Said dont worry about it. Its all going to work out talk about a punt. That young man deserves better you know what . You deserve better so let me give you some answers about what can turn this darn thing around for real after a hideous day. Dow only 105, only but the nasdaq plummeted a bone crushing 2. 43 the house of pain thats awful. Look, as i tried to say last night, this is not a good market i know you dont need a weatherman to tell you which way the wind blows think about yesterday. I tried to say everything good right now is merely a trade because stocks have become divorced momentarily from the fundamentals of individual companies. A bunch of bigname stocks who rallied on good earnings yesterday, not because of the results, but because they reported on a day when Interest Rates, they sure werent today, they shot up like a darn musket. Rates should not be tame Interest Rates should and are going higher we have too much bond supply too, many sellers, and too much hot Economic Data that makes it more likely that the fed will keep tightening. And of course selling bonds itself so for the moment, you cant trust the stock prices that you see, or at the very least, you cant assume that they have much to do with the underlying company. In fact, if you want to know the direction of your stocks near term, you would probably be better if you sold the Census Bureau for the sales data or the Treasury Department for how many bonds it needs to sell, or the oil market for the price of crude oil that were more important than any Earnings Report i saw today, with the exception of microsoft, numbers that said its stock could rally 3 then again, maybe its a nation unto itself. Lets play it out. Lets say you happen to just nail a companys earnings perfectly. [ applause ] maybe boeing reported nice upside surprise this morning the stock jumped four points when the market opened yes and then it closed down more than 4 bucks at the close. No the initial rally was about the fundamentals but the horrific decline is about a sudden spike in Interest Rates from a lousy bond auction that the treasury threw to pay for the humongous budget deficit and stayed down when oil spiked, which is always bad for boeing in this market, everything is a trade. Boeing couldnt even rally for an entire morning after reporting a tremendous quarter, let alone the hole day which brings me to that young man on the street down there who wanted to know what will turn things around, the one that i punted, told him dont worry about it he deserves that adequate answer were going give you the adequate answer. But to do that, we have to delve not just into stocks, but we have to delve into bonds i know for many of you the bond market seems a little opaque, not just a real snoozeathon. I dont want to go inside the yield curve tonight and put everybody to sleep, but just like stocks, bonds trade on the fulcrum of supply and demand its a market. The United States has a big deficit market that it constantly borrows money it does that in the form of an auction. Today the treasury sold notes in an auction and demand sagged causing its rates to go higher lets say you own the stock of am and apple went out and issued 52 billion more in new shares you know it would be a tough sale sell. The stock would get hammered thats what happened to the bond market too much supply all at once, and that supply cant find a home. It just cant. Look at this thing its looking for a home, its looking for a home hasnt found it yet. All this has a subtle impact the yield on the fiveyear action didnt spike much but the yield on a 30year response did why . Because we know the government will keep issuing more and more pay sell, sell, sell, sell, sell, sell. And there is no appetite. There certainly wont be an appetite for longer term bonds especially since they have even lower yields right now what can allow them to stabilize . Lets go down the list to be a little simplistic, we need to see more buyers than sellers in the bond market at these levels we seem to have more sellers than buyers look, we dont just have the treasury selling bonds, weve got a constant supply. We have the Federal Reserve selling bonds, part of attempt to stem inflation by cooling down the economy, sucking out all the liquidity. We have foreign governments selling our bonds, including tons selling from china. They have a 8. 5 billion position in bonds. They could sell them all for all i know what could change this dynamic first, bond price. If bond yields go higher and higher, prices go lower, many come in and buy them ive been saying over and over again, once the 30year yield 6 , count me in as a buyer but its a little over 5 now. We have a long way the go. Second, how about data we need weaker Economic Data, not stronger weaker that would allow the fed to stop raising rates, maybe even cut them that would give us a big break in the bond sales. But we keep getting strong data. Today for example with Mortgage Rates at 8 , we got shockingly robust new home sales. 12. 3 better than the previous month. Sure, median and low prices have fallen down from 477,000 thats good. But not good enough. Until home sales crater, the fed has no reason to feel confidence winning the war against inflation. Which brings me to the third thing that could turn bonds around some large layoffs its terrific that we have an Unemployment Rate of 0. 