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tv   Mad Money  CNBC  September 28, 2022 6:00pm-7:00pm EDT

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>> last time i said objects are bigger than they appear. that referenced the atlanta braves, now in first place along with the mets who play in chase stadium. i see you rolling 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 friends, i'm just trying to make you some money it's my job not just to entertain but educate and put days like today into sperspectiv so-call me or tweet me today, today, we saw this dream session. the dream of what happens when
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the feds stops tightening. buy, buy, buy! that's how the dow gained 459 and the s&p surged 1.97% and the s&p 2.5% unfortunately, it's just a dream, not reality all right. what's the bullish dream today the british central bank started buying bonds to hold down interest rates after tightening less than expected last week. in other words, the bank of england totally blinked. immediately the two-year treasury that's the most important piece of paper in the world because it signified how tight the fed has become reversed and reversed hard from 4.3% yield to 4.1% and one of the most stunning moves i could ever recall. it was like the entire bear market transformed into a bull market because another country --
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they're our central bank and other countries gave up fighting inflation. why isn't that good enough to justify today's rally? the federal reserve isn't the bank of england. in the next two days we'll hear from a lot of fed officials that deny they're going to blink and they have the fortitude to fight inflation. they will be so down beat and so determined that you will realize their dream is here. sell, sell, sell i forget about that. unfortunately, i have doubts about this fed strategy and it's time to talk about it. i've been pretty profed. i think the fed is reverted to the previous non-data dependent strategy from 2018 they were so fearful of inflation and crushed everything when they adopted it then and they will do so again. i'm not saying they're wrong to tighten. i think tighten something right. i'm not denying they were six months late to the party although jay powell had nothing
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to do with the massive federal spending courtesy of the president of congress and nothing to do with price gouging with the great resignation of the loss of millions of america to covid and the invasion of ukraine raised the price of fertilizer and most certainly didn't think the people's republic of china would lockdown their people because the covid vaccines barely work compared to the mnra pfizer or mo dderna journalists. president xi doesn't like the west it doesn't matter. the question now is whether he's already caught up or even pass the where he needs to be at least for the moment because if that latest triple rate hikes. they are very abnormal and can be staggering to the economy once you find out what it's like, it doesn't happen the next day. you don't say whoa it takes a little time
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a month to sink in they're not waiting. they're promising hikes of all shapes and sizes to come and i got to tell you it's -- >> boo >> and it's -- >> they know nothing >> yeah. >> they know nothing >> the market has been tumbling since because powell abandoned its previous policy and decided in advance the inflation data would be too hot therefore he has to hit us with repeated rate hikes just in case like that inflation is some sort of hollywood villain that comes back from the dead today we saw what happened if powell hadn't taken the lock step approach. we've seen the home builders sore and the banks and putting more stress on the system. most importantly, would have had a gigantic leap in the tech stocks what's incredible, before the bank of england panicked, we were about to crash. you heard me crash. just this very morning at 5:05 a.m., the averages were plummeting led by a rather anonymous story about a pending
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apple short fall, a story about the one big tech stock still holding up interesting, huh i couldn't refute the story, either because nobody in the apple complex will talk to reporters. at 5:00 a.m. there was talk of a cascade. the final give up after seven straight days a moment you feel like an idiot for buying stocks since short interest rates once again seemed headed higher. now, i've reminded you that the fed doesn't care about your portfolio other than trying to hurt it. really, put it generously. in reality, to the extent the fed cares about the portfolio, they want to go lower so you have less purchasing power which will translate into less inflation. with jay powell on the warpath, it's tempting for people to dump stocks and hide money in the two-year and collect that 4% an change risk free they want the stocks to lose money. that's okay. it's an executed plan. i don't believe in it but it's
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the plan the fed doesn't want stocks down that's not the only thing they want they want you to stop speculating. i wish that would go away. with your speculative money with it, okay just go away you don't want your house to lose alue. maybe 30% price increases. mortgage rates so high double they were, there would be no more bidding wars on houses that are a major source what a great way to stop home inflation than make your home worthless. what a great way to make your stock portfolio worth less makes sense. the fed wants you to fear losing your job they want to make the prospect of retirement seem too expensive so that people rejoin the work force and there will be less wage inflation i got to tell you someone in the restaurant business in new york, this is purely anecdotal but give me a break. things changed dramatically. you want a job sorry, we don't need you that's the thing i'm hearing
