universal and comcast adventures are investors in a cosh let's sit down with noah kerner.
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he's the ceo of acorns how they're helping people cope with the pandemic and the recession. welcome to "mad money." >> hi, jim thank you for having me on i appreciate being here. >> i have to tell you, acorns is very exciting. i'm going to give you the floor. how did you get involved, why? >> i'd love to tell you a personal story my mother who is no longer here used to watch your show religiously. she was very sick for a while and couldn't really do a lot of things so one of her daily delieds was being able to watch this show every day. you don't obviously know my mother, but it was very unusual for her to be watching this show because this was a woman who my entire life tried to teach me not to go into business. here she is watching the top show in business it really is an honor to be here and i also want to say i know it would be a real honor for my mother. >> oh, i wish i had met her. sometimes, noah, this job is
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long day, you're thinking is anybody watching i hear a story like you told me, i've got to keep doing this thic thing. i'm doing it for your late mom. >> that's great. >> you are getting people to start saving early she will be very proud of what you did. this is something we've been preaching for 15 years. >> totally acorns, what it does, it makes it easy and automatic to save and invest in the future you can save and invest spare change what we're best known is rounding up every purchase to the nearest dollar we automatically invest into a diversified portfolio. you can set it up. it's the easiest way to invest in kids. it will invest in front of kids. when you move your paycheck over to acorns, we automatically
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allocate into investing in retirement accounts. we make it easy, make it automatic and take the guesswork out. >> this is completely in sync as you, your late mother and i know more than 7.7 million accounts are people being serious are they doing the maximum that they can do? because the power of compounding if you do it right will take care of a lot of investment. >> that's right. so we try to get people to really commit to regular small amounts and so they are. so they're committing to the spare change we've got 2/3 of our customers doing an automatic recurring investment, meaning every day, every week or every month you're contributing something automatically and regularly. we know through the power of compounding like you said, this adds up over time. with acorns early, which we just launched, which is a product where parents can invest in kids if you do the math on $5 a day
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beginning at birth, by college based on historical averages in the market that can add up to $70,000. by 50, a million and by 65, over $4 million so it's really powerful. we are seeing people really commit to this >> our nation is not good savers obviously with this many people involved you have found a creative way to do it. i bump into people all the time, not just here, almost everybody invests in acorns. who don't know comcast is a player with acorns i found a way to save. i've never been able to save it's almost as if you have made it fun, which i know it typically isn't fun. >> yeah, i think so. so the experience of acorns is you see when you get started, you start to see the money add up over time every time you come back if you are using the product regularly, you see that money grow. that really encourages people to become savers. like you said, it's a really big
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problem in the compauntry that people aren't saving parents investing in kids, that's a major problem 50% of our parent customers are not saving for their kids and over half of the parents that are saving for their kids are doing it in accounts so it's exciting to see this momentum where people are starting to participate, people are starting to take care of their families in a new way. we make it so easy and we condition people to become savers >> i look on the app mutual funds what i like so much is the suitability that if i have -- if i were much younger i could take more risk. you have terrific portfolios designed by a nobel laureate that is the way to go. >> it's diversify portfolios and etfs it maximizes opportunity we try to minimize risk. this is about the lodge term,
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right? we like to say investing is a marathon, not a sprint >> there is something i do want to talk to you about, i need your advice. i'm trying to get people to invest young you're trying to get people to invest young people get mad when i say there is a wild west of trading and i don't want them to do it jim, you got wealthy you should give us a chance to get wealthy. i'm more speaking about perhaps there are other ways i don't want people day trading all the time, only if they want to how do i do it, noah how do i convince people there are other ways other than buying speculative stocks trading? >> we all like to have fun i like to talk about, you know, you go to whole foods and you eat healthy, every once in a while you like to have a coke. we all like to have fun and take risks. i don't think there's anything wrong with buying individual stocks and doing that with a small portion of your money, but for the majority of your money, if you're talking about a long-term plan, building a nest egg for your family, you want to be in a diversified portfolio.
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less risky it adds up over time and the power of compounding when you let it sit there, there's nothing like it. >> good. i'm going to be quoting you. i don't like to take the heat, but i know you're right. i think acorns is a terrific product. congratulations. thank you for a very hard warming story about your mom i love to hear that. that's noah kernen do not miss tonight's town hall, invest in you, ready, set, grow with you he and i both agree there are other ways to get a little bit better to make money that's what we care about. "mad money" is back after the break. you can't predict the future. but a resilient business can be ready for it. a digital foundation from vmware helps you redefine what's possible... now. from the hospital shifting to remote patient care
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it is time it's time for the lightning round. then the lightning round is over are you ready, skee-daddy. john in ohio john >> caller: greetings, cramer, from akron, ohio. >> love akron. firestone. what's up? >> caller: hey, man. i'm in health care and i love their products what do you think of teledoc, tdoc. >> it's one of those companies whose valuation has completely gotten stretched that doesn't mean to sell. i would prefer to see it down 10% from its high before i would pull the trigger that's one of my rules bob in illinois. bob. >> caller: big chi-town boo-yah! >> everybody loves chi-town. they never leave what's going on? >> reporter: jim, i recently took a position on payment
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solutions west i know they focus on solutions and it's been a bumpy ride ever since. is it time to double down or cut and run? >> i would stay long it. i thought it was a little fatuous. we had the ceo on not long ago let's go to rob in new jersey. rob. >> caller: jim, first time caller, probably your number one fan from south jersey, cape may county beautiful ocean city quick question what is your thoughts on boeing? i'm having some concerns i'm a little bit long. i'm about 12 months down >> first of all, dry town. always love that boeing is a company that is going to be, i'd say, 25 down and 150 up when they get this thing approved and a vaccine occurs i like that. notice i said it occurs. it gets done i think they're in good shape. don't double down. my biggest fan.
