CNBC’s Jim Cramer on Tuesday told a “Mad Money” viewer that he should pass up a stock like iRobot in this market environment.
He instead suggested a blue chip stock, which are long-standing global corporations that dominate their sector.
“We’ve got companies that are very good like a Procter & Gamble. Like a Walmart, ” the host said. “These are really solid American blue-chip companies, and they’re better than iRobot and that’s what you should be buying in this situation.”
Cramer went on to say that the uncertain market hinges on what, if any, progress that U.S. President Donald Trump and China President Xi Jinping make on trade.
“I’d expect barriers to be raised pretty much everywhere. Look out,” he said. “Next could be Germany.”
Click here to get Cramer’s latest thoughts on global trade tensions
A soggy session
Cramer said Tuesday’s market decline was necessary.
After the major indexes started the day strong, the Dow Jones Industrial Average ended the day more than 14 points lower, breaking a six-day winning streak. The S&P 500 backtracked 0.04% and the Nasdaq Composite lost 0.01%.
Stocks cannot continuously make big leaps on the same news, the host said. The market can go down until it gets more fuel.
“We’ve had a colossal rally. After this kind of run, the bull is fatigued,” he said. “The froth is being tamped down. And that’s exactly what this market needs in order to recharge.”
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Combine and conquer
Adam Selipsky, CEO, Tableau Software
Scott Mlyn | CNBC
The value of the Tableau-Salesforce multibillion-dollar tie-up exists in the company’s shared customer base, Tableau CEO Adam Selipsky told CNBC a day after the deal was announced.
Tableau has a “very broad and deep” analytics platform, while Salesforce has a lot to offer in machine learning and artificial intelligence, Selipsky explained in a “Mad Money” appearance.
“Our engineers can’t wait to pop the hood on those and check out what things that we might use on behalf of our customers,” Selipsky said in the one-on-one interview with Cramer. On Monday, Salesforce CEO said that Tableau wanted equity in the company.
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VIX it up
Traders work on the floor of the New York Stock Exchange.
Two market measures are showing signs that stocks have run too high, too fast, Cramer said.
Comparing the action in the S&P 500 and the VIX — the CBOE Volatility Index that gauges investor sentiment — there is reason to wait before adding more holdings to a portfolio, according to one of the host’s colleagues at RealMoney.com.
Carmer said “the charts, as interpreted by Mark Sebastian, suggest we are due for a bit of a pullback.”
Understand the chart action and analysis here
Robert McNally, CEO, EQT
Scott Mlyn | CNBC
EQT Corp, the natural gas company entangled in a board room challenge with a subsidiary, saw its stock rise to $36 and later plunge to about $16 surrounding its takeover of Rice Energy in 2017. EQT CEO Rob McNally visited Cramer to discuss changes that the company has made as it gears up for a proxy fight with shareholders.
A proxy fight is when shareholders team up to influence a corporate vote. McNally became chief in August after the stock collapsed more than 50%.
“We think the plan that we have put forward, however, is one that is based in reality,” said McNally, who took a shot at Rice Energy’s idea for a turnaround plan for not being “based in reality.”
“Just in the time that we’ve been in control of the company, we’ve cut $150 million worth of costs out of the system and generated $300 million of free cash flow between the fourth quarter of 2018 and the first quarter of ’19.”
Catch the full interview here
Cramer’s lightning round: Yeti is ‘undervalued’ and a ‘long-time hold’
In Cramer’s lightning round, the “Mad Money” host zips through his thoughts about callers’ stock picks in rapid speed.
Yeti Holdings: “I like Yeti very much. I think it’s terrific and undervalued and I think it’s a long-time hold. That’s how I like that stock. And I’d like to have them on, too, by the way.”
Daktronics: “No, no, no. Daktronics. I haven’t liked them for about six years.”
TherapeuticsMD: “Ouch. No, we’re done. Cut it. Cut your loses.”
Disclosure: Cramer’s charitable trust owns shares of Salesforce.com.
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