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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 5/24/24
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I'm here to level the playing field for all investors. There's always a more market somewhere. And I promise to help you find it. Man money starts now. Hey I'm Kramer. Welcome to Man Money. Welcome to Kramer. I'm gonna make friends. I'm just trying to make little money. My job is not to entertain but to educate to teach you. Hey you're all about it. So call me at 1-800-743-CPC, tweet me to Kramer. Next week. Okay. Right now. I'm the clarinet and Nvidia Free Zone. The covers are from trading. This thing's gotten too much even for me. We have to be able to focus on something else. It seems the market only has the ability to focus on one stock at a time. And that's why I own a day. With the Dow inch up four points, S&P game points have no percent. But the NASDAQ jumped 1.10%. I'm thrilled that we can actually look at other companies. Even if they don't make you sell your computing chips, they'll either perform generative AI or infers. What? And be trained. Don't get me wrong. Even after Nvidia's bucked the gravity of yesterday's sell-off went up again today. I think it has had much higher, which is why we enter for the travel trust. And I always tell you to own it, not trade it. But I think we can afford to give some other companies a little limelight. We'll love without betraying the AI Colossus that I like so much. Fortunately, we have some very exciting companies reporting next week. Ones that revolve around whether the consumers fatigue, maybe taking a break, trying to figure out what to do. We're not quite sure. On Tuesday night. Okay, here's what happens. The holiday short and week, which is terrible because I celebrate the holiday everybody else. But I'll be planning, but I will also be doing the show on my sleep on Monday. Tuesday, here we go. We find out if Kava, the Mediterranean sensation, is deserving of its stocked 93% rob year to date. I mean, after all, Kava sells food.high-end semiconductors. But this has been banded about as the next Chipotle. So let's see what this Mediterranean restaurant chain has to say. Wow, what a monster. Okay, while we're at it, on Wednesday, we have to ask ourselves if Abercrombie and Fitch deserves to be up 70% for the year. It's got the right look, its stores are always packed, and it's eluded the athletes it deserves. Lately, though, I've heard people talk about how Abercrombie stands out. Oh, its stores are always packed. I guess it only took a monster run of $30 to $150 over the past year to make the difference. 30 to 150. How's your index fund due? Sporting goods, it's been a pretty hot category of late for those broad-line stores. That I've never reported. Which makes me think that decks could have another good quarter, even as the stock's already nearly up 30% for the year. Now, it wouldn't surprise me if they actually put up some terrific numbers. I'm looking for some good golf numbers, too. I just mentioned a lot of non-tech companies with stocks that are doing very well. But how about an AI-centric enterprise software play that has historically put many other stocks to shame? How about sales for us? With a stock that's only up about 3% for the year of Abercrombie, isn't that incredible? Of course, in this business, people assume that if it's a stalled tech stock, then it's an accident waiting to happen. I think Salesforce is doing many things right. But it's not getting credit for them. Let's see if this streak changes. Oh, get this toast. You go to a restaurant and they put it right into your face and you put your car right in. That's toast. Okay, toast has an investor day Wednesday. Lately, we've been hearing that things have slowed for the restaurant because of the number of customers. If toast can dispute or disprove that, this stock is going to fly. Thursday, our investing club meeting. There I am. It should have Jeff Marks in there, too. We've got to fix that. Get your questions to me and Jeff, and we're going to stay as interactive as we can with other members. Do your initial finance interact with you? Maybe your index fund interacts with you. No, we do. We can be at a noon. I want you to join. Now, Thursday's also filled with important earnings, mostly of the retail variety. When the consumer stretch, you're supposed to buy the stock of McDonald's, of Dollar General, DJ. And I see no reason why that doesn't continue. I look for a good number. I like it here. Same goes for Burlington stores. The off-priced chain is a little more pipe-wracking. Ross stores and TJX both put up tremendous numbers. I expect nothing less for Burlington, although I do think it's a little more down-scale. TJX, Charitable Trust Name, had an amazing quarter. Nobody cares because yesterday was such a bad market. Now, so we didn't get credit for it. I still think it's a terrific stock at 1.02. There are two challenge retailers that my Charitable Trust is positioned in and I'm not telling people to buy right now. I don't expect anything good to happen. But we're sticking with them because with the Trust believes that you have to be in early to anticipate the turnaround. I'm talking about Best Buy and Foot Locker. Both stocks act terribly as I would say in my old hedge fund, which tends to mean that they're going to have some shortfalls. Probably will. Mary Dylan, CEO of Foot Locker, has prepped us for a tough quarter. Best Buy will be the recipient someday of the new wave of PCs with integrated AI come the fall. We want to get ahead of that because once they're in the stores, I don't think you'll be able to buy Best Buy at a 5.3% yield, which it has right now. Because of AI, we should have the biggest PC refresh cycle in history, okay? Maybe even bigger than 90s. So I want that Best Buy exposure. But against that trend is the Home Depot, Lowe's conundrum. A lack of housing turnover and a lack of turnover has hurt the hard good segment of the US economy