Mad Money w/ Jim Cramer 1/14/26

Summary

Mad Money w/ Jim Cramer – January 15, 2026

Podcast: Mad Money w/ Jim Cramer
Host: Jim Cramer (CNBC)
Episode: 1/14/26

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Episode Overview

This episode of Mad Money finds Jim Cramer unpacking a pivotal moment for Wall Street as the market features the "wrong leadership" — with defensive consumer stocks and oils rallying, while growth and cyclical names falter. Cramer dives into the implications of proposed credit card interest rate caps, dissects the mixed reaction to strong bank earnings, spotlights a resurgence in "old tech" stocks, and features an in-depth interview with Biohaven CEO Dr. Vlad Coric on innovative biotech frontiers. The renowned Lightning Round delivers rapid-fire stock takes, and Jim closes with enduring advice on trading versus holding, especially for growth and cyclical stocks.

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Main Themes

• The dangers of market leadership shifting to defensive sectors and oils
• Concerns over potential credit card rate caps and their economic implications
• Analysis of major bank earnings and their surprisingly negative market reactions
• The comeback of legacy tech firms (IBM, Cisco, Intel)
• Exclusive interview with Biohaven’s CEO on biotech innovation
• Distinction between trading and long-term investing in various stock categories

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Key Discussion Points & Insights

1. Market Leadership: Why It Matters

Timestamps: [01:40]–[09:14]

• Cramer opens by noting unease in the market: while indices are only modestly lower, the "wrong stocks are going higher."
• Ideal Bull Market: Growth stocks and banks should be leading, indicating economic expansion and optimism.
• Current Reality:
  • Consumer Packaged Goods (CPG) and oil stocks are rallying, which historically signals fears of recession and economic headwinds.
  • Bank stocks are “in a state of free fall,” regardless of earnings.
  • Notable quote:

    “When you see [Procter & Gamble] rallying on a bad number, it’s a real tell things could go south.” – Jim Cramer [08:38]

• Policy Risk:
  • President’s push to cap credit card rates at 10% is spooking investors, as it could “ensure that the economy goes bust.”
  • Even if unlikely, the threat alone is driving money out of financials and hurting sectors dependent on consumer credit.
  • Cramer’s concern: “If you cap credit card rates … most people simply won’t qualify for credit cards.” [05:20]

2. Lightning Round – Listener Q&A

Timestamps: [09:14]–[10:28], [41:05]–[43:18]

• Rapid calls on individual stock names.
  • Southern Copper: Too late to buy after a big run. [09:34]

    “I got to tell you, Brett, I think you’re late. I can’t condone it.” – Jim Cramer [09:34]

  • AutoZone: Recent decline is overdone; suggests buying.

    “This company always pivots and always pivots well. I’d be a buyer.” – Jim Cramer [10:22]

• Additional segment at [41:05] features calls about Babcock & Wilcox (wait, up 30% already), and Mountain (needs to make money, “stock is just awful”).

3. Bank Earnings: Good Results, Bad Reactions

Timestamps: [13:08]–[21:04]

• Major banks (JPMorgan, Wells Fargo, Bank of America, Citigroup) reported strong or solid quarters, but stocks sold off sharply.
• JP Morgan: Solid results, but CEO Jamie Dimon's “Confucius-like” warnings about geopolitical and deficit risks rattled markets.
  • Quote:

    “Jamie warned that ‘geopolitical is an enormous amount of risk.’” – Jim Cramer [14:48]

• Wells Fargo: Missed expectations largely due to cost-cutting and severance.
  • Cramer supports CEO Scharf, but short-term doubts after “legitimate miss.”
• Bank of America: Numbers “astounding,” but stock down 4% out of “guilt by association.”
  • Quote:

    “I think this is really fine quarterback, maybe the best. ... I’m pronouncing it innocent.” [18:47]

• Citigroup: Delivered strong results, benefiting from turnaround efforts; now “too cheap to ignore.” [20:35]
• Bottom Line: Cramer advises patience, sees pain for another week or so, but is optimistic longer-term if policy threats recede.

4. Old Tech’s New Rally: Off the Charts with Bob Lang

Timestamps: [22:45]–[31:29]

• Cramer, with chartist Bob Lang, analyzes IBM, Cisco, and Intel as standout performers among legacy tech — now retooled for the AI era:
  • IBM:
    • Breakout above resistance, positive momentum, strong hybrid cloud and AI business.
    • “Not too late to buy IBM.” [25:08]
  • Cisco:
    • Rebounding after December decline, set for further gains if technical levels break.
    • “I think you buy Cisco right here.” [28:56]
  • Intel:
    • Benefiting from government and Nvidia’s investment, on an uptrend but close to overbought.
    • “Intel’s making a run at $55… could see it eventually going … into the high 60s.” [30:21]
• Quote:

  “2026 could be the year of old tech companies that have found a place for themselves in the modern world.” – Jim Cramer [30:58]

5. Exclusive Biohaven Interview: Innovation in Biotech

Timestamps: [33:19]–[40:44]

• Guest: Dr. Vlad Coric, Chairman & CEO of Biohaven
• Key Points:
  • Mission: To develop paradigm-shifting therapies as if “family members of ours are suffering from those diseases.” [33:33]
  • Lead programs in Precision Immunology, Obesity, and Epilepsy:
    • Novel obesity drug (T Alpha) aims to reduce fat but increase skeletal muscle mass.
    • Degrader technology targets disease-causing antibodies without immunosuppression; first human data in kidney disease (IgA nephropathy) is promising.

      “We’re able to target disease-causing pathogens in your blood and degrade them and not touch anything else.” – Dr. Coric [36:19]

    • Epilepsy drug class (KV7 activators) aims for efficacy with fewer side effects.
  • Resilience after setbacks: Focus on a diversified pipeline.
  • Funding: Recent capital raise oversubscribed, notable new investors.

