Transcripts For CNBC Worldwide Exchange 20140111

Call me at 1800743cnbc. Dow instead declining just eight little points, s p rising. 23 . What an affront, right . Nasdaq climbing. 44 . The answer as i always try to tell you is the very notion of the market has become totally passe. We have whole groups of stocks that go higher on slow growth. Literally scads of them. Because Slower Growth means lower Interest Rates. And they were pushed down so hard today that, you know what, i can see Mortgage Rates thats right the posted Mortgage Rates actually dropping next week for you. That caused the utilities, the Real Estate Investment trust to soar. Seems like i should start my game plan with a simple admonition. Go house hunting this weekend. Im not kidding. So many of you have complained to me that you missed the bottom in Interest Rates. Right now youre getting a momentous and unexpected uturn, from the jobs number. And that means a better rate. No wonder the other Home Builders including pulte went higher. This jobs number is a Home Builders dream come true. Such as the way of wall street that there are always some stocks that weed in any bond scenario. These kinds of signs make me cautious for other portions of the market. And ive been abject to the notion that a Slower Economy coupled with the down tick in chinese growth could cause a recalibration away from the more industrial related stocks ive liked to much. Only the fact that the transports a key index from me hit an alltime high today, keeps us from growing more cautious about cyclical exposure. You know what other stocks go up traditionally in a slowdown squall like we had today . The biotechs. How fitting that most influential biotech conference starts on this week. Okay. Weve got the jpm health care conference. This is a mover in san francisco. This is the best of the best, theyre going to strut their stuff. Now, the big bio techs have stalled of late. The big biotechs not going up, not going down. But the Empirical Data ive seen shows conclusively that these biotechs tend to run after this conference. You know my four faves, right, the four horse men i write about in get rich carefully, which i urge you to buy after goldman took to a sell earlier this week and so far, lets say i seem to be on the righter side of the page. After the rise of intercept, a biotech until this week when a test was running for a Liver Disease showed conclusive results that the studies were stopped so people could switch from the placebo. Intercepts drug, im going to pay close attention to the companies ive never heard of hopefully finding the next intercept. Who wouldnt when this one stock could travel to 445 in one week. Can your paycheck do that . Its now exhibit a in speculating in one security, not only to keep you interested in your own money but also for the potential for a true home run. Its a grand slam. Remember thats how regeneron started out, 5 stock went to 274. And i cant tell you how many people at my book signing last night in new jersey thanked me for sirius, sprint, rite aid. And, hey, try to find your way to the costco tomorrow at noon, get a signed copy of get rich carefully. Can intercept still be bought . I said last night you should take half your capital out of it if you own it, play with the houses money. I can understand how a growth strapped company mick merck or ely lilly might make a tender offer for intercept. Just like pharma cpt. Back when they had no earnings or sales to speak of. These growth challenge dinosaurs could do worse than paying 11 billion for the 8 billion company if the drug turns out as miraculous as it sounds. Gileads stock went up. These stocks, im telling you, lille and merck, if their ceos picked up a phone and bought intercept this weekend, their stocks would go up, too. Not down, but up. Lots of people think the official kickoff for earnings season is not alcoa. Its reported yesterday. But actually with the banks. I think it really does start when jpmorgan and wells fargo Start Talking next tuesday. These two banks pretty much define the financial universe with jpm being the quintessential investment house. Wells fargo is a mortgage machine. And in truth, they all do a little bit of everything. But they do one thing really well. They make a ton of money which is why i like them so much. That will be obscured in the case of jpmorgan and Charitable Trust name by the myriad of lawsuits its involved in. But these days the stock seems to go up. Memo to jamie dimon ceo, settle more lawsuits, write more checks a bit more money out of the shareholders pockets, and make it so one day, please, in the year 2014, all we care about is your quarter. Dont wait until the year 2525, which seems like you are. Wednesday, we hear from my new favorite in the group. We hear from bank of america. And they should be crowing because they had the foresight to settle with the government long ago