and could hurt Best Buy pretty badly too. Coles, all right, Coles has a difficult animal. It's rebranded as Coles was before and I bet that that will begin to click, perhaps with this quarter, bring your Coles cash. Cracker Barrel in the radar screen now, after the last week's Radical Analyst meeting where we got that huge dividend cut. I wonder if we can get a little more colors and reactions than the big changes when it reports this morning. I like what the CEO had to say, but Cracker Barrel will be a work in progress that we're going to chronicle for many years to cut. After the close, two Euro companies reported Costco and Dell. Now, I've found Costco in the big three of the retailers that's Walmart, Amazon and Costco. The Trust has a nice sized position in the stock and we believe Costco will report the kind of excellent number it will often does when the consumer goes sideways. As usual, if you don't own it, please now wait for the quarter. The stock tends to go down initially when it's originally important and rally it several days later. Why is that? Because you pretty much know how they're doing and it sells off one, just kind of non-news. Dell, I don't even know when this one will even pause. We have Dell envy at the travel trust, continually hoping it'll come in ever since we sold Michael Dell. Workhand and Glob with Janssen Wong, at the visionary CEO of NVIDIA at the GTG Conference. Talk about getting right with Janssen. Dell's become the man to see you to hook up your company to the new NVIDIA supercomputer platform also known as Blackwell. What else? Scabs stores delivered an amazing quarter last time and that proceeded to take off like a rocket and then kind of crash like going to. I think that there would be another great quarter but no crash. Next, lots of people are trying to find proxies for AI and Marvell text name keeps coming up. The semiconductor company that gives the equipment, they connect and get to the machines that devours computing power seems very interesting to me. And if the rest of the non-hyperscale business, a lot of it is just kind of plain old boring telco, starts turning up $100, marked by words. Earlier this week, we got some great numbers from ELF, ELF Beauty, remember that? They sent it stock into the stratosphere. Many people seem to think that somehow connected to the broader cosmetic industry. We'll find out when old's reports. But we keep hearing that old's not doing all that well because it's being eaten alive by Sephora. Well, I think old is a darn good company. I don't want to get in front of a potential freight train of selling here. Now, here's one that I take first link because I like it so much it's cloud clear. Can they make a comeback? It's been down in the dumps ever since that last quarter. When CEO Matthew Prince gets in front of that podium from yesterday, I suspect he can tell a better tell than he did when that quarter was reported. If he does, then I say you got to own this stock ahead of the analyst meeting because it's feeling real de-risk at these levels. I like it. Bottom line. Once the week's over, we're going to go full more NVIDIA again. We just need a kind of a week to recharge. Let me go back to focusing on the best stock that I have ever seen. It's been a total whirlwind move, but I remain steadfast. Own NVIDIA, go, trade it. I've got to start my home state, I think. Let's go to Alex in New Jersey. Alex. Hey, Jim. Alex, let's shake your thoughts. I want to hear your thoughts on a stock that NVIDIA invested in recently. Downtown hasn't moved much since NVIDIA's earnings report. And just wanted to see what you thought. Let's go with the recursion. Dr. Schill wants to say this about sound out. It comes over constantly in what we call the crawl. And it's just because NVIDIA put the money in and it has not meant anything. And I am not going to start making a mountain out of this particular molehope. Hey, you know what? Let's go to Milwaukee in Michigan. Milwaukee. Hello. Good, Jim. Thank you for taking my call. I really appreciate it. Oh, thank you. What's going on, my friend? Sure. I actually have a question about HPQ. This company, like, you know, it's been like 52 weeks high. And honestly, my question, my concern, we've been like, we see that stock is not making any improvement. I know. Well, it is straight up. It's straight up from 28. They do have the new AI PC. I think you could probably sell off. I don't know whether this is not with the breakout quarter when it reports. The next quarter will be breakout. So I think if the stock goes down, then you want to pick some up. It's not Dell. That's the main thing you need to know. Dell is best integrated when it comes to NVIDIA. And you got to get right with Jensen. All right. Listen to me. We need next week to recharge and then return. Hey, let's look at some other names besides NVIDIA. Although, of course, I'll keep it up. I will always keep one eye on that one. Oh, man, buddy, thank you. U.L. Solutions, remember the old underwriter Labs has soared since the safety science company went public last month, but nobody's talking about that. And tonight I've got the CEO to see what we can expect next from this new to the tape name, new to the tape. I just saw that. Then if you're shopping for a turnaround story, I'm digging deeper into Macy's report this week to see if the new leadership has found the key to success for the brand. And maybe it's boomies. Do not miss also another round of M. I diverse five where I talk to real people about real portfolios. Maybe we need to shake it up a little. Stay with Cramer. Don't miss a second of Mad Money. Follow @JimCramer on X. Have a question? Tweet Cramer. #MadMensions. Send Jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something, head to madmoney.cnbc.com. When you're hiring, the best way to search for a candidate isn't to search at all. Don't search. Match. With Indeed. Indeed is your matching and hiring platform with over 350 million global monthly visitors, according to Indeed