    “Just last week we got contacted by a big fund who took 10% of the company, Janus Henderson.” – Dr. Coric [38:57]

  • Dr. Coric addresses competing against big pharma by referencing past success with migraine drug Nurtec ODT.

    “We did it before…we think we can do it again.” [37:53]

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Notable Quotes & Memorable Moments

• On market signals and caution:

  “That’s a real tell that things could go south.” – Jim Cramer [08:38]

• On proposed credit card interest caps:

  “If you cap credit card rates at 10% ... most people simply won’t qualify for credit cards.” – Jim Cramer [05:20]

• On trading vs. holding:

  “When you find some amazing secular growth stories ... you want to be the holder, not the trader. You want to make dollars. Leave the pennies to the traders.” – Jim Cramer [45:13]

• On the new tech rally:

  “2026 could be the year that legacy tech ... make a new name for themselves.” – Jim Cramer [30:58]

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Segment Highlights & Timestamps

| Time | Segment / Topic | Key Takeaway | |----------|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------| | 01:40–09:14 | Opening Monologue: Market Concerns | Wrong sector leadership signals investor angst over economy, credit policy risks weigh on banks and dependent sectors. | | 09:14–10:28 | Lightning Round (Pt. 1) | Calls on Southern Copper, AutoZone; be wary of buying parabolic stocks. | | 13:08–21:04 | Bank Earnings Deep Dive | Major banks posted strong quarters but sold off; investors spooked by policy risks and high expectations. | | 22:45–31:29 | Charting the “Old Tech” Comeback | Technical and strategic reviews of IBM, Cisco, Intel — old tech is new again, and still offers upside. | | 33:19–40:44 | Interview: Biohaven CEO Dr. Vlad Coric| Company rebounds from pipeline setbacks, focusing on precision immunology, innovative obesity drugs, and epilepsy therapies.| | 41:05–43:18 | Lightning Round (Pt. 2) | More stock takes: Babcock & Wilcox (wait); Mountain (avoid); everyday wisdom from callers and Cramer. | | 43:32–47:44 | Trading vs. Holding Wisdom | When to “schnitzel” cyclical stocks, but always hold “hero” growth stocks like Nvidia. |

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Final Takeaways

• Maintain hedges (Procter & Gamble, Johnson & Johnson, Merck) amid market uncertainty, especially if defensive sectors lead.
• Policy overhang (credit card rate cap) makes banks volatile near-term but don’t panic sell if the economy holds up.
• Don’t chase parabolic moves; be selective and patient, especially with cyclical names.
• Old tech (IBM, Cisco, Intel) represents resilient value—still offers room to run thanks to smart reinvention.
• Trading around positions suits cyclicals; hold secular, best-of-breed growth stocks tightly for long-term wealth creation.
• Biohaven is a case study in biotech resilience—innovation, diversified pipeline, and fighting with giants.
• “Bull markets are summer. I promise I’d find it, just for you, right here.” – Jim Cramer [47:35]

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For anyone who missed the episode, this summary captures the urgent tone, practical wisdom, and actionable insights Jim Cramer brought to January’s uncertain markets and illustrates why, in his words, “it always gets better.”

Transcript

[A]

