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My mission is simple. Help you earn. n untapped America, Kramer. I'm here to make friends and try to make some money. My job is not only to entertain, but also to teach and enlighten you. So call 1-800-743-CBC or tweet at Jim Cramer. I am honored. I'm tired of hearing that we supposedly have a narrow market.
A market where only a few winners deliver results. Almost all of them are in the technology sector. The implication is that a narrow market is a volatile market. So it's better to sell in advance. I've had enough. Yes. OK. This is obvious. We had a narrow market. The S&P 500 is led by the “Magnificent Seven,” who seem to exist to save the remaining 493 index members from Eli Wee and his gang of robbers.
But you know what? The Magnificent Seven is a real force. Seven brilliantly managed companies with amazing sales, profits, and great balance sheets. So what about what they carry? I mean, a win is a win, and we won again today. The Dow rose 153 points, the S&P rose 0.99%, and the tech-heavy NASDAQ jumped 1.28%.
Not every company can be a legend, let alone a professional. And the Magnificent Seven? They are professionals. What should we do? Challenge all seven shooters? Somehow destroy the King's Cup? Bad idea. They deal with lead. And you definitely don't want to be their competitor. So, who are the "Magnificent Seven"?
Well, I mean, no, it's not you this time, Brenner. Well , let's go. I have a list of them. Apple with a total return of almost 37% for the first five months of the year. Microsoft brought 38%. Nvidia with a yield of 159%. Amazon with a yield of 44%. How about this? Meta has increased by 120% . Tesla rose 66%, and Alphabet rose 39%.
I know I have the right to say: I've had enough, because I talk about them every night. People act as if the power of these companies is bad. And what do you want these CEOs to do? Did you play blindfolded or with your hands tied behind your back? Maybe you'll give the other guys an advantage so they can compete?
Isn't it significant that Apple has the highest customer satisfaction rate in the world? Shouldn't Microsoft be rewarded for its brilliant performance during this tech downturn and the biggest bet on AI of any company? A $10 billion investment in the company behind ChatGPT. Nvidia makes gold in the form of graphics cards, which are critical for AI.
They are literally impossible to get in sufficient quantities. They provided a forecast for the current quarter that was almost $4 billion higher than expectations, for goodness sake. How about Tesla crushing everyone here ? Europe, China, best-in- class products, very affordable prices. Amazon is coming out of its worst period in a year .
So business will accelerate thanks to AI, and sales will increase, while brick-and-mortar stores are shrinking due to theft. More on that later. Mark Zuckerberg of Meta, he's going all in on AI in the year of "effective living." Alphabet looks like a latecomer to AI, doesn't it? Well, actually, it turns out that there's a lot more going on with them than even their own leaders seem to know.
All these are great long-term opportunities. But you know what? Just like in the movie "The Magnificent Seven," the shooters saved the village. And do you know what the peasants did? Nothing. So instead of complaining that the market is so narrow and everything is terrible , let's cut the crap, I want to buy things differently.
It's like Steve McQueen talking to Yul Brynner about the peasants not making an effort. If it passed you by, just watch the movie, the original. Now let me provide a list, because the new movie was terrible. Let me give you a list of companies that I'm just not willing to wait for before taking action on the Magnificent Seven.
In other words, these companies shouldn't deter you from investing in the Magnificent Seven at all. I'll take a look at the biggest losers from the first five months of the year in the once- mighty Dow , which has barely moved a penny in a year. Even if you include dividends, the Dow, you know, only had a pitiful five positive days in May, three of them in one week.
Should we really consider the Magnificent Seven as a source of danger? When the real threat is right in front of us in the form of the Dow's "dirty dozen," forget about leaders. Let's talk about the players who can't even make the team. Maybe they don't even try. We'll start with those who fell the least, the slightly better ones.
Proctor & Gamble lost 6%, I call them Charles Bronson because he was the only actor to appear in both films. Proctor had five very successful months until a few weeks ago when analysts started complaining about peak margins and slowing sales. I say, " Don't worry. Proctor will cut costs without cutting prices." This is called a great combination.
Next, Coca-Cola also rose by 6%. And that's purely because people think the Fed is almost done tightening policy, so why worry about safety? They don't care if the company had a good quarter, it's gone out of style. Should this be a reason to refuse to buy Nvidia? Does this make any sense at all ? Not this.
Steeply. Steeply. Next comes United Health. It fell by 8%. Because who would want to have health insurance during an election year? It doesn't matter that it's a great company. She will exceed all expectations. You don't buy something like that a year before an election. IBM fell 8%. All I can say is: give me a tall stature or I'm out.
