Transcripts For CNBC Mad Money 20240713

800743cnbc or jimcramer i love billy paul, but only the strong survive is the wrong anthem for age of covid19, but i do think thats where were headed and even after a good day like this one, and the s p climbed 1. 91 s and thing is the average is dominated by the fittest stocks and the ones with the strongest Balance Sheets and they will do so where most commerce when most commerce is on hiatus, and theyll still be there, but other companies lesser known, but still in the s p 500 need credit to make it through, not because theyre reckless and poorly managed, but because its impossible to plan for this economic catastrophe and including, of course, all of the small and midsized businesses that are not even public im worried that theyre doomed. Doomed ive said endlessly that we dont trade in nail salons and gyms although we do have Planet Fitness on the show later tent, and there are plenty companies that i supply midsized businesses and more important if we keep seeing jobless numbers and another 3 Million People out of work, this could be an extinction level for Small Businesses and the ones we love. We might be headed for a situation where the companies dominate because theyre competitors they all went under and that is a grim future. If we let it happen and if we allow the survival of the fittest to run its course it will crush us as a nation, but will it crush the stock market believe it or not thats less clear cut. In the last couple of days weve heard from four bigname individuals who put tremendous pressure on the market first we had dr. Fauci who sounded very worried about the impact of reopening the economy, putting out that we could see more big outbreaks in the fall i thought he was pretty frightening and so unequivocal that President Trump scolded him about it im not going to second guess this man, dr. Fauci in the course of this pandemic and thats his department and hes a serious practitioner my department is to help you figure out what a prolonged shutdown would happen to the economy and i think it would cause, yes, a second Great Depression and with this negativity and not as badly as fed chief Jerome Powell did when he spoke yesterday. He traded at an apocalyptic scenario, if they dont take action to save commerce. The man is dead right. While people in wall street didnt want to hear when they had to say, and i found powells testimony actually reassuring and the worst thing we could possibly have right now is the fed chief who doesnt understand the scale of the crisis. They know nothing and think we should let the economy fed for itself i thought he raised rates too aggressively in the end of 2018 and he learned his lesson. Hes been instrumental in making credit available for companies that need to survive and would have gone belly up already can you imagine . Already if it werent for this man. Millions of jobs and this guy has already saved and i dont like being in the situation and if powell said everything would be fine, now that would be a reason to sell we also had two very important money managersic mai making grim announcements and thats how it was conveyed and it rang alarm bells and called on scott wapners Halftime Report and said he didnt like the setup and both guys are seasoned and most important, honest people, but theyre playing for themselves and theyre not going to tell you every day and tell you what they do after the quartet piled up, its no wonder the average got cru crushed. And its hard tobl the market can keep climbing. Say the bears are right, what does that mean lets follow through lets follow the logic almost every business runs on credit thats what they do. Its not that theyre reckless and its how commerce works and when your business is interrupted by a natural disaster, a flood or say a storm, you have insurance, so a company doesnt even skip a beat, a fire many have carveouts for pandemic so what happened when we had this virus running rampant and the economy shuts down and the government deems your business nonessential as it did to almost every small and mediumsized business there is and youre trying not to get, vikted and youre trying to put food on the table and youre not, you cant, your workers cant take a look around and every business that you see where you live, do you know most wont make it unless the government gives us another bailout im not kidding. We have a charity fund that i contributed with, i see it coming so do you, but the companies with strong Balance Sheets oh, they make it, they profit. They win and thats why i included walmart, amazon and costco in the cramer covid19 index, and yes, i included target we wont be the Old Soviet Union which only had one chain, gum, gum. What will do with the tens of millions of people who worked into retailers beats me same with the restaurants and we got some numbers from inwhich on the le today from a very good analyst who argued that they were making as much money today as before the pandemic we heard from another analyst, wendys breakfast is a success and the rents are coming way down and theyre powerful, but