Mad Money w/ Jim Cramer 5/19/25

Summary

Mad Money w/ Jim Cramer – Episode Summary (May 19, 2025)

On May 19, 2025, CNBC’s “Mad Money” hosted Jim Cramer in an insightful episode packed with market analysis, strategic investment advice, and interactive segments with listeners. This detailed summary captures the key discussions, insights, and conclusions presented by Cramer, structured into clear sections for ease of understanding.

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1. Market Reaction to the US Debt Downgrade

Timestamp: [01:22]

Jim Cramer opened the episode addressing the recent downgrade of the United States’ debt by Moody’s, highlighting the market's initial panic and subsequent recovery. He emphasized how fear-driven sell-offs often lead to opportunities for savvy investors.

• Cramer: “Stories like the US Debt downgrade story from Friday. They are classic get out now items after the close… the market rebounded with the Dow finishing up 137 points” ([01:22]).

Cramer compared the current situation to past downgrades, noting that while the initial reaction was negative, the long-term impact remained minimal as the economy continued to show resilience.

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2. The Danger of Fear Mongering in Investing

Timestamp: [09:51]

Cramer delved into the pervasive fear among investors, attributing it to sensationalist media narratives. He criticized the “get out now” mentality, urging listeners to remain calm and focus on long-term prospects.

• Cramer: “What good does it do to invest if we’re just going to be wiped out by our national balance sheet anyway… It’s totally counterintuitive and wrong” ([08:35]-[09:51]).

He highlighted the importance of distinguishing between short-term market reactions and long-term economic fundamentals, advocating for increased investment during periods of irrational fear.

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3. Revival of the IPO Market

Timestamp: [22:47]

Cramer provided an optimistic outlook on the Initial Public Offering (IPO) market, citing a resurgence after a period of stagnation. He discussed several recent IPOs and their strong performance, indicating a broader market recovery.

• Cramer: “After an anemic few months for IPOs, companies are finally coming public again… Aspen Insurance, up over 8% on its first day of trading” ([22:47]).

He underscored the potential for significant gains in newly listed stocks and recommended investors keep an eye on upcoming IPOs like Hinge Health and Mountain (MNTA).

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4. Interview with Lucas Sabi, CEO of ITT

Timestamp: [33:25]

In an exclusive interview, Cramer spoke with Lucas Sabi, the President and CEO of ITT, a company specializing in highly engineered components for various industries. The discussion focused on ITT’s strategic acquisitions, innovative products, and regional manufacturing approach.

• Cramer: “What we like about you is you're a manufacturer of really important, critical components that no other company can make” ([38:13]).

Sabi highlighted ITT’s commitment to innovation, particularly their Vidar motor technology, which integrates variable speed drives within the motor to enhance energy efficiency.

• Sabi: “Vidar is we put the variable speed drive within the motor… It pays for itself in less than two years” ([35:42]).

Cramer praised ITT’s regional manufacturing strategy, which minimizes exposure to tariffs and ensures high-quality production standards.

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5. Lightning Round Highlights

Timestamp: [30:25] - [43:45]

The Lightning Round featured listener calls where Cramer provided quick takes on various stocks and investment questions.

• Caller: Miriam from New York asked about whether to hold or sell McDonald's stock.

  • Cramer: “No, no, if anything I would keep buying it every time it dips… It’s just an incredible machine” ([30:25]).

• Caller: Kevin from New Jersey inquired about Coinbase amidst DOJ investigations and hacking concerns.

  • Cramer: “Robinhood is doing exceptionally well. And I would be a buyer of Robinhood” ([31:42]).

• Caller: Anita from Virginia sought advice on Sterling Infrastructure.

  • Cramer: “These are good. We often talk about them and we really like them because that money’s finally coming through” ([38:13]).

These interactions showcased Cramer’s hands-on approach to addressing investor concerns and providing actionable advice.

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6. Tariffs and Retailer Strategies: Case Study on Walmart

Timestamp: [43:45]

Cramer analyzed the impact of recent tariffs on major retailers, focusing on Walmart’s strategy to absorb tariff costs without passing them directly to consumers. He critiqued President Trump’s expectation for retailers to bear the full brunt of tariff-induced price hikes.

• Cramer: “If you try to eat the cost of a 10% tariff, they could over the years become cash flow constrained” ([43:45]).

He explained how Walmart’s large-scale operations provide it with the leverage to negotiate better deals with suppliers, allowing the company to minimize price increases for consumers despite rising costs.

• Cramer: “Walmart immediately told suppliers that they were going to have to make things much cheaper because they didn’t want to hurt the American customers” ([43:45]).

Cramer defended Walmart’s approach, emphasizing that their efforts to control costs benefit consumers in the long run, even amidst challenging economic policies.

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7. Final Market Insights and Conclusion

Timestamp: [42:08] - [47:28]

In his closing remarks, Cramer reiterated the importance of maintaining a bullish outlook despite short-term market fluctuations. He encouraged investors to seek out undervalued opportunities and remain vigilant against fear-driven decision-making.

• Cramer: “There’s always a bull market somewhere and I promise I’d find it just for you right here” ([47:28]).

He summarized the key takeaways from the episode, emphasizing the resurgence of the IPO market, strategic investment in resilient companies like ITT and McDonald's, and the importance of navigating economic policies with informed strategies.

