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tv   Mad Money  CNBC  January 22, 2021 6:00pm-7:00pm EST

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future with renewable energy call diagonal spread. >> carter? >> apple poised to break out. >> mike khouk. >> new traders think about five rights. >> does it for us on my mission is simple, this make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i prom mise to hl 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 make you money. my job is to entertain and teach. call me 1-800-743-cnbc or tweet me @jimcramer. how is business holding up not talking about how covid is affecting the economy or the boss moving for another stimulus
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bill the dow shed 179 points and the nasdaq inched up .09%. i want to take the temperature of real companies to see how they're handling one of the strangest moments i can recall we're going to find out next week when we hear from some of the most important companies in america. ibm reported and dented the dow but not the titans of tech they used to be these days they're fighting for relevance. so what is my game plan? well, we had a mini rotation into the consumer package goods name, a slowdown every time we see oil tick lower we'll see if the rotation continues after kimberly clark reports on monday morning. the last quarter was bismal. can kimberly clark turn things around stay tuned johnson & johnson, not only do i expect a fabulous quarter but leg on the clinical trial of the century. their one and done vaccine
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candidate that could take this country and make it, well, let's say back to somewhat like it was. next, you know what is quietly moving up? the left for dead general electric why? i think it's because the ceo has totally gotten his arms around the company wind mills and all even that division is doing well if you believe as i do travelers will fly again once we beat this virus, this is for you speaking of travel, there is lots of chatter that american express could have a terrific quarter despite the lack of corporate travel how the stock is trading maybe it's another one that will go back. i know everything in 2018, 2019, i don't know that stock is acting well. how about dividend 3 m this is tougher. 3 m has potentially major pollution related to liabilities ground water pollution that could hit harder now the business is improving and if not for that liability, i think the stock would be much, much higher let's see if management can
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convince us if the market is out of proportion. by the way, that's what dupont did and they were right. after the close we hear from a trio of great expectations, stocks, business average there is microsoft and starbucks. we own all three you can see the moves before we make them by joining the club. let's talk about these i think intel's disappointment last night could be good news for arch rival amd because amd has been a better job of breaking into the hottest categories with its chips that intel has fallen behind. i'm predicting a blowout they are still buying zylink microsoft is quiet in recent months but the business is amazing. for starbucks, i worry because the stock had a tremendous run that's not a sign of the turn in the quite. you have to wait to buy starbucks until after they report maybe it trades below 100. i don't know wednesday macro and micro news with fed chief jay powell
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announcing any potential policy changes, probably none i bet it will keep rates unchanged because he wants to stay low long, maybe years but that won't stop experts from offering bogus things that will confuse you and make you sell things you shouldn't let's hope they scare people into selling you know why that will create the buying opportunities that we want in some of the terrific companies we're talking about reporting on the same day let start with boeing. the 737 max is airborne and orders are trickling in. let leave it that way. it's too soon to expect a great quarter because the airlines are in survival mode that said, for months the chinese government is parsing every word from joe biden's team and if the administration lowers the temperature, china will respond with massive aircraft orders they need planes but i suspect it won't be long abbott labs reports they are working hard on covid-19 testing although they have yet to really
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mass produce the cheap at home tests that the fda proved that we all really want right? we want a test that we check every day so we don't go to work if we find out we're sick before we infect. abbott will make it's name known with the blood sugar monitor we hear from apple, facebook and tesla. facebook -- f-a-t. i feel like they are bunching up on purpose to make my life difficult. you can't focus when they report at the same time and jimmy chill likes to focus i bet apple -- i think it will be incredibly upbeat about the entire product line, not just the iphone 12 that does take remarkable pictures. they are cleaning up thanks to the stay at home economy and streams could keep going and one wild card is currency. apple left so much money on the table but the green back got much weaker this quarter that will matter you don't realize it but that will be a major change i'm expecting an amazing quarte from facebook.