other than those three and mcdonalds, burger king and dominos, and wingstop, i have a hard time imagining many other players making it. Guys, this is it this is america without a bailout, right here. Its where you will eat. Its where you buy this is it order this, it comes to your house and you can pick it up here these are bockes and you have to wait 24 hours because of that stuff and great balance sheet. They have the breakfast bacon and the rest are dice rolls where you can only operate at 50 of capacity which is what happens at a restaurant and you have to take your cut stomers temperature. It wont hurt your ability to make money in the stock market just buy these stocks. People have to shop and eat somewhere. The problem with this situation is that its a rigged survival of the fittest the government fort forces it t shut down, it should thrive without the lockdown followed by the physical distancing rules that well be stuck with until theres a vaccine. Thats why i like the Business Interruption insurance, and i think tpp is sensational the longer the pandemic goes the more help we will need to open up state governments put the businesses on the path to insolvency and even if they had a good reason for doing that we dont want to look back on the period when most small and mediumsized went under because the government told them to go under. The vast majority of the businesses wont be able to get credit and it would be crazy to let them wither and die. So many hopes and dreams i think you should just buy the big chains that can survive the lockdown and a slow reopening of the economy. These all thrive either way. I think thats terrible for the country. Its like an economic coup by big business at the expense of everyone else, but it doesnt have to be terrible for your portfolio. Tyler in missouri. Tyler . I want to get your financial ticker no. We cant trade down and we have credit problems being a massed by the Federal Reserve were not going to gamble. Thats gambling. I dont like to gamble lets go to sean a big booyah from florida. Nice. I like your quarterback. Whats going on . Thank you for your work over the years and for navigating through this crisis, with businesses slowly reopen with restaurants and cleanliness will be a major part of operation for the foreseeable future with uniforms and ppe and restaurant supplies, and restroom supplies and chemical services, what do you think of cintas . It was a fabulous quarter theyre indispensable and i was going to do a piece on cintas, but we got so many guests, you have a winner in cintas going much higher. Dave. Jim, my question might be one around simple mass after the companies have taken actions with the luther shares a number of companies have done that in this crisis, but what precipitated the question came from the interview you did with southwests ceo. While not particularly interested in Airline Stocks i thought i might add it to my watch list as best of breed. No thats the best of breed in a bad neighborhood. This market is about thes have of which there are 11 trillion worth and the have notes which there are 16 trillion even though theyre visible and household names. All right. Its the survival of fittest economy if something isnt done. What do you do here it is this is your business interrupted insurance. On mad money tonight what will your gym look like in a covid19 world . Im talking to the ceo of Planet Fitness as they open what the heck was the selloff that we went through and is it sounds all clear well check the charts to find out. Some of the cloud stocks put their recent pullbacks be buying opportunities. Im eyeing altrics, one of my old fifes. So stay with cramer. Dont miss a second of mad money, follow jimcramer on twitter. Have a question . Tweet cramer madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. upbeat music we did it crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. As you gradually reopen the economy what happens to the businesses that are widely seen as say, not as safe as other enterprises during the pandemic. Think about gyms and the dominant gym chain, Planet Fitness. In the before time Planet Fitness was a fabulous growth story and it was taking names all over the country and then it went into lockdown and they had to shut down most of the Fitness Centers and furlough the bulk of employees. They missed a quarter and management couldnt give guidance because of the virus and of course, the government. The question is how much of that is already baked in . I think the market overreacted when the Stock Plunged into the 80s and 20s in march and that rebounded into the mid60s and lets wait to hear over the past few days and wall street is feeling less sanguine about the ability to reopen. Is the stock enticing at these levels or is it too soon chris rondo, the ceo of Planet Fitness and what that means for the Fitness Industry welcome back to mad money. Thanks for having me. Appreciate it. If theres anyone that can handle whats going on as a ceo right now i know its you. I know you can youre not stoppable, and i know this is a tough time how is the