Transcripts For KWWL Mad Money 20161201

And thats whats driving the stocks of so many Big Industrial Companies Higher even as others sell off in a bizarre confluence of good and bad news thats mirrored in todays action with the dow struggling to stay positive, up just two points. S p dipping 0. 26 and the nasdaq getting crushed, down 1. 05 . In the last 24 hours, president elect trump has announced a bunch of probusiness cabinet picks while to spare jobs that would otherwise be lost to mexico. The result is that the markets anointing a whole new group of stocks, rotating into them while slaughtering others. So i want to explain why thats happening and how you can profit from it. So lets trace the narrative. First the picks trump announced today, Steve Mnuchin as treasury secretary, wilbur ross as commerce secretary, sent a huge message. People who are probusiness and thats who this administration is going to be listening to. Progrowth, projobs. Now, close viewers of this network know that wilbur ross is a pragmatic, crafty business person who knows how to invest well and place bets most importantly on industries that could thrive even as others have given up on them. Im thinking about things like steel, like coal, like textiles. Trump wants to revive those kinds of industries and bring back and create jobs in them. Now, maybe he can. Maybe he cant. But if theres even a possibility, then ross will figure it out. I know ross. Hes smart. Hes clever. Hes pragmatic to a fault. I love that in business people. Im not saying that wilbur ross is the reincarnation of engine charlie wilson, the head of general motors, who famously when he was nominated for secretary of defense by president eisenhower in 1953 said, what was good for the country was good for g. M. And vice versa. What we care about on the show. How about Steve Mnuchin for treasury . Ive met him in passing. Cant say i know him although i worked for his dad, bob mnuchin, whom we affectionately called coach when he ruled that trading desk at Goldman Sachs. Coach retired at the top of his game, did some great things in the art world. I learned a ton from him. I have to believe steve learned a heck of a lot more than any of us from coach, which would make him as savvy about the markets as they come. He spent almost two decades at goldman and then invested correctly in the savings and loan market at the absolute bottom. And a fantastic investor. Good for stocks. I stress these credentials because these are the kind of people whom president obama would never appoint to cabinet positions. To him, theyre probably wall street fat cats. He may not even know who they are. But to the stock market, theyre members of the traditional Business Establishment who want to make the economy grow and want to see profits grow. With these picks, trump is sending a huge signal. Faster, to take back jobs, including manufacturing jobs, and have the government promote business and the causes of business. Good for the stock market. Thats their mission. It was not president obamas mission. Its okay. Again, its not political commentary. Obviously whats good for business is not always good for the rest of america. But obama seems to believe business can fend for itself. Trump wants to embrace business. Good news for stocks. When mnuchin and ross came on air this morning, s over by what they had to say. They talked about cutting corporate taxes, creating jobs, giving the middle class tax breaks but not the rich. Thats going to spur growth. I cant emphasize enough these two picks are about growing the pie so everyone does better. You may think thats impossible. You think its too cynical. Listen, if you even for a moment believe that it could happen, then i need to know i think ross and mnuchin are savvy enough to get it done. Theyre getitdone guys. Theyre practical. And by the way, lets make it levelheaded, highroaders. Finally, theres trumps gambit to save 1,000 jobs from going to mexico by negotiating with the head of United Technologies, greg hayes, to keep carrier plants open in indiana that the company planned to close in order to save money. Trump called hayes, basically said it would be a real good idea for the company to keep those jobs in indiana, and if hayes complied, then he would do a lot to help United Technologies and all other businesses by repatriating overseas dollars, using lower ta that united tech has in other countries. Trump pretty much got what he wanted, and about half the jobs will stay here. There were small incentives for United Technologies, but the gist of it is that utx simply wont make as much money now. But its also less at risk of losing the 6 billion in federal contract business it has. Is this good for stocks . No. Will it be a warning to other businesses that they should think twice before they move their operations offshore . Yes. Workers, not shareholders. But trump figures hes given enough to shareholders that he can lean on business to save jobs. Look, he could have just slapped tariffs on stuff. Instead he negotiated with hayes, admittedly with the upper hand. Kind of the way trump does it. But he played the hand for workers, not shareholders. Expand the pie. Okay. If we have a progrowth president who is making progrowth cabinet picks, why didnt stock prices soar . A couple of reasons. First, opec made a deal that raised the price of oil dramatically. The stock market likes it when the increase in demand. They dont like it if its cuts in supply. So oil users lost even as the Oil Companies gained, especially in the domestic producers with holdings in the Permian Basin in texas, which is extremely profitable with crude right here at 49, up an astounding 10 in one day. In addition to short sellers buying back their oil shorts, investors clamored for anything oil and clearly had to make