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 6/7/24
At US Bank, when we say we're in it with you, we mean it. Not just for the good stuff, the grand openings and celebrations, although those are pretty great. But for all the hard work it took to get there, the fine tuning of goals, the managing of cash and workflows and decision making, we're in to help you through all of it. Because together, we're proving day in and day out that there is nothing as powerful as the power of us. Visit usbank.com to get started today. Equal housing lender, member FDIC, copyright 2024, US Bank. Homes.com knows that when it comes to home shopping, it's never just about the house or condo, it's about the home. And what makes a home is more than just the house or property. It's the location and neighborhood. If you have kids, it's also schools, nearby parks and transportation options. That's why homes.com goes above and beyond to bring home shoppers the in-depth information they need to find the right home. And when I say in-depth, I am talking deep. Each listing features comprehensive information about the neighborhood complete with a video guide. They also have details about local schools with test scores, state rankings and student-to-teacher ratio. They even have an agent directory with the sales history of each agent. So when it comes to finding a home, not just a house, this is everything you need to know, all in one place. Homes.com, we've done your homework. My mission is simple, to make you money. 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, America. I'll go to my friends. I'm just trying to make a little money. My job is not just overcame, but to educate NT. So call me at 1-800-743-CMC or TweetBeach and Kramer. Worrying job numbers. Not so worry, kitty. What can I say? This economy is creating jobs like there's no tomorrow. You think we've already had multiple rate cuts rather than none, and yet investors seem to think that the labor report didn't matter all that much, even as higher rates were right on its heels. I mean, the job was almost even more reassuring than worrisome, which is why I think the average is barely that thing. Down slipping 87 points, as it be, as you can down 1.1%. Now, as I decline 0.23%, look, this one could have been a disaster people. Given how interest rates flew up on the news, it wasn't. Oh, and as for roaring kitty, you can tell that Wall Street turned up its nose and disdain. You knew they would do that. Yeah, Wall Street wanted some sort of real show. If you watch it, all I can say sight-seers is, how would you pay for it? So what's on top for next week? Well, let's just go over here. Take a look. All right, look at this. Look at this Monday. It's an unbelievable day. It was supposed to be like a middle June. Nothing's supposed to be happening. Oh, no. It's gonna be Monday here. We have three important events for three of the biggest companies on Earth, and that's Apple, Nvidia, and Loy. Apple kicks off its annual worldwide developers' conference, and while it's rarely newsworthy, this time could be different, because we might get some insight into what's going on for both the Vision Pro and the iPhone 16. Our goal is to figure out how many people are writing important programs for Apple products. I know it's a tad pedestrian for us consumers, which is why the conference rarely causes stocks to run. But because we keep hearing that Apple's behind on AI, maybe they show us something that shoots down that negative narrative. As for the Vision Pro, we need to see if developers are trying to do anything special with it. Otherwise, people give up on the idea that it's anything more than a niche product. I think Vision Pro can still be huge, especially when it comes to building complex structures designing pretty much anything. My mantra is not change. Own Apple. Don't trade it. As for Nvidia, we're getting a Temple 1 split. Yeah, my experience is when you get a Temple 1, by the way. People tend to take profits on a couple of them, and let the rest run, so that's enough profit-taking temporarily to overwhelm the buyers. So don't be down if Nvidia gets hit on Monday after the split. It's just a psychology of the event. I'll keep 7, I'll sell 3. Own it, don't trade it. All right, now how about Eli Lilly? Very confusing story here. An FDA advisory panel will consider its Alzheimer's drug on Monday. I bet they'll be favorably disposed. Journalists have been writing and talking about this document that the FDA released yesterday about their Alzheimer's drug, saying that presented a very narrow view of the drug's use. Total misread of the situation. The document said the drug looked to be safe and effective. I think that sounds pretty positive to me, so I expect good news to the panel. That's it. We won't find out anything until the market closes. Panel's supposed to go till 5. Still, I have a positive read on the situation. I think this Alzheimer's drug could be huge if it gets approved, but nothing in your term. Hey, by the way, we own Apple, Nvidia, and Lilly for the travel trust, so if you want more in-depth coverage, we're going to be covering wall-to-wall, as they say, for members of the CNBC investing club. Next, Oracle reports after the close on Tuesday. Very, very-- let's call it a conundrum, all right? Because Oracle's spending billions of dollars to build up data centers, and Wall Street's reaction has been, let's say, schizophrenic. Last time, they called a story of aggressive data center growth at its well-received. Previous two quarters, they said the same thing, and it was poorly received. I think they can talk about going all out, and the stock will go higher, but we need to start rethinking about Oracle's $28 billion acquisition of Surner two years ago. This electronic health records business hasn't been doing too well under Oracle. My sources say that Epic, a private competitor, is winning lots of business business, I know I was hoping it would go to Surner. I am wary about any questions about Surner on the coffee school. Now, here's one that makes a ton of sense that doesn't usually pop up in the minds of New York and Wall Street people. Casey's general store, why this thing? I know it just sounds like I know like a seven-a-lev or some-- oh, oh, contrary. It's got a single