Transcript
Empower Representative (0:00)
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Bank of America Representative (0:31)
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Jim Cramer (1:04)
My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a mo market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other people make friends. I'm just trying to make a little money. My job is not just to entertain, but to educate, to teach you. So call me at 1873 CBC. Tweet Mitch McCramer. Want you to listen to me. Breathe in, breathe out slowly like a minute. And don't take any action until you're certain that you can handle any amount of pain. If it goes against the house of pain. If you think you can cope, then use the craziness that is happening in this stock market to start a position or to put money in an index fund that mirrors the S&P 500. Because I think you'll do fine. But if you can't take the pain, don't even think about it. This market's way too volatile, way too fragile. You're almost guaranteed to get hurt here, at least short term. So if you lack the mental fortitude, you'll end up buying high and selling low before you watch the market bounce right back as it did today with the averages opening decently, then just getting hammered and then coming right back up. Dow finishing up 223points as the advancing.5.5%. And the NASDAQ after being so hideous I could barely look at it. Gaining point 7%. How can markets be so out of control? And they are. Well, because frankly we are in a very emotional market. It's a market that's torn between buyers who see terrific opportunities because the market's down and the Wal Mart White House where the President keeps trying to give you every day lower prices on stocks almost every time he talks. I wish I were kidding. This morning we got this non farm payroll report from the Labor Department and frankly it was a perfect set of figures for the bulls. Decent job growth, not a lot of inflation. That's a great setup for investors who suddenly petrified that we are going to head into recession thanks to President Trump's mercurial attitude towards implementing his own agenda. But once the market opens, we hear that the President wants to put on new tariffs. I don't know who. And that's going to happen today. Then some moronic money manager decides to sell billions of dollars worth of tech stocks and economically censored stock while taking those proceeds and simultaneously using them to buy recession proof names. That's what you saw today. The companies that make too faced uncrossable goldfish. It's a kind of colossally stupid move that distorts the entire market and misleads everyone who's watching the ticker. Not me, because I've done these trades, I've done these programs and I saw it coming. Nothing kills confidence so like the whippy nature of these trades combined with the fear of presidential pain. So you get something like fable cascade of selling that almost always marks a short term bottom. Which is why I say breathe. Because if you can, this will be a total market for you. Toto, as in turn off the oxygen. And with that little explainer, why don't we see what's lurking in our game plan for next week? First remember we are in a clubber lag market. No dispute about that. Right out LA Rocky 3 where the prediction is pain. And pain gets dispensed regularly, especially even on the weekend. Nothing stops. So we should expect to come in on Monday with a whole new set of parameters about trade policy. And that's a big reason why we're seeing such violent repositionings on Fridays. They're afraid. The accounts are afraid. Individual earnings have been de emphasized by the President's arbitrary dispensing of tariffs and of course suspending of tariffs. With each each waffle we've that we see people leaving this market because I believe the stock market is still the greatest engine of wealth creation in history. But I often feel at cross purposes with the President now, even though I'm generally pro tariff because our trading partners never play fair. But in the end, I'm a process guy. I like a planned rollout of tariffs. While Wall street never likes tariffs, what it really hates though is uncertainty. It hates that more than tariffs. In this environment, individuals feel like play. Individual stocks, they feel like play things play things of a White House that feels at war with itself. They're not playing so and you can't think of them that way or else you're going to miss some tremendous opportunities. For example, Monday Oracle is going to report and if we do it after close, I bet they're going to have some really positive things to say. Now Oracle, a very good software company, has become a great data center company, which is terrific until we learned that some Chinese outfit could create high quality AI models using very much less hardware. That's a simplistic way to put it. But let's just be honest. The stocks have never traded the same since China revealed its deep sea source of, let's just say of incredibly fast but much less expensive AI. Does it make sense that that's the case? No, it just doesn't. But it certainly hurt the valuations, the semiconductor stocks. Last night Broadcom reported an amazing quarter. Its stock industry wore it for the close. Then it got dragged down by that textile program I just mentioned for bouncing right back when it was. That ridiculous contrived program was over and it finished the day up more than 8%. But were you in there from the beginning to the end? Many people probably left in midday. This kind of action has become the norm. I expect Oracle to have almost as good a quarter as Broadcom and then do the same thing. We've got some retailers reporting on Tuesday morning. I'm keen on Dick's Sporting Goods, which is pulling away from the others in the sports category. I think they'll deliver very strong set of numbers and it jumps like a pole voter when that. When you get that kind of number. So it might be worth being in Wednesday. We get another chance to throw the market under the bus when we see the Consumer Price Index number. If the CPI runs hot, I'm sure the numbers from a stock like Oracle simply won't matter at all. Sale of V I'll tell you this. If we get a soft CPI and a soft pie on Thursday, the drumbeat of a rate cut will grow so loud, so loud it might even overshadow the pain forecast for the White House with cool inflation readings the Fed has no reason not to cut. The most important part of the week comes Wednesday after the close. And that's when Adobe reports it's got to break the spell of undeserved negativity surrounding its stock. I bet CEO Shantan Orion will deliver something that makes the stock worth owning into the print. Dollar General reports Thursday morning and this one's been all over the map lately. Near the bottom of it, I think this company and Dollar Tree have become the odd men out as Walmart has hammered prices so low that they guys can't compete. Dollar stores, they, I don't know, they seem to be at the mercy of the big suppliers, not Wal Mart. I am not a buyer of Dollar General or Dollar Tree. One stock I am a buyer of though is Costco, which reported excellent numbers last night and still got obliterated. Wait until Tuesday and then buy some. All the sellers will probably be done. It's a long standing position for my travel trust. I actually want to buy more. I haven't want to do that in a very long time. After the close and by the way, it did not miss earnings. That's just wrong. Those are people who don't know how to read Costco's report. I do. After the close we hear from Ulta Beauty and the new CEO Keisha Steelman has to explain how Ulta remains the most relevant reasonably priced cosmetics chain. Prices have to be kept down to beat all the discounters. While we're trying to get a bigger slice of the makeup pie. Cosmetics have become the biggest battleground in the entire store and Ulta's got to win them back from Amazon. Finally, Friday we get the Michigan consumer sentiment number. I didn't focus on this number much at all under President Biden because Biden was very predictable, so it was easy to make plans. Sure, Wall street hated many of Biden's policies, especially on interest, but he rarely took us by surprise. Trump surprises us every day. You see, that matters because we're a consumer driven economy, people. If optimism rules, there are some otherwise very risky stocks that are just quite simply worth buying. But if the pessimists are in charge, well then all sorts of money managers will dump their economic sense of stocks only to watch them power up once they're done. Like that moron manager did earlier today, wrecking midday's market. Again, the markets can handle any amount of negativity. What they can't handle is uncertainty. The bottom line. Look, it's one of the toughest markets I've seen in years because if your portfolio is a quarterback, you have no defenders and you're getting sacked or being from the blind side every time. And let me tell you something, all sides are not blindsides. So if you want to buy a stock, make sure not to buy it all at once. Buy slowly because the stock you purchase might be down five points by the time you get your report. Irv in Louisiana. Irv.