Mad Money w/ Jim Cramer 1/17/25

Summary

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.

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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])

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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.

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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])

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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])

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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])

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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])

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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])

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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])

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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.

Transcript

[Frank Holland]

Global markets up to the minute, front page news. Wake up to Frank Holland at worldwide exchange. Weekdays 5am Eastern. CNBC Live. Ambitiously.

[Jim Cramer]

My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer America. Other people, my friends, I'm just trying to you a little money. My job is not just to entertain, but to educate and teach you. So call me 174 3CBC. Tweet me at Jim Cramer. The bulls are roaming freely and with the exception of drug stocks, they cannot seem to be stopped. That's my read on today's action. Another sensational day where the Dow gained 335 points, S&P jumped 1.1percent and the NASDAQ. Whoa, more pole bowling. Up 1.5%. This market is not enduring the waning days of the Biden administration is experiencing the hopes of investors in the next administration, one that begins next week with the inauguration of a much more pro business president. We have no idea whether the next administration will live up to the lofty levels that the average has now gotten. Will Trump be pro tech? Will he embrace mergers? Will a rising tide lift all boats? Honestly, it's going to be tough. Generally, businesses want to be able to do what they want when they want to, while not paying a lot of tax. Is that unreasonable? Depends. Very unreasonable if you think big business is inherently nefarious and all these companies are run by greedy oligarchs. But if you believe in free market capitalism, letting businesses do what they want within certain limits, well, that is the name of the game. We won't have to wait long for Monday's inauguration because Trump intends to unleash a huge swath of deregulation boom. Okay, rolling back Biden's executive decisions, boy, there are a ton of those. While closing our borders and starting to deport who knows how many undocumented immigrants. Of course, many of these changes may not be allowed. Some will be acted on immediately. Some will never get kicked up the Supreme Court. But it sure seems like Trump plans to come in hot to advance the prospects of business. That's the only thing that can justify this market's recent rally. Now, my interactions with soon to be President Trump tended to revolve around the stock market, which he thinks of as the true barometer of his job performance. It's funny, because Biden never cared about the stock market, even though stocks did great during his administration. He wanted to be a class warrior, seeing himself as a labor president. Trump was most certainly he didn't want that. He wants to be the Capitol president. I don't expect anything different this time around, so we'll have plenty of executive decisions to parse on Tuesday. What if the new president will try to solve the conundrum of tick tock where Congress has spoken and the shutdown of the Chinese sponsored app is now very much assured. The President elect wants to be wants to see if he can get a deal going here, but he respects the Supreme Court as he says he does. I don't see how anything can be worked out without an outright sale. I'll give you more on that later in the show, but that seems to be a given. At the same time, Trump intends to roll back regulation, especially anti fossil fuel expansion, while rounding up undocumented immigrants to somewhere. And now he has to find a way to make 170 million TikTok users as happy as possible while blocking the People's Republic of China from getting all their data and using the site to brainwash young people. Tall orders well, how about Tuesday? Tuesday continues with the regular reporting season and we got some pretty compelling companies that I expect to talk about a brighter future, even if it's also somewhat uncertain both politically and economically. 3M reports in the morning and I bet that CEO Bill Brown is a total hitter. I think he delivers an awesome quarter. Speaking of awesome quarters, we should get a first class blowout from United Airlines which is riding this incredible wave of airline profitability. When United reports after the bell, I think shareholders rewarded with a huge beat as the company's benefiting from a lack of planes and a lack of competition that allowed ticket prices to go ever higher. As you know, not so good for consumers or the consumer price index, but tremendous for shareholders. United, one of the best performers in The S&P 500 last year was at $38 back in Aug. Today close at 107 bucks. Wednesday we got some real firecrackers. The data center business is red hot and in order to fuel these warehouses full of servers and you know, send air conditioning in all sorts of electricity, well what do you got to do? You need more power plants. That means they're likely to place orders with NAT gas turbine maker GE Vermova, that's another one of last year's best performers. I don't think it's done. Oil service kingpin slb, the old Schlumberger reported today and it was a, it was Smashing. Now the pin action from that allowed competitor Halliburton to rally 2.2%. But the good numbers from SLB were largely from overseas, so the domestically oriented Halliburton won't be able to put up that kind of surprise. The reason why Hal, is because soon to be President Trump seems to want to drill everywhere but playgrounds, although it's truly ruled those out too. We also get results from two household names, Procter and Gamble and Johnson and Johnson. I think Procter might struggle with a strong dollar in China, while JJ still has to deal with the talc asbestos lawsuits and the recent acquisition of intracellular for 14 billion which could threaten his pristine credit rating. The market has turned against these kinds of stocks viciously too slow growing. I think you can put either way though and make good money just by reinvesting their juicy dividends. Doesn't help that all pharmaceuticals under the microscope as President Biden rushed out a series of drugs that Medicare will try to get better prices for. This is the one part of the Inflation Reduction act that actually reduces inflation at the expense of the drug companies. One of the most popular medicines, for instance of the year will go Vice, the weight loss drug from Novo Nordisk will get a ton of scrutiny. As the White House put it on the list. Eli Lilly has a similar drug. Now people are worried that that same thing will happen to them when it comes up for regulation. So that stock got hammered again. It wasn't unexpected, but it stung anyway, especially because there were so many stocks screaming higher. Thursday we have another GE coming in, GE Aerospace this time. And I got to tell you something, I think we have a winner. But it's not as clean as I'd like because last time there was some hair on the quarter supply chain issues causing an 8% hit to the stock. Now if they get it right this time, I think that we'll recoup that loss in the same day. Please mark your calendars. Jeff Marks and I will be hosting a monthly meeting of the CNBC Investing Club on Thursday, which people just always tell me are so much fun. We're going to be going over the portfolio based on very specific recommendations. It's a new meeting. I think it's worth signing up for. You can just free trial the darn thing. Finally, on Friday, chronic underperformer Verizon gets a chance to chronically underperform again. Now I know a lot of traders think that this 7% yield can act like a trampoline. While I don't like the risk, well, I kind of like the risk reward. I don't have much faith in Verizon. How about that? Also on Friday, we hear from markets, but it seems like every time AMEX reports, it gets hit on that day. And what do I do? I come on here and tell you to buy it. After its juggernaut run these last few years, you think that when CEO Steve Squery talks, people would want to want to buy, not sell? I say, so what? We'll catch it when the fools say goodbye. Here's the bottom line as you wrap up the Biden administration. Even though I've been very critical of his approach to business, stocks have done well. The Dow's up 41%, the S&P is up 58% and the NASDAQ board 49%. Any other president be proud of that track record. The fact that Biden seem to not be maybe it says pretty much everything. Hey, why don't we go to Mohamed in Arkansas? Mohamed.