weapon, a breakfast pizza that remains incredibly popular. Don't worry, it's eaten all day. But who doesn't want a bacon, egg, and cheese pizza for breakfast, or for lunch, or for dinner? I'm not kidding. It's been a home run for this 2,600 store chain that's in 17 states that most of the people in New York have never been to. Stock's been a total winner. Wednesday's huge. First, we get the consumer price index. In light of today's report, I got to tell you, the CPU guys probably going to come in way too hot, makes things tough for the Fed. Now, we'll hear firsthand when Jay Powell speaks at the conclusion of the Fed meeting later on Wednesday. He's going to still do that ridiculous Q&A, too. I hate that. I know that we've had some brown shoots, and I've reported them on you. Those are sides of weakness to make it easier for the Fed to cut rates. But with this extremely strong employment other we got just this morning, I believe the Fed will have no choice but to leave rates higher for longer. That said, both the economy and the stock market have done well with current regimens. I'm feeling pretty sanguine about higher for longer. I'd love a rate cut like you, but it's not at the expense of persistent inflation. By the way, that's how you should feel. We want persistent inflation to be stopped. At the close Wednesday, Broadcom reports ABGO. I'm looking for a big number for this travel trust holder. Broadcom has a huge AI component as they're never equating its essential for all these data centers, but they also have this other more prosaic aspect of its business, which is wireless. That's just been doing okay. If the latter were improved, then this stock would just take off from here. Otherwise, Broadcom is a really good situation, but not a great situation because they still have this major part of their business that's just not doing that well. Okay. Now, Thursday morning, we hear from Signet Jewelers, and the last time we reported the stock got crashed, even though their numbers weren't even that bad at all. Then it came right back. That puts us on notice. If Signet gets hit again, we might want to buy it. I really like CEO Jin and Drozo's and what she's been building. I want it. If it gets hit like that, bring it in. At the close, oh, boy, this is a tough one. Adobe reports. Now, we've got a highly unusual situation here as the stock's down 22% for the year going to the quarter. Down. This is an amazing company. I think Adobe's got a problem, though. In that competition from a design tool company, it tried to buy called Figma. Adobe needs to protect its price points against Figma, which is a price cutter. But Figma's taking share because it's so far, it's so much less expensive. I know Adobe's so much more than just this one product line, but the Figma competition is what controls the narrative. It should, I say, never count out Adobe. We also get results from RH, and that's the artist from the Notice Restoration Harbor. And last quarter seemed like a breakout after a prolonged period of disappointment. Stocks shot up huge, but then it came down hard almost immediately. What will take for RH to get out of this rut that it's in? As great as their products are, we know this business is levered to housing turnover, and we don't have much in this country. Probably the least we've ever had. I mean, I'm kidding in modern times. So, my prediction, there won't be much upside for RH until the housing turnover number increases. Finally, on Friday, a firm hosts a fireside chat, and I bring this up because this is this by-now-pay-later company. I think it's doing incredibly well, but it hasn't mattered to the stock lately because big institutional investors have no interest in financial technology when interest rates are so high, and less wealthy consumers feel so cash-strapped. I think the stock should be going higher, but I know the big money guys can't get comfortable with it. A firm stays right here, no matter what they say. Wow. Bottom line, I'd be careful making a big move before the Fed meeting. We can't be sure if J-PAL won't be more emphatic about leaving rates higher for longer, given this morning's hotter than expected job support. So, next week, lots of joy on, but not enough to pull the trigger, except for maybe that, Lilly. Anyway, John and Washington, John, will you add Jimmy Chil? Hey, how you doing? I'm doing good. Jim, Rivian stock price has been fluctuating since its IPO. Where do you anticipating heading in the next six months, let's say, towards the end of 2024? Okay. Rivian needs to have—they need to find some way to get a lot of money in without causing too much pollution, and I don't know how they do that. But I've got to tell you that I think that the decision did not spend all that money in Georgia was a wise one, and I think that it has got popular enough cars that something can happen there. But right now, they need more money. Let's go to Robert, New York, please, Robert. Hey, Jim, I just want to say, you know, why your show is top in the country and around the world, it's only one reason because you do your homework, and that's why you make everybody money. You do your homework. Well, I try to make—I try to make people money. You know, I make mistakes, too, but thank you. You're very kind. Thanks for that. I have mistakes. You've given maybe a stock here that has been flat. That's not a mistake because I didn't lose. So you may make a mistake, but not too bad. I got to say it. Oh, thank you. That's very kind. That's very, very kind. Thank you. Thank you, Jim. But you were very positive on this company on the morning of January 31st. And if everyone listened to you like I did on that day, they would be sitting on a return of over 28%. JP Morgan has this stock as an overlay at 650 a share. They have over 270 million, Jim, paid subscribers and building. And it's over $648 a share. It's Netflix. What do you think we should do? Oh, I like Netflix very much. I'm just convinced that they know how to make the great products that we want for the least amount of money. That's what it's about. They've done it right. Other people just don't seem to understand how good that situation is. And by the way, just before we go into the rest of the show, I want to congratulate George Kirk for CrowdStrike joining