data, and a matching engine that helps you find quality candidates fast. Use Indeed for scheduling, screening, and messaging to connect with candidates faster. Plus, 93% of employers agree Indeed delivers the highest quality matches compared to 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 3.5 million businesses worldwide that use Indeed. Listeners of this show will get a $75 sponsor job credit to get your jobs more visibility at Indeed.com/MadMoney. Just go to indeed.com/madmoney right now and support this show by saying you heard about Indeed on this podcast. Indeed.com/madmoney. Terms and conditions apply. Need to hire? You need Indeed. Roughly six weeks ago, a safety science company called UL Solutions came public at $28 per share. Hey, this one, wow, popped up on my radar screen because since then, the stock sort of was 50% to just under $42. And when the company reported his first quarter out of the gate earlier this week, the results were pretty darn strong. So it's just the beginning, or do we need to worry that the stock's gotten overheated? Why don't we take a close look with Jennifer Scanlon. She's the president and CEO of UL Solutions to learn more. Ms. Scanlon, welcome to Mad Money. Thank you, Jim. It's such a pleasure to be here today. Well, we're thrilled to have you. You have a story name. All of us grew up in my household and many others knowing that if we saw your good-house game seal, seal of approval, it was the real deal. Now, we knew you as a nonprofit. That's changed. And it looks like that you're making a ton of money and nothings. I just say that it's still the most pristine name in the business. So tell us the evolution of what's happened here. It is such a great story. And we did. We were founded here in Chicago as a not-for-profit 130 years ago. And fast forward to 2012, we became a for-profit company under one shareholder, the not-for-profit UL Standards and Engagement. And we decided that the best answer for all of us was to take us public, which were thrilled to be a newly public but not newly profitable company. Okay, so why don't you go over. There's some very defined areas that you're involved with. But go over the UL Solutions overview with the revenue breakdown, which I think is interesting. It's a consumer, it's industrial, it's software and advisory, and testing inspection and certification, which is obviously really important. It's absolutely important. And it's our mission to work for a safer world. And we aim to be our customers most trusted, science-based, safety, security and sustainability partners. So we test their products, and then we provide software and advisory services to help them ensure that their products are certified and inspected and safer than they otherwise would be. So almost half of our revenue, 40 plus percent, is for customers in the industrial space, business to business. The other ones are the customers working in the consumer space, business to consumer, and our software and advisory segment supports all of those customers across 35 industries that we serve. One of the most fascinating things I thought about you guys, big business in a place that a lot of people might think is not really concerned about safety, but it's really the opposite. China. Oh, absolutely. You know, we've been in China for over 40 years, and China is important to the world's manufacturers. I mean, they're 30 percent of the world's manufacturing. And many of those manufacturers are looking to get their products into a North American market or a European market. And we're there to help them do that by testing and helping them prove to their customers that their products are safer and compliant with safety standards all over the world. Now, we're talking about people that understand 80,000 customers around the world. And I know that from what I can tell, you've got, I mean, I don't know how we can, we can grade these things, but your retention rate among your top 500 customers is kind of extraordinary. It is because the great thing about our business is when you certify a product, you need to have ongoing certification services for the life that that product is in the market. So we have over a thousand field engineers visiting every single one of our customers, manufacturing locations, multiple times a year to help protect our customers and their manufacturing processes. Now, I also know that you're doing, and you're totally up to date, one of the things that I spend a lot of time with when I'm out at NVIDIA is the digital twin. And I've always tried to figure out this digital twin manufacturing. How do we know if it's any good or not? You are literally redefining certification because you're actually, you're actually grading a digital twin from Siemens, which is the number one. Absolutely. And, you know, Siemens is one of those customers. They've been a customer for over 50 years for us. And so we were thrilled when they came to us a couple years ago and said, hey, let's work together and think about how they can improve the speed of their innovation process on a complicated, expensive prototype. And so having that simulation, that digital twin in place with the application of all of our safety standards and our technical leadership associated with that digitization really allowed them to go through that prototyping process faster. Get their product to market faster. And then the exciting thing is when they go to the all new and improved next round on that product, we've already done the bulk of the work. So we were thrilled to be by their side on this process and look forward to doing it with many of our customers. That is the most cutting edge technology in the world today. How does UL solutions have people that know how to do this stuff? Yeah, we have thousands of people who are technical leaders. In fact, two thirds of our 15,000 employees have some type of technical certification. And a significant number of those people over a thousand are in our software engineering and digital organization. So