Transcripts For CNBC Mad 20240703

What a hideous session, lease for the bulls. What does it mean . It is gigantic. Bigger than the stock market when you lose interest, this is what you do. I like to be clinical. Why dont we do that. Samples of ample motivation for their actions. They have gone exceedingly well for Interest Rates. Much higher. Can earn 4. 25 riskfree. That is much better then it was a year ago. The yields are going higher for three reasons. First, the fed has not been able to fully get inflation under control and they have not done much for the economy. Meaning they have every incentive to keep it. Where are the layoffs . Where is the housing . Not yet says mr. Powell. Second, over the last to years, the federal government authorized colossal massive spending that needs to be financed with massive bond issues. And they dont care what kind of price they get for bonds. They have to pay the bills. There, the Federal Reserve itself owns 8 trillion in total assets down from 9 trillion last spring. But 4 trillion will for the pandemic. Government and the fed motivated sellers. The fed cellular bonds is another way to crack down on inflation. These reasons have crushed anyone who gets in the way of the Market Making potential buyers skittish every time they buy, they get it handed to them. So the borrowers and treasures are on strike. The treasury yields have gone up so much last 48 hours. Yields go higher. What is in his this have to do with the stock market you are probably asking . Why own stocks when you can make 4. 55 riskfree from the treasury. It is a dividend stock guarantee not to lose money over the next decade. That is the real strong competition to any stock, isnt it . Second, costs are soaring for those who use credit cards or want to buy a car. Chromatic. Third quarter profits probably headed lower because Interest Rates are part of the cost of doing business. To the search for the mass majority of companies and their clients who have the earning estimates that will probably come down. Of course, and this is forgotten, if the fed can get inflation under control, that would bring buyers into the treasury sending yields down and causing money to flow back into the stock market. And if you think stocks have gotten oversold versus bonds, you might want to be a buyer and stocks have come down pretty hard lately. But even if the fed cant beat inflation anytime soon, there are reasons to own stocks. More than three. First, with plenty of can do well in the environment. You hear from two of them later in the show come out running inflation and high treasury yields. There been many times in history were rates went relentless the higher and you can still make money and stocks. Most of these occurred in the 80s and 90s but they did occur. I remember that i was running money myself. Buying stocks when everybody else was running away and peered like now. Getting anything seemed crazy when i bought them but it was the right call. Second, many stocks have come far down, more then they should relative to treasury yields. That is subjective. But if a company can still make money on a higher rate environment, maybe you need to buy the stock right here. Capitulation breeds buying opportunities. It always has and always will. Not a clichi. To be 4. 5 per have doesnt cut it for you. Maybe you want 4. 7. Maybe there stocks worth owning even if you could get 5 from the 10 year. Today, i saw that dennys, the restaurant chain, commemorated a booth where nvidias jensen hang out when he cocreated a company now or the trillion dollars. I dont want to find more 10 years. I want to find more invidious. I dont want to run in place. I want to make more money than offered. As a possible . Of course it is. Maybe we just need to find the next booth. Then what happens if the fed gets under control and gets inflation under control . What happens . You can argue short rates would be too high. It may not mean that the twenty year or the tenure will go down that much in yield but the short rates would as there would be no reason for the fed to give them high. More important, go back to the dennys. As long as inflation is raging and you find the next nvidia, you might not want to own it. Something like invidious stock trades on future earnings many years on the road and it erodes the value of the future dollars but you definitely want it if inflation is under control. It is hard to keep your eye on the prize. As a president joins the picket line first time in history, he is not trying to negotiate a deal between the uaw and the big three but trying to beat the big three asking people to pay a lot more while they also need to spend fortunes to pivot to electric vehicles. They have the ftc on the cutting for the m signature of the ftc has hated amazon for years. And there is an article about how amazon has monopolistic ways. She did it in law school. When she was appointed by President Biden, she would bring the suit. She is against any company she regardless too big even though that is not really a legal standard. And how come they decide to give consumers the best default Search Engine with google . Can imagine . Apple cared enough to give you the best. What will the government give you . We have a government less interested in companies doing well than any other time i can recall my career. No matter we are playing less for earnings. I want to make something clear. There is always the place for Interest Rates stopped going up because bond buyers are found. Inflation does get destroyed in the end. Stocks eventually reflect more than the worst after a capitulation. And that is the only shirt he. We dont know if that is happening now or at the next level at 4. 