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If you're looking for an honest read on the economy, look no further than the rails, Jim Cramer reminded his Mad Money viewers Wednesday. CSX (CSX – Get Report) and Cramer showed viewers how this one earnings report can be used to read the entire economy.
Cramer said the page investors must pay attention to is titled Revenue Highlights, and breaks down the railroad's revenue by cargo type. For example, this quarter, shipments of chemicals rose 5%, signed to buy Dow Chemical (DOW, pink cars by 2%, led by SUVs and trucks) Cramer said he'd buy Ford (F – Get Report), which trades Cramer to recommend DowDuPont (DWDP – Get Report), Lennar (LEN – Get Report).
Cramer added, and right now money managers are selling healthcare. That's why Eli Lilly (LLY) and HCA Healthcare (HCA) ended the day lower.
Shares of CSX ended up 4%, but that's only part of the story. Investors need to look at a group of people who understand the economy.
Dow Chemical and DowDuPont are holdings in Jim Cramer's Action Alerts PLUS member club. Jim Cramer buys or sells DOW or DWDP? Learn more now.
Netflix Value
Can Netflix (NFLX – Get Report) peacefully coexist with so many new streaming services coming online? Cramer said despite the increase competition, Netflix is still the only show in town.
While it's true that there are some of the hot spots ahead of us (AAPL – Get Report) and Walt Disney (DIS – Get Report), the fact is that when it comes to high-quality happy, consumers simply can not get enough. And it's a fact that it would be more important than that we would rather pay for more than that huge cable bundle, in the older generation, have become accustomed to.
Cramer said, Netflix, the service, still remains cheap. Consumers would be willing to pay a lot more for this essential content, just as they will be willing to pay for content from Disney and Apple. And that's why shares of Netflix, the stock, also remain attractive.
Soup's On
After spending years in the wilderness, can Campbell Campbell (CPB – Get Report)? Cramer dove into this famed packaged foods maker to find out.
Campbell has been a mess for years, Cramer explained, with shares off, Denise Morrison, CEO of Denise Morrison, in 2018. But it's just that, it's all over. Dan Loeb took a stake in the company and pushed hard for an outright sale or the replacement of the entire board of directors.
Last November, Campbell and Loeb came to an agreement, giving Loeb two board seats and a stake in the company's search for a new CEO.
Since then, Campbell has been able to stabilize its core business and seemingly has its leadership vacuum under control. Trading at 15.7 times earnings, Cramer said he did not see much upside-down, but he was attracted to the company's dividend, which country you wait for either a turnaround or the end of the company.
Executive Decision: First Horizon
For his "Executive Decision" segment, Cramer spoke with Bryan Jordan, president and CEO of First Horizon National (FHN – Get Report), the regional bank with 13.8% for the year, including a 1.6% increase today.
Jordan said First Horizon has another earthquake and is growing. He said overall, risks are being managed better by financial institutions and they have worked hard to build a portfolio that works well in our changing economy.
When asked about more mergers in the industry, Jordan said there are still things that can be done, however for 2019, they will be focused on optimizing the footprint they have not expanding.
Finally, turning to the topic of technology, how does it work?
Lightning Round
In the Lightning Round, Nvidia Cramer was bullish on (NVDA), Constellation Brands (STZ – Get Report), Bausch Health (BHC – Get Report) and Advanced Micro Devices (AMD – Get Report).
Arista Networks (ANET – Get Report) and Gilead Sciences (GILD – Get Report).
Anadarko and Chevron
In his "No-Huddle Offense" segment, Cramer said the acquisition of Anadarko Petroleum (APC – Get Report) by Chevron (CVX – Get Report) for $ 33 billion may have been the first merger in the oil patch, but it will not be the last.
Cramer predicted just last week on the show that mergers in the oil sector were likely to occur. Apache (APA – Get Report), Concho (CXO – Get Report), Parsley Energy (PE – Get Report) and Pioneer Natural Resources (PXD – Get Report) could all be next. That's because Chevron was not the only bidder for Anadarko, Occidental Petroleum (OXY – Get Report) was also in the bidding.
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