or otherwise they would be in jpmorgans considerably beat up shoes. I expect to hear something about how the year 2014 will be the dividend of the buyback. The company is now brimming with cash. Thursday, we got a bunch more financials and two im focused on are citigroup and goldman sachs. They seem to be ready for real breakout moves. Both of the stocks have been roaring lately. You know i think 2014 will be the year of the banks. They have to start catching up with the rest of the averages. I believe well get good news from the vast preponderance of them, including capital one, the Credit Card Company that reports later that day after the close. Admittedly, we might have bank fatigue by thursday. Im looking forward to hearing from dow Component Health group United Health group, uhn. Which i believe will declare itself a winner when it reports and people will accept it with acclimation. We also get results from ppg. Now, ppg is Something Special around here because its run by chuck bunch from get rich carefully, the list of ceos whom you want to invest with and weve stuck with bunch forever and it has been right. He has made us money for ages. And i dont think thursday when this chemical Company Reports will be any different. For you sports addicts out there, bunch is to ppg as belichick is to the patriots. Hows that for alliteration . Finally General Electric and morgan stanley, two companies in our news letter that goes with the Charitable Trust, actionsalertplus. Com. These could be terrific quarters for both. I expect outlooks raised. After both earnings reports. We also hear from schlumberger, the oil service king. And here im less certain what the company will have to say. Because oils been coming down. Im going to listen for the outlook and less for the quarter as this companys the best predictor of all things oil out there. Heres the bottom line. We need to see if the weaker jobs report changes the landscape next week. Or whether individual earnings from individual Companies Like these can trump everything, including an economy that suddenly seems to run out of jobs to create. How about jim in michigan, please. Jim . Caller hi, jim, booyah from mt. Pleasant, michigan. Wish i was there right now. Whats going on . Caller my question is, what do you think will be the impact of all the weatherrelated Flight Cancellations weve had recently on Airline Stocks such as jetblue . Well, i have to tell you, we heard some really good news from continental, United Airline remember, im recommending every airline stock. Every single one im recommending. And im not that concerned. Boy, i tell you, i would buy some aal, its lagging the group, deltas had a big move. And honestly, i would double down on american air if it did Say Something bad about the weather. Because, wow, the airplane companies are printing money. Can i go to paul in virginia. Paul . Greetings from the historic Northern Neck of virginia, jim. Yes. It is. Like jefferson, you know. Caller actually George Washington was born here. Oh, yeah. Definitely, im all over that. Whats up . Caller i inherited some texaco stock which is now chevron, and i held on to it through the bankruptcy after pennzoil, and i just think its a good stock to hold on to even though theyre having some problems right now, maybe, or concerns about their quarter. I just wanted to ask you about longterm holding. Paul, i think youre exactly right. I was discussing chevron this morning with someone who works on this show and helps with get rich carefully. We both said the same thing. Chevron is pretty darn good. Not great, not going to shoot the lights out, but its going to deliver quarter after quarter and you have to say, listen, it has these little moves, but overall its pretty darn good. Lousy jobs report. No way around it. Could it change the landscape next week . Or will we start hearing from individual companies that will be in control . You know what, i think earnings are going to triumph. Mad money will be right back. Coming up power of innovation. Sure, there will be bumps in the road, but cramers here to help you win over the long haul. Innovation is coming from the most unlikely of places. Dont miss cramers take on how it could spark a whole new future for your portfolio. And later cracking the code, 2013 was the hottest year for ipos in more than a decade. So whos next to take the public plunge in the new year . From rising players to rising stars, crammer is scanning through the potentials with the president of buzzfeed, all coming up on mad money. 