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walk down the street in brooklyn and you get hit by resumes of people that work in restaurants. i fear fed inspired paper cuts different from a year ago it was impossible to find help. today we got to see what would happen if he took a less ag aggressive approach to bringing on the pain. he doubled mortgage rates in one year and businesses cancel big deals that would have brought tens of thousands of jobs and the giants seemed to fall apart from the risky natural gas play that lost a chance to really build out facilities we in the europeans need, couldn't get the financing. i don't want to see the loss of opportunity to build the export terminal but this is how you know the fed is winning. the fed winning is bad for you short term long term i get it inflation is bad however, if the fed wants us to be poorer, to feel poorer and spend less so that prices come down, today'srally was a disaster sure, we were lucky enough to see what can bolster the market none other than a lower yield on the two-year but the fed wants
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stocks to come down, well, now they know what to do they can send any small from whatever region and just say look, rates are still too low. this was just a dip. don't get your hopes up. then today's gains will evaporate and they'll will happy again. i too am drthrilled to see the market rally hard. which fed will come out and take one look and say holy cow, this is all bad i don't know why these rates went down? it's not in the cards and feel like it's imperative to point out they're still planning to bring the pain on. this is the house they want you in. >> the house of pain. >> house of pleasure. >> if you are one of the real scrooges of the fed, you say something like this. did it occur to any of you two-year treasury buyers it wasn't us starting to buy back bonds but over there in britain? we had an agenda to make you feel poorer so you spend less money and the economy cools down
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and we're not going to wait a couple months for the next hike but bring it on. bottom line, the moment some fed head explains the obvious today's gains will disappear because they're incompatible to contain inflation. it was based on a dream and as we learned in the maltese, this stuff that dreams are made of is not a valuable commodity let's go to andy in california, andy >> caller: good afternoon, jim and greetings from chats worth, california the boss is here and wants to say hi. >> hi, jim. >> caller: i'm an old retired guy living on a fire department and military pension but -- >> thank you >> caller: thanks to your kind and intuitive and compassionate investing advice, very comfortable as my income so i want to thank you for that. >> thank you we try so hard here. my whole team tries so hard and
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it's been such a difficult market so happy to hear we've been helpful how can i help now >> caller: i'm getting conflicting advice on a particular stock in a previous investing club in a newsletter, raymond james initiated a strong buy on a stock and then another brokerage listed it as a strong bearish position i'm wondering if you can do a tiebreaker on planet fitness. >> well, we are huge believers in chris rondo we think he's built a remarkable business we think he's offered a service this country needs which is nationwide fitness at a reasonable price and we are not against that we are with it the tie goes to the runner which is planet fitness and thank you for serving. all right. the moment some fed head explains the obvious, today's gains will disappear because they're incompatible with the fed chief's plan on controlling inflation with lock step raises and rates.
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on "mad money" tonight, lululemon announced a fitness platform with a host of offerings and i'm learning more about the future of the fitness company, travel company with the company grand officer and even with today's bounce, the sentiment of the market is plain awful. what does this mean for your investing strategy i'm going off the chart to find out and marty anenounces retirement i'm sitting down with the incoming and out going ceo for more on the transition and what lies ahead 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 email to or give us a call at 1-800-743-cnbc miss something head to
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segment near and dear to my heart. for awhile now a whole story seen like a covid play in the post covid world but a couple years ago we got into home fitness space and today they announced a service called lululemon studio access to online fitness classes and in person ones. so could this kind of hybrid option in the future of fitness, let's take a closer look with the chief brand officer of lululemon athletica. i found out about this one from an email from my daughter emma
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because everybody apparently is very, very excited about this announcement. >> as are we as are we. we announced this morning the natural next step in the evolution of mirror, which you heard us talk about on analyst day and moving that into the lululemon ecosystem and calling it lululemon studio. what we unveiled today is this hybrid fitness nness platform at is knew are three things emma will have access to even more content i heard she loves amanda robinson. >> how did you know that >> we'll get more from amanda. i listen to you. i listen we'll have access to eight new studio partners and will have the flexibility to workout at home using her mirror. she can work out out on the street any digital device and go to the studios and work out in person with those partners and we added lululemon benefits.
