Jul 6, 2026 · 44 min
Cramer weighs market rotations, child accounts and chip fears
Mad Money w/ Jim Cramer 7/6/26
The episode connects confusing stock movements with practical investing questions, a major specialty-materials merger, new child savings accounts and an unconfirmed semiconductor report.
- 1Cramer argues that confusing rotations can obscure fundamentals, while still favoring Booking, Deere and Costco for different reasons.
- 2Solstice Advanced Materials and Element Solutions propose a $14.5 billion merger tied to semiconductor, data-center and nuclear exposure.
- 3Cramer questions a report about Anthropic potentially making chips with Samsung after it helped trigger a semiconductor selloff.
Don't miss
Cramer challenges the market impact of an unconfirmed report that Anthropic may make chips with Samsung, arguing that key specifics were missing.
The brief
Jim Cramer opens by addressing a familiar market puzzle: stock rotations can make price movements look disconnected from company fundamentals, complicating investor decisions.
Viewer questions bring distinct judgments on Booking Holdings, John Deere and Costco, while a proposed $14.5 billion Solstice Advanced Materials–Element Solutions merger adds a broader industrial test.
Solstice CEO David Sewell explains the merger’s strategic rationale, including semiconductor and data-center exposure, its ownership split, nuclear business, leverage and portfolio plans.
Cramer presents Trump Accounts as tax-advantaged investment accounts for children, emphasizing their financial opportunity and practical use while setting politics aside.
After defending Goldman Sachs at a much higher price, Cramer calls Chewy difficult to own, Butterfly Network speculative and promising, and NextPower still attractive despite selling too early.
The episode ends with Cramer challenging an unconfirmed report that Anthropic may make chips with Samsung and questioning its effect on semiconductor stocks.
What was said on this episode
61 statements · 51 positive · 4 negative · 3 mixed · 3 neutral
The latest labor report showed a pronounced slowdown in hiring.
“The labor report we got just last Thursday showed a pronounced slowdown in hiring.”
Listen at 1:54
The labor report suggests consumer spending may be weakening.
“when taken granularly, the report suggests that consumer spending may indeed be weakening.”
Listen at 2:04
Market rotations can create discounts in high-quality companies.
“these dislocations can give you incredible opportunities to high quality companies at a discount that shouldn't even exist.”
Listen at 3:06
Johnson & Johnson will report favorable news about blockbuster drugs.
“I think the company will have lots of good news about its myriad blockbuster drugs, especially its oncological franchise.”
Listen at 3:43
Johnson & Johnson will gain cardiovascular market share.
“I expect some good news about share gains in cardio.”
Listen at 3:48
Selling orthopedics would increase Johnson & Johnson’s valuation multiple.
“Selling the orthopedic business simply gives the rest of the company a much higher price to earnings ratio”
Listen at 3:59
Johnson & Johnson is attractive for starting a position.
“What a great level to start a position, a high-quality drug company.”
Listen at 4:19
PepsiCo is attractive for starting a position before earnings.
“I think the rotation has given you a terrific place to start a position ahead of Thursday's report.”
Listen at 5:08
The rotation has made Starbucks stock attractively priced.
“this rotation has put the common stock on sale.”
Listen at 5:27
Constellation Brands may have reached an earnings bottom.
“I think there was enough here to say that we got a bottom in earnings.”
Listen at 6:08
Constellation Brands stock is significantly undervalued.
“I think it's a steal down here.”
Listen at 6:18
T.J. Maxx is highly attractive to buy after its decline.
“I can't think of a more advantageous place to buy this high-quality stock.”
Listen at 6:54
Booking Holdings stock is a buy.
“I think it's a buy.”
Listen at 8:19
John Deere stock will continue rising.
“the stock is incredible, and it's not done going higher.”
Listen at 8:46
John Deere is a good stock.
“Deer's a good stock.”
Listen at 8:57
Costco stock will rise sharply if its multiple falls to 45 times earnings.
“If it drops to 45 times earnings, you're going to see a major move up.”
Listen at 9:57
Costco ownership will ultimately be rewarding.
“it will be rewarding.”
Listen at 10:15
The Solstice–Element Solutions merger is strategically smart.
“I think this is a very smart deal, though.”
Listen at 12:13
Solstice’s post-merger pullback may offer a buying opportunity.
“this pullback may be giving me a terrific buying opportunity.”
Listen at 12:16
Solstice sees generational growth opportunities in semiconductors and electronics.
“we're at a generational growth opportunity in semiconductors and advanced electronics.”
Listen at 12:42
The merger will create a comprehensive, world-leading advanced-materials business.
“the combination of our two companies, we believe, gives us a comprehensive product portfolio and really a world-leading advanced materials business”
Listen at 12:49
The merger consideration includes half a Solstice share and $10 cash per Element share.
“Element Solutions received a half a share of Solstice stock, as well as $10 in cash”
Listen at 14:14
Solstice’s nuclear business is fully booked through 2030.
“our nuclear business has sold out through 2030.”
Listen at 14:54
Solstice is critical infrastructure for AI and data centers.
“we are a critical infrastructure for AI and data centers. We're really well positioned for the future.”
Listen at 15:25
Demand for Solstice’s advanced-materials portfolio will grow unprecedentedly for a decade.
“It's growing at unprecedented levels for the next decade.”
Listen at 16:00
Solstice’s share price will rise as it executes its promises.
“as we execute and deliver. on what we promise the share price will follow.”
Listen at 16:16
The merger will produce 3.5x leverage initially and below 3x within 18 months.