the combination of our team who understands how to digitize those safety standards and safety tests combined with Siemens team who starts with their own digital model. It's a great exercise in both sides working together, coming together and achieving a result that's beneficial to get their products to market faster. One of those questions I had about the ownership structure, will the big owner be periodically peeling off stock or is that something that you would not know and they just might do it and they might not? Jim, this has been a public company CEO before and I have learned you don't speak for your shareholders. So they get to make their own decisions at the right time. But certainly there's great strategic alliance with our parent company. We have a single mission working for a safer world. We were founded to do research on safety science, standards, public advocacy and then test products for customers. It's a great enterprise and we're really proud to be the commercial arm of it. Well, you've been a terrific public company so far and a very exciting story that I can't even know until it wasn't put in front of me. I did say to my staff and said, "Oh my God, it's underwriter laboratories. That's a good housing museum approval." The real one and it still is. I want to thank Jennifer Scaling, President CEO of UL Solutions ULS. It was really great to have you on. Thank you for talking about your company. Thanks, Jim. Very good. May I might be back here for the break. Coming up. Department store redemption. Kramer crunches the numbers on Macy's turnaround. Maxed. Norman, we need to pause this surgery. What, doctor? Because Xfinity Mobile just got even better. Now you're automatically connected to Wi-Fi speeds up to a gig while you're on the go. Plus, Xfinity Internet customers can buy one unlimited line and get one free for a year. Visit XfinityMobile.com to learn more. Offer N621. Restrictions apply. Xfinity Internet service and two new limited lines require. Reduce speeds after 30 gigabytes of usage per line. Data threshold is very. Actual Wi-Fi speeds very not guaranteed. We know this is a tough environment for most retailers. We see that over and over again this early season. According to the conventional wisdom, the department store should be getting hit the hardest. But something surprising happened on Tuesday when Macy's reported tremendous beaten raised quarter. That sent the stock up 5% in a single day. More important than the quarter, Macy's management told a great turnaround story. Remember, this was the company's first full quarter under the leadership of Tony Spring. We took over a CEO in early February and was appointed chairman in April. Before the promotion, he ran the incredibly successful Bloomingdale's division. This was also the first quarter after Macy's reached a detente. With R-Calc's management, that's an activist fund that teamed up with some other firms to launch. What I can only describe is a combination takeover bid slash proxy fight with Macy's board. It was all very confusing. R-Calc's did get two board seats in April, but it's a really big board. The group still wants to buy the company. Their last bid was $24 per share in March. Although the company has cast out on their ability to get fine seats at that level. It's all very strange. With all of that going on, this felt like a make or break quarter for the new management team, and they definitely made it. Macy's company-wide comparable store sales declined by 1.2% while she was looking for down 3.1%. When you look at only Bloomingdale's comparable stores, their sales were up 0.8%. Blue Mercury. That's their cosmetic business. That was up a strong 4.3%. Overall, total revenue came in a bit better than expected and lower, selling general administrative expenses more than offset. A slightly weaker than expected. What they made after subtracting the cost of goods sold. That translated into an impressive earnings bid of $0.27 per share, and it was only expecting $0.17. That's why the stock really popped. On top of that, Macy's gave you very encouraging guidance for the current quarter, and slightly raised its four-year forecast when nearly every line. So how that could be pulled this off? When you read through the conference call of transcript, there were a couple key highlights. First, Macy's plans to rationalize its store account, then invest in refreshing locations that tends to keep open. At the end of last year, the company had 718 stores, including 502 Macy's band or locations. But as part of Tony Springs' turnaround strategy announced in February, they're going to close, that's right, close, 150 of the worst performing Macy's stores by 2026, including 50 this year, which will allow them to focus their investments on the ones that remain. You don't throw good money after bad in the retail business, you put it where the good is. I think it's a smart plan. I think it's a bold move to cut bad on stores that just weren't working and really didn't have a hard... I don't know how you would ever turn them around. Now, as part of the rationalization effort, Macy said it would start by updating 50 of the good stores. You know what they call it? The first 50 program. It's basically a pilot program. They want to figure out what works and what doesn't, and then apply those lessons to the other 300 locations that they plan to update. On Tuesday, we got our first report card on this first 50 program, and boy, I got to tell you the whole A's. While the overall Macy's band are so comparable, stores sales down 1.6% down, those 50 stores being updated had comparable sales of up 3.3%. That's a very big delta on the conference call. Tony Springs explained exactly what they're doing with these 50 that are really working. In hand, it's merchandising. Roll out some more elevated products, new marketing pilots, not to mention engaging live events. Additional services like personal stylie sessions, fashion shows, beauty services, all which produce a traffic and sales. It's