sales away from oil to raise all that money to buy those oils. Id wait for the oil stocks to cool off, people. Ive seen people chase them like they did when iraq invaded kuwait. Ends in three days. Youll get hurt. Second, a progrowth agenda is great for the stocks of companies that need a Strong Economy to do well. Thats the basic industrials. Thats the transports. Thats the banks, which will continue to rally if mnuchin gets his way. I continue to like the bank stocks. I think they have more upside. However, a progrowth agenda doesnt mean much at all for companies that already have a lot of growth, namely the tech stocor their growth accelerate despite what mnuchin or ross or trump will do, the stocks known as the defensives, which you buy when growth is slowing. So what doesnt do well . Health care, drugs, foods, you name it. Their stocks arent going to rally on statements about revitalizing american manufacturing. I think there will be bargains in the group, in all these groups, because theyre getting crushed too hard. As is almost always the case in this market, which exaggerates every single move, and thats where you get to make some money. All right. Lets put in language today that youll really understand. Today the oil fang is biting the heck out of the tech fang. Thats right. Remember, i told you about diamondback energy, one of the Fastest Growing Oil Companies because its got big permian exposure . That stock jumped more than 12 or 13 while facebook, amazon, netflix, and google, fang, now alphabet, were laid to was dichotomy. Again, these moves are way over the top. Energy is too strong although the direction is right. Tech is too weak although i can see why it would sell off. The soft goods, case by case. And the banks . With mnuchin and ross in there, i think the windfall for the banks continues. More on that later in the show. Put it all together, and we could have a down day because the industries that directly benefit from the trump growth agenda really dont make up as much as they used to of the s p 500 or the nasdaq or even dont need a Strong Economy to thrive kind of really well, theres just a lot more of them than we thought. But give it a couple of days to sort out, and i think youll find that the news is better for all companies. There just isnt enough money coming in on a given day to make everything rally at once. The bottom line . This is another rotation in a long line of rotations that will run its course before another one begins anew. Not business as usual, though. But probusiness for certain. Hayes. Caller jim, how are you . Im doing good. How about you . Caller good. Jesse livermore booyahs from dallas, texas. The great plunger. What are you thinking . Caller i am thinking on this dustup we saw in the media yesterday on the sec and tesla, specifically the sec was concerned with the use and presentation of nongap measures in teslas august earnings and stated and i quote individually tailored later the sec went back to tesla and stated and i quote based on your request, it is not clear whether you intend to revive your disclosure as requested. Given that tesla has just taken on onerous debt from the solar city merger, they have recurring cash flow issues, they are nonprofitable, and now we have a situation that smacks of accounting irregularities, is this an automatic sell . All right. Heres the problem. People love the car. They love the car, they buy the stock. You cant break that linkage. That stock does not trade on the fundamentals. If it did, everything you said is true, and it would be much lower. It trades on an ethos. Its a cult stock. I dont recommend or bet against cult stocks. Colin in wyoming, colin. Caller hi, jim. Booyah from 5,000 feet up in wyomings rocky mountains. Caller having a lovely autumn fall. Lovely weather. My question is about making a quick trade around decembers fed meeting. For a quick trade only, should i buy a bank stock such as bank of america or maybe Something Else . Well, bank of america has had a major move. Im not going to be against owning bank of america, but today it was up the most. I think you can get that bank stock. Buy some now and then hope it pulls back a little. Behind the market that i think well look at it and say, oh, 21, 19, it didnt matter. It was about to have a major run, and i think thats true. Its anything but business as usual today. Its probusiness. The trump cabinet selections are sending a signal to wall street that he wants the economy to grow much faster than we think is possible. I think that could continue to fuel a rally, but it will be a rotational rally, one at a time. On mad tonight, from calvin to tommy to vanheusen, this around the globe. But can pvh remain the star of the runway as we enter the Holiday Season . Ive got the exclusive with the ceo. Then opec reached a deal to cut Oil Production today, and crude jumped 10 on the news. Ill tell you what the decision means for Oil Companies youre invested in here and at home. By the way, speaking of oil, im going to sit down with the ceo of Marathon Petroleum and see how the news could impact his stock. Stick with cramer. Announcer dont miss a second of mad money. Follow jimcramer oner 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. Why are you checking your credit score . Hey hey ahhhh. Charades . Yeah, let me check my score too. Try credit karma. Its free. Check out credit karma today. Credit karma. Give yourself some credit. Because im a woman. Do you think im gonna crack under pressure ty. Made with flexfoam. Absorbs 10x its weight. Rewrite the rules. Always. I love my shop, but my back pain was making it hard to sleep and open up on time. Then i found aleve pm. The only one to combine a sleep aid plus the 12 hour pain relieving strength of aleve. Now im back. Aleve pm for a better am. Mmm. I