Transcripts For KPNX Mad Money 20161015 : comparemela.com

Transcripts For KPNX Mad Money 20161015

Nasdaq advanced 0. 02 . Unfortunately its not all earnings weve got to deal with next week. So whats your game plan . Let me show you mine. Ive been saying that the fed is prepping us right now for a december rate hike, a big reason why this market cant get out of its own way and feels so sloppy. More on that later. Now, fed vice chairman Stanley Fischer will speak monday, and hes been a major rate hike proponent. I bet his new speech will cause this market to get hit. Hes hurt stocks virtually every time hes opened his mouth in 2016. But fischers words will inevitably help some stocks, notably the banks, which benefit from higher rates, and bank of america reports monday morning. The stock has been advancing of late, was up nicely today. Even though its still dirt cheap, i have to wonder if bank of america has gotten ahead of itself thanks to the excellent earnings today from jpmorgan and citigroup. Some terrific pin action in all the banks today. If bank of america gets hit, it might be the perfect way to play after the close, we hear from netflix. And unlike the last few times that this company has reported, the expectations have at last been ratcheted down to where i think they can be beaten. Longer term i remain a believer in netflix but i accept there could be hiccups along the way. Ibm reports too. We need to see some Revenue Growth there, not just earnings growth. Thats what would break the stock out of its slump. Again, cheap stock but no catalyst without top line, not bottom line increases. Earlier today bank of America Merrill upgraded dominos from sell to buy. Weve been behind this stock for 140 points when patty doyle came in as ceo. And this particular analyst has been fighting the stock with a sell rating. I say ill advised. When we get results from dominos on tuesday, i think it will deliver, as it so often has. But the fact that the stock has moved up well in advance makes me concerned that it might not rally too much on a good number. And this johnnycomelately analyst to the story, he could end up being disappointed. Goldman sachs reports tuesday morning. Its been trading up because, they did well trading. Corporate finance, they did well. Those are golden sweet spots. Ive been saying this stock and frankly the whole group are cheap and should be bought. Candidly, it hasnt worked out that way. Ive been too bullish in the group. However, i still think that goldmans value is both compelling and worth waiting for when the fed finally does raise rates. You know i adore johnson johnson. I talk about it all the time. Its a conservative, well run institution. Its been a fabulous win every time you bought the stock at a discount to its all time high. I like that j j is down over 8 bucks from its hh, especially since its become the most consistent of the drug companies. So i suggest you buy some j j, maybe into the Stanley Fischer selloff, and then if reports are good on tuesday, buy some more. Intel has been a remarkable performer of late. The stock has been great. The company itself is just doing okay. That is in no small part because Ceo Brian Krzanich is working hard to ensure that you get some value out of this company, and its levered more than just to the personal computer. The stock is up nearly 9 for the year. Expect the company to do so when it reports tuesday after the close. Im looking forward to it. Ive got my eye on a bunch of companies wednesday like abbott labs and morganstanley before the opening along with American Express and lam research after the close. Abbotts closing in on the st. Jude med acquisition, and i think its solidifying its position in the medical device space. I expect ceo miles white should have a lot of good things to say about the new abbott labs after the acquisition and margin upside from that st. Jude deal. Next up, morganstanley has gone out of favor among the financials of late even though its so well run. Ceo s job. If it hasnt moved by the time it reports and the other banks have continued to run, morganstanley might be a steal here, but thats only if that other scenario plays out. After the close, weve got American Express and lam research, and both have become very controversial of late. One of the things i like best about citigroups quarter today, a terrific one by the way it really had the stock running until a lateday turn was the growth of the costco credit card franchise that it got from American Express. Away to citi, and i also believe the Company Needs to get with the times, start spending more money on tech, keep up with all the great payments and Credit Companies coming out of silicon valley. American express has been a dreadful stock. I dont see what can turn it around shy of warren buffett, who already has a substantial position, buying more. However, i dont think thats in the cards. I know it seems cheap. Not biting. Lam research was trying to merge with kla tencor to create a semiconductor powerhouse recently, but the deal was blocked by the government. So what does an independent lam look like . And what will the impact be of samsungs woes on lams book of business given that samsung is the largest buyer of Semiconductor Equipment . Were going to have to listen and find out. The airlines came alive this week when delta announced it would not allow a lot of new capacity next year. American immediately jumped on that news, but i wonder if it will pledge not to expand its fleet too when we hear from it on thursday. If so, that stock is going to continue to rally. But remember i like luv, luv, southwest. The most consistent industrial talk enough about which is illinois tool. They report before the open on thursday. I think its worth buying this one if it falls before that quarter on a fischer selloff. We