[Caller]

Yeah. Hi, Jimbo. Jimbo, what's happening? I've been watching the show for over 15 years.

[Jim Cramer]

Wow. Thank you.

[Caller]

Yeah, My start today is Abbvie. That makes Skyrizi, Rinvo, Riler, and of course, Humida.

[Jim Cramer]

I got to tell you, I think you got the cheap one there, Mohamed. Here's the problem. People hate these companies. So what you have to do is you have to buy. You can buy it, but you have to be patient because the drug companies are in the doghouse and that one is too. Those yield almost 4%. Why don't you wait till goes over 4%? I feel like going right now to Tom in Washington D.C. tom, thanks, Jim, for all you do.

[Caller]

You've made a huge difference in my financial life.

[Jim Cramer]

Thank you, Tom. Thank you.

[Caller]

Wondering what you think of Sempra S.

[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. I want you to own the stock. Let's go to T.C. in New Hampshire. T.C.

[Caller]

Hey, Jim, thanks so much for taking my call. And you're welcome every day.

[Jim Cramer]

Thank you.

[Caller]

Every day from you.

[Jim Cramer]

All right.

[Caller]

I want to understand your view on the business for Oracle and buy seller hold.

[Jim Cramer]

Okay. 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. I look at it 26 times earnings and last quarter was just okay. But, you know, sometimes you have to say to yourself, I'm not the call. I'm not the call. Now on the last trading day of the Biden administration, it's worth noting stocks performed really darn well during his tenure. The fact that he doesn't seem proud of it, I don't know, maybe it says everything, at least to me. On Man Money tonight, earnings seasons in full swing with the big banks crossing the tape this week. I'm looking through portion some of the major names and highlighting a few stand out statistics. Plus I had this chance to check out with this private healthcare player called included health during my time in San Francisco. Tonight I'm bringing you the fast standing conversation. Really pretty cool. And the Supreme Court calling midnight on TikTok saying a ban could go forward. I'll reveal what it means for social media stocks so stay with Kramer.

[Frank Holland]

Don't miss a second of Mad Money. Follow imkramer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com global markets up to the minute. Front page news. Wake up to Frank Holland and Worldwide exchange weekdays 5am Eastern, CNBC Live. Ambitiously.

[Jim Cramer]