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Key Takeaways

1. Market Resilience: Initial panic from debt downgrades often presents investment opportunities as markets stabilize and recover.
2. Combatting Fear Mongering: Investors should focus on long-term fundamentals rather than succumbing to short-term market fears amplified by media narratives.
3. IPO Market Revival: A rebound in IPO activity signals growing confidence in the market, offering new opportunities for growth-oriented investors.
4. Strategic Acquisitions and Innovation: Companies like ITT demonstrate the value of strategic acquisitions and continuous innovation in maintaining competitive advantage.
5. Retail Adaptation to Tariffs: Large retailers like Walmart effectively manage tariffs through supplier negotiations and cost-control measures, benefiting consumers.
6. Active Investment Strategies: Identifying and investing in undervalued or resilient companies can yield significant returns even in volatile markets.

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Jim Cramer’s episode on May 19, 2025, provided a comprehensive analysis of current market dynamics, offering listeners both macroeconomic insights and specific investment recommendations. By navigating through fear-induced market reactions and highlighting emerging opportunities in the IPO space, Cramer reinforced the importance of informed, strategic investing tailored to individual goals and market conditions.

Transcript

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[Jim Cramer]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other people make friends. Hey look, I'm just trying to make a little money. My job is not just to entertain, but to explain. Put it in context. So call me 1-873-CBC. Tweet me Jim Cramer Investors are an unsure lot. Who can blame them? We're taught to be scared. We're taught to sell stuff on any fright. Sell, sell, sell to get out now anytime things look ugly. Oh man, I hate that stuff. But you know what? Let's do something about it right now. You and me. Stories like the US Debt downgrade story from Friday. They are classic get out now items after the close. Really scary stories that scare people out of very fine stocks that could otherwise make them rich. And sure enough, when Moody's downgraded the debt of the United States on Friday, the last of the three big rating agencies to do so, the market opened hideously as the get out now crowd took action. They fled. The market rebounded with the dow finishing up 137 points was up even more at one point the SB advancing point of 9%, NASDAQ inching up 0.02%. Decent day now we've seen a big decline off of debt downgrade before The S&P 500 dropped an ominous 6.66% on August 5th of 2011 after state imports downgrade our debt from triple A to A plus. But it was all part of a hideous rollover that had more to do with potential default of European sovereign bonds than anything really involving Our own solvency. Although there was a ruckus in the budget negotiations, kind of like what we're seeing now. Then the S and P shed 1.38% after Fitch made a similar downgrade. But that was in 2023. Still bad, no 6.66 decline. In both cases, there was a level of fear that was out of sync with the short term prospects of the economy, which is what I care about. I say that because the long term implications of refusing to balance the budget could be catastrophic unless we can figure out how to generate huge growth in this country. Of course, in the long term, we're. We're all dead. So nobody cares about this stuff until the bond market starts making us pay a price for it in the short term. And everyone always feels that's about to happen. But I want to go back to the fear because the fears must be tamed if you want to become a good investor, first you have to be on the front lines to see it, to see where the fear is being generated. Now, I was on the front lines this weekend. I was signing bottles of my wife's phosphoro mescal at a beautiful Total Wine. And more in New York were Norwalk, Connecticut, where I got to chat with scores of investors, maybe you, many members of the CNBC investing club, where we have a meeting on Wednesday at noon. Of the people who were there principally to talk to me about stocks. One in four asked me about the darn dead downgrade. The level of fear was both fascinating and sad. Almost uniformly, they were concerned that the Ready Energies wouldn't pull something like this unless they believe there was a good chance that interest rates were about to skyrocket and rates didn't actually go higher today, causing a lot of people to sell stocks at the open, not listening to me from that talk that I gave them. But then they went right back down because there was no follow through, no ratings agency. Another one downgraded. They didn't. If you sold when rates had gone up in the morning, well, you look like an impoverished scaredy cat now. So that fear turned out to be unfounded. A second fear. What good does it do to invest if we're just going to be wiped out by our national balance sheet anyway? Now this was a little tricky. Our government has a huge budget deficit. Nobody ever does anything serious about it, including Doge, which never really tried to tackle the big issues. The Department of Defense favored cheap drones over most of its munitions. And I mean the real drones, the real cheap ones that Ukrainians and Russia Use instead of expensive aircraft that require five redundancies to ensure pilots don't get killed, we could save a fortune. And if we adjusted Social Security for just a few months, you know, a little few months, if we tax hedge funds, private equity funds, people like everyone else, or if we tax the interest and dividends like ordinary income, we might actually have fighting chance to plug the hole. But raising taxes and cutting spending are unpopular, so the problem never gets fixed. On the plus side, it could be decades before any of it blows up in our face. Everyone who sold stocks in my lifetime because of national debt worries has been proven to be dead wrong. So the idea that you should sell everything because of the debt downgrade is that early warning sign that makes no sense whatsoever. If anything, it's got to be the opposite. You're being given an early warning to invest more, not more aggressively, but more of what you can say. That's the real hedge. If you're worried about the government's credit worthiness not to get out. Now, I've always favored gold as insurance against excessive government borrowing, and that has worked well as of late. And when bitcoin became legitimate, I added that to the roster of what you'll need if nothing good happens with the debt. We have a president that seems to care more about bitcoin, the stock market, so he's a beacon for buying the stuff. But the concept of pulling out of the market because of something that might become a problem in the distant future is totally counterintuitive and wrong. Finally, there's the spur to sell that most upsets me almost immediately. On Friday night when I went to X formerly Twitter, I read post after post after post about how ugly the stock market would be on Monday morning, drenched in red ink. I read that multiple times. One after describe what would amount to be a second Black Monday to a person. These people were graphic about the pain that was ahead. Now, I don't know whether they were certain and stupid that it would happen or whether maybe they were short and trying to spread pessimism. I bet it was that. Oh my God. But it was really effective. But it was the kind of verbiage that would try men's souls to stay long. Now, I did my best to counter a bunch of these. I kept tweeting or xing or whatever. I mentioned the 2011 downgrade was very different because it came at a time when several European countries were fighting off defaults. Sure, we had bankrupts, budget negotiation going on in Washington, and we did get some compromise that was somewhat positive. Was temporary. As for the 2023 decline, barely matter. But the fear mongering was so intense that I gave up trying to counter it. And as the weekend went on, you could bet that Sunday night futures would be drenched with red when they open and then they just get more red. And that's exactly what happened in the NASDAQ particularly. And by the way various Jensen Wong keynote which I really loved. Although boy Was it a 11:15 was hard to keep my eyes open for that. Went back to sleep, then woke up again. Whatever it was terrific. But it didn't change anything. I think the fear feeds on itself. No matter how hard I try to explain. There to be little follow through from the downgrade. People just kept posting the equivalent of get out now to the point where the mainstream media got a hold of it. I'm sure the bears out there were praying we do a special to get more people to sell so they could cover their short positions. In reality, if interest rates had indeed skyrocketed then the get out now crowd might have had their day. But rates did the opposite. They pulled back from their highs. That's what happened. You think that's all she wrote? We were supposed to get crushed. Instead we rebounded nicely. End of story was just one more big buy opportunity. In reality that's not the case. There'll be many other dead out now is being issued ahead of you. You just need to remember two things. One, the people write these are either fools or who know nothing or incredibly shrewd short sellers who need to scare you as part of their business model. The shorts need to spread fear because while we're got a lot of problems, our economy is actually doing fine. Spread fear. Yeah, that's some business. Inflation isn't yet high, unemployment still low. Even if they come, we can deal with these problems and the so called stagflation they produce. Oh, the bears love that word stagflation, don't they? Without dumping everything right now it's hard because it's so persuasive. But you'll have to stick with me and we'll sit through this. Let me give you the bottom line. The crucial thing that we in the media can do and I say this is someone who talks to more individual ventures I that almost anyone in the universe and certainly more than anyone in the media is simply cool it with the fear mongering and cut off guests who advocate it. A little history and some constructive thought would go a lot further. If your goal is not to inflame but to inform. I Want to speak to Trey in Texas who might know what he looks like? Trey.