the S&P 500. That stock, which went out of 350, will be up substantially on Monday. All right, look, I'd be careful making a move before the Fed meeting because we're just not sure how emphatic J-POW will be about leaving rates higher for longer, giving that red hot jobs number that we got today. Well, man, buddy, tonight, Medtronic stock has had some mixed action since the 30s beat last month. I'm going to catch up with the CEO to see what's ahead for this healthcare name. Then the maker of Uncrustables, third cheap, and goldfish, I like the cheddar, both imported this week. I'm seeing if you should keep some packets, food plates, and your card emitters, questionable economic backdrop. And you call it in on two small cap industrial stocks. I'm turning my homework and I got to tell you one of them, whoa, really exciting. So stay with Kramer. Don't miss a second of Mad Money. Follow @chimcramer on X. Have a question? Tweet Kramer. #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. Take your business further with a smart and flexible American Express business gold card. You can earn four times points on your top two eligible spending categories every month, like transit, U.S. restaurants, and gas stations. That's the powerful backing of American Express. Four times points on up to $150,000 in purchases per year. Terms apply. Learn more at americanexpress.com/businessgoldcard. 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 three and a half 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. Two weeks ago, we got robust results from Medtronic, the big medical device maker, but because of guidance for the current quarter candidate of the late, stock dropped more than 5% response. Since then, it's recovered the bulk of losses, and I think Wall Street just doesn't give this company enough credit for being a great innovator, and I mean great, but don't take it from me. Or today, we got a chance to speak with Jeff Martha. He's the chairman seal of Medtronic. Take a look at this. Mr. Martha, welcome back to Manbunny. Jeff, good to be here. Good to see you again. Excellent. Del Jeff, last time we were waiting, and now we've seen the approval of what may be the first breakthrough device for chronic pain. And you got to tell us about this, because this is probably one of the most dangerous areas in terms of what's happened in our country, and now people handle pain, and you could have an answer to it. Well, yeah, thanks, Jim, and we were really excited about this. The product called Inceptive, it just got approved in late April. And what is so special about this? This is in the category of neuromodulation, where we stimulate whether it be structures in the brain for conditions like Parkinson's, or in this case, your spinal cord to control pain, particularly back pain and leg pain. And what's so unique now in this field in neuromodulation is we can like sense as well as provide therapy. So it's closed loop. We listen and we talk, and we can customize the therapy for the patient. So in the case of pain, what we're really excited about, we're actually adjusting the therapy 50 times a second. So as you move around, just imagine your back pain changes as you're walking, running, jumping, lying down, and we can adjust that therapy real time, 50 times a second, and really customize the therapy for the patient in the moment. And that's why we're so excited. All right, so, Jeff, let me ask you, right now the treatment is kind of really anti-theluvian. For instance, I take a huge amount of lyric every day for exactly what you were talking about. Can I get off lyric up, which we know is now, obviously, it's a generic drug, but it's what million. I mean, 17 million people are supposed to be taking that drug. Can we get off that and take something that you have? Well, look, we think we definitely think medical devices in many different areas are allowing patients to dial back their medications and really put a medical device into their therapy regimen. And as you know, therapy, medical devices are specific engineered solutions that in many cases don't have the same side effects that you get from oral medication. And so, yeah, I definitely think, you know, for these type of patients, you know, by putting this type of therapy into their life, you can really put the pain in the background. And the other thing about it is the devices is really small to the thinnest closed loop pain stimulator on the market. You really, you can really just put it in the background, not think about it. And it's working 24 hours a day, seven days a week, adjusting pain, say pain therapy 50 times a second. So yes, you should be able to live a much healthier and happier life with this. Well, I wish people would the analysts would understand how big this is. I think this is the first real, I mean, multi-billion dollar blockbuster you guys have had. And yet the stock is kind of flatlining. Maybe there's just not enough awareness about what your device is. Well, I think there's a little awareness. I mean, it's an opportunity. And look, Jim, we're in the early innings of launching a number of products into these, into very big patient pools that have a high need and big growth potential, whether it be AFib, atrial fibrillation, with hypertension, in the neuromodulation space, we just talked about deep brain stimulation and spinal cord stimulation for pain, surgical robotics. And then, of course, diabetes are closing the system there. These are launched new novel technologies in all these areas. And I think, Jim, we just got to translate this technology and this clinical benefit into profitable revenue growth. And as we do that, I think shareholders will take notice. Well, let's talk about one, another one, the transform world, transcatheter aortic valve. This is another, this was approved in March. I mean, already you must have some sense about how big the TAVR system is. Oh, yeah, look, this is a multi-billion dollar market. The Toronto is one of the two leaders in this space. And we've been, you know, gaining share here because of the product improvements and the clinical data. We just had clinical data released just a couple of weeks ago called the smart trial, where we went head-to-head with our competitor on what they call, you know, small annualist