Both the Federal Reserve and the President are trying to reassure the stock market, Jim Cramer told his Mad Money viewers Tuesday, but both of them couldn't be more wrong.
The markets hate uncertainty, Cramer reminded viewers, and after positive comments this weekend from President Trump that a trade deal with China could be reached, today investors weren't so sure. It is increasingly looking like the trade war with China isn't about trade, but rather slowing China's advancement as a global superpower.
Then there's the Fed, which continues to see a virtual parade of its members making hawkish comments, contradicting those of chair Jay Powell. And while the Fed and many big banks continue to tell us everything is fine, bond yields are telling a different story, one where banks will soon pay out more in short-term deposits than they make from long-term loans.
Cramer said the Fed continues to imply that its not listening to the likes of Toll Brothers (TOL) or General Motors (GM) or countless industrial companies, all of which are saying the economy is slowing. Instead, the Fed seems set on maintaining their academic ideals of stamping out wage inflation at all costs.
That's why the market plunged over 3% today and why today might not be the last.Executive Decision: Marathon
For his "Executive Decision" segment, Cramer sat down with Gary Heminger, chairman and CEO of Marathon Petroleum (MPC) , the oil refiner with shares off 23% for the year.
Heminger said his company's acquisition of Andeavor will yield over $1.4 billion in synergies, and they believe they can find even more. Add to that the falling price of crude oil, which is Marathon's primary cost of goods sold, and all signs point to a bright 2019 and beyond.
Heminger said Marathon's integrated model will soon include over 4,000 Speedway filling stations coast to coast. And while it's likely OPEC will curb production, there is still plenty of U.S. and Canadian based oil to go around.
When asked about President Trump's friendly stance towards the oil industry, Heminger said the president has always wanted energy dominance for America and we're well on our way towards that goal.
The power of program trading was in full effect during today's sell off, Cramer told viewers, as the algorithms once again ruled the averages.
Back in old days, money managers looked at the tape and made decisions based on their gut feelings, Cramer explained. But today, those feelings have been replaced by data and algorithms that can tell you in an instant whether a stock is likely to go up or down in a given situation.
These programs have decided when the yield curve inverts, its time to sell the averages, Cramer said. The problem is, everyone is using the same programs, which leads to a lack of buyer. Who would buy when everyone knows statistically, it's the wrong thing to do? That was the question many were asking today. The answer? Not many people.Executive Decision: Coupa
In his second "Executive Decision" segment, Cramer also spoke with Rob Bernshteyn, CEO of Coupa Software (COUP) , the cloud-based expense management company.
Bernshteyn said Coupa is firing on all cylinders and now manages over $1 trillion of customer spending. This year alone, Coupa added over 100 new customers, including United Continental (UAL) . In the case of another customer, Procter & Gamble (PG) , Bernshteyn said Coupa helps the company procure goods, manage contingent labor, lower expenses and more.
In today's world, customers operate simpler, faster and smarter than ever before, Bernshteyn noted. Coupa provides value in just a few months, he said, with many enterprise clients transitioning in less than a year. They use the latest in artificial intelligence to help companies manage risk and adjust their spending on the fly in real time.
Executive Decision: Anaplan
In his final "Executive Decision" segment, Cramer also sat down with Frank Calderoni, president and CEO of Anaplan (PLAN) , the planning software provider that recently came public in October.
Calderoni said the latest trends in planning allow businesses to react quicker and make better, faster decisions. Yet many companies are still in the early stages of transforming their planning systems to be more predictive in nature.
Planning is about a lot more than just financial planning, Calderoni added. Today's companies need to plan their sales, marketing, HR, supply chains and more, all simultaneously.
Anaplan has been working with Carter's, the children's clothing retailer that manages over 250,000 SKUs across 10,000 locations. Calderoni said Carter's needs to turn over their inventory every two to three months, creating a very large planning challenge.
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