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[B]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. If you want friends. Hey, I'm just trying to make a little bit of money here. My job is not just to entertain, but to explain. So call me at 100-743-CNBC. Tweet me Jim Cramer. You never want to see what's happening right now in the stock market. You see the market's developing a thesis and it's not the thesis you and I were hoping for. You can't really spot it in the overall average as Dow slipping 42 points, SB losing 0.53% by the Nasdaq, tumbling 1%. But underneath, it's there and it's not good. What am I talking about? Simple. The wrong stocks are going higher. Let me explain. In a good market, you want a broad rally led by growth stocks with the cyclicals taking a backseat but still going higher. It's just time. For example, it's okay if the Magnificent seven rally, by the way, also with their adjacencies and accoutrements, it would help it if the Bed Dragon software stocks could move higher too. They've been awful techs. A used percent of the SB500. It makes for a tremendous leader. I also like to see the transports rally because they represent the health of the economy. Most of all, I like to see the bank stocks go higher. When the banks are winning, it tells you businesses are expanding, need loans, companies are coming public to raise capital. We have mergers and acquisitions galore. And individuals are taking out loans, maybe to buy houses, maybe to renovate. At the same time, I don't mind when high growth stocks like Eli lilly with its GOP Dash 1 diabetes and weight loss drugs keep moving higher. That's very positive. What I just described is the jovial bull market we had most of last year. Today, though, we saw something very different. This was a market where the winners were consumer packaged, good stocks and the oils, the worst possible leadership. The consumer package, good place are recession stocks. The oils are zero sum. That's the kind of relationship we have in the rest of the economy. At the same time, the banks are in favor of free fall whether they missed earnings that were just reported or not. I'm going to have more on that group later. Problematic, but let's just say the market's reaction to these numbers was just plain miserable. We'll go into the reality of bank earnings, but there's a clear perception created by the bankers that if the President puts a cap on credit card rates like he says must occur and he's going to make happen, the entire economy will be trash. I don't disagree with him. If you cap credit card rates at 10% and people, most people simply won't qualify for credit cards, the default rate for these things is 3 to 5%. It's just not worth the risk for the banks to give you an unsecured loan. If they can't charge extortionate interest rates, if, well, you spend some time out paying them and not paying them back immediately. The only people who qualify for credit cards are the ones who don't need the money. And that is a recipe for economic disaster. Sell, sell, sell, sell, sell, sell, sell. Now, I don't think something like the Capitol really happened. You needed Congress to make the law. And if Trump tries to browbeat the banks into losing money, they probably won't roll over. But it's still a risk and it's not something shareholders want to worry about. And of course, it's not just bad for the banks, really bad for retail and traveling, a host of other discretionary products. I think that today's market reflects Trump's persistence on this issue. He's not going away. You'd think capping credit card rates would be more of an Elizabeth Warren Senator, Massachusetts Kind of thing. She thinks, by the way, that all the bankers are like Potter and it's a wonderful life. It's a surprise to see this coming from a Republican. But then again, when it comes to credit card business, I imagine most politicians think that Tony Soprano had more reasonable rates. So again, I think this policy is unlikely. But the fact that people are seriously discussing it enough to scare investors away, right? I think it's. I think it's driving money out of the banks and a whole lot of other sectors. We also live in a points economy. Now the banks don't make much of anything on points but the retailers in any of the myriad outlets outfits that offer them would see their businesses take a severe ugly hit. It would be a nightmare. It would be like Saks all over again every bunch of other places. So no credit for tens of millions and no points either. I don't know, that seems scary to me. The presidents always talk about booming economy but if you tamper the credit card market, I got to tell you're ensuring that the economy goes bust. And that's why I'm so dismayed to see that what we call the CPG is the consumer packaged goods stocks running today because that's exactly what you buy if you think the banks will more or less withdraw from the credit card market to cope with a very damaging policy. So let's talk about Procter and Gamble and then let's talk about a pharma company, jj. Now here are two companies that have products that you buy no matter what you need. Toothpaste and medicine. Regardless of how the economy's doing, JJ can thrive in a weak economy. If you look at the chart of the recent action, you might think it's found some. Maybe the fountain of youth JJ deserves to be going higher, but not at this speed, not at this pace. It's only rallying like this because a lot of money managers want to bet on a slowdown. They are passing on Eli Lilly now because it has a much higher price journeys multiple and those kinds of stocks are too risky to buy. Proctors, a different kettle of fish. They've already told us the business isn't that hot and they have lots of problems. So be prepared for the worst because they told you the worst is coming, they might exceed that. Yet it's stock went up big today. That's because even if it's bad, Procter and Gamble is still going to do fine versus the cyclical stocks which are going to get crushed. When you see this one rallying on bad number, it's a real tell that things could go south. We bought Proctor for the Travel Trust totally just as a hedge, hoping that we don't get a weaker economy on a day like today. It's coming in very handy. Maybe you should have a hedge too. Normally I'd say that this minor cord might just last a little while. Couple days until we put the bank, credit, credit card assault to bed. Or we get more great home sales numbers that we had this very morning. I'd assume this sell off was just temporary. Unfortunately, there's another wrinkle. Oil looks like it's headed higher even if it finished the day in the red because the President's $50 barrel plan is suddenly going the wrong way thanks to the newfound uncertainty out of Iran. And the facts on the ground, Venezuela. You take out Venezuela's leaders and oil goes lower. You take out Iran's rulers and you better believe it goes higher. The result, the real leaders in this market are Exxon and Chevron. Both have tremendous CEOs, both have long historic records, and both represent the very problematic leadership. We don't want the type that keeps you and me up at night. And not just because my wife Lisa just had her knee replaced and there's no sleep to be had without Oxy. And I am not talking about Occidental Petroleum. Lisa's no sissy though, and she wouldn't take the oxy anyway. The problem with the oils is that energy costs are attacks on the entire system. So when this group wins, it means everybody else is losing the bottom line. We have to hope that these two new leadership groups aren't long lasting. I don't think they will be. You also need to have some hedges, some proctor, some jj. Hey, listen, I'll throw in Colt Gleat and Merck if you want to. Just something that keeps you in the game until things get better. You know why? Because they always do. Hey, I want to go to Brett in California to start. Brett.

[C]

Jim, thank you so much for adding my call to your show today.

[B]

Oh, Brad, you called in. What's up, Jim?

[C]

I have a bite. My colleague, my colleague Matty O'Reilly.

[B]

He.

[C]

He's a first time investor and we were discussing metals. He likes, he likes silver and aluminum. I started a position in copper. Southern. Southern Copper. Want to see if I should keep adding to it?

[B]

Look, I don't mind Southern Copper, but copper has run a great deal and you've got what I call a parabolic move in Southern Copper. It was up $5 today. It's no longer got a cheap earnings up 20, cheap dividend. It's 1.98% yield is all you get. The stocks up 25% this year. I got to tell you, Brett, I think you're late. I can't condone it. How about your friend? Let's go to John in Florida. John.

[C]

Hey, thanks, Jim. I was wondering if you could give me an update on AutoZone. I've been watching it for a while and I watched it go down till the end of the year and then a little bit more in January. Last week I couldn't take it anymore. I bought some and I'm wondering if you could explain why it's down to like a 23 PE when O'Reilly is still a 33 PE and their earnings are and growth are still good.

[B]

Yeah, people didn't like that last quarter. And the reason why the stock is going down is this company is so darn consistent that when it reported an inconsistent number. I can't believe the jailbreak. I think they're fine. I think the next quarter is going to be better. This company always pivots and always pivots well. I'd be a buyer. We have to hope these new leadership groups don't stop stick. But it's always worth having some hedges to keep you in the game until things get better. I suggest Procter and Gamble on Mad Money tonight. Earnings season has officially kicked off for the big banks, but Wall street didn't like what it saw at all. What went wrong with this? I'm digging in the situation then. Tech stocks have struggled to find their footing in the tape, but there's one corner of this sector that's actually working. I'll reveal the names when I go off the charts. And biohaven BHVN had some positive news to share at the JP Morgan Health Care conference. Maybe better than last year's disappointments. And we had a chance to sit down with the company CEO while we were out in San Francisco. You do not want to miss this exclusive, so stay with Kramer.