patients, which tend to be women. And we had clear clinical benefits that show our valve, the improvements that we made in our valve are better for women. And what was unique about this study was one of the first studies of its kind where almost 90% of the patients in the clinical trial were women. Women are understudied a group in healthcare. And there's a lot of excitement around that trial, the results, and what this transcatheter valve is going to do to this big patient base of women who are suffering from aorextenosis. And you guys have such great reputation for exactly where you're where you're working there. Now, the last thing, simplicity spiral, the hypertension. I'm still waiting for doctors to be able to say, look, this is the preferred way, particularly for people who are obese and for people who don't think they have anything wrong. How do you get the word out about that? Because that's the patient population that is causing that it's just so painful because these people have something and they don't think they need it. Right. Well, this is another case, Jim, where the medication today, the medication is a standard care. These hypertension patients are on five, six, seven drugs. And there's a lot of side effects. And they tend not to take them because of the side effects. And they can't control their hypertension. So here we come with a pathoer-based solution. It's a procedure. Under an hour, one time procedure, and you're done. You don't need to go back. We've got thousands and thousands of patients who have gone through this around the world, a diverse set of patients. And years of follow-up data, we have great. We're seeing typically double digit drops in hypertension, which is massive with really no side effect profile. It's super safe. So now what we're waiting on is more broad-covered reimbursement. And as that happens, the awareness will will pair that with some more awareness on this. But the reimbursement, you can get this therapy today in the United States. It's FDA approved, a breakthrough medical device. The patients are getting it. But the reimbursement isn't out as broadly as it's not broadly out there yet. That will happen here. We expect of the coming months and years. And in the meantime, we'll start driving awareness. If you're going to start to see hypertension clinics pop up around the country, whereas before this was managed out by primary care with medication and not very effectively, you're going to see big centers and cities putting together these hypertension clinics. I mean, that's how I use drugs. I ask for a chip. And my doctor said, "You're in a generic drug. It's real good. You take it. What's the worry?" And I said, "Well, the worry is, is that I have my blood pressure. Every time I take it, it's variable. Sometimes it's way too high. I want this consistent." And he said, "No, the system does not going to support Medtronic. The system is supporting the generic drug." What is it? Who is the system that keeps me from getting what I want? Well, look, that's something that, look, over the years, Medtronic has shown a history of what they call developing these markets, developing them based on the efficacy of the product, the clinical data that supports it, and the health economics that shows that it's good for the system. It's a good investment for the U.S. health care system, other systems around the world to make, and that leads to reimbursement. So as we are maybe 75% of the way through that continuum, we've got the FT approval, we've got the health economics, and now we're working with different payers around the country, including CMS to get coverage. And as that comes in, the system, as you call it, will start to work in a way that you want it to. And that will be more accessible. This groundbreaking therapy will be much more comfortable. Well, look, it is vital that you win on these, Jeff. It really is. It's vital for the country. It's vital for the system, for whatever the system really is, but you save a lot of lives. And I think your stock is just so radically undervalued. But I think that what's happened is, the medical system has to catch up with what you're doing. And when it does, then I think the stock is going to go like a rocket, because you have too much good stuff. And that's how I'm positioning my view on Medtronic. And it's a lot of your just great works that you've come in. So I want to congratulate you, Jeff, because what you're doing is really breakthrough in many different fronts. Thank you so much for coming on MedMoney. Well, thanks, Jeff. Of course. That's Jeff Martha, chairman of Medtronic. Guys, I've spent a lot of time analyzing what they have in the pipeline and what they have been approved. And it's really much bigger than what the stock is reflecting. You just take a hard look at Medtronic. It's a great concern of coming to begin with, but they have a lot of great new stuff. Stay with Medtronic. Electricity. A big idea that's inspired countless new ones. From powering the light bulb to virtually powering our entire lives. 30 years ago, State Street launched the Spyder S&P 500 ETF, Spy. A big idea that inspired the world to invest differently. And still does. What can you do with Spy? Before investing, consider the funds, investment objectives, risks, charges, and expenses. Visit ssga.com for a prospectus containing this and other information. Read it carefully before investing. Spy is subject to risks similar to those of stocks. All ETS are subject to risk, including possible loss of principal alps, distributors, and distributor. Labeling, we've been seeing more and more brown shoots. Size of parts of the economy are slowing. Look, even if today's labor report definitely was one of them. Still, we've had enough signs of weakness that it might be a good idea to own some recession stocks. The stocks of companies that make the same money in good times of bad, because their products are essential. For example, the package food plays. This week, we got results from two package food companies that I've followed for Asia's Campbell's Soup and JMs. So it's worth going through what they had to say, because I think they both told a compelling story. Why don't we start with Campbell's Soup, because CEO Mark Cost came on last night. Back on Wednesday, this