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regina that was my biggest fan. okay so i need to know, scott in colorado number one scott. >> caller: i had an urge to buy coca-cola call from january at 50 did i make a mistake >> probably. why would you do calls on a stock 50 got a good dividend. just own the common and reinvest the dividend didn't mean to be mean i'm not mean let's go to mark in virginia mark. >> caller: hi, jim great big boo-yah from the big beautiful commonwealth of virginia how are you? >> i'm from the commonwealth of pennsylvania i'm one upping ya. i'm doing well what's going on? >> caller: i wanted to check in on fireeye i know you had kevin mandy on "mad money." i wanted to get your take on fire eye. >> the stock barely rallied today. 3% twitter hack was very bad.
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we have to go back to the well say it's palo alto, crowd strike we like those more we like z scaler more. they're just proof point they're all better than fireeye. michael in minnesota michael? >> boo-yah, jim. and all of the hard working staff on "mad money." >> best staff. >> caller: on behalf of millions of like minded people, i want to have the gratitude of the next again mask >> thank you, man. >> get involved. over 200 people. 200 groups have already gotten signed up. we're winning. what's going on? go ahead >> caller: hey, jim. how you doing? eric from miami. boo-yah. >> oh, eric. okay boo-yah. didn't miss a stock there. what's up? >> caller: i'm a first-time caller my birthday. >> happy birthday!
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>> caller: looking forward to doing some fishing this weekend. >> you and me both i'm going out saturday morning going for fluke. >> caller: well, if you -- if you give me some advice on this stock, i'll give you some advice on the fluke >> sounds fair >> caller: okay. it's the symbol ng -- >> i know ingevity, it's a plain old industrial what do you want to do with the fluke? and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade ♪ ♪ ♪
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every earnings season, everyone, we reach a point where there's too much information becomes impossible to process. stock market gets very gettery individual stocks leads the way to buyer's remorse or selling the way to seller's remorse. normally it takes a couple of weeks to get there this time it's only be a few days in earnings season and it's already happening. yesterday united health put up just a terrific number they saw the health insurance stock rally. but management was its usual conservative self as i predicted and the stock slumped closing down four bucks. this morning unh got multiple price target boosts and the stock rallied more than $3 a classic case of seller's
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remorse. i don't think -- by the way, i do not think it's done rallying. it was that good a quarter we saw the same pattern with the stock of jpmorgan. fantastic stock on tuesday then as the comps call droend on shareholders started worrying about credit losses and the stock gave up most of the gains. jpmorgan went back up and buyers came out of the woodwork it finished higher again today despite the overall decline of the stock market most of the time price target boosts aren't that important when a rash of analysts raised numbers after a good quarter all at once, you tend to get a very positive reaction. so if that's the pattern, what could be the next united health group or jpmorgan? easy just look for stocks that did nothing after the underlying companies raised their forecast or went down abbott labs and johnson & johnson both reported truly amazing quarters this morning. in fact, abbott gave you one of the biggest beats of this
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reporting period their diagnostics business grew 7% organically driven by 240% increase for the molecular diagnostics unit because they make coronavirus tests you got a popular blood sugar monitoring device. abbott says covid testing could be a 2 to 2.5 billion wi$2.5 bi billion dollar business this year they've sold 40 million tests and just getting started they think they can earn $3.25 when the analysts were only looking for $2.86 yet the stock didn't rally on the news tomorrow i predict multiple price target boosts like we saw with unh and jpmorgan. how about the medical device business they were supposed to get obliterated as the pandemic forced people to perform non-emergency services that division did better than we feared j&j was able to raise the forecast
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covid vaccine is entering human trials and it could be in phase three by late september. they will be studying the demographic of 65 and older, that's fantastic not because i'm in that demo, the smaller players like moderna, leading the race. that can't duplicate j&j's manufacturing center johnson & johnson knows something which is why it rallied near the end of the day after wallering in the red i think they're in the position now. the company didn't pound its chest. management is pretty nonpromotion nonpromotional i bet the analysts give them all the promotion they need tomorrow price target boosts can save everybody. if there's a big rotation out of covid stocks, people are fleeing frantically will fall on deaf ears man, when a company raises the
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forecast after a great quarter and the stock goes down, that's an opportunity to pounce stick with cramer. (gentle music) - [presenter] stand up if you are..: (audience applauding) (dramatic music)
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i will tell you this. southern new hampshire university can change the whole trajectory of your life. in a highly capable lexus suv at the golden opportunity sales event. lease the 2020 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer. coming up next is something you need to be part of cnbc's special town hall, invest in you ready, set, grow your future hosted by my friend kelly evans and yours truly featuring suze or mon, gary v and more. right here on "mad money," the special starts now m mon, gary ve
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right here on "mad money," the special starts now o mon, gary ve right here on "mad money," the special starts now n mon, gary ve right here on "mad money," the special starts now mon, gary v ae right here on "mad money," the special starts now , gary v and . right here on "mad money," the special starts now this year has changed us challenged our resilience. tested our hope. but today we reset, navigate our way through the economic uncertainty to redefine this moment with courage we empower ourselves to restore our financial dreams


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