38 if you want to see rates do gown, talk to me when the unemployment goes to the mid 4s, maybe even 5 when we Interest Rates are going to keep rising thousand how we get to 6 we can have the oneoffs, the decline in gdp, going lower, Consumer Price index going lower, they all matter but you tell me where unemployment is going, thats what really determines it. You tell me where its going, ill tell you where the stock of boeing is going. Its much more important for the stock than the terrific conference call. If you want to see boeing stocks soar, we need to see fewer jobs created, more people laid off which leads me to the fourth way. We get osome level where it doesnt make sense to sell stocks because stocks can actually be cheap. Even regardless to buying meals. That happened in the 90s thats 1990s, not 1890s. Were obviously not at these levels yet, or a stock like boeing would have rallied all day. The bond market can once yields or stocks get attractive in price, both, achievable nirvana. When we get to the lower price level the market will be really oversold, its pretty much there right now, will it can cause a bounce of its own. We are indeed oversold fifth, we can have flight to safety is the way they call it, where there is so much turmoil overseas like we have now that people rush to buy u. S. Treasuries because despite all the craziness in washington, the combination of strong dollar and lack of stability anywhere else, they make our bond market seem like a lovely place to be, especially at 5 , up from 3 not long ago were not there yet. Bottom line, from the perspective of the stock market, we need all these five to happen, all of them. This seems to be happening right now. But we need to have mass layoffs, geopolitical turmoil, all these things will eventually create an investable moment, young man down here on broad street until then, though, even the moves of the best stocks are just a trade lets go to joe in new jersey. Joe . Caller mr. Cramer, thank you for taking my call absolutely, joe whats shakin . I was told you should invest in companies that you use. Okay. And im a lot i own a lot of john deere equipment. Is john deere a buy . And by the way, nothing runs like a deere look, i got a gator i totally agree with you let me tell you my problem if i say its a buy, its at 371. Thats a lot of points so lets say it goes down the 340, well be like cramer is an idiot. I dont feel like being an idiot. Here is what im saying. I think deere is a great longterm investment because we have a longterm view that we got to feed the world. Deere is the best there is i say buy some and wait. Interest rates get to 6s, youll be able to buy thats the new plan. Thats what were going to do. How about we go to nick in florida, nick . Caller good afternoon, jim hey, big guy. Caller i have a question about broadcom. Sure, im all over it caller will it still go through at the end of the month without china approval or will it be another Intel Tower Semiconductor broken deal it cant go through it cant go through out chinese approval, it cant that was supposed to happen by my wifes birthday, which is coming up here real soon but it doesnt look like its happening. But i cant tell what will happen if it doesnt i know this, broadcom is an inexpensive stock and hok tan is an excellent ceo and he will buy that stock hand over fist if he doesnt get his way with china im going to keith in my home state of pennsylvania. Keith . Caller hello, mr. Cramer, how you doing . I do, and it was greatly disappointing. But hey, thats philly for you sometimes. Yeah, yeah. Thats true. Caller hey, well, mr. Cramer, i was wondering if you could give me some wisdom and insight into etsy . Yeah. Caller you recommended it a couple of months ago, and its been continually in the house of pain will things turn around for the company . Thinking is a great question, because i think the company itself, down almost 50 represents great value i think Josh Silverman is an excellent executive. In the old days when we used to have takeovers, i would have said someone would have bought it here. Im not going run away from etsy because i think its one of a kind that said, one of a kind stocks go down too in this kind of market, at least for now the market has become laser focused on Interest Rates, not earnings and its causing stocks to become divorced from their current fundamentals until that changes, well, any move, its just called a trade mad money tonight, trying to get a read on gdp growth in the snus well, as i told you earlier in the week, read between the lines durning earnings season and get a sense of where things are going. Wgm, changing right now. Mattel had a smash whitt the barbie movie how will that chance late to holiday sales . Im getting a preview. And strikes to higher auto Interest Rates, why dont we check in with lithia to get a sense of how things are unfolding in that corner of the market so stay with cramer. Dont miss a so effected 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. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to help keep our Online Platform safe from cyberthreats . Absolutely. Can we provide health care virtually anywhere . We can help with that. Is it possible to use predictive monitoring to address operations issues . We can help with that, too. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. This is american infrastructure, a prime target for cyberattacks. But the same aipowered security that protects all of google also defends these services for everyone who lives here. In the u. S. We see millions of Cyber Threats each year. That rate is increasing as more and more businesses who lives here. Move to the cloud. So, the question is. Cyber attack as cyber criminals expand their toolkit, we must expand as well. We need to rethink. Next level moments, need the next level network. [speaker continues in the background] the network with 24 7 builtin security. Chip . At t business. Cmon, were right there. Cmon baby. Its the only we need. Go, go, go, go ah touchdown baby touchdown are your neighbors watching the same game . Yeah, my 5g Home Internet delays the game a bit. But you get used to it. Try these. Theyre noise cancelling earmuffs. I stole them from an airport. Its always something with you, man. Great solid greek salad . Exactly dont delay the game with verizon or tmobile 5g Home Internet. Catch it on the xfinity 10g network. At the top of the show, i laid out a series of things that need to happen before the market can sustainably go higher. I rattled off a bunch of variables about Interest Rates that could make go higher too. But some stocks, rare ones can withstand the graphtational pull of Interest Rates even on an ugly day like this we saw wit microsoft and a Company Called wm. Thats the outfit formerly known as Waste Management, which had a tremendous quarter how could a company that is so sensitive to the economy deliver surprisingly great numbers in a world where the feds are relentlessly trying to cool things off why dont we find out by talking to the president and ceo jim fish welcome back to mad money. How you, jim . Well, jim, im astounded. There was a time when you and i or your predecessor mr. Steiner might have talked about how many cities are there where there is building, how much new waste is there from a housing development. This is a story of transformation its a story of automation and its a story of the money that can be had by being a good Corporate Citizen with renewable natural gas. Im going to turn it over to you, because this is not Waste Management this is wm well, youre right. Weve change kind of the marketing aspect of it a couple of years ago during the golf tournament, somebody asked us arent you trying to become synonymous with sustainability, and we thought, you know we are. Why dont we call the company wm instead of Waste Management. But were excited about the quarter. Were excited about the top line was a little flat. We thought it would be for the year so ive been focused on the middle section its important to put it, this is what i wanted to get at. The top line did not rule here what ruled is the expansion in margins. What knocked my sox off is when tara hemmer, your sustainability officer said there is 500 million projection ebitda for Renewable Energy this is an extraordinary thing i remember going to the camden, new jersey pump of natural gas and thinking this is a boutique operation you guys are running is probably one of the most profitable operations i can recall seeing in corporate america. Well, and its gas thats coming to us any way these landfills by their nature create gas and what weve done over the last year and a half is start to convert that into renewable natural gas. And of course we have a natural gas fleet, about 75 of our routed trucks each day are running on natural gas so it really creates this full circle for us. But youre right its very profitable there is obviously some construction involved. Were going have 40 plants, not all natural gas, but 40 construction events ongoing next year at the same time. Were excited about it also, because of automation, youre actually bringing down the costs of your basic business while churn is almost nonexistent. That is a level of leverage that very few companies have in america. Well, jim, weve talked about this before, and that is that this trade group, the folks that are willing to fill these trade type positions, that group has been shrinking over time in my grandfathers generation, probably half the folks in that generation were truck drivers. And in todays economy, youre seeing this kind of shrinking trade group. And weve been seeing it coming for probably five or six years so we said what do we do to take advantage of that, and we started using technology and our own natural attrition. So when some of these positions freed up, we used technology to replace them instead of just back filling them as we used to do. You gave us some data that is really hard, empirical analysis. In the Third Quarter we saw materially lower labor costs per ton at our automated facilities at about 35 below the rest of our recycling network. How is that possible thats right. How is that possible . So when we rebuild these facilities, and ill give you an example, we used to have an optical sorter, maybe one or two optical sorters at one or two of these recycle plants now we have between 20 and 40 optical sorters. What hatches is you dont need as many physical supporters. You dont need as many people there. Those jobs, by the way, turn over at about 50 per year in theory, you could replace all of your sorters in two years time but when we rebuild those plants and we put all this technology in there, we dont need as much labor. And its okay because those folks have left and gone to another job somewhere. And weve just chosen not to