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[ramer America. I'll be with ment, but to educate, teach you. Call me 1800 743 CBC. Tweet me at Jim Kramer. I'm gonna say it even though it sounds ridiculous. This stock market rallied today because we didn't attack Greenland. We didn't send the 101st Airborne into Copenhagen. President Trump said there ain't going to be no war no more.
and even promised not to hit our allies with tariffs because he quote formed the framework of a future deal end quote with the secretary general of NATO. He's optimistic it will happen and will no doubt I think be the best deal ever even exceeding the Louisiana purchase. You really can't make this stuff up, can you?
Yet it's truth. As I was waiting to get on TV this morning for squawk in the street, the stock futures were weaker step by step in by inch. They were growing down. Then President Trump spoke sounding like a man of peace. And then the stocks roared. As I happened, I I turned to my colleague David Faber and I said, "Greenland invasion ruled out.
Here comes the futures." And that's exactly what happened. It's insane, people. It really is. But the marketly finished up today. Dow rocketing 589 points. S&P closing up 1.16%. NASDAQ finishing up 1.18%. as war was tabled and then a framework for Greenland occupation seems to be in the offing. How the heck did we get to this crazy point?
First, I like to play with an open hand. Let me just say I hate talking politics. It's not in my area of interest or expertise. It's way too polarizing. For most of my professional career career, politics didn't really matter. Uh regulators could matter. Budget deficit could matter. Government shutdowns could matter.
Most of the time though, the president doesn't have much impact on the stock market, at least not on a day-to-day basis. The last president rarely got involved in the markets except when one of Biden's aids threw up a list of our friends to determine which companies could get Nvidia's latest chips. His regulators tried to block virtually every merger, too.
But the White House itself wasn't regularly moving in the market. You know, the White House, see this, they were oblivious to this place. Believe me, even in President Trump's first term, he didn't directly try to move the averages except when the economy froze up during CO. This time though, Trump too is so different.
It's crazy. from trade policy to tax policy to capital return policy or military policy. Ramifications of the stock market are more important than anything other than the direction of interest rates. Both the long rates set by the bond market and the short rates set by the Fed. And remember Trump wants to set those two.
There are huge stock market reverberations to almost everything this president does and I think he knows it. I remember when he called the bottom after liberation day faucus literally by posting on true social that it was time to buy stocks. A great time to buy. Uh David Faber and I were on the desk trying to figure out this passionately what could happen.
Well, it turned out the president was right. It was an amazing buying opportunity. Which brings us to the Greenland embroia. The president has been stewing over this Greenland issue for a while. We have a lot of history with Greenland. There's a huge US Air Force base built during the Cold War. It's very important to our nation's defense.
Some might argue that we should have sovereignty over such a critical base, but Denmark's a member of NATO and we run NATO. Until very recently, it might as well have been on US soil. But this president doesn't respect Denmark or NATO for that matter. He seems angry at the whole Scandinavia because he lost out on the Nobel Peace Prize.
Look out Oslo. Enough of the history. Yesterday we were concerned that Trump might decide to take Greenland by force. Uh the notion that we would actually go to war with our allies over Greenland of course was totally absurd. But because this president is willing to use pretty much anything in the US arsenal to get his way from tariffs to bombings and kidnapping world leaders, sellers took control of yesterday's session.
They were scared. Normally, you expect interest rates to go down as people seek the safety of treasuries. Not this time. NATO members own about $3 trillion worth of US bonds. Why? They would hold them if they're worried about the United States declaring war on them. No, not going to happen. So, sellers swarmed in, dumped treasuries ahead of the pending US Denmark war.
When rates shot up, we saw a frantic move out of high price to earnings multiple tech stocks as well as anything related to housing. That was the that was really yesterday's market. The latter is brutal, by the way, because there's been hope that the president was going to authorize buying mortgage back bonds to bring down rates.
Yesterday, like that that lay a goner. So, even though Dr. Horton, the largest home voter, reported pretty good quarter, stock got crushed. That was on Greenland. Today, though, we got to take the Greenland worries off the table, not just the possible invasion, but also the threat of tariffs. And Horton then screamed higher.
So did Home Depot, which jumped $953 or 2.5%. That was the Greenland peace dividend. Of course, not everything went right from the stock market's perspective. The president's also decided to prohibit corporate home buying, something he thinks is needed to get housing prices down. He signed an executive order banning it.