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i'm probably the only one that is so many small and medium size business rely on them for advertising. it will be the real deal if they say anything, i think the stock can challenge new highs. they tend not to i don't mind the calls it political for tesla, the conference calls used to be -- it was top tier entertainment. it was fallon, kimmel, worth kimmel but if they don't get too bored, you'll hear fantastic commentary to go along with fantastic numbers. tesla is doing well. we can piece it together thursday morning we get results from mcdonald's, which the analysts have been dumping on. they like chipotle i don't blame them chipotle and mcdonald's one man's opinion. right now mcdonald's is trading like a quarter would be a bad one. it's too negative. mastercard and visa reported we own mastercard for the charitable trust i'm concerned paypal might be
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eating the apple from their lunch. we're sticking with it because apple can tell a tremendous story once cross travel comes back i gave you a basket of 5 g stocks including sky works solutions that makes chips for smart phones they report on thursday night and i'm telling you, i think they will be a blowout and you don't need to worry about the chinese exposure because you're not going to see trump tweet that says my good friend xi, i hate you not this year. we got honey well, chevron, caterpillar and eli lilly. social distance these reports. i expect good things all four honey well has a new building solution as the service business model. their intelligent warehouse division is amazing. air space division isn't ready to roll but it will be good once we get herd immunity i think honey well is fantastic. caterpillar is a quandary for
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me there is hope for big infrastructure and better relations with china i miss this move i shouldn't be able to opine on it because i left 60 points on the table. oil has been on a roll it's good for cat worth owning chevron up here. you know i think the world of chevron. mike worth is really the big guy other than sheffield and the group. most of the oils are investable but chevron and pioneer are exceptions eli lilly ramped up so much on vaccine hopes the stock may be due for a breather they're using a drug that they hope seems like it wards it off but remember, they are trying to be more therapeutic. the pipeline is spectacular with drugs and why are people buying it story, alzheimer's, yes. any more commentary on alzheimer's, biggest unmet need will move the stock to ten i know many of you will be caught up in the nitty gritty of biden's stimulus push.
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that's not a side show it could make a huge difference for the host of industries from retail to auto makers from used cars to dollar stores. let me give you the bottom line. next week keep your eyes on the prize. companies for great earnings when the stocks are knocked down to unreasonably low levels that one day may no longer be front and center i need to go to dave in my old home state of pennsylvania david? >> caller: jimmy chill. >> yo, chill man in the house. >> caller: all right so since last spring, you have been very bearish on this stock. and for good reason. both you and i have been burned by it once before. but given theimpending reopening of the hospitality sector and a biden administration friendlier to china, tyson foods is off the 52-week high by 27% and a p.e.
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ratio around 11 and yields a healthy dividend of 2.67%. do i have horse sense? is it time to buy tsn? >> you have horse sense or horse meat is the problem i think tyson is the right play for all the things you mentioned but they have systematically dropped the ball i'll give them this. the stock does do well in the 666 660 -- 60s i like your thinking i didn't want to look back but everything you said, sir, is true david in pennsylvania does indeed have horse sense. can we take brian in new york, please, brian? >> caller: jimmy chill big boo-yah to you from long beach new york. >> long beach. i'm here i'm in some part of some county, jersey some county that doesn't have vaccines i'm in a vaccine-less county. >> caller: same, man boot barn, i bought it after you
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had jim conray on. i've been enjoying the ride and they report on monday. your thoughts going forward? >> we caught them and last time dropped 30 i don't know what they were doing down there matthew, the best in town. the goat of the group from j.p. morgan said jim, this is going to be a great quarter. of course, it was. you know what? i think it will be again those guys are money they are money they're not kathy wood, okay right? okay all right. look, next week i want you to keep your eye on the prize "mad" tonight as e commerce sales continue to surge, i'm under the radar way to play the trend that's environmentally friendly and i know you want that i'll reveal the name when i sit down with the ceo and ark investment was one of the fastest growing fund managers in 2020 but could the rapid rise in popularity of kathy wood's group continue well, i don't know and how about the covid-19 pandemic it's impacting regional bank or
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not? i'll sit down with the ceo of first horizon. inexpensive stock. 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 email to or give us a call at 1-800- 743-cnbc miss something head to and in an emergency, they need a network that puts them first. that connects them to technology, to each other,