cant believe its so delicious. I cant believe its made with real, simple ingredients. I cant believe were on a whale. I cant believe my role isnt bigger. Oh, its real. Real ingredients. Unbelievable taste. Go ahead, enjoy. [burke] hot dog. Seen it. Covered it. We know a thing or two because weve seen a thing or two. Real ingredients. Unbelievable taste. What are we supposed to make of the latest quarter from pvh, the apparel titan behind calvin klein and Tommy Hilfiger . Heres a company that seemed to be making a really strong comeback. The stock is up 40 for the year in the wake of several strong quarters. But as we enter the Holiday Season, some of the old negative themes have come back creeping into the picture. Strong dollar, weakness for many mallbased retailers maybe, which brings me to tonight. After the close, pvh reported a substantially better than expected quarter, but they gave guidance that i found a little the company delivered a 20cent earnings beat off a 2. 40 basis, slightly higher than expected revenue up 3. 7 yearoveryear. The beat was fueled by the strength of their calvin klein brand, particularly in europe and china. However, pvhs sales and earnings forecast for the next quarter came in below what the analysts were looking for. Wall street cares about the future as much as the past, so weve got to figure out what is going on. Is pvh really being conservative after a very good quarter . Maybe we should be worried. Lets check in with manny chirico, chairman and ceo of pvh, to learn more about the quarter and where his company is headed. Mr. Chirico, welcome back to mad money. Manny, i dont know. This was one of the biggest beats in all of the years youve been coming on. And yet i detect from the guidance that you almost want to say to people, dont get ahead of yourselves. But first lets talk. This was an amazing quarter, wasnt it . Yeah, we had a very strong quarter, particularly internationally. Right. Both in europe and in asia, our international comps for calvin klein were up double digits, as well for Tommy Hilfiger. So feel really strongly about the business. In europe in calvin is up over 20 , and the Tommy Hilfiger business is up 8 . Big business. To me, this was the quarter where the warnaco acquisition you got a little sidetracked because warnaco wasnt as strong as you kind of hoped when you got it. But this was the quarter that showed that this may be the real driver for pvh. I think thats right, but i would say the whole year has been a real driver. Through the whole nine months, weve been substantially beating our guidance and i guess through the middle of last year. So business has been surprisingly strong, particularly internationally, and i think were being cautiously conservative about how the Holiday Season is coming together. But, you know, based on black friday, we feel pretty good about business. Thats what i want to go into. Were in a fluid situation in this country. I detect from the merchants and ceos that i speak to that literally there has been postelection, whether its happening, that there is a bit more spend, a bit more goout. Is this just anecdotal on my part, or are you seeing in the statistics you have . No. Were seeing it in our business directly. Lets talk about november. The month of november, the week before the election, the week after, business was just it was tough in north america. All of a sudden, the last two weeks, as we started to go into black friday and right after, weve seen in our Retail Business a significant improvement in trends. Big Holiday Season in front of us. As we always are, were being conservative as were projecting the year and the balance of this quarter. So well see how it is. Trends right now, the last two weeks are running ahead of plan and margins are running significantly ahead of plan. If thats the case, im sensing that a macys, a jcpenney, a kohls are not having to discount. Theyre able to actually have a good Holiday Season so far. I dont want to talk about ill say my business in those channels of distribution is very strong. Terry lundgren was on, so im just quoting him. He was on cnbc on black friday. He said Tommy Hilfiger was on fire. So we feel really good about how that business is proceeding. But that is a nice change because that is one of the areas i wanted to ask you about. The north american Tommy Hilfiger, you werent that happy with. Look, our wholesale businesses in departments is very strong. Our Retail Businesses for the first nine months of the year has been tough. Weve talked about the international tourists. Weve talked about the dollar causing some issues there, and that trend continued in the Third Quarter despite the big beat we had. We started to see, as we got into the second half of november and into and as were going to go now into early december, there seems to be some momentum. I think were also starting to lap some of the dollar strengthening that happened this time last year where we were up against a much stronger weaker dollar prior to that. So, again, were feeling good this is the time to go running in. No. Theres a lot of noise out there, be it the election, what the ramifications of that is. I know wall street seems to be celebrating the election, which is great. But mr. Trumps got to take over. Theres a lot of questions about exactly what it means for trade and what it means for the dollar going forward. All those things just cause us to be cautious in our projections. You dont have to worry about trump ties coming back. There you go. Europe and asia had been points of, at times, pain, particularly europe. Are you surprised that europe is as strong as it is given what we read about over there . I think two things. I think europeans are staying in the European Market given where the currencies are. So i mean the uk, i know