This week, earnings seasons begin in earnest with reports from the major banks JPMorgan Chase, bank of America, Wells Fargo and Citigroup along with two huge investment banks, Goldman Sachs and Morgan Stanley coming to earnings. There was some concern that the banks which had rallied hard after Trump won the election might not be able to cope with the action in the bond market. There was a fear that rising long term interest rates might cool down the economy and do real damage to the financials. It turns out Wall street had nothing to worry about because we got a cooler than expected consumer price index report on Wednesday and because the banks, well, they're all doing great. Now you should try to walk through these one by one. But because we got all the major financials in a single week, this time we're going to split it up into two segments doing the national banks first and then the investment banks at first Brick, why don't we start with JP Morgan which got things going on Wednesday morning when it reported a just terrific quarter. Huge sales and earnings beat all three of JP Morgan's major business units came in better than expected. But the biggest source of upside was the commercial and investment bank put up 18% revenue growth. I mean come on, that's amazing. It's driven by a 49% increase in investment banking fees 21% increase in markets, markets revenue. And I've got to tell you, those are incredible numbers. A lot of people were worried about JP Morgan's spending, but we got a pleasant surprise on that front too. The company's overhead ratio, that's their cost divided by revenues, came in below expectations of 53%. You always want to see that number lower. That's extraordinary. There was even some good news in JP Morgan's limited guidance for 2025 as the company raised its full year net interest income forecast by $1 billion while keeping its 2025 expense guidance unchanged. At the same time, CEO Jamie Dimon said, quote, businesses are more optimistic about the economy and they are encouraged by expectations, pro growth agenda and improve collaboration between government and business. End quote. Music to my ears. Overall, it was an incredibly positive update from JP Morgan. So it's no surprise that the Stock didn't was up 8% for the week. Also Wednesday morning we got results from Wells Fargo, which I own for the charitable trust. Wells missed expectations slightly on the top line, but also delivered a large bottom line beat. Net interest income came in ahead of expectations, but non interest income meeting fees were a little light. Still, Wells had some nice growth. Investment banking fees 59% as well as investment advisory fees and brokerage commissions up 15,1 5%. The bank did have higher than expected expenses, but also benefited from lower than expected net charge loss and provision for credit losses, meaning their credit quality is terrific here. I love that. Very few deadbeats Wells managed maintained its aggressive buyback. No, I shouldn't call it aggressive. I'd say incredibly aggressive buyback. Repurchasing shares worth $4 billion in the quarter. That means last year they retired 9% of their share count. When you're buying back stock that fast, it's only natural to put up big earnings per share. Remember, after all, there are a lot fewer shares. On top of that, management gave a better than expected forecast for net Interest Income 2025 and they talked about $2.4 billion in gross expense reduction, another unheard of figure. Overall, what we got from Wells Fargo was good, good, solid result, which is all we needed for this bank. Still very much manning a comeback. And that's why the stock rallied more than 10% this week. Given that Trump is expected to have hand on regulation, I bet. Well, she remains one of the best holdings out there. Speaking of comebacks, wow. Citigroup, it reported a solid quarter on Wednesday morning as well. Citi's now doubled from its low 2023 lows and the company Stock spent over a year getting its act together while delivering steadily improving numbers. Now their fourth quarter report represented another solid update. This was a nice top and bottom line beat. Citi saw growth in each of its businesses and all but investment banking beat expectations. The biggest source of growth was sales and trading up 36% year over year. That shocked me. Citi's costs remain under control and their credit quality metrics were basically in line with expectations. But the highlight from the quarter as I see it was management's outlook for 2025. The best of all the banks, Citi gave the most forward looking guidance of anyone and almost all of it was positive. The revenue forecast for 2025 was fully above what Wall street was expecting. They're guiding up for net interest income to be quote, modestly up modestly, while report expenses should be quote, slightly lower. Yes, credit losses should be in line with 2024 levels. As a bonus, Citi said expects revenue growth to continue in 2026. And management announced a new $20 billion repurchase program. No wonder the stock pop. A $20 billion buyback is huge even for $150 billion company. Overall, it looks like CEO Jane Fraser is really turning this thing around. Well, I've been a little bit gardened about Citigroup after the bank did so poorly for so long and I've been right. I will say this, this stock is by far, even after this quarter, the cheapest the bank. 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. Finally, bank of America reported yesterday morning B of A had a modest revenue beat and a solid earnings beat. And all four of its segments grew. And other than their assets and trading division, everything else beat expectations. BFA's efficiency ratio, that's of course a key measure of cost control, was slightly better than expected, but much worse than what we got to say from JP Morgan. This is the nation's second largest bank in terms of expense control. So closer to come back kids like Wells Fargo and Citigroup. Still a better than expected result is a better than expected result. I'm not going to quibble about this one. Okay. Five center, easy. Looking forward, bank of America's net interest income outlook for 2025 was better than expected. Their expense guidance was basically in line. This was just an okay quarter from bank of America. The miss from their sales and trading business was glaring given that most of the other banks did incredibly well in that space. But there are also some underappreciated aspects of the quarter like continued improvements to the composition of their investment portfolio. This has been a quiet low level risk for bank of Market since the mini banking crisis, but it never really became a problem and certainly doesn't look like it's going to be now. Maybe this is all you need to know. The stock rallied more than 3% this week, but almost all that came on Wednesday in response to the quarters from J.P. morgan, Wells and Citigroup and not yesterday, bank of America reported. So the bottom line of this group looking at the four biggest nationwide banks, JP Morgan is doing great. Wells Fargo and Citigroup are in full turnaround mode. Back of merger is doing just fine. All told, the industry's in terrific shape. I want you to stick with Kramer to hear about the gigantic profits of the investment bank. Bad money is back everywhere.

[Frank Holland]

Coming up, Cramer breaks down ear from his alma mater Goldman Sachs as his big bank earnings recap continues.

[Jim Cramer]

Next.