reopening going i know youve got a couple of them that are already open yeah. Yeah we started, at the call we had about five open in georgia currently we have about 50 open and im encouraged by what im seeing, jim. Slight cancellation bump in the very first day, after that, normal as normal would be and acquisition new joins and on par for last year. So im really encouraged mostly because theres no marketing out there either this is just a soft opening and the fact that were doing this many joins, im very pleased so far. One of my theories of the show, and i know you watch, there are some real winners when the smoke clears, so to speak, and when i read your work, golds gym, no 24hour fitness and the other guys may not be able to get through this, but youve got a great Franchise Group and lots of different ways to make money. You may be the last man standing in the gym business. Yeah. I truly believe that this will create a huge competitive advantage for us, bigger than what we had before and with the strong Franchise System and the average franchisee has 15 to 20 stores and the four walls and the multistore operators so theyre diversified and they might have 20 clubs, and some are longer so theyre diversified. I think youre right we will come out of this and the competitive mode will be wider and we will be where we would have been five years and 12 months will be a much better spot. Ive come to that same conclusion i know that you mentioned not every franchise is as well capitalized as the others and what will you do to help the ones that are faithful and had no forbearance from their landlords and really needed a chance to survive . Yeah, you know, luckily, weve been very good with landlords. Theyve been accommodating because our growth history and almost zero closures in the history of 28 years and they want us to be there on the other end of this. So very accommodating. So we dont have franchisees now waving the white flag, and were servicing our members that have been waiting to work out okay, so how do you clean a gym or equipment and say i want to do a circuit. To me, a circuit is dangerous. I dont want to go to every single machine and do i stay at one machine at your place . For decades weve had clean stations throughout the entire club with the sanitization solution and paper towels readily available for staff and members to use they wipe down before and wipe down after and now were making sure that we are dialling that in for preopening and training our staff and getting our etiquette down and big flags at the sanitization stations so you can see them from 30 feet away where the closest one is what public place do they have solution and paper towels for the members to use, and theres almost no other business that has that and we do the gym industry gets a bad rap, and were in a good spot i dont think theres much to worry about as long as you clean before and after by the solution thats approved by the government to kill the covid virus. Lets be philosophical for a second how is it people who hurts people that are out of shape, and hurts people who dont have the right body and how do we make liquor an essential business, but we close gyms . I know. I know i think we know that exercise builds immune system and me emotionally from the stress people are going through, its really, i think its a necessity and there are stipulations and maybe the people make sense for sure during a situation like this, its a good thing for people to work out, and i really believe that coming out of this, jim, that people will have a renewed awareness for the importance of health and fitness and when you look at the fatalities that people will take care of their health and this could create a Wellness Boom in the years to come. 4. 5 billion on your at home and this peloton its worth 12 billion and you are worth onethird of that and maybe you can explain to me the disparity . I think people are skeptical of the gym business. Once they see us open, i am a strong believer. I think we saw in puerto rico after we closed after Hurricane Maria for three to six months and they opened and people were working out like it never happened and people people want to get back out into society and live normal again and i look forward to getting open and people will be pleasantly surprised when they see how the clubs react close to opening i think theyll be very happy. So do you think people who are older and atrade of the disease and also millennials, both attractive right now, right . Millen yaps right nnials rige zs and the boomers might be more angst to come out and back to working out, but long term people will snap back and want to get on with their life and stay healthy and work out at home and at the club and i dont think you ever get the true gym experience as you will in the real bricks and mortar that is chris rondeau, do not bet against this man mad money is back after the break. Feed a healthy lifestyle, with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. And try pure protein shakes, with 24 vitamins and minerals. What was that we went through . After cruises