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10% off lululemon products, so a discount there and 20% off the in studio classes to the partners as well as early access to product and things like that. >> i think people need to know this studio you talk about are the best and therefore expensive. 20% off is substantial. >> yeah, i mean, what we do is create products that really serve the unmet needs of our guests we're looking for more benefits. we want to get back into the gym. we don't want to lose the access of working out at home but we're really excited about what the offer is and we think it will bring a ton of value to folks like emma and new people we hope will buy in. >> you also cut the price of the mirror so it's the holy grail in my business, the razor, razor blade in my model and made some companies like a proctor billions of dollars. >> well, the special price, $795 is something that we're hoping entices new folks into the
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community. >> much below. >> much below. the subscription price is remaining the same so for folks who are already members, we're packing in a ton more value at the same price but really, this is about driving engagement and loyalty with our existing community and we see that for our core business. >> how many people use the remote app on the go for when they travel? >> we haven't shared that number i don't think but we have a community of millions of guests and so i think the hope is that we can get as many of them as possible in an engaging in this as a daily go to option to engage with us and our studio partners as you know, community is at our core those studio partners are long-time lululemon partners and we see this as an opportunity to both be stronger together coming out of the pandemic like you said and giving people more options. >> some people may not know these different partners but some people are a little intimidated because the biggest stars of the world go to these partners so it might be a little
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bit less intimidating to work out with them at home. >> yeah, we see a couple things here so we have added eight very diverse dynamic partners so you got y 7 with yoga, you referenced dog pound which is a luxury fitness boutique based here in new york and l.a., a bunch of others, as well i think if you're a little intimidated, you first get to meet the trainers and try it out in the comfort of your home. we talked about forward space, which is a dance partner i love to dance. i do not want to do that in front of a lot of other people so i would probably do that at home but if you want the energy of going into the studio and work up that confidence at your house, you can go into the studio and meet those folks in person, as well. >> i was at my lululemon summit ahead of you coming in and i saw belt bags were a god they had all sold out. this is something i was thinking about getting someone. is this the hottest item you have >> this is the everywhere belt bag. it is hot. it's the bag of the summer we're getting them back in stock
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if you check every tuesday we drop new colors to meet the demand but it has gone viral and just one of the phenomenons that happen in popular culture and we're a benefactor of that. >> waiting for new shoes. >> yes, i am wearing some new shoes. these are the strong feel. the third of our shoes to launch this year. they come out on monday, october 3rd. we're excited. these shoes would be great for a dog pound class because they're strength training. versatile. you can wear them around with normal outfits. >> i'll give you my last emma question what the mirror came, she said my favorite brand is lululemon and yet, you can't tell this is a lululemon product. why aren't they proud? that's all changed. >> that's all changed and emma, that was part of the vision. that's what you can tell her and we have finally brought it into the ecosystem and realizing that vision with this announcement today. >> the company obviously that you are not the ceo or cfo so
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we're not talking numbers but i would say from my own appearance when it look at the stores, they're booming. i don't think that's a wrong assumption. >> no, we have a very loyal gust sp -- guest space and look forward to welcoming more people in the community. >> well, you're terrific. >> chief brand officer of lululemon with this new way the mirror is going to be integrated into your life let me tell you something, i can tell you that this is very meaningful for a lot of people "mad money" is back after the break. >> announcer: coming up, don't get sent mimental on us. cramer goes off the charts to get a read on investor sentiment, next.