[Elliot Kaelin]

I'm Elliot Kaelin and I cannot wait to tell you all about the new podcast I'm hosting for Smartless Media. It's called Smartless Presents Clueless, a bite sized twice weekly game show with a different main game and cliffhanger puzzle every single episode. And all this season the contestant will always be Sean Hayes. That's the Clueless promise. Since you never know what the you won't want to miss a single episode. Listen and follow wherever you get your podcasts.

[Frank Holland]

CIDP is no walk in the park. It can make your daily routine feel not so routine. The good news? There's a treatment option for chronic inflammatory demyelinating polyneuropathy that may fit into your routine. Discover [e-mail] and talk to your doctor. That's innovation fourcidp.com brought to you by Argenics.

[Jim Cramer]

Tonight, before we get to the long holiday weekend, I want to walk you through the earnings from the major banks because for the most part they were fantastic. Before the break, I already covered the big four national banks and now I want to draw your attention to the two major investment banks, Goldman Sachs and Morgan Stanley. First, let's talk about my former employer Goldman and now a stock we own for the Child Trust. We used to own Morgan Stanley. Very successful position but after selling it down gradually this year we fully exit the position last week because right now I prefer Goldman. I think it's going to be right. For years Morgan Stanley was the better bet because it's built this huge asset and wealth management business at a time when traditional investment banking was doing it. But well, but now that investment bank is on fire, Goldman's much closer to a pure play, which is what we really want. So sure enough, when Gold Report on Wednesday morning delivered the biggest upside surprise of any of the major banks. A gigantic revenue beat. And they earned $11.95 per share. Wall street was only looking for $8.21. Think about that. That's colossal. Goldman's earnings more than doubled year over year. Pretty much everything worked out great for Goldman in this quarter, starting with the firm's largest business unit, Global Banking and Markets, that had a 33% revenue growth and beat revenue expectations by nearly $1 billion. There's a beat for you within the global banking markets business. Fixed income currencies and commodities trading was up 35%. Equities trades up 32%. Banking fees up 24%. Even the catch, all other revenue line up 285% year over year. As for the other two segments, asset and wealth management is up 8%, crushing the estimates thanks to higher management fees, companies significantly higher incentive fees and higher net revenues in private banking. The final segment, Platform Solutions. That's the stub of the consumer business that Goldman's been lagging out of. Well, let's say it was up 60%, but it's still time to go. Their operating expenses were down 3% year over year, perfectly in line with the estimates. Goldman's efficiency ratio was a stunning 59.6%. That's down more than 15 percentage points from 75 last last year and well below the 67% number that the analysts were looking for. Wow, that represents incredible expense control because the lower the percentage is, the more money flows. The bottom line, when you have a monster revenue growth like they do, and you do a great job controlling costs as they've had, you can put up a stellar earnings beat. And that's exactly what Goldman Sachs doesn't hurt by the way, that they bought back $8 billion of the stock last year, including 2 billion just last quarter alone. Goldman's return on tangible comment as shareholders equity, their preferred profitability metrics rate was 15.5%. You know, that was more than double what it was in the year ago period. On the conference call, CEO David Solomon was very positive about the outlook for the future, saying there had been, quote, a meaningful shift in CEO confidence, end quote, since the election. There it is again. And noting that there is also a quote, significant backlog from sponsors, end quote, meaning private equity firms looking to do deals. And quote, an overall increased appetite for dealmaking supported by improving regulatory Backdrop and quote. Basically the moment Biden's antitrust enforcers are going to go. Now we're going to see a ton of mergers and Goldman M and a advisory business. They will be printing money. House of pleasure Overall it was a powerful report from the best investment bank, best bank franchise on Wall Street. No wonder the stocks finishing the week up almost 12% trading at a fresh all time high. I bet it's still got more room to run. And no wonder CEO David Solomon got $80 million to vest in 2030 to stay on for another five years. Look like let's understand each other. I always say I am fine with these large pay packages as long as the shareholders are rewarded. And boy have we ever been rewarded. Here I own it for my travel Trust. Finally is Morgan Stanley, the other investment bank which reported yesterday morning. Now given that we just sold the stock for the travel Trust this feels a little bit like reviewing your ex but I'll give it you give it to you straight and tell you that Morgan Stanley is also doing terrifically. In fact, like my new girlfriend Goldman. It finished the week up nearly 12% making it one of the best performers in the group. Morgan Stanley delivered a big revenue beat and a big earnings beat. Their institutional securities division which houses investment banking and sales and trading saw 47% revenue growth. Much better than expected. Invest back up 25%. Equity revenues up 51%. Fixed income revenues increased 35%. Your eyes glaze over but these are extraordinary. And wealth management Morgan Stanley at 12.5% growth thanks to higher asset levels. End quote. The cumulative impact of positive fee based flows and quote. And the smallest segment, investment management. Net revenues were up 12.2% there to the catalyst was higher assets under management. In this case driven by higher market levels. The stock market went up. Like Goldman, Morgan Stanley had strong expense control in the quarter with an expense ratio of 69%. That's down from 84% a year ago. Boy did that number hurt when that was reported. And better than the 73.7% number that the analyst expected. Remember this is expenses divided by revenue, so lower is better. All told, the excellent revenue numbers and Solid expense control plus $750 million in buybacks allowed Morgan Stanley to earn $2.22 per share. Wall street was only looking for a $70. These beats are incredible. That's 161% earnings growth year over year. The investment banks are already in a golden age and Trump hasn't even been sworn in yet. Once his regulators take over, the sky is the limit. For these guys. Let me give you some other highlights tonight. Total client assets reached $7.9 trillion across two asset management segments as Morgan Stanley continues to march toward his goal of $10 trillion. And the return on tangible common equity of 20.2% was well above the 15.4% number that analysts were looking for. That too is huge. On the conference call, CEO Ted Pick, who's entering his second year leading the bank, was just as effusive as Solomon about the outlook for his business, saying that Morgan Stanley has quote, quote, momentum across all businesses, end quote. In particular, he's excited about the opportunity. Yes, for M and A. Saying that the M and A pipeline is as strong as it's been in the five to 10 years, maybe even longer. This is incredible. When I think about what we've heard from all six major banks that I've now reviewed, one thing stands out that is just how debatable these moves were. I've been talking about the banks positively for as long as I can remember. And we voted a couple of them big for the Chabel Trust for ages. First Wells Fargo and then Morgan Stanley Stanley and now Goldman Sachs in particular. Since early last year, I have been pounding the table on the two top tier investment banks, Goldman and Morgan Stanley, because this gradual comeback of capital markets activity has been happening in plain sight. I think Wall street was very right with its first instinct that the banks will benefit from the Trump administration. But so many investors subsequently got spooked out of the bank stocks in the weeks afterwards because of an obsession with the macro environment. The Fed, these people come on from the Fed and the gassers and, well, it was all a serious mistake. But here's the good news. Despite the big gains for the banks this week, their stocks have quite a bit more upside because those earnings explosions, well, I got to tell you, all they did was make the price to earnings multiples lower than we think, much lower than the rest of the market. So the bottom line, if you don't yet own any of these banks, 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. Jake in New York. Jake.

