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tv   Mad Money  CNBC  November 3, 2022 6:00pm-7:00pm EDT

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i'm going to give you another shot game five tonight. phillies or astros mel? >> phillies. >> wow i'm with you on that one look at amgen. the numbers were fantastic, mel melissa lee. >> thanks for tcngwahi "fast." "mad money" with jim cramer starts right now. 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 try to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you my money. my job not just to entertain but put it in context. call me. 1-800-743-cnbc tweet me @jimcramer. nobody, i mean nobody believes me when i say the fed chief jay powell wants your portfolio to go down. because it's too cruel
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how could anyone ever try to hurt your precious stocks? what kind of public officials want you to have less money and feel less confident about your retirement the federal reserve, that's who. after another not so hot day where the dow declined 147 points, s&p shed -- nasdaq lost 1.73%, you need to recognize that jay powell wants you to be worried about your job so you're less likely to job hop for a higher salary. that's wage inflation. but job hopping's become increasingly difficult as amazon announces a hiring freeze at corporate, lyft's laying off 13% of its workforce there's job freezes everywhere and that's just the beginning. because every time the fed raises interest rates they're opening the floodgates, yes, for more layoffs right now powell's terrified of persistently high inflation and to crush inflation he needs to wreck the whole economy. he wants people to come back to work after taking various covid
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buyouts or government handouts because we've got a massive labor shortage it makes sense he doesn't want you using your profiler to finance a new house or even just doing a renovation. the way to do that is by pushing stocks lower powell's bringing the pain yes, he's bringing the darn pain >> the house of pain >> it really is the only tool he has to stamp out inflation but every time i explain this people always stop me and say come on, cramer, you're kidding, right? said at the ball game yesterday, cramer, you're kidding, right? he doesn't want the stock -- well, that's ridiculous, he doesn't care about the market. if anything he wants the stock market to go up. that just isn't true and you know what? i finally got it we got conclusive proof at yesterday's press conference with the fed it came during powell's talk with reporters a painful interchange he uses to bludgeon his points home here's the setting when powell issued his terse statement at 2:00 p.m., where he raised interest rates by another 3/4 of a point, he included some mystifying language about how he's cognizant that there's a
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time lag between when the fed tightens and when it impacts the economy and that lag creates complications. some knuckleheaded traders immediately assumed that somehow that was powell's way of giving them the all clear signal that he's almost done tightening and that it was time to -- >> buy buy buy buy buy buy buy >> stocks. so the market roared right after the press conference the buyers, what they did was they jumped the gun. they wanted to be ready in case powell explained that it was too risky to keep raising rates so rapidly because of the lag factor, a statement that would allow stocks to roar through the end of the year. they thought powell would blink and throw in the towel on the war against inflation. but then a funny thing happened. midway through the press conference the market gave up its bountiful gains and went lower as powell reminded us that he's a super hawk. not a lovey-lovey-dovey. also in the middle of the press conference a reporter without access to current quotes, who didn't know the market was rolling over, said it looks like
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the stock market and bond markets are reacting positively to your announcement so far. is that something you wanted to see? is that a problem? or what? how might that affect your future policy, to see this positive reaction? now listen to powell's answer. and listen closely because it proves my point here's what he says. "what i'm trying to do," he tells the reporter, "is make sure that our message is clear, which is that we think we have a ways to go we have some ground to cover with interest rates before we get to that level of interest rates that we think is sufficiently restrictive." >> no, no, no, no! [ boos ] >> he went on to explain the level of rates that we estimated in september, the incoming data suggests it's actually going to be higher. and that's been the pattern.
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end quote. that's the worst thing he could ever say for the stock market. in other words, if anything he wants to tighten more, not less than he did two months ago a sentence later powell explains, and i quote again, "i would also say it's premature to discuss pausing. and it's not something that we're thinking about that's really not a conversation to be had now. end quote. in short, don't even talk about pausing the rate hikes let alone say you want to do it for the stock market rather than worrying about tightening toochl powell made crystal clear he's worried about the mistake of not doing enough or the mistake of withdrawing our strong policy and doing that too soon powell is usually a calm guy but this is maybe the most frustrated i've ever seen him. to sum it up, he admitted -- and admittedly clueless reporter asked if powell actually wanted the stock market higher because that's where he thought it was and powell showed his true colors with a statement basically saying are you kidding me i don't want the market higher i am anti-inflation.