company reported a seemingly confusing quarter with solid results. Imagine it also gave us some not-to-life guidance. In this case, some of the confusion is from the acquisition of Sovo's brands. That's the parent Rayo's. It would have been easier, of course, than just been called Rayo's. It's what we talked about. This is pasta sauce and also some other popular Italian food products. Campbell's soup closed on the deal of March, so this was the first time that the incorporating Sovo's into the full year forecast. That caused a modest hit to the organic sales growth and earnings outlook, because we'll see the deal slightly expensive up front. Over time, though, I think it'll pay for itself. But Wall Street was confused about how much of the guidance cut was from actual weakness and how much was related to the Sovo's acquisition. None of the comments called Mark Cost warned that the snack's business is now facing, I'm quoting here, some short-term pressure, especially among lower and middle-income consumers. Now, that freaked people out entirely, because even as his next sentence was much more positive, quote, "We are seeing some modest improvement in the snacking segment in the most recent weeks with the expectation of more of a four-year full recovery in the first half of fiscal 2025," end quote. So Campbell's soup is actually optimistic on the near-term future of snacking, which is important because they have some huge snack food brands. When we had class on the show yesterday, he gave us some clarity on both of these issues. I got to tell you, I thought he was much better on our show than he was at the conference school. Why don't we start with the snacking words? Listen to this. When I think about the role of snacking and I think about what we have now built in this transform portfolio, 50% of the business is snacks. I see no structural problem. I expect this to be outside growth. See, that was so much more clear. It made me feel so much more bullish than the call. Cost also sounded extremely bullish from the Sovo's brand edition, saying, "I've done quite a few acquisitions over the years and I have to say, really, plus the board, this integration is going fantastically." The business grew 27% in the quarter. We were neutral on EPS. How many times have you seen a big scale integration have no dilution in the first quarter of the business? I mean, you put it together with Campbell's on a pro-forma basis. The total company would have grown collectively 2% and our meals and beverage division would have been up 5% and quote. That's just a much better story than I heard in the conference call. It's huge. I think worrying about the earnings hit over the penny or two from Sovo's and getting Sovo's is in the current quarter is incredibly short sudden because this thing's going gangbusters. Now, there were other positives, too, with Klaus explaining that Campbell's demonstrated an ability to grow sales with higher volumes, not price increases. That's important, right? Because we know price increases aren't sticking anymore while also improving its margins, again, without the benefit of higher pricing. At just being a class that's not, I feel much, much better about this Campbell's soup story. That doesn't hurt stocks cheap 14 times forward earnings. Solid yield, 3.45%. You've got my blessing. If you want to own Campbell's, I say yes. How about the Smucker? Now, they were pretty yesterday morning. Remember, Smucker was the poster child for the great GLP-1 weight loss, drug scare last fall because, well, they bought, how is this? At best, on first side, kind of junk food like Twinkies and Dingdongs, right as we were adjusting to the brand new world that is ozampic and Mujar. Unlike most other packaged food stocks, this stock really hadn't recovered going into the conference. In fact, it had just set a new 52-week low last week, but Smucker actually turned in a solid set of numbers yesterday morning and they told an even better story in the comp school. Their sales were a little softer than expected, but the company earned $2.66. Most of us were looking for $2.35. Smucker also offered good enough guidance for the 2025 fiscal year, which ends next April. They're talking 9.5% to 10.5% sales growth. That's not bad, and it was looking for 9.7. Although the midpoint of their earnings forecast was $10 when the street was looking for $10.80. Still, putting it all together, it was enough to propel the stock from $110 to $115 yesterday over sold. Some of the Smucker's brands are doing very well here. Management caught off the strength of uncrustable sandwiches, up 17% year of year, doing well both at home and abroad. They have a very low price point, by the way, and that's where I think it's doing well for them. Their pet food business grew at a double-digit clip after the company recently sold off some non-core brands. Their corporate division more of a wash with some brands strong Folgers this week. As for Smucker's newest segment, Sweet Bake Snacks, meaning the former hostess business, came in a little light, even as Matt just said, the integration's going well. So, like with Campbells, I call the Smucker results solid. They're certainly not spectacular. But from one of the most hated stocks in the group, now one of those hated stocks in the entire market, solid was good enough. Looking forward, I still think the hostess deal was mistake. Well, at least in terms of how much they paid, I also think that management needs to turn around in a coffee situation. That said, there's a terrific value in the case for Smucker. This darn thing sells for 11.4 times since 400 earnings customers. That is three times three turns lower than its average historical multiple numbers usually sell much higher. Plus, Smucker pays you a 3.7% dividend yield. Now, that's something that will get more attractive if interest rates come down later this year. I'm still expecting them to come down, but not aggressively. Ultimately, I feel incrementally more positive on the packed food space after hearing from Campbells and Smucker's. For those two stocks specifically, I do prefer Campbells. Sovas acquisition much better than the hostess acquisition, and really playing by the way, well overseas, Smucker slows a good value proposition. However, there are many