[Caller]

Hey, James.

[Jim Cramer]

Booyah. Booyah. Jake. What's up?

[Caller]

How are you?

[Jim Cramer]

I'm doing okay, how about you?

[Caller]

I'm chilling. You know, it's a Friday, so.

[Jim Cramer]

All right. Yeah, chilling. We're gonna get five inches of snow here and it sounds cool. What's going on.

[Caller]

Okay. So I'm a big fan, I'm sure you are, too, of Jessica Tish. You know, you guys went to the same school. Absolutely. And so I was checking in on some stuff and like, you know, they used to have this superstar Chubb CEO. He's leaving. And I'm a little irked too, with the fires and stuff. I don't know necessarily. I want to go on insurance. What do you think about cna?

[Jim Cramer]

Yeah, it has been. Even though I totally understand the bloodlines, it's not been the one I've liked. It's been a bit of a disappointment. I do like Chubb. That's where I want to be. I'm not crazy about the group, but if I have to be in one of those, I'm going Chubb. Most definitely. I need to go to Joe in my home state of New Jersey.

[Caller]

Joe, hello, Mr. Kramer.

[Jim Cramer]

Thank you for having me on. My pleasure. What's happening?

[Caller]

And for stressing on the importance of diversification. I love that.

[Jim Cramer]

You bet.

[Caller]

Always keeps me in.

[Jim Cramer]

Excellent.

[Caller]

Yes. I've owned Visa for a few years now and it's gone up considerably over 200%. Now, if the new administration lowers the maximum interest rate, they've been Talking about the 10% on the credit card companies. Can that hurt the credit card companies? They do that?

[Jim Cramer]

No, I think they'll, I think maybe even use real more. What's the stock? What stock? Visa. Oh, no, Visa is absolutely terrific. It's bulletproof. I buy Visa in a heartbeat. Listen to me, if you don't own any of the financials, I pick up one or even two. Frankly, the industry is that good. Now I got a lot more made money, including my off the tape exclusive with employer healthcare partner, including Health. You do not want to miss us. Plus, what does the Supreme Court ruling on TikTok mean for free speech in the state of social media? You won't want to miss my take on today's news and oil calls rapid fire in tonight's edition of the lightning round. So stay with Kramer. Earlier this week, when I was at the J.P. morgan Health Care conference in San Francisco, I had the chance to sit down with Included Health. That's a privately held health care services platform. Boasts several major players as clients could be Medtronic, Walmart and CBC's very own parent company Comcast. I like speaking with private companies because many of them are on the cutting edge of their industries. For example, Included Health platform uses virtual doctors visits to help big companies save money on health care costs and give Employees personalized advice on their health care benefits. That's a very exciting story. Earlier this week we sat down with Owen Tripp, the co founder and CEO of the privately held Included Health. Take a look. Owen, we're thrilled to have you. Please tell us what Included does for people.