working. That promoter scores MPS for the first 50 locations improved dramatically. Overall, it's a very encouraging start for the Macy's turnaround. I like that. The second pillar of the new strategy is to, when I quote, "accelerate luxury." Meeting management wants to improve luxury sales at Macy's locations, especially the first 50 program stores, and grow the company's other two banners, the upscale blooming dales and Blue Mercury, which is their high-end cosmetics and skincare concept. In terms of luxury sales, Springs said that customers were responding well to higher-end brands that Macy's either introduced for the first time, or gave expanded distribution to, and there were a lot of new ones, so I looked them over. I was really surprised. As for blooming dales and Blue Mercury, they are doing very well. Springs said that, and I quote, "The power blooming dales position in the upscale market is its diversification, of course, categories and price points, allowing it to gain wallet share even as there are shifts in popular brands and categories." End quote. Blue Mercury, meanwhile, had its 13 straight quarter of same-floor sales growth, driven by continued strength in skincare and expanded distribution for popular beauty brands. I like the core Macy's brand, where management is eager to shrink the store count. They're actively looking to grow both blooming dales and Blue Mercury, but not in any sort of runaway fashion, which is good. Why shouldn't they put more on the numbers, so that's great. Put it all together, and I believe Tony Spring can deliver on plans, especially when it comes to making the Macy's banner more upscale. Remember, this is the guy who previously ran blooming dales, or upscale department store, which has been very successful for a long time, even when the rest of the business struggled. The flagship blooming dales and the upbreed side is so popular that there's often a line to get into the joint. Tony's now unleashed his luxury expertise on the entire company. I think it's a smart move, especially at this particular moment, when the consumers' weakness is mostly isolated to lower end shoppers. You don't want to be in the business of cheap apparel right now, not when you have to deal with ultra cheap competition from Asian discounters like Temu and Shein. There's a third aspect to Tony Spring's turnaround plan. He wants to simplify and modernize the company's end-end operations. Basically, back off as cost savings. I thought they had already done this. I don't know. Basically, digital operation is under new leadership, but there's progress being made there, too. This quarter we saw they're doing a great job of cutting costs. Several analysts quit off the expense control as a highlight of the quarter, even as it believes in all that sexy. Listen, it's early days for the Macy's turnaround. Tony Spring's plan was only announced three months ago, for heaven's sake. It's going to unfold gradually over the next three years. I'm sure there'll be highs and lows along the way, but this week we heard about a lot of progress in the initial few months of that effort. And I got to tell you, I'm feeling really good about Macy's. I mean, really good at this price. By the way, don't forget about that arc house takeover temp, which is still ongoing, even if it's somehow kind of on ice for now. I never recommend a stock solely based on takeovers. That's a fool's game. That doesn't hurt them to have weight in the wings if it doesn't go right. Bottom line, I see multiple ways to win with Macy's. Either the Tony Spring keeps pulling off his ambitious turnaround, and I believe he can do it. Or someone else comes in and buys the drawing thing. Remember, arc house and its compadries over $24 per share, which is up almost 20% from the stock's totally trading. Nobody believes that Macy's will sell. They shouldn't. But the fact that the option may be on the table gives you a nice fallback if the turn follows. Let's go to Phillip in Alabama. Phillip. Hey, Jim, this is Elizabeth. Phillip, Mom. We're on vacation in Lake Martin, Alabama, but Phillip is, of course, thinking about a stock profile. So here's Phillip. Phillip, how are you? Good. How about you? I'm doing fine. Thank you for asking. What's shaking? Well, the other day at school, I got in trouble for looking at stocks. But my research led me to the cheesecake factory before I got kicked off my computer. I like the almost 3% dividend and current revenue growth. However, my dad is fearful of restaurant stocks. Do you think I should invest into the stock or go outside and play? Holy cow, first, we're going to discipline that teacher who obviously doesn't have a clue about where you're going in life because I can tell you you're going far. Cheesecake factory has just come back down a little bit. It's also 11 times early. It's got that great yield as you pointed out. It always surprises me to the upside. I think you should own it. I think it makes a lot of sense. And I got to tell you, I'm going to pay you my highest compliment, Phillip. You got horse sense. Let's go to Lori and Illinois. Lori. Hello there, Jim. I'm just wondering about Chipotle. Do you think that it is going to do that 5150 to one split? And do you think it's still a good buy as it is now? I think it's a great buy. This split is going to bring in more people. By the way, with main reason they wanted this split to just be really clear is they want to be able to compensate employees with actual stock. And not just like a quarter of a share, which is really smart. The guys who run this company, I'm talking about Brian Dukal Jack Harts and they're about as smart as I've ever seen. And I think it is a buy right here. No, a strong buy. You've got a winner. Let's go to Joel and Florida. Joel. Jim, a good afternoon. First thing I want to say is I'm a member of the Best in Club and it's the best money I've ever spent. Yes. I've been listening to you for 19 years now. Warren, one thing. You're not a financial advisor. You're a financial