[Caller]

Jim, I'm proud to say I just bagged my first million in the fast food space of all places. Believe it or not, you can trace this journey back to a single French fry. One I slipped on coming out of a men's room at a popular chain I'm not at liberty to name. Well, in a windfall later, I'm looking for a safer growth option. Which brings me to Kevin Hockman, who's been cooking up one of the greatest comebacks in casual dining history. Jim is Chili's parent, Brinker International, a baby back by.

[Jim Cramer]

Yes. And I'll tell you what's most annoying to me. Once it started going down, the analyst said, well, you know what? I guess that's all they wrote there. Now we're all bored by how well he's doing. I am never bored by how well a business person is doing. And neither is Trey and that French fry. I gotta tell you, if he had said. If he had said that that was a Baconator, I would know where it was. Gary in Alabama. Gary.

[Caller]

Hey, Jim. Thanks for taking the call.

[Jim Cramer]

Of course.

[Caller]

Following you for a long time. Even before the Kudlow days, back when you were on the street.

[Jim Cramer]

That was Palo Zoe Cure. That was the Palazzo Cure, wasn't it? Long time ago. Yes. Yes, it was.

[Caller]

All right, so anyway, I've recently taken a position in Berkshire and it can't seem to get any traction since Mr. Buffett announced his retirement. What are your thoughts on that? Should I add to it?

[Jim Cramer]

I think that he's got a big bench. Look, who would, who would not have a bigger bench than someone who is his age? He's got the biggest bench in the world. You know what he has? He has the Jenkins hot seat bench. I like that. All right, anyway, look, the most important thing we can do for you right now is to cool it with the fear mongering, okay? I'm here to inform, not to inflame Man Money tonight. Are there any winners to be found amid the IPO market comeback? I'll tell you what I'm watching then. The market's been gaining momentum, but are there signs of stalling growth ahead? I'm going off the charts to find out. And later, I'm checking with ITT to hear this business, let's say industrial portfolio name could stick with you for a long time. And I gotta tell you, it's the kind of stock that nobody talks about. And that's their ban. So stay with Kramer, don't miss a.

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[Jim Cramer]

Have a question?

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[Jim Cramer]

Miss something?