[Owen Tripp]

Included Health is the personalized all in one healthcare solution. And what I mean by that is all of us go through stuff. We have to find a doctor for it, we have to call our insurance company for it. We have to find the pharmacy that would ideally have the product that would provide a solution. We bring it all together. And for members, we offer the best of a world class healthcare system with advocacy and concierge services to make sure that everybody gets what they need all along the way, all the big questions and so on.

[Jim Cramer]

You raise a word that is so important. Advocacy. People feel that they have no advocate when they navigate the system. How can you do it? It's so complex.

[Owen Tripp]

It's sort of amazing that we have to even bring these terms to health care, right? Navigation Advocacy Wayfinding the average American is outmatched. There are 11,000 words we throw at them in medicine and in healthcare and insurance and they need about 5,000 words for their daily lives. So what we do is 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, Mind, body and wallet, medical, physical and everything in between. And that's really the goal of what we do, is design a system for the members.

[Jim Cramer]

Now you have a huge number of lives, so to speak. I don't know people who don't know you. I mean you're talking about Salesforce with great use cases. You gave Wells Fargo, Southwest, Walmart. Now Walmart had a health feature in its stores. They said it was too expensive. They are your partner. I know they can partner with anyone. What do you do for the average Walmart employee?

[Owen Tripp]

They're incredible. What most people don't understand about Walmart from the outside is that they are insanely driven by having high quality benefits for their associates and making sure that those benefits pay for themselves. So very specifically, they ran a five year test with us to say, hey, look, we'll give you access to our million associates to try primary care. It's got to pay for itself. You got to keep people out of the hospital, you got to keep people healthier and they've got to love it. They have to tell us on survey that they love it. And we hit all those marks they renewed to the entire nation. And we of course drive behavioral health for them through brands like Doctor on Demand and other things we offer.

[Jim Cramer]

Well, congratulations. That's a very big deal because Doug McMillan has a real, he has a touch. I often feel that Doug is, I mentioned you before, constructive and wants his employees do better than they ever have. This is a kind of feature that.

[Owen Tripp]

Yeah, Doug, his board and his management team are visionary on this topic. They understand, Jim, like so many of us do, that if you look at the expenses that are operating in Fortune 500 health care companies today, the least tamed, the most divisive and the most problematic is actually that health care benefits line. And so Doug and his team have said, if we're going to continue to compete the way we have and provide the value the way we have, we have to make sure that our benefits make sense for their associates too.

[Jim Cramer]

Okay, so let's say I see my bill and I don't really Understand is a $500 line LabCorp bill. And it wasn't supposed to be like that. Do I text you? What do I do?

[Owen Tripp]

You can text us, you can call us, you can't yet send out a passenger pigeon to notify us, but maybe in the future you offer that. And of course, the included health and Doctor on Demand apps are great ways to start. And what we do is we go to work in the background making sure that you haven't been over billed, that dollars that are yours are rightfully returned, and even more critically, that you're getting access to the care you need. Are you diagnosed properly? Are you getting world class treatment if you're not? We work on those problems too.

[Jim Cramer]

All right, now how do I know that my doctor will be empathetic? I'm part of this empathy project with my primary care and I always want to know whether the doctor is going to be empathetic. Can you measure that? Do you know whether the people are good and kind? It matters.

[Owen Tripp]

One of the most incredible gifts of having a virtual first solution is that we can measure quality. Quality like it's never been measured before. That's. Do people come back? Do they say that they like it? Have they listened? But let me tell you something else. We've been here at J.P. morgan all week. Things have been busy. You've been hearing AI?

[Jim Cramer]

Yes.

[Owen Tripp]

Have you heard EQ plus AI?

[Jim Cramer]

No.

[Owen Tripp]

Okay. I think when any of us get sick and we need care and certainly we hear this from our members, they want EQ plus AI. They want the best computational Firepower to make sure they're getting evidence based care. And they want people who actually care about them and demonstrate that they care about them. They don't want to be treated like another number in the system.

[Jim Cramer]

Well, how can we be sure that somehow we get health care costs down? I mean, for instance, you've written the most eloquent things on GOP1. I mean, maybe that could bankrupt the system. Maybe it's a good thing. We know that health care is not necessarily run the way that you, but the way that you guys do it included. What can we do?

[Owen Tripp]

Yeah, unfortunately, it could probably both bankrupt the system. And these are really helpful drugs.

[Jim Cramer]

Is it not incredible? What it is incredible.

[Owen Tripp]

And look, I'm a proud American about what we build in this country. You've been meeting these leaders all week and we have the best platforms for these things. And still it's got to make sense for the right patients at the right time. It's got to get them better. And we can all agree on that. Where companies and other group purchasers ask for our help is hey, make sure we're getting the best possible care. Take care of the member, but don't just do it. Because it's just another thing to throw at these people. They're already overwhelmed by so many choices that don't work. And that's where we stand beside our clients.

[Jim Cramer]

It seems that you know that if it's just going to be for vanity, it's no go. If you can get it so it's blood pressure, get it for comorbidity, then the person has a better chance.

