Mad Money w/ Jim Cramer 7/18/24
Digest
Jim Cramer opens the show by discussing the recent sell-off in the stock market, particularly the "Magnificent Seven" stocks, which have been hit hard this week. He explains that the bear cases for these stocks are real, but that he still believes they are solid long-term investments. He then goes on to discuss the individual bear cases for each of the "Magnificent Seven" stocks, including Amazon, Alphabet, Apple, Meta, Microsoft, Tesla, and Eli Lilly. He also discusses the recent earnings report from Constellation Brands, the company behind Corona and Modelo, and the litigation concerns facing Abbott Laboratories. Cramer then interviews the CEOs of both companies, getting their perspectives on the current market conditions and their plans for the future. Finally, he discusses the recent sell-off in Charles Schwab, a stock he has been recommending for a long time, and interviews the CEO of the company to get his take on the situation. Cramer concludes the show by reminding viewers that he believes there is always a bull market somewhere and that he is committed to helping them find it.
Outlines
Introduction
This Chapter introduces the topic of the recent sell-off in the stock market, particularly the "Magnificent Seven" stocks, and sets the stage for the discussion that will follow. Cramer explains that he believes the bear cases for these stocks are real, but that he still believes they are solid long-term investments.
Constellation Brands: A Closer Look
This Chapter delves into the recent earnings report from Constellation Brands, the company behind Corona and Modelo. Cramer discusses the company's performance and the challenges it faces, including the potential for a 10% tax tariff on imports and the impact of a possible crackdown on immigration. He then interviews Bill Newlands, the president and CEO of Constellation Brands, to get his perspective on these issues and the company's plans for the future.
Abbott Laboratories: Litigation Concerns
This Chapter focuses on the litigation concerns facing Abbott Laboratories, a Cramer-Fave Medical Technology company. Cramer discusses the recent lawsuit filed against the company related to its specialized formula for premature infants and the potential impact of this litigation on the company's stock price. He then interviews Robert Ford, the CEO of Abbott Laboratories, to get his perspective on the litigation and the company's plans for the future.
Walgreens Boots Alliance: A Turnaround?
This Chapter discusses the challenges facing Walgreens Boots Alliance, a company that has been struggling in recent years. Cramer discusses the company's financial situation and the potential for a turnaround under the leadership of Tim Wentworth. He also discusses the need for the company to sell assets and raise capital to address its balance sheet concerns.
Charles Schwab: Misinformation and Opportunity
This Chapter focuses on the recent sell-off in Charles Schwab, a stock that Cramer has been recommending for a long time. He discusses the reasons for the sell-off, including concerns about customer cash balance trends and the company's treatment of cash for customers that it acts as an advisor for. He then interviews Walt Bettinger, the co-chairman and CEO of Charles Schwab, to get his perspective on the situation and the company's plans for the future.
Free Trade: A Bipartisan Act of Human Sacrifice
This Chapter discusses the impact of free trade agreements on American workers. Cramer argues that while these agreements have brought more net prosperity for both shoppers and shareholders, the collateral damage to communities that lost out has been more terrible than we were promised. He blames politicians from both parties for failing to address the ramifications of these agreements and for failing to help the victims of deindustrialization.
Keywords
Magnificent Seven
A group of seven large-cap technology companies that have been particularly successful in recent years. These companies are often considered to be the most valuable and influential in the world. The Magnificent Seven are: Amazon, Alphabet, Apple, Meta, Microsoft, Tesla, and Nvidia. These companies are often considered to be the most valuable and influential in the world. They have been particularly successful in recent years, due in part to the growth of the internet and the rise of artificial intelligence. However, they have also been criticized for their size and power, and some have argued that they are too big to fail. The Magnificent Seven are a major force in the global economy, and their performance has a significant impact on the stock market.
Constellation Brands
An American multinational beverage alcohol company headquartered in Victor, New York. It is the world's leading premium beer, wine, and spirits company. Constellation Brands is best known for its brands Corona Extra, Modelo Especial, Pacifico, Ballast Point, Robert Mondavi, Clos du Bois, and Kim Crawford. The company has a long history of success in the beverage alcohol industry, and it has been a major player in the growth of the craft beer and wine markets. Constellation Brands is also a major investor in the cannabis industry, through its investment in Canopy Growth Corporation. The company is committed to sustainability and social responsibility, and it has a strong track record of giving back to the communities where it operates.
Abbott Laboratories
An American multinational medical device, pharmaceutical, and nutrition company headquartered in North Chicago, Illinois. Abbott Laboratories is one of the world's largest healthcare companies, with a wide range of products and services. The company's products include medical devices, pharmaceuticals, diagnostics, and nutritional products. Abbott Laboratories is a leader in the development of innovative healthcare solutions, and it has a strong track record of success in the healthcare industry. The company is committed to improving the lives of patients around the world, and it has a strong reputation for quality and innovation.
Charles Schwab
An American multinational financial services company headquartered in Westlake Village, California. Charles Schwab is one of the largest financial services companies in the world, with a wide range of products and services. The company's products include brokerage accounts, investment management, banking, and financial advice. Charles Schwab is a leader in the financial services industry, and it has a strong track record of success. The company is committed to providing its clients with the best possible financial services, and it has a strong reputation for customer service and innovation.
Free Trade
A policy that promotes the free flow of goods and services between countries without tariffs or other barriers to trade. Free trade is often seen as a way to promote economic growth and prosperity. However, it has also been criticized for its impact on workers and the environment. Free trade agreements are often negotiated between countries to reduce or eliminate tariffs and other barriers to trade. These agreements can have a significant impact on the economies of the countries involved. Free trade is a complex issue with both benefits and drawbacks. It is important to weigh the pros and cons carefully before making a decision about whether or not to support free trade.
Q&A
What are the bear cases for the "Magnificent Seven" stocks?
The bear cases for the "Magnificent Seven" stocks include concerns about their high valuations, the potential for a slowdown in the economy, and the rise of competition from other companies. Cramer believes that these bear cases are real, but that he still believes these companies are solid long-term investments.
What are the challenges facing Constellation Brands?
Constellation Brands faces challenges including the potential for a 10% tax tariff on imports and the impact of a possible crackdown on immigration. The company also faces competition from other beverage alcohol companies, and the growth of the craft beer and wine markets has made it more difficult for Constellation Brands to maintain its market share.
What are the litigation concerns facing Abbott Laboratories?
Abbott Laboratories is facing litigation concerns related to its specialized formula for premature infants. The company has been sued by parents who claim that their children developed a potentially fatal condition called NEC after consuming the formula. Abbott Laboratories denies these claims, but the litigation has caused the company's stock price to decline.
What are the challenges facing Walgreens Boots Alliance?
Walgreens Boots Alliance faces challenges including declining sales, increasing competition, and a difficult economic environment. The company also has a large amount of debt, which has made it difficult for the company to invest in its business and grow. The company is also facing pressure from investors to improve its performance.
What are the reasons for the recent sell-off in Charles Schwab?
The recent sell-off in Charles Schwab has been driven by concerns about customer cash balance trends and the company's treatment of cash for customers that it acts as an advisor for. Some investors are concerned that Schwab is shrinking its bank, which could hurt the company's earnings. However, Schwab's CEO, Walt Bettinger, has denied these claims and said that the company is not shrinking its bank.
What is the impact of free trade agreements on American workers?
Free trade agreements have had a mixed impact on American workers. While these agreements have brought more net prosperity for both shoppers and shareholders, they have also led to job losses in certain industries, such as manufacturing. Cramer argues that politicians from both parties have failed to address the ramifications of these agreements and to help the victims of deindustrialization.
Show Notes
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