Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money.
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 5/6/24
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is I surveyed the sometimes massive destruction in stock prices that we've experienced in March and April of course we have a glorious lack of big picture economic information right now if you're getting some weaker labor numbers last week that could put the Fed on a course to cut interest rates there's not much else Mac row ahead at least not anytime soon oh we had a couple of Fed officials lurking around waiting to speak in public there's some iron consumer confidence numbers on the way not to mention worries about Disney's number just tomorrow but otherwise when you look at the survey today's action Dow gaining a hundred seven points S.B. jumping 1.03% now as that advancing 1.19% you know we've now moved on to an aftermath of a pretty vicious sell-off and any good client from here might be an occasion to in other words maybe maybe the worst is behind us let's take the quintessential stock of the new year to be able to put this in context okay let's take you in video I want you to think of the Nvidia arc the stock which have been a rocket started fizzling on March 8th that's when it peaked when we got a surprisingly strong employment port that made us feel like the Fed was foolish to take more rate hikes off the table remember that so what's happened since then well okay so Nvidia introduced an incredibly revolutionary chip it's called black well fat far faster not faster but far faster than anything that's currently available put that perspective let's say I wanted to use an example just so you can always it comes to life this way let's say you want to teach a robot to pitch in major league baseball well right now you they would just get they would be they would pull the first inning but you show black well okay the computer videos of all the great pictures load them in then you soap black well videos of all the great hitters load those in or at least the hitters of a really good team black well can then tell the robot exactly what to pitch and where to place it and the robot will get this it will pitch a perfect game every single time every time and that's just one example how revolutionary this chip is black well can help figure out how all the major illnesses operated on micro level because it can rapidly map and understand proteins that used to be in the same time consuming core course now look this does not mean a cure far from it okay I don't even want to I don't even want to suppose that but it means that research can be accelerated and that is often what really needs to happen the black well super computer offers an omniverse product that product can work with Apple vision pro to build something verse virtually so that you can perfect the design and then help execute it in reality with a fraction of the waste and waste really matters these days we saw it made me feel why I was in that Nissan Roadster when I was actually just sitting in a chair people are laughing at me about the power of the vision pro and I get that but you know what I'm going to laugh last not unlike Carrie in that great Jim scene now this technology can speed up any of the hyperscalers programs Amazon alphabet meta Microsoft all seem to want black well chips even if they are developing their own less powerful in-house semicructures which we hear about constantly but they don't compete with running videos doing black well and be the answer for so many problems that we don't even know exist yet because we aren't yet capable of imagining the solutions our brains really just aren't big enough I know that sounds strange but it's true things that used to take weeks to calculate can now be done in a day or an hour so you what you'll do something you might not have done otherwise now you might think this would have been huge for Nvidia the stock but the market had turned against gross stocks because we were worried about the Fed and that's why the stock ignored the GTC conference and it fell more than 22% from pizza trough I mean come on that's a house of pain a massive decline now perhaps it was justified maybe it wasn't though either way you can't say Nvidia never corrected you can't say it didn't get smashed in the last few weeks though it's come roaring back but it was hammered how about apple okay we don't know if apple's bottom or not I mean stock activity today we do know there's an apple developers conference coming up where you might see a lot of exciting things including things that make the vision pro seem like more of a stool for the enterprise and that spatial computing is for real at least when it's hooked up to Nvidia is on the verse which is the link to the Nvidia super computer apples quarter was better than feared its guidance was better they expected service revenue was terrific most important when I asked Tim Cook whether the next iPhone would have all the cool AI capabilities that Samsung had he laughed and assured me not to worry about that now that makes me think that the next iPhone iteration will be a must buy which means that you should be buying apple stock right now these positives are all ahead of you as a shareholder it's true that Warren Buffett sold some apple suggesting it might be positive maybe it was because the possibilities of capital gains tax rates going higher but he's still four square behind the company in the iPhone for all that what's happened apple stock that it fell 17.8 percent from peak to trough but I give it its bounce back nicely last week what else okay I don't know what to do in arm holdings this is terrific semiconductor architecture company taking market share working arm and arm within video and CPUs that can cooperate with their ultra high speed graphics chips that's a GPU GPUs are buffeted by CPUs from everything I hear arm CPU business is incredibly strong yet during this hill if this stock fell 48 percent from peak to trough it also bottom if you reach go but it's