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. In the wake of a seriously disappointing jobs report. The house of pain. I think its worth going over what you can fall back on the moments where the economy may not be as strong as we thought. We were spared a real broadside today. But if the data continues to be weak, were going to have a couple percentage point decline. Its not in sync with the Stronger Economic picture many were operating under coming into this number. And the next time the market gets hit, not if, mind you, but when, i want you to remember that this pullbacks can be terrific buying back opportunities for the big picture long themes i often talk about. The ones that longterm, many years, not many quarters and many days in my new book get rich carefully, i highlight seven different longterm themes that i think are built to last. You can keep going back to the well with these trends every time we get hit because theyre not going away any time soon. Tonight i want to single out one of those themes. The domestic oil and gas renaissance or the holy trinity tech of social, mobile and cloud. If you want to know the rest, you have to pick up a copy of the book. For tonight, let talk lets talk about Stealth Technology stocks. These days everyone believes in the power of technology, but as i tell you, i think we often look for tech in the wrong places. We want to find it in service, cell phone, tablet. These days, the real innovation, innovation is the heart and soul of technology. Its happening where youd least expect it. Hence the idea of stealth Tech Companies that are inventing new products to serve needs that old retro tech simply doesnt hold a candle to. Whats the difference between the tech stocks and stealth tech stocks . Easy. The market has no trouble spotting innovations at traditional Tech Companies, but it does have a lot of trouble recognizing the innovation for more humdrum areas. Areas like apparel, restaurants, consumer packaged goods, and because the market doesnt recognize this innovation creates an unjustified discount in these stocks. They have real innovation fueling their growth. And its why i think you can keep coming back to these stocks even if the market takes a dramatic turn for the worst because i believe they will bounce back first. When i talk about stealth tech, im referring to Companies Using proprietary Technology Used to invent new markets and dominate these markets give them faster growth, expanding margins and higher priced to earnings multiple and higher stock prices. So who falls into this stealth tech category . Whos innovating like crazy but not getting credit for it . How about colgate. This consumer staple play is not a hot bed of innovation, but youd be wrong. It trades at a premium. Why . It uses technology to create products that are generally better than the other guys. Theyre all on a war, its winning it with tech. Thats why despite intense competition, colgate is gaining share in many markets around the globe. The thing about colgate, its innovation is driven by insights the customer gleans from you. Let me just rattle off a few of them. Colgates been winning the toothpaste wars giving people whiter teeth in just a week. Theyve got a new dish washing liquid that cleans not only dishes but the dirtiest instrument in the house, the sponge. Washing away any sort of lingering residue. In colgates pet food division, they sell science diet, thats a wellness food exclusively available from investigatenarve. Different regions have different tastes, different preferences. Which is why they have nine locations around the globe tailored to specific countries. Thats how they manage to grab a 69 share of the brazilian toothpaste market. Whoa who else falls into the stealth tech category . These days perhaps the most Fertile Ground can be found in clothes. The apparel space. Yep, in recent years, the apparel segment has become a hot bed of innovation with new Technology Moving the needle for a number of these companies. And the most aggressive innovator in the category, how about long time cramer fave under armour. Ua. Remember, ua first became a household name by inventing an entirely new category of sportswear. Moisture wicking, thats the first time id ever heard that word with under armour, compression fit apparel made from advanced synthetics that keeps your body ate healthy and comfortable temperature while drying out faster than traditional athletic wear. Underarmour didnt stop there. The chairman and ceo doesnt just mouth platitudes, he devotes a huge amount of time on his quarterly Conference Calls to explaining the companys scientific breakthroughs. Highly unusual behavior for any consumer goods company, you have to admit. Most Conference Calls go through the numbers, but they know the numbers are driven by innovation and wants the shareholders to know it, too. In 2011, under armour launched charged cotton. Its an alternative to Synthetic Fibers used in sports apparel. But this wasnt regular cotton, charged cotton dries five times faster and has the kind of durability you typically associate with itchy polyester. Plank believes this one invention could quadrupled the initial investment and thats huge. How about storm, the water resistant hoodies. Theyve even got