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and if that kills the market so be it. just the idea stocks might be rallying on his jeremiad seemed to horrify powell. so he revealed himself as one of the biggest inflation hawks out there. next thing you know right when powell finishes his most bearish soliloquy since he took the job, an orderly decline turns into a full-fledged rout. as the clowns who bought stocks up on the initial statement dumped them furiously right into the press conference you always search for reasons why powell would turn so harshly on this reporter who was simply trying to find out if he was happy that the stock market liked his statement. and that's my statement. the fed doesn't just want it lower. they need it lower because it makes it more difficult for companies to finance growth we don't need any growth right now. we don't need any. if powell's going to beat inflation he needs everybody to spend less and that very much
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means business of course lower stock portfolios means less spending for individuals and he he needs that too. to me powell's comments means you should prefer bonds over stocks here, that the two-year treasury is a better bet than take two interactive, the five-year superior to five nine. he wants to stop it with the wealth creation, start it with the wealth preservation. i actually think he's right for the long term. this exchange reveals powell as someone who thinks that higher prices are inflationary and he doesn't like inflation anywhere. anywhere at all. including the stock market hey, this guy probably likes his tires flat hi, his floaties deflated of course he's talking about stocks as a group. his comments, though, mean the fed's far from done tightening which means you've got to keep selling the tech because that's the most speculative group out there. and he's killing speculation increasingly cyclical too as we see the results this earnings season seemed very affected by the slowdown instead you've got to circle the wagons around the banks, the oils, the health cares, consumer products those stocks like e.l.f. we'll
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have on tornths can go up without causing inflation because they're more conservative and less, i don't know, crazy. the dow jones industrial average is filled with relatively cheap stocks because traders assume these 30 old line companies are the most vulnerable to recession. but that's just not true that's wrong the dow components all have a handle on recession. silicon valley has forgotten how to cope with a downturn if they ever knew how to do it in the first place. let's call them silicon salmon because the bears are ripping off their heads and eating up. fed chairman jay powell doesn't want you making money in the market right now he wants you to curb your enthusiasm for stocks, maybe even bury your capital in treasuries and he certainly doesn't want you to interpret any of his comments as an all clear signal to buy stocks. the only time i've ever seen powell nearly lose his temper was yesterday, when someone got the impression that he was aiding the cause of the bulls. you can bet he'll never make that mistake ever again. brandon in new york. brendan!
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>> caller: hey, jim. how are you? >> brendan, i'm real good. how about you? >> caller: good. i'm interested in the electric vehicle space. and i'm currently in rivian automotive i bought it at the lows but i was wondering how you think the industry will perform in production next year and if it's a good time to buy, sell or hold >> i'm not as bearish as adam jonas today, who basically put out a piece saying look, we may be at a moment where there's just too much ev worry i will say this. you're in a speculative stock and speculative stocks are not doing well and i am avoiding speculative stocks even if i like their products. let's go to stephen in nevada. stephen. >> caller: yes, jim. thank you. goodyear tire just missed earnings what are your thoughts on gt >> disappointing disappointing. i had higher hopes i thought they had a better control of things. i was wrong. let's go to robert in new york robert >> caller: boo-yah, jim. >> boo-yah
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>> caller: be. >> which one >> caller: when are you going to write another book >> oh, another book. i'm trying to write another one. the wife -- the wife lisa's not that happy with me spending too much time doing that anymore what's going on? how can i help >> caller: with the possible food shortages that the media is reporting what's your take on conagra brands >> remember, conagra's more of a tanker they need prices low if you really believe there's a food shortage you've got to buy a fertilizer stock like a mosaic or even better ge with us a total winner powell doesn't want you making money in the market right now. what can i do? he doesn't the last thing he's doing is aiding the cause of the bulls. we learned that yesterday for certain. "mad money" tonight qualcommstruck struggled after earnings is there more to the story i'm digging deep with the company's top brass. then e.l.f. beauty just hit a 52-week high i'm finding out more about the secret service for the cosmetics company with the ceo and believe me, it's nothing
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conventional and semiconductor stocks are the talk of the tape this weenl v week i'm discussing where the government stands on the chip sat. with khmer secretary gina ray mundo. so stay with cramer. >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer #madtweets send jim an e-mail to mad or give us a call at 1-800-743-cnbc miss something head to
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you know it's a shame, in this business there's no such thing as a good house in a bad neighborhood i want you to consider the case of qualcomm.