still well off its highs it reports Wednesday it's true that AMD didn't raise its forecast enough for next year's ultra fast graphics chips that they think can rival in videos they took numbers up to about four billion from 3.5 billion that they were projecting in January but Wall Street already wanted at least five billion or even more I think analyst got ahead of themselves this doctor in this period pulled back 38 percent from peak to trough now it's starting to rebound it's only at 14 bucks from its lows that could be an opportunity not that long ago sales for CRM gave it triple quarter nice top and bottom on beat they also threw in a dividend and buying back stock enough to keep the float flat it was an almost universally applauding quarter and what happened will the stock fell 16 percent from peak to trough it's still just a few bucks away from its lows bargain Microsoft blew away the numbers and gave you a great forecast for azure that's their fast growing cloud business ami hood the cfo was as abused as I have ever heard her ever many thought the stock was headed to the stratosphere initially it did rally hard but march today but what happened will stop fell 10 percent from peak to trough before finally getting its groove back a week ago but that's a big decline from Microsoft of course you can say you wait a second Jim's cherry picking these declines in tech I am literally looking at what were some of the considered the great growth stocks of the year that the market changed its stripes when early March I got tons of stocks that are enterprise software they're just were obliterated I'm not going into those in the end we had a rough time going in the Fed meeting a rough time going through any season and we were anything but unscathed there were some used losses racked up ones that easily could have made people head for the hills and avoid the whole asset class if you bought NVIDIA at the time of the GTC conference when we were out there a seemingly reasonable moment to pull the trigger even as we urge you not to then you know what happened you got your head to you and you only made back and some some of the losses after today's four percent rebound if you bought apple in mid-December at almost 200 and watch you go to 165 well you probably took a serious loss now it's back to 181 hey let's not forget meta it fell 10.5 percent on earnings introduced down even more it didn't stop after that from its peak to its rough meta okay this was a very very good growth stock it fell 18.5 percent not many people could handle that kind of loss talk about shaking out the weak hands which is exactly what a correction does and what a hammering and yet here it comes again the bottom line i think the self could finally be over no one ever wants to say that because then you run the videotape and you look like a joker i don't care i have to deal with the prices that i'm dealt with there is there could be some bad news ahead or at least some planned news though that we can't expect from the fed i don't know i mean maybe maybe not forget the fed for a second here's what we have we have benign earnings reports for bid but the most important takeaway stop waiting for a correction to give you better buying opportunities we just had one for heaven's sake let's go to and indiana and hey jim thanks for taking my call thank you love member of the club loves the piece over the weekend you know whether to battle or cut our losses thank you so anyway so after new core reported uh i started a new position what do you think you know new core had some bad news today about us well there's a particular they make many different steel many different kinds of steel and one other kinds of steel did have a decline in price and people are saying that that's very bad for the company i like new core very much you are going to have to deal with a bit of turbulence here as it comes down but i'm leaning toward buying it not selling it and thank you for being a member of the club and for reading that very long piece that took me uh entire saturday because my kids were coming over sunday i wanted to be doing it's got a mat in new york mat thank you for taking my call jim thank you what are your thoughts what are your thoughts on so far post earnings and can you get the cramer army the reddit army to buy up every single share of so far stock that is out there well okay so far important it put a good quarter but nobody cares and you know i can defend a stock for so long and i've now defended the stock for uh about almost two years about a year and a half and uh i think it's okay but i am not going to sit here and forever say it's okay so what here's what i have to say i wouldn't buy it i'd like to see the stock go up uh but i anything you know is a terrific eye but i just don't know what drives this stock higher i just don't know let's go to frank in new york frank hey frank hey gim how you doing you work alcoholic i love you thank you frank thank you i've i've been watching this stock since i went to the public recently and i'm wondering if it can some in some ways shape or form follow a little bit and support these footsteps cava group yes i think it can cava can uh and i'll tell you what because cava has that mediterranean diet going forward that is very good for you and that's what people want when they there's a whole cohort of people that's all they want they want to eat out and feel good and be good and cava fits that depiction right i i am urging you to stop waiting for correction to give you better buying opportunities because we just had one as i just demonstrated and i think we may be closer to the end of the selloff doesn't mean we're done but it does mean you buy them if they come in anybody tonight this ain't Texas it's the nearest stock exchange but i'm still weighing my cards down on texas roadhouse to see if the restaurant chain can be appetizing this table there is it finally safe to dip your toe back into the market i'm going off the charts to see if what i just said at the top of the show