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[Jim Cramer]

After an anemic few months for IPOs, companies are finally coming public again. For about five weeks after liberation Day, the only deal of any meaningful size was Chaji, that's a Chinese tea house chain that came public on April 17. But now that most of the reciprocal tariffs announced by President Trump have been rolled back or paused, and earnings season is going well, the IPO windows wide open again. In fact, while The S&P 500 had a very nice recovery from its lows, the Renaissance IPO ETF that includes the largest, most liquid newly listed stocks has run up nearly 40% from its lows on April 7. Some of the few companies that came public earlier this year have also caught fire. Core Weave, which looked like a disaster when it barely managed to launch its IPO late March, has now more than doubled from its deal price. And that's what tends to happen at the start of a new IPO cycle. People are skittish, they're reticent, they hold back, let the good ones go by. Then they try to play catch up once they realize they missed out on the IPOs are being priced to move and have investors win. And that's what Corby was price to move, investors win. With the overall market recovery, the decline of volatility in general and generally the strong performance of the few stocks that managed to come public before the IPO freeze, we're starting to see the deals start flowing again. In the first week of May, a pair of insurance companies came public. There was a nearly $4 million offering from Aspen Insurance, that's a reinsurance company backed by the private equity firm Apollo, as well as $110 million offering from American Integrity Insurers, which is primarily focused on selling home insurance policies in Florida. Then last week we saw the largest deal since the Smart Shop self storage offering since we weeks ago. And that's when Etoro, an Israeli financial technology company best known for a brokerage platform that's popular retail traders, came public in a deal that raised over 600 million in gross proceeds. Can do worse than that. These first major IPOs to test the market again have generally been well received. Aspen insurance, up over 8% on its first day of trading. Stocks now almost 14% of overall it's offered above its offering price. Etoro popped nearly 30% on its first day of trading this week. Very exciting. It's come in a bit now but remains up more than 20% from its offer price. I like it. American Integrity Insurance hasn't done as well, so only about 3% from where it came public. But it's still in positive territory. Two more decent sized IPOs should happen later this week. There's the digital health startup Hinge Health. It's looking to raise over $400 billion. And the ag tech company Mountain, and that's spelled M N T and wants to raise roughly 175 million. And the latest step for the IPO market recovery, we're starting to see IPO filings pick up. Look, the big news last week was the Chine, an online banking disruptor as member of the 2024 CNBC Disruptor 50. And it was a number 22 that filed for an IPO in the NASDAQ. We always hope that all those, if all those companies file, boom. That now this chime should be one of the largest deals of the year so far as the potential to be the first 1 billion offerings since Corey. And that was expected in early June. Now this is all very encouraging, people. It's a sign of an increasingly healthy stock market. However, the IPO market's still fragile so that you can't take this recovery for Granted. Now here's something you might want to follow every week. Bill Smith, he's the founder of CEO of Renaissance Capital, puts out this terrific summary of action in the IPO market In his latest miss if he said that he's looking for three things to confirm that IPO market really is ready to roar again. One, the volatility of the stock market needs to remain relatively low. But two, more sizable deals need to perform well and we need to get more IPO filing, especially from large companies. So far we're seeing all this happen, so let's hope it holds up because it's very bullish. But if the IPO market keep recovering, what are some other ways to play it? I'll do my best to monitor the deal flow and look into some of the individual names that are coming public to see if any of them are worth recommending like we did before, which we thought would be terrific. I think chime certainly worth a closer look next month. And I might take a look at some of these this week's IPO names again. That's Hinge, Health and Mountain. They're both intriguing, although I need to do more homework before I say anything definitive. Unfortunately I'm not as Shaz about the insurance companies that came public this month. But if you take a step back for a second and consider the theme in the aggregate, it's a very easy time to play an uptick in IPOs. Just buy the investment bank that's the best under the sun and that's Goldman Sachs. Now of the big banks they're the most levered investment banking and that includes IPOs and underwritings. We've owned Goldman Sachs for the Chapel Trust since late last year primarily because I thought we'd see an uptick in deal activity this year as the Trump administration replaced the Biden administration. Now that got temporarily derailed by the President's tariffs but now that those of both have been paused or rolled back and if they don't put the rear their ugly head again, I think the IPO revival is back on schedule. And yes indeed I did work Goldman Sachs in the 80s. Now Goldman stocks started this year strong climbing to a new all time high in the 670s in mid February right around the time of the market the broader market started roll over. But as it became clear that the new Trump administration was going to prioritize tariffs over its more pro business policies, that's a real negative for both IPOs and M and A. This thing pulled back quite only falling nearly 35% from peak to trough by the time it bottomed at $440 on April 7. Since then, Goldman's been rallying hard in part because the IPO market bounced back and also because there's been a pickup emerging acquisitions. Now the antitrust regulators don't reflexively try to block every deal. That's the other piece of the puzzle. As with the IPO's M&A activity has slowed down significantly when everyone was worried that the tariffs would crush the economy. But over the past few weeks we've been more and more seeing more and more large M and A tractions get announced. Like the $10 billion acquisition of Skechers by private equity firm which really shocked me that those guys wanted to do that or the nearly $35 billion acquisition of Cox Communications by Charter Communications. Major tie up for the industry. We also just saw Capital One Financial close on its acquisition of Discovery. Just today The FCC approved FCC's $20 billion acquisition of Frontier Communications. By the way, don't forget the fact that Dixon is trying to buy Foot Locker. All this is very good news for the investment bankers at Goldman Sachs. Of course the stock got hit today after JP Morgan executives lowered expectations for their investment banking business at an Investor day event. But I believe you can buy. Really? I'm not worried about that. I think you buy Goldman the weakness. So here's the bottom line. Now the IPO markets make a comeback. I think you can continue barring any additional insanity on the tariff front. Same goes for M and A. So if I'm right, then Goldman Sachs will be the biggest winner from all this wheeling and dealing and you are getting it a very big discount versus where I am going to tell investing club members Wednesday at noon where it is going man. Money's back everybody. Coming up, are stocks set to continue their move higher?

[Caller]

Kramer's breaking down what remains to be.

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Seen in the charts to signal a.