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even after today's bounce, this market has been absolutely awful. so bad that you can practically feel the negativity in the air,
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it's hanging there stocks have been 0 bliobliterat over the past six weeks. we have ramped inflation and the federal reserve said they will throttle the life out of the economy until prices settle down the rest of the world is in much worse shape than the united states all and all it feels like we're heading for a recession doesn't it everybody is selling because they want to get out ahead of estimate cuts. they're going to start real soon when we get to reporting season. we got to repeat today because the bond market went in the right direction thanks to the bank of england of all places. the narrative remains overwhelmingly negative in this country. however, that negativity at times is one of the things that i like about the market. stocks are really just buys right now. honestly, it's kind of a little bit nuts think about this with the fed causing a recession, it's not going to be comparable to the financial crisis yet, we're seeing levels of investor negativity that are
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comparable to the financial crisis if not worse. good news, right now, the market can't bottom until we have a ridiculous level of pessimism and the fair weather bulls throw in the towel and there is nobody left to sell keep that in mind. nobody left to sell. that's not the only thing you need for a bottom but the most important ingredient sentiment is negative. we have to analyze why -- what it means and why you find it so i don't want you to take this from me. we're going off the charts with the help of a guy named ralph vince. he's a brilliant technician programming trading systems for all sorts of funds since the early 80s. incredible grasping the big picture. he comes with the larry williams seal of approval now, according to vince, the level of activity in this market is down right stunning first, take a look at the s&p 500 going back to 1980 with data from theamerican association o individual investors in blue
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this is the percentage of bulls in their weekly sentiment meaning the percentage of investors that think stocks are headed higher over the next six months last week, it was at 17.7% you know, how low? how about one of the -- it's one of the lowest readings in history. it's only a couple points higher than where it was in the spring and that was the lowest level of bullishness since 1992 even the financial crisis didn't get that bad any time bulge make up less than 20% of the pie, hold your nose and buy something. next up, check out this chart that shows the results of the same aaii survey but this time it's illustrating the percentage of investors bearish in red last number -- last week that number hit 60.9. i'm laughing because that's almost insane, all right meaning 6 in 10 investors see the market headed lower over the next six months and we haven't got this negative since march
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9th of 2009 which by the way was before one of the greatest bottoms i've ever seen in this so-called haynes bottom named after the late mark haynes when everyone else thought the market was still going lower. when the bearishness gets this extreme as it was here and here, okay, when it gets this extreme, it's often a terrific buying opportunity. we can see these buying opportunities, right over and over again with this great buying opportunity i know it's just about negativity figure it out. i know it's rail heally hard tol the trigger. it was so painful. that's why i got to tell you, you got to hold your nose and buy something if it makes you want to puke this recession is the right call taking a look at this chart. this is of the national association of active investment managers exposure index, which measures the position of active risk managers, basically reflecting how long or short the average u.s. money manager is. negative to positive with
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anything over 100 representing leverage logs borrowing money. right now, though, the exposure index is at a 29.59. again, that's extremely negative it tells you the institutional money managers have already gotten out look, it's not just the stock market take a look at this. this is -- we always -- this is something i've been talking about for years called the university of michigan index just one reading ago it made an all-time, not ten-year, all-time record low for the michigan consumer confidence even worse than the financial crisis, even worse than the inflation era consumers are really pulling in horns. that tells you jay powell is winning his war against inflation and then some. how about the consumer future expectations according to data from the conference report, expectations about the next six months are at the lowest point since 2013. all right. now take a look at the dow jones industrial in black versus the 21-day average of the put to
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call option ratio in red that's based on the equity options. buy call options when you're bullish and buy puts when you're bearish. the lower this ratio goes, the worse sentiment has gotten and right now, it's incredibly low not quite financial crisis low because it was -- that was, you know, really pretty horrible and then pandemic. okay pretty low vince is pointing out historically when this ratio gets extremely depressed, it often harolds a bottom in the stock market like in 2009. how about volatility this looks at the vvix which measures the volatility of the cbo volatility index, the vvix for short and divide that by the vvix itself. right now, it's nearing before it was when the market bottomed december of 2018 that was the last time jay powell went to war against inflation. he over did it then. maybe he's over doing it now
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once again, the vvix to vix ratio gets this negative, it's often a sign we're ready to bounce you can see every one of these, every time you see it, you see it bounce. i don't think there is anything more clear that what this is saying about time to buy finally, take a look at this chart of the s&p 500 in black versus inverted neck free credit balances in red. in other words, the red line shows how little money is sitting in margin accounts these numbers are back to where they were in 2017 when the s&p 500 was more than a thousand points lower than it is now. practically anybody buying stocks with borrowed money is blown out at this point. isn't that fabulous? when it's the high, when there is so much money being borrowed, you know the market is about to crash. it's done it the bottom line, the chart is interpreted by ralph vince suggest the investor sentiment reached extremely negative levels to the point where you got to hold your nose and buy
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something. i know that's hard to believe even after today in every decline, you eventually reach a point there is nobody left to sell are we there yet i don't know you can't rule it out after looking at these charts. i want to take phone calls i want to go to jason in california, jason? >> caller: hey, jimmy, appreciate you having me on the show, man. i wanted to say thank you for everything you do for us small time investors i know you get a lot of flak on social media when your calls don't necessarily play out but you put a lot of insight and a lot of context to the market you've helped small retail guys like me a lot. so i appreciate that. >> thank you, jason. thank you. yeah, you know, the people who are not in the arena, they my fight with he on this and sometimes i read them, sometimes i don't. how can i help >> yeah, i wanted to ask you about netflix. huge day today big pop. been consolidating in the 220 to 250 range for the last several weeks. if we can get over 250, it looks
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like there is a huge gap going back to the dismal april earnings report up to 330. the question is can we get there? what do we need to happen in the market to get us to that point >> what we need to see and thank you for the kind words what we need to see is people really don't mind watching commercial the if they don't want to watch commercials, the stock will fly through that level i think they will mind watching commercials. i don't like watching commercials. i think netflix was set up against commercials but i could be wrong if i'm wrong, this would not shock me this stock has a lot of upside because maybe commercials are tolerated by people who don't want to spend any money. i want to go to pat in washington, pat? >> caller: hey, jim. >> boo-yah >> caller: my name is pat. i'm in spokane valley, washington i listen to you every day. >> thank you, pat.