75 or the tenure or 5 for the 20. Or five for the tenure. Five and a quarter come seven have. I have five and a six. Okay. We dont know. However, at some point, it will be reached. We cannot just ignore that which means you need to buy some stocks and not sell. Just dont do it all at once. Do it on a scale. Some here and some lower. If treasury yields go to those levels, you want enough cash left over to get more stock. We are oversold enough now to justify and not just insist that something be bought. What could be more painful . That is what i like. I dont like the. You buy stocks when your trying to get rich and you rental treasury to stay rich. The midst of both is fine. If you go all bonds now, i think are liable to miss something really good and stocks. Even if that seems downright impossible it always seems that way. It never is. Good day doctor kramer. Im from central illinois. Good to have you on the show. I had a small position at ell stock. It pulled back significantly since midseptember perhaps due to many large sales. Do you feel that ell stock is still a buy . I happen to think the world of it. I think it is doing well. I will say this. It is up 97 that is not what you buy in the market is getting killed. A stock up 97 is a candidate for a sale and not buy, even if it is terrific. Lets go to don in georgia. Long time, first time. I have invested in the company for so long that i honestly cant remember if it was the result of your influence are not. It has been a big winter for me. I know we avoid and or Ditch Companies with accounting problems. But what do you think about some of the current hullabaloo around exxon . Ever since i recommended the stock, which by the way when the stock was about 17, there has been hullabaloo. And that has not changed. As a matter fact, that is probably the only constant other than the fact that the stock goes higher. And ann in indiana. We are having our first rain and six weeks out here. I will send you some. We have plenty. What is happening . After reading and im a grateful club member by the way. There was an article last week in the wall street journal about estie lauder. And im wondering, with the chinese regulations on cosmetic imports, do you feel that is already baked into the stock . Or are things worse then i thought . I was pretty candid this morning at the 1020 and again at the twoish we do after 2 00, that you cant only get. Estie lauder will have a horrible quarter. I cant buy it ahead of a horrible quarter. When that happens, then i can be interested. But it is probably going to be horrible. And that is the shame but the truth. s we are holding back buy. Lets go to ken in oregon. Are you in the house . Im ready for you. What is going on . My quest in is about after the last interview. It went down and stayed down. Is it down for the count . Buy, sell or hold . They are not doing as well as people thought. Therefore, it is still probably going to go lower but there is a fundamental value to a Bowling Alley chain. I just cant figure out where that is. But a lot of those are still going lower because they are guilt by association. Treasuries are not that good for doing well but they are good for keeping well. Stocks are what you buy when you are trying to get rich. You buy treasuries to stay rich. A fall from july high. Ane company kicking off its current conference to lay out the future of data streaming, im learning more about what is on the horizon. Close years know we have been following this neverending rally in the price of oil and investors are searching. Im going to my expert in the field for more. And marching forward. What synergies exist to create a new climate powerhouse in a carrier that will not be stopped by the darn 10 year . Im getting the details with the ceo so stay with kramer. Dont miss a second of mad money. Follow. Have a question . Sweet jim or send him an email to matt money at cnbc. Com or give us a call at 800743cnbc. Miss something . Go to madmoney. Cnbc. Com. Fisher Investments in this market, youll find Fisher Investments is different than other money managers. other money manager different how . Arent we all just looking for the hottest stocks . Fisher Investments nope. We use diversified strategies to position our clients portfolios for their longterm goals. other money manager but you still sell investments that generate high commissions for you, right . Fisher Investments no, we dont sell commission products. Were a fiduciary, obligated to act in our clients best interest. other money manager so when do you make more money, only when your clients make more money . Fisher Investments yep. We do better when our clients do better. At Fisher Investments, were clearly different. Welcome to cnbc crypto world. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. After spending the winter with growing spending higher, the tech world has been clobbered the last couple of months. Often it is on the rise. If you are wondering how good they are, maybe they have come to a certain level. The next infrastructure play that we spoke to in june, stock was at 34. In early august, nice traction. Since then, down more than 20 . You are getting the quarter for free because the backdrop turned against this kind of tech. This week, a big event where they are launching a new product and pitching the data stream platform. We have to find out more about this. Could this be enough that people understand there could be great value longerterm . Lets check in with the cofounder and chair of the company that we completely endorsed on the show from the beginning. Welcome back to mad money. Jim, thank you for having me. My father worked at campbells which was a retailer. They closed the store once a month in order to take inventory