[Owen Tripp]

That's exactly right. What we know is that GLP1s are incredibly effective. Some of the best drugs invented in my lifetime, certainly, and attacking core problems. And we think, we think they will be great for things like arthritis and other diseases down the line, but we don't know that yet. And so where we stand on the side of evidence and alongside our experts at all of these institutions across the country is let's make sure we apply it for the use cases that we know work today. That's not only appropriate for patient health, that's appropriate for the bottom lines of these.

[Jim Cramer]

Okay, now I know I'm going over, but one last question. Have you had a chance to speak to Bobby Kennedy Jr.

[Owen Tripp]

I have not, No.

[Jim Cramer]

I would reach out to you immediately.

[Owen Tripp]

Yeah. Great. Well, I think that what I'm hopeful for is that people want to make America healthy in all the ways. I think that's a support statement that we should all send out to the world. The question is just how we do it at scale.

[Jim Cramer]

All right, now you have dangled the idea of an ipo. We sure would love it because first of all, there are so many people who use it. I bet they would like to be part of friends and family.

[Owen Tripp]

Well, I'll tell you, at over 30% of the Fortune 100 today and a lot of happy members, we're really excited about where we go from here.

[Jim Cramer]

Excellent. Well, I want to thank you, Owen Tripp, co founder and CEO of Included Health and also an eloquent writer about the system. Back to some of the most cogent stuff I've ever read because it's so hard to understand. Owen, thank you so much.

[Owen Tripp]

Most welcome. Thanks for having me.

[Jim Cramer]

Anyway, back at the break.

[Frank Holland]

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

[Jim Cramer]

Next. It is time. It's time for the white round. Goodbye calls by our friend Robert Sham said by Solstice. Just put another cool star question. My stamp. Here's some cramps to the bite plants on. And then the lightning round is over. Are you ready? Skate daddy. Time for the light round question. I'm going to start with Rock Rafi in Florida.

[Caller]

Rafi, hey, this is Rafi's dad.

[Jim Cramer]

Here's Rafi. Okay, let's even the great Jim. I'm thinking about buying Hood for a.

[Caller]

Long term fold to add to my portfolio. It's close to an all time high.

[Jim Cramer]

What do you think? Kids got horse sense? I say put half on and then wait for 10 client. I like his attitude. Let's go to Drew in Ohio. Drew.

[Caller]

Hey, Jim. How you doing? Big booyah for Drew and Jody in Ohio.

[Jim Cramer]

Wow, what a booyah. I like it.

[Caller]

Yes. I want to talk about Louisiana Pacific. The last three quarters they beat their earnings. However, the roa, the ROE and the gross margin has kind of been down the last few quarters. The balance sheet is a plus. Their February 25th earnings is questionable with the new Trump administration. Administration and the home builders. I just want to know your thoughts on that.

[Jim Cramer]

Well, I gotta tell you, you're gonna have a huge rebuild in the Southland. In California, the numbers for housing are okay, not great. It's been a horse, it's been a great stock. I say you have to stick with it. Let's go to Susan in Massachusetts. Susan.

[Caller]

Hi, Jim. Thank you for taking my call. And thank you for making me and my home happy and financially secure. Retirees.

[Jim Cramer]

Wow. If I've done that, I did good. Thank you.

[Caller]

You sure did so. Now, given the new Department of Government Efficiency and Easterly government properties dependence on government leases. Can you please give me your opinion on the prospects of dei?

[Jim Cramer]

You know, it's very tough to tell what they really own and what they do. And I've got to tell you, that makes me very, very shy about it, I have to say. Don't buy, don't buy. How about we go to Squirrel in Maryland? Squirrel.

[Caller]

Hello, Mr. Kremer. How are you doing today, sir?

[Jim Cramer]

I am doing well. What are you up to?

[Caller]

Yes, just trying to stack up some nuts for the winter and wondering how do you feel about se sir, you.

[Jim Cramer]

Know, I've always liked that company. I. I do think that. No, I like it. I'm just going to tell you that I think it's a good stock to own here, especially because it's way down from where it used to be. Let's go to Bill and Massachusetts Bill.

[Caller]

Jim, real quick. I just wanted to say how phenomenal you and your staff are.

[Jim Cramer]

Staff's amazing. Just amazing. What's going on the club?

[Caller]

I'm enjoying the club a lot. I have a here that missed in the second quarter up, it came back in the third to beat. And I wanted your opinion on idex. Laugh, sir.

[Jim Cramer]

No, no, too inconsistent. I've got to tell you, if Chewy were to come down, that is the one I'd like it to be in. Chewy. Let's go to Chad in Wisconsin. Chad.

[Caller]

Hey, Jim, I'm feeling pretty pumped up. Longtime listener, first time caller on the Lightning Round. Man, I gotta tell you that.

[Jim Cramer]

Fantastic.