Of course, I don't think he has the authority to do that. But like with the tariffs, neither Congress nor the court seems willing to push back or even care. And he reiterated the 10% cap on credit card interest rates, something that I believe would be an economic disaster because the credit card industry would just stop letting JP Morgan's uh Jamie Diamond told us that.
Still one more area where the congressional action is needed. But you go tell Trump that. I'm not going there. In [snorts] this world of presidential intervention, you need to know two things. One, the president is the best bully pulpit in the world. And two, he can go to war, but the war only ends.
Tonight, we have Joe Walk, the CFO of Johnson Johnson, giant pharmaceutical company. The president ran, among other things, on lower drug prices. And then he got them. He also ran on reshoring. Got that, too. Then it ended and these drug stocks have had a sensational, well, let's say run after the peace dividend.
Joe Wal explained that to us. Is the president's bark worse than his bite? He certainly does a heck of a lot of barking. You can't help that. But you have to try to figure out whether the worst case will really come true. This time, the worst case was an invasion of Green Greenland. You have to ask yourself if the president's threats are too outlandish to really happen.
In this case, the bomb market rebelled. And because the president doesn't want to wreck the economy, he changed his mind. He's given you so many buying opportunities in this game of international domestic chicken since he took over that all you got to do is just got to wait for the hot ones and then do some buying.
But what really matters here is that you never know when the president and his team are going to strike or what sector will be hammered. Only fossil fuels and the derivatives seem to get the president's unmitigated backing unless of course they're unwilling to bid pitch in on that Venezuelan rebuild.
So here's the bottom line. My goal on this show is not to judge, it's to profit. Unlike the first Trump administration, Trump too is far more comfortable taking the market down, not up. Just be ready. You should get plenty of good buying opportunities over the next three years. Heaven knows he sure seems to love to provide them.
Why don't we go to Sargon in Hawaii? Sargon. Hi Jim. How are you doing? Nice talking to you. Oh, same Sargon. What's happening? I have a question about Barrett Gold. Um, so it's two question. Do you think it's going to go $55 or above? And what's your price prediction for that? Okay. I like the new management of bar of uh gold now.
It's called gold.com. But I really prefer you to be an Agneo Eagle. I am a gold bug. I do not trade gold. I own gold. If gold is down, I buy. If gold is up, I don't. Agniko Eagle had a big turn today that was down. I think it'll be down again tomorrow. And I'm a buyer. I am a gold bug. Vince in Florida.
Vince, good evening. Jim, give me an opinion on Jet Blue. Should I hold it or sell it? I'll tell you, I had a pretty good trip the other day in Jet Blue when I was coming back from San Francisco. The people are really nice. I want to thank them for being so great. Uh, do I want to own the stock? I think United Airlines is amazing.
This guy, Scott Kirby, I I want I'm like he's like so smart. I mean, I got to tell that guy is dino might, but you can't fly there just because the stock's up, but you can't buy the stock. Oh, fim. How about Gabe in California, please? Gabe. Hello, Jim. Thank you for taking my call. My pleasure. You have uh so I have this stock.
You've been uh positive on it for quite some time with the recent turmoil. What are your thoughts on DraftKings? Okay. Uh, you know, it is incredible. I Boy, I saw a downgrade of Flutter today. DraftKings, I'm wait. Look, it's got to have these other states. It's got to have Texas, California, and Florida.
It just has to at this point. As long as it doesn't, the stock's not going to go anywhere. I thought they would have uh they'd be all on the ballot. I still think so. Uh I don't know. Um it hasn't happened and that's been disappointing to me, but it always could. All right. Unlike the last time around, Trump too is far more comfortable with taking the market down.
You got to get used to that. I'm trying. Now, let me tell you, as I mentioned, Johnson Johnson earnings were boyed by positive news out of its cancer fighting division along with an upbeat forecast. sitting down with the CEO of the pharma giant hear about the company's path forward. Do I like that stock?
Then as goes open AI, so goes the data center buildout. I'm taking a look at potential risk to the market if things go sideways for the AI behemoth. And aside from tariff turmoil, one of the biggest risks to the market is the supply of new stock. I'm explaining why that can be a bull killer. So stay with Clin ]
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