Mad Money w/ Jim Cramer 7/6/26

**SPEAKER_1** (0:00)
The board recommends approving...

**David Sewell** (0:01)
Regarding that seat on the committee, we're promoting...

**SPEAKER_3** (0:02)
To most quarterly earnings...

**SPEAKER_1** (0:04)
Every day, shareholders meet to discuss important matters about the companies you invest in. Now you can easily make your voice heard. Vanguard Investor Choice gives you a say in the companies you invest in. With just a few taps, you can set your proxy voting preference for your index funds. Visit vanguard.com/investorchoice to learn more. Vanguard Investors own shares of our index funds, which own shares of the companies they invest in. Available for Vanguard index funds that participate in Investor Choice. Vanguard Marketing Corporation Distributor.

**SPEAKER_4** (0:30)
When you're at work, you never know when you'll be interrupted. But with the Dell Pro powered by Intel Core Ultra with V Pro, no matter what distracts you, your laptop won't. It's battery optimized for the way you work. With built-in intelligence that quiets distractions when you need to focus, your laptop will help keep you locked in, even when it's bring your dog to work day. Built for those who stay in the flow.
The Dell Pro.
Built for you. dell.com/dell-pro.

**Jim Cramer** (1:01)
My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. Mad Money starts now.
Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramer. Are you with my friends?
I'm just trying to make a little bit of money here. My job is not just to entertain, but to educate, try to teach. So call me at 1-800-743-CNBC. Tweet me at Jim Cramer. Nothing throws off home gamers like you. Then a rotation, those huge swings in stocks that seem to make no sense whatsoever, at least when it comes to the fundamentals of the stock show.

**SPEAKER_7** (1:43)
So, so, so, so, so, so, so, so.

**Jim Cramer** (1:45)
When you don't understand why your stock's moving, sometimes violently, it creates too much mystery. It makes you want to lead, to run, not just to index funds, but to the sidelines entirely. I stand against that, and I want to demystify this, demystify what a rotation means, and I also want to tell you how to profit from it.
So on a day when the Dow advanced 156 points, SMB gained.72%, NASDAQ jumped 1.12%, let me walk you through what's behind so many of these big moves, so you can profit from them. First, you have to understand that there are huge funds that make their decisions based on key pieces of data. These money managers have what's known as a world view, meaning a vision of what's going to happen in the near future. Often these people run so much money that they can't just pick stocks. Individual stocks are too small for them. Some, they don't own the whole thing up. They have to pick broader trends and use ETFs or self-created baskets. The problem is, their world view can change on a dime. The biggest piece of data, at least for the stock market, is the monthly non-farm labor report. We often see rotations based solely on that employment data. The labor report we got just last Thursday showed a pronounced slowdown in hiring.
It's true that our employment rate stayed the same. I didn't know, panic here. But when taken granularly, the report suggests that consumer spending may indeed be weakening.
That can trigger a major change in how these money managers see the world. If you're running tens of billions of dollars, you might want to de-emphasize stocks that depend on consumer spending and overweight another area. Maybe technology, where companies aren't that sensitive to the consumer because they're mostly business to business, not business to consumer like we're about to talk about. Now sometimes we get these rotations that are impossible to notice because there's so much else moving on market. You get lost in it. This is not one of those times. This market is distinguished by how thin it is. Thin meaning there aren't many buyers or sellers. So if someone big decides to move money in a basket, just in trusting brokers to say, get this thing done by the end of the day, that's how it really works. You're going to see some massive moves in real time for no reason whatsoever. Why do we care about this? Because these rotations create dislocations that seem to come out of nowhere. Sometimes the dislocations can give you incredible opportunities to high quality companies at a discount that shouldn't even exist. And it wouldn't if it weren't for the rotation today. We got a bunch of them. I've been recommending Johnson & Johnson ever since they mostly got past the overhang from all those TALC lawsuits. No, the especially solidification hasn't gone away. But J&J is now fighting each case individually. So there are really no major rulings that can impact the stock that much. Johnson & Johnson reports on the 15th of July. Often the stock trades erratically on the report day. I know that. But then begins to run higher in stair step fashion.