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this is a high-quality semiconductor company that's a key supplier for all smartphones. the internet of things the auto industry. incredibly well run. but the semiconductor industry's getting killed here, which is why we've been unloading our semi exposure for the charitable trust. even qualcomm. we kept most of our position because the stock is too darn cheap. but we figured how much worse can it get last night qualcomm reported a more or less in line quarter but its guidance for the current period came in below expectations sent the stock down more than 7% today. they're dealing with a tough economic environment, elevated inventory and weakening demand which is not what you want to see obviously. qualcomm's stock is back down to its lowest levels since the summer of 2020 so do we need to brace ourselves for more pain ahead or has it been punished enough let's go straight to the source with cristiano amon. he's the president and ceo of qualcomm he has a better sense of the quarter and what comes next. welcome back to "mad money." >> very happy to be here with you, jim >> so cristian, i'm taking a lot of heat. i've been backing you.
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i back you because i think you have a lot of vision when apple needed chips they came to you for all of it for next year. they went back to you for automotive internet of things and i feel like some people are saying i'm backing the wrong horse. what do i tell them? >> all right what's important to understand, when we look at this earnings season, we had a good fiscal '22. we had a good quarter. we actually came in line with revenues now, we're guiding down for the december quarter and the guide down is important to understand the two things that are happening it's really the market it's not things that qualcomm can control. and there are two reasons for that one reason is demand weakness. unfortunately, the prolonged lockdowns in china china's the largest android market in the world and everybody expected -- >> and this is an industry you dominate with almost all of the chinese players. >> premium tier right now in the industry is all qualcomm whether samsung, all the ch
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chinese, one more year so premier tier we have content. the second thing that caused the guide down, and that is the biggest thing, is this inventory drawdown the industry was running pretty hot. all of a sudden demand had signs of weakness. and the supply chain crisis got resolved those things at the same time companies are just adjusting their policy and really that's what we see. if you look versus consensus, the dollar different and e.p.s., 80 cents is this inventory correction that's cyclical. that's temporary >> temporary >> temporary >> but you said two quarters in the conference call. >> we said the trough is in this quarter, may prolongs to another quarter, but it's a one or two quarters phenomenon. >> okay. >> now, the next quarter we also have our share of samsung going up, went from 75% of galaxy s-22 to 100% in galaxy s 23
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that's going to start to show up in the march quarter >> now, on september 26th you had a very promising auto meeting. i loved it because i think auto could be the next big thing for you. but september 26th right at the same time business really started getting bad. was it october that was terrible because like i started feeling like wow, i should have been listening, i wasn't listening close enough if i had listened close enough i would have known things had gotten tough but i didn't hear it >> right september 22nd we did the auto investor day, and auto is really the bright spot on the cqualcomm story right now -- >> let's be careful. auto is 1.5 billion. 20 billion is handset. >> it's new cars going in, it's a great story. but i want to go back to your question september 22nd when we had that, for the quarter we meet revenue. it's the first time we guide the december quarter is right now. and you know, it's -- we started
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to see like in october, we're in november right now, the market changed. everybody expect october 16 the china lockdown's going to be resolved it didn't. and we've just been careful. >> that means hiring freeze, right? >> here's what we're doing >> but you have a lot of money >> we have a good generation of free cash flow, especially with our licensing business >> right >> i think what we're doing right now is we've been proactive. took hiring freeze we are mixing -- we're only investing in auto and iot. that's our growth story. >> internet of things. >> we have been actively reducing expenses in mature business and we're prepared to do more if this situation deteriorated. however, i want to go back to that this is an inventory is the biggest story here >> i know. but how do we know -- one of the things i've learned about inventory in my whole career including when i was selling gift wrap is you don't know when the channel is full. you don't know when it's glutted. and there's no way to tell i need some signs from you about
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this or maybe the answer is if you buy the stock at 100 you're buying it and you're going to get this >> all right let me give you a perspective. let's go back to the phone business because that's the phone business is what's causing this phone business, especially premium and high tier, has an interesting dynamic. you can't be selling last year phone forever. those things have cycle. new models come in the design activity that we have right now for premium tiers across samsung, the chinese, for the launches that are going to come throughout the year, those are new products we're going to have to clear this industry and you go back to the cycle. >> where does it go? i mean, where does the inventory go to areas where let's say underdeveloped portions of the world? i mean, because as far as i'm concerned i feel like i got too early and i should have just waited >> there's an interesting thing that could happen toward the second half of the year.