of how many gabardine pants there were. Tell me now what you are doing if you are selling pants at walmart. That is exactly the change we are seeing across the economy. A lot of these businesses used to be in the big batch systems where you collect the data at the end of the week. You analyze it and you make decisions and at the end of the month, you reorder staff or change prices. Now all that has to be realtime. You go on the app and you want to see what is in the store right now. You want to be able to buy it or pick it up and have it backed up and ready for you. To enable that, you need a realtime amount of data across the different systems all the time. That is the problem. Tell me, when you were on last, we didnt have this product, this platform. I just want to ask plaintive people that even since you are on last, you have something much more exciting and informative for a major retailer. Manufacturer or Insurance Company or bank. Yes. So the data streaming has been a big thing for a while. What confluence at it is a technology called flick. It is an open Source Technology that allows you to build realtime applications and process data continuously. And so now you have not just the stream, but the processing of the streams. So building the realtime Inventory Management just got that much easier. It is list code for the customers to write an easier ability to scale it out. When i hear list code, i think that if i worked at Dicks Sporting Goods and i was thinking, we have too many under armour mesh tshirts, i could find out. Maybe i could declare a sale at stores that have too much because i asked the data and the data has spoken. Yes. That is the idea. You look across different companies. They are trying to harness the data and apply it to the next generation ai models and use it to drive better pricing a better experience for customers. All of that is part of the actual operation of the company. This is something that happens all the time in realtime. But a lot of the Data Technology has been something that is all about running at the end of the night or the end of the month. As you are describing. If i dont have this, how do i compete in this new world . How can i keep up with walmart who is doing so many different inquiries . Just talk about what happens in three hours at a walmart. The reality is that there has been a transition across virtually every industry. The largest banks in the largest retailers and Insurance Companies and car companies. All of them are adopting this realtime technology. The reality is increasingly, when you run into some experience, whether it is online or in person, it is out of sync or disjointed or just has the wrong data or isnt relevant, it feels not right. The expectations have been great as a result. It is not just a way of innovating but kind of part of the base of everything. We were out in salesforce for the dream force conference. I have to tell you that i heard something very similar with different platforms. This might be my lack of knowledge of the industry but how do you differentiate among competitors . Or are you alive with these companies . We are actually quite complementary with the large set of other vendors are data systems. We are about the realtime flow of data. Most of the other applications are kind of a storage where data goes to sit. We are kind of like the Central Nervous system that plugs all of these together. It solves a problem on both sides. Applications want to be able to connect into the rest of the company and provide value. Downstream, you need to be able to get into all the data and get value out of it. So that is really valuable. Im asking the different guests. We have lived in a world where Interest Rates have gone four and a quarter or 4. 5 and maybe going too for the 20 year. Is there any reason why your customers would hold back buying confluent if rates went too in a court or for the 10 year . Does it make any sense to say, im not buying the confluent package . One of the things we have seen over the course of the last year, with a bit of a roller coaster ride on infrastructure and kind of a stop and start in spending, has been that it has been very durable. Incredibly strong nrr and great retention in the customer base. Everything i think is getting scrutiny these days. It has held up well. I think the reason is a lot of these cases in realtime are the missioncritical stuff that runs the business. This is the stuff that kind of has to get done one way or the other. I think it has helped drive this. It is perfect. Im tired of people saying, why would i want to own stock like confluent when six months from now come they might want to own it but you have just won a huge amount of business and now paying double. I dont want that. I want to pay the good price. That is what you are offering now. I want to thank the cofounder and ceo of confluent. There is so much on the website. If you dont understand what we said, there are so many cases. Thank you for being on the show. Thank you, jim. We are back after the break. Coming up, the latest from across the oil patch when mad money returns. birds chirping go. And go and go and go. but what if you. Stop . You work hard, its time for a bank thatll work hard for you. Everbank brings security and a guarantee that youll earn a yield in the top 5 of competitive accounts. Going, thats what got you where you want to be. Were the partners for your next move. Everbank. Advantage, you. The Federal Reserve is fighting like crazy to stamp out serious inflation. The last thing we need is wheel taking crude up 28 since the end of june. We are approaching this issue from all angles. We are checking in with the cofounder and executive chairman of rbn energy