educator. That is so right. I have and what I can pick up from you and other sources, you've changed my entire life. I'm writing this. I can't thank you enough. I had an existential crisis going into this weekend because I'm saying, "Listen, I want to guard so badly today." And then I'm so glad I did not take the day off because I would not have gotten your call. So I completely am so thrilled that you called Joel. How can I have to help? I really understand. Some of the things in my investing, I hate to sell certain stocks and I hang on to them. Well, I've hanged on to Adobe for almost 20 years. And it's been quite a ride for the last 20 years. Recently, you don't hear too many people talking about Adobe. Well, all the other AI things and so on. And yes, that's come off quite a bit, but, you know, it's still a great company. And I'm just wondering how you visualize Adobe along with all the other... Okay, I think there is a crisis. You know, to me, there's a difficulty in Adobe. I mean, let's take my Parsons daughter, the designer. I mean, she switched to, you know, she has the full suite. She couldn't afford the full suite. I bought it for her. She was using Canva, which is not as good as Adobe, but the Adobe suite costs a lot of money. And I think that's what Adobe has to wrestle with. It has got a very expensive, but by far the best product. That said, Johnson and Orion is going to figure it out. I bank was shot to do. I think he's just very strong, and I really appreciate your comments that I meant it about. I'm so glad I didn't take the day off, because you just made my weekend. I see multiple ways to win by holding on to Macy's here, either through their ambitious turnaround efforts or... And then I hope not, because I went Tony Heppler, the runner that joined a potential buyer. Now, mad money. Lots ahead. We're going to play at my diversified. Save the portfolios with Craig Merrick, our position for success. It still matters to me as much as ever. Plus, where do we stand on the road ahead to lower rates? I'm revealing some signs to keep an eye on. And the order of call is wrapping fire in tonight's edition of The Lightning Round. So stay with Kramer. It's been a vulnerable, but I have these satisfying week for the major averages. And with the bulk of early season now gloriously behind us, you need to make sure your portfolio is positioned for what might come next in this market. That's why tonight, we're playing at my diversified. This is what you call me. You tell me your top five holders. I'm trying to give you a little discipline here. Maybe I say your portfolio is diversified enough, or you have to mix it up a little. I want to start my home state. Let's go to Joe in Jersey, Joe. Hello, Mr. Kramer. I'm getting ready to do some surf fishing for stripers at Island Beach State Park tomorrow. I know you like the fish. Well, I'll tell you what, I'm going to catch the ones that you throw away, and I'll throw them away too. Because I cannot quote one that is 36 inches in the last five years. Let's go to work. Okay. This is my mother's portfolio who's 87 years old, and I met her account. And these are her stocks. Procter and Gamble, Coca Cola, Fisko, Verizon, Berkshire Hathaway B, Jim. Is she diversified? Man, 87 year old and just smarter than 99% of us here. Procter, you know, it's a terrible trust name. Fantastic consumer product company. I do not regard it the same as Coca Cola. They are different. But this is a food company, food and beverage. Fantastic, good yield. Cisco, that's Chuck Robbins. Again, good yield. I do think that the Splunk deal is good, and the stock should have been higher after the last one. Berkshire Hathaway, no one's ever gone wrong with Warren. And then Verizon, I actually one put in another one and said, listen, you do have to mix it up, because I don't regard them as being a good enough utility for you to own. Or utility, consumer package, good, soda, tech, and insurance, and diversification. That is perfect. First by company, it's own right. Now we're going to Tom in California, Tom. Oh, yeah, Jim. What's up? Yeah. My holdings are Tesla, Amazon, Thermo Fisher, Contour, and Coinbase. Wow. My diversified. This is an interesting portfolio. Let's take a look at it. Alright, Thermo Fisher is a scientific device company that is so good. We like to end her, but there's nothing more with Timo. Tesla, you know, I tend to look at this company now as more of a, I'd say, an autonomous machine company. That's the way, an autonomous machine. Contour, we know that's Lee and Wrangler. I love my Lee jacket. When I put it on, I feel like I'm a man of steel. And Coinbase, yes, it's a company that does the, you know, it's a bank account for, mostly for crypto. And then Amazon is the world's greatest retailer, but also the world's greatest cloud computer company. And it's just amazing. So we're going to put that in tech. We'll put this in scientific device, autonomous machine, clothing, and finance. Bingo. Great portfolio. Great portfolio. Now we're going to go all the way back to you. Holy cow. My head is spinning. Let's go to Rocco in New York. Rocco. How's it going, Jim? Rocco. This is just a great day because I'm planning my tomato plants tomorrow. So this is a great day. It's the eve of planting. How can I help you? It's also the eve of my dad's birthday. Happy birthday, Jim. Happy birthday to him. Long time bad money watcher, him and me, but my five stocks for you are, it's KKR, Reddit, Waste Management, Shake Shack, and Meta. Oh, maybe some--our staff's put together some great people. And of course, great people call in. So they don't have much to do. No, they do. They have to do a lot. Okay, Meta's Mark Zuckerberg's coming. It's tech. Reddit is communications, and it is super. I was a one-year-old day today. Shake Shack, obviously. I'm just a great--I mean, vastly improving fast food company, which let's just call fast casual. KKR is an amazingly good private equity company. It and Black started it too that I'm recommending. And