[Jim Cramer]

Leg up next.

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[Jim Cramer]

Now We've had a tremendous run since the lows in early April as White House has rolled back its most aggressive tariff plans. But what's going to take for the market to keep climbing? Well, earnings season has been pretty encouraging. This Moody's debt downgrade was discouraging to many, as I said at the top of the show and might make you worried that stocks are once again hostage to the bond market. Basically, things have been going great for stocks for over a month now. We want that momentum to continue. Remember, we are for you. But we also need to keep our eyes on anything that could throw the market off track. Now we've learned anything this year. It's it's very easy for stocks to get derailed, right? And that's why we got to figure out a little deeper. So we're going to go off the charts with the help of Jessica Inskip. She's that first woman on the trader desk at Fidelity, now director of investor [e-mail] as well as the co host and founder of the Market. Make her podcast to get a sense of what we need to see before this book can keep running. She's been really really red hot of late. So let's start with the weekly chart of the S&P 500. Schizard says that right now the S and P showing the beginnings of a bullish trading cycle but it hasn't yet been confirmed. To get the confirmation she needs to see the 13 week moving average, okay and that's this line, okay Cross above the longer term 26 week and 40 week moving average. Remember, use these 13 weeks, 26 weeks and 40 weeks because that's 1, 2 and 3 quarters. And the quarter is the single most important unit of time in business. We're not there yet. Thanks to the recent rebound, these quarterly moving averages are now acting as floors of Support for the SB500. But you won't feel confident till the 13 week goes above the 26 and the 40. The last time we saw that set up was in December 2023. Was tremendous time to buy. But you know, think about what. What she's asking. She asks. That's a big ask. Okay. Now inscript likes that the S and P is now making higher lows and higher highs. That's a classic sign of a healthy market. But she says we essentially need to overcome every lower high on the way here. And the next target is 6,000. That's less than 60 points from here. Okay. And above that we have what Inscape calls the ceiling of uncertainty around the all time highs at 6.47. So I don't know if we can possibly break that out. Hard to make a new all time high, isn't it? When Wall street can't figure out what the future looks like. And Skip thinks it'll be difficult to clear that hurdle without more clarity, especially from the government, whether we're talking about this tax cut bill or the final form of President Trump's tariff policy or the Federal Reserve. On the plus side though, Inskip points out that the moving average converters divergence line on macd an important momentum here. This is the most bullish thing on this chart has made a bullish crossover. And that I think is going to matter where the black line crosses above the red one. That is crucial. And it's one of the most reliably positive technical signs out here. So this is all questionable and this is game on. Next up, how about the weekly chart of the S&P 500 equal weight. That's an alternate version of the index where every stock has the same weight. The normal SB500 is weighted by market capitalization, which means the index is heavily biased toward those mega caps to talk about like the formerly Magnificent Seven. The equal weight filters that out and brings the focus on the other 493 stocks in the group that aren't as heavily regulated and aren't in the news. And says the S and P equal weight is moving in the right direction with the quarterly moving averages flattening out and acting as floors of support. Okay, so we can see these doing okay. But before she can really feel confident here, she needs to see the S and P equal weight break out above its cellium resistance running from 7333 to 7421. Okay, that's what she's got to we've got to break out of. Those are the lower highs this thing made in the way down in February, March. Like the normal S and P though, this thing's got a bullish crossover in the MACD line. Again this just so so this really bullish. So these are mixed indicators. How about the X L K? That's the technology selects Spider Spider fund And Skip thinks this S and P tech index looks to be in the early innings of a bullish trading cycle. But again there's more resist key resistance levels to clear before we get another major leg to this rally. When we talked last month, she called out the $205 level as the key ceiling of resistance. The level and roared higher. Now the next ceiling runs from 230 to 37. So we could see, you know, we've got to get above this. All right, that's based on last year's highs and we're right in the middle of that range currently. Like the S&P 500 the S& P. Once again the X. Okay. Has a bullish crossover macd. So that's more reason to be optimistic. Tough, tough go to be over this. Okay, not so tough to see a breakout here. However, at the end of the day, Inscript thinks that the whole market is being capped by a ceiling of uncertainty. And what can give us clarity? The bond market. Specifically the yield in a benchmark 10 year US Treasury. So take a look at the daily chart. The 10 year can launch us to new highs or kick us down to terrible lows depending on which direction it heads in. If you like higher stock prices, then you want treasury yields lower. All right, keep that in mind. Lower stock prices go higher. Tax bond prices go higher. Always good because it lowers the yield in this case. Unfortunately we didn't get that today thanks to the Moody's debt downgrade. And Skip says that you if the yield on the ten year keeps rising, well that's a major risk to the rally of the stock market. But really wasn't that bad today. When you look at the chart, the Yield on the 10 year sure looks like it's headed higher. The next ceiling resistance is at 4.56 up about 10 basis points. If the 10 year blows to that level, the next Hillary resistance is 4.67 followed by 4.8. And if the yield on the 10 year closes above 4.8, well, let's just Say that is the danger zone. I completely agree with this. That's very far away though. When the 10 year shot up to this levels in January, that's when the stock market ran out of juice. Could happen again, but we don't want that. Only just when the market stopped being totally hostage. President Trump's trade policy. We need to worry about treasury yields. Yet that wasn't a problem. Wall street assumed we were headed for a tariff induced recession. But now that recession is likely off the table. Higher interest rates are back on the table. Definitely something to watch out for. What people don't recognize is that it's better to have the latter than it is to have the former. But that's just me as a stock person. Here's the bottom line. The charges interpreted by Jessica and Skip suggest that we've got some bullish momentum. But for the moment it's limited by a ceiling of uncertainty. Until we get more clarity, both the Broader S&P 500 and tech more specifically probably only have so much upside. At the very least we might need to digest our recent gains. Especially if the bond market keeps going in the wrong direction. Let's take some calls. Let's go to. How about we go to Miriam in New York? Miriam. Hi, Mr. Kramer. Hi. Okay, how are you? This box? I'm good. Little nervous talking to you. Anyway, I've had this stock for over 20 years. Is McDonald's. Should I sell it or should I keep buying? No, no, if anything I would keep buying it every time it dips. I been telling people to buy McDonald's for years now. We had some people who went, the stock dipped down to 305, said oh, it's over for McDonald's. They do not understand the strength of McDonald's. And it's just an incredible machine, how well it is run. I think management's terrific. It's a great stock. Hold on and buy on any weakness. Matthew in New Jersey. Matthew, Booyah. Jim come and see you from New Jersey. And it goes without saying, let's go Birds. Go Birds. Thank you.