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>> caller: thanks for all you do i have conaco phillips i had for seven years. what's your thoughts on it now >> it's important to have oils that yield a lot and give you a very good return as they go below 80, people get very scared. my case -- my case is listen, you got to own at least one oil. we have a market waiting inoil for our travel trust we cut it in half from what we had because they've had a big run and right now, i don't want to sell anymore. okay the charts are interpreted by ralph vince suggested sentiment reached negativity extremely negative levels and you got to hold your nose and buy something. we may have reached a point there is nobody left to sell and that point would have been yesterday's session. much more "mad money" ahead including the incoming and out going ceo of one of the absolute favorite stocks, paychecks i'm covering a lot of ground with the company then today investors seem to think apple was done for giving
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a headliner iphone 14 production but is the panic warranted i'll give you my take and certainly more informed than others all your calls on rapid fire on tonight's edition of the lightening round so stay with cramer back when i had a working circulatory system, you had to give your right arm to find great talent. but with upwork, there's highly skilled talent from all over the globe right at your fingertips. it's where businesses meet great remote talent and remote talent meets great opportunity. ♪♪ ♪ this is how we work now ♪
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i said at the top of the show about the united kingdom central bank, the fed here isn't going to stop tightening to tamp down wage inflation. that's why i like to consult paychex. they reported a solid quarter which is great news for you the shareholder but not so great if you're fed chief jay powell
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worried about an over heated job market earlier today we got a chance to check in with the chairman and current ceo of paychex and john gibson take a look. gentlemen, welcome to "mad money." >> thanks, jim. >> i got to start with you, marty. it's been a long journey probably the most consisting test we've had and i want to give you kudos because i believe the stock has gone up tremendously since we started talking. >> started at 27.50 when we started talking 12 years ago and i think we're around over $40 billion so it up four times. >> let's not forget tremendous dividend the whole way. >> exactly. >> good and bad you came on. i can't remember bad but the analysts thought they were bad,
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maybe the analysts are gone and you out lasted them. >> maybe you've always been a nice supporter and having me on appreciate it. >> as a satisfied cust omer and somebody that knows how to read a balance sheet, appreciate you. what are some things you're going to continue to grow because there are so many different lines that marty started that made this company into a technology company that handles paychecks. >> you're exactly right, jim i'm pleased to be part of the team the almost last decade with marty transforming paychex, really focused on a jar and you should expect to continue doing that we're one of the best operators of the business in 41% margins this quarter very consistently over the time i've been here we demonstrated capability to do that and we'll continue to be a stable financial investment for investors and really generate a great total shareholder return those are three things we'll keep focused on.