a shirt that tracks the motion. On top of Everything Else, theyve got a lightweight running shoe that uses technology to keep your feet dry while also allowing them to flex naturally. Ive tried them. Theyre kind of cool. I wear them at home internally in the gym. And lately, moved into the fitness monitoring space with the product that measures athletic activity. Remember fitbit . We saw them at salesforce. Com. These are the kind of innovations that give this little 9 billion under armour a fighting chance against the colossal 68 billion nike. Without this innovation, i dont think they could take on an entrenched player like that or be featured in so many Sporting Goods stores. Under armour can charge premium prices for the goods and stock can trade at 49 times this years earnings estimates. I bet its also a major reason why notre dame is poised to switch from adidas to underarmor, a big deal because the fighting irish are on tv every football weekend. But even up here, growth stock investors have only just started catching on to the real story that its basically a technology company, they just never expected there could be anything so different about sweat pants, hoodies and sneakers that would move the needle. Its had a vicious bounceback after the most recent quarter dubbed disappointing by people who arent in the know, who didnt realize this is a Technology Franchise thats spending to stay ahead of the competition. You need to consider the stock of rpm, which we just had on yesterday. Besides rustoleum, which we all know. Its developing revolutionary plastic fibers that could be as strong as the steel and rebar, a remarkable accomplishment because its lighter and cheaper. Rpm also has a special tech spray formula. Last but not least, i want you to consider the incredible success of dominos pizza, rallied from 10 and change to over 70 in four years. Thats given you a magnificent over 600 return. Dominos under the leadership of one of my bankable ceos from get rich carefully recognized that the system of ordering pizzas could be replaced by social and cloud applications. The company switched from a verbal telephone based system to a terrific webbased system, to the point where you can actually order from dominos on your facebook page. Me, the girls, we do it constantly. Thats how dominos has been able to pressure their little competitors, which simply dont have the scale to compete technologically. Thats why i believe the stock keeps roaring. Heres the bottom line. If youre worried the market could be about to take a turn for the worst, remember what i tell you in get rich carefully, you can fall back on in moments of weakness, youll have to pick up a copy of the book to find out about the others. Colgate, under armour and more. And if you want a signed copy, stop by and see me tomorrow at costco in long island. Okay . Itll be at noon. What can i say . Im a tease. Linda in new jersey, linda . Caller booyah, jim. Booyah, linda. Caller im calling in reference to darden. On august 5th, i purchased 300 shares of darden and its the first restaurant stock i heard its not going to be doing so well. I was wondering if i should keep it or if i should sell it. It does pay a 4 dividend. I thought it might be good when i was purchasing it, but now i hear that the company is not doing as well as it can be. Well, and its not. Theres a lot of pressure on management to bring up value. Theyre talking about spinning off red lobster, i dont like that plan. I think they either need to sell the company or get some new leadership in there. Theres a lot of ways to win, and i do believe the dividend seems to be safe, im not going to say is safe. I dont think you need to sell it here. But if it goes to 55, i would ring the register. Can we go to texas . Caller hey, jim. This is deepesh from texas a m university. How are you . Caller im fine. How about you . Im doing fine. How can i help . Caller i want to know whats your take from blackberry from trading point of view. Would it be a buy or short sell . Current level is 76. I dont want to short it. Im getting too many positive feedbacks from the new management. Is it nokia at four . No probably nokia at six. But that gave you a little money. Im impressed, the chatters going positive. Maybe its time for me, too. I know it was much lower, but i believe there are good things happening at blackberry. Dont understand estimate the power. Stealth, Technology Stocks are dominating and theyre not getting the credit, which is why they can go higher. After the break, ill try to make you more money. Coming up cracking the code, 2013 was the hottest year for ipos in more than a decade. Whos next to take the public plunge in the new year . From rising crowd players to streaming music stars, cramers scanning through the potentials with a president of buzzfeed. Its a new year. And even if 2014 turns out to be different from 2013, which i think is far from a sure thing. Theres one powerful trend from last year i expect to continue in this one. The red hot ipo market. 