“We are only going to be three and a half times net leverage with this deal. We'll be down below three times levered. within 18 months.”
Listen at 17:32
The merger will be earnings-accretive in its first year.
“This deal is accretive in year one.”
Listen at 17:41
The merger will streamline Solstice and enable above-market growth.
“it'll allow us to tailor make the portfolio be maybe a little bit more streamlined and focused so we can just. get down the fairway and grow faster than the market”
Listen at 18:23
Parents should take advantage of Trump accounts.
“I'm urging you to take it.”
Listen at 19:46
Trump account gains grow tax-free.
“your gains within the account will grow tax free.”
Listen at 19:54
Eligible children born from 2025 through 2028 receive a $1,000 initial deposit.
“children born between the beginning of 2025 and the end of 2028 will receive one. $1,000 initial deposit from Uncle Sam.”
Listen at 20:25
Families, friends, and employers can contribute $5,000 annually per child.
“families, friends and employers can collectively contribute five grand per year per child to these Trump accounts”
Listen at 21:21
Trump account contributions initially go into State Street’s SPDR S&P 500 ETF.
“At launch, though, all contributions to Trump accounts will be invested in the state street. SPDR, that's S-P-D-R in caps, Portfolio, S&P 500 ETF.”
Listen at 21:46
Index funds are generally suitable for investing for young children.
“When you're investing for someone who's very young, oh, it's hard to go wrong with an index fund.”
Listen at 22:00
Parents using IRAs should also use Trump accounts for their children.
“If you take advantage of an IRA, you should take advantage of a Trump account for your kids”
Listen at 23:06
Eligible families should open Trump accounts because of government and philanthropic grants.
“the free money that will come from many Trump accounts, including a thousand dollars for every child born between 2025 and 2028, makes them an actual no brainer for anyone whose kids are eligible for these grants.”
Listen at 24:08
Parents should open Trump accounts through the available online process.
“My recommendation is to do that.”
Listen at 25:19
Trump accounts are currently available.
“Trump accounts are now live.”
Listen at 25:27
Eligible parents should create Trump accounts for their children.
“a Trump account is a must create.”
Listen at 25:45
Goldman Sachs may be as inexpensive now as at the earlier recommendation.
“at 17 times earnings, I know this sounds strange, Tom, but you know what? It may actually be just as cheap”
Listen at 26:38
Goldman Sachs could reach $1,700 without becoming expensive.
“This company could easily go to $1,700 without a problem and still not be expensive.”
Listen at 26:48
Investors should continue holding Goldman Sachs.
“I want you to hold on to that, Tiger”
Listen at 26:54
Meta should monetize more of its AI infrastructure investment.
“Meta needs to monetize more of that investment.”
Listen at 28:05
Oracle would trade near seven times 2030 earnings if forecasts materialize.
“if the company can hit those numbers, that means it's now trading at just over seven times 2030 earnings.”
Listen at 30:46
CoreWeave is arguably the leading neocloud company.
“CoreWeave is arguably the best in the business”
Listen at 31:27
CoreWeave ended Q1 2026 with backlog just under $100 billion.
“Core, we've ended the first quarter of 2026 with a backlog just under $100 billion”
Listen at 31:49
CoreWeave revenue is expected to rise from $13B to over $40B by 2028.
“The expected revenue ramp is aggressive from just below $13 billion this year to just under $25 billion in 2027 to more than $40 billion in 2028.”
Listen at 31:58
CoreWeave is one of the stronger neocloud companies.
“I think it's one of the stronger players in the neocardial space.”
Listen at 32:36
NVIDIA took a $2 billion stake in Nebius in March.
“NVIDIA took a $2 billion stake in this March.”
Listen at 32:48
Nebius has a five-year Meta contract worth up to $27 billion.
“Nebius has Meta signed to a five-year deal worth up to $27 billion”
Listen at 32:54
Premium compute pricing indicates a shortage of data-center capacity.
“The fact that they can run out and compute it at a huge premium tells you that there's a shortage of data center capacity, not too much, a shortage.”
Listen at 33:52
TerraWulf signed a 20-year, $19 billion Anthropic deal.
“Just today, Tara Wolf signed a 20-year, $19 billion deal with Anthropic”
Listen at 35:30
Oracle, CoreWeave, and Nebius can command better AI-cloud pricing.
“Oracle, CoreWeave, and Nebius are in the high-performance, full-stack AI cloud bucket that can command better pricing.”
Listen at 35:49
Chewy is too difficult to own.
“I think we have to say Chewy, too hard to own.”
Listen at 37:02
Investors can buy some Butterfly Network shares around $8.
“at $8, you can buy some. You can buy some a little bit lower.”
Listen at 38:17
Butterfly Network is a promising company.
“But it is a very promising company.”
Listen at 38:20
NextPower should continue rising unless data-center construction is restricted.
“You have a winner there. I think you continue to go higher barring communities saying no more data centers.”
Listen at 39:30
Anthropic’s chipmaking talk may be intended to obtain better chip pricing.
“the pros know that when a company like Anthropic floats the idea of making its own chips, chances are it's just a stalking horse to get. Better pricing.”
Listen at 41:34
Anthropic’s cybersecurity product would cause more hacks than it prevents.
“Anthropic will cause more cyber hacks than it will prevent.”
Listen at 42:47
Anthropic cybersecurity would require CrowdStrike or Palo Alto Networks integration.
“unless it's matched with a CrowdStrike or a Palo Alto Networks.”
Listen at 42:49
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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