Mad Money with Jim Cramer – Episode Summary (January 17, 2025)

Released on January 18, 2025, "Mad Money with Jim Cramer" delivers a comprehensive analysis of the current market landscape, upcoming earnings reports, and strategic investment insights. Hosted by Jim Cramer from CNBC, this episode delves into political influences on the market, detailed reviews of major banking institutions, and interactive segments with listeners.

1. Market Overview and Political Implications

Jim Cramer opens the episode by highlighting the robust performance of global markets:

• Dow Jones Industrial Average surged by 335 points.
• S&P 500 increased by 1.1%.
• NASDAQ rose by 1.5%.

Cramer attributes this rally to investor optimism anticipating the upcoming inauguration of a pro-business president, likely Donald Trump:

"[00:11] The bulls are roaming freely and with the exception of drug stocks, they cannot seem to be stopped."

He discusses the potential impact of Trump's administration on deregulation and business-friendly policies, contrasting it with the Biden administration's approach:

"[01:15] Trump intends to unleash a huge swath of deregulation boom... while closing our borders and starting to deport who knows how many undocumented immigrants." ([01:15])

Cramer emphasizes the uncertainty surrounding Trump's specific policies, such as his stance on tech regulation and mergers:

"[03:45] Will Trump be pro tech? Will he embrace mergers? Will a rising tide lift all boats? Honestly, it's going to be tough." ([03:45])

2. Upcoming Earnings and Stock Highlights

Cramer outlines the earnings season, focusing on key companies expected to report:

• 3M: Anticipated strong performance under CEO Bill Brown.
• United Airlines: Expected to deliver a significant earnings beat due to high ticket prices benefiting shareholders.
• GE: Potential recovery with GE Aerospace poised for a rebound if supply chain issues are resolved.

He also touches upon Procter & Gamble and Johnson & Johnson, noting challenges such as:

• Procter & Gamble: Struggles with a strong dollar in China.
• Johnson & Johnson: Ongoing talc asbestos lawsuits and acquisition impacts.

3. Interaction with Callers: Stock Picks and Opinions

Throughout the episode, Cramer engages with listeners, providing buy, sell, or hold recommendations:

• Caller Mohamed from Arkansas on AbbVie:

  "[07:26] Jim Cramer: I got to tell you, I think you got the cheap one there, Mohamed. Here's the problem. People hate these companies." ([07:39])

• Caller Tom from Washington D.C. on Sempra:

  "[08:09] Jim Cramer: R E. I think Semper is such a buy. I don't even care. That only yields 3%. I think that you know. This is Jeff Martin. He is bankable. Bankable, Bankable." ([08:16])

• Caller T.C. from New Hampshire on Oracle:

  "[08:37] Jim Cramer: I screwed up on Oracle. I sold it and then it moved up. I don't feel like I'm as good on it as I should be, that others are better." ([08:42])

4. Detailed Review of Major Banks' Earnings

Cramer provides an in-depth analysis of the earnings reports from the nation's largest banks:

JP Morgan Chase

• Revenue Growth: Commercial and investment banking units grew by 18%.
• Investment Banking Fees: Increased by 49%.
• Operating Efficiency: Overhead ratio improved to 53%, below expectations.
• Future Outlook: Raised net interest income forecast for 2025 by $1 billion.

"[10:17] Jim Cramer: A lot of people were worried about JP Morgan's spending, but we got a pleasant surprise on that front too." ([10:17])

Wells Fargo

• Revenue: Slight miss on top-line but strong bottom-line beat.
• Investment Banking Fees: Up by 59%.
• Share Buybacks: Repurchased shares worth $4 billion this quarter.
• Future Guidance: Improved net interest income forecast and significant expense reductions.

"[13:45] Jim Cramer: Still very much manning a comeback. And that's why the stock rallied more than 10% this week." ([13:45])

Citigroup

• Revenue and Earnings: Solid quarters with strong performance in sales and trading.
• Future Guidance: Positive outlook for 2025 with a new $20 billion repurchase program.
• Stock Performance: Doubled from its lows in 2023.

"[16:00] Jim Cramer: So if the company can keep delivering solid results, and it sure looks like that they can, I think it's what's got more upside." ([16:00])

Bank of America

• Revenue and Earnings: Modest revenue beat with solid earnings.
• Efficiency Ratio: Slight improvement but not as strong as JP Morgan.
• Future Outlook: Better than expected net interest income forecast for 2025.