[Caller]

Go Birds.

[Jim Cramer]

Of course. Thank you. And thank you for everything you do for retail. Especially. Especially when you called the kettle Black back in 0708 giving us all a heads up. We really got here. Got a call. Right. Thank you, Matthew. Can't be. I got a question on Carvana. You know, I know it's hitting the 300 level here and I like it now. You always get it. Look, there's always something guy who wants to take it down. Now those of you who Remember, we went long. Ernie Garcia, he's the CEO in the single digits. I said I had enough. This model is great. I had bought a car with it. It was an amazingly smooth transaction. I became a believer and I have not backed away for one minute. And Ernie knows that. And I'm very proud of it and we've been supporting it and here it is at 305. Every time it's going down like McDonald's, we say bottom. I mean, it's just a terrific situation. Hey, why don't we go to Brandon in illinois? Brandon, booyah.

[Caller]

Mr. Kramer, longtime listener, first time caller. With Coinbase being added to the S and P today, how do we digest Thursday's news of both the DOJ investigation as well as a hacking situation? And real quick, 1128 Lincoln Financial Field, prime time football. Bear down, Jimmy boy.

[Jim Cramer]

Don't worry, I'm already there. I, I, by the way, I committed to buy, to going to the, to the Commander's game on that, that Saturday game and Washington. Now here's what I feel about Coinbase, another stock that I like and I'm going to give you a twofer. I think that you should also like Robinhood. I like that more than Coinbase because I did wasn't that crazy obviously about the hacks, but Coinbase is doing very well. But Robinhood is doing exceptionally well. And I would be a buyer of Robinhood. Like the charts interpreted by Jess Ginsk suggests that any momentum is going to be held up by the ceiling of uncertainty. Until we get more clarity, the market will only have so much upside. I'm a little more bullish than she is though. Now much more than I included my exclusive with tech solutions company itt. Hey, they make pumps. You can make a ton of money on that. Then after Walmart's tariff comments caught the President's attention, I'm breaking down the domino effect. It registers across the retail space. And of course, all your calls, rapid fire, tonight's edition of the lightning round. So stay with Kramer. Ever since the market bottom on April 7, the cyclical smokestack stocks as I call it, have come roaring back. Take it. It's a century old now industrial company that makes highly engineered components for all sorts of end market transportation, Transportation, energy, aerospace, defense. The stock has rebounded from 105 a little over a month ago. 153 today. Now it doesn't hurt that it report a solid top and bottom line beat at the beginning of the month. And last week they held this really bullish capital markets day where the management laid out the case for owning their stock. I liked it, but please don't take it from me. Let's check in with Lucas Sabi is the President CEO of ITT to learn more. Mr. Sabi, welcome back to Mad Money.

[Lucas Sabi]

Thank you, Jim. And we're very honored to be here. Thank you.

[Jim Cramer]

I've got to tell you, since you've been here, you've made a lot of money for people in the capital markets. Let's say the deck is very thorough. You've made some terrific acquisitions which I think have helped things. I want to start with the acquisitions because you're a very shrewd acquirer of things that don't necessarily look like they will be exciting.

[Lucas Sabi]

Thank you. Thank you, Jim. We have, we've worked very hard in developing this funnel of opportunities and we looked at growing markets with a healthy margin. Good companies that are leadership position in the market. They operate with a good management team. So is Vanny Hoy is a pump manufacturer Crowgeny pump manufacturer for in the marine industry for lpg, LNG ammonia, K Saria Interconnect solution in the defense market. So good markets, good companies, good management.

[Jim Cramer]

Well, that lng, the plastic actually the Chinese just put a tariff on that. But they need our lng. There's a shortage there. We have it. Anything that you can do in those industries is very vibrant.

[Lucas Sabi]

That's a. That's indeed. And this is LNG for today. But tomorrow, Jim, in the next 10, 15 years is going to be ammonia, the way to transport hydrogen. And we are the only company today that have pumped pumps that are pumping ammonia as a fuel in the marine.

[Jim Cramer]

And I know that our country has a huge amount of ammonia and the rest of the world does not have enough. So who are you working with in the United States to be able to sell ammonia pumps?

[Lucas Sabi]

We're working with all the marine industry. If it is, you know, the builders, if are the operators. Each and every one of them is the builders because of the reliability that we have in terms of delivering our pumps on time. But also the operators who are more interested to ensure that our pumps function and function all the time.