refill the position. We also watch your ads, those of us who watch sports, see a plethora of them and i was with someone who said thats a phony thing theyve got some lifter that takes the place of a human on a waste truck. Im seeing automated 141 residential roots and have a target of more than 400 roots in 2024 this is, again, something where youre taking the cost out, and its rather dramatic i think weve got more than just the 400 thats just, you know, were going take another 400 trucks, delivery of trucks next year, those automated side loaders, and were replacing those traditional rear loaders which we saw running around our neighborhoods as kids with the person on the back now were replacing that person on the back and by the way, its another job that had almost 50 turnover to it its hard job. So when we have somebody leave as helper on the back of a truck, were just simply not replacing the position, and were adding an automated side loader that is run by a joystick thats incredible also, i think people should realize when probably the first three or four months when you hire someone new, you dont really get your worth. Youre training them so its really hidden how much youre saving, because its kind of dead weight loss when you hire a new person initially. Thats right. And our training costs, part of the improvement in op x for Third Quarter was a reduction in training hours we had a pretty big rampup in training during covid, and that has come down dramatically over the last two quarters. Certainly in the Third Quarter r what happened if you grew at 3, 4 , which we know is possible because you still have an element of gdp growth here i think it would be certainly a positive for us if the economy was growing at 3 or 4 we just dont see any huge optimism as we move from 23 to 24. Im not sure ive read a single report that shows 24 is going to be better than 23. But there will come a day, maybe 25 when the economy is growing 3 or 4 again and well be a beneficiary again of a highgrowth economy. Right now with a kind of flat gdp, were working on the middle as you and i just discussed. Is there a way for people to understand the power of this natural gas franchise . It was kind of like copper versus gold where copper was a byproduct of gold it turns out there is gold itself i felt when i read this, i really have to start model what youre doing in renewable natural gas to figure out how well youre doing. The plan weve been capturing natural gas, or capturing gas out of these landfills for many years this isnt something that we just discovered in the last two. But what we have changed to over the last couple of years is instead of just capturing natural gas and putting it into a gen set that turns it into electricity, were actually turning it into renewable natural gas. And we have the ability, as i mentioned because of that natural gas fleet, to generate these ren credits and then sell those ren credits, and theyre very profitable to sell. The value of those has gone up fairly significantly over the last six months. Well try and get our hands around what we think the value is going to be for 24 but they are very profitable for us and in addition, were producing gas that we can put into the pipeline look, its a complex story that does hinge on the fact that youre just a much better operator than you used to be and thats why a lot of things flow you were a good operator before, but youve really finished it out. I want to thank you, jim fish. You gave us some fun today your stock is up 9 the rest of the market is terrible its great to see you. Good to see you, jim. Thank you mad money is back after the break. Coming up, it hasnt been all fun and games for mattel will the barbiepowered Earnings Report put the toymaker back in the dream house . Cramers got the ceo, next [ heavy breathing ] [ lights buzzing ] [ music builds ] [ screaming ] hi, my name is damion clark. And if you have both medicare and medicaid, i have some really encouraging news that youll definitely want to hear. 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That could fuel great numbers for mattel sure enough, mattel reported tonight and offered conservative guidance on what i thought was a very good set of numbers, but i think the guidance didnt capture the longterm value that is being created here. Hence why the stock actually traded down on those terrific numbers. I got to ask, is the market missing something . I think its worth a close leerk. Lets check in with ynon kreiz, the chairman and ceo of mattel mr. Kreiz, welcome back to mad money. Hello, jim. Great to be with you again. Congratulations on what i guess is the cultural sensation of the year, both movie, and yes, of toys i wanted you to give us a longer term impression because the stock is trading down for all these things that wall street gets right or wrong. Longterm impression of what the intellectual property of mattel means now that weve seen the success that it can have in movies. Well, let me start by saying this was a very Strong Quarter for mattel our results exceeded expectation. We showed meaningful sales growth in Market Expansion with very strong Free Cash Flow our consumer demand grew, increasing the quarter we continue to outpace in the industry, and it was breakout quarter for our entertainment strategy, benefitting from the incredible success of the barbie movie. So all in all, we are very wellpositioned