brexit, everybody is nervous about what it means going forward. But right now business couldnt be better in the uk. Weakening of that currency. The euro is buying more in that market, so more europeans and more americans are in that market. Theres more shopping going on in that market, and we are big beneficiaries. And china is a win, isnt it . Yeah. Well, two things for us. Our calvin business, which weve been running now for the last four years directly, and now just taking over the tommy business in the Second Quarter of this year, that business has really been posting strong growth, continues to be our Fastest Growing market, highest company. So thats going to be an area of strength as we go forward. Online, amazon . Continues to be a small piece of business as a percentage of the total. Fastest growing and starting to become nicely profitable. How about that surprise van heusen . Say that again. Van heusen. Our van heusen brand, in that midtier channel with kohls in particular and jcpenney has been very, very strong. Innovation for the dress shirt, and its just you know, its the number one seller in that channel. Theres a lot of consolidation, talk about more apparel coming together. There are too many players. Any thoughts on it . Look, acquisitions are a big part of our growth. You talk about calvin, tommy, warnaco, and i think in the future, it will be. I think in the next 6 to 12 months, i think our focus will be on if there is acquisitions, it will tend to be more in the reacquiring some of the license businesses with calvin and tommy. And then, look, given the fact that weve paid off about a billion and a half dollars in debt cash flow machine. It is a cash flow machine, and i think we will be looking for acquisitions. Excellent. Lets leave it at that. Manny chirico, chairman and ceo of pvh corp. Monster beat quarter. I think conservative on the guidance. Mad money is back after the break. Announcer coming up, an opec production agreement is a done deal. So what does that mean for cramer sits down with the ceo of theyre monday petroleum. What does it mean for a refiner to have a president that really very specifically is prooil and gas . Announcer one of the nations largest movers of fuel when mad money returns. Whoa, this is awful, try it. Oh no, that looks gross what is that . You gotta try it, its terrible. I dont wanna try it if its terrible. Its like mango chutney and burnt hair. Just try it guys, i think we should hurry up. If you taste something bad, you want someone else to try it. Its what you do. I cant get the taste out of my mouth if you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Shhh dog, dog, dog. Ve been on im bushed my feel alyea me too. Excuse me. Coming through ride the gel wave of comfort with dr. Scholls massaging gel insoles. Theyre proven to give you comfort. He has. achoo you can pick up the flu from surfaces for up to 48 hours. Its like having a sick Family Member in your home. But lysol kills 99. 9 of germs including 8 cold and flu viruses. To help protect your home whenever i try to grow out my hair, strands always break off. But pantene is making my hair practically unbreakable. The prov formula makes every inch stronger. So i can love my hair longer. Short squeeze of a lifetime . I have to admit that this Production Cut deal was about as unexpected as you could get. Think about the arc of it. Last week opec ministers leaked there was no deal. Nobody would agree to cutbacks and the best we might hope for was a freeze at really high levels. That caused oil to take its usual dive to the low 40s along with lots of chatter that if there was no deal, then 30 beckoned. Of course that made the usual traders go heavily short, betting that any deal would be no deal and oil would fall because there is, as we all know, a real glut of oil out there. Even as early as this week, we heard there were implacable forces at work. The iranians couldnt agree with saudis. The wouldnt agree with iraqis, who wouldnt agree with the indonesians, who actually may have suspended their opec membership entirely because of the agreement. But this morning we learned that the saudis are willing to cut almost 500,000 barrels of production a day, and that alone with a couple of hundred thousand barrels cut from other everyone to the table. Now, just so we understand, there really isnt anything in this deal that seems to curtail all the drilling that iran and iraq are doing right now or might do. That might mean that the 1. 2 million barrel Production Cut could be chimerical. But thats not the real issue here. The real issue is that the saudis control opec. Why . Because they have the unique ability to actually freely raise or lower their output. Theyre that rich, and they have that much oil unlike everybody else in the cartel. Going into the meeting, the saudis producing as often as theyre simply going back to where they were last year, maybe a little more. However, you can do the math. If the saudis can boost the price of oil by more than 8 today simply by making a 5 cut in production like the agreement has them do, theyll do fine. Selling slightly more than 10 Million Barrels a day at nearly 50 is pretty much a push versus selling 11 Million Barrels at 45. And it is much better, more importantly, than selling 11 million at 40, where oil might have been headed without this agreement. In fact, its pretty much a nobrainer because if thhe pump more than they are, then the algebra works. Oil stays higher for now. But theres another aspect opec cant count on. Thats the u. S. The saudis have created an umbrella under which the u. S. Producers with oil thats profitable under 50 bucks can really turn on their spigots, take up the slack. Not necessarily to the point of driving crude back down, especially if theres a pickup in the global economy. But