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>> it's clear that you guys love technology and there are things that people don't realize but as a small business owner, i know like when you do something that is voice assisted, that matters tremendously. >> there is no doubt about it. you got to think small business owners today are under tremendous pressure. their time is extremely valuable if you run a restaurant, chances are people aren't showing up and you've got to go from one location to the other so your time is invaluable we're allowing you with our paychex voice assist, with google voice you can complete your hr pay. >> a lot of people say they have artificial intelligence i can't see. it seems to be natural and fiction. one thing we've had three or four recession shares and one of them real. now, we have one again when i look at the number of people, number of companies you
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have and the creation, it makes me hard pressed to think that we're about to be -- that we're on a precedent. >> we had best sales performance, record-breaking sells. we see our clients adding employees and so it's getting a little easier to add them, jim, as you know. it's easier to find them still a lot of openings there but a little bit easier now. so we really are not seeing it at this point and we have revenue retention that is still record best even better than prepap prepandemic at this point. >> what is more amazing, when i start with my -- all the analysts cared about is how low the interest rates were so he couldn't out perform marty told me over and over again watch us, we're not going to be depersonnding upon that o particular met trick at the same time, the short rates are really, really high and it does seem like that you have a bank with no credit risk. >> well, jim, look, i think as
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marty has done a great job, we really position the company as a technology and hr solutions company and if interest rates go up, that's certainly good for us what we're focused on is how do we sell maximum value to the customers and we're doing that look at the results this quarter, our team executed greatly and really selling the most value our average revenue is up 9% that's far more than price increase we're selling more because of the products and services we have are resinating for what they need. >> one of the things that i think we're acutely feeling since this jackson hole conference is gun shy. if you want to start a business and may need credit, i think you might be more fearful than you were i wonder whether there was another way or better way, say, to be able to tamp down inflation and yet, still allow growth because you went through covid. you saw what could be done so what could the government do a little bit more gingerly to make it so we still have more people putting food on --
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>> well, jim, the subsides were a great help. >> yes. >> they really fed the economy a lot. not only businesses, you know, we helped provide over 9% of the ppp loans that came out. we were there the day after they were available that was a tremendous help now, the employer retention tax credit, we've done a tremendous job giving over 45,000 of our clients employer retention tax credit helping them get that for over $8 billion. probably on average $190,000 subsidies like that have really helped carry over businesses into a tough time and maybe we ought to keep an eye on something like that for the future. >> i think that's a great point. john, in a time since marty came in, it seems like many states have changed the rules on small business and one of the things that is very important is that paychex changed with them. how many different rules in the time -- you've been here for awhile how many rules changed and how much more advice do you have to give to clients, which is very sticky when you give that
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advice >> there is no doubt about it. i couldn't tell you how many more regulations it's different by every state and changing every day. we have over -- one of our fastest growing business reported is the h.r. outsourcing business unbelievable growth. why? because this complex for small business owners to understand what the rules are and so we have over 700 trained h.r. consultants actively engaging every day. helping them figure out how they navigate these complex rules and the other thing that's happening, jim, people are a lot more remote today so the likelihood small or mid sized businesses have employees in multiple states, you totally blew the lid off the complexities new york doesn't necessarily work in california or illinois so you're seeing business owners saying look, i can't handle this anymore and calling paychex to help them out. >> marty, i'll lgive you the las word what can you say to shareholders about what they've done and what you're most proud of
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>> i'm proud of the team, the 16,000 employees of paychex have done it all. we talked about recession, tough times, covid, they've always come through focused on service, service is defined as much technology a lot of self-service. our employees and mobile app is still a five rated mobile app out of five just about and it's just really made a difference for remote employees we've always been there and our employees i'm very proud of them and our shareholders are certainly done well and they expected and with jen, we'll continue to deliver. >> i want to congratulate you for a great run. many shareholders, many shareholders have thanked me for introducing you to the public. john, i wish you the best of luck will you please continue with us the way marty did? >> absolutely. >> all right then we're winners then. i want to thank marty, chairman and ceo of paychex and john gibson gentlemen, congratulations. >> thank you, jim. >> "mad money" is back after the break. >> announcer: coming up, cramer takes your calls and the sky is
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the limit. it's a fast fire lightning round next thanks to avalara we can calculate sales tax on almost anything, anywhere, automatically. avalarahhhhh. what if tax rates change? ahhhhhh. filing sales tax returns? ahhhhhh. managing exemption certificates? ahhhhhh. business license guidance? ahhhhhh. does it connect with accounting? ahhhhhh. item classification? ahhhhhh. cross-border sales? ahhhhhh. what about? ahhhhhh. ahhhhhh. do you have those budget markups? thank you. mmhm. [bubbles]
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- oh, the stock market is doing that fun thing again. news from the future: you're going to live through that about 10 more times! (laughs) no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster.