[Jim Cramer]

Now I do want to talk about. There's a lot of innovation. People don't think there is. People just think that, well, pumps are pumps, which is completely untrue. So maybe we can talk about Vidar, which is a very good motor that can explain to people what value added you you have. Sure.

[Lucas Sabi]

So this is different. Innovation is how we differentiate in the market. So this is how we win and outperform the competition. So Vidar is addressing a problem that we have in the flow industry, which is wasted energy. You know, when you have a pump, the pump is the heart of the industry. You're pumping fluids, you know, for your carbon boxes outside your door, etc. But when you use a pump, the motor always run 100% the same speed. Even if you need half of the flow, etc. What you do, the motor keeps on going 100%. It's almost like you drive your car foot full on the accelerator and then you brake just to regulate your speed wasted. Now the industry came out with a solution which is variable speed drive. So with a variable speed drive, you regulate the speed of the motor. But the variable speed drive are big electric boxes. They are big, they require space electrical, they require clean room. If you are in a, in a plant, you have dirty environment, you don't have space. So this is why variable speed driver use only 15% of the cases. This is where Vidar comes in. So Vidar is we put the variable speed drive within the motor. Now you have motor variable speed drive all together, easy drop in and drop out. It pays for itself in less than two years.

[Jim Cramer]

In less than two years. That's fantastic. Now you guys do. I do want to mean, I think that that shows you. Even with a tariff that would be good. But you do region. But I like how you call it region for region.

[Lucas Sabi]

Yeah.

[Jim Cramer]

Which is like for life, but region for. Explain what region for region is so that people understand. No, this is not a situation where you really have to worry about sharps.

[Lucas Sabi]

Yeah, we are in the market for the market market. Which means that we are producing and making in North America for the North American market. In Europe, for Europe, in Asia, for Asia. So this means that we are not as exposed as other companies to the tariffs because they went to Asia for, you know, low labor cost. Actually we are in Asia, but for the Asian market. We are working for western company with Western company with Asian companies, but for that market. And we are not exporting from there to usa, vice versa. So these reduced our exposure.

[Jim Cramer]

There are a lot of people who feel that Americans do not know how to make what you're making. We feel this is at the crux of of what was in a presidential election. That these jobs all went overseas, that we couldn't do it, that they wiped us out, blah, blah, blah. Not true.

[Lucas Sabi]

That's not true. We make pumps in Seneca Falls apart state New York. We make engineering valves in Lancaster. In Pennsylvania. We're making Connectors in Irvine, California. So we end those connectors are the connectors that you put in the most sophisticated defense programs. Connectors that keep the soldiers in Ukraine safe. Right. So we are making those stuff in.

[Jim Cramer]

The U.S. okay, so if I go to Seneca Falls, I go there and I think, well, why didn't that plant go to Monterey? Why didn't you take it to Monterey? Right.

[Lucas Sabi]

Well, because a lot of engineering resources, a lot of competence and engineering are actually there in Seneca Falls and you in America. So if you're developing that pump, in many cases the engineering is very is better if it's close to your manufacturing for the improvement that you want to make. Right. So that closeness and that working together is what helps to make us more competitive.

[Jim Cramer]

Well, look, I just think you've done a remarkable job. I go down the block and I see the old itt. And by the way, people, there's so much hallucination. Don't use any of those services. They'll talk about how telecommunication business is doing. Well, that is precisely wrong. What we like about you is you're a manufacturer of really important, critical components that no other company can make. I want to thank Lucas Savage, the presidency of IT guys. This is how money's made. You read about companies like this, you find out how they're doing and you see their incredible orders, and then you watch their stock go up. Maybe with you, mad money's back. After the break, here is time for the life plan to sell. And then the lightning round is over. Are you ready, Steve? Dive down the lightning round. Crunchyroll. Let's with start Jake in New York. Jake, Booyah.

[Caller]

Jimmy Chill.

[Jim Cramer]

How are you doing? I am doing well. How about you?

[Caller]

I'm okay, man. But I'm wondering about this company, if they're okay.

[Jim Cramer]

It might be a little bit of.

[Caller]

A melty ice cube.

[Jim Cramer]

What do you think about Zoom? I think Zoom's last quarter is actually pretty good. They do have some good apps. My stepson worked there. In fairness, fully disclosed. And I really like them very much and I think they're doing a lot right. But it's taken them a very long time. Time. Let's go to Bob in Connecticut. Bob? Yes.

[Caller]

My stock is immunity biology ibrx.

[Jim Cramer]

IBRX is not a great stock community bio. I've looked at it for a very, very long time. I don't like the fact that they are. They've been losing money forever. I am not in their camp. Let's go to Yin in Washington. Yen say, hey, Jim. Booyah. Booyah. To you. What's up?

[Caller]

Hey. This stock has been up about 150% over the last three weeks, but has dropped 60% today. AVA Technologies.

[Jim Cramer]

Yeah, they got an Airbus contract that's really good. And I gotta tell you, I think that what's happened there is people. Got it. You had to be in it beforehand. Now you're too late. I have to move on and find the next next one. Let's go to Patrick in California. Patrick. Jimbo, big boy. I see you, big guy. Oh, thank you, partner.

[Caller]

Thank you for taking my call. I'm making thousands.