indispensable. I consider him the Number One Energy expert in the world. He is joining us right after the annual school of Energy Conference and giving us the low down on the energy. And maybe help us. We are lost when it comes to energy. Rusty, welcome back to mad money. Thank you for having me, jim. Good to see you. You know we are in a jam trying to figure out if there is a top in oil. We heard 100, 150. We want to say, where does it stop . We are to supply, that makes it so that over the long term, we might be able to find some level that is equilibrium . You know a lot of what is going on lately has been producers reducing the growth of Capital Expenditures and capital discipline issues. That is where we are right now. But production is still growing, even though the count is down. What we are seeing is an improvement in productivity and that means that we can continue to see production increasing even with producers holding back on Capital Expenditures. So we can be continuing to see growth and at the same time, holding back on capital and that is all about productivity of the individual and the producers are just Getting Better at getting productivity out of those individuals wells. If that is the case, they must not be getting enough out of them. It seems like every day when we come in, oil is a little higher. We know russia allegedly is flooding the market with oil. But saudi has cut back. Can we be the swing producer that people used to say we could be . We are a swing producer but it is really the opec and for the most part, the saudis that are controlling things. After all, opec has cuts in place and the saudis came back and did voluntary cuts on top of that. The cuts they made were actually right on target if you are trying to keep the oil price up. They were successful at it and that is the reason we are seeing the 90dollar prices now. When you think about it, all that has happened in terms of u. S. Producers is we have kept the price from going any higher than that. But historically, rusty, the saudis have feared that if you take the price of oil up even higher, the United States will go nuts and drill baby drill. But so far, they are making a bet that it wont happen. That is right. And i think it is a good bet. I believe producers in the United States have learned the lesson that drill baby drill is not what investors want to see and it is not what stakeholders want to see and therefore, they will grow slowly through productivity and not going out and just throwing money at the issue. The last time we had oil this high, oil stocks were much higher. The oil stocks are not reacting. It seems like every time they change the strategy, people find a new reason to sell the oil stocks. To me, they are all great bargains. If we get jordan and he decides, im going to produce more oil and natural gas, theoretically, 26, it would be a ridiculous price to pay. But he is not making the decision. Right. And so what you can count on i think is that producers, as soon as you see the results come back from the quarter, 90 is a pretty good price. When you see results coming back from the quarter, you will see pretty significant dividends paid i believe and stock buybacks because of the cash they will have from 90 crude oil or higher. Finally somebody has something to the people that keep selling stocks. Rusty, it does not do our country does it does us a disservice unless we talk about all the other different kinds of products that come out of oil and natural gas. That is where we are really on fire. Right. So natural gas is growing faster than oil and natural gas liquids are growing faster than natural gas. They all come out of the same hole in the ground but the natural gas wells that are getting older, the older they get, the more gas they have with them and a lot of producers are drooling in areas where there is high content natural gas liquids in the gas and therefore, getting more ngls. In the case of oil and gas and ngl, almost all of those barrels are going overseas. They are going into export markets. If natural gas goes up because they have a cold winter in europe, if the demand continues for the for cap gl, this is a bonanza for people, companie enjoying the permian. Over the lord last couple years, the permian, essentially 90 of the growth in total u. S. Production has come out of the permian. And in the fiveyear forecast we talked about at the conference you mentioned, that is exactly the way we see it. It is really all about the permian. There was a time a couple years go on the long curves that we would be at 52, 55 oil. Im not dismissing that because the curve can be wrong or cant be. What is the curb telling us now . The curve is telling us if you look at the curve now, even though the prompt price is right around 90, the curve on average for the next five years comes out a little lower than 70. So all that tells you is that there are more sellers on the forward curve than buyers on the forward curve and as we have seen so many times, the forward curve really doesnt do too much in terms of forecasting what is likely to happen. The future prices are no indication of future prices. At the ame time, arent there Oil Producers in the country that are hedging like mad because they get good prices loughton . That is right. But they are not going out five years. They are going out a couple of years on the hedges. Not five years. It seems to me and you can tell me from how people were at the conference, that that is a pretty darn good time to be in oil and gas. It is. The investors are i dont want to say it is back to the way it was in 2019 before covid and before so much concentration or so much worry about how production is but things have changed. They have