[A]

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[B]

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[A]

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[B]

Thy ticket lady Jennifer of Coolidge. Well, many thanks, good sir. Here is my Discover card. They accept Discover at Renaissance Fairs?

[D]

Yeah, they do here.

[B]

Discover is accepted at the places I love to shop. Get it with the times. With the times. You're playing the loot. Yeah, and it sounds pretty good, right? Discover is accepted at 99% of places that take credit cards nationwide. Based on the February 2025 Nielsen report. In the past two days, we've gotten results from all the big national banks. J.P. morgan, Wells Fargo, bank of America and Citigroup. I tell you, the market just can't stand it. In just the last two sessions, JP Morgan stock is down more than 5%, bank of America's off almost 6%, Citigroup shed over 4%. And Wells Fargo has just been hammered. So what the heck is going wrong here? I got to tell you, it's not the numbers. Most certainly not. You know that the actual numbers were good. I think it's a combination of high expectations and some cautious commentary, as well as the aforementioned President presidential assault on credit card debt. When JP Morgan reported yesterday they posted a solid top and bottom line beat. Excluding a $2.2 billion reserve that they took related to the Apple credit card and portfolio that they got from Goldman Sachs, these guys delivered a 7% increase in net interest income with 70% growth for their markets Business. Fantastic. That's mostly sales and trading, just stock trading was up 40% alone. These are amazing. But the investment banking business came in light, down 5% year over year and 11% from the previous quarter. That weighed down by weakness of both debt and equity underwriting. And that was just plain bad. Of course, even when the numbers are pristine, the reaction of J.P. morgan's earnings hinges on the conference call commentary from CEO Jamie Dimon, who's become the almost Confucius like figure for the financial industry. And he often says things that really do freak out people. Something that happened again yesterday. This time Jamie warned that I'm going to quote Geopolitical is an enormous amount of risk, end quote. And he also had some things to say about ballooning budget deficits in the United States, around the world. Maybe that's why after opening flat, you know, it was actually up $5 in pre market trading. The stock ultimately tumbled more than 4% yesterday before slipping another 1% today. I think JP Morgan stock will be fine. A lot of this was simply because the stock had rallied 35% over the previous 12 months before yesterday's report. In other words, it was too for a breather. What about today's reports from the other three bigs? Okay, Wells Fargo, which we own for the Chapel Trust, supported top and bottom line. Miss. While sales were up 4.5% year over year and earnings grew by 13%, they still came in light, as did net interest income. It was disappointing. That said, a big chunk of that earnings shortfall came from higher severance expense as Wells Fargo, by the way, laid off a lot of people to cut costs. When you drill down, the business is doing pretty well, just not quite as well as Wall street and I were hoping. Well, as far as efficiency ratio, a key measure of costs, fell from 68%. 64% lower, by the way, is better when it comes to that measure because it costs its cost divided by revenues. But the analyst spoiled by CEO Charlie Sharp's relentless cost cutting. We're looking for 62.5%. Just not good enough. Now imagine that told a story of a bank that's been unshackled. After last year's removal of the Fed mandated asset cap of 2018, Wells Fargo is now able to grow more aggressively in areas like credit cards and investment banking. And again, you've got to keep in mind that the stock was up, like JP Morgan, 35% over the preceding 12 months. That's one reason why we sold some Wells Fargo for the chopper sources yesterday. Even in the teeth of the hideous decline. More on that later. I still believe in Wells Fargo longer term, but the stock is finished. The stock has to finish going down, and I don't think it is yet. All right, how about bank of America, which look fantastic. They posted a small top and bottom line beat with a 7% revenue growth, 18% earnings per share growth. Astounding. Their net interest income was up 10%, also slightly better expected. Yet the stock still sold off 4% today. I think that's extreme. Don't let that mislead you. Back in the market report, a solid quarter, all four of the business lines. They beat revenue expectations with global wealth and Investment Management and global markets both up over 10% year over year. I'm not used to seeing that. Bank of America also sounded confident about 2026, guiding for 5 to 7% net interest income growth this year. CEO Brian Moynihan said, quote, while any number of risks continue, we are bullish on the US economy in 2026. End quote and thank you. It's tough to poke holes in this bank of America quarter. Sure, the company got a boost from lower than expected credit charges which helped drive their slightly better than expected earnings beat. Like JP Morgan, their debt and equity underwriting was light, that was disappointing. But really as a whole, I think this is really fine quarterback, maybe the best. And the stock only got hit today because Wall street paints out with a broad brush. This decline was, I think pure guilt by associate association. I'm pronouncing it innocent. Last but not least, there's Citigroup which delivered another good solid quarter. The latest in a long line of no drama results under CEO Jane Fraser. Excluding a one time charge related to the bank sale of its Russian operations, Citi saw 8% revenue growth while earnings per share were up 35%. Citi had the best interesting come banks up 14% also ahead of expectations. But as with bank of America, they benefit from a smaller than expected provision for credit losses which signals confidence in the economy. But it's not an operational number below the top lines. Where it hurt was mixed bag. Citi services business and its banking business both be so did the markets business, but that was driven by fixed income. As equity trading fell a bit short, the company's personal banking in the United States had a shortfall and I was hoping that would start cutting. I like that. Business needs to really climb as did the wealth unit. Though the wealth shortfall was very small. Basically for Citi, this was another professional quarter and for a turnaround story like this, it would have normally been enough to send the stock roaring. Remember, Citi's much much much much much much three marches cheaper than its peers, even after shooting up 66% last year. But today, with the overall market down and Wall street deciding these bank earnings were just yawners at best, another solid result from Citi wasn't enough to send the stock up. We're all used to seeing it jump after earnings. One of the more interesting tidbits about Citi today didn't even come for the quarter. In an internal memo sent to employees which was then picked up by basically every major financial News outlet, Frazier CEO said that her bank's transformation efforts are more than 80% complete memo also included news about more layoffs and some interesting commentary about how Citi's adopting AI. But it matters that the bank's self help efforts, which have moved the stock so much, are nearing completion. I got to wonder how long Citi stock can keep running if the company's no longer being graded on a curve. For now though, I think it's just too too cheap to ignore. It's probably the first one I would buy of the ones I just met. A bit bank of markets to they're both, they're both good. Now here's the bottom line. The big national banks have all reported and though we've seen generally strong results, that wasn't enough to prevent Wall street from turning against these stocks. I'm not sweating this too much because the banks have had some major runs here, so I think they were due for a pullback after all the numbers. My verdict is that these stocks can keep working this year as long as the economy doesn't deteriorate from here. But they are taking a breather after coming in way too hot. We get this credit card rate capped to the sidelines. The rally will start even maybe sooner than I expected. I expect some pain for the next at least we maybe 10 days. Money is back after the break.