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it's your wireless. your rules. only with xfinity mobile. the pandemic created housing, auto, remote work, e commerce but quieter ones like the bull market and packaging. when the country is ordering everything online, you need a lot more boxes
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hence the big gains international paper or west rock had not been doing well but now they are doing let's just say doing bullishly. the best performance of the group is rand pack holdings. when covid crashed the stock market in march, they plunged to $6 since then the stock came roaring back to 17 including a 12% gain today as wall street realized the business would be a huge winner. so can this thing keep running after making a new all-time high today? let's check in with the chairman and ceo of the holdings to get a better sense where his company is headed. welcome to "mad money." >> thanks, jim, great to be on. >> omar, let me tell you something. you're one exciting company. first time on. you have an amazing story. can you tell it to the viewers because i think they will say this is the one i want in this group? >> yeah, absolutely. we are a 4r5ed leader in
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environmentally friendly packaging so we help companies ship products and protect the items so they arrive at your doorstep damage free we're 100% paper and fiber based so we have no exposure to plastic sustainability is at the core of what we do our model is razor, razor blades so we provide protection for the items being shipped in the box and the customers buy the paper from us. in addition to our core business, we also have a business that automates all of your end of line needs so we work very closely with e commerce players and retailers to help them ship more boxes to their customers. >> do you do packaging for many of the big e commerce plays in the united states? >> we do so roughly 50% of our business is in the united states and 50% is outside mostly in western europe given
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sustainables e commerce players, third party fulfillment players and the big retailers so names like amazon, walmart are customers of our product. >> let me ask you, we order a lot from amazon. my wife is always picking up the box saying look at this. we got this little thing of vitamins and they use this giant box. it such a waste. ranpak has a solution for that, don't they >> we do we want to be an efficient provider of protection to these i stems so shipping a big box wt a small item and a ton of paper or plastic is not what the consumer unpleasant unboxing experience and terrible for the environment so we have equipment that customizes the size of the box to fit perfectly with the item being shipped and use
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sensors for our converters to dispense the right amount of paper so that it's not over packed the secret is not to under pack so the item arrives at your doorstep but over packing is not what the consumer wants and certainly not good for our planet. >> omar, one of the things our younger viewers insisted i ask about, i actually know there is places where plastic does well but the younger viewers don't want plastic are there things in your pipeline in your people's engineering division that say we can replace or displace even more plastic in the following busin businesses >> we do so we're focussed in example to replace styrofoam or eps that lasts for 500 years plus and we're helping grocers, food and beverage companies, meal kit companies ship items
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while map intaining the temperature using renewable and curb side recycleble paper we're investing a lot to make sure that thef effectiveness of paper and product is broadened to replace styrofoam and bubble wrap no secret it's a key issue and given the nature of our substraight, we feel we have a lot of echo friendly solutions for the consumer out there. >> push back a little. the people that mike styrofoam and bubble wrap told me jim, this method of making you love paper so much uses far more energy than you realize and requires a lot of trees to be cut down you're using recycle but how about this energy issue. did the plastic people have a case here against ranpak
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>> we have been investing in innovation to useless paper so we've come up with products where the path comes out in a triangular shape inside the pack is air so there is less paperweight if you will, less energy being consumed. the secret sauce in our business, jim is high strength light weight paper we don't use a lot of energy and fossil fuels and gas emissions are limited. let me talk about our supply chain and paper. every mill we work with is certified. we only work with people that are doing sustainable foresty and the bulk of our product is actually recycled paper, not virgin paper so we're very focused on being part of the circular economy, which is just very, very different and has a
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stark contrast. >> so glad you came on the show. so many first-time investors want to do good and invest with the right companies. as someone who came from a packaging family, ranpak sounds like a good one to own omar, chairman and ceo of ranpak, great to meet you, sir. >> thank you, thank you, pleasure. >> i didn't know until i interviewed him until i researched that it could even be the case isn't this the way we want it to be omar, yes, ranpak, pack. back after the break
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here is a good one what happens when everybody decides to immatate, mimic,