2013 was the best year for the ipos since the dot com bubble. I hate to even mention that. Well talk about it though. The average newly public stock giving you a 35 return according to ipo fund manager renaissance capital. Right now its looking like 2014 could be potentially better, can you believe that . Which is why were going off the tape with the president and chief operating officer of buzzfeed. Brilliantly fused social media with journalism and, yes, cracked the code for creating viral content on the web. The last time we spoke to steinberg was back in september, we talked about the twitter ipo. We nailed that as being a hot one. This time, were looking at the upcoming social, mobile and cloudbased deals that could be coming later this year. Cloudbased stores, Companies Like drop box and evernote which does cloudbased note taking and uuber, or air b b, matches up vacations when people want to rent out their properties or square, an Electronic Payment Service lets you use your phone for credit card transactions, not bad. And ive conducted some with that. Then theres glam media, the network of female oriented lifestyle sites. And of course, spotify, the Music Streaming Service that Carl Quintanilla loves so much. Buzzfeed understands the gamechanging technologies better than anybody else out there and theyve got a keen grasp which matters to the social, mobile and cloud plays. So lets check in with john steinberg, president and c. O. O. Of buzzfeed, who also happens to be a cnbc contributor. Welcome back to mad money. Good to be here. Before you sit down, are you johnsteinberg who tweeted on january 2nd im watching mad money, told her jim cramer is the smartest guy in stocks. She says, the button guy, buy, sell, roar. Yeah. Oh. Go ahead. Wheres buy . She wanted me to hit buy. Shell love this. This is for you. Buy, buy, buy lets go back to work. A guys nice enough to do a little tweeting of the show. She watches it every night with me. When i talk about my kids. What they tell me is, look, dad, we netflix. Yes. We amazon. We google. What are we going to do next . I think whats amazing is how few pure play stocks are being traded right now about how we live our lives. Theres yelp, theres zillow. We yelp. Why not Everything Else . Soon were going to uuber for our cars, ever note our notes, these are transformative to how were living our lives. We need people to buy these stocks. When we speak of social, mobile and cloud, we think the ones with all three are the most powerful. If you look in your crystal ball. I know it may not happen in 2014, but who fits that parallel . Cloud is sort of the easiest. I think those are the closest to going public. Box and dropbox are clearly ones that have been talking to bankers. Stop right here. Ive met with dropbox and People Killed me jimcramer on twitter saying you dont even know that dropbox is not taking the enterprise by storm its box. They were educating me. Theyre coming from different sides, right. So box started out more of an enterprise play. Their penetration in the fortune 500 is absolutely enormous. Where the money is. Now theyre trying to go to consumers. Dropbox is more of a consumer play for individuals to store their pictures. Buzzfeed, dropbox for business. Buzzfeed is 100 cloud. We use salesforce, dropbox, ever note, every enterprise in a few years is going to be in the cloud. No reason to have any servers. Lets go back to drop versus box. When i interviewed drew, okay, the ceo. Hes kind of a renegade and reminded me too much of the 1999 2000 period where he seemed antiprofit. But you think that this period is not like that period. No, not like that at all. These are Real Companies with subscription revenue. Most of them operate on freemieum. Which is the term i first heard fred wilson use. These Companies Start out for free. Then when youre hooked, you love it, they say if you want to keep going, keep using, now youve got to pay. Not just closet capitalist but will be a capitalist. Absolutely. We pay for it at buzzfeed. I pay for it personally. Same thing with ever note. I dont know evernote. An application with about 75 million users, its on iphone, android, desk top, i have all of my notes for you here, as well. You can store all of your files and images. And when you hit your quota, for the amount of storage that you use, they start charging you as well. The ceo there, he wants to build a 100year company. He reminds me of benioff. Were going to see a lot of companies in that enterprise cloudbased operations. And mark is always telling me, listen, jim, you have no idea about the revolution happening, its all happening. Now, im getting a lot of heat again i get a lot of heat for things because people are able to go on twitter and call me a knuckle head and i actually