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india, brazil had 5g auction they're going to start with 5g traditionally 4g markets and those are large-scale markets, especially india. you know, prime minister modi announced the program. we've seen a lot of interesting -- in india. those things are going to come in we know how that goes. >> here's what i'm telling people i said do you think you know this business better than cristiano? do you think you can call the bottom i think cristiano if he says one quarter to two quarters he knows more than you. that's what i'm telling my critics. they say jim, how do you know? this is what, how many cycles have you seen? >> i've been doing this since analog, going analog to 2g now, one thing is important. the macro is the macro we can't control that. the macro economic and we don't know how that's going to persist but this inventory correction on top, that is cyclical. and people need phones and they're going to buy new phones. >> all right
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i am leaving it there. i feel like that you've made a compelling case. i know that a certain point, it's just too cheap. that's my job, not yours but i'm saying that right now. that's cristiano amon. he's the qualcomm president and ceo. and remember, this stock was down huge and it made its way back just like amd did because that's about the inventory correction getting better macro, very hard to tell "mad money's" back after the break. >> announcer: coming up, the season's nearly upon us. but this elf is work hard all year long. eyes, lips, and fat profits? cramer brushes up with e.l.f. beauty next
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take a look at e.l.f e.l.f. beauty is the value-oriented cosmetics and skin care company. and last night e.l.f. reported a magnificent quarter. earning 36 cents per share wall street was looking for 16 cents. how does this happen much higher than expected sales. then they raised their full-year forecast on every meaningful line item. no wonder the stock jumped more than $6, or 15% today to a new all-time high. i think it should even go higher how the heck does this happen? let's check in with tarang amin. he is the chairman and ceo of e.l.f. beauty. to get a better read on the quarter that's going forward mr. amin, welcome to "mad money. >> thank you for having me it's always great to be on >> i'm going to ask you point blank, this kind of beat is almost impossible to get what happened this quarter to make it so that you had extraordinary numbers that no one could have predicted >> well, you know, i'll tell you, jim, it's the continuation of a pattern this is our 15th consecutive quarter of net sales growth, growing 33% this quarter and the real driver i would say are three things
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one is our extraordinary value proposition. we make the best of beauty, make it accessible to every eye, lip and face two is we have an innovation engine that can get you this prestige quality innovation at these incredible price points. and third is our ability to track and engage consumers we're the number one brand amongst teens and we keep picking up more consumers every day. >> people keep telling me, well, i don't know how to find the consumer, i don't know where they are you know every single channel. all the younger people i'm blessed to be surrounded with know the channels. all the older people don't know the channels what are the ones you're using i'm talking to someone about be real they say jim, how do you not know about be real i said because that's not what i know how do you know things like this >> well, first of all, we have an entire company that represents the consumers we seven. we have over 75% women, over 60% gen z and millennials, over 40% diverse, and it's not just the company. i just got a step -- just found
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out this week that out of 4200 public companies we're one of only four that has 2/3 women and 1/3 minority representation on their board. so we take quite seriously making sure we're reflecting our consumers. and that allows us to really live where they live we're one of the first beauty companies on tiktok. i think now a tiktok billionaire with our last challenge having 14 billion views we're the first beauty company on twitch with our own channel, e.l.f. u and eyre also the first beauty company on be real we have a knack mainly because we have this great workforce that works with our consumers and knows them extremely well to know how to engage and how to entertain them and really how to appeal >> look, i'm going to break form here for a second. when i hear something like what you just told me about the numbers, the diversity, and the performance, let me ask you point blank. what kind of sexist and therefore also racist country that we have that you never see
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a board like yours and then you see the performance? i'm not kidding. i'm putting it right out there it's not political i just think it's just too great. it ain't dwcoincidental that you're up where you are with who you have okay >> i 100% agree with you and i'd love to tell you, jim, it was hard to create a board as diverse as ours or a workforce as diverse as ours but it wasn't. it was easy. all it took was intentionality and a real focus on our mission and our purpose. and that really drives us and also drives our results. >> 2/3 of the people in this country live paycheck to paycheck your board must know that, recognize that, and keep prices while maintaininggood quality, keep prices low because they know that that's who's the consumer >> that's right. 100% our average retails on cosmetics are around $5 compared to prestige that's $22. even some of our will go cy mask players around $9.