certainly to the point where production estimates, what the analysts follow, are too low for our american independents. Producers with good exposure to the Permian Basin, which can make money at half this price, or the oklahoma area known as scoop, which is in some parts equally profitable. Hence how you can see such exaggerated gains in an eog or pioneer or cimarex. Theyve made huge investments when things were low and acquisitions of the best parts of texas while oil was way down. Now theyre prepared to reap the harvest of this saudi umbrella. I still like those stocks, but i would now wait for a better entry point. They ran too much in one day. Why were they shorting oil so heavily . Heres my bottom line. I think there was enough chatter about opec failing to reach a deal coming from all directions that the risk reward on the short side seemed like a much better bet. It turns out it wasnt. Yet the smart money got played, and they got it wrong. The true believers . They got it right. Gary in michigan, gary. Caller dr. Jim. Yeah. Caller i just bought a little bit of sxl, a midstream i figure with commitment to energy development, that natural gas pipeline should be a relatively conservative play with a good yield. The problem is, jimmy, these are hard to figure out. These companies are owned by generational Billionaire Oil guys. They all know each other, and theyve all got bits and pieces of everybodys company. Its like a big spider web. I want to know what do you think of sxl . What you describe is why i dont trust that one. I just dont. Arms around the ownership, and it seems like every other day theres deals involving them. I wish you had done magellan midstream. Much smaller yield, but much more conservative. Roland in new york, roland. Caller hey, big new york booyahs, jim. Thank you. Caller given the president elects policies on coal, Natural Resources and trade, whats your opinion on Csx Corporation . I think all the rails do trump than they did under obama. Remember, coal is really a factor right now about how high natural gas goes in price. Were exporting a lot of natural gas. Natural gas goes up, then coal becomes more interesting. In general, theres going to be export, a little more growth activity. Csx is a winner. I like all the rails. I like union pacific, and i like Norfolk Southern, and ive been out front in Norfolk Southern when we had jim squires on recently. Alex in california, alex. Caller hi, jim. Booyah from the great state of california. Fantastic. Caller my name is alex. Ive been a longtime listener and appreciate all the advice you give. Thank you. Caller im calling about anadarko petroleum. Considering the sudden rise in oil and the rally anadarko has had, the trend channel going back to 2008 shows some longterm resistance. Would you consider this a buy . First, alex, thank you for the fine comments. What i like to say is i like anadarko, okay . Its up nine. I dont recommend people buy stocks up nine. I just say we missed it. Not my style. Ive been hurt too much buying stocks up nine, not made enough money buying stocks up nine. The smart money looked pretty stupid today after todays opec Production Cut. Thats what lit a fire underneath many of the independent american producers with prime acreage. Theres much more mad money ahead. Elliott management is urging marathon pete to break out some of its value. Is the company listening . Ive got the exclusive with the ceo. Then today saw two huge president elect picks, and they made waves across the market. What you need to know is just ahead. Plus a fastfire edition of the lightning round. We know the news that this opec Production Cut is terrific for oil producers. What about the refiners . Typically a spike in the price of crude hurts the refiners, at least shortterm because refining is a margins game. Its all about the difference between the price of oil and the price of gasoline. But there was one company in this group that actually saw its stock rally today, and that is Marathon Petroleum, the Third Largest refiner in america. Its the nations Second Largest Convenience store chain. 2,770 locations across 22 states. Its been an eventful time for marathon pete. At the end of october, they reported some weaker than expected numbers, but management announced they were dropping down some of their pipeline assets to mplx thats the companys Master Limited Partnership Subsidiary and even contemplating the sale of mplx altogether. Then last week we learned that Elliott Management had taken a 4 stake in Marathon Petroleum. They proposed several more steps to unlock value, which they say could send the stock up 60 to 80 . In response, the stock spiked nearly 9 that same day, 43 up to 47. I think its this activist involvement and the possibility the company could potentially take a number of steps to unlock value, something theyve always been amenable to, that allowed the stock to hang in there today while the other big refiners were hit on the chin. Lets take a closer look with gary heminger, the chairman, president and ceo of marathan pete, to get a better sense of whats happening and where his company is headed. Mr. Heminger, welcome back to mad money. Good to see you, sir. Thanks for having me, jim. One of the things that is funny about these activists is they tend to pick on the good ones because they know therefore theyre going to win either way. You have done more to bring out value than anyone in your class, and the original split also brought out a lot of value, created double the value. Do you need to do anything more than the steps that you have said that youll do . Well, jim, in fact you recall ive been on your show right after we split from marathon oil and then when we, in october of 2012, when we did the ipo for lx so weve done a lot to be able to grow value. Every