respond. Because i am a knucklehead. Yelpification. I think it is one of the most powerful stores in the world. People tell me, jim, its a short squeeze, youre trying to no. This is real. Limited supply. Limited supply. If you want to play the future, if you want to invest in the future right now, how Many Companies out there are publicly traded that how we consume and use media . Its a scarcity. Youve got zillow, open table, only handful of these, right . I think yelp theres too few of them. I think when we see more go public, well have more of a separating of the wheat from the chaff. Although i do like yelp, investors arent able to select as much as they can. Now air b b, is this not part of the new generation where their parents are may be going to be wealthier. Air b b is a concept for people 00 i think dont have a lot of money that want to get some money. And this is part of the whole sharing economy. If im not using something, let me go on the web, harness the crowd and be able to rent out, make a little bit of money on something im not using. Its almost a twist on craigslist. Instead of selling, youre renting out, youve got a spare room, put it on air b b, car sharing services. It is a juggernaut in the leisure and travel space right now. Theyve turned the whole i think theyre doing more rooms than hotel chains are doing. After all this, you still like google . Still love google. I think youtube is a hidden asset. If youtube was public, what would it be worth . 25 billion, 30 billion . They havent turned the spigot on yet. The profit spigot. 60 billion in tv. I watch youtube i watched a youtube concert this morning. This is john steinberg, president and c. O. O. Of buzzfeed and cnbc contributor and the only man i have let punch a button in, i dont know, what, nine years of this show . Means the world. Thank you so much. Thanks so much for coming on the show. Stay with cramer. It is time it is time for the lightning round on cramers mad money. Rapidfire calls, you say the name of the stock, i tell you whether to buy or sell. Play until this sound and then the lightning round is over. Are you ready, skeedaddy . Im going to start with mike, mike, mike in new jersey. Mike . Caller bbbbooyah, whats happening, captain . Thank you. Caller fresh out of the bankruptcy, very quiet, kodak. Could have some big gains on it. What are your thoughts . Yeah, you know, we took a look at it when they rang the bell this week. Ill tell you the truth, i think its too new to make a judgment. I typically dont punt like that. I feel like i couldnt get my arms around the new kodak, but i would invite them on the show. And i said that to the other people at post 9 00, i would like kodak to come on the show. May i go to jacob in new jersey . Jacob . Caller booyah, jim. Shout out to new jersey. Anyway, ive got a question, jim. Im looking to get into the biotechnology industry and wondering about amgen. Its one of my least favorite. They did buy some growth, but by buying a Company Called onyx, they went right smack against celgene. I dont think thats such a good idea. I like gilead, and i like regeneron and im liking some of these new speculative stocks, were going to listen to the conference next week and get new names. Tony in ohio. Tony . Caller big bobcat booyah to ya, jim, from athens. I have a question about isis. I recently bought it about a month ago and i want to get your view take on it. Well, we thought that Crohns Disease formulation was a new take. I think its good. Youre getting it cheap, but i do think its good. Joe in california. Joe . Caller booyah to ya. My stock is xoma. I got a double last year, took some off the table, playing with the house money and still up 15 the last few days, should i buy more . This happened to have been karen cramers favorite back in the 1980s. My problem is this has moved too much. I think your judgments right. Some of these stocks are getting overheated. This one has been around for a long time. I dont know, let me give you a better judgment, i could not believe it surfaced after so many years in the wilderness. Lets go to gerard in georgia. Gerard . Caller booyah. Hey there, jim. I watch the show every day and learn just so much. Thank you. Caller so advance micro devices versus nvidia. Theyre great, now they have more devices this year. The devices like the ps4 thats the problem, amd has had a history of missing the quarters. I told people to buy it in the threes, id rather sell the stock and move into a stock that my Charitable Trust is buying with a yield and that is intel. I think its cheaper. Lets go to adicha in ohio. Caller booyah, jim. Hi. Caller i have a question about halliburton. What do you think about it . Its one of the weaker companies. If you do like halliburton, wait until schlumberger speaks on friday. I think theyre going to speak negatively about the market. Be very careful. And