competitively. We expect a strong Holiday Season and gain market share in the Fourth Quarter and the full year and clearly, the barbie movie was a big driver but this is not just about one movie or just about barbie its about the holistic tragedy to capture full value from our intellectual property, and were executing on this strategy okay. You know, i totally agree with you, and ive been on board since, i dont know, lets say high field digit, low double but i do know i have to be cognizant that people are selling the stock right now. I want to tell them why theyre wrong, but i dont want about the person who does it you can. You have said the expectations are for a certain amount that may have to do with, say, the economy, may have to with christmas selling, hanukkah, the holidays, whatever but its regarded as being tepid, your forecast i think that this is a big mistake to regard as tepid okay, look at the success you had. Look at what you could do with hot wheels ive got that on the table look at pictionary youve got so many different ive got some behind me too. I see ten movies here. And thats what you told me would happen five years ago. Weve been executing our strategy very consistently we increased our guidance for the year we continue to execute well. We grew sales and grew pos in the Third Quarter year to date, and we expect to continue to Grow Consumer demand in the Holiday Season in the Fourth Quarter and the full year. And continue to outpace the industry the company is performing well across category, different pay patterns, different price points were entering the Holiday Season with more retail support, more shelf space, more representation in major catalogs for the Holiday Season and increased advertising. So were very wellpositioned competitively, and were seeing demand resonating for our brands and this is not just in the adults category, its also in vehicles its also in categories that are all adrenaline by strong brands. And what we are doing, we are executing consistently on the toy side of the company. And prior to that, were growing outside of the toy aisle given that were one of the strongest portfolios of children and Family Entertainment franchises in the world, our strategy is serving us very well, with the barbie movie being a showcase for what we bring to the table, how our brands resonate in culture, how we attract, collaborate, and amplify top talent, and how we can Market Product outside of the toy aisle very successfully. As you predicted, you told me, told everybody, go see the movie. The movie was unbelievable what did i walk out wanting to do have more barbie movies. Can we have more barbie movies well, we are here to build film franchises. And talking beyond the barbie movie, this is about how do you take successful brands and execute anni p tragedy across multiple verticals, highly accredited verticals that in some cases are better than the toy industry, all driven by big franchises and the success of the barbie movie is a showcase. We dont say that every movie will bes a successful as barbie, but we intend to apply the same methodology, the same approach, the same capabilities. And with 14 movies that weve announced, were well on our way to executing our content strategy, as well as our television activities, digit at the experiences, Consumer Product and merchandise, live events, parks, and many other opportunities to continue to engage with consumers, that in our case are not just people who buy product, they also are fans. Thats right. Thats where the opportunity lies ahead. Well, why was hot wheels so strong, do you think hot wheels is an incredible, incredible franchise its on track to achieve its sixth consecutive record year. It grew at 19 in the quarter. And we just continue to innovate with more product lines, more execution. We expanded into skate and rc. And seeing tremendous opportunity ahead of us with another movie that were now currently developing with j. J. Abrams as producer to bring yet another exciting brand to the marketplace on the big screen. So which of these are why dont you tell me what you think is going to be the hottest were not that many days away from the big Holiday Season. You have a better command of it than anyone here what are we going to be buying well, we have a lot of exciting stuff, exciting product. Barbie signature is just released a ted lasso doll which is very exciting product but were seeing the Spirit Halloween barbie costume being a top seller the Barbie Dream House and fashionista assortment is also a great seller out of the movie, the Barbie Margot robbie doll is also going to be a great item for the holiday. And of course the hot wheels basic car assortment and the fivecar pack assortment a great product to look out for. And watch out, uno, also great product coming out of mattel and what we do, our job is to take brands that are timeless and make them timely and relevant to culture. And much of the success of what weve achieved on the toy side of the companies as well as the barbie movie is resonating with culture. And to think of people who buy a product not just as consumers, but as fans that have an emotional connection with your brands right and thats why i think that when we look at a stock price, were really missing the big picture youre redeveloping a culture phenom that was from my childhood, from the kids my year and youre making it so that people