really changed since the ukraine war and the Energy Security is top of mind. What that means for a lot of investors and for the producers and midstreamers and end users of energy, we are much more focused on hydrocarbons and what they can do for the market right now then we were call it two years ago. People are just selling everything like mad. You realize some things are better then they had been before you give everything away. Thank you for coming back on mad money. Always good to see you. Appreciate it. Thank you, jim. A reasonable and rational approach to investing means that perhaps you want to listen to rusty who is to me, the best there is from rbn energy. I felt like the two oil stocks were not enough after i spoke. Back after the break . Coming up, cramer carries the day with the stock to watch. Next. [ Weather Report announcer ] all flights have been grounded. I had to escape, the city was sticky and cruel maybe i should have called you first but i was i was dreaming while i drove the long straight road ahead i drove all nightto ge the distance is nothing when home means everything. Unnecessary action hero missing punches . Unnecessary check reversals . Unnecessary time sheet corrections . Unnecessary unentered sick time . Unnecessary go unnecessary go unnecessary when you can take this phone, youll be ready. Make the unnecessary, unnecessary. Let your employees do their own payroll. We learned curiel global plan to to buy a Company Called Climate Solutions, a european heat pump specialist and getting out of the non climate controlled related businesses. Wall street did not like the deal. We spoke to the ceo a few weeks later. I thought he presented a very compelling case. The markets seem to cover morale which helps cover the stock value from 41 come to 60 in early august. Like some of the other stocks, this one pulled back harder the last couple of weeks and into the low 50s. A joint webcast was held where they spoke about the benefits of the merger. I think it is a great chance to revisit this story. Lets go straight to the source with the chairman and ceo of. Global. Welcome back to mad money. Jim, thank you for having us back. I thought the deal was incredibly compelling the first time around as we know. What did you tell people today that would make it so people really understand how important this merger is . This was our investors ares real first opportunity directly from max himself. He emphasized that we have been emphasizing for five months since we first talked to you. Number one, the continent will see hypergrowth as europe transitions from boilers to electric heat pumps. Number two is there is no company in europe better positioned to take advantage of the hypergrowth them them because they have the best channel and the best brand of the best technology and the Holistic Solutions around solar pd and battery and heat pumps. Number three, he talked about his rationale for the deal. He actually said very openly that he could have sold it. He also pushed hard for more equity and capped at 20 of the deal because he believes in this combination. He is joining the board of directors and believes and has believed since day one that one plus one had to equal four and he doubled down on that philosophy. At the same time, you have businesses that i liked but they are going to go. Why should they go . Because some of them have pretty good growth rates. We concluded that focused matters. You know very well and we spun from united technologies, we created enormous value at the carrier. The same is true. We have the fire and Security Division and the stationary refrigeration businesses that are in and of themselves, phenomenal franchises we determined strategically that our focus was to be the world leader in intelligent climate and Energy Solutions and those businesses did not adequately fit to the north star. We are in the process of selling them. The amount of interest in those assets has been phenomenal. We are cautiously optimistic on the prices that we will achieve. We will use it to pay down debt and accelerate a buy back and look for further growth directly in the core. You have a uuppercase letter think to accelerate a buy back and grow this focused business . It is that lucrative, you think, the divisions you sell . 100 . We feel very good. We said we would do a buy back. We will probably do more than that and we also have the ability to accelerate some of the debt paydown and look for growth. The story for carrier since day one has been about growth. And we have been seeing extended growth. And what we are doing with the Climate Solutions, is we are investing in the highest Growth Market in our basic global lead which will see consistent doubledigit growth because it is transitioning from gas boilers and a lot of reliance on russian gas, to the entire energy and Climate Solutions industry focus which is really around electric heat pumps. I wonder whether people started to warm up to the deal when they realized that europe is a different regimen. They are offering a tremendous regimen. You can make a huge amount of money can actually make money, if you adopt viessmann. Maybe people understand that that is how works. 100 right. If you look at europe, you have 17 countries that either have a ban or partial ban on fossil fuel heating and they also have subsidies. Italy, 90 subsidy to move to heat pumps. Germany, if it passes through the upper house which it will probably in the next month or so, 70 subsidy to move to electric heating. When you look across europe, you are seeing significant regulation and subsidy that is accelerating the transition to electric heating. One of the things i liked is you are not even giving us the possibility that viessmann is so good that they will be adopted here and clearly, it is the best solution, isnt it . It is a great solution. And what we are seeing in the United States from the Inflation Reduction Act is for the incentives in the United States. 