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[. As you know, it's also to teach. . This market is kind of just being entered. It's erratic. It hates the banks one day, likes the banks another, despises big tech one day, favors small tech the other, passing on semis except the ones with the least intellectual property, not liking an Nvidia, liking Sandisk.
And yes, this was a week of magical investing where you buy any crazy new small-cap thing and you turned out to be making a lot of money. Ju- Just make sure though it had the chance it it was called nuclear power or space travel or quantum computing or crypto. As long as that in the title, it made you money.
Once again, the averages tell you none of this. Dow dipping a few points, S&P sliding 0.06% and the Nasdaq inching down 0.06%. The indices just percolated along again punctuated by bursts of small-cap buying. So, what will next week bring? Well, why don't we go to our game plan to find out? Now, Monday is Martin Luther King Day, okay?
That's a day dedicated to service. Everything's closed. But Tuesday, we're right back in the earning suit. D.R. Horton, the giant home builder, puts its numbers up. And so far, the home builders I I look to call them disappointing is too positive. That's the bad news though. The good news is that we're beginning to see green shoots in the housing sector.
Pricing has come down. Mortgage rates have come down. There's even talk about allowing you to use your 401k to buy a home without penal- paying any kind of penalty. All right, that's up to the president. Uh we'll see how serious he is about this potentially groundbreaking plan. It would certainly send the stock of D.R.
Horton much higher along with the rest of the home builders. 3M also reports. This conglomerate has been quietly surprising people lately. CEO Bill Brown, formerly of L3 Harris, has been putting his stamp on the company ever since he took over CEO about 2 years ago. Known as a vicious competitor, he's made the company far more nimble.
I like 3M ahead of the quarter. I like Bill Brown ahead ahead of many other CEOs. After close, we get results from Netflix. I expect it to treat us on why the company needs Warner Brothers Discovery, the object of his affection, and he's willing to pay a fortune to get it. How big a fortune will it be?
I think that's going to be determined by opponent Paramount Skydance, which also wants the property. If Paramount, by the way, would just pay $34, this whole saga would end. Next, I'm big believer in the travel theme. From the end of COVID until today, I think it has never left us. Remember what I always say that we are long on money and short on time, which is why I would buy United Airlines ahead of the quarter along with Delta, American Express, Booking Holdings, and Marriott.
Those are what I'm going to be start talking next week. I'm going to call it the big five travel. They tend to trade all together, and they are all terrific. Wednesday morning brings two stocks that are hard to keep down, Johnson & Johnson and Charles Schwab. J&J's become a pure play on pharma by spinning off its orthopedics division.
That's smart because orthopedics happens to be a commoditized business. Meanwhile, its pharma business has some of the best drugs in the pipe, and they are really shining without the knee, hip, and joint business that's holding it back. J&J still has a talc overhang of people willing to sue the company for all sorts of cancers allegedly caused by asbestos in their baby powder.
Now, I'm not saying these lawsuits don't matter. That would be heartless. I am saying that they no longer matter to the stock now that J&J's fighting each individual claim, which can be daunting to the plaintiffs' bar. I was intimidated by the lawsuits myself and sold it for the investing club. That was wrong.
I regret listening to the Circe sirens. How about Charles Schwab? All right, this has become the repository of a big chunk of gigantic pool of money that's flowing in from baby boomers to the alphabet generations. It's said to be something like a hundred trillion dollars. That's a wall of money that I discuss in How to Make Money in Any Market.
I think Morgan Stanley through E*TRADE, what good quarter by the way yesterday, Robinhood, and Schwab are the three biggest beneficiaries of my aging generation. Thursday morning, we get the latest reading from the PCE price index. Now, that's a key inflation gauge. Now, I think it'll show a restrained set of numbers.
We will have to endure endless Fed commentary. Save it. Trump's going to pick someone to be Fed chair who will ram through cuts. That's all you need to know. Procter & Gamble reports on Thursday, and listen to me, I don't expect any fireworks or anything really good out of the company that's had to pre-announce a number of negative factors ahead of the quarter.
So, why the heck do we own Procter for the charitable trust? Because it has a new CEO, because everyone knows the brands are tremendous, most of all because the stock's down so much that I know it can bounce, especially with that near 3% yield. I'll explain more after the quarter when we hold our monthly investing club for the conference for the club.
This is Thursday at noon. We do a club call every single month. I don't want you to miss it. I think we do more teaching in that than we do anywhere else. Another Cramer fave, GE Aerospace, also reports that morning. And given all the backlog of planes, I can't imagine it'll be anything other than spectacular.
And I don't think that spectacular is too positive a word for a company that's captained by the great Larry Culp. I don't know if you saw him when we were up at Harvard Business School. I think he's tremendous. Now, we know copper and gold have been red hot, so I have to believe that Freeport-McMoRan, a copper and gold producer, will get its fair share of money coming in.
I like gold, and I think that even up here, it can still be bought. As for copper, it's a little pricey, but it is needed in the data center. Look, it's it's a twofer. Uh this stock though has tended to go down after reports. After close, Intel reports. This stock's been flying ever since Lip Bu Tan came in as CEO.