could be for real and the pandemic has changed the freight and logicians business i'm taking them with ark best to see whether that is the time to buy a tattered stock so stay with cramer don't miss a second of mad money follow at shimcramer on x have a question tweet cramer hashtag mad mentions send him an email to mad money at cnbc.com or give us a call at 1 800 743 CNBC miss something head to mad money dot cnbc.com fact running a business is not getting easier on your wallet with higher expenses on materials employees distribution and borrowing everything costs more also a fact smart businesses are reducing costs and headaches by graduating to net suite by oracle net suite is the number one cloud financial system bringing accounting financial management inventory and hr into one platform and one source of truth with net suite you reduce it cost because net suite lives in the cloud with no hardware required accessed from anywhere you can cut the cost of maintaining multiple 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other job sites according to a recent indeed survey leveraging over 140 million qualifications and preferences every day indeed's matching engine is constantly learning from your preferences join more than three and a half million businesses worldwide that use indeed listeners of this show will get a 75 dollar sponsor job credit to get your jobs more visibility at indeed dot com slash mad money just go to indeed dot com slash mad money right now and support this show by saying you heard about indeed on this podcast indeed dot com slash mad money terms and conditions apply need to hire you need indeed last week we spent a lot of time talking about restaurants because we're seeing a big divide between the winners and losers in the group it's pretty fascinating but you know what i never got around to the best restaurant quarter of all yes texas roadhouse which reported a beautiful quarter last thursday night they sent the stock up 3.6 percent on friday and then another 2.5 percent today that's a good one tonight i want to put a spotlight on this one because texas right else has delivered a series of great results despite being the full service base at a time when quick serve outfits have generally been the winners this thing's been roaring though climbing from less than one hundred dollars late last october to 167 and change today people don't talk about it because it's not in new york city i guess i don't know so let me walk you through what makes this story so compelling because it is textbook texas roadhouse is nearly 700 locations with 45 locations for bubba's 33 think burgers pizza wings and beer and 11 stores for its new fast casual concept jaggers the fast majority are company-owned giving them more control for everything from menu pricing to staff levels that's kind of like chipotle they pay extremely generous bonuses for restaurant level managers to deliver good results put it all together in the stock's been a fabulous growth story ever since it came public way back in 2004 but nobody talks about it for me the most impressive thing about texas roadhouse is that the stock's been a juggernaut lately even his most full service chains have struggled how do they do it okay simple texas roadhouse has figured out how to offer high quality food including steaks at reasonable prices creating one of the most compelling value proposition for consumers in the whole full service dining category now we know that lower-end customers are pretty cash grab right right now and this early season we found out that the restaurants that can do well are the ones that give people a good meal at a good price that's a common thread we've seen from some of the strongest reports like domino's pizza breaker international wingstop others that raise prices too aggressively without clear value proposition here including mcdonald's and yes starbucks are now suffering from traffic declines as customers vote with their feet this one except for this thing though but it's just chipotle which is raised prices aggressively putting california because of that minimum wage issue yet has he no deterioration demand at all wow now texas roadhouse in the other hand has followed the more typical blueprint for what works the stock actually bought him late october after the cover reported a big earnings miss their third earnings missed in four quarters not good but texas roadhouse rallied in response because wall street was focused on the terrific revenue momentum in that october they delivered eight point two percent same for sales well walsters when i got over 7.5 percent even as the rest of the industry was starting to lose steam on the traffic at least texas roadhouse never did to put it on by last year the restaurants were still doing with plenty of inflationary cost pressures and man decided to raise prices in order to pass those customers on to you texas roadhouse didn't take some price but they were much more measured with the price hike because they really care about giving people good value for their money that decision hurt the earnings in 2023 but the strong same store sales showed that the customers liked it they had a little more vision ever since the stock bottom late october the company's reported two more quarters one in february and one last thursday and on both occasions they made real progress from getting costs under control while continuing to deliver fantastic same store sales in short it's all coming together for this texas roadhouse now they didn't raise prices aggressively and the rest of the industry was doing that uh and now the customer basis is rewarding them for so doesn't this make sense right they didn't raise the prices people went there the other guys raised prices they stopped going to them when texas roadhouse reported in february it had a 10.1% comp restaurant sales growth that's incredible for the full year with more than half of that increase coming from traffic improvements more people when you add in the company steady in your new store growth