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kathy wood and her team with family of funds including seven exchange traded funds that are suddenly wildly popular. ark invest is unique not just because of their incredible performance but because they're focused like a laser on disruptive innovation, disruptive list like at cnbc these guys are the uber dis disruptor investors. it's not disrupting, they're not interested and that's why, by the way, we never profile managers, ever have we ever done that this time we have to disruptors make money. kathy wood started this business in 2014 and the last fau ew yeas she had one gigantic win after another. she's best known for big bets on tesla, on bit coin back when those were extremely contrary on calls. it's hard to remember but two years ago was hard for tesla there were times you couldn't find anyone other than wood and ron baron who liked it, but she
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and her people came on cnbc time after time to make the case tesla has way more upside than anyone gave them credit for. she and her team was mocked mergelessly because their long-term price target seemed upbeat back before the 5-1 split. wood loved to say tesla was going to $4,000. post put that 800. they said she doesn't know what she's doing and just a type. guess what today tesla closed at $846 so who is crazy now? spectacular call not just a couple big bets kathy wood has a stunning overall track record her flag ship actively managed etf soared 150% last year fueled by powerful disruptors roku, teledoc, zillow and tesla are great companies. all huge gainers
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her second largest etf, ark genomic revolution up 178%. her third biggest fund ark next generation internet jumped 154%. these are staggering numbers i can go on and on f fin tech etfs are up up 144%. these are staggering ark investors practically are printing money and so are those accolades who follow her think of the only one she doesn't own is game stop so it makes sense that ark's funds have seen huge influence and everybody is watching kathy wood like a hawk they have become a required bull let on wall street 401, i get it. wow. what did she do today? after the close i checked the short range oscillator and took a peek what kathy is buying. it's like looking at the nfl
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draft before it occurs but it's now gotteni to be the point whee some people said wait a second, the kathy wood phenomenon is having a real impact on the border market. that's what i meant when i said things start to get weird when everyone tries to be like the woman with the mitis touch 3 billion in assets spread across more than a half dozen funds. by late october, they had 17 billion. a month later, 24 billion and 34.6 billion and roughly $47 billion today. now some of that is because ark owned stocks that are performing incredible most of it has to do with new money coming in. last month, ark had more than 8 billion in influence across the seven funds. so far in january, they have 6.7 billion with the bulk of that split between the flag ship ark
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innovation etf and genomic revelation she puts more money to work every day in the same names with a lot of capital but loats of stock to buy money going into etfs behind van guard. they are getting more shares the power house is the pass investing who must be looking saying we got to own ark invest when an actively managed fund gets billions of dollars, they have to figure out where to put it so far they stuck with the game plan good i don't want any sort of trend that goes away from her plan they continue to buy innovators a mix of speculative stocks and fast growers no drift here. however, yesterday baron published a piece arguing their funds may have gotten too big for their good it tougher to amass a meaniing stake in the companies and you
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own a massive percentage of the share count. i don'teven know if she should actually publish what she's doing or maybe give it a delay because there is too much front running which brings me to the second story so many smaller players are following kathy wood's every move it warping the action when ark invests buys something new, tons of younger investors on robinhood follow them into it creating a self-fulfilling rally. they want to buy what woods buys and now. robinhood and merrymen is having a ball inmabeing like kathy woo. i'll walk you through zoom video on a three-month losing streak because traders want it to ring before everyone gets vaccinated. makes sense. last tuesday they plunged to $331 after the company announced $1.5 billion secondary offering but the stock found its footing in the middle of the session and
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finished up 5% what is going on here? i couldn't find a reason until that night when we learned that a ark had made a massive buy and rebounding because we know that kathy wood put in the bottom nothing wrong with that since i think she's right about it even after we beat covid, we won't forget everything we've learned and zoom has new products. i think it's a winner. you're welcome on the show any time you want but it doesn't stop piggy backing you have traders trying to front run ark as i mentioned earlier kathy wood and her team are launching a new etf focused on space exploration. stocks soared higher in the expectation ark's etf will be a buyer and toss it to the eft the tourism play saw the stock jump 20% similar moves in technologies,