daily hire, morgans hit head first rolled over more yesterday one leg this morning before the averages turned around was this a pullback . Kind of tends to run its course or something more ominous. For the better part of two months, wall streets had a surprisingly upbeat attitude given the employment, right . Had the highest Unemployment Rate since the Great Depression. The bulls argue thats priceded in the markets already crasheded thats happened in march this time around, the government acted swiftly to limit damage. That was the dominant narrative until a couple of weeks ago. So has this week changed anything its important to take the markets temperature which is why were doing a special thursday off the charts with Mark Sebastian as well as being my colleague at realmind. Com where i blog, hes a resident volatility expert sebastians got a terrific read on the Cboe Volatility Index the vix for short. The fear gauge a great proxy for the level of pan nick the market. Its allowed him to make some phenomenal calls normally, the vix to the mange benchmarks trade in opposite directions so of course the s p 500 goes down. People getting scared. The s p goes up, terror retreats and vix goes back down got that sometimes, these normal relationships break down and when that happens, itoften a signal the markets poised to change its trajectory. You can see where this is. Daily chart. Before f this week, sebastian notes we were seeing the relatively consistent pattern as the s p rebounded from the bottom in march. Or what happened of course made a series of higher highs and higher lows. The vix steadily declined from a series of lower highs and lower lows exactly whats supposed to happen you expegt to see it in a market thats coming out of a crisis. Once again, like that and you go like that. Thats typical behavior, but and this is a big but, this was a very short crisis. Really lasted from late february through late march and thats unusual. Typical, theres a lot more pain before we get this kind of pattern. One other major difference the vix spiked in march. Sbes yan points out usually you get a big pop then the vix subsides then another pop, echo, stocks get slammed again and thats what he expected this time around. A second spike in the second one thats lower the s p 500 giving you one last leg down this is an example of that happening. You may remember that horrible time right here when the yiesup bowl other things happened, too but this time, the vix came right back down and stayed down as the market roared theres been no echo this time around at least not yet so we got to ask what if that started when the market rolled over two days ago . Check out the action the s p 500 and vix over the past couple of weeks. When the market roll ed over ths week, the vix blew out look at this in matter of 36 hours. Look at this the volatility index went from the mid 20s to the high 30s. It peaked at 39 this morning from pulling back to the low 30s. For weeks, sebastians been waiting for the other shoe to drop and he thinks this is it. The fact that it e rebound ued today is not necessarily positive it just means were seeing enormous volatility and to mark, enormous volatility is not a he will thi market. All right. Thats what youve got to remember this is not healthy. Yet the bad news is that it suggested todays rebound is just a temporary reprieve from what could be a bigger sell off. It makes sense given the scenario but once the last leg lower runs out, well, then he thinks we could get a real viable bottom i wouldnt be surprised if hes right. But the before it go to mark in massachusetts. Mark god bless cray mer kai. My first call. I love you, man whats going on . Nothing much. Have a two part question for you. You said last night that these typical sell offs go r for b about three days and look to start buy ng the afternoon thank you u that was a good call. I wanted to ask you how come its usually a three daytime line and really my question is Philadelphia Semiconductor stocks index bounced off a double top at 1800 most Semiconductors Companies reported bad earnings and just now tonight yet its up of course that was a good quarter and they did really good they did a very good forecast and taiwan semi committed to building a plant in arizona so this was exactly what we wanted to see and the pattern that we caught is just a pattern thats been engrained with me for years and years and years. Lets go to steve in florida, please, steve. Top of the day to you, jim. The man with the plan. Xwrou you bet you calling about ge that ive purchased many times over the years and ive been getting burned each time i havent bought since larry kulpa became the new ceo i know youre fan of his as i am after miss iing First Quarter estimates, hes had to make job cuts is it looking good for the economy . No, no. Ge is at an all time low, i would appreciate some advice as to whether you would consider it a buy or wait and sell i think you have to wait. Ill tell you why because hes basically telling you look, its not going to be this year and if its not, i got a lot of stocks that it is