are thinking, wow, this is a new very exciting brand and youre taking it and transcending and making into it the Entertainment Company that you told me it would be one day when i laughed and said its a toy company. It is an Entertainment Company, isnt it we continue to grow and expand, and we have a very Clear Strategy to continue to grow our ipdriven toy business and expand our entertainment offering and become a true platform. Right. That leverages brands across multiple categories. And the analogy that we used to refer to, and you remember that, was marvel. Right. It used to be a comic book and expanded to what it is today. We start the journey as a toy company. But the opportunity is very exciting and we continue to execute successfully and the barbie movie is a great showcase, a great template to how we see the opportunity in front of us. Well, thats an amazing analog im going to leave it at that. Thats exactly what i was trying to get at. I want to thank ynon kreiz chairman and ceo of mattel you bring a lot of joy i love it. Thank you, jim. Mad money is back after the break. Coming up, these days, the legwork in car buying is in the consumers hands it can make buying decisions, selling decisions, financing decisions, and everything right at their fingertips. Can this Turnkey Auto Group put investigators on the road to prosperity stick with cramer. Dont waste your time trying to analyze Market Trends. Thats what vector vest is for. 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Now theyre focused on learning knowing that their data is secure. oh, this is a disconcerting time for the Auto Industry with a serious strike that shirting business and higher Interest Rates that is crimping car buyers lithion driveway which runs a new and used Car Dealerships their same store sales came in better than expected they also learned 9. 25 a share. Analysts were looking for closer to 10 bucks. The Stock Plunged 6 today when we look under the hood, this is more of a mixed nuance quarter because of all the negatives, though, i keep referring to about wall street, they werent going to give the benefit of the doubt any way most important, though, there is a lot to learn from these guys about the Auto Industry and how its doing right now we had the chance to speak with bryan deboer, the president and ceo of lithia and driveway earlier. Take a look. Mr. Deboer, welcome back to mad money. Hi, jim good to be back. Oh, thank you, bryan. Look, weve got a pretty robust economy. Weve got very good and low unemployment is that why your sales continue to hold up, despite the fact that we hear so much woe is me on wall street i think thats fair to say. The market actually is quite resilient, despite Interest Rates climbing almost 200 basis points our manufacturers keep adjusting their financing incentives to make it more affordable for consumers. I think most importantly, Lithia Motors sells zero to 20yearold cars that keep people within the lithia and driveway ecosystem quite nicely. Lets talk about the process of buying a car. At one point i always thought people would go, as i did not that many years ago with my daughter to medford to one of your lots and make a decision looking at cars. It does seem, though, you have correctly identified the omnichannel is the right way to do this. How many people are starting at the driveway portion of your company before they go buy its almost three Million Consumers a month that are starting in the driveway portal. There is also another 700,000 consumers a month that start in our green cars portal, which is the largest edge asianal Sustainable Transportation website we believe independent in the United States, outside of maybe tesla or a few other main factors. Had you not gone technologically and taken this leap, what would lithia sales look like versus what they look like now oh, gosh, i think more importantly than that, its about the transparency that our consumers are able to achieve by going digitally where theyre in control of the entire environment. They can make buying decisions, selling decisions, financing decisions, and everything right at their fingertips, sitting in their own living room, which is quite nice so therefore, it makes sense your Expansion Plan is really kind of on a platform, as we often talk about with technology companies. You got a platform, the lithia platform it seems to even work in the uk. Once youve got it down, it really does demand that you keep buying more dealers. It does the design is conducive of that, thats for sure. In fact, in the uk, we just recently signed a transaction, and were really looking forward to the partnership with pe pendragon which brings us our own system some day. To further those experiences with our consumers, we really believe, to be able to tie this different ecosystem together, its imperative we have our own technology to deliver that directly to our consumers driveways. Lets talk about the perception versus reality. The perception is created in your business by we read these endless articles the worst defaults in 30 years, the highest number of people having their cars repossessed. But then i look at your numbers, and, yes, you had a little bit lower earnings but you had great sales. Thats what i look at. And i would say maybe those figures could be maybe misleading about the health of lithia driveway. Those numbers would indicate you really cant be making