 All right, good morning everyone stocks hitting fresh record highs on this Wednesday And we are on the floor of the New York Stock Exchange with dream Kramer to break it all down and Jim Let's begin with IBM's earnings. Yeah, look IBM basically said listen It's going to be the fourth quarter now that you're going to see some sort of good news When the main frame is really in full swing therefore what dominated the discussion was 21 straight quarters of revenue decline The strategic imperatives are doing fine, but you need better than fine In the end I think a lot of people are just saying wait till next year and wait till next year environment Obviously, there's so many other stocks worth buying. All right moving to the banks. How about Morgan Stanley? Morgan Stanley shows you the power of the model of wealth management when executed well by James Gorman They're doing in wealth management when they bought that when they decided to emphasize that division They were making in a year what they're now making in a quarter This was a superbly superbly executed quarter And I think that James Gorman is going to be what may end up being the star of this banking season I I have felt it might be PNC. It might be my Corbett at city But in general, I like the bank earnings and I'm going to recommend that people find a bank to buy They're good PNC is good Morgan Stanley is good City which is owned by Action Alerts is very very good. We own key to key will be reporting But this is a strong undervalued group I could make the case that Morgan Stanley should go from 12 multiple to a 14 or 15 model because of its sheer Consistency and able to be able to try it from this environment. I'm going to talk again about key later But what did you make of KBW's downgrade of Goldman? Yeah, I think that Goldman was too hard on itself in his conference call I do think if there's any volatility, it's ready going to snap back Let's remember they did beat expectations and the equity business was really good If you believe there's going to be no volatility, then you're going to be right with Keith If you think that there will be some volatility, then you're going to get a great turns out be a great buy Are shifting to Chipotle and the reports of Neurovirus at one of its restaurants, you know This is one of the situations where enough time had been put between the initial instances and back in 2015 And now that Chipotle, I think could have really been a very upstock and now it's going to be another 18 months and that's just sometimes it happens what this is a very unfortunate incident It could happen to any restaurant chain as any of the restaurateurs would tell you But Chipotle is now off the radar screen for another 18 months. All right And what did you think of United Airlines earnings from week outlook? I mean look I think all airlines people think are created equal if you have domestic Which is why we like Southwest for action alerts Then you're not going to have a lot of price competition if you're up against in Asia You're up against some low-cost carriers And if you're up in Europe against some low-cost carriers and a high-cost carrier like United can't really compete as well So I think the stock which by the way is up 10 points since that nasty incident of a pass of a passenger being dragged out Was due for a bit of a pullback, but we're going to tell people in action alerts Please stay put in the Southwest and maybe we get a chance to buy some art there There are reports sell some in the 60s. Yes There are reports that discovery and scripts might merge and you have some great analysis on real money about that. Thank you Let's take both of them. Okay, so there's two murder. There's three merger deals One is involving Crown Castle and that's just a traditional deal That is very important in order to be able to expand footprint in San Francisco, New York to be able to make telcos More competitive. There's so many drop signals in these big cities, but in real money I compare the acquisition of my McCormick a French's mustered of Cattlemen these are very very important brands and a Frank's Redhub, which is Gardis Millennial brand to very akin to trying to what happened with discovery buying HGTV scripts and the reason I say HGTV is popular, but it's not popular among the millennials You need to be able to gather a series of Channels together in a bundle in order to have more power also The great thing about scripts merger with discovery was discovery has good international footprint to the Europe So they can run it through that on the food side of things You've got McCormick, which really really really wants to expand in the spice category Well, obviously muster's got spice and we know Frank's red-eyed is definitely spicy, but you know what in the end I think they overpaid I think that Conagra may have wanted it because Conagra has Goulden's staff Goulden's and French's will give you a solidified area in the in this center But remember the center of the store is the pantry of the store and that's not doing that well I also think that you have to worry about Amazon because that means it's smaller players can get in Remember Amazon has no shell space. It's just out there Sir Kensington, which was bought very shrewdly by Paul Pullman He takes gets rid of some of these margins that really don't have a lot of growth the margarine And he brings in Sir Kensington Sir Kensington is going to prove to be a better buy than French's I think although French's has been They've done nothing with that brand over a hundred years McCormick will reinvent that brand Oh McCormick eyes it McCormick long been a favorite of mine. Why because of the stay-at-home pieces people stay at home And they cook so I think McCormick had to do it was a defensive acquisition I think I do think they paid too much, but McCormick has historically been a good company I'm not pushing any of the food companies right now other than PepsiCo because they have genuine organic growth when we look at the whole Panoply of how consumer packaged good companies have done after all of them report people going to