Mad Money w/ Jim Cramer – January 9, 2026 – Podcast Summary

Episode Overview

In this episode of Mad Money, Jim Cramer analyzes early-year market turbulence and the key forces driving sector performance in 2025. Cramer provides his characteristically energetic take on Wall Street cycles, top and bottom-performing sectors, specific stock stories (including the two Constellations: Energy and Brands), and the effects of political intervention on markets. The popular “Lightning Round” returns, and Cramer wraps up with a history lesson tying current White House actions to past presidencies.

Key Discussion Points & Insights

Market Turbulence and Early-Year Rotation

Timestamps: 01:42–10:00

• Cramer explains market volatility in early January.

  • He calls this period “natural order of rationalization” and encourages investors not to panic when previously high-flying stocks underperform and laggards bounce.
  • "Sometimes things just get out of whack with stocks at the beginning of the year. No worries. The market is an established correct itself right in front of you." (01:48)

• Stock market:

  • Dow up 270 points, S&P up 0.01%, Nasdaq down 0.44%.
  • Rotation: funds move from last year's tech winners into previously underperforming stocks and sectors.

• Standout examples of sector rotation:

  • Constellation Energy vs. Constellation Brands:
    • Constellation Energy, a nuclear utility, is a darling of the clean energy push by tech hyperscalers—up 175% in two years but now “dangerously expensive.”
    • Constellation Brands, the beer and liquor company, has been punished—down 40%—but may have overcorrected, now trading at a low P/E.
  • Costco vs. Walmart:
    • Last year was Walmart’s year due to value appeal, but its stock has become expensive (P/E in the 40s). Costco lagged after the loss of its CFO and slowing renewal rates, but has just delivered strong numbers and now looks like a "screaming buy."
      • “Wal Mart’s price-earnings ratio skyrocketed to the 40s... How about Costco, the sainted Costco… now, it's a different story.” (03:51)
  • Nike:
    • A management shakeup, insider buying (including Tim Cook's $3M), and positive action despite a downgrade by Needham suggest the stock is bottoming.
    • "If you take a longer term view, this stock has been a nightmare. Okay. But late last month, three board members including Hill and Tim Cook... bought a ton of stock..." (05:34)
  • Home Depot and Homebuilders:
    • Home Depot’s recent bounce reflects renewed optimism tied to potential policy moves on home ownership and institutional investors.

• Takeaway:

  • Seasoned investors expect these early-year rotations, which usually find equilibrium by week three in January.

2025 Sector Performance Review: Winners

Timestamps: 13:57–19:00

Only 3 out of 11 sectors beat the S&P 500 (which was up 16.4%):

1. Communication Services (+32%)
   • A hodgepodge sector that includes Alphabet, Meta, Warner Bros. Discovery, and Electronic Arts.
   • Warner Bros. Discovery up 173%; Electronic Arts rose 40% on buyout news.
   • Alphabet up 65%.
   • Standout Cramer quote: “It’s very artificial... that hodgepodge did great in 2025... Congratulations to Warner’s David Zaslav for delivering phenomenally for shareholders." (14:50)
2. Information Technology (+23%)
   • Semiconductor boom led by memory/data storage companies: SanDisk, Western Digital, Micron, Seagate (all tripled).
   • Data center hardware companies (Corning up 84%) and cybersecurity firms did well; Palantir and Apple also cited.
   • Old tech (IBM, Cisco) up 35% and 30%.
   • Some tech laggards: enterprise software, tech consulting, Zebra Technologies, HP Enterprise.
   • Cramer tip: "If you own them, please do what I call a schnitzel. Take a little off the table." (16:13)
3. Industrials (+18%)
   • Power generation (GE Vernova nearly doubled), aerospace (Helmut Aerospace, GE Aerospace), and defense contractors (HII +80%, RTX, L3 Harris, General Dynamics).
   • Heating, ventilation, air conditioning (Comfort Systems USA best in sector, +120%).
   • Some transports (C.H. Robinson, Uber) saw gains.
   • Housing-related and economic sensitivity hurt certain stocks (Stanley, Black & Decker, Builders FirstSource).

2025 Sector Performance Review: Underperformers

Timestamps: 23:42–32:55

8 sectors that did not beat the S&P 500:

• Financials (+13.3%)

  • Big banks (Citi, Goldman, JPM, Wells Fargo) did well.
  • Insurance and fintech firms lagged.
  • Cramer’s strategy: “Stick with the banks, they're still cheap, especially investment banks.” (23:53)

• Utilities (+12.7%)

  • Strength in independent power producers (Constellation Energy, Energy, American Electric Power).
  • Some California utilities lagged due to wildfire losses.

• Health Care (+12.5%)

  • Former CVS Health up 77% under new CEO; drug distributors (Cardinal Health, McKesson) up 40%.
  • Managed care (Molina, UnitedHealth) down 40%+ due to Medicare Advantage losses.
  • Pharma and medtech were mixed; promising more insights from the upcoming JPM Healthcare Conference.

• Materials (+8.4%)

  • Precious metals (Newmont up 168%), select steel and lithium names up, but most chemical and packaging companies struggled.

• Consumer Discretionary (+5.3%)

  • Winners: Carvana (+108%), Tapestry, Ralph Lauren, GM, TJX.
  • Losers: Deckers (-49%), Lululemon (-46%), struggling restaurants and retailers.