"[19:50] Jim Cramer: But I got to tell you, else over the last year, I've been pounding the table on the two top tier investment banks, Goldman and Morgan Stanley." ([19:50])

5. Analysis of Investment Banks: Goldman Sachs and Morgan Stanley

Cramer shifts focus to investment banks, highlighting their exceptional performance:

Goldman Sachs

• Earnings Beat: Reported $11.95 per share vs. Wall Street's $8.21 estimate.
• Revenue Growth: Global Banking and Markets soared 33%.
• Operating Efficiency: Efficiency ratio improved to 59.6%.
• Stock Performance: Up nearly 12%, reaching new highs.

"[24:00] Jim Cramer: Overall, it was a powerful report from the best investment bank, best bank franchise on Wall Street." ([24:00])

Morgan Stanley

• Earnings Beat: Earned $2.22 per share vs. $0.70 estimate.
• Revenue Growth: Institutional Securities grew by 47%.
• Expense Control: Reduced expense ratio to 69%.
• Future Outlook: Strong M&A pipeline and continued asset growth.

"[25:24] Jim Cramer: The investment banks are already in a golden age and Trump hasn't even been sworn in yet." ([25:24])

Cramer advocates for investing in these banks due to their strong fundamentals and growth potential:

"[25:24] I want you to pick up at least one or two. I like Wells Fargo and Goldman Sachs, both very cheap. But you know what? It would have been a benefit from owning any of them because the industry is just that good." ([25:24])

6. Featured Interview: Included Health CEO Owen Tripp

In a special segment, Cramer interviews Owen Tripp, CEO of Included Health, discussing innovations in healthcare:

• Company Overview: Included Health offers personalized healthcare solutions, integrating virtual doctor visits to reduce costs and enhance employee benefits.
• Client Success: Partnered with major companies like Walmart, demonstrating significant benefits in employee health and cost savings.
• Future Plans: Potential for an IPO, aiming to expand their impact on the healthcare system.

"[29:03] Jim Cramer: You raise a word that is so important. Advocacy. People feel that they have no advocate when they navigate the system." ([29:03])

Tripp emphasizes the importance of advocacy in healthcare:

"[29:14] Owen Tripp: ...we stand on their side to make sure that the bills are paid for, that they get access to the drugs that they need, that they have access to world class primary care whenever they need it." ([29:14])

7. Lightning Round: Quick Stock Picks

In the high-energy Lightning Round, Cramer offers rapid-fire opinions on various stocks based on listener calls:

• Hood: Cramer advises a cautious investment, suggesting to "put half on and then wait for 10 client" ([35:57]).
• Louisiana Pacific: Recommends sticking with the stock despite recent performance fluctuations ([36:53]).
• DEI: Warns against investing, expressing uncertainty about the company's prospects ([37:22]).
• Adobe (ADBE): Declares it a buy despite potential criticism ([38:39]).
• CCJ (Chemical Uranium Stock): Advises against investing due to lack of growth prospects ([40:11]).

Additional picks include Visa, Chewy, and SE:

"[26:35] Jim Cramer: Visa is absolutely terrific. It's bulletproof. I buy Visa in a heartbeat." ([26:35])

8. Supreme Court’s TikTok Ruling and Its Impact

Cramer concludes the episode by dissecting the Supreme Court's decision to ban TikTok in the U.S., focusing on national security concerns rather than free speech:

"[41:28] Jim Cramer: The court explains how that whole argument is pure nonsense. It has nothing to do with free speech, people. It has to do with following a perfectly good law that says, among other things, if a site violates national security, then it can be shut down." ([41:28])

He critiques the ruling, emphasizing the government's authority to act against foreign-owned platforms posing security risks:

"[42:10] Jim Cramer: But that's the only way the problem can be solved. So what needs to happen here?... Perhaps this might be a good time to make a deal with Matter for a low price, why not?" ([42:10])

Cramer underscores the strategic necessity of transferring TikTok's ownership to a domestic entity to mitigate national security threats:

"[44:50] Jim Cramer: Soon to be president Donald Trump wants to actively be involved in fixing this. Hey, I got the solution for him. All he has to do is say to China that as long as the banned Google and Facebook can operate rate in China at last let him in." ([44:50])

Conclusion

Jim Cramer's January 17, 2025 episode of "Mad Money" offers a thorough analysis of market trends influenced by political shifts, detailed earnings reviews of major financial institutions, and strategic investment advice. The episode not only provides actionable insights for investors but also engages listeners through interactive segments and expert interviews, making it a valuable resource for navigating the complexities of Wall Street.