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orb com because the find might be interesting the fund doesn't exist yet these trades feel like a recipe for disaster all told, these five space stocks are up 29% on average year to date and makes it tough for ark to get a good entree point once this launches because everybody front run kathy wood and wood and her team are coming under fire for all sorts of people coming on and say that frog -- people are like frogs that boil because they are buying stock or whatever people get nervous when they see a fund with incredible performance. baron's piece yesterday made good points. can't manage 47 billion the way you manage 3 billion the spectacle "wall street journal" that compared ark to one of the hottest mutual funds. after racking up huge runs on cisco and aol, the .com pub ever bubble burst
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i don't know if it's comparable or not i don't think ark is the next janice that would be too harsh. i wouldn't count on them to deliver all inspiring returns year after year after publishing what they are buying don't get me wrong, kathy wood is legitimately brilliant but she and her team have to find new winners and it's harder to find them and buy those stocks at reasonable prices because there are so many copy cats and look at wall street bets, they keep taking and taking they will take her for pounds here and game stop and do amc now and have bed bath and beyond and if you want to buy them, forget it. the biggest risk is the lack of diversification. the stories tend to trade as a group. the market lost momentum so they are doing great. here is the bottom line. kathy wood and her team at ark
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invest, my hat is tipping to them they absolutely deserve all the praise they're getting we'll continue to follow her like a hawk. that said, when i see so many copy cats trying to i'm ma tate, it makes me nervous. wait until you think enough is enough but remember, it sure isn't yet. let's go to john in minnesota, john >> caller: hey, jyo, cramer, ho are you? >> doing well. how are you, my friend >> caller: fantastic i'm calling to ask about ticker symbol riot. you know, if crypto currency keeps on, what do you think? >> they are an an similar rely on bit coin. the best way to play bit coin is bit coin that's how we do things around here kathy woods got the mitis touch.
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she and her team made incredible calls and deserve the praise i think i got her bulletin and look what they bought today. she's been like bristol yers much more "mad money" ahead including first horizon after earnings what does the report signal for the rest of the players? the market of stocks is acting like the market of stocks. i'm going to explain why it a refreshing change and all your calls rapid fire in tonight's edition of the lightning round is stay with cramer. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions
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say far this earning season we seen bank stock sell off bank
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stock. a region favorite, one of the largest players in the south and this morning a clean top and bottom line. in response to the stock rally at 1.5% might not look like much but change from the post earnings action from the rest of the group. this company had a rough year. they got clom bbered this is up 57% since we lost spoke to the ceo six months ago. investors crowd into the reopening plays well run let take a closer look with brian jordan, the president and ceo of first horizon who comes to see us whether the market liked the quarter or not welcome back to "mad money." >> thank you thanks for having me. >> brian, i got to tell you. one of the pure joys i have is your conference calls because you tell it like it is and you said and i'm going to quote you, that things would be a lot better if the rollout of vaccines would not have been woefully inadequate. right there, you're telling us that that's what is stalling the
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economy, isn't it? >> yes absolutely vaccine rollout, i think, is the key to everything over the course of 2021. >> do we have to all get involved in this first horizon maybe connect with some of the sports teams, get the stadiums because i think you and i maybe we're not as fond these days of how the government rolls things out. >> well, i think that you are making a very good point i think we all have to be involved in our case ourbankin franchise is spread over 11 states and if you look at the entire company, we're broader than that. we're working with trying to coordinate with the various states that we operate in and trying to do what we can with work and health care providers, working with states to make sure that we provide access to our front line people and to our bankers as soon as the vaccine becomes available for us. >> so you personally get involved you make calls to get this better >> yes absolutely i've had calls with governors
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and leaders and health care systems trying to figure out how it is we pull this off in such a way we're not jumping the line in any sense but in a position to make sure that our people are protected and every other business leader we want this done as quickly as we can and get this economy back to health. >> that's what i think private public partnership has to happen now, you made this acquisition and i loved it i love that and my daughter wen to tulane. you have a tonof exposure to a market the hottest in the country to the oil and gas market it's come back in the time since you closed on this how things going in that area? >> things are starting to pick up as you pointed out.