Don't you want growth and real risk? Well, what about the absolutely pathetic performance of humble Verizon? Can't find anything good except my cool red Verizon windbreaker they gave me, perfect for working in the garden on a rainy day. Admit it, she's perfect. Travelers, pretty good. But dream if you will, if you think a cyclical stock like this could achieve greatness at this point in the business cycle, down 9.7%.
You always hear that a family is only as happy as its unhappiest child. Nike has markets that are like families, and Chinese families are causing the stock to fall 10%. Home Depot, the Fed wants to raise rates. The residential sector was under the spotlight. Lots of theft too. Home Depot used to be great.
It may become that way again when the rate hike ends. Fell by 10.3%. I mean, here's a stock that the trust owns, and it makes no sense to me that it's down 10.6%. I'm talking about Honeywell. Perhaps we are all waiting for a successor to Vimal Kapoor, who has become the real CEO today. Maybe he can give us some direction.
J&J fell 12%. It is mired in lawsuits, trying to pay $8.9 billion to a group of plaintiffs who accuse J&J of allegedly selling a product that caused them cancer. I am a huge J&J fan. It has been like this since 1985. But unlike those times, you are completely dependent on the outcome of this lawsuit.
Caterpillar told a great story at an industry conference today, but I have a feeling no one wants to buy earthmoving equipment on the eve of a global recession. Even its CEO, Jim Bumblebee, has radically de-cyclicalized his business. We like it. We hold it in our trust. We want to increase the stake because share buybacks are strong, and I expect dividends to increase.
It fell by 14%. He seems pretty strong. I'm getting ready to buy. Amgen is trying to climb out of a financial hole by acquiring Horizon Therapeutics for $27 billion . The FTC is against this. The stock stalled, falling 16%. Chevron also fell by 16%, because oil is terrible, and it may not grow even after the OPEC + meeting, because the cartel looks completely collapsed.
Walgreens fell 18%. The basic health care profit does not show the real picture of how many goods are now locked up due to theft. I don't know what to do with this company. Amazon is their main enemy. With same- day delivery available everywhere, it's faster to order online than to wait for a salesperson to open a box of Gillette razors.
Finally, there is the “ dividend aristocrat” —3M. All I can say is that 3M is involved in lawsuits from some of the most pitiful plaintiffs in the world: people who drank contaminated groundwater, possibly because of 3M, and veterans who are complaining of hearing problems due to allegedly defective 3M earplugs .
Oho. This is the type of litigation that brings down a once- great company by 22% in the first five months of the year. So, do you want to own the " petrified residents" of the Dow, or is it better to bet on the winners - the "Magnificent Seven"? Remember, you shouldn't wait for these " residents" to change the situation for the better.
It 's better to bet on real "shooters" if you want to make big money. Hey, let's move on to Mickey from Michigan. Mickey. Oh, this is Mickey from Massachusetts. My terrible hearing. How are you? Very good. How are you, Jim? I'm fine, thank you. So, I'm calling about CVS. I bought the stock around the time COVID started, invested about $10,000 in March 2022, and now it's worth $7,000.
Should I buy, sell or hold? It yields 3.5% dividend yield. It has problems common to many retailers, namely theft. They just did a big bond issue and, I think, are very aggressively entering the healthcare market. I would n't sell a stock with a dividend yield of 3.5%. I would buy them. Let's move on to Jay from Wisconsin.
Jay. Jim, I'm curious what you think about activist investors. Legion Partners' involvement in Twilio and their proposals for what they will do look, Jeff Lawson has made several staff cuts. He is conducting a share buyback. He became more focused. I think a lot of his problems are related to small and medium-sized businesses, which can be a little more cautious with orders.
I wouldn't sell Twilio right now. I think if the price drops to 60, I would buy them. Sebastian from California. Sebastian. Yes, Mr. Kramer. Thank you very much for everything you do. Good day to you, sir. So, my question has two parts. Disney seems to have the lowest stock value. What is your valuation of Disney stock ?
And is this a good time to buy, or would you recommend any other stocks? I think Disney is a great stock to buy. My Chapel Trust owns them. It was a big disappointment. We suffered significant losses at Disney. I'm talking about Nvidia's earnings. I also need to talk about what I'm losing. Disney is one of those stocks we struggle with.
I talked about this at our last club meeting. But at $89, if you're willing to wait a year, I think we'll look back and say, "How the hell did you buy them for $89?" OK. You can try to wait until the rest of the market catches up with the "magnificent seven". But why do that when you can just buy winners while they are successful?
Tonight my search for buying opportunities continues. CrowdStrike doubled to 30, but I look at the big picture with the CEO. Find out if the recent drop could be a profitable buying opportunity. Then, in a challenging time for retail , I'll focus on a troubling new trend that could impact the sector's profitability and identify the companies that will emerge victorious.
The hype around AI has taken over the market. But I'll tell you why you shouldn't believe everything you hear when I do my homework. with .
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