2000 to transition to heat pumps in the United States. The same kind of regulation subsidy you are seeing in europe, you are seeing more and more of that in the United States which is also, you will see the same transition used on vehicles as you see the transition to electric vehicles. You are seeing that in homes and buildings. A transition from traditional fossil fuel heating to electric heating. And that transition is being accelerated in the United States. Viessmann has the air to water solution that could become more prominent in the United States. Let me ask something and i hope you dont regard this as unfair. You are a business person and you are out there. A lot of the viewers are saying, i dont even want to own anything that has anything to do with stock and i can earn four and half on a 10 year. Isnt it true that you can bring out value dont have confidence that you can bring up value that is not such a high hurdle rate for you to achieve . You look at the financial algorithm, the rule we would have been in the doubledigit range for eps. A new look at removing the Foreign Security and commercial refrigeration business and adding in something that has been consistently growing recently in the midteens. That hypergrowth is not something you can get there fixed income. People should also understand, it is not like our country has been void of the two how the the incentive. You have invested in the key a 12th program. That people dont even know in the country unless they are literally at the school that it is happening at. He kept her 12 has been starved for too long in the United States of funding. The key kept her business will be up 20 this year. The u. S. Government has allocated 190 billion to key chapter 12. 90 billion of which has not even been allocated yet at the last 90 billion is right and our wheelhouse because it is more the infrastructure spending. Things like upgrading the hvac system, not only for more energyefficient heating and cooling solutions but also for healthy indoor environment which is right in the wheelhouse. I have not heard anything that said that if there was a dramatic will in spending, it would stop. I hear about initiatives that are about the safety of our world. And if rates go to six, they dont stop. They dont. And you look at getting to net zero by 2050. You look at the kind of commitments the European Union has made through the paris agreement. And repower eu which doubled down on the commitment to get a 50 reduction in Carbon Emissions by 2030. You look at the frameworks in the United States and in europe. What you will see is continued more and more funding toward Building Solutions that are more energyefficient because remember, jim that 40 of Carbon Emissions come from buildings. And 40 of that from hvac systems. We will talk a lot about vehicles. People talk about jet fuel. It is less than 3 . Buildings, 40 . We have to be part of the solution in the industry. You will continue to see regulation and incentives to transition to more Energy Efficient and electric solutions for buildings and homes. It makes so much sense. Is the kind of thing im looking for for the investing club and travel trust. Im not concerned about rates but im concerned that we cut emissions and that would be what you do at carrier. Dave is the ceo and of carrier global. He has done an amazing job. Thank you for coming on the show. We appreciate it. We want you to understand that it is a difficult market. But there are companies doing things that are amazing and are being obscured by the difficult market from what you hear about. You have to think bigger some time. Carriers think bigger. We are back after this. Coming up, cramer takes your calls and the sky is the limit. A lightning round next. Yall seeing this . Earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise] upbeat music constant contacts advanced automation lets you send the right message at the right time, every time. constant contact. Helping the small stand tall. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. There is something exciting i want to share with you today. The reason is so special because it is just for you. You always hear me talking about the work i do with a special community. For this week only, i will share a little taste of the work that i do during the day. And in uncertain times, returned to the club for rational thinking about what is going on. Those that were on the 10 20 a. M. Morning meeting, notice we were taking what seems to be in a rational business and explaining it to your benefit, take changes throughout the day. Of course. Around 2 00 p. M. , we do the home stretch. Another benefit or feature exclusive to club members. Today, that is where we think that maybe it is time to do some picking up of quality stocks because the market is finally oversold. It is so important to educating you on how to be a better investor. I think you should be a member of the club and get more insight just like i told you. That is why cnbc is giving you an exclusive offer only available to mad money viewers. At your phone and open your camera and pointed at the qr code or go to cnbc. Com jimoffer. And now, it is time. The lightning round. The lightning round is over. Are you ready . Lets start with gabe in michigan. Hello jim. What is going on . To refund the operations generating a healthy cash flow. We was up last month. Companies down 6 . I think it is time to break out of purgatory. I think the stock is low enough. It had a