[Caller]

Yeah, see, there's a CEO of this company that's saying there's very sizable tailwinds in the AI for this company. And you know, I gotta say, I'm looking back on these earnings calls and you know, they're not massive beats, but they are definitely beats. And this stock has gotten dramatically beaten up. You know, I had to call and talk to one of the best in the game to get his opinion on this. And this stock is Ticker Adbe.

[Jim Cramer]

Adobe. Adobe. Okay. Now I think Adobe has come so far down that it's just. I think I'm gonna call it a buy. I may look back, I may be criticized. People may think, what the hell is he talking about? But Adobe, I no longer want. I want to own some Adobe. So tempted at my Thursday meet. You know, Thursday meeting, monthly meeting, but got Jeff. Let's go to Tyson in North Carolina. Tyson.

[Caller]

Hey, Jim, how's it going?

[Jim Cramer]

Good. How about you, Ty?

[Caller]

I'm doing Great, Jim.

[Jim Cramer]

Okay, that sounds good.

[Caller]

All right, good. Jim, I was wondering about the chemical uranium stock ccj. Have you heard of that?

[Jim Cramer]

Well, if you're going to own ccj, if you're going to own a uranium stock, that is the one to own. I don't want to. I see no rebirth if I felt from a three mile Island I mean obvious that these things can't be built in anytime soon. So I don't think it's a growth business and that laden them Inclusion of the lightning Round.

[Frank Holland]

The Lightning round is sponsored by Charles Schwab. Coming up, the Supreme Court has spoken and TikTok's time may be up. Stop scrolling because Kramer's giving his take.

[Jim Cramer]

Next.

[Frank Holland]

Monday kick off the trading day with Squawk on the street. Live from post nine at the nyse.

[Jim Cramer]

Harassed Ted endlessly, endlessly. And the way that this administration did things was to sue and then talk, right? And it was always through lawyers. And that's not how you. That's will never be Trump never do.

[Frank Holland]

It all starts at 9am Eastern.

[Jim Cramer]

Today I got the benefit of what I thought were three wasted years at Harvard Law School. That's all I could think about when I was reading the Supreme Court's rule that TikTok's gotta go in this country or at least be sold, because I don't think I've ever read such a strongly worded verdict in my life. Now there's been a lot of confusion about how the government could handicap free speech by banning TikTok. But the court explains how that whole argument is pure nonsense. The ruling 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. Since TikTok is owned by what Congress considers to be a foreign adversary and it tries to influence 170 million users with COVID content manipulation, then it violates national security. Same goes for the fact that they're collecting data on all of their American users. Now this was a very simple case of the People's Republic of China trying behind the scenes to win over half of the country that seems addicted to TikTok and certainly influenced their opinions. You're allowed to publish whatever you want online, but that doesn't mean a foreign power can operate and manipulate their own social media network here. Yet people continue to yap about how this restricts free speech. I mean, that's wrong. In the face of it, so many TikTok adheres seem to believe that any product with videos that were viewed more than 13 trillion times in 2023 cannot be denied. That doesn't matter the Supreme Court though. What matters is national security. And it can't be overrun simply because lots of kids love TikTok. But you might say, how can it be right to shut down a site that's cheered by hundreds of billions of people around the globe? There's no problem with people watching these TikTok videos. But Congress passed a law saying that it can't be owned by a Chinese company, closely collaborates with the Chinese government, and the Supremes say that law is perfectly constitutional. That's what the case was about, of course. If another buyer with no connection to the PRC comes in, takes it over, shuts down the data link on China, then it's game on. And if an American social media company wants to manipulate their own algorithm and spread their own propaganda, that's perfectly legal as long as they aren't working hand in hand with a foreign adversary. But that's the only way the problem can be solved. So what needs to happen here? I know that TikTok as a whole could be worth 300 billion. That's the number band Aid about. But what's the American portion of the business worth if America shuts it down? How much are the Chinese Google rights worth when the site's blocked in China? Or the banned Facebook rights? I tell you very little I know. 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. And let's throw in the New York Times, the Wall Street Journal for good measure. Then he'll be happy to find tick tock a friendly domestic buyer, even get the legislation rewritten. But you got to let us back in. Alternatively, the only choice is to force a sale. Perhaps this might be a good time to make a deal with Matter for a low price, why not? In a few months? I believe that met his reels will figure out all the algorithms to get all the creative developers it needs to take over the entire business. Business? TikTok's US business won't be worth much at all six months from now. Quick time to sell now memo to the PRC which secretly controls the company. There's no time like the president sell out the people who run TikTok and give it to someone in the U.S. okay, just sell them out. They'll get a heck of a lot more money now than if they wait for Mark Zuckerberg to eviscerate TikTok's banned remains. Which is exactly what this Uber competitor and big time game hunter will do. Like I said, as always, Bill Marcus Summer problems find Just for you right here at Mad Money, I'm Jim Cramer. See you next time.

[Elliot Kaelin]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer'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 madmoneydisclaimer Global markets up.

[Frank Holland]

To the Minute Front Page News Wake up to Frank Holland at Worldwide exchange weekdays 5am Eastern, CNBC live Ambitiously.