Mad Money w/ Jim Cramer – July 28, 2025 Episode Summary

Released on July 28, 2025

Host: CNBC’s Jim Cramer
Podcast: Mad Money

1. Trade Deals and Economic Impact

Trade Negotiations with Japan and the European Union

Jim Cramer opens the episode by discussing recent trade agreements:

• Trade Deal Achievements:
  • With Japan: Secured favorable terms improving bilateral trade dynamics.
  • With the European Union: Achieved a comprehensive deal, reducing tariffs significantly. (Cramer, 01:09)

Economic Implications:

• Market Response: Despite these wins, the Dow slipped by 64 points, Nasdaq advanced by 0.33%, and the overall market showed muted reactions. (Cramer, 07:28)
• Tariffs: A blanket 15% tariff on most European imports was negotiated, significantly lower than the initially threatened 30%. Cramer emphasizes that this reduction is strategic, aimed at balancing commerce without stifling trade. (Cramer, 14:00)

Cramer's Insights:

• “The central mission of the Trump administration's trade policy was twofold: To bring back jobs to this country and to make it easier for our companies to do business overseas.” (Cramer, 01:09)
• He highlights that America's fair play in trade negotiations has positioned the U.S. advantageously against European and Japanese counterparts.

Energy Commitments:

• European Union committed to purchasing $750 billion in U.S. energy products, potentially displacing Russian gas. This pivot is viewed as a significant strategic win for American energy sectors. (Cramer, 14:00)

2. Stock Market Overview

Current Market Performance:

• The market has shown resilience, with consistent weekly gains post-Liberation Day lows. Major rotations from tech to industrials, finance, and transport sectors have been nearly flawless. (Cramer, 07:28)

Earnings Season Impact:

• Strong earnings reports have been a primary driver behind the rally, overshadowing the effects of recent trade deals. However, future market moves will depend heavily on upcoming earnings and Federal Reserve decisions. (Cramer, 07:28)

Upcoming Challenges:

• Fed Meeting: Anticipated to be a focal point; President Trump’s influence may lead to pressure for interest rate cuts, regardless of economic indicators. (Cramer, 07:28)
• Labor Report: Scheduled release could sway market sentiment based on strength or weakness, influencing the Fed’s actions. (Cramer, 07:28)

3. Featured Stocks and Investment Calls

a. BlackRock (Ticker: BLK)

Caller: Robert from New York introduces BlackRock as a top investment.

Cramer's Analysis:

• Valuation: Trades at 23 times earnings, which Cramer deems reasonable given its growth prospects and low risk.
• Performance: Despite recent hits, BlackRock remains a strong buy due to its market position and consistent performance. (Cramer, 08:43 – 09:27)

Notable Quote:
“Blackrock is up in a straight line...it's a buy.” (Cramer, 09:27)

b. Kava (Ticker: KAVA)

Caller: Robert from Illinois seeks advice on Kava’s volatility.

Cramer's Advice:

• Volatility: Acknowledges significant price swings, advising patience and holding for the long term.
• Recommendation: Wait for a more pronounced dip before considering additional buys, as current dips lack depth. (Cramer, 09:56 – 10:21)

Notable Quote:
“What matters to the market right now is earnings and the Fed meeting. Until we get through this gauntlet of a week, no one on Wall Street is going to care about trade policy.” (Cramer, 10:21)

c. Deckers Brands (Ticker: DECK)

Caller: Harrison from Missouri discusses Deckers, maker of Hoka and Uggs.

Cramer's Analysis:

• Performance: Despite an 82% rise in 2024, Deckers' stock peaked and subsequently declined due to slowed Hoka growth projections. However, recent earnings surpassed expectations, reigniting bullish sentiments. (Cramer, 14:00 – 29:59)
• Brands: Hoka saw 20% revenue growth, and Uggs grew by nearly 19%, driven by strong international sales.
• Strategic Moves: Management’s acknowledgment of past missteps and focus on product lifecycle management indicate a positive turnaround strategy.