[A]

Coming up, could the stars of the dot com era be rising again? Kramer's going off the charts to see if what's old is new again next. Finding the music you love shouldn't be hard. That's why Pandora makes it easy to explore all your favorites and discover new artists and genres you'll love. Enjoy a personalized listening experience simply by selecting any song or album, and we'll make a station crafted just for you. Best of all, you can listen for free. Download Pandora on the Apple App Store or Google Play and start hearing the soundtrack to your life.

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[A]

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[B]

Until last fall, this market was absolutely in love with all things artificial intelligence. Since though it's been a little more conflicted by AI stocks not particularly enthusiastic about enterprise software either. Holy cow, they're thinking about Adobe service now. But there's 1.1 part of tech it really has been holding up surprisingly well. You know, it is old tech companies that have reinvented themselves for the modern world like IBM, Cisco and even Intel. That's why tonight we're going off the charts with Bob Lang, the founder of ExplosiveOptions.net also of course the author of know your options in order to take a closer look. Bob, I've known Bob for a very long time and I thought this was a really cogent set of charts. Let's take them one by one. Start with IBM which has become an incredibly strong performer. The stock that's nearly tripled since late 2022 when it broke free from its old all time highs. It's also rallied over 40% over the last past 12 months. Horse, take a look at all the daily charts here because this paints a very encouraging picture. First line points out that IBM has always faced challenges from the new new line of tech, whether we're talking about Dell, personal computer, Microsoft Software, Amazon, Oracle and cloud computing. But IBM stood tall in the face of change and transformed itself into a juggernaut. They've got terrific hybrid cloud and AI businesses, a very strong consulting business that's also bringing a ton of AI. And yes, they've got quantum computing even better. At this point, IBM is putting up its strongest sales growth in years. Their CEO Arvind Krishna is top notch and you know what? He sees the future better than almost all CEOs, not just in tech. So what does the chart tell us? Okay, IBM stock rallied like crazy into last November. You can see this thing was just powerhouse, okay? And then it stalled out and started to pull back. But over the last couple of months the stock has put in what we call a double bottom, really good sign and it's now rebounding like crazy. Lang points out that IBM has broken out above its 50 day moving average and they Were looking at the blue, you can see it broke right through there. Just with forces weak. The Stock's now at $309. He sees a ceiling resistance. $315 with another potential ceiling running from, excuse me, 335 to $345. That's not on the chart, but it would be up here. Okay. If it can break out again. When a stock rockets higher, then trades sideways for a while and starts running again, which is where IBM is right now, that usually means there's more upside. We're witnessing the next leg higher. Not too late to buy IBM. What else? When you look at the moving average convergence divergence or what we call the MACD line, which is an important momentum indicator, IBM just made what we call a bullish crossover and that's the black line going over the red right there. When that happens, this is one of the most reliably positive signals out there. At the same time, there's the unbalanced volume. This is all the way down here, obv. This is a volume based technical indicator that adds volume on up days and subtracts volume on down days to gauge buying and selling pressure. I really like this index. And as you can see with IBM, the on balance volume line just keeps making new highs. Even better. The relative strength. Now we're going RSI index at the top. Another key momentum indicator is still a long way from being overbought. That would be all the way up here. Then we'd have to be worried. When IBM got overbought in the fall, it temporarily lost its mojo. But it can really rally a good bit now because the relative strength index is saying it can go to higher levels. That's where it tends to stall out. I like the last quarter from IBM very much. And I bet Christian can deliver again when the company reports later this month. It's inexpensive relative to its growth rate and runs very lean as Christian runs a very tight ship. How about. And this one makes me so happy because it's a charitable trust in Cisco. Yes, the online networking play is a little different. Cisco spent years struggling to reinvent itself. Can see years there. And this is just from July, but trust me, and admittedly came late to the party. The stock didn't really start running until the second half, 2024. Lately though, Cisco's gotten zapped together, regularly picking off new clients from its competitors. Might be the old days when the company is a fierce competitor that regularly drove its rivals to the brink of destruction. Even though it took roughly 25 years for Cisco to regain its dot com era highs. Wow. Was the largest cap stock at one point in the country. In the market. The company's been putting up stellar numbers over the past few quarters. I think it's finally found its place in the modern world. So what's happening in the daily chart? All right. After a strong performance in the first 11 months of last year and here you can see that we just had some nice, nice performance. Okay. This stock got hammered in December. It was really kind of surprising ultimately filling in the gap from its big rally in November. So goes up, goes up, fills up this gap. Now though, Cisco started bouncing off its lows and line thinks it's ready to roar. Although the stock has to break through its 50 day moving average first. So it's got to take out this line. Could happen. That's almost two bucks from where it's currently trading. Of course the volume trends have been mediocre here and the on balance volume is just starting to turn higher after taking a real beating. Still needs to go higher frankly. Okay. Lang notes that Cisco sold off hard in December on high buy and that's usually a real bad sign because volume is like a polygraph. This business. High volume means a move is telling the truth. However, he thinks that the sell off has come to an end. Thank heavens man, because this has been hit. It's been a very tough time for me in the trust with, with some of my tax and Cisco became part of it. Macd line is still flashing a sell signal but Lang believes it's bottom. Basically you see Cisco making a run at its down at its downtrend line and if we get a few good days, the bulls are poised to take control. He's betting the $74 stock can change toward its old highs around $80 and then charge you get this $100. I sure hope he's right. That'll be later in the year that we already have a nice gain the trust, but I really am getting greedy. I want more points of CEO Chuck Robbins now. I've got to tell you, I think that we had a little leveling off. I think you buy Cisco right here. Finally, let's talk intel, which is way too hot for me. Last year's most surprising comeback story, the chip maker seemed like it was being eaten alive by Nvidia and amd. The former CEO Pac Gelster practically ran the ground with his ambitious plans to build semiconductor manufacturing facilities. It got to the point where intel look like one or a lot of people worried about this national treasure. But then they brought in Kramer fave lip Bhutan CEO and he has managed to wrangle a bailout from the federal government which took a nearly eight, nine billion dollars stake this summer. Really good prices once Uncle Sam got on board even in video made a $5 billion investment in Intel. The stock's been on fire ever since because once they cleaned up the balance sheet intel instantly became a much better story and the investors had a much better bottom line. When you look at Intel's daily chart you see a textbook uptrend. The stock made a terrific move higher in September. It's been making a pattern of higher highs and higher lows ever since. The macd line is now flashing a buy signal. Remember what I told you that when it goes over that line it's bullish. The on balance volume has been steadily marching higher. Nice progression there. The only fly in the ointment for intel is that the relative strength in this RSI has reached overbought territory. We don't want it over that line. Going to have to mark some time. That's why I say it's been too much rocket ship but likes the stocks can stay overbought for weeks before the share price starts coming down. So I think we're okay here right now he thinks that Intel's making a run at $55. Oh man. And could see it eventually going into 2021. Highs in the high 60s. It's a shocking and perhaps only the federal government and Jensen Huang who did the investing for Nvidia really caught the bottom. By the way Jensen, very good friends with with the 10. Here's the bottom line. The charts as interpreted by Bob Lang suggest 2026 could be the year of old tech companies that have found a place for themselves in the modern world. Which is why he likes IBM, Cisco and Intel. It's why I think you should be buying Cisco right now. I think Bob Lang is going to be right. I want to take calls. I want to go to fatty in Ohio. Fatty.