have reiterated several time its so consistent. Next up, my charitable trust, which you can follow along at actionalertsplus. Com owns a substantial position in the drugstore walgreens. Oh, boy, its been a huge disappointment lately. Some of that is because its so in limbo as it tries to buy rite aid, symbol rad,and it looks like the federal trade commission might block the deal. At this point my hope is actually that th away and starts buying back its own stock. It is time for walgreens to fish or cut bait. Steady eddie verizon also reports thursday morning and we want to hear what its plans are for yahoo, which i still think it will buy despite this email security breach. And we want to know more about aol. Nothing ive heard so far moves the needle. Its still just a Telco Company in my eyes. But in my eyes, verizon is an Interest Rate play too. I dont expect it to rally as we get closer to the fed meeting do go down. Nevertheless, it does represent a compelling value with a safe 4. 5 yield. No one ever got hurt on a verizon. After the close, we get results from two giants, microsoft and schlumberger. I expect both to give you some good news. Microsoft could have some expanding margins. I want to hear much more about the business of the cloud now that they bought linkedin. How do they intend to monetize linkedin . I keep hearing about great things from azure. Thats their cloud platform. I feel like the more we hear, meanwhile, schlumberger, i think theyre going to give us a great read on whether this oil rally at 50 bucks is for real. Theyve been downbeat about the short term price of crude. Could schlumberger turn a little bit more bullish . If they do, expect oil to break out. But the inverse could be true too. Friday is tad worrisome frankly. We get earnings from two companies with sagging stocks of late, mcdonalds and General Electric. We know that mcdonalds, its kind of become a what have you done for me lately stock, and the answer is maybe not that much. That said, with a Balance Sheet Financial Flexibility and 3. 3 yield, i wouldnt give up on mickey ds. We own General Electric for the charitable trust, and it too has turned into a very tough stock save for that 3 yield. G. E. Has not one but two challenged businesses of late, aerospace and oil and gas. I hope the company can talk more about returning capitalist shareholders and less about the weakness in either end market. I believe the latter awaits, and i wouldnt be surprised if g. E. s forecast causes analysts to cut numbers. We like it longer term more than shte what can i say . Ceo dave cote told us that 2017 is looking like a good year. I would buy honeywell if it goes down ahead of the quarter just based on what we heard last night, especially since its among the cheapest of the industrials after that brutal selloff. So the bottom line, let the wife complain. Next week is heavy lifting. I got my alarm set for 3 30 a. M. And my work cut out for me. Lets go to jeremy in maryland. Jeremy. Caller booyah, jim cramer. Booyah. Caller how are you doing caller good. I just want to say good luck this weekend. Ill be wearing my burgundy and gold. Im not too far from fedex field. But i wanted to say good luck. In fairness, i want to tell you i will be at the game, but i will respect the house. I will wear a muted green shirt. I already picked it out. Its a tulane shirt. No one will think im wearing eagles clothing at fedex field because i respect the house as people should when they come to the lake. They should respect oh, im sorry. Whats the stock . The merger of Johnson Control and tyco now complete under stock symbol jci, where do you see this company and stock going in the future . I like this. We got to surrender the short term. The short term, it is adjusting to the idea that the Federal Reserve is going to raise rates. The longer term in this combination is bringing up tremendous value. Ruth in washington, ruth. Caller hi, jim. How are you . Im good, ruth. How about you . Caller good. I think youre just brilliant. Wow, thank you. I wish my mom were around. Caller youre welcome. My question is about baby boomers. As they grow older, as they age, they need more joint replacements. And i know that there are some Strong Companies like zimmer and others in this group. Yes. Caller but recently you spoke about conformis, and this company uses a customized fit device that molds to the shape of the joint, which sounds very good to me, but the stock has not done well. No. Ruth, its too speculative. It didnt have that great a quarter. Zimmer biomed is the one weve been focused on. We understand 127 stock can go in and go out, but i do think longer term that zimmer is a safer stock to own, and i think thats what we really should have in mind. I want to go to mark in wisconsin, please. Mark. Stock i owned, roserock mid stream, Ticker Symbol rrms, was acquired by semgroup, Ticker Symbol semg. I was wondering what your thoughts were on the acquisition and Going Forward is semgroup a buy, sell, or hold . Its actually good. Its got a 5 yield. I like it. I like the pipeline stocks here as oil stays around 50 and natural gas around 3 bucks. We need more rbn, which is my goto organization for info. Talking about how we need mexico is importing a lot of our natural gas. I think youre fine in that stock. Lets go to joe in my home state of new jersey. Joe. Caller how are you doing, dr. Cramer . I am doing fine. How about you . Caller good. Jimmy, i want to first thank you for all the continued good insight and leadership you provide to the individual. Thank you. Caller its worth its weight in gold. More importantly, i wanted to talk to you about your outlook on t. Rowe prices equity over little bit from earlier in the year, but its a good time to take a second look at it and say i think people are getting very concerned