that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. Hi, jim. Yo, whats shaking . Caller im reading your new book get rich carefully. Jim, im going to try to make it to costco this weekend and get a copy of your new book. Im enjoying your book. Holy cow, that was unsolicited. Thank you so much. That was the point of the 440 pages. Lets go to work. It is warm, yes. Why dont we go to Mike Mike Mike in pennsylvania. Hey, jim. Mike. Sorry about the eagles. Yeah. Okay. Whos next . Tonight i want to take a look at a pair of retailers who have come public through incredible enthusiasm in the last three months. The Container Store tcs, the place to go if you need storage, right, organization products, womens shoes fit right into and boots, they fit into these shelves. They swing. Then theres zulilly that offers deals on baby wear for moms. What do you think . I think this is a terrific time to be in the uniform rental business. The companies that rent all sorts of uniforms to other firms. More jobs equals more needs for uniforms. Get a little more room. Oh, man. Oh, nasty. Yeah, can we order like a bigger one . Good job, kyle. No two ways about it, we got a number, a disastrous unemployment number from the Labor Department this morning. It was terrible. 74,000 gain in payrolls . I mean, even after discounting whatever you may think is right for Holiday Retail sales, this is just unbelievably disappointing. Its also out of sync with pretty much everything weve been hearing, including the adp unemployment report which came out yesterday which showed 238,000 jobs created last month. Throw away the number, do something to make it look better. Or maybe the survey wasnt accurate at all. My view, i dont care. These numbers do matter because the bond market said they do and Interest Rates pulled back pretty dramatically today with a yield on the tenyear treasury falling from 3 down to 2. 86 . The jobs number wasnt pertinent. Believe me, you wouldnt have a big decline in Interest Rates levels not seen for a month. More important, this number matters tremendously in the stock market, my word for get rich carefully, i spend a tremendous amount of time of analyzing the impact on the market versus other indicators. And i have to tell you that you can throw out every other data point, retail sales, durable goods, housing. Doesnt matter. The only stat with Lasting Impact is the Labor Department. Monthly payroll report like we got this morning. Its the job creation number that matters, not the household survey, which is heavy skewed by people who drop out of the labor market for whatever reason. While were at it, my data shows you should never put any stock again in this adp number reported yesterday. It has proven worthless as a predictor of next days report making it downright irrelevant. It doesnt correlate so stop emphasizing. This is the number that matters. What does the number mean . First, it signals a rotation, the cyclicals and banks which need higher Interest Rates, the industrials because rising rates not the falling rates we got today are a sign of robust Business Activity and the banks because allowed them to generate bigger profits. And the bank stocks were weaker today. The money flowing out of these groups will head to the classic growth stocks, something thats been happening underneath i told you about earlier and was accentuated all day today as stocks tend to be more pressured than you think. I believe this will be intermittent. For the next three weeks, the earnings will be in control. Plus, you need not one, but two backtoback employment numbers to signify a real trend. Another weak one and look out. Still, lousy jobs figure makes sentence when you consider all the weak innocence retail, remember, it cant be all weatherrelated. As well as the decline in the index they use to monitor the chinese market. This adds up to a mixed bag where bulls have to hope bad news is good news at least for the higher yielding stocks, the utilities, anything with a yield over 3 , which pretty much describes the cohort that had been pounded over the last month or two but really sprung back to life today. In the meantime, theres no way to call it good news for the industrials, except for those connected to the domestic Housing Market which will benefit from the lower Mortgage Rates and i actually believe its so powerful we could start seeing it next week. All in all, a larry david style curb your enthusiasm number and thats what im doing. And until i see something that tells me definitively that things are getting better, not worse, since december, im sorry to say, i dont have any indication that that will be the case any time soon. Mad moneys back after the break. Before we get to your tweets, we have to take some homework off the table, its been piling up. First up, back on december 2nd, i was asked about united therapeutics, uthr, i said id get back to her. This is an emerging firm that is actually