[C]

Thank you for taking my call. Service now is a one year low. It is not time to buy it yet.

[B]

Okay, so ServiceNow. Wow. Is it a one year low? It is down 100 bucks. Holy cow. All right, so why ServiceNow going down? Enterprise software, Whether it be. Whether it be Adobe which has really been hammered, whether it be Salesforce which is not doing well. The chart that is for ServiceNow it's pretty awful. I am not going to call bottom of service now. It is just too darn hard for me. The charges interpreted by Bob Lang suggest 2026 could be the year that legacy tech I'm talking IBM, Cisco, my favorite and intel make a new name for themselves. I'm inclined to agree with them. Much more made money including my JP Morgan Healthcare exclusive with Biohaven after selling its lead asset neurtech ODT to Pfizer of which I was a huge user by the way. Full disclosure a few years ago I'm learning more about what the company has in its pipeline, how it's positioning for future growth, then close. Viewers know I am not a fan of trading, but there's a trading strategy when dealing with a cyclical stock that could help make use of money. I'll reveal it and of course all your calls rapid fire in tonight's edition of the Lightning round. So stay with brain. This week we got a slew of announcements from Biohaven, the drug company created when the old Biohaven Pharmaceuticals sold its lead asset to Pfizer about three years ago. The remaining Biohaven has a bunch of drugs in development for neuroscience, immunology and oncology and they're making good progress with number of their pipeline programs. Although last year was a tough one for the company as it had some very high profile failures in some key clinical trials. Earlier this week when I was out in San Francisco for the J.P. morgan Health Care Conference, I got a chance to speak with Dr. Vlad Schorz. He's the chairman CEO of Biohaven. Take a look. Dr. Schwartz, welcome back to Man Money.

[E]

Jim, it's great to be with you here again at the JP Morgan Health Care Conference that kick off 2026 and talk about our portfolio at Biohaven.

[B]

Okay, so Vlad, days matters. What does it mean days matter?

[E]

I'll have to tell you as a physician. Patients are waiting for new therapies and that's what drives us at Biohaven. Days matter and we talk about we want to research diseases as if family members of ours are suffering from those diseases and that's what we bring to bear to every one of our research partners.

[B]

Well, I should disclose that I have an agreement with you and it's in the fantastic deck that you have. I just want people to know that it's not about necessarily how I feel about my drug, but thank you for purchasing it. What can I say? It's about tinnitus and I'm glad that you mentioned it.

[E]

Well Jim, we're excited. Do you know that tinnitus affects up to 50 million Americans and there's no approved drug therapy? So we're really enthusiastic about teaming up and doing, we hope what we did for migraine with Nurtech, otd, we'd love to do that in the tinnitus area. And there's some really good science that we're going to advance.

[B]

Okay, so let's talk about what happened last year and how most people counted you out and that was quite wrong given all the new things you're doing this year.

[E]

Jim, this is biotech. We're here trying to advance new therapies for some really hard diseases. You're going to run into bumps in the road and that's what we do in R and D. We run studies, we get data and then we really focus on the long term and where we want to put our resources. And this next year we have three, three exciting platforms.

[B]

Go ahead, tell us you've got the floor.