time the stock has gone higher. Every time it has. Youve made our viewers a lot of money. In fact, i take you back to since 2011, splitting from marathon, were up 140 in total shareholder returns. Extraordinary. Everyone needs to know much better than anyone else in your segment. Thank you. What this reflects is our board has a very deep knowledge of how to grow value, and we review a lot of opportunities with the and all of these opportunities that we continue to review, you know, its evident and i agree with elliott, and i visit with many shareholders all the time, that theres a tremendous value. And we got caught up in the downturn of the commodity price the second half of last year that hurt refiners. And then mplx had just purchased markwest, and we got caught up in the downturn of the drill a bit. So theyre very involved in the in the gathering and processing and out at the production regions. Capital, and weve seen the yield improve over the summer. I think were in a good place right now. We were always, as you know, huge fans of yours and of markwest, so its a great combination. How about this deal today . Does this deal stick . Weve all been so suspicious. Well, in fact, back early this year, we talked about this, and i was on a panel at a conference. We talked about where oil prices would be, and i stated at that for a number of reasons. I travel to the middle east often, and you just look at the economies, and you look at the requirements there. Right. And you look at the requirements here domestically, what the producer, the driller you look at all the drillers today, and the Service Companies are up significantly because its a good position that theyre going to get back in and back to work. So does it stick . You know, its down to probably a 1. 2 million barrel reduction is wre its where they needed to be. We believe by the end of the first half that the Global Supply of crude can be in balance. It might even be a little bit of a supply deficit as we go into the second half of the year. So i believe it has a chance to stick as long as, you know, the technical agreements that are going to be put together here over the next couple of weeks really come into where they stated they would be. Your sister company, mro, is acting like it is. Its up 20 today. Right, they are. These are separate companies, but everybody benefits if they both go up. They do. Im still a big shareholder in marathon oil. Now, new president. Yes. To say that hes profossil fuel is an understatement. What does it mean for a refiner to have a president that very specifically is prooil and gas . I think first of all, the pipeline permits and the issues weve had across the country with the Keystone Pipeline and now the Dakota Access pipeline, which we are proed pipeline, and its stymied right now to finish the construction. Im very confident the president elect is very intelligent. Hes put himself surrounding himself with very intelligent people that understand the economics of the oil and gas industry. So im confident were going to get the permits going. The second thing that really needs to be handled with the new administration is this renewable fuel standard. It just does not work. Rins are now trading almost at a dollar. Subsidy that didnt work. Its really a hidden tax to the consumer. It doesnt work, and its been very detrimental to all of the refiners. Theres really nobody who is making any money off of rins, but the consumer is paying this high cost. When i look at speedway, i have to admit it does seem undervalued, but theres not much of you can do. You want to have both sides, right . Well, jim, as i talked with you a while right after us acquiring the ss executing and bringing those in. Were way ahead of schedule on capturing the synergies. But speedway is very important to the integration of mpc, the integration back to the refinery, integration into the mlp. If you really think about we sell 6 billion gallons a year through speedway. For the most part, all that volume has gone through all of our pipelines, our terminals, our docks, our barges that are all in the mlp. That we control that enterprise. But i agree with you were not getting the full value in our share price. But i also believe we have some alternatives that we continue to work on that is going to continue to increase that price. All right. One last question just about the general ethos. We do have under obama, its almost as if i feel like the protest against pipelines, lets just say that maybe the president actually favored them. Maybe the protests are something that an antifossil fuel guy would certainly almost think is good or say is good. What can trump do about a local protest . I mean if in the end the president is propipeline, how does that stop a dakota protest . Well, the president was and i believe the Obama Administration was propipeline. They knew the pipelines were safer than other forms. They certainly know that. You know, the keystone was one political view. The Dakota Access pipeline, this really came to a head right right. So what has happened is they really punted this to the next administration. Right. But i believe, you know, the army corps had approved the permit, had approved the easements. We are a company i had this question in a town hall meeting. We are a company. We certainly will not do anything that is environmentally unfriendly, nor will we do anything to violate secret burial grounds. Nor will etp or philips, who are parties to this pipeline either. Si i have very high confidence this is going to get resolved early in the new administration. Excellent. Lets leave it at that. Thats gary heminger, the president , chairman, and ceo of Marathon Petroleum corp. By far, the most undervalued in the entire group and the one i recommend constantly. Stick with cramer. . Harrys