going to be b this year so were going to take a pass on that one its just doesnt have the, its got the aerospace and you know whats going on there. To max in california max. Hello, mr. Cramer booyah. Booyah to you, my friend whats going on . Watch your show for all 15 years. The best thank you but u sad to see people say negative stuff on twitter with anonymous napmes. Forget them. I got a question for you booking Holding Share price fell 33 year to date airlines, cruise lines, hotels have been hit hard while booking core business is tight, i believe it is more an Online Technology company. Analysts are mixed on this the Company Looks cheap trading at 17 types earnings my question is booking stock still a buy . See, max, i disagree its cheap. Youve got all these hot shot Hedge Fund Guys who say somethings overvalued the stock has crashed but i have no catalyst. And if its going to be at 70 times earnings, i need a catalyst and i dont have one. So im going to take a pass on that and travel leisure has not really been, its been an area thats in a bear market. And its staying there the chart suggested today was only temporary but after this last leg lower, maybe its time to buy theres much more mad money ahead including my exclusive with altrex. Then looking for a financial player that works in an uncertain market ive got one for you ill reveal the name when i sit down with the ceo. Tonights edition of the lightning round, so stay with cramer [horns honking] birthdays arent cancelled. Hope isnt quarantined. First words arent delayed. Caring isnt postponed. Courage isnt on hold. And love hasnt stopped. U. S. Bank thanks you for keeping all of our spirits strong. Weve donated millions to those in need and are always here for our customers and employees. How worried should we be about some of these Software Companies that some say are overbought and too expensive take alterx. Before the pandemic, it was one of the hottest stocks on the planet and then the market crashed and it was cut in half since the bottom, its come right back and last month, the guidance for the Current Quarter left a little to be desired in the old days, the question was how fast can it grow now theyre talk iing about slowing activity cycle, sales cycles theyre lengthening. Customers pausing. Spending they used the word churn all thats understandable. Stocks are falling were in a covid induce d recession, but you dont want to hear these things from a high flying stock still the company has a great stock thats loved by all the smart young people i know who are sick of traditional dumb spread sheets and the stock is down 35 bucks from its highs is that enough punishment . Lets check in with dean stoker, the ceo, to get a better sense of thousand quarters doing. Welcome back to mad money. Hey, jim. Thanks for having me so, sir, a lot of people felt you got those kinds of comments about whether your company is really slowing theres something youve got customers in the Airline Business and the oil business and those are troubled industries how do you rebut the presumption that if your clients are slowing, you have to slow . Actually, jim, i think we had a great quarter. 33 growth in revenue hitting 109 million many revenue 53 growth in bookings we passed the 400 million arr mark the last time we shared that number, we were at 200 million just seven quarters ago. We now have 37 of the global 2000 these are the firms that are actually try iing to prosecute y science and analytics to get to success in Digital Transformation yes, in q1, there was a hard stop in the second half of march. And looking back at the quarter, we had some amazing customers that you would think wouldnt buy in a situation like this we sold Carnival Cruise lines when they didnt have anyone on ships in the latter part of march. We sold to chevron usa when oil hit an all time low and to seizers entertainment when there wasnt a caesars open the good news is ha the impacted industries clearly see a need to recover with a optics of data science and analytics and its the perfect platform to help them succeed sfl couldnt agree more. I think you got hit loick everybody. The week of march and since then, the fact you put these clients in there chevron, you want that account more than any other in oil and gas. You said some great stuff. Now im quoting from a Jpmorgan Technology meeting communication conference may 12th. Virtual of course. You said if you take a look at covid from start to finish to recovering, its a data and analytics challenge. Explain that to people well, so for the first time in my career, ive seen politicsepolitic politicians, mayors, governors, sicientists, data workers, medical prak tigs ners all saying the same thing. What we need are more data, more analytics, better models we need to automate this stuff because we got outdated every hour of every day if were going to contain this thing. If qulou look at the covid crisis, it really is instrumental in sharing whats happening in intersurprisenterp. From the start of the pandemic using alteryx to do things like gee gnome sequencing using spashl analytics, where