[E]

Precision immunology, obesity and epilepsy are three main focuses. We also have a diversified portfolio which is important so that if things don't work out in one program, you can pivot to another.

[B]

Let's talk about obesity because yours is novel. The other guys don't have would be welcome for everyone who's. It's a better version for a lot of people.

[E]

Jim, we've seen how the GOP's have transformed healthcare. We have decreases now in all cause mortality and heart disease and diabetes and stroke thanks to these new class of agents. However they have you also lose your muscle mass and when you lose muscle mass, that's not good for healthy aging. It's also not good for bone density. We have a novel approach with a drug that's called T Alpha. It targets myostatin and Activan. And what this does and how it's different than everything else out there is it directly reduce reduces fat, but importantly it increases skeletal muscle mass. We think that's a healthier way to lose weight. And we already initiated an important phase three trial in obesity. It's reading out this year.

[B]

Are you able to fund all the things that you talk about given the nature of what happened last year?

[E]

Well, we have to be disciplined in the areas we are. And so now that we have data that's pointing us to some high probability wins in the near term on things like obesity and precision immunology. That's where we're going to choose to invest and we think there's going to be upside for patients and investors.

[B]

Talk to me about degraders. What do they do?

[E]

Jim, the degrader technology we exclusively license from Yale University is unprecedented. It's not like anything else out there. And what makes it different is we're able to target Disease causing pathogens in your blood and degrade them and not touch anything else. Other people in the field are looking at agents that lower your immune activity and immunosuppress you in a way to treat autoimmune disease. This is precision immunology at its finest. And our best example. And we presented first ever human data this week in a kidney disease called IgA nephropathy. And in that disease, there's an antibody that decreases the function of the kidney. And with our degrader, we degrade just that antibody and we leave everything else intact in a healthy immune system. All the competitors immunosuppressed patients, we think this is going to be a game changer for people suffering from IgA nephropathy.

[B]

Okay, so that's a great indication, but could there be many more? Could be a bigger drug, bigger method than we think.

[E]

The first ever human data we put out this week really validates this platform and unlocks the entire mechanism. And yes, there's a number of other autoimmune diseases that we're going after, including Graves disease, which affects about 80 million people. And in addition to Graves disease, other immune disorders like diabetes, myasthenia gravis and others.

[B]

Okay, so Graves disease, you're up against big company Amgen. When you talk about weight loss, we're talking about Lilly. We talk about Novo Nordisk, maybe Amgen. Vlad, you're a small guy. How can you take these guys on?

[E]

Jim, we did it before with Nerdtech, ODT and Migraine. We took on Abby and we are still. Pfizer has a that compound now, but it's still the number one prescribed cgrp. So we did it before, we think we can do it again.

[B]

Okay, so I did want to just talk about what it's like to in your position because you're, you're a doctor. You know, there were many articles last year which just said you don't have enough money for the R and D. No one's going to give money. The stock plummeted. What did you do to make sure that the company got back on the right track?

[E]

Jim, you have to stay focused on the patient. I've always said if we deliver and pursue paradigm shifting treatments for patients, that's going to have a successful business model. So as a company, we have to stay focused on that. And then we talk to investors about what we've learned from some of our experiences in past studies and the value of a diversified portfolio where then you can follow the science and continue to advance new therapies.

[B]

And people were happy that the money that you raised, they wanted you had to upsize the deal. Because so many people wanted it, we.

[E]

Had to upsize the deal. And, you know, just last week we got contacted by big fund who took 10% of the company, Janice Henderson. And so I think that reflects the. Our track record of success in the past and the paradigm shifting technology we have with this precision immunology degrader.

[B]

Okay, I want to go over one that I think that I won't be glib about it because I know some people who had epilepsy. What's the standard of care now?

[E]

Currently, the standard of care of the epilepsy needs to be vastly improved because you prescribe medications that are burdensome with a lot of side effects. People get somnolent, sedated, dizziness. And there's a new class of medicines we're pursuing called KV7 activators. And this quiets neurons, but does so in a way that's very selective. And we don't see the burdens of some side effects of the central nervous system. Sedation and dizziness we think we can offer. Much like Nertech that treated migraine, it didn't have new problems with other side effects. We think we can treat epilepsy without the burden of all the side effects.

[B]

I don't know. People understand that the discrimination that people who have epilepsy get, it is something people don't want to hire people who have epilepsy. And that's got to end.

[E]

That's right. It's got to end. We need better, efficacious treatments, but even more importantly, better tolerated treatments. Right. When you treat your condition, you don't want to be burdensome from side effects that interfere with your work. And that's what we're trying to pursue here with OPA Callum, our lead agents in epilepsy.

[B]

Well, look, congratulations on the comeback. Again, I want to disclose that I do have a business relationship with you to try to make it so that people can live with tinnitus. And I appreciate you willing to take this on. Just like spokesperson for the American Migraine foundation, you take on things that everybody said can't be solved. It's really terrific.

[E]

We have to do that, Jim, for patients and we have to continue to change paradigms for patients.

[B]

Excellent. That's Dr. Blad Chorch, chairman and CEO of Biohaven. Thank you.

[A]

Coming up, Cramer takes your calls. And the sky's the limit. It's a fast fire lightning round next.

[B]

It is time. It's time for the light Raco Kurt Ryan from Dwarf News Gamut Stocks that are bye bye bye sauce. I'll just be going to the course Doc watch. At that time my stepper is Griffin Fly and playing and sound and then the lightning round is over. Are you ready, Steve? Guys come for the lightning round of represent money. We're going to start with Jim in Rhode Island. Jim.

[C]

Hey, Jim Cramer. It's an absolute pleasure to speak with you first.

[B]

Right back at you by New England.

[C]

My New England Patriots to play in. My condolences to you and your Philadelphia Eagles.