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i think we've really benefited particularly in this environment of being able to trade down from prestige, products like our halo glow liquid filter which we launched a couple months ago to $14. but the only other thing like it is a prestige item for $46 we have a whole series of products that really are like that, that really take the best of prestige and make them accessible, making sure we're keeping our core prices low, and it's been a winning formula for us >> i'm not -- the majority of households money is controlled by women and what you're saying applies to more -- i'm sure there are some men out there saying jim, it's cosmetics for heaven's sake but if any woman is the trigger puller in the house, the board should look like the trigger puller and i don't get it do you think that you can be an ambassador for your view which would make it so that so many women in this country and people of color in this country recognize they've got a shot at
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the top? >> oh, absolutely. and i'm happy to talk to any other ceo, any other company, in terms of our journey because we're big believers and we know what it's done to our results. >> you are passionate about this it is quite obvious that this is more than just how people look, it's a mission for you how are you going to keep the fire because you are winning -- how many so many straight quarters. how do you keep it burning >> well, i'd say we keep executing our strategy and then we also lead with purpose. one of the things i was really excited about in this last quarter is we just picked up another what we call a superpower where the first beauty company to be fair trade certified. so now with e.l.f. you can get premium quality accessible price points, broad appeal that's vegan, cruelty-free, clean and fair trade certified why would you pick anything else and so that's our mission, to keep making a different kind of beauty company that's going to continue to disrupt industry norms, shape culture and connect communities.
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and as long as we do that and offer an incredible value proposition, great innovation and really connect with our audiences, i think it's a wing formula. >> i've been doing this show for 17 years i've got a 31-year-old, a 27 -- 28-year-old daughter, and it's the first interview that i'm going to show them right now because you tell the truth i want to thank tarang amin, chairman and ceo of e.l.f. beauty he is the king of this whole cohort and you heard why. and i hope you are impressed by him like i am. great to see you, sir. >> great to see you, jim thank you. >> "mad money's" back after the break. >> announcer: coming up, it's a cabinet-level conversation to come the commerce secretary answers cramer's key questions next with gold bond... you can age on your own terms.
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for better or worse when you follow the stock market you've got to keep track of what's happening in washington. the biden administration has passed some huge pieces of legislation. think the infrastructure bill, the chips and science act, and the inflation reduction act. and this stuff has a real impact on a ton of different sectors. although when you throw all the spending together sometimes i worry that the biggest impact will be on inflation at the same time the white house has started to play hardball with new restrictions on semiconductor exports to china along with some tough talk about new taxes on the energy industry even if i don't see that getting through congress and when it comes to the relationship between government and business, there's no one in the biden administration i trust more than geneina raimondo she's the venture capitalist turned politician who's the secretary of commerce. she's the one who led the charge on the chips and science act she's an advocate for business to hire sxhen most importantly i think at this point women in the
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workforce. tonight we got a chance to catch up with her to get more insight on the environment secretary raimondo, it's a joy to have you back on "mad money." >> i love being with you, jim. i love your energy thanks for having me >> we had lisa sue on from mandy yesterday. she said these are the greatest thing. what are the chip makers and chipmaking equipment companies telling you? >> you know, most people realize it was necessary we have to protect the american people against china full stop. china has become more aggressive in what they call their military-civil fusion strategy, which is essentially fancy talk for buying our sophisticated chips which are supposedly for commercial purposes and putting them into military equipment to advance their military and this is the most strategic, most bold move we've ever made to say no, we're not going to stand for that and yes, it will deny some
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revenue to some u.s. companies and i have talked to the ceos of every company. as you know, jim, i always do. we have a lot of stakeholder feedback but it was necessary and i think you'll see other countries follow us. i think you'll see japan and the netherlands follow our lead. >> well, if that's the case, then what will happen is the real intellectual property in a foundry you and i know that, semiconductor capital equipment typically made by lamb research or applied materials, kla, sml, if you plyboy buy all the equipn the japanese, the chinese will be denied the equipment to make the chips. unlike tariffs in the previous administration this has the impact of stopping the military from perhaps even trying to take over taiwan. >> absolutely. we know that it will we're ahead of them. the reality is for chip design for the most sophisticated chips, artificial intelligence chips, the chips that they need in their hypersonic missile which they launched last year, we are ahead of them