that actual stock picking funds and companies that are in the business of anything other than just pure index funds arent doing that well. I think t. Rowe is a fabulous longterm holding. I do believe that equities will one day come back into a mode where people think its a Growth Business again. But right now, that stock could be only described as and im going to suggest that you stay away. All right. No sleep till well, it will be a while. We got a huge earnings week coming up, and i got the alarm set for 3 30. Yeah, go ahead and tweet me. Ill be there. Get ready. Big week. On mad money tonight, its the software that helps bring films such as captain phillips, american hustle, gravity to the big screen. Could it also help bring profits to your portfolio . Im talking to the ceo of small cap avid technology. Then it seems like no rally can get you back to even these days, but could the Growth Stocks offer a respite . Not quite. Ill explain just ahead. Plus the market seems to have lost its aptitude for the restaurant sector appetite, not aptitude. But does this former ceo of zoes kitchen think theres still heat . I suggest you stick with cramer. Announcer 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. I have asthma. One of many pieces in my life. So when my asthma symptoms kept coming back on my longterm control medicine. Oncedaily breo prevents asthma symptoms. Breo is for adults with asthma not well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Breo wont replace a rescue inhaler for sudden breathing problems. Breo opens up airways to help improve breathing for a full 24 hours. Breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. Breo is not for people whose asthma is well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. , your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. Do not take breo more than prescribed. See your doctor if your asthma does not improve or gets worse. Ask your doctor if 24hour breo could be a missing piece for you. See if youre eligible for 12 months free at mybreo. Com. . . Dry spray . . . Thats fun. . . Its already dry no wait time. This is great. All the care of dove. Now in a dry antiperspirant spray. Awarded best of beauty by allure. Cheezit grooves are the Perfect Union of a cheezit and a chip. You mean like they got married . Umm. I guess. Youd make a pretty bride in that wedding gown. Oh, its a lab coat so. Hey everyone, joes getting married bam bam ba bam. Oh, im not. We take time for our cheese to mature. In our crispy cheezit grooves. Can a toothpaste do everything well . This clean was like pow it added this other level of clean to it. 6x cleaning my teeth are glowing. They are so white. I actually really like the 2 steps. Step 1, cleans. Step 2, whitens. Every time i used this together, it felt like leaving the dentist office. Crest hd. 6x cleaning , 6x whitening i would switch to crest hd over what i was using before. Absolutely hammered on virtually no news whatsoever, particularly when were talking about smaller capitalization companies. Just look at avid technologies, which makes much of the hardware and software used to power the media and entertainment industries. A number of avids digitial tools are used in sports and news production, things like embedding graphics, integrating social media, and even control over the video walls like you see in the main cnbc newsroom. Were a big user of Avid Software here at cnbc. This stock has been on a real roller coaster ride. In 2015, avid shares were cut forecasts. But in 2016, things turned around, and after the Company Reported a very Strong Quarter at the beginning of august, the stock surged to 9 and change to the point where it was up roughly 35 for the year. Since then, though, avid stock has swooned again. Its actually given up all its gains for the year even though nothing much has changed except they realized a Major Contract in the Third Quarter with a Company Providing a great deal of the Technology Behind nbcs rio olympics broadcast. So lets take a closer look with Louis Hernandez jr. Hes the chairman and ceo of avid tog money. Good to see you, sir. Have a seat. Thanks. All right. We dont usually talk about real small cap stocks, but it seems like that avid is doing a lot of things right, and this is the first time youve been on. I just want you to explain to people that weve all seen avids work. We just didnt know it was avid. Thats right. Avid is behind some of the Largest Media Companies and major motion films. You know, every grammy awardwinning artist on the music side, sports, gaming. Around the world. To be an avid editor or actual handheld cameraman, what does that take . Its interesting because on the creative side, how avid began with the editor like your cameraman, by the way, who will earn an average of 44 higher than any other editor over their lifetime, so hell be buying dinner next time. The heritage side both on the editor and the mixer is what our heritage products. Though, and that side of the work flow, is most of the Business Dynamics of the business of media have moved away from the editor and mixer and has to include the entire work flow in order to make money in media. So what avid has had to do was build on its heritage products so that it can participate in the rest of the work flow, and thats what avid is becoming now. I see the company look, the spike in the stock in the 1990s and another spike in 2000, but that was when it was a hardware company. Thats right. You probably know im a software person in my last couple of companies starting when i was in media when thestreet. Com, the dot com era, i was there too. We were converting media files to the internet and other content to the internet back then with a different company. But, yeah, the issue today is

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