all this money. Yes, i think when we look at whats happening in the current environment, most importantly, the marketplace is robust. And i mean, our same store sales increases and new were up 5 used were down little bit. But inventories are quite tight. When we got almost ten Million Units of new vehicle sales over the last three years that arent there to become used vehicles now. And thats making it a little bit tighter. But ultimately we is still have situated elevated use on the used car that keep the profitabilities nice and high, and were still looking for great productivity increases coming from personnel as well as the technology really being able to help our associates meet those customer demands in a lot easier way well, let me dig down more. The fed has repeatedly raised rates. You said there has been ac accomm accommodations at a certain point, we have to have more people having their cars repossessed something we should worry about if we own the stock of lithia driveway i dont think you have to worry about that in terms of driveway finance our loss expectations were really neutral where they were sequentially last quarter, which is great more importantly than that, were pretty good about being able to move people up and down the price bandwidth on the vehicles theyre purchasing to hopefully keep them out of those situations and keep them driving back and forth to work and i did need to know, when i look at your own balance sheet, do i need to be concerned that its difficult for you to bundle your loans and then sell them in the open market . No, were really to a systematic selling of our securitized debt, which is attached to our loans. Weve done three securitizations so far this year and expect another one in the next few months but its relieving our cash flow so we can really focus on m a, which is quite nice going forward, because there is a lot of opportunities still out there. Its very clear your strategies rewarding shareholders the stock has been a real win their year i cant claim that about everybody else in your segment, by the way but a lot i think is your decision to take risks, take risks and buy more dealerships at what i guess youve obviously must think are reasonable prices created by all the negativity. We do we were pretty darn disciplined. We bought 3. 8 billion in revenue so far this year with the pendragon acquisition, well be almost 8. 2 billion so its going to be another full year of acquisitions with good outlook going into the future to really drive towards that 50 billion expectation that weve set for ourselves and beyond well, look, youre a man of your words the 55 per share eps target seems to be right too. And in the time since weve known each other, its just been a very, very good situation. I want to thank bryan deboer, the president ed on ceo of lithia driveway. Thank you, brian good to see you. Great to see you, jim mad money will be back after the break. Coming up, cramer takes your calls, and the sky is the limit. Its a fast fire lightning round, next when the day that lies ahead of me seems impossible to face a lovely day lovely day lovely day lovely day a bank that knows your business grows your business. Bmo. upbeat music awww. Awww. Awww. Nope. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. It is time, its time for the lightning round youve [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Time for lightning round. I want to start with peg in ohio peg . Caller hey, jim how you i am good. How about you . Caller good. I know there is a bull market somewhere, and i missed out on the early days at tesla. So i want to know what you think about rivian automotive. I got to tell you, peg, i like rivian. But it is losing so much money that i think they have to do more financing than theyve done were going to wait until the second financing before i can actual the trig owner rivian tiler in california, tiler caller hey, booyah from california how are you doing . I am doing well how about you . Caller im exhausted today. Yeah. Caller id like to know your thoughts on schlumberger slb reported a remarkable quarter. I would buy some here, buy some a little lower oil reverse was 82, went up to 85 this company had a great quarter. Halliburton too. Joe in ohio, joe caller hey, jim. Im looking to invest in an auto part company. Okay. Caller and genuine parts company. Its a good company it has a 3 yield. Have i seen this yield as high as 5 because the stock has been lower. I think its too early to commit to the level by the way, i do like autozone that continues to buy back stock left and right as we mentioned today on our home stretch for club members how about lee in virginia, lee caller yes, calling from lexington, virginia. Last home of robert e. Lee. Okay. Caller come visit us, jim. I like virginia nothing matter with that. Caller going on in the mountains. Well show you around. Okay. Whats happening caller its hr, good management, good product. It, but its an expensive stock. And in this market, we have to be very, very careful, because stocks are being divorced from the fundamentals and anything too expensive, it becomes in the thrall of the bond market. Thats the problem with aehr teresa in kentucky, teresa caller booyah, cramer for taking my call. My pleasure. Caller i just wanted your opinion on my stock. It has gone down 40 in the last two weeks on no news i hate to give up on it and want to