their total revenue grew is 15.4 percent last year and for all the hand ringing about the earnings mrs texas roadhouse still saw its earnings per share grow by 14.3 percent last year management's initial guidance for 2024 included calls for positive saint floor sales growth and store week growth of roughly 8 percent store week growth is a quirky metric that accounts for new locations at the same time they talked about mid single digit commodity cost inflation and labor inflation put it all together and the stock jumped 10 percent in response the numbers were just that good fast forward to last thursday night texas roadhouse reported yet another blowout this time they had 8.4 percent saint floor sales growth wall strip was looking for 7.8 some of the best comps we've seen from the many major restaurant chain discerning season CEO german morgan noted that strong traffic trends continue to drive sales with crucially texas roadhouse modest price increases have taken effect just as some of the cost inflation's fading away the restaurant market came in 17.4 percent up 150 basis points year over year and 50 basis points above what the analysts expected that's sensational even better texas roadhouse gave us some bullish outletting bullish updates on the full year first matter this goes to the first five weeks of the current quarter same store sales were up 9.3 percent so you got a meaningful acceleration versus the first quarter for the full year they also lower their commodity inflation cutting in from five percent to three percent what a story so to recap texas roadhouse looks on uh looks on traffic looks on track to deliver i would say much better than expected same source sales and while the cost inflation would likely be lower than expected that's such a combination it's ideal and it's why the stock's rallied so strongly in response to the latest quarter now the cops will see oh gerry morgan put things pretty simply said quote our strong results continue to reflect our operators commitment to the consistency and quality of the food the hospitality they provide and our everyday value the benefit of our long-term approach to the business and our focus on always prioritizing the guest experience is evident in the record sales margin dollars and net income for the first quarter end quote see this is a great story this is how it's supposed to work you don't take the price you don't gals of people you end up getting even more people to come you can take price a little bit and then the cost go down this is what business is about so despite the fact that texas roadhouse operates in one of the more challenged sub-sectors of the restaurant industry the full service base i think it deserves to be in the upper echelon of restaurant stocks right now this has been a long great growth story but right now in particular texas roadhouse is killing it because they never drove the customer base away with aggressive price increases as we know some have making them a rarity in the restaurant space when they can clean up now the cost pressures are fading away of course after the latest one the stocks are up 37 percent year today not pure it's quite expensive 28 times this year's earnings estimate but i like it bottom line if you buy texas roadhouse stock at these levels you're chasing it i admit so i think maybe it'd be great if you were patient with maybe the stock cools off little before you started position but if you can't resist it after what i just told you you know what you got my blessing because this is one terrific story their money's back at liberty coming up the charts may be signaling a key move and it could happen this week take a walk on the technical side when we return CNBC has quick and easy to understand business news updates at the open midday and close every weekday markets money and more from wall street to main street i'm c_n_b_c_'s jessica adding good follow and listen to c_n_b_c_ business news updates wherever you get your podcasts as the market truly changes stripes was like two bullsh at the top of the show i think that's the question that we got to figure out last week we got an extremely benign fed meeting right where fed chief j paul made it clear there is no plans to start fighting the bulls again and then two days later we got this core extended expected labor port for months before him wall street was terrified that the economy was overheating and the fed might need to lower the boom on us again hurting the stock market totally wrecking j paul's credibility too because he had indicated the right expert over that's why i spent so much time lately highlighting the brown shoots newfound signs of a slowing kind because the slowdown is what gets the fed off our backs permanently allows the stock marks to rally today last week the fed recognized those brown shoots and then two days later we got the older brown shoot that was the sign of a slowdown hiring from the non-farm labor port ever since last wednesday fed's meeting this bargain has caught fire again after spending most of march in april really kind of in the dumps so can the averages keep running this feels like a decisive moment doesn't it one where we might shift from the early spring sell-off back into rally mode at moments like these you know about it like do i take my emotions out of the equation and consult the technicals and that's why tonight we're going off the charts with the help of calen broden she's that brilliant technician who runs a trading room at eliot wave trader dot net and whose work you can find on x for me twitter at queen of fibs do you know that she predicted a period of turbulence for the market back at the end of february 20th the s b 500 got overextended and she told us that the turbulence would be temporary but she acknowledged it could be pretty painful i said at the top of the show that it has been now as the turbulence truly come to an end why don't we take a look at the weekly chart of the s b 500 broden's always searching for price points or dates where security is most likely