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oil and gas is making a comeback and it's going to be a significant part of our economy for the foreseeable future we think it ais an opportunity o see significant growth in the markets. we pointed out we're really excited about the expanded footprint this puts us in prepandemic at the time of the merger announcement we saw this economy likely to grow in terms of households two, 2.5% faster than the u.s. as a whole given what has happened with the pandemic and people moving, working from home, working more remotely we think that the landscape has shifted a little more in our direction and we're expecting to see faster great across oil and gas economy and across the southern economy as a whole. >> yeah, me, too i share that one of the great moments in your call was that we've had a little outfit on that i didn't think anyone was paying attention to called encino and you're
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adopting it. we think that stuff saves money and better than any other kind out there. that's your experience >> absolutely. we think that's the leading technology in terms of end to end process management and fulfilling consumer lending activity and we are excited that iberia brought it and had success and we're excited about adopting it across a whole with our franchise. >> do you think bank technology is still in the infancy. a lot of banks moved to the cloud and bringing customer relations management is there a lot more to do technologically for first hor horizon? >> i think when we get through this integration, we'll have moved the ball forward with products, features and functionality. this notion of the back room and core systems is likely to not
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change significantly over the foreseeable future financial institutions use a lot of big iron mainframe systems that go back 20, 30, 40 years plus in some cases and what we have to do is make sure we put with api's front ends on these systems that allow us to make the ex kbperience from a custom perspective much better than dealing with the old green screen technology but getting the cloud based infrastructure or core to where we are today is a huge and expensive lift and so i suspect we and the industry will continue to use these big iron systems as long as we can make them work with an importantly focused customer experience that minimizes anything that would be inconvenient for them. >> yeah, i think there is a lot
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of legacy hardware that has to change one last question, obviously, we had the election and a new president. do bankers think even at the level of oh, we got this new president that will help us or is it just really in your case it's a regional issue and it won't impact the banking business >> i think administration, the biden administration has an opportunity to have a real positive impact. as you point out, our business tends to be more geographically focussed, but the overall u.s. economy and how policy around controlling the pandemic and rolling out vac scines is important. the legislative process is important as it relates to potential stimulus in the economy and then ultimately, you know, how do tax policies look and housing policies look and all of that will affect the broader economy so it will have an impact on us and i'm
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optimistic that we have with the biden administration what will be a thoughtful and forward leaning process that i think will lead to a better economy over the course of this year. >> i'll take that and my viewers will, too. always great to see you, brian brian jordan, the president and ceo of my favorite regional bank great to see you, thank you. >> thank you. >> "mad money" will be back after the break. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business. ♪♪ ready to shine from the inside out? try nature's bounty hair, skin and nails gummies. the number one brand to support beautiful hair, glowing skin,
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it is time, it is time for
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the lightning round. buy, buy, sell, sell and then the lightening round is over are you ready ski daddy? let's start with jim in new york jim? >> caller: hello, jim, how are you? >> i am good how about you, jim >> caller: doing good here in long alisland, thanks. >> i was there last weekend. had a great time. >> caller: i was wondering if you could give me advice on a stock purchased about a year ago and lost half its value over the last three or four days and wondering if i should get in and buy a little bit more. >> which one is that >> caller: cardiff oncology. >> it's just okay to be honest just very speculative situation.
