Mad Money w/ Jim Cramer 10/18/24
Digest
This episode of Mad Money with Jim Cramer begins with a brief introduction and a promotion for CNBC Select, highlighting their credit card rankings and rewards comparison services. Cramer then dives into a market analysis, discussing the surprising six-week market rally despite rising interest rates, the upcoming election, and high national debt. He attributes the bullish sentiment to the Federal Reserve's recent rate cuts. Cramer provides a detailed breakdown of upcoming earnings reports for the week of October 22nd, highlighting key companies like SAP, NuCore, General Motors, RTX, GE Aerospace, Danaher, Kimberly Clark, Norfolk Southern, Texas Instruments, Boeing, Coca-Cola, Vertive, Tesla, IBM, ASML, Lam Research, T-Mobile, Chevron, Southwestern Energy, UPS, Carrier, Decker's Outdoor, Texas Roadhouse, and Colgate-Palmolive. He then takes calls from listeners, answering questions about various stocks and market trends. Cramer discusses the potential impact of the upcoming election on the market, the performance of Home Depot, Intuitive Machines, and other companies. Cramer analyzes the recent trend of investors shorting treasury notes, highlighting the large net short position built by speculators. He discusses the rationale behind this trade, including concerns about inflation and the Fed's rate cuts. Cramer discusses Netflix's strong earnings report, highlighting the company's revenue beat, profitability, and subscriber growth. He analyzes the implications of the report for the company's future prospects and the ongoing debate between bulls and bears. Cramer shares insights from the recent Investing Club monthly meeting, answering questions from members about various stocks and investment strategies. He discusses his views on Carrier, cybersecurity, restaurant stocks, and other topics. Cramer answers a rapid-fire series of listener questions about specific stocks, providing quick insights and recommendations. He discusses Energy Transfer, Walgreens, gas prices, L'Oréal, Dover, and other companies. Finally, Cramer discusses the dangers of legacy businesses, using Borders as an example. He emphasizes the importance of adapting to changing market conditions and embracing innovation to avoid being disrupted by new competitors.
Outlines
Market Analysis and Earnings Preview
Cramer discusses the surprising market rally, upcoming earnings reports, and the potential impact of the upcoming election on the market.
Listener Questions and Stock Analysis
Cramer answers listener questions about various stocks and market trends, including the performance of Home Depot, Intuitive Machines, and other companies.
Shorting Treasuries and Netflix Earnings
Cramer analyzes the recent trend of investors shorting treasury notes and discusses Netflix's strong earnings report, highlighting the company's revenue beat, profitability, and subscriber growth.
Investing Club Insights and Lightning Round
Cramer shares insights from the Investing Club monthly meeting and answers a rapid-fire series of listener questions about specific stocks, providing quick insights and recommendations.
The Dangers of Legacy Businesses
Cramer discusses the dangers of legacy businesses, using Borders as an example, and emphasizes the importance of adapting to changing market conditions and embracing innovation.
Keywords
Shorting Treasuries
The practice of selling borrowed treasury bonds with the expectation that their price will decline, allowing the seller to buy them back at a lower price and profit from the difference. This strategy is often employed when investors believe interest rates will rise, leading to a decrease in bond prices.
Legacy Businesses
Established companies operating in traditional industries that may face challenges adapting to new technologies, market trends, and consumer preferences. These businesses often rely on established models and may struggle to compete with more agile and innovative competitors.
Disruption
The process by which new technologies, business models, or products challenge and displace existing ones. Disruption can lead to significant changes in industries, markets, and consumer behavior, often creating opportunities for new entrants while posing threats to established players.
Earnings Season
The period when publicly traded companies release their financial results for a specific quarter. Earnings season is closely watched by investors, as it provides insights into the performance of individual companies and the overall health of the economy.
Bullish Sentiment
A positive outlook on the stock market, characterized by expectations of rising prices and strong economic growth. Bullish sentiment is often driven by factors such as strong corporate earnings, low interest rates, and positive economic indicators.
Streaming Services
Online platforms that provide access to a library of digital content, such as movies, TV shows, and music, on demand. Streaming services have disrupted traditional media industries, offering consumers a more convenient and affordable way to consume entertainment.
Content Library
The collection of digital assets, such as movies, TV shows, music, and other forms of media, available on a streaming service or other platform. A robust content library is crucial for attracting and retaining subscribers, as it provides a wide range of options for viewers.
Engagement
The level of interaction and involvement users have with a platform or service. High engagement is a key indicator of success for streaming services, as it reflects the amount of time viewers spend consuming content and their overall satisfaction with the platform.
Q&A
What is the rationale behind investors shorting treasury notes?
Investors are shorting treasuries because they believe interest rates will rise, leading to a decrease in bond prices. They are concerned about inflation and the Fed's rate cuts, which they believe are too aggressive and could lead to a resurgence of inflation.
How did Netflix's earnings report impact the stock price?
Netflix's strong earnings report, which exceeded expectations on revenue, profitability, and subscriber growth, sent the stock price soaring to a new all-time high. The report quieted concerns about the company's growth prospects and boosted investor confidence.
What are some of the key takeaways from the Investing Club monthly meeting?
Cramer discussed his views on Carrier, cybersecurity, restaurant stocks, and other topics. He highlighted the importance of long-term investing, the need to diversify portfolios, and the potential for growth in certain sectors.
What are some of the challenges faced by legacy businesses in a rapidly changing market?
Legacy businesses often struggle to adapt to new technologies, market trends, and consumer preferences. They may rely on established models that are no longer competitive and face disruption from more agile and innovative competitors.
How can companies avoid being disrupted by new competitors?
Companies need to recognize their vulnerability, adapt to changing market conditions, and embrace innovation. They should focus on providing value to customers, staying ahead of technological advancements, and being responsive to evolving consumer preferences.
Show Notes
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.
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