other packaged food stocks that I like. For example, the protein plays Tyson Foods up 16% since I turned possible in November. I didn't even endorse Hormel. I think I hit within nearly 10% sell-off after reported last week, because the Hormel quarter was possessed by one-time issues like manufacturing hiccups. I think that the climate was overblown. I thought that they told a really good story when they came on Mad Money. I would be a buyer. What else? General Mills may be the most consistent operator in the sector. Khan Agribans has a strong business in frozen foods, very popular millennials, Gen Z. If you believe Campbell's more class that this cooler period for snacks is temporary, then you might actually want to consider Kellen Nova. The snack food focus progeny of the old Kellon, which completed its breakup last year. So maybe the bottom line on this group. If you think we're at first slow economy, as many people do, then you need some packaged food exposure, and we just heard some encouraging things from Campbells soup and Smucker. These are both decent options. Campbells soup is the more go-to name. Don't forget Tyson, Hormel, General Mills, Khan Agrib, and Kellen Nova, because the whole group works in a slowdown, and it always has. Why don't we take some calls. Let's go to Mike and Connecticut, Mike. Hi, Jim. How are you? All right. I'm good, Mike. How about you? Great, great. Every time I call, I can't help but say thanks for all the good years of teachings. They've netted me a lot of money and a lot of wisdom. Thank you, buddy. Thank you. Go ahead and end the week with some nice, nice comments that I can go tell my wife when I get home. What's going on? All right. I'm in my 70s now, and I just told four to six stocks at one time. One of the stocks I treated as you treated Apple over the years, the stock is McDonald's. Since the late 80s, I've been buying up it, and I did this because the stock was so iconic, every time it was broken, someone would swoop in and fix it, not to mention the great dividends in the splits over the years. Made it very compelling. Two summers ago, I started selling it off. I sold 400 shares because it's not been progressing like it was in the past. I still hold 300 shares. My thought is I should sell and then start buying up, but you're totally maybe. Okay. Let me give you two views on this. Why is it? You're right. McDonald's is not doing what I thought. They charge too much. They've not rolled back prices enough. They seem to have unruly franchisees. You don't want to go with them, and they don't come on air and tell us what the hell is going on. That's not acceptable to me. That's not the McDonald's that I want. Secondly, though, Chipotle, I think Chipotle's great. You got a big split coming up. There's people who are still concerned that they still believe it. It's really from TikTok that they made this stuff smaller. Buy a nickel came with a show and said they didn't make it smaller. I'm going with nickel over TikTok. I think that there's going to be a lot of stock coming from that split, and you don't want to buy it ahead of it. You want to wait. Okay. Anyway, thank you for those kind comments. When it comes down to the two factors for which stocks are reported this week, I'm leaning towards Campbell's oversmarker. But the entire space is intriguing. Well, do you think there's going to be a slowdown there? Now, much more made money. I'm seeing if forward air and great legs dredging and dock are worth putting your money in. Then I'm giving you my take on the Wall Street in Washington. Mine said it's after May's stronger than expected jobs report. And of course, oil calls, rapid fire, and tonight's edition of The Lightning Round, so stay with me. Every time you call them with the stock that I don't know, I promise they would look at it and circle back. Today, I've got two of them, two tiny companies that are barely large enough to mention on air. So before I get into specifics, I need you to understand that anything this small is inherently very risky, especially in the past year where small caps have been insanely volatile. And that's why I always say that when you speculate on tiny companies, you should only use money that you can afford to lose, because it's entirely possible to lose everything. Okay? But this is speculation Friday, so let me walk you through them and they're both pretty exciting. The first one a little better than the second. Let's start with the first one. This Great Lakes dredge and dock, which Matt Massachusetts asked me about on Tuesday of last week, and I was pretty stumped. As the name suggests, the company's a leading provider of dredging services in the United States mostly operates off the coast now. About a third of the business comes from capital projects, think poor deepening, expansion projects, coastal restoration, land reclamation efforts, and liquefied natural gas terminals. Another third comes from coastal protection work, and the final third comes from maintenance work with a battery of work in rivers and lakes rounding things out. You know, all the stuff is in play. Great Lakes is the leader in the dredging market with the largest number of dredgers in the 33% market share. The next goes to compare is only 20%. This is a company that's been publicly traded for nearly 20 years. You know, the same came public at the end of 2006 by merging with a SPAC. Yeah, we've had them back then. But over the long run, this dock, well, frankly, it hasn't done anything. It's been effectively ranged bound for almost two decades. And when you look at the long term sales and earnings numbers, that makes sense, is there's no clear direction to the numbers, and there's certainly no sustained growth. They're not even consistently profitable. Over the past 10 years, they've been profitable in only six of them. Although in the company's defense, that includes five for the last six years. I kind of like that. But here's why I'm really interested in Great Lakes' dredging dock. The competition benefit from the federal government's continued massive infrastructure spending. The bipartisan infrastructure bill from 2022 includes billions to improve ports and restore coastlines. Plus, that British collapse in Baltimore, let's call out a wake up call for every port in