meeting clients from far away. . . But they only see his wrinkles. . . If only harry used some bounce, to dry. . . Yeah. . . He would be lesswrinkly and winning at life. . . My cold medicines wearing off. That stuff only lasts a few hours. Or, take mucinex. One pill fights congestion for 12 hours. Guess i wont be seeing you for a while. Why take medicines that only last 4 hours, lasts 12 hours . Lets end this. Ve been on im bushed my feel alyea me too. Excuse me. Coming through ride the gel wave of comfort with dr. Scholls massaging gel insoles. Theyre proven to give you comfort. Which helps you feel more energized. All day long. It is time it is time for the lightning round thats where i take your calls rapid fire. You tell me the stock. I tell you to buy, buy, buy or sell, sell, sell. Well play this sound [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning round on cramers mad money. Lets start with richard in california, richard. Caller mr. Cramer, sir, this i grow my Retirement Funds off your very good information. Thank you. Caller cant thank you. Booyah to ya. Booyah. Caller one big stock ive been watching for a while, waiting to pull the trigger or not. Acia. We suggested we do this one, and it went all the way up. We said when they did that last quarter, we were not happy with it because they did have a contract that we thought would have been big that didnt happen. Longterm story, good. Short term, not that good. David in pennsylvania, david. Caller hello, jim. Thank you for taking my call. I bought into National Flavors and fragrances at 126. They missed the quarter. They absolutely missed the quarter. This is a company that has a long history. I would be a buyer of this company after they report the next quarter. I want to see what it is because this quarter was a not good quarter. Lets go to debbie in new jersey, debbie. Caller hey, mr. Cramer. How are you . Good. Ulta salon. Were going to find out. They report tomorrow. Lets wait to see what they do. I did like the last quarter, but the stock sold down hard. I like the company longer term, but i want to hear what they have to say. Were on the verge of hearing what the numbers are. Patrick in maryland, patrick. Caller hey, jim. Booyah. Booyah. Caller shout out, finance teacher, mr. Marks, and id like to know what you think about Buffalo Wild Wings stock . An activist in there trying to get things going. I like the business model, but im telling the truth. The restaurant game is a little bit harder than it used to be because of minimum wage. I think its okay. Not as great as it was. Lets go to norman in texas, norman. Caller yeah, jim. Should i be getting in gilead now . Its a very expensive stock. I still prefer celgene, even up here. Lets go to fred in florida, fred. Caller greetings, prince cramer. Thank you and your excellent staff for all your great intel. I own olin at 15. 86 and 22 1 2. Its up 47 yeartodate. It closed today at 26. Where do you see it in the next 12 months . They made a great deal when they did the chlorine biz. That was a killer deal with dow. I just want you to stay long. Its an inexpensive stock. Michael in california, michael. Caller yes. Hello. Hey. Caller mr. Cramer, how are you doing today . Sunny san diego, california. Cant beat that. Caller i would like to know since the president ial election and they have a problem with medical and hospitals. Right. Caller i would like to specifically know about express scripts. No. The one that we like in that group, the one my Charitable Trust owns that i feel really great about is walgreens, especially with that rite aid deal. Caller booyah, jim, from the buck eye nation. Your opinion on xylem . This is a Great Company to own. This is about water infrastructure. Were bullish on water infrastructure. Its been a great theme. Lets go to alfredo in florida, alfredo. Caller hi, jim. How are you . All right. How are you . Caller good. Under armour. I didnt like what i heard in the conference call. Short term, there are better places to be, including pvh on a discount. Lets go to austin in colorado, austin. Caller booyah, jim. Booyah. Camping world, buy sell or hold . The stock hit a 52 week hold. I happen to think the long term camping theory is a great one, and i heard that from thor. Anything that involves that theory is a good theory for me. Stefan in new york, stefan. Caller hey, jim. Caller Young Investor here, started watching the show at a very early age. So what are your thoughts on dexcom . You got to bring them back. People keep telling me they got more competition than i thought. The medical device group has gotten weak, stay tuned to that one because it had a great quarter but weve got to be sure before we commit even down here at 69. And that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] announcer the lightning round is sponsored by td wonders. Selfies, cat videos and winking emojis. Speaking of tech wonders, with the geico app you can get roadside assistance, digital id cards. Or even file a claim. Do that. Yeah, yeah that should work. Its not happening. Just try again. Uh, i think i found your problem. Thanks. Hmm. The awardwinning geico app. Download it today. Ve been on im bushed my feel alyea me too. Excuse me. Coming through ride the gel wave of comfort with dr. Scholls massaging gel insoles. Theyre proven to give you comfort. Which helps you feel more energized. All day long. Thanks for loading, sweetie. Oh, bakedon alfredo . Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. Cascade platinum powers through. Your toughest stuckon food. Nice. Cascade. coughs cough doesnt sound so good. Take mucinex dm. Ill text you in 4 hours when your cough returns. One pill lasts 12 hours, so. Looks like im good all night some cough medicines only last 4 hours. But just one mucinex lasts 12 hours. Lets end this. What a battle royal in the Dow Jones Industrial averages only a twopoint gain, but still a positive coda to the month of november that saw almost 1,000 points tacked on. To me, though, the nine winners out of the 30 dow stocks in todays session speak volumes about president elect trump and his two cabinet picks, Steve Mnuchin for treasury and wilbur ross for commerce that were announced this morning. I dont know about you, but i sat rapt in attention to squawk box when these two men talked about their vision for this presidency. As a stock junkie, all i could think was how the heck are we going to make some money off this targeted progrowth agenda . I got to tell you, one thing ive learned in my 36 years in the business. Never outthink the market. Instead, just take your cue from the action. So lets take our cue from the nine dow stocks that went higher today. Take them in the order of greatest gains. First, biggest, Goldman Sachs. It makes a ton of sense to me and not just because our next treasury secretary used to be a partner there. This company was being valued substantially lower before the election because the banking legislation enacted after the Great Recession and, more creative Financial Products goldman could buy and invest in. Plus if the senate went democrat and we had Elizabeth Warren be the head of the banking committee, goldman would be a good short. Not anymore. Sure, like mnuchin, i worked there. Thats where i got my start. Im forever grateful. I play with an open hand. What you need to realize is the stock of Goldman Sachs had fallen way behind the rest of the banking group, and it simply didnt deserve to be that way. Its too profitable. It has too much growth. However, if you thought youd be getting more of the same or even dodd frank from the next president , you could justify that discount. Now, though, goldman definitely deserves the premium it used to get to the rest of the group and for all the things that mnuchin said this morning about staying the heavy hand of regulation. This stocks rally makes a ton of sense given that its book value, what it would be worth if you just liquidated the business, gave all the money back is 190 bucks. I wouldnt sell it, not even up seven, 219. Next, dupont. We heard from dupont today that its deal with dow chemical is still on track. Of deal that guys like ross or mnuchin would be okay with. They dont want antitrust. But when you listen to these two gentlemen, you get the sense they like mergers that create stronger American Companies that can compete on what is sadly, indeed, an unlevel Playing Field internationally. I like dow chemical, which is at the other end of the equation. We own it for the Charitable Trust, which you can follow along at actionalertsplus. Com. We say its a buy. Chevron and exxon are next. Sure, opec pulled a rabbit out of the hat. But i think we still have to come to grips with how prooil and gas the Trump Administration oi these Companies Wont be targeted as enemies. Theyll be encouraged in their efforts to find oil and drill for it. That may be awful for the environment, but its great for job creation and the economy. Fifth, theres caterpillar. I think this company is now in the sweet spot for a number of reasons relating to the trump agenda. Most important is that cat is viewed as a necessity for both fossil fuel extraction and for infrastructure. Its been the trump industrial stock since the election. I think it can keep climbing. Jpmorgan follows, and all i can into the hands of jamie dimons bank. That business, whether it be from fees or higher Interest Rates or plain old lending to support american growth, will drive the earnings per share higher than the analysts think. Its been a fabulous performer. Still inexpensive. Seven, united health. Unh had a terrific analyst meeting. Its been transformed from an hmo to a nationwide Health Care Company that stands to do better under trump than it did under obama. Next, number eight, american express. This company is about travel, leisure, going out, not to mention small buss since the election. Finally one outlier, pfizer. I got no real justification for its rise. Its only up 22 cents. Heres the bottom line. If you watched squawk today, you could have picked seven out of these nine gainers in the dow as stocks that benefit from this new administration. Keep the list handy. It might grow over time. These names are at the core of the new regime as represented by trump and now by Steve Mnuchin and wilbur ross. A bit differently. Thanks to pampers easy ups. While they see their first underwear. You see the best way to potty train. Introducing new pampers easy ups. Our first and only training underwear. With an allaround stretchy waistband. And pampers superior protection. So youll see fewer leaks. And theyll see their first underwear. New pampers easy ups. The easiest way to underwear. Pampers. . When youve got. . . Nausea, heartburn, indigestion, upset stomach, diarrhea . . Nausea, heartburn, indigestion, upset stomach, diarrhea . Heres pepto bismol ah. I like to say theres always a bull market somewhere. I promise to try to find it just for you right here on mad money. Im jim cramer, and i will see you tomorrow my husband is saying, theres a tornado coming, theres a tornado coming get the kid, get the kid i thought we were going to die. Tornado hit damage is just being realized. The southern wildfires have also caused deadly devastation, seven lives lost, its cleanup and Recovery Efforts are getting under way. Overnight, a protester erupt by charlotte official, not to charge the Police Officer for the killing of keith scott. Later today, president elect donald trump head to indiana with details on the jobsaving carrier deal and word that former Alaska Governor sarah palin may join his administration