circle back to PepsiCo because of innovation Execution and renewal good action alert same. Thank you There was a note by Cowan out about something you've been talking about for quite some time Which is that Apple services revenue is gaining steam Yeah No There have been a couple of pieces in the in the interim which said that the service revenue is throwing is slowing now I think that was what they were really trying to gauge was that last year. We had a Nintendo craze We had Pokemon go which was a big service stream and you don't have that this year This note makes me feel better this note in the JP Morgan note about the Super phone the pro for $1,100 of which I think the carriers world to beat to have I remain convinced that Apple is an own stock Not a trade stock what all you ever get from these analysts is trade trade trade I'm trying to embed the thinking that along with Facebook along with Alphabet and yes, too that we don't own it Action alerts Netflix and Amazon these are stocks you can own and don't need to trade I don't own all of fang your portfolio would then be I mean it look I wanted to add auto desk I wanted to add and video which is on the Which is in our bullpen, but you can't own nothing but tech because as we know Diversification is the only free lunch in this business you mentioned Facebook That was a subject of your mad-dash segment. Yeah, Facebook is Heather Bellini's one of my absolute favorite analysts. I really liked her She's been completely level-headed throughout whatever storm has come and her piece about Facebook really does make it clear that The concerns that were raised in the previous quarter, which were about ad load may be mitigated by the fact that there's a lot of video Video is the way to be able to have ads that aren't that intrusive But certainly people are willing to watch now you layer on another piece This morning a Callum piece about how I'm not sure exactly which firm I shouldn't say that But I there was a theory that is being put out Which is that snap is losing business pretty rapidly to Instagram that is something I believe to be true I reiterate that Moffat Nathan's price target of 11 on snap may actually have be cogent here in the end after the 711 million share lock-up expires We'll be watching that one and then right now on the street commas a fantastic piece by our owner John So on NVIDIA yet now I think that Eric is right to raise questions about competition because that's what you always want to do Particularly for artificial intelligence, but he also raises the point that it is an ecosystem that NVIDIA offers I think all these companies are nipping AMD nips Intel nips But NVIDIA so far ahead in artificial intelligence machine learning Autonomous driving and GPU processors for gaming that I am not concerned and I do think that NVIDIA when it goes down Should be bought we have a price point to buy it that is some people think is unrealistic But you know when you have these downdrafts NVIDIA does get hammered All right, Jim, let's end as we always do with earnings to watch we talked about IBM earlier But what are you expecting from Microsoft? I look I think that Microsoft is advancing. It's very funny IBM is trying to be cloud a different kind of more proprietary cloud I like an open cloud Microsoft Azure this is such a Nadella decided committed this Them to a very competitive offering versus Amazon and versus alphabet people don't really talk about IBM And I think that Azure is going to surprise the upside Xbox surprise the upside, but I think that the real key here For Microsoft is that they're going to have tremendous momentum from LinkedIn No one's talked about this could be the quarter where they break out LinkedIn and tell you things are really good All right Thursday is a big name for action alerts plus earnings. Let's start with new core. Okay, new core is not a good quarter They pre-announced it We're in new core for structural change in America if you believe that they the Trump can get anything done It is the number one play in infrastructure next snap on snap one We have said on the conference call if you go back that we're not certain about the quarter Why because a O'Reilly automotive and well and also a AP And also AutoZone have correlated with little play. It is not a name. We've been emphasized All right, we talked about the banks earlier key core I think the key remember they have the first Niagara acquisition. They did not do that. Well in the various stress tests I think that's just because the stress tests were Routed in the idea that you're supposed to just sit there and use your capital to do nothing key Beth Mooney's It's got a very good geographic Footprint that I think is doing well. It's Midwest the acquisition of first Niagara is working very well There's still some synergies to be taken out. Remember when we look at the banks. I did like PNC I did as I went over these earlier. I like PNC. I like Bank of America. I like city I think that JP Morgan was not as strong, but it's still a buy Goldman Sachs not that bad And key is a good regional if you want to own a regional. What's next? That's it from my list. Okay But I do want to talk about your event in a couple of weeks Yeah, you know, I think that a lot of people want to spend some time with me and spend some time with Lisa my wife And I was at bar say Miguel last night and we're doing an event for people who want to subscribe to action alerts plus or members It will be the last chance to spend some time with me until we do something It's coming in October So if you want to put some input and give me some input on action alerts and what we should be doing and talk Stocks and talk about most importantly the show mad money that we do that night This is a great opportunity and it will be the only opportunity till October not that I'm going in a hibernation But we just don't do these things very often. It's exclusive and that's July 25th at bar Sam Miguel in Brooklyn Thank you. Jim Cramer. Thank you so much as always all right for more information on the stocks Jim mentioned please head back to the street.com