America. Beyond government spending, Great Lakes has a couple of other tailwinds, including the build-up of the LNG facilities, and the construction of offshore wind projects. Now, I love the LNG theme, but I'm less excited about the offshore wind theme. And why? Well, because, you know, from GE, Vernova, that's not currently an economic power source. Too expensive. Too late for taking a look at Great Lakes. I actually think it can be worth it for a trade if not an investment. Company entered the year touting the strong federal support as a potential catalyst for its dock. While the talk is cheap, the company then followed up with a blowout quarter. One month ago, we're talking about better than 25% revenue growth. Three hundred and twenty percent even dog growth and a monster, twenty-four cent earnings beat off a seven cent basis. This is the second massive earnings beat in a row from Great Lakes. On top of that, the company's a healthy backlog. It started the year at 1.04 billion, and then it came down a tad to $879 million until the end of the latest quarter. That's still well above their five-year average backlog of six hundred and twenty-three million. Now, it's not going to jump twenty-four percent in a single session after that last quarter, but it's not that expensive here. It's only trading at 12 times this year's earnings estimates. So, you know what? You got my blessing to buy Great Lakes dredge and dock, although, again, only speculative high risk. And you should probably think of it as a trade not as an investment, because who knows what's going to happen to all these different projects once the federal infrastructure is spending winds down. But still, this could be great like this moment. So, I'm not going to discourage Matt and Massachusetts or anyone else who wants to buy that stock. I was very intrigued, and thank you for bringing it to my attention. All right. Next up on Tuesday, Chris in Florida asked about forward air. Now, despite its name, forward air is not an airline. It's a provider of ground transportation-related services, primarily in the North American air freight and less than truckload market. Basically, it's a trucking company that specializes in taking partners from the airports and final destinations. Forward air is another company that's been around for a long time, came public over three decades ago. And for most of its existence, publicly traded company has been pretty good stock climbing from the low-seal digits in the 90s to an all-time high of 125 and change in early 2022. After some sideways action in 2022 and in early 2023, the stock was still at $120 as recently as last summer. But over the past year, forward air shares have just collapsed, falling about 90% from peak to trough 90. And by the way, the trough was just two weeks ago. Why the meltdown? Because forward air announced a disastrous deal last August, a cash and stock acquisition of a company called Omni logistics. The deal was hated, the minute was announced. As people thought forward air was overpaying, transaction had a lot of debt to the balance sheet, and everything else aside, these guys were doubling down on another logistics company in the middle of a freight recession. Within a few months, forward air and Omni logistics were suing each other. Forward air was trying to get out of the deal, even though they eventually went through it at a lower price in late January. Even at the lower price, the acquisition valued Omni logistics at $2.1 billion. But now the combined entity barely above a half a billion. Talk about value destruction. In the wake of the horribly conceived and executed transaction, forward air's then CEO Tom Schmidt stepped down and then the CFO was forced to have three weeks later. But this is our show. But the stocks had a big bounce off its lows over the past couple of weeks, coming from $11 and change on May 21st to $20 and change now. Why? Okay, first stock caught up a very smart upgrade by Wolf for Search, which took it from an underweight to peer-performed. Basically, say enough is enough. They covered their short call citing new management and potentially improving freight forwarding trends. Second, we've learned that there's an activist investor, one I've never heard of called an ironic capital management that they have a nearly 5% stake in forward air. According to the Wall Street Journal, these guys want a board shake-up and strategic review to consider putting the business up for sale. At the same time, a private equity firm called Clearly Lake Capital recently discussed that it's taking up 14% stake in forward air. Clearly, there's a lot of interest in these levels. I can't understand being tempted to take a stab at this one. Now the private equity sharks are circling the business, but it's still not enough of a reason for me to recommend forward air. This one just seems like a total crapshoot to me. And the core story is just too messy for me to feel safe getting behind this one. Some good things could happen, but I just don't want to speculate. So bottom one, both of these teeny, tiny stocks are very risky by nature, but I'd be willing to put a flyer bet on Great Lake stretching and dock. I don't want to go near the disaster that is forward air. They have money's back. It's the break. It is time to talk to the white round customers. Before you say anything, it's not going to tell you whether to buy by ourselves as well. I've just been thrown into the course. It's not going to tell you how much that brings with the way we plan to sell. And then the lightning round is over. Are you ready, skinny guy? Come to the white round, cream-room time, which I was red in Florida, red. Hey, Mr. Kramer, how are you? I am good red boy, shaking with you. About 40 years ago, I heard you say on your show that you named your dog N'Vidia. And I thought to myself, you must be pretty darn impressed with this company that you named your dog N'Vidia after it. So I looked into the company and started buying into the beginning of 23 till I accumulated about 300 shares. Wow, God bless you when your dog N'Vidia wanted to. Actually, you were very kind. I got to tell you, I didn't mean to set the world by what I named. First of all, his name was Abras. And he was not answering me, but I called him N'Vidia and