it would go and how quickly and to try and manage the spread. All the way to helping hospitals predict peak periods for icu beds, for ventilators, for mas b ks, hoping supply chain partners who are making that ppe really understand how to modernize their supply chain since most of the chains have been decimated all the way to whats happening post things like managing the trillions of dollars that are going from Central Banks around the world to prop up financial systems. To helping the 33 Million People who have been displaced from their jobs i saw a report today that the u. N. Says theres probably going to be up to 300 Million Worldwide in worker to help those people as well you should talk about your plan to help people learn how u to use your kind of program because i think heres the future obviously the other is the past. Youre willing to upsell it. Youre willing to tell people how to do it were willing to tell them how to do it for free. We launched a program called adapt last thursday advancing data and analytics potential together the whole purpose was one of our employees said how come were not helping the people who have been displaced and we put together a plan immediately that would allow any unemployed or furloughed worker in any industry anywhere on planet earth to come to alteryx, get a free copy of our design platform, put it into our learning system, its an Amazing Community of hundred of thousands of people around the world who share and collaborate. We get them certifiy edcertifie. Even give them scholarships. If they want to get a nan o degree in as little as 30 days with one of the leaders in online learning. These folks can revitalize themselves make sure they have economic strength for the next go round give themselves career optionalty the one thing Everyone Needs in the 21st century is a data science and analytics skill. Were so excited that the 1500 people are willing to dive in and help not just our customers get back to health but really drive extra value. If youre listening, where should you go . Is there a separate website . No, go to alteryx. Com theres a bunch of links on the home page. Its part of the alteryx for good t a pillar we put together a few years ago. We currently have 400 nonprofit organizations around the world in 38 countries. Were helping organizations to bring dignity back to the homeless and urban cities. Were helping them rid themselves of malaria in zambia. Were helping protect endangered species doing work around Climate Change and this, this cause now helps 300 Million People who choose to join. Were tracking about 1,000 registrants a day. And we cant wait to hire some of these people and get them into our workforce all right thats terrific. I knew you would be doing stuff like that. I want to thank dean this is a company just ask any young person who has to do data and theyll tell you, you must use this company back here after the break. I love these fries. You know, the chef here trained in france. Mmm, it shows so good. Oh hey, did you say you needed help with investing . Because i know someone whos really great. And you trust him . Totally. Yeah. We went to school together. Ill check him out on investor. Gov. So, whatll it be . Ill just have the burger. Before you invest, get the full report. Check out an investment professionals background for free on investor. Gov. Before you invest, investor. Gov. Right now, there are over a million Walmart Associates doing their best to keep our nation going. Because despite everything thats changed, one thing hasnt and thats our devotion to you and our communities. Our priority will always be to keep you and our associates safe, while making sure you can still get the essentials you need. [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. It is time and then lightning round is over are you ready . Lightning round. s go with orin. Booyah, jim. Okay. Hey, listen i dont want to see our children get this thing lets do the right thing and follow rules so we can keep the upper hand on this virus i get a kick off you making it look like your Network Connection is frozen shoutout to my buddy, al, whos been installing Network Systems like crazy because emps needin upgrades he says he cant acquire enough of them to install what do you think about u bik wiity . We dont fool around. If you want individual b, were going to go with zoom. Were not going to outthink this one. Thats the way it works. Not on this show thank you though austin in ohio booyah yo. Shake it what do you think the well, i mean its coming back golfs coming back you know what, lets talk about my wife. Shes a golfer. Level to get long this stock i think theres going to be golf actually they figured outweighs to do golf, so lets say yes to a stock that we like very much before the pandemic. How about john in maine. John caller hey, jim. Hey, buddy. Caller im calling about halo time therapeutics you know what, i was saying the other night i worry i like halo, weve had halo on ive got to tell you i sat down with the doctor the other day from Bristol Myers i sat down with theyre both better i