to change course for example she likes to look for what's known as signs of symmetry these are moves that tend to be surprisingly similar to previous swings you'll be surprised how often this happens where the client terminates after roughly the same amount of points as the previous decline i can't tell this dynamic exists i just know it seems to show up in the charts all the time making it a pretty reliable pattern frankly technical analysis all about predicting you in behavior and people seem to like buying stocks or indices and for they pulled back by roughly the same amount as a previous decline which is why the concept of symmetry can help predict sustainable bonds in terms of s b 500 when you look at recent declines they lasted for about 315 to 336 points when you look at its latest low in mid-April this s me was down 311 points and you can see these i'm going to show you one that's over here that's really interesting but this was a 311 point decline all right that's very similar in scale to one of the previous pullbacks now that was the 315 decline since that low was made broden points out that she seen multiple buy signals on the s&p daily and intraday charts remember she loves to watch the five-day exponential moving average the 13-day exponential moving average on daily chart when the five-day goes over the 13-day that is her buy trainer she also looks at a half-hour chart where you just take represents 30 minutes where she uses the five-period exponential moving average and the 34-period moving average after april the five-period moving average has crossed above the 13-period May is the time to buy okay so far the s me rallied about 210 points over a new floor of sport as long as it holds above its April low which come in at the mid-4900s broden would not be surprised at all if the s me can keep running either way this charts paying a much more bullish picture than we've had for quite a long time but it might not be totally smooth sailing on the way up just zoom in on the s me 500 it's never gonna do the daily chart now get this broden points out the s-p's now jousty with some very important resistance levels as she sees it sees it we just cleared a major hurdle today and this is i'm going to mark for what happened today at the close we just cleared that hurdle and she thinks that that can mean that we can move the five three four nine on the s and p that's up a little less than 170 points versus where we are right now she says the next major hurdle comes at five four five seven all right so we're gonna have to hit this all the way now we're talking about way up there right uh and if we could add her all then she thinks we can hit five six three eight i didn't even bother to put those away like let's deal with the hand we've got here now how does she identify these key price levels well broden likes to measure past swings and then run them through what's the known as the prism of Fibonacci numbers which are these series of extremely important ratios to show up everywhere in nature the patterns of snail shells the way out of flowers or pine cones or even i found out cold flower yeah and also the stock market again this is one of those things with no clear logical explanation i don't have one but we know that Fibonacci patterns are meaningful because they repeatedly show up at major pivotal points for individual stocks and for the whole market when it comes to the S p 500 right now broden sees a cluster of Fibonacci levels running between five one four three and five one six one okay you see these uh thanks to today's bullish action we've now cleared each of these levels and all day we were checking in because we're like remember we're updating and updating update these are not easy things to do and we're clearing she we kept hearing yes we're clearing we're clearing and she believes that that's therefore we have the potential for new high and it's got a lot more likely for today's action these key levels come from the coincidence of the three 100 percent projections of a previous swings 161.8 percent Fibonacci extension of a previous move and another 127.2 extension of a different move again these are all part of the same mathematical construct we've also got a six to one point eight retracement and a 78.6 percent retracement in there i could go on and on about these i just need you to know that we're taking out very key levels that signify strength right now it's looking like the s&b is cleared each of these possible ceilings of resistance meaning it could be smooth sailing assuming we don't give up these gains tomorrow basically broden thinks this was a make or break moment for the market and right now it feels like we're going to make it as long as s&b doesn't backslide much from here she says that it's likely headed for five two eight two or five three four nine from the weekly chart remaining on the table and that would be sensational let me give you the bottom line again i can't emphasize enough how many times we're back and forth trying to get this right for you the charts isn't driven by calen broden suggests that this could be a decisive week this b500 and after today's run she thinks it's looking very much like it's going the way of the balls my view look last week i thought was a game changer we were afraid we'd have to fight the fed again now it's clear that fed doesn't need to tighten and as long as economy keeps slowing we might even get a rate cut or two because practically everyone's given up on getting any sort of kind of relief for me at joe's with broden's reading of the charts and i like it dave in florida dave yeah hi jim buya buya dave or how you doing uh i'm doing well how about you i'm doing good doing good thank you my question is about fizer i chose that as a holding when co-19 broke out versus wishing me Moderna during the operation walkthrough right is it it's fizer going to be a sleeper or i think fizer's bottoming i think that this that cjn is starting to kick in i think they're doing a lot of stuff by the way with migraine