he suddenly became a genius. And I will tell you this, I thank you so much. It's been a long week. And when I hear a call like that, I just get energized and I'm ready for Monday right now. How can I help you? Great. I just recently started a position in slumber's day, ticker symbol, SLB. And you're... Okay, so here's the deal with SLB. It's international and you really want the message if you're gonna do jewelry, which is Halliburton. Slumber's day has got too much business that is not acting well right now. And I'm not going to recommend it here. I'm not, even though I like the company. Hey, let's go to Mo in New York, Mo. Hey, Jim, thank you for taking my call. Really appreciate it. I wanted to know, I was curious to hear what you think about the stock blackberries? No, nothing there. I know people keep saying the software, something forget it. We want to go with really high quality. Go with T-Mobile if you want to go in that world. Let's go to Jim in California, Jim. Hi, Jim, thanks for taking my call. Of course. There's somebody recently corroborated with license and ain't the deal with AC&P. What's your thoughts on ticker AC&P? I think it's had too big a move. I think everything you just said is in the stock and now you got to worry about the earnings of which there are none. And that, ladies and gentlemen's conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. Maybe good news is good news. All right, that's right. We added 272,000 new jobs last month, far more than anyone expected. So, interest rates naturally soar, usually because of death for stocks. And what happens? Stocks barely get hit. If you ask any Wall Street professional about what would happen today when that spoken out number came out at 11.30 am, I'll tell you what they would say. I bet 90% of them would have said stocks are going to be down, maybe huge, especially ahead of next week's spending. People are hoping for rain cuts in the fit, but that is off the table and the job market's just strong, especially for like these next months that people can say, "Oh, they're going to cut." It's not going to happen. So, why then didn't the average get crushed? I think it's because the Fed has kept us up pretty well. I think we're prepped and ready. We know that Jay Powell is expecting weak numbers. We know he hasn't said anything in a plate that would indicate that he's playing a cut rate anytime this week. I mean, people put it words in his mouth, but I've listened. He's basically saying the data's the data. If the data's soft, he might be prompted to do something, but if the data's strong, don't expect any changes. As I indicated last night, Jay Powell is not trying to figure out how to get the stock market going. That's not his job. He's not trying to figure out how to sell more houses. There aren't a lot of houses to sell. He's not trying to put companies out of business either. He wants people to get a good job. Yeah, a good job. But he also wants to preserve the working person's purchasing power, because that's what take the biggest hit from inflation, and that's what he's most fearful about. Well, most of me really tend to get caught up in ourselves. Let's think about that during the kitty thing today. We really are very myopic. We keep thinking Powell must see that we need rate cuts. Here, the other hand says, we can't afford to have rate cuts, because that could trigger massive hiring and massive wage inflation. If the Fed cuts rates inflation comes roaring back, that's the end of their credibility. So what happens? I think Powell knows that you can't make a judgment on even the possibility of a rate cut until we get at least three weak job numbers in a row with little wage growth. After three soft readings, there might be some momentum to the downside that he could stop with a rate cut. Otherwise, he knows risks of setting off another inflation spiral are very real. Think of it like this. Inflation is cancer, and high interest rates are chemotherapy. If Fed won't cut down the chemo until they know that the cancer's in remission, that's smart. That's what we want. See, the problem that Powell faces is not the possibility of a hard landing. Let me talk about it on Wall Street. This economy, even with a slowing GDP, can't seem to stop producing gigantic job growth. The problem is, as we saw from so many retailers these last few weeks, inflation is crushing the working people, the people that Wall Street tends not to think about. When Washington was sending out free money, that cushioned the damage from inflation, not anymore. People have decided, for example, that the dollar stores are too expensive. The dollar stores, they've decided that five dollar toys from five below aren't needed. They can go without the nine dollar burger, fries, and diet code from a fast food chain. They're just fed up with higher prices. Look, there's a reason why there are only four retailers that are doing well, Costco, Ollies, TJX, and Walmart. They're offering prices that are well below what you can get from almost any of the retailer, but they're not backed down enough. Almost no one else so is offering any bargain proposition. Inflation, people might economic weakness is the issue. Until you see the cost of shelter and cars and insurance come down, there will be war pain. But like I've said many times, those costs won't come down as long as there's lots of hiring like we saw this morning. So J-Pals inflation fighting days, they are not over. They're still very much on. This strategy is going from multiple rate cuts. They just don't get it. They know nothing. It's been a long while here. And I bet they'll be wrong again. Like I said, there was more market somewhere. I promised I'd find it just for you right here on Mad Money. I'm Jim Kramer. See you Monday. 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/madmoneydisclaimer. It's the summer of Audi, which means it's scenic route season. In an Audi, you can ignore the GPS and venture on a road less traveled. With so much to see this summer, don't settle for A to B. Take the long way instead and discover your own adventures. Now is the time to get behind the wheel of an Audi and see where it takes you. Find your way to your local Audi dealer for great offers during the summer of Audi sales event. [BLANK_AUDIO]