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we need to stay ahead of them. and we need to deny them this technology that they need to advance their military and that's exactly what we're doing. >> i am concerned that the money is great and it's a multiplier effect do we have enough know-how, enough people to build everything we need to do in order to take on, say, taiwan, which really does have tremendous -- they're our ally and i like them very much. but the amount of chipmaking capacity they have versus what we have is going to make many years to reverse how can we fast track this money, get these buildings built, get the equipment in, train the people, women too of course, to build >> yeah. so this is what i do all day every day, jim we are looking to get this money out the door starting early next year i'm hiring people right now. we have a fantastic team top-notch team and starting february 1st we want to be in a position where companies can apply for the money because you're exactly right. we're in a race and we have to
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move fast. it will be hard. we can't just build the facilities we need to attract the people. so i'm also thinking about working with universities, community colleges, even high schools quite frankly, to create the pipeline of talent right now there's about 300,000 people who work in the u.s. in the semiconductor industry we'll need double that in the next five to ten years we need to be producing a million engineers a year in the united states of america and that's the real moonshot here that i'm shooting for, which is how do we use this money to work with the private sector, with universities, to develop the workforce and the talent supply that can go, you know, keep america at the leading edge, cutting edge and maintain our competitive edge vis-a-vis china and the rest of the world? >> one way it might be is to get the people back. i thought you made an amazing move, caught the industry off guard.
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you are seeking to restrict the use of american know-how by barring u.s. persons from supporting china's advanced chip development. you're making people choose, work for the chinese or work for us did people expect that you'd do that >> no, i don't think so. it's rarely been used before but we decided it was necessary. so much of this industry is the know-how these tooling, pieces of tooling equipment are sophisticated but they require individual engineering. you mentioned tsmc so much of what makes tsmc great is the know-how. and so it's not just the hardware but it's the soft -- it's the talent. it's the human capital united states citizens should not be in china helping china advance their military to use against america. >> at the same time don't we have to be careful -- great companies -- and i know you've met with them. like nvidia. thinks the world of you. lisa sue, amd.
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they make unbelievable chips but some of them are just for gaming we don't want our companies punished too hard here because they are the gems of our entire nation >> yes and i do talk to them all. we partner with all of them. we don't want to punish them at all, actually. we don't want to punish them at all. which is why i'm working so hard and the white house is working hard to get our allies on board. you knnknow, we can't have the dutch company selling to the chinese if our companies can't so we need our allies to come on board. but look, jim, at the end of the day if china's military gets what they want at the pace that they want it, that's bad for every american company so of course we want american companies to lead in innovation, but national security comes first. and this is targeted we didn't do this on day one we've been working on this for a year it is powerful but it's also targeted to get the national security job done
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and not punish u.s. companies. >> one of the reasons why i love having you on is you are a business person. you know the golden rule, there's no give without a get. this industry got a lot from you. but they have to give up some of the ties they have with china if we're going to remain strong as a nation and they have a country to live in so i congratulate you on what you've done. you have been a stalwart from day one in making this happen. i think this is the most important business initiative we have going on in this country because i don't think we realize how much this is just national security writ large. thank you so much, secretary of commerce gina raimondo it is great when you come on the show thank you. >> thanks for having me. >> "mad money's" back after the break. >> announcer: coming up, cramer wants to hear from you your calls on the thunderous "lightning round." next
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it is time, it's time for the "lightning round." calls rapid-fire -- until you hear this sound. and then the "lightning round" is over. are you ready, skee-daddy? start with dan in california dan! >> caller: hey, jimmy cramer boo-yah! >> boo-yah, dan. what's up? >> caller: hey, this is dan, club member from concord, california -- >> yes i'm sorry. >> caller: wondering when it's time to get back into nvidia >> look, nvidia is a very controversial stock. i know it's overvalued right now.