which makes me very happy being the spokesperson for the american migraine foundation i think it's i don't want to call it a new fizer i want to call it an energized fizer and i think you're going to see some good things and in the meantime you got a 5.9 percent yield so i like it jim in your chin hi jim how you doing i'm doing well jim how about you oh i'm doing great thanks for taking my question quite welcome okay since mid-marriage lindy stock price has fallen 10 percent about half of that decrease coming since the first quarter results were announced that may second do you think this reduction is reasonable in light of lindy's performance or do you think the market is overreacted well jim marks and i went over uh i'll tell you we went over every single line over and over again we think it is business as usual that there are some people who felt that lindy would be hurt by the fact that people are not as concerned about the environment as they are about security right now i think that short-term nature thinking and you should hold on to the stop and that's what we told club members all right the charge isn't driven by carol and burrow to suggest that this could be decisive week for the s&b 500 after today's run she is actually getting more bullish i don't blame her we saw why i think there's a lot i think that it's a reasonably good level now it's what more man money including my exclusive with art this we are always on the lookout for signs that the fed rate could cut rates what would it mean for the freight industry typically it's a pretty good thing so i'm checking with the co then the big retailers haven't reported yet but the small ones and some restaurants are sending us some signals that we have to listen to i'll share what we've learned and how it could impact your earning season investment pieces and of course oil calls rabbit farms and i'd suggest not the lighting well so stay with cream lately we've been looking for what i call brown shoots for signs of a real economic slowdown because that's the only way that the fed stays are our friends i mean look what we saw last week right how good is it that the feds on our side you know what we've seen a ton of brown shoots from the freight business take ark best which is a really well-run logistics company focused on less than then truckload freight and managed transportation solutions for the enterprise last week ark best reported my other revenue came a little higher than expected they only earned a dollar 34 per share was looking for buck 53 all right that wouldn't have been too bad but on the college school management did us some discouraging things to say about the freight business in the month of april and that's why i believe that the stock plunged more than 14 percent on the news but that's just my reaction was that an overreaction or is the business between the jury and that barely let's take him to the ground she's the chair president cio ark best to get a better situation mr ground's welcome to make money well thank you jim how are you i am good you how about you doing well okay i need to know we've had a sell-off and the sell-off has been pretty severe tell me if it's warranted or not please well i don't believe it is we had a great quarter from an execution standpoint although we were impacted as the industry was by the soft environment and so when when i look at the quarter i see that we overcame the soft demand and a 29 million dollar increase in labor costs and produced results that were equal to last year in terms of the asset-based operating income which was uh executed well and that was accomplished by the optimized uh work that we were doing with our cost and some specific cost cutting measures okay um so oh go ahead go ahead no i i'd like to because i was going to ask you that about the cost cuts because the operating ratio was not what i want but you are a union operator it's not easy to go up there against jay behind you know i mean it's just not easy well i mean i i feel like that the labor cost deal that we entered into last summer was effective and it was certainly front-loaded but overall for the five-year period it's about a four percent cost increase which is pretty reasonable and so what we did deal with the front-loaded nature of that in the first quarter but the great news is we were able to you know optimize our costs in other areas and uh really uh select rate that was good for us grow our core business and it worked very well you know our strategy um is to accelerate our growth increase efficiency and drive the innovation and one of the innovations uh is a city the optimization of our city routes which enabled us to reduce miles and and reduced our cost by about 12 million dollars on an annual basis and we also saw an increase in our pipeline for customer growth of 35 since the beginning of the year and we were able to drive innovation as well through the announcement of voxmart autonomy um this was times best invention last year and it was also a good quarter from progress on that from pilot customers we're piloting that work with the fortune 50 and fortune 500 and we have about 20 pilots in place so i was pleased with the execution in the quarter certainly was a softer demand environment but we made a lot of progress on some longer-term issues which is the way we think well okay so the softer demand environment does that continue and i pointed out because you know you've got a fed that has been saying until last friday last wednesday higher for longer and yet when i looked at the projections of how you guys have done you're a pretty good barometer of the us economy i could not understand why he would keep things higher for longer given the numbers that you have well it has been an interesting difference i think in the overall economy uh versus what it the fradon trucks uh that we're seeing but you know when we think about it we know that the demand environment will be unpredictable but what gives me confidence in our business is that we know that customers need to make their