dont want to take on too much risk right here. Lets go to steven in new york steven caller booyah, jimmy chill, long time first time thanks for all you do for us home gamers. Im your guy. Whats going on . Caller im 29 years old, a neighbor of yours in great neck, new york i called about something in february its on a monster run from 100 you said wait before pulling the trigger. Do you think now is time to start a in cardlytics this is what weve final li been waiting for you dont say no, wait for a lower price. Interesting call thank you for remembering. Lets go to allen in texas, allen. Caller booyah from the great state of texas you bet whats going on down there caller Mercado Libre my god, at 777. We have mercado, i gave you a threefer. Brian in maryland. Brian. Caller how are you, jim . Caller im good, how are you . Caller im trying to make some money i got a question a company ive been looking at, they do a lot of work in the southeast, and when we talk about coming out of the recession, one word ive been hearing a lot is infrastructure. C. E. O. s name is ward knight hes been with the company ten years. I love ward, i love ward. I like the company, but you see right now, were going into a recession, we aint coming out of it yet. We dont have an infrastructure built. We dont have the 3 trillion i want we dont have anything well, anyway, and that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] announcer the lightning round is sponsored by t. D. Ameritrade ets . Ets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. And its mission is to give you truly transformative sleep. So, no more tossing and turning. Or trouble falling asleep. Because only tempurpedic uses proprietary tempur® material. That continuously adapts and responds to your body, to relieve pressure. So you get deep, uninterrupted sleep. All night. Every night. The tempurpedic summer of sleep starts now, with all tempurpedic mattresses on sale, and savings up to 500 on adjustable sets. Were always on the lookout for covid19 stocks. In other words, stocks that actually do well even in the pandemic and one of the best ones is s p global see, this is mainly a Ratings Agency for the bond market they have a Market Intelligence division that gives market leaders much needed you cant live without data analytic tools. Right now its up 10 for the year including monster 61 gain from the march lows when we crashed. This is a fantastic time to be a Ratings Agency youve heard all the Companies Going to fixed income markets to raise money. All the Bond Offerings need to be rated bunch anyone will touch them when the Company Reported ratings revenue was up 20 , which is why unlike so many others the stock is back to where it was trading at the february peak. We have to ask this. Can it keep climbing you know i like this stock very much lets take a closer look with doug peterson, president and c. E. O. Of s p global to learn more about the prospects mr. Peterson, welcome back to mad money. Jim, thanks for having me today. Its great to be with you and great to see you again same. Doug, this was an exceptional quarter. Theres been so much issuance. If you can, please explain how the corporate debt market boom really does help s p global. Well, remember that this market right now is all about liquidity. Despite rates being low, spreads have gone up, but the absolute price that corporations are paying at the high quality end of the credit spectrum is quite low. And you see Companies Going out to look for liquidity. And you think about it, its not just liquidity that were providing with the ratings that go out its also research, its the ratings themselves we see very high demand for the research that were providing that is driving people to our websites there is a moment in your Earnings Call frankly that is just so stark about what you do. Talking about delta and ford, and the integral nature that you are to whether they can raise money, if you can explain, those are two companies everybody knows, doug. It will be interesting to see what you did and how they interact with the fed. The fed provided liquidity to the markets. March 22, all companies with Investment Grade would continue to be considered all had been downgraded to the bb range there was massive liquidity for Companies Like that. We did the ratings they were able to get the liquidity they needed in the market and as you see, the markets themselves right now are really looking for this highquality credit out there, but theyre also looking for liquidity the companies themselves theyre not using this for investing, theyre not using it necessarily for stock buybacks theyre using this to have very strong Balance Sheets. All right so how do you determine because you got great analysis, i know a bunch analysis. Whats the rating carnival or Royal Caribbean or norwegian cruise lines, areas that are really difficult to judge . Well, what we look at and our credit analysts look at is what are the many factors, its qualitative, quantitative, and the ability and willingness of somebody to pay back their debt. And we look at these factors at the