 Hey, good Tuesday morning everyone. It is time to talk about the markets with Jim Kramer on the floor of the New York Stock Exchange All right, Jim. Let's begin with Equifax We now are hearing that more people may have been affected by this hack I think that people have to understand that what the goal of the bad guys is is to take out a line of credit in your name Because they have everything that you Have so in other words you have all the information that might that someone could say listen I'm x meaning you and I would like to take out a $15,000 home equity loan against what I own I own this house. It's a dislocation and here's my social security number And I'd like to open that line of credit now. There'll be a lot of banks that say well look I want to know more about you but there'll be a lot of banks to say fine and What you have to do is be sure that the bank knows that you are not or want to take out a line of credit now Equifax is not saying that but I'm saying it because what I don't want you to do is get hurt I don't want you to get hurt and then sue Equifax and end up paying lawyers a lot of money and getting like a quarter of what you thought So that's what they intend to do the bank guys. They want to open a line of credit They're not trying to steal money out of your bank account. That's too small They want to be you and get a giant check from the bank Which is from your account. It's scary and we have Rick Smith on Capitol Hill today But you know these hearings right or just for show. I mean do you expect any real change? I said on CNBC, you know, you're not gonna get changed The reason why you're not gonna get changed is Equifax is very much part of the firmament and what you would need to see change is Big shareholders saying listen, I can't order anymore. I'm selling and big clients saying I can't trust Equifax You're not hearing either It's like when I talked about Wells Fargo this morning if Warren Buffett said, you know what the reason why I bought this stock is Because the cross-selling and it turned out there really wasn't real cross-selling and so I have to debate my position That would be like what he did with IBM Remember he came on TV and said that he was wrong about IBM and that was pretty much the end of the stock It went down dramatically if he had said he's wrong about Wells Fargo That would have been very very important to me But he didn't now Wells yields 2.8. I don't like Wells as much as a like city Key we took our money out of Wells bought some key which has been terrific And we own city which is great But I just want people to understand that the constituencies for Wells are mr. Buffett and Congress and neither is taking any action When Warren Buffett said he has faith in Tim Sloan, I mean, do you have faith in Tim Sloan? I think the culture of the bank is Questionable now. Why do I say that I read the Sherman and Sterling report about the culture of the bank? And the culture of the bank was designed to get the stock higher by promoting this notion of cross-selling and Telling Wall Street that because they get more money per account than anyone else They should have a premium multiple to all the other banks and that's what was going on for a long time That had been the thesis So am I sure that that thesis is now eradicated? Not clear I think that mr. Sloan's good guy, but I don't I think the culture is called into question, but I Would go a step further and say I've called it the question, and you know in a certain point I Have to move on because nothing's going to happen. I I don't like Wells as much as I like some other backstab but I am Very aware after many years of being in business and journalism That I could sit here and tell you over and over again that I think it's wrong and it means nothing Unless a prosecutor gets involved Justice pardon gets involved or they actually say listen We want to claw back all of the money and we want you to have a special master on the board Which is what I proposed Then I don't think there's real change a special master on the board would make me feel Good, and I would probably even recommend the stuff, but I do feel that that's the change that's necessary That's what I totalist before when she was on bad money a special master a Magistrate retired federal judge put on the Wells Fargo board would do a great deal for me to think better about the culture Something will continue to watch and Jim when you talk about Wells Fargo in the sense of the looming rate hikes another stock We should look at his paychecks, and you have Martin music on tonight Yeah, paychecks is a company that guided much better than expected there had been you know There's a lot of cells and very few buys on paychecks the analyst community has not liked to stop and they fought it all the way up and That's not clear to me why they would do that But Marty music did a great job and guided up and I will be talking about those guide-ups tonight I am sure that the analyst community will dig in their heels Not unlike they did with PayPal in the 30s and 40s where they just said look this is not a good story They don't think the paychecks is a good story if you think that a big guide up in the second Hey, you know for next year is not a good story. I can't help you. It's a very good story We'll watch for your interview tonight at 6 p.m. Jim also GE chairman Jeff Imelt stepping down earlier than we thought Here's another good example of what I'm talking about as I don't have subpoena power I don't have anybody in the board room You know, I didn't expect Imelt to retire until you're in but why when I checked with the company. They said listen, you know GE Flannery's doing really well sir retired early now. What are you gonna do? Are you gonna say? Well, is that because he? Interviewed for the uber job. I mean and then they'll say no Jim He retired early because