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sometimes you to take a more than one-week perspective. i think a year from now it could be higher in value and i'm sticking with nvidia greg in colorado >> caller: hey, jim. my stock is gopro. being from colorado -- >> why don't you go amateur with gopro? i said sell that stock when i said a goat on a surfboard wearing a gopro. i said that's it, count me out 95, never looked back. steven in california stephen. >> caller: boo-yah, jim! >> boo-yah >> caller: hey, i'm holding on to some home depot right now and the fed looks so hawkish on raising interest rates still -- >> well, yes here's the way i look at it. if there's one group that can handle it, it is ted decker and his team at home depot but that does not mean it won't go down. i think the fed is directly targeting renovation and building of homes. and that means it's home depot's wheel house. but you have to stay the course and know that it worked in 2008 and it will work again but you've got to stay the
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course i'm going to go to david in indiana. david! >> caller: yeah, this is long-time watcher and a first-time caller. >> go colts. >> caller: extremely positive top line data results for iomad b in first stage and today's positive results in the first stage actamav a slash klag m drug for acute myeloid leukemia i would like your views on the future of actidium >> it's an interesting spec. i don't like hyping phase one. but i do think they have some interesting formulations let's go to alexander in connecticut. alexander. >> caller: hi, jim how are you? >> i am good, alexander. how are you? >> caller: good. thank you for having me on the show, jim. >> of course >> caller: i am a current csu
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student and i'm researching potential upcoming stocks in the market i wanted to ask you about the projection of the lucid stock. i personally -- >> lucid is losing a huge amount of money i don't recommend stocks that are losing money on "mad money." and the ones that i have for my charitable trust that are losing money are equally as troubled. that's just the way i am that's my view i've been right -- i've been saying this since november 1 of last year and i'm sticking with my view. i'm going to dean in maryland. dean >> caller: hey, jim. how are you? >> i'm good, dean. how about you? >> caller: oh, can't complain. hey, jim, look at wabash national, ticker symbol wmc. wanted to get your opinion thank you. >> very, very strong company i know it's up a great deal. but this is exactly what's most in demand, which is the kind of trailer stuff that they make so i can't back away from it at all. i think it's a winning idea. stephen in pennsylvania.
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>> caller: jim, how are you doing? calling you from ardmore triple boo-yah, one for you, one for the eagles, one for the phillies let's go phils >> it's a trifecta boo-yah what's going on? >> caller: a week or two ago you mentioned some of the cannabis stocks nothing really happened until this past monday there was a bit of a bump from i guess a congressional message. when is the right time to get back in? is it post-election? >> i'll tell you why now because i don't know if you saw that opioid settlement but all that could have been avoided if this country had just been open-minded about cannabis and i just think that tilray, canopy, their time has come. right now we poison people with opioids and we're all paying a price and we never would have had that happen had we been more open-minded about something that is not addictive so i say buy tilray. and i will welcome -- i'll welcome irwin simon. first time, long time. let's go to nick in texas. nick >> caller: boo-yah, jim. this is nick i know your eagles tonight will
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be undefeated. i just wanted to say that. >> thank you nice guy >> caller: stock for you you keep recommending it sofi >> i've been wrong kind of like harrison ford in the movie "witness." but i've been liking it down here and they've had a great quarter. so i don't understand. i'm willing to back anthony knotto right here right now. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: after the break, up is down, down is up seesawing sectors might be making you queasy. but cramer cracks the conundrum. next
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good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. (in a whisper) can we even afford this house? maybe jacob can finally get a job. the house whisperer! this house says use to see homes in your budget. you're staying in school, jacob! to each their home. what if “just an idea” could become a family tradition? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪
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all right. get this as of this moment my charitable trust portfolio now owns more oil than semiconductors. if you told me that would have happened a couple years ago i never would have believed it although given how both groups have behaved this year i wish i would have made the swap sooner. sure could have helped the club. oil can deliver up side surprise
