Transcript
Keith Lansford (0:00)
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Narrator (0:30)
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Jim Cramer (1:43)
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Crame America. Other people make friends. Hey, I'm just trying to make you a little money. My job is not just to teach you, but to educate, entertain too. So call me at 107 for three CBC Sweet Mitch McRamer in any given market, you need to understand the themes, what's really going on, not in the averages, but underneath. So on a day where The Dow lost 224 points s and we shed 0.8%, but the Nasdaq, where the hottest stocks are, gained.35%. Let's take a moment to figure out where the money's going and where it's coming from. Let's do winners first, as they are stark and glaring. The first, most exciting group are the tech companies that suddenly feel like they've been immunized against tariffs. Yesterday's shocking decision by the President to bless Apple after CEO Tim Cook pledged $600 billion to build up American manufacturing, well, that changed the coloration of this entire market. Suddenly, instead of Apple being a hunted beast with the president going after them for making phones in China, then going after them for making phones in India, Apple became one of the president's favorite companies. Hence the remarkable 3% gain on top of a gigantic increase just yesterday. Oh, it's a remarkable turn. Come on. President Trump was unmoved When Cook promised $500 billion over a four year time frame to build back American manufacturing. Cook wanted to make those phones in India and export them here. Trump wanted phones all made here. But then Cook added another $100 billion and that was enough to sway the CEO in chief. Come on. This is a staggering amount of. If some of it was already baked in. Remember the Chips act under Biden Joe. That was only $280 billion, less than half of what Apple's offering. And that spending, only 39 billion, went to direct subsidies to encourage semiconductor manufacturing. Meanwhile, Apple can shell at $600 billion without batting an eyelash. What a country. The implications of this blessing are far reaching. When the week started, Apple stock was continuing to drift lower, looking like it would fall through the $200 mark, down from after reported meaningful upside surprise last Thursday night. Concerns were twofold. First, where was Apple's AI strategy? Are they going to team up with one of the chat bots, Perplexity being the easiest because it's independent? Are they going to seek to be paid in some fashion other than an outright check, something that could earn them the ire of even this Justice Department in return for a steady flow of traffic? Could they work a deal with Anthropic, owned in part by Amazon, to a lesser extent Google? Yet it feels like it's an orphan and acts like one, too. Without more knowledge, Apple's being hectored endlessly as an unimportant Johnny come never. That's missing out on a major opportunity. The other, bigger issue, that was President Trump's very palpable enmity. I kept hearing that Cook and the President didn't get along because he wouldn't commit to making the iPhone in the United States. The drumbeat grew so loud that I even asked Tim in my private, private chat with him that I have. I have a private chat with him right before the Quarters reported. And you know what I said? Are you. Is it possible to you, for you to work with the President? Tim, can you work with the President? He came back and he said that he has good relations with the President. Good relations. Now, the President often says he has good relations with someone like President Xi from China, who he clearly sees as an adversary. If Trump is friends with Xi, I can only wonder what he's like with his enemies. And Apple sure seemed like an enemy. That was the setup coming into the week. But Tim Cook, if he says the relationship Is good. That is good. And that gave me the gut to tell you to stick with it. Now with the stock at $220 nicely above where it was when the company reported, I need you to think about what has happened in the last 24 hours after horrendous hammering that there now looks to be no tariff on iPhones. None. Whether it be reciprocal tariff or the 50% India tariff that was going to put the kibosh on Apple's earnings. But how about its biggest competitor, Samsung? Have you been thinking about that one? I've been noodling they own 31% of the US market. Number two to Apple according to a recent survey from Catalysts. Can this Korean company get the relative free ride of a 15% tariff, the rate negotiated by South Korea? Or could you argue it should be hit by a much larger tariff that embraces all the foreign semiconductors which are now being tariff at 100% and are embedded in the Samsung phone? Could there be a special tariff not just on semis but on all cell phones save Apple that are not made here? Could Apple go from being the most expensive to being the cheapest, the best one for the phone companies to offer so they can get new accounts? Isn't that what the stock's monstrous move from 203 to 220 in just two days is telling us? The pin action from the Apple deal with the White House