• Energy (+5%)

  • Refiners and some nat gas producers were bright spots.
  • Integrated oil giants (Exxon, Chevron) underperformed.
  • Pipelines and Texas Pacific Land were down.

• Consumer Staples (+1.3%)

  • Dollar stores (Dollar General +75%, Dollar Tree +64%), Monster Beverage (+46%), Estee Lauder (+40%).
  • Major food/packaged goods, Clorox (-38%), Target (-28%), and alcohol firms suffered.

• Real Estate (-0.3%)

  • Worst major sector; health care REITs and storage firms performed well.
  • Overall, 24 of 31 REIT stocks finished in the red, with office/life science real estate notably weak.

Cramer’s Forward-Looking Statement: "I think the financials will be the winners this year. I still like the utilities. I'm optimistic about health care after its rebound late last year... If we get lower rates, it'll be good for the materials sector, real estate sector, and consumer discretionary cohort. Energy might benefit too, but I'm less optimistic there..." (32:36)

In-Depth Stock Review: Constellation Brands (STZ)

Timestamps: 33:33–41:36

• Background: Down 38% in 2025 — 15th worst S&P performer. Struggled with health trends, tariffs, immigration policy, and weight-loss drugs curbing alcohol demand.
• Recent Rebound: Stock up >5% on a better-than-expected quarter. EPS beat, wine & spirits did less badly, core beer unit stable.
• Margins, Risks, and The “Beer Moment”:
  • Management remains cautious, flagging fourth quarter margin pressure and continuing challenges in Hispanic-heavy zip codes due to immigration.
  • Key Quotes:
    • "Just because a quarter is better than expected, that doesn’t mean it’s good. Last night, Constellation poured better than expected numbers... although those expectations were really incredibly low." (35:53)
    • "Constellation is still not ready to give an all clear for their Hispanic customer base... ‘It still remains very challenging.’” (39:40)
  • “I’m not ready to pound the table on Constellation Brands again. I’d like to see their volume start rising before going positive. But... you get a trade here. The expectations are low enough. The stock's multiples (are) low enough. And the core business is stabilizing, if not yet improving. Too soon for me, but I don’t think you’re crazy if you want to start a small position...” (41:20)

The Lightning Round

Timestamps: 41:43–43:38

Cramer gives rapid-fire buy/sell/hold answers to callers:

• Q: SOFI (fintech) after recent drop?
  • "I think the stock has not come down enough...I want you to wait." (10:54)
• Q: Q (Brad Jacobs’ company)
  • Buy: “You can't bet against Brad Jacobs… I think it's a buy.” (42:14)
• Q: Viking Therapeutics (VKTKX)?
  • “I'm an Eli Lilly guy… If I'm going to do Viking, I'm going to do Viking Cruises.” (42:40)
• Q: Starfighter Space (new aerospace IPO)?
  • “You have a spot for a spec, F Jet is what I call an Uber Spec and there is room for an Uber Spec.” (43:07)
• Q: Best Buy and short interest?
  • “If I think it has got a good dividend and has some high quality management and I see a big short position like this one with 8% I do take a look at it… Best Buy does have a 5% yield but you need lower rates for that one to work.” (33:33)

Notable Quotes & Memorable Moments

• On early-year volatility: “I've seen this kind of early year action time and time again in my 44 years of trading and investing... sometimes it lasts about five days, other times... two weeks... equilibrium tends to be reached by week three.” (09:10)
• On sector rotation: "For the loser now will be later to win because the times they are a-changing." (09:53)
• On White House intervention:
  • "Every time President Trump takes a more interventionist approach to the economy, it makes me feel ancient." (43:52)
  • “JFK basically extorted the entire steel industry and within days they rolled back the price increase. Very Trumpian, right?” (44:52)
  • “Before we dismiss these moves as radical, I urge you to read some history... when the public is angry about inflation, the government starts getting real creative.” (46:58)
• On investing during policy uncertainty:
  • "It’s a highly interventionist policy, something you might expect from Bernie Sanders, not from Donald Trump. But when voters get mad about inflation, politicians of both parties tend to scorn the free market."
  • “Maybe you just don’t know how good we had it for so long.” (47:43)

Segment Timestamps Overview

• Market Rotation & Early 2026 Dynamics: 01:42 - 13:57
• 2025 Sector Winners & Breakdown: 13:57 - 23:42
• 2025 Sector Underperformers & Outlook: 23:42 - 32:55
• Deep Dive: Constellation Brands (STZ): 33:33 - 41:36
• Lightning Round (Rapid-fire Q&A): 41:43 - 43:38
• White House Intervention & History: 43:52 - End

Episode Takeaways

• Early January sees exaggerated rotations and volatility; keep perspective and look for relative value.
• Only three sectors outpaced the S&P last year; Cramer is optimistic financials, utilities, and health care could outperform in 2026—provided rates fall.
• Constellation Brands (STZ) offers a turnaround possibility but still faces secular headwinds.
• White House intervention in markets is not new; investor awareness of historical precedent helps maintain perspective when policy changes hit stocks.
• Cramer’s bottom line: Stay flexible, be patient, and watch historical cycles to avoid emotional missteps.

For further detail or specific stocks, check the relevant timestamps above or visit madmoney.cnbc.com.