Under his leadership, Intel started to reclaim the mantle of America's best semiconductor manufacturer. Remember, made in America. Of course, given how competitive that world is, Intel's actual earnings may not be big enough after this run. You know what? Let's give this one a rest, okay? We also get results from a company we own for the charitable trust called Capital One Financial.
You've probably seen their ads. Capital One's the giant credit card issuer that got hammered when the president suggested earlier this week a temporary cap on credit card interest rates. I know that was last weekend. I I I get where he's coming from, okay? But if you cap those rates, most Americans simply won't be able to qualify for a credit card.
These companies would rather stop lending than just lend at a loss. Remember, it's unsecured debt. I think the president's moved on to the next issue, which is why the banks are rallying again. Capital One's going up with them. The company has plenty of cash. I hope it'll talk about its humongous buyback on its conference call.
We also want a game plan about what it's going to do with its Discover credit card network. That could be gigantic, but they haven't told us enough yet. What else? I think that the loan surprise blowout next week will come from Intuitive Surgical, which had a monster quarter last time. But I bet that the numbers still aren't high enough.
That means that the estimates can go higher. One day, these upside surprises will come to an end. I think cuz competition from Medtronic may matter. Even J&J wants in this right yet. The food stocks have been miserable, but one that still has a premium multiple because of its impressive growth from yesteryear is McCormick.
We're going to Well, you know what? We have to see if that can stick. Now, I like the stock before when the growth was from overseas. I frankly don't know if it's capable of really beating the numbers anymore though. The packaged food business, I'm calling it the new coal in this market. Lots of people have been loving SLB of late.
That's the old Schlumberger. Uh they're seeing potential contracts in Venezuela for this oil service company. But I just look at the price of crude though. Below $60 a barrel, I think that it's very hard for SLB to deliver special numbers when reports on Friday. So, here's the bottom line. It's an awfully odd week, this second week of earning season.
As light as the next week is heavy except for a couple cases, I think it's best to keep your bat on your shoulder and hope for a better set of pitches. Let's go to Jerry in Missouri, please. Jerry. Thanks for taking my call. Thank you, Jerry. Jim, this stock's shares are extremely volatile. It had over 60 moves greater than 5% over the last year.
The company's PE is currently over a hundred. I didn't take some profits 3 days ago after Evercore initiated coverage with a $320 price target. But then yesterday, it dropped 10% after a report from RBC regarding its advertising. I'm still up over 50% overall. Should I be worried about Reddit? Holy cow.
You know what? I I was trying to pick which one, which one, which one because I've been watching this since it got it jumping bean, and it worries me that it's got so erratic. It's almost like there's not enough float. But I I'll tell you the truth. In How to Make Money in Any Market, I go over a couple of stocks that I think could be future winners, and I include Reddit.
So, I'm not backing down. I like this company, Reddit, right here. Let's go to Larry in California. Larry. Reverend Jim Bob from the Church of What's Happening Now. That's the way the late Mark Haines used to introduce you in the '90s, and I've been listening to you ever since. Thank you, and I miss I miss him.
That's what it was, Reverend Jim Bob. What's happening? Jim, my stock is Lam Research. Um this stock has gone parabolic since September from the low '90s all the way up to over 320. Yes. is there more room to for this stock to go or have we reached the top? Do you know that that's got one great CEO in Tim Archer?
A- And I am concerned. Uh Tim was so Scott, he was so good when I sat down with him and he came on the show. He told a great story. I I'm not going to be against him. I actually think that you can buy some, but the market's very overbought by the oscillator that I use, the S&P. If you want a hundred shares, you buy 25, but then you must wait for it to come down.
I can't count on this continuing to buy a parabolic move, even for the best of the best, and that is the best of the best. Canton, California, can't. Hey Jim, it's a pleasure to speak with you. Thanks for taking my call. Of course, thank you for Hey, I like I like to buy uh shares in companies that are essential to the economy and have a wide moat.
For the last 8 months, I've been holding my nose and buying BA. Um BA is making a big run now, but it's got no earnings, and um the genuine earnings report comes out on January 27th. Okay, we what Okay, so we have to understand this, Ken. This is a cash flow story, not an earnings story. The cash flow here is bountiful.
We own it for the trust. I I insist that you continue to own it. I think that Kelly Orberg is turning the corner. It's my favorite stock in the travel trust. It's up 14% for the year. Boo-yah! We'll get a wave of earnings next week, but aside from a couple cases, I think it really is best to keep your baton the shoulders.
Wait for a better pitch from this market. Not much as slim pickings for next week. All right, Mad Money tonight. Speaking of earnings, JB Hunt's numbers just bust the tape last night, and I'm trucking through the results to see where things stand in the freight market. Then, what the heck happened to Aquestive Therapeutics this week?
I'm going to break down what's behind the stock's hideous decline. I know you called about it. We're going to keep telling you. And why it's moving lower in a painful reminder of those chasing speculative stocks. And please don't miss the latest round of America's favorite game. That's called Am I Diversified, where I survey your portfolio to see if it passes the test. So, stay with Cramer. Don't miss a second of Mad .
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