reverberated through almost all of tech, making it terrific sector to own. I say almost because against the major court of traditional tech we had the minor court of a collapse in the cybersecurity cohort because of a disappointing quarter From Firewall builder Fort Net stock plummeted 22% in response to that. As is often the case, there's too much collateral damage to others because well, they're all connected by an ETF. So CrowdStrike goes down even though it's not a firewall company. It's a company that protects the cloud. Yet it was down almost 6% because of the markets practicing collective punishment. I say that's like selling hardware stocks because software is down. Oh and by the way, software, whoa. The enterprise kind of that is just getting crushed. Think about this. If it involves coding, it's horrendous because I we don't need a lot of coding. I like to look for stories that have been red hot bin okay that have suddenly cool purely because of guilt by association. This morning Morgan said he put the wood to Caterpillar downgrade the stock from holding the sale because of worries about Tariffs. Look, there are issues with cap, but we already know that. The company reported last week. We know. We know everything about it. Got the conference call. I don't want to buy Cat even though it'll get its fair share of reshoring orders. But the downgrade also temporarily stopped the legendary rally in the big three of engineering construction. Write these down. A E Comm. Jacob Solutions and Qantas Services. Now I've been waiting for an opportunity. I wish these stocks had just cooled off for a second so I can tell investing club members to buy them. There will be too much business from the more than $1 trillion pledged by foreign governments and the nation state of Apple to rebuild American manufacturing. These three are going to get the lion's share of the contracts. And I kept thinking their stocks were unlikely to make any sort of break. Now you're finally maybe getting a chance to buy them on weakness. Last and least, I look at the drug stocks and I can't believe how awful they really are. With now Eli Lilly at last joining the ugly fray with its less than impactful, less thought weight loss and the pill. The street was hoping that Lilly would be able to replace its onerous GOP one injection with but the simple pill that would produce an equal amount of weight loss. No such luck. The stock, it just got Polax laid to waste. Only Johnson Johnson seems to be above that fray. But I think that's in part because it's a medical device maker. That's the only hot area of health care right now. It is even why lowly worm Danaher caught a bit and it's why Apple is no quit now. Things like this, we should really celebrate. Okay. And we should remember I always say, you know Apple, don't fool around with it, don't trade it. I say it because this is a company that always seems to get it right in the end. It's like the damsel in distress tied to the railroad tracks as a speeding bullet of a freight train barrels down on her at the last minute, she always springs free. Of course there's a reason with Apple. It's a confident company with the best products on earth that's run by one of the greatest value creators on earth, rivaled only by Jensen Wong in video. So here's the bottom line. You need to think about the last 24 hours. You need to think about it and where this Apple stock has come from. You need to know what this is. Why I say own Apple, don't trade it. And you need to obey that mantra or just go buy A darn index fund. Because if you're not willing to trust a company as great as Apple, what is the darn point of owning any individual stocks anyway? Anthony in Pennsylvania. Anthony. Hey, Jim. Anthony. What's happening? And I watch that money every single day. We appreciate you. We love your energy. Unh. UnitedHealth. I wanted to talk about that company. Given the current healthcare policies, landscape and rising costs. You know, I have long. First of all, thank you for those kind words. I have long known this is something I learned probably in my second decade of trading or investing. You do not buy or sell something where you have no idea what is really happening. And at UnitedHealth, there isn't anyone other than the CEO and probably 52,000 lawyers who has any idea what's going on anyway. The last 24 hours for Apple will only reinforce what I say. Own it, don't trade it. And if you can't follow that advice, then you should just go buy an index fund. And maybe I just switch to ESPN or something for all I care. Oh, man. Just kidding. I love you. I love you. Right? I love you. Oh, man. Money today. Papa John's is soaring after earnings. I'm finding out what Wall street found so delicious about this quarter with the CEO. Then Pinterest reported at the Bell they had some very interesting to say Gen Z, but who doesn't? Don't miss my exclusive. And Elf Beauty is struggling to navigate tariffs overseas. I'm seeing what the company has to say following today's major decline. And don't forget road. That's what the people, the women in the office say. Road. Jim, you got it. Like road. I don't know. To me it's like Cormac and Carthy. I'm wrong. Stay with Kramer.