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- [narrator] yieldstreet: private market investing. it is time, it is time for the lightning round. i'm cramer's "mad money. that's where i take your calls you say the name of the stock and i tell you buy, buy, buy or sell, sell, sell my staff prepares the graphics on the fly and then the lightening round is over are you ready ski daddy? i'll start with jay in new york,
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jay? >> caller: inaudible rada. >> israeli tactical defense company that is way too expensive. i'm sorry, i can't endorse it. let's go to stewart in new york, stewart? >> caller: hey, jim, how are you doing these days >> stewart, i'm doing well and i hope the same for you. >> caller: good. thank you. i got falling angel from the past that everybody loved that's in trouble today and it's annaly capital. >> they're not in trouble. i don't say fallen angel i don't recommend that stock let's go to neal in california, neal >> caller: boo-yah, jim. thank you for taking my call. >> boo-yah, boo-yah. what's up? >> caller: yeah, i got a question for you about a
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speculative thing. enbx. >> okay, now, this is another one, electronic component probably in another different time if the fed isn't tightening, you can speak late but instead it costs too much money. let's go to allen in utah, allen? >> caller: boo-yah, jim. >> boo-yah, allen. what's up? >> caller: please give us your opinion on wolf speed, thank you. >> i like semi conductor companies but they're all very under valued except for a few of them like this one that is over valued i won't tell you not to buy this stock. samir in texas, samir? >> caller: hey, cramer, how are you? >> i'm good, samir, how are you doing? >> doing good. i have a quick check on fden stock, is it a good position. >> the energy storage company is a favorite but then again what happened here very quickly is
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that again, a company does not make a lot of money with a high stock in an era where the fed wants to crunch inflation is not a stock you can own. brandon in -- oh, no, that ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightening round is sponsored by t.d. ameritrade coming up, own it, don't trade it and keep an eye on apple with cramer next
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- ooh. i think some of my gray hairs just reversed. - yeah. you're welcome. - [narrator] become an investor today. yieldstreet: private market investing.
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is apple really finished
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a report how sales are slow for the iphone 14 and orders are being cut back because demand is more tempid than management expected when i read the story i say darn it, i can't prove this story isn't true apple certainly won't despcember put -- dispute it. they never do. this is a stock yet to be truly crushed by big sellers and short sellers. apple preannounced a short fall or better than expect the quarter. they announce the short falls after the calendar quarter is over so it would be unusual to say tim cook says the rumors are true let's dig deeper for a second. almost immediately after the story appeared, morgan stanley that knows more than apple came out with a piece entitled pulse, more bark that bite. morgan stanley doesn't refute the thesis that the company wants to reduce production of the iphones as much as 6 million
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units. they are too short for the 14 an respectively that's disappointing and said demand for the 14 pro and promax is robust that can be confirmed by verizon and att when they say you can't get your phone until late october if you subscribe. meanwhile, that morgan stanley piece, though, beyond that, i'm not embattled by the stories why? this story does seem to surface like clock work. you call apple they say nothing that's their policy. call suppliers, they say nothing. the first rule of the apple club is you don't talk to the apple club they will lose the business if you speak to the press i once got a supplier in huge trouble bedemanding on air they tell me how apple is dog i think i cost the source tens of millions of dollars so no suppliers will speak to the press when they get a call about apple which means the stories are hit and miss and i'm being polite there here is what i really know
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there is no important slowdown at apple things are on plan there have been no calls otherwise because apple seems confident that things are good for the high-end phones, where the real money is if the less expensive phones are indeed in flux or might have access inventory. what should you do with the stock more importantly listen, practically every new iphone has been met with these stories. each time selling the stock on these hit pieces was a mistake let me put it this way, i meet people in the street all the time and sometimes they ask me how i knew to stay long apple since it was trading at $5 they kept trading in and out, in and out. i tell them because i ignore these stories about apple supported weakness and instead focus on the sky high customer satisfaction they are surging service revenues and the lifetime value of the customer base, more than a billion people, many doing lots of repeat business go ahead and trade apple if you want but
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we're sticking with it for the long haul on my travel trust which you would know if you were a member of the cnbc investing club i like to say there is always a bull market somewhere and i promise to find it here for you on "mad money. i'm jim cramer see you tomorrow "the news with shepard smith" starts now i'm jim cramer see you tomorrow "the news with shepard smith" starts now hurricane ian comes ashore as one of the strongest storms to hit the u.s. in decades the strongest ever on the southwest florida coast leaving residents stranded in homes with nobody to rescue them. we're tracking where the massive storm is now and where it's headed in live news team coverage across the battered region i'm shepard smith. this is "the news" on cnbc hurricane ian is now


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