know if its safe to go back and lower my spaces or just hold or okay. And what stock caller im sorry, the stock is tsa yields 5 its just trading like a bond. If Interest Rates go to 6 , down another 15, 20 . I want you to wait until 200 that means your next buy will be meaningful and not until then. Thats what we teach in the investing club all the time. Your next buy meaningful paul in pennsylvania, paul caller how you doing, mr. Cramer. Im doing fine. How you doing, partner whats up . Caller my question is covering some of the wildfires what do you think about getting in on some hawaiian electric, he thats an interesting spec, i have to tell you but it is a spec as long as you know is nothing but a spec, then i think youll be fine. But if you think its some sort of Investment Grade piece of paper, i got bad news for you. It aint so thats the way i feel about it lets go to jeff in california jeff caller hey, jimmy chill, hey, you know, im a real numbers guy, jim, and there is a stock that hardly anyone talks about, but the numbers are great. I just need to know when to get in the stock is called trade desk. Thats jeff green we think the world of jeff green. He has helped us immensely i agree with you it is a Terrific Company the stock is rich. This stock market didnt have a tolerance for that i would buy some and wait for the stock to go lower. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by charles schwab. Coming up, the white house has drawn red lines in two key regions. How will they impact stocks . Cramer considers, after the break. Trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the awardwinning trading platforms. Bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. Tailor the platforms to your unique needs with nearly endless customization. And track Market Trends with uptotheminute news and insights. Trade brilliantly with schwab. This is american infrastructure, a prime target for cyberattacks. But the same aipowered security that protects all of google also defends these services for everyone who lives here. Weve got red lines all over the place, and we cant ignore them, as much as i love to never worry about this geopolitical stuff. When our government draws a red line, its because were trying to make sure that whoever we know were warning knows we mean business the white house the drew not one but two red lines. We warned iran if it were, im quoting, proxies to attack u. S. Personnel anywhere, make no mistake, we will defend our people, defend our security swiftly and decisively, quote. To me the words from Antony Blinken put iran on notice they mean that unlike when a young iranian theocracy held our Embassy Staff hostage for 44 days back in 79 and 80s our government will fight to protect our team its a reminder that iran shouldnt get too involved in israels fight against hamas at the same time as john ellis pointed out were drawing a red line against china, this time in defense of the philippines our government renewed a warning to the peoples republic of china not to mess with our long ally in the south china sea. According to our government, that area belongs to the philippines, but china keeps pushing, pushing, pushing, pushing the boundary of what it owns now that they have an actual navy. Now they want to snatch an entire country and taiwan. Even if it makes clear our country would go to war against any arm attack against the philippines. Thats obvious maybe our leaders feel the chinese need a reminder. I dont like these kind of worries more than you do i want to talk about tmobile and alphabet and microsoft, for hempbs sake but i dont think people are paying enough attention. Perhaps because were so focused on the ongoing conflict between israel and gaza. Thats especially true for investors as wall street seems totally oblivious to these new red lines. This is not mad foreign policy, but its a show that what could go right for stocks or wrong you own stocks and my Charitable Trust owns stocks. Were realists observing the world and trying to factor things in, including red lines why . Because you never want to be blindsided by something that could seem obvious later, the fact that we could have a military intervention, something i dont think people are factoring in its difficult i could echo my own thoughts on own gold perhaps by owning like barrett but if you own stocks they could be pressured by anything involving either of these red lines. Maybe sometimes its worth pointing out the perils. Not because im trying to scare you away from the stock market, because you need real conviction to own anything in an environment with so many geopolitical risks i dont think iran or china want to actually fight a war against the United States. But the fact that our government needs to spell this out means that the possibility of something happening is definitely higher than we might like, and we may be actually willing to pull the trigger if those red lines get across i like to say there is always a bull market somewhere, and i promise to try to find it just for you, right here on mad money. Im jim here last call starts now \s right now on last call, one big index hitting a painful milestone. What should you do with your money now . On the brink of war, tensions high. Ian bremmer is here. Sam bankmanfried will take the stand. Well have a preview. The electric slide accelerating plus, who says bipartisanship is gone how cong