costs more efficient and they want reliability and we deliver those solutions our managed solution which is designed to help customers plan execute and optimize their supply chains um had double digit growth in the first quarter and the momentum and the pipeline there is really good and what's interesting is when you think back about the pandemic uh you know our customers were wanting capacity sources and they also wanted flexibility to deal with some of the pain points that they had like part shortages and other things and we were able to deliver on that as well so the way that we built this integrated logistics platform is just effective uh in this variety of environments that we're facing so you know we're confident about how we're positioned and how we're serving customers and that's working very well does it bother you that probably what we get the stock going it's not necessarily how you're doing but if the fed cut rates and if i wanted to ask someone in the in industry just saying okay here you are you're working so hard you're trying to do everything right but a quick but a quarter point rate cut is what we move your stock up 20 points isn't it well i mean it's certainly a possibility but we just deal with what we can control and we try to to address that in the short term which i think our team does a great job of executing uh we had you know the the best service performance in three years in the first quarter that's an example of that we received accolades from ATA for the excellence and security award in the first quarter which is something that customers look to and trust us for so those are the kinds of examples of things that that we can do well despite what's going on in the macro and that's where we like to spend our time well i think that's absolutely right and it's why you can that is the look that's the investment case you're doing those things while we're waiting for the fed and that will really help your action you know ultimately your traffic well anyway i want to thank you to mik Reynolds he's the chairman president CEO of arc best thank you judy that's a great explanation of where we are right now thank you so much Jim enjoy being with you okay may have money's back there when we return master the markets one stock at a time the lightning round is up next it is time it's over the light round quicker it's my record on it's here mr stock's there by myself alone don't know the course of it i'm going to win is up and then the lightning round is over are you ready skid tagged over the light round against us go with max in New York max we got Jim we are max what's going on wanted to know about error environment ticker av av absolutely and here's what you need to know we have a lot of very expensive military equipment that is not that it's just way way too expensive and then we've got this stuff there environment makes and that's the bargain it's about time that the pentagon started looking at the guys who don't cost us an arm to leg because our enemies have very inexpensive drones we can have them too let's go to crayon california cray is this a chill master jay you bet it is what's going on chief hey uh yeah i'm looking at a stock i don't have any exposure in this one sector uh it seems it's got a nice dividend dirt sheet peg ratio uh revenue growth over 26 percent of a three-year kegher uh with gold seemingly destined for 2,500 an ounce uh so that is a time to stake a claim an aem agnetable evil mind i think that shawn boy's been delivering since he's been on the show he's got a really good hand he's been playing it and i like the gold stocks and i do like gold right much here how about jordan and florida jordan jimpo! oh yeah! yo man what's happening first time caller long time listener there we go moved to florida about 30 years ago where i met my beautiful wife and grew my family lucky man a couple questions for you buddy sure sure first before we get into business a little sad note on the sixers you know feeling bad about the sixers remember fully is fully is a football fully is a football town good upcoming year you bet how he roseman knows how to do it all right how he roseman knows how to do it all right let's go to work okay back to bit i'm calling about new tenon well the tenon is a perfect enterprise software company for the moment because it's cloud enterprise software and that's what people want it's very expensive but it's going to keep going higher i think how about chappin florida chappa hey jim how are you i am good how about you i'm good hey okay talk i'm looking at is also new a few weeks ago you labeled expect i'm wondering uh if you change your mind with all one well no but you know it's not bad that it's spec i'm literally saying that it's one of those situations because it's not making any money and losing a lot of money that you have to expect the fact that if one of his drugs fails then he's going to get hit that's a good vision to expect for me not that it's a bad company but that it's much higher risk than the company has continual earny streams and that's exactly how i still feel about it let's go to david and mazore david hey jim how you doing i'm doing great well did but we're club members and our first time caller and we appreciate what you do for the little guy thank you man i hope you like my piece this weekend spend a lot of time one right here we're calling about tv i energy yeah this is a refiner of a lot of the different chemicals that my friend rusty brazil writes about all the time uh i think that the cycle could be turning against them i'm feeling that way because of when when we had agco one and i am concerned that that dividend is is going to prove to be a value trap let's be very careful cvr how about jarred and washing jarred jimbo fly oh yeah huh yeah man what's up jim he has reported another great quarter last week and with perks hours latest comments on the capitol about to hit the utility sector in the next five to ten years these guys do it all man what do you think a quanta oh my god they're so