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after upside surprise while the semis keep giving disappointment after disappointment there's two stories here let's start with the first the twilight of traditional semiconductor stocks what makes this so stunning is at the end of the day microchips, not software, remain at the heart of america's technology dominance now, we had secretary of commerce gina raimondo on the show earlier talking about the chip act, the legislation i championed from day one because at the time we had a chip manufacturing shortage in this country. but unfortunately many in the semiconductor industry didn't understand what was needed both during the pandemic and now in the post-pandemic world. they were totally thrown off their game by covid. for example, when we went into the lockdown there was a huge surge in demand for personal computers and the chip makers went all in. on what they presumed was a new long-term theme. unfortunately, it was temporary. there was only so many computers you could buy while you worked from home. we got a spieblg in demand when millions had to work from home so the semiconductor companies started churning out pc chips like there was no tomorrow they thought something big had changed. but the demand was ephemeral
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they got tons of double orders then they ended up with way too much inventory, sloshing around in the channel as people stopped buying computers plus there was no place to go with all that excess inventory you heard from cristiano amon, ceo of qualcomm. so it just got dumped anywhere they could put it frankly. and that put immense pressure on prices consider the channel to be a black hole, a mausoleum of manufacturing, and none of these chip makers were embalmed in from intel to micron, amd, qualcomm, nvidia, all favorites of mine. at one time or another what else dragged down the semis? chinese demand for chips used to be voracious but even that got sapped as people stopped shopping over there once the country's zero covid program ground the economy to a halt people stopped sitting on couches playing video games and moving outdoors living the autos caught fire during the pandemic, right? they desperately needed new chips, although specifically what was needed was what's known as dumber chips with smaller
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margins. the semiconductor companies are busy chasing high performance markets. they wanted big gross margins. meanwhile, the outfits that actually made these chips feared being whipsawed by a shorter pandemic they didn't gear up two years ago because they didn't have faith in the demand. and boy, did they lose out but so did we. they could have made fortunes allowing the automakers to produce more cars. and that's putting some downward pressure on inflation, maybe even helping our frnd jay powell unfortunately, now that they're finally making enough of these dumb chips the fed slammed on the brakes in the auto industry by making it much more expensive to get financing i could go down the whole list but what matters is the pandemic fooled these semiconductor sets more than just about any other industry it's why we see these endless down side surprises from so many chipmakers that used to be unstoppable for the better part of the last two decades. the high inventories will eventually be worked off of course but who knows when? we've sold these stocks for our charitable trust yet we still own too much of them, which is irm. in contrast the oils keep
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putting up terrific upside surprises. take a look at conoco phillips today up more than 5% after a much better than expected quarter and a big boost to the buyback, taking it from 25 billion to 45 billion. that would let them repurchase more than a quarter of the shares conoco's just one of the many oil companies that have shocked people with tremendous numbers even as the price of crude's come down substantially from its highs weighed down in part by the president opening the speg ott on the strategic petroleum reserve. imagine what will happen once uncle sam runs out of oil, which is likely next year at this time if this pumping keeps up this is a market where you're punished for owning a brilliant innovative company like qualcomm and can make fochds by stick with the most prosaic of all oil companies. i don't like this moment i'd much prefer to bet on the semis than the oils. but right now it's a bad bet i don't like to make bad bets. i want to stick with the oils as they're printing money as for the chipmaker i would much rather own frito-lay's parent pepsico or even the small
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independent cheeseball spac that is utz than the chips that taste real bad and aren't meant to be eaten or right now owned for that matter. i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money. i'm jim cramer see you tomorrow man #2: unfortunately, we had to shut down the strip in las vegas. woman: right now, we're seeing these casinos shutdown coast to coast. lee: when las vegas went dark during the pandemic, our screens lit up. ♪♪ for locked-down consumers... a new range of apps made betting, gaming, and even investing easier than ever. my friends personally, sports betting or investing, any way they can make a quick buck. oh, we need to miss. lee: you bet a lot? dabbundo: yes. you bet often? i do, almost every day. lee: for a generation raised on smart phones and influenced by social media...


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