[Jim Cramer]

You are the Mac daddy dog. Mac daddy. Okay, thank you. Thank you. Sound hound. AI. Sound hound. I gotta look at Professor. Professor Ben Stoder, the scientist. He and I often, often coagulate about some soundhound. There's a new way to use a bad verb and it's not true. Here's the deal. I think soundhound is really. It's not a thing of an imagination. They could end up making money. But enough. Enough with the soundhound. Hey, look, I. I tolerate Palantir. How much can you ask from one person? Let's go to Kevin in New Jersey. Kevin, how you doing?

[Caller]

Jim, happy 20th.

[Jim Cramer]

Oh, thank you, buddy. Thank you. Appreciate it.

[Caller]

Don't you wish you were that young again?

[Jim Cramer]

Nah, I like where I am. It's not bad. I'm a fine wine.

[Caller]

There you go.

[Jim Cramer]

I'm a chemist, so I got.

[Caller]

I got. My father had a. It was originally called the Jenna valve put in. It was a hard, hard valve based on. He couldn't have the conventional valve put in. So I did a little research. I never knew who was in control of his valve, only to find out. Edwards Life Science.

[Jim Cramer]

Yeah, they're now in a good zone. They were in a bad zone for a long time. They're good. I saw someone recommend it. I was watching, you know, Frank's show this morning, and I was listening to Jensen One Ear, trying to, like, my third time trying to get it together there. And someone was recommending Edward Sciences. I looked up, I said, smart fella. How about we go to Anita in Virginia? Anita, hi, how are you, Jim? How you doing, Anita? I'm a member. Oh, fantastic. Don't forget, Wednesday meeting. Thank you. Yes, yes. And I've just signed up again for the club membership. Oh, thank you very much. Thank you. So my question is about sterling infrastructure. Yeah, I was late to this one. This is a very, very good company. I was focused too much on AE comp and floor and caterpillar. You have A good one there. These are good. We often talk about them and we really like them because that money's finally coming through. And that. Ladies and gentlemen, conclusion of the Lightning Round.

[Commercial Voiceover Artist]

The Lightning Round is sponsored by Charles Schwab.

[Jim Cramer]

Was Walmart really supposed to eat all the tariffs that been put on the goods it carries? Sure sounds like it. Take a look at President's posting this weekend. Quote, Walmart should stop trying to blame tariffs as the reason for raising prices throughout the chain. Walmart made billions of dollars this year, far more than expected. Team Walmart and China. They should, as it said, eat the tariffs and not charge valued customers anything. I'll be watching and so will your customers. First, let me say that that's a nice thought. Very Bernie Sanders like it would be terrific if Walmart just operated as a charity, directly subsidizes customers. Fact is though, all retailers are wrestling with these tariffs and almost none of them can afford to eat the cause because they have incredibly low profit margins to begin with. Forget that. None of them knew the tariffs were coming, so they couldn't plan ahead. When they did find out, they did their best to ship their sourcing to countries that look like they'd be the lowest hit with the lowest tariffs. Why? Because they didn't want their customers to get hurt. They might have been able to actually deliver better prices for the customers of the White House and given them more time to get ready. But they didn't know about Liberation Date, nobody did. So they didn't get a chance to find lower prices for a lot of their goods. I'm sure they're working on finding new sourcing right now, but as the President surely knows, you can't change your entire supply chain overnight. Now, Wal Mart immediately told suppliers that they were going to have to make things more, much cheaper because they didn't want to hurt the American customers. It's not like Walmart's vertically integrated, but it sure is a heck of a lot of heft when it bargains with the suppliers because there is huge scale and scale means power. My understanding is that they negotiate the best deal possible, each item. The company then had to decide how much they could make on these goods when they sold them to their customer. Further, my understanding is that they tried to make it so other items that weren't tariffed only saw their prices raise a little bit. They blended things to prevent a big increase in price for some specifically heavily tariff products. Good thinking. Now there may be some cases where Wal Mart plays offense to gain market share by eating the cost entirely. And then keeping prices lower than the competition. But they don't yet know how much they'll have to lose on each of the item. They'll definitely lose money on some though, which is why management didn't put out a forecast. Now, Wal Mart had the bad fortune of reporting first, and that's why they were the most visible. We're about to hear from a whole slew of retailers, most of which have nowhere near the half Walmart has with its suppliers or the low margins that Wal Mart has on goods it sells to consumers. I'm willing to wager that given Walmart has price leadership on pretty much every item it sells, the President would most likely end up posting that the other companies should cut their prices to as low as Walmart's. None of them, with the exception of Costco, has the scale to go to bat for the consumer like these guys do. He would post quote, why can't you guys be more like Walmart, that great Bentonville Colossus? I'm watching you. At the end of the day, Walmart's doing its best. It's always tried to hold the line on prices. Those of us who actually shop in stores like Walmart know that only Walmart and Costco have really low prices. Check them out. To go after them for raising price post tariff is to go after the best inflation fighters in the world. These guys have low single digit margins, for heaven's sake. If they try to eat the cost of a 10% tariff, they could over the years become cash flow constrained. Oh, and if the President had given them time, prices would be lower still, but they didn't get that time. When the smoke clears, Wal Mart will have the lowest prices, tariffs or not, this is the last company on earth that should be singled out for profiteering. If even Wal Mart's guilty, then nobody is innocent. I like to say there's always a bull market somewhere and I promise I'd find it just for you right here. Made money. I'm Jimmer. See you tomorrow.

[Commercial Voiceover Artist]

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 trading@schwab is now.

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