good isn't it incredible this is such a terrific company and i always say let's get in though let's get in and we don't uh and let let's take and that ladies and gentlemen's conclusion of the lightning round the lightning round is sponsored by charl shwab coming up a latte a burger and some can't miss consumer clues food for thought on the earnings front win mad money returns the big retailers haven't reported yet but the smaller ones have already taught us an important lesson if you're trying to get away with maintaining high prices here you gotta lose customers for our view operators are ever willing to admit their prices are just too drunk high if you acknowledge them without doing any battle you're setting yourself up for disappointing numbers going forward bye bye bye no it's not easy to figure out who can get away with keeping prices higher chipotle pulled off because customers think it's worth it something you hardly ever see we heard brinker the parent of chilis tell us about the success they've had with what they call barbell strategy offering lower price items for more value conscious consumers and premium items for more affluent customers good as the co kevin hockman for not making an either-world proposition that was a good idea his stock keeps going higher now yum stock guy did because it wasn't but it wasn't because of Taco Bell they offered some outrageously cheap food the cravings value meal with 10 items under three bucks that looks like it did great some of the other divisions not as good but mcdonald's failed the test because in my opinion the burgers now cost you much they just caught up in price so much in 2019 so they don't come off as a bargain something at the home office has to know but the franchise you seem reluctant to admit i know starbucks disappointed their coffee might be too expensive which is saying something because it was always pretty expensive but nobody seems willing to own that idea there's this appointment all around including from former ceo Howard chilis not on the board though i'm not hearing anyone talk about rolling back prices at starbucks they just seem to want to add more menu items which i think would actually lead the worst throughput another unacknowledged problem among many owning this one for the travel trust has been nothing short of a brutal experience what else okay this morning type some food set is it's prepared food business which is seeing 20 percent cumulative inflation over the last three years has now become two prices from any americans causing the company to struggle with its earnings that's why that moment's hit so what does all this tell us as we head into retail earnings season i think the takeaway is that americans want what walmart and costco give them a very low price that rolls back their own house brands to levels that feel like bargains again walmart's created a new version of its own brands that offers less expensive prices cost goes always been a bargain i think both will do well now i'm not sure how the market will react to target macy's or Nordstrom target us this terrific house brands they billions of dollars they sell but they and they do offer real value but i don't know if that's enough given how much the stock is run that said target yields almost 3 percent i bet i'll be viewed as enough for bargain that people will be joined to it Nordstrom flirty with the idea of going private but i wonder whether it has the cash flow to get a deal done macy's i find is the most intriguing they've added two board members at the suggestion of a suit or our cast the question is does that end up possible 24 dollar takeover bid that had been widely talked about you know it's really not clear but i do know this if it weren't for the activist muddying the story i think the company has made a case for affordable luxury with bloomy deals and current CEO tony spring who hails from the bloomy sales division i'm guessing macy's will be given some time here to work some magic last two dollar stores they're very confusing dollar tree and dollar general these two are known for lower prices but when people think they're as cheap as the prices of walmart or cusco is the price of cusco's membership too high for the dollar store shoppers that's what i'm thinking well anyway that's out to be cheaper if you can afford the upfront payment believe me hey you know what so does walmart but the dollar stores are always able to offer something that can match or exceed walmart when it comes to lower prices on individual items hey here's a real oddity whim sonoma reported excellent numbers and it's certainly not the cheapest in his category that's wayfare but like chipotle whim summits regardless of high quality brand and that's what people want in the end i think retail still the ugly docking versus travel leisure people don't want to spend money on physical items unless they have to but even then they're going to be more frugal even if it means getting a lower quality hamburger or a latte i like to say there's always more market somewhere i promise i'd find just for you or your mid-money i'm jim cranberry see you tomorrow last ball starts now all opinions expressed by jim cramer on this podcast are solely cramer's opinions and do not reflect the opinions of cnbc nbc universal or their parent company or affiliates and may have been previously disseminated by cramer on television radio internet or another medium you should not treat any opinion expressed by jim cramer as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his opinion cramer's opinions are based upon information he considers reliable but neither cnbc nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such to view the full mad money disclaimer please visit cnbc.com forward slash mad money disclaimer cnbc has quick and easy to understand business news updates at the open mid-day and close every weekday markets money and more from wall street to main street i'm cnbc's jessica at engoor follow and listen to cnbc business news updates wherever you get your podcasts