profitable, specializing in drugs for hypertension, particularly life threatening type of high blood pressure. United therapeutics spiked hard last month. The fda approved its oral treatment earlier than expected. There are a lot of naysayers out there wringing their hands about potential competition, i like the companys prospects. However, if you owned the stock before the monster move higher, maybe take a little money off the table. And if you think of buying it, take a step back. Talking about anik, had a monster run last year, up nearly 300 . Developing products that repair all kinds of tissue based on a chemical that acts as your bodys shock absorber. The company is a post for orthobio logics, dermal and even surgical uses. Anika is super speculative and hardly any coverage on wall street, but the company is profitable and trades at 24 times this years estimates which is cheap given the 30 growth rate. Its a risky stock. So it is absolutely not for the faint of heart. Although after watching another 500 million stock, give or take a few hundred million, intercept went up 370 points over a couple of days. Anika is intriguing, but i give it my blessing only for spec, okay, and only if you use limit orders, wait for weakness if you think of buying, always the best way. Guy in georgia wanted to know about rhp. This is a niche Real Estate Investment trust that owns four convention hotels, run under the Gaylord Hotels brands, like the vast majority of reits, got crushed last year as investors were driven away from alternative stocks. On top of that, the Company Lowers numbers right before the big Week Convention last summer, ouch, bad news, bad timing. Since october, theyve been bouncing back after reporting better numbers, i could see why this stock would benefit if we start to see stronger convention bookings and lower Interest Rates diminishing the competition. Honestly, they do only own four hotels. Id much rather go with best of breed starwood or wyndham worldwide or hilton. A stock that was shouted at me last night after my book signing. Why not come to the wesbury long island costco tomorrow at noon to see what i have to say about your stock after i sign your copy of get rich carefully. Last but not least, on december 12th, utah in new york, cvlt, this is a provider of data and Information Management software that got pole axed in the Fourth Quarter after a slew of negative data points. Even after the flashing, its far from cheap, sells for 35 times earnings. If the company can put up a couple of decent quarters, maybe ill change my mind. Not until then, now your tweets. Okay. Lets start with gary bin nyc. Im buying lunch tomorrow for the signing, what you want . Now were talking about going to costco at 12 00. Gary, dont because im telling you, i am not going to eat anything tonight or tomorrow morning because the samples at this wesbury long island are the best. And if they have that crab dip, youre not going to have to fight over those crackers. emilykingrocks says what do you think of whole foods . The whole foods recent nosedive. There was a reiteration today. A lot of people dont understand how they trade. They talked about cannibalization, competition, then the stock got crushed. Stock gets crushed, buy. Im not varying, i dont think fareway or sprouts can hold a candle to whole foods. Up next, he asks, jimmy, can i feel good about buying five shares of goog to start the year . Yes, one of the things i try to teach and talk about in my book signings is the notion of buying a large dollar stock, not capitalization, but a dollar stock and buying a couple of shares. I think googles perfect. Its the largest position in my Charitable Trust which you can follow along actionsalertplus. Com. Now a tweet from bruce said simon says who wins the nfl games this weekend . I like the broncos, okay. I like the niners, i like the pats, and i like those beasts with the 12th, 13th, and 14th and 15th man the seahawks. Oh, i wanted to i want to sell ddd no, i was going to say take profits. Stick with cramer. All right. I hope to see as many of you as possible tomorrow at costco, wesbury, long island, at noon so i can sign your copy, your own personal copy of get rich carefully. We had a lot of fun last night at barnes noble, id like to see you at costco. Theres always a bull market somewhere, i promise to find it for you here on mad money. Im jim cramer. And ill see you monday we are building a Strong Financial foundation for 2014. What you need to know to get your money right this year. Also. Getting out of the military is a big step, and i dont feel quite prepared for it because the debt, obviously. Both of you need to stop using the credit cards. You need to start saying no to the kids. And you ask me, can i afford it . To celebrate our 10th anniversary, my husband and i want to go on a nineday guided tour of japan for 14,000. Whoa. That is a lot of money