Notable Quote:
“Deckers saw its stock collapse earlier this year because everyone thought that HOKA had run out of steam. But HOKA just delivered almost 20% growth for the latest quarter. So call me a believer.” (Cramer, 29:59)

d. Tapestry (Ticker: TPR)

Caller: Matt from Harrison explores Tapestry’s blocked merger with Capri Holdings.

Cramer's Analysis:

• Merger Blockage: The FTC blocked the $8.5 billion acquisition, leading to significant stock appreciation as Tapestry refocused on core brands.
• Stock Performance: Up 69% for the year, driven by strategic buybacks and divestitures, such as selling Stuart Weitzman.
• Future Prospects: Emphasis on the Coach brand and turnaround efforts for Kate Spade suggest sustained growth, though high expectations make it a higher-risk investment.

Notable Quote:
“If you like the story, you got my blessing. Put on a small business position for the quarter because from my perspective, Tapestry's management knows exactly what they're doing and they're doing it well.” (Cramer, 38:43 – 38:36)

e. Lululemon (Ticker: LULU)

Caller: Matt seeks advice on buying more Lululemon shares to lower his cost basis.

Cramer's Response:

• Perspective: Acknowledges the stock’s significant downturn but suggests potential for recovery given investor’s long-term horizon.
• Recommendation: Encourages adding positions cautiously but advises patience due to the stock’s volatility. (Cramer, 30:09 – 30:21)

Notable Quote:
“It's down so low, I would be willing to take a flyer. Why? Because you're young, got your whole life ahead of you.” (Cramer, 30:21)

4. Lightning Round: Rapid-Fire Stock Picks

Key Mentions:

• Palantir (Ticker: PLTR): Cramer remains bullish, projecting continued upward movement despite recent declines. (Cramer, 39:10 – 39:19)
• Chubb (Insurance, Ticker: CB): Chooses Chubb over Bright House Financial for potential insurance sector gains. (Cramer, 39:44 – 40:07)
• Hecla Mining (Ticker: HL): Advises against reaching for this stock despite SEC filings indicating potential instability. Recommends Agnico Eagle and Pan American for stability in precious metals. (Cramer, 40:07 – 41:18)

Notable Quotes:

• “I think it's going to be blue collar jobs where people have steady income and that place really helps.” (Cramer, 41:18)
• “A high dividend doesn't mean safety. Sometimes it means danger.” (Cramer, 42:36)

5. Dividend Pitfalls: The Dow's Dividend Cut

Case Study: Dow Chemical (Ticker: DOW)

Overview:

• Dow cut its dividend from 70 cents per quarter to 35 cents, saving approximately $1 billion annually. (Cramer, 42:36)
• Reason: Prolonged downturn in chemical grades due to oversupply and weak global demand.

Cramer's Takeaways:

• High Yield Warning: A high dividend yield often signals underlying issues rather than safety, as evidenced by Dow’s dividend cut.
• Investment Strategy: Avoid reaching for high yields without assessing the sustainability of dividends. (Cramer, 42:36 – 47:24)

Notable Quote:
“A high dividend doesn't mean safety. Sometimes it means danger. If a stock's yield looks too high, it probably is.” (Cramer, 42:36)

6. Conclusion and Final Insights

Jim Cramer wraps up the episode by emphasizing:

• Focus on Fundamentals: Earnings, management strategies, and sustainable growth are paramount over headline trade news.
• Cautious Optimism: While strategic trade deals and strong earnings present opportunities, investors should remain vigilant about market volatility and macroeconomic factors.
• Diversified Approach: Diversifying investments and avoiding overreliance on high-yield stocks can mitigate potential risks.

Closing Remark:
“If you reach for yield or regard it as a defense, there's a good chance going to let you down. I like to say there's always a bull market somewhere, and I promise you I'd find it just for you right here on Mad Money.” (Cramer, 42:36 – 47:24)

Notable Quotes with Timestamps

• “The central mission of the Trump administration's trade policy was twofold...” (07:28)
• “Deckers saw its stock collapse earlier this year because everyone thought that HOKA had run out of steam.” (29:59)
• “A high dividend doesn't mean safety. Sometimes it means danger.” (42:36)

Note: This summary excludes advertisements, intros, and outros to focus solely on the core financial discussions and investment insights provided by Jim Cramer during the episode.