then WM, what can I say other than Tamu and Sheehan, which I tend to end up there. I think they do a fantastic job. They do a great job even when they have to dispose of those. So this is a waste disposal company that is fantastic. Second none, fish doing a great job. Private equity, dining out, communication, and tech, and that is perfect diversification. We're three for three so far. Let's press our lock. Let's go down to Greg in Florida. Greg. Hey. Hey. This is my favorite segment of your program. I really-- Oh, thank you, Greg. I'm so good at your work. So the callers appreciate the incentive to their portfolio. Yeah. And people like to--you know, people like to be on TV, and I love it when they are on. We're the only show on the earth left that puts real people on. And here we go. Let's go to work. You are very correct. My five stocks today are Broadcom, Chipolke, Deckard's Outdoor, Goldman Sachs, and Critical Gym. And my diversified. Wow. Wow. Wow. Man, this portfolio is so strong. Okay, Broadcom, we know that is going to be--actually, the best stuff that it does in tech is with NVIDIA as a partner, but it also does a lot of stuff on cell phone. Chipolke is the finest restaurant chain in the country. Sorry, breaker. I love you, but it's true. Deckard's is both Uggs and Hoka, and they had such a quarter. It was a block quarter on so many different levels. Vertex is CF, but they also have an anti-pain company, anti-pain formulation that is not happening for me, which is really amazing. And then Goldman's been the best performer of the finance. We got finance, we got tech, we got restaurant, we got clothing, and we got drug. That is the picture perfect portfolio, Greg's portfolio, rocks. It's just rocks. But you know what? We are so not done. We are now going to go to Lori in Connecticut, Lori. Hi, Jim. Booyah! Booyah, Lori. Let's hit me. Thanks for taking my call. I'm a long-term watcher of the show. Yes. Thank you for all the hard work you do to help your watchers make money. Thank you. That's what I want. You want? That's what I want. I didn't start out with an investor. I'm going to be shopping each other. Let's go to work. My five stocks are Amazon, Honeywell, AMD. Microsoft, Eli Lilly. Am I diversified? All right, Lori asks a good question here. Now, we're going to let Amazon be a cloud computing company, accelerated cloud computing company. Honeywell, diversified manufacturer that we own for our travel trust. Eli Lilly is probably, to me, the number one drug company in the world. Now, this is what's important. Microsoft and AMD, we're going to have to make a choice here. We can't have both. We're going to have to say we want to keep Microsoft travel trust name. We're going to have to go with AMD and what we'll do, why don't we put in something that's just I've been looking at all day, okay? Let's put in Union Pacific because that stock has come down far below where it should. It's just a nice change. You add a transport. I think it'll be a nice mix if we do that right here. You know what? I can't believe we're done. We had such unbelievable portfolios. It makes me feel so great. And thank you very much for saying that it's just a great thing that we do. We do it for since 2001 and I'm never quit. May I have money back then? Coming up, hit us with your best shot and electrified, fast fire lightning round is next. It is time to start the flight round. And then the lightning round is over. Are you ready to keep that flight round? Let's start with all day in Ohio, hold on. Hello Dr. Kramer. Yes, how are you? I've been listening to you for many years. Thank you. Do you, do you remember that familiar sound of Polish Wojowski? Yeah, yeah, maybe. Awesome. I don't know. We'll go ahead. Yes. I have been watching you for many years and you are great for the little guy. You keep us going. You're the only one. I'd like to know what you think about Moderna. I still think that Vansel has it. I really do. I've been thinking this since '80 and I'm not backing away even though it's up here and thank you for the kind words. Alexander in Georgia. Alexander! Mr. Kramer, it's great to be off for a second time. Oh, there you go. Number two. Number two. What's happening? Absolutely. I'd like to gauge your thoughts on a company executing a roll-up consolidation within the United States mechanical, electrical, and plumbing sector. The company is Comfort Systems USA. What do you thought? HVAC is king. I like Comfort Systems. It's some of the facts I believe in. Yes. And I like that company. You go to Steve in Virginia, Steve. Yes. Light song to you, Jim. I'd like to know about Shaloko. I like Sinoco. I like this group. I would prefer to be ETP. I think that's the better one of them. The truck looks bad. I think it probably stops you at 7%. Let's go to Linda in Florida. Linda. Hi, Jim. Linda, what's up? I'm like talking to you. Let's see. What's going on? Thank you. Yeah, I'm calling about a diversified company that has its hands in A.I. and has been posting great numbers and rising fast. But what do you think of Celestica? Oh, my God, they're terrific. They're like Jim. They're going out into the front office problems. It's just a great situation. What a comeback. It's been kind of in the wilderness for a long time. And now it's back and it's still inexpensive. And you've got a hunter in South Carolina, a hunter. Hey, Jim. This is a hunter, obviously, South Carolina. I was just going to ask you a question. Sure. I bought into EMC around $2.99, and I wanted to know if you thought that I... bought a first-class ticket on a rocket ship to the moon, or if you think I should sell this kitty right here? I want you to sell. Take your capital out, and you can play to the house's mind of the rest. The balance sheet even to the most recent sell of stock is not good, and the box office numbers are horrendous. So take out your cash, let the rest run. Now I'm going to go to Margie. I hope I pronounced that right. It might be Margie in Connecticut. Margie. Thank you, Jim, for