[B]

I very much appreciate that. It's been a very soul searching time for me and I do wish you the best of luck for the Patriots. How can I help?

[C]

Thank you my friend. Hey, we've had a 35 year relationship that you're unaware of. I was a nuclear trained submariner, came out of the Navy and got a broker dealer to sponsor me in New Jersey in 1991.

[B]

Wow.

[C]

You and CMD have been part of my life since Kudlow and Kramer.

[B]

Love it. Thank you. Let's help.

[C]

Let's help everybody with a great deep value play. Two brother, two friends in Rhode Island, Stephen Wilcox and George Babcock. Babcock and Wilcox formed in 1867, sold the steam generator to Mr. Tom Edison.

[B]

Boy, you know, you're absolutely right. I've got to tell you. First of all, thanks for watching for so long and backbob from Wilcox. Now unfortunately it's up 30% for the year, but it is a great spec on the construction of power plants. Let's wait till it goes down a little bit and then pull the trigger. And thank you for serving. Let's go to Larry in New Jersey. Larry.

[C]

Hey Jim, how you doing?

[B]

I'm doing well, Larry, how you been?

[C]

I'm doing great, thanks. First time caller, long time listener, all about Mountain mntn.

[B]

I initially said it was good that it was able to retract that. Thank heavens. This stock is just awful. I cannot believe. I mean they gotta make. They have to make money. They have to make money or else it won't turn around. It came public at a very exciting time and it is going lower without earnings per share. And that, ladies and gentlemen, conclusion of the Lightning Round.

[A]

The Lightning Round is sponsored by Charles Schwab. Coming up, did selling shares of Wells Fargo for the charitable trust change Kramer's don't trade philosophy? He's breaking it down.

[B]

Next. Like I mentioned earlier yesterday, we sold some Wells Fargo for the travel trust. We've known it seemingly forever and I'M a big believer in Charlie Scharff, the crackerjack CEO who's navigated minefield after minefield since taking it over. Just nothing but turmoil. It's been a bumpy ride, but he's always given us comfort that will come out on top. And this year and last year have been good. Today when Wells Fargo reported, even though the numbers fell short, bit short of expectations, they continue to trend the old way in the right direction. I felt confident we were in good shape, but the conference scroll gave me some worry. Okay. Turns out it was a legitimate miss. It was a disappointment. I told club members that. I'm sure glad we trimmed the position ahead of the report. Now, you know me, I don't like trading, not at all. Unless you're a full time professional. I'm against it. But when you're dealing with a stock that's going parabolic like Wells has done going into the quarter, then no set of numbers will satisfy the market. Which is why I hate parabolic moves. And that's why it was worth selling some of the and if the stock keeps coming down, you know what we'll get to buy the shares we sold at much lower price. In the end, I still believe Charlie Sharp knows how to transform was basically consumer bank into an investment bank with a consumer bet that'll produce a higher price during multiple the secret sauce buying higher stock prices as I say in how to make money in any market. And you know what you wish that you bought the stock on weakness. So I'm glad we held onto the bulk of our position in Wells Fargo. But I'm also glad we did something called schnitzeling. Schnitzel. That means you traded around the stock by selling some stock to leave room to buy some back if the selling continues. This kind of thing is excellent when you have a cyclical stock like a bank that's levered to all sorts of unknowns like the Fed's next move or the growth of the economy or president who wants to promote business while putting a harsh cap on credit card interest rates. These are inherently boom and bust stocks. You'd be crazy not to trade around a core position. But what about the amazing secular growth stocks that I talk about? The ones that are supposed to do well regardless economy. What do you do with those? Well, those you shouldn't trade. A tremendous grower requires a tough as nails attitude where the trick is to sit on your hands and do nothing when they go higher. I just came back from the J.P. morgan 44th Annual Health Care Conference and it was big. Bombarded pretty much everywhere I went. Airport, airplane, hotel rooms, conference by people who bought in video because of this show and kept it and are now millionaires. None of these people were what I call a means. I'm glad I helped create these investors, not traders. And they got rich for owning this thing because they didn't trade. But then I had another kind of experience. We had a reverential driver out there, a terrific guy who trades Mondays and Fridays. Apparently I learned those are the best days, according to Bedmine the Wheel. And he did say he made some money in video. He made a dollar here, he made $2 there, another dollar. But he always knew how to trade out of it. And there it is for close watches of the show and of course, club members, where we have a healthy group of video millionaires quotient. You know that I always say own in video. Don't trade it now. Sometimes, like right now, it's difficult because the stock appears stuck in a rut. Other times it's bountiful. But Nvidia is a stock that's not meant to be schnitzel. It's meant to be owned, not traded. Long term, I don't love most cyclical stocks. We own what I think are the best of them for the Travel Trust. But I accept that they should be traded around because they're hostage to the broader economy. But when you find some amazing secular growth stories, stocks that goes higher without a strong economy, you want to be the holder, not the trader. You want to make dollars. Leave the pennies to the traders with the best. It never changes. And if you don't obey my rule, you'll never see the greatness of what a hero stock can do for you. And of course, your bank account. I like to say, as always, bull market summer. I promise I'd find it just for you right here, man. Money. I'm Drew Kramer. See you tomorrow.

[D]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Kramer Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money DISCLAIMER Please visit cnbc.com forward/madmoneydisclaimer hi, I'm Lewis.

[A]

Howes, New York Times Best selling author and host of the School of Greatness podcast. And if you haven't checked out the School of Greatness yet, you are missing out because each week we bring you an inspiring person and message to help you on your journey towards inner greatness. You're going to hear from the world's top experts around relationships, health, mindset, money, and more. If you're ready to join me, you can find the School of Greatness on Sirius xm, Pandora, or wherever you get your podcasts. Make sure to hit the follow button so you never miss an episode. Thank you so much for your support.