he likes Flannery. I'm No subpoena power. No ability to be able to crack that facade if it is a facade at all Maybe that's exactly what happened. You have to make the judgment my travel trust owns GE We have told Members of the club that it's not a great stock. I want to see what the reset is GE Starbucks Nule there's some companies that we own that have let us down and it's okay now you could say Jim They didn't let you down you let Club members down, but we have tried very hard to tell people we downgrade stocks and say listen don't own this stock and We own it, but we're gonna try to get rid of it some day We hope better things but if you just start subscribing to the product this is not the one to own and But I am very Resigned to the notion that there are stories that come out that you can necessarily Say here's what I think really happened now I did put Richard Smith on the wall of shame and Equifax because it was no reason how he could keep his job That was wrong and I can urge people I can urge boards of directors to say I wouldn't keep that person on And put pressure like that, but in terms of finding out the truth about why email left it I have to just say listen he left because they said that Gee that he's happy with Flannery's work. I happen to like Flannery very much. I have said over and over again I think Flannery's gonna good do a very very good job But that said the company he was given is not a good company And that's because there were a lot of changes that were made oil buying oil at the top Selling finance at the bottom. These are the kinds of things that make it so the company's very problematic Just generally speaking, are you okay from a corporate governance perspective with someone being chairman and CEO? I prefer to have separate. I Think that that gives you gives the CEO Puts a lot more heat on the CEO and CEOs make a lot of money and it's okay that can handle heat All right moving on a linar reporting and earnings beat the CEO saying that the storms are just short-term impact Yeah, that's true. And I'm working on a piece right now for real money about how why is it the homebuilder stocks are finally catching fire? I mean there's a I did a piece this morning about like, you know the negatives morphing the positives Yeah, you know you look at General Motors, and it's like they've been saying good things and then suddenly it catches fire This is what's called bull market activity, and I think that a lot of it's been a very long time Since there's just been plain bull market Action bull market action meaning that people are saying you know what this is wrong that General Motors sells is six times earnings It's better than that and I think a lot of people do top-down and say well listen the S&P is expensive What I'm looking at is individual components the S&P and say well geez that's that's too cheap I think the JP Morgan. I think it's cities too cheap I I just think you have to look and see what's cheap, and you can buy Jim I wanted to ask you about a Wall Street Journal report saying Goldman Sachs is weighing trading Bitcoin You used to work there any thoughts there? Yeah, I mean look a it's very interesting. There's a debate on Twitter It's a stupid debate. I said that this is good for Nvidia because you mine Bitcoin with Nvidia People say yeah, but Goldman this Goldman that look if Goldman wants to make a market that's fine JP Morgan said it's a fraud Nvidia stock I said yesterday has a wall 180. I reiterate that there's a wall 180 the big the big Semiconductor stocks are not working here after working last week I think that they remain good buys them that Nvidia video from yesterday went like viral on ourselves. We did so well Well, look, I mean Nvidia's Very you know, it's a hundred billion dollars people are very suspicious of that People do not think it had that great a quarter I look at artificial intelligence go back and see what Dickerson said district said about applied materials, and I think you'll see that it's a very very solid investable thesis of artificial intelligence of which Nvidia is one of the few companies that's direct beneficiary of plot materials lamb, but these stocks had a very big run into Q4 and there's profit taking there and new money rolling into Intel and General Motors So it's money going out of the companies that had the stocks that had a big run and into the stocks that haven't had a big run And that's been a theme already. It's just been two days if anyone wants to know about artificial intelligence They should look up during of you with applied materials because we learned so much. Thank you very much Jim before we end Pepsi reporting earnings tomorrow. It's an AP we trim PepsiCo ahead of this because we Feel that that group is very problematic group of which PepsiCo is the best It's by far the best house in a in a really bad neighborhood and so therefore We are concerned about it. I don't know you've got a trading strategy Speaking to you're doing your terrific conference call this morning And I think you have to bring up this notion of what are you know? Can you own a stock in a group? That's really bad if the stock if the company is great It's an interesting question to put to your group, you know, can you own a bond in an area? I mean, I know you've got a collected group, but I do think that One of the things I preach is diversification and I'm reluctant to just You know remove all the packaged good stocks because I think that there's some value there But you know, you always want to try to figure out whether you have to be in everything. It's hot If you're in everything, it's hot. You'll find yourself in a lot of things that are cold It's good advice. We'll be talking about that and much more on trading strategies today at 1130 Jim Kramer Thank you so much and for more information on the stocks dimension. Please head to the street com