very beginning of the crisis, our credit researchers did some analysis looking at what were the sectors that would be most impacted by this downturn there were going to be factors looking at travel, Different Industries so the markets now are determining what will be the type of liquidity that they want to provide and were providing the research about the credit worthiness that goes along with that got it. Thats a great way to understand what you guys do now, theres another market which had a trillion dollars worth of issuance i dont think people know that you are the company for. You launched last year, domestic Credit Rating business in china. And its your own company, its wholly owned how is that doing . We were the First Company that was allowed to have a license for the Financial Institution in china its been over a year. Its going really well we issued five ratings in the First Quarter. They range now, the ratings weve done range from aaa to triple b theyre foreign institutions, domestic institutions, Financial Institutions, regional banks as well corporate weve been able to rate the entire spectrum of companies in china. We have a really strong team on the ground its all about the people. And even during this recent crisis where people 8 are working from home, weve had hundreds and hundreds of calls with investors to explain what were doing and also do those ratings in the First Quarter no restrictions by the government, just trying to get it as right as possible . Theyre trying to get as right as possible. As you can see, the chinese reformers in the financial markets, theyre giving licenses to other Financial Institutions to own 51 and above for their own institutions as well so we think that were on the very beginning of this trend where the chinese financial regulator is going to be opening up their markets and looking for reform and they want the foreign players to be there to bring the transparency, the highquality analytics, the things we bring to the market. Boy, thats great one last thing most companies didnt give guidance theyre withdrawing guidance you gave three different scenarios. How do you really feel i mean, which one do you think is the most likely, which one do you think is the least likely . We gave guidance this time we thought given that we have fantastic analysts in our company and research, economists, oil experts, our credit analysts, we wanted to say, ell, what are they saying about the markets themselves and lets apply it to ourselves. Were a data Analytic Company and take information produced by our own people and apply it to our company. So we looked at our guidance we looked at a shorter term, downturn, downturn to go to the end of the third quarter, one till the end of the fourth quarter. Our guidance that we came out with is around the end of the third quarter, but we provided that Sensitivity Analysis because we think its important that our investors see how were thinking about this. We got great feedback from our investors for providing that guidance and that color, and also showing a lot of detail about the factors that we use to look at that you know, weve got a strong balance sheet. Weve got ample liquidity. But were not immune for risk. We felt its important that we showed how that was going to play out i thought it was the most well done conference call. I found myself thinking ill credit you guys. Youve done more work than anybody. You have a great set of analysts doug peterson, president and c. E. O. Of s p global great to see you, sir. Stay safe. Great to see you. Guys, when you think about a company that is fen tech, think about these guys stick with cramer. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always done. Its what well always do. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. Tonight right after this, markets in turmoil, Fashion Designer Joseph Abboud on the business of america. Want to see what your Office Might Look Like when you return . One expert shares his blueprints growing concerns over possible shortage here in the u. S. Of the antiviral drug remdesivir. At 7 00 p. M. With scott wapner the Semiconductor Equipment number, that is going to move the semis. I want to thank bob lang last night gutsy call when the market was down 500. He said buy the semis. Well, guess what that was one of the great contrary calls, and it worked. So sometimes it doesnt pay to be totally negative like so many people are unfortunately stay open minded, but remember, recession. I like to say theres always a bull market somewhere and i promise to find it for you here on mad money. Im jim cramer and i will see you tomorrow. Good evening, im scott wapner on day 137 of the Coronavirus Crisis the nations former vaccine chief with an ominous warning for the country. 2020 could be the darkest winter in modern history. Announcer the doctor charged with finding a vaccine for the virus demoted by the white house speaks out our window of opportunity is closing. Announcer tonight, his plan. And what the cdc is proposing. Plus, new fears this country is in for a shortage of the drug many think will stop the