bad quarter. It is being punished endlessly. That is wrong. Brad, georgia. Would you help me understand what is happening with Fiber International . Yes. It is a nice online marketplace but it is not making money. And the smart market will not buy or take any company not making money. Tad in north carolina. Hello, jim. Can you tell me what is going on with trans medic . I cannot figure this out. It is kind of a rational market. It says, if the company is losing money, unless it gets a bit in the biotech business, we will send it lower for now. Lets go to dave and illinois. Dave. Dr. Kramer, when are you coming to chicago . We went there once before but if you say we should be back, i am heading that way. But waiting until the spring though. Something scientific. I took it home this weekend. I studied it. I said, is there ever a day when this is not recommended . This is such a good company, dave. As often you bring us fantastic ideas. The best in show. Kicking myself. Allen and florida. There is a worldwide Nuclear Renaissance happening because nuclear is considered clean energy and may be the only way to get to Net Zero Energy goals and modular reactors are changing the landscape. Russia is no longer considered a reliable source. Domestic uranium is a premium. Could you see prices go nuclear. . I agree with you about nuclear. We have constellation energy. I felt even more like it. I have to say that you have a very good spec. I need to go to alex in pennsylvania. Alex. I just want to say thank you for taking the call. The company is undervalued at the current price. Paramount global. Entertainment stocks are so hated. I think you might be able to get this thing two points were a few points lower but it is not expensive anymore. And that is the conclusion of the lightning round. Coming up, friends and search. Why apple and google are unified against the ftc. Next. If you do not know any better, you would think it was one gigantic opera. Amazon. Exercising monopoly power and at the same time, the Justice Department learning more about how google allegedly monopolizes the search. In the old days, the standard was how things worked out for the consumer and both of these companies have been fantastic for consumers. We cared about the outcomes to the consumer first and foremost. Im not asking the ftc are just a suburban to give either company the congressional medal but i do think the regulators should think like that again, especially in a year where the consumer is being shredded by inflation. These two companies are actually trying to do something about it but the ftc is going after google and amazon like they are standard oil. A Company Getting 100 of the market. And then Rockefellers Standard Oil tried to monopolize by any means necessary to succeed so the government sued to break it up. A good decision because there was no competition. They could charge whatever they want. Im sure google and amazon would like to be actually monopolies but neither has that kind of scale. Google has to pay apple 20 billion a year to be the Search Engine default. That does not sound like power. We are not at the google mercy because of the deal. Unlike standard oil, the benchmark, they have the most powerful and wealthiest competitor in the world. Microsoft. Microsoft does not need the ftc protection. I think apple will go with thing if they had the better a petition and better program. Even if microsoft was not willing to pay as much. The Apple Services division is all about giving users the best possible experience. That is more than the government wants you to have. In the end, they dont want any company to be as big or powerful as amazon or apple. The head of the ftc has had it in for amazon for ears. I understand the impulse to look at the multitrillion Dollar Companies and decide that enough is enough. No business should be that powerful. But they got that big because they are so much better than the competition. Nobody can roll that back. Once again, the consumer lost amazon. That is why the company has tens of millions of amazon prime subscribers. There are so many other sites and so much commerce that they might have set out to monopolize but it too cannot be called a monopoly. Be sure you dont start a company or grow thinking, i will be number three are four in order to not be investigated by the u. S. Government. Lets get one thing straight to the government cannot have a company so big that it is impossible for others to compete. If you are a rich and powerful company, the government will try to find a way to prosecute you. The consumer does not matter as much as the competition. I think that that is wrong. But so what if i do. I do not run the Justice Department or the ftc. But this is not mad law school. Over the next to weeks, these will be the cases. This is the mad money. Google stock has outperformed the nasdaq since the governments case began. I think the safety will be with amazon stock the only way a way to cure compete from being sold big and powerful. First party retail and Third Party Retail and cloud computing. They were to break amazon up like that, it would be worth more then it is trading now. No dog in the hunt says amazon will be worth almost 200 on a breakup. Stock at 126. I rest my case. Let me be like deputy u. S. Marshal sam gerard with doctor Richard Kimble said he did not kill his wife. I dont care. Forget the motivations. The stocks are bias. Good evening, everybody. As you can see, we are live outside of the Michigan Assembly plant in wayne, michigan, about 25 miles west of detroit. Uaw workers are on strike and the only manufacturing facility in the state of michigan. The big event is that of President Biden shaking hands. Union members in nearby