all your investing wisdom over the decades. Thank you. I recently made a small purchase in uranium energy. I'm not in uranium heat, but I'm wondering if this is a reasonable choice or if there's something better in this arena. Which one is it, Eboard? Oh, I'm sorry. UEC. Oh, no. Eboard's one, I'm going to recommend it. I think you've driven it. By the way, I think that Bernova is really good, too, GE. They also are very big when you do. Let's go to Julianne, and of course, constellation energy. Julianne and Florida, Julianne. Hi, hello Mr. Jim Kramer. It's great to be able to speak with you this evening. Oh, I'm so glad you called. I'm so glad you called. What's up? Thank you so much. I wanted to know your take on the company and the SAG. Inspire medical system. OK, now this is a company that should be making a lot more money than it is. We have to wait and see whether they can make money before we recommend it. And that, ladies and gentlemen, conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, don't be a one and done researcher. Kramer shares a strategy that'll keep you calm. Next. Everybody wants to know if the economy is running too hot, or if it's fine. That's the key to the Fed's next move. But we can't come up with a new verdict every darn day. We can't let a single iron brushstroke destroy the whole painting. Yet that's what's happening right now. Yesterday, we had one piece of data. A gauge of service is a minor issue, by the way. And it was a little too strong. It illustrates immediately shot up, and then stocks instinctively went down. By the end of the day, turn the balloon around. One of the worst that we've had in a while. Tons of money vanished. Just plenty of people once again figured forget the Fed. It's not going to help us this year. To which I say, enough for it. I came up with a brown shoot indicators because I want us to base our judgment about the economy on what I call the preponderance of evidence. And the preponderance says the slowdowns coming. We've seen a bunch of signs that show it every day, not every sign. But many more signs than a few months ago, which is what matters. So stop freaking out. Like yesterday, and wake up the idea, the economy's not going to go from full bore inflation to deflation overnight. It's a bumpy road. We have to continue weighing things, but not to the point where a single data point kid is not everything. It's also been happening. Am I some dreamer betting that if we get enough brown shoots, the Fed will change this tune? Not at all. I believe that the economy runs on employment. As long as we have such strong employment, the Fed really can't get out of leaving interest rates higher for longer. The brown shoots that I've been looking at from bankruptcies to freight rates to new food business formation to food prices coming down. These are all about one thing, predicting when the layoffs will start. A slowdown doesn't start with layoffs. It starts with the decline in new businesses. People who are thinking of expanding, people who want to open a new company. They're the first ones to react. They're the first ones to pull back. Ladies and gentlemen, we're getting them. We're starting to see signs that small businesses have gotten wary about anything where there's price resistance and retail, groceries, clothing, even cosmetics. People want the cheaper. They want the generic. They want Walmart over target. They don't want Lulu Lemon anymore. It's too expensive. They'd rather have a cheaper knockoff. But they're still traveling like me because COVID made us realize that life is too short and that's still with us. But what would make travel stop and why should we not worry about that? Well, the same thing we're trying to measure with. The brown shoots. The next step after the lack of new business formation is layoffs, is firing business closures. That's what needs to happen if you want the Fed to cut rates. We're going to see businesses fail because they couldn't get credit. We're seeing it happen right now in commercial downtown, real estate. We're seeing it happen in restaurants. I think we'll see it in retail in a few weeks. Once it starts happening, we're going to discover something we didn't think possible. Residential rent real estate vacancies. That's right. Actual rent coming down. Sure we got to dig us housing shortage right now. But when you can't, when you lose your job, you can't afford to rent. So you have to double up. Maybe you have to move into your parents. And that is how rents come down. Others may sell their homes anticipating a collapse in pricing. They'll move to units with less space. The homeboats will lose their discipline. Put them more houses. Just cash them before things go south. And there goes the final frontier of inflation. They can't repeal the business cycle. People in the brown shoots can't be denied. So stop worrying that one number can upend everything else that's happened. The fight against inflation is going the Fed's way. Stop obsessing. And for heaven's sakes, stop trading. Like I said, it's always a bullmuckus on my problems. I've had it just for you right here, man. Money, I'm Jim Kramer. See you next time. Last call starts now. All opinions expressed by Jim Kramer on this podcast are solely Kramer'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 Kramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy. But only as an expression of his opinion. Kramer'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/MadMoney. Norman, we need to pause this surgery. What, doctor? 'Cause Xfinity Mobile just got even better. Now you're automatically connected to Wi-Fi speeds up to a gig while you're on the go. Plus, Xfinity Internet customers can buy one unlimited line and get one free for a year. Visit XfinityMobile.com to learn more. Offer N621. Restrictions apply. Xfinity Internet service and two new limited lines require. Reduce speeds after 30 gigabytes of usage per line. Data threshold tiberi. Actual Wi-Fi speeds vary, not guaranteed. [MUSIC PLAYING]