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they have things they are working on but very speculative and not as far along as i'd like it to be i want to go to eric in texas. >> caller: boo-yah, jim. >> i heard you recently discuss the critical importance semi conductors on future tech like 5 gr g infrastructure what is your outlook on the technology and recent jda and just overall their position in the semi conductor space. >> very speculative once again a company that used to have another name you can run but you can't hide stocks and i've got to tell you, again, i can come back and say let's not over think this. you have a bunch that is great why not be nvidia. that's a better stock. buy a franctional share. i want to go to sharon in new york, sharon >> caller: hey, jim, hi, big huge boo-yah to you. >> right back. weekend boo-yah. >> caller: my question is i was
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wondering why root, r-o-o-t never took off i thought the both of them were supposed to be disruptive to the insurance industry. >> you're right. i think lemonade is terrific a lot of people in the office use lemonade i think one is a better on the wall street fashion show we talked about tonight one nobody looked at i've looked at things taking off but yeah, the one they want is l lemonade i'm sorry. i need to go to -- yeah, i don't know yeah, i need to go to, hey, hey, the lightening round is over >> announcer: the lightning round is sponsored by td ameritrade
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turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪♪ hi, i'm a new customer and i want your best new smartphone deal. well i'm an existing customer and i'd like your best new smartphone deal. oh do ya? actually it's for both new and existing customers. i feel silly. but i do want the fastest 5g network. oh i want the fastest 5g network. are we actually doing this again? it's not complicated. only at&t gives everyone the same great deal. like the samsung galaxy s21 5g
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for free when you trade in.
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you know what i love about this market? it's amritocracy depending on the successes or failures of management if you think that's how markets
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are supposed to work, i don't blame you. since the turn of the millenniu we had a market where stocks were punished or rewarded based on the sector. the difference between a high quality stock and low quality stock in the same industry, well, much smaller than it used to be. at times they felt genuine commodities as though we were trading bushels f of corn. what mattered the directions of the futures and sector was it in or out of style. until this past year, it was accepted as normal however, those of us who have been around for a long while can remember a time before the market got commoditized and had control over their stock's destiny i used to teach 50% of the action reflected the actions of management and the other 50% reflecting the sector. then the .com bubble burst and futures took over and entered a
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world of investing where tons of players i don't care companies were too small and macro people for the past 20 years it felt like more than 40% of the stock's action came from the average and 40% from sector and 20% came from the actual corporate achievement. last year something changed. maybe it was the rise of commission free trading and maybe the stimulus checks. maybe it was highly visible winners like tesla and investors that don't look at stocks the way we did whatever, we have a stock picker's market where company specifics matter like they did when i got into this business 40 years ago. i think the ratio is back to 50/50. half the business, half the sector in the broader market suddenly doing the homework on individual companies could be more lucrative because fund mentals are in the drivers seat and not sector rotation and the fed. let me give you examples eli lilly had terrific news and a drug that could help prevent the spread of covid. especially among people in nursing homes, the highest risk
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group. thanks to the news lily is able to break away, it's broken chains from the market and the big pharma cohort and a big announcement for the vaccine i believe it the stock turned into a juggernaut and trading on prospects. i don't know how the market feels about the pharma industry. paypal is worth $300 billion because they keep taking market share from mastercard and visa and the market is shayould be valued like that this was a $100 billion company and the financial technology is red hot, paypal feels like the master of the fate i want to look at general motors in part because we have a fabulous bull market in autos but gm is less of a fossil fuel dinosaur and more of an electric vehicle play it's management that's in charge of the stock thanks to the amazing work of the ceo, the stock has been able to separate itself from the pact put it together and this is truly a wonderful stock picker's market one that rewards you for taking
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the time to do the homework and identify potential winners based on how they're actually doing. and that's how a stock market should work and at least for the moment, it's the way they do i like to say there is always a bull market somewhere and i promise to find it for you here on "mad money. i'm shepard smith starts now we now know when the former president's impeachment trial begins but can they convict i'm shepard smith. this is the news on cnbc >> make no mistake, a trial will be held in the united states senate >> negotiations begin. the impeachment article set to be delivered on monday the next steps, and the impact on the biden agenda. >> we have to act. we have to act now >> the economy in crisis, the president vowing to act fast tonight his plan to fix it and the political pushback what thi


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