Stocks rose, with the S&P 500 and Nasdaq closing at their highest levels since April 2022, and Jim Cramer is breaking down today's market moves. First, Cramer's checking in on pandemic play DocuSign to see how the company is faring with CEO Allan Thygesen. Then, could a sprinkle of Sprinklr bring some profits to your portfolio? Cramer goes one-on-one with CEO Ragy Thomas to talk AI, the consumer experience, and more. Plus, Cramer shares his stock winners from the Inflation Reduction Act.

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The consumer price index is no longer red hot and it looks like the Fed is winning.

And that's why we could rally Dow advancing 86 points as a beginning point.

Some more said and the Nasdaq jumping 1.15 percent.

We had a surprisingly positive consumer price index number, either if that's more or less what everybody was expecting.

That is the Fed done tightening right In your dreams, people.

The Fed's not done, and I'm going to tell you why.

First, going in the right direction is not what the Fed's aiming for.

The only line in the CPI that made things truly better was the decline in used car prices.

If it were suddenly to reverse and go up in price, then the CPI would be headed in the wrong direction.

If the Fed were to change course based on a number that's heavily influenced by a single piece of data, they would have 0 credibility.

Second, the data that's most important when it comes to inflation right now, housing prices, isn't even in the consumer price index.

Back in 1983, a group of politicians took the price of homes out of the index in order to make that inflationary moment look, well, less inflationary.

Unfortunately, home price escalation is now the single worst form of inflation out there.

Home prices are up a staggering 40% since 2019.

It's routine now for Toll Brothers to sell million-dollar homes and have bidding wars over them.

I think it's safe to say that at this pace, the American dream of owning a home will be borderline impossible for the vast majority of people in this country because of inflation.

If you're a member of the Federal Reserve, this is completely unacceptable.

Home prices must be rolled back, not just less inflation.

The difficulty for the Fed is that there's a huge gap between the number of homes being built and the number needed, perhaps as many as 4 to 5000000.

And there's very little existing supply because interest rates were kept so low for so long that people don't want to sell and move somewhere else where they have a much more expensive mortgage.

So the Fed has to play for time until more homes can be built and more apartments can come online.

Third, we need to stop confusing any given index with the tight labor market that makes our current battle of inflation so intractable.

There are still way too many jobs chasing far too few employees.

There are still more businesses that are expanding rather than contracting.

Even after the mini banking crisis, incredibly, there's plenty of capital and credit available to start a new business.

And let me tell you what I'm really worried about.

The gigantic number of jobs that are being created all over the country to meet the demand generated by all the federal government money earmarked to stop climate change or to build our own semiconductors in this country to get away from the chokehold of Taiwan.

Both worthy goals, both goals I champion.

This morning I was going through the jobs that are needed in the battery industry, the solar industry, the wind industry, and the semiconductor manufacturing industry.

I then layered on the biggest building projects in our nation, like the liquefied natural gas export plants that have made us the world's biggest exporter of stuff.

I can tell you that there are literally hundreds of thousands of jobs that are being created right now.

Now that would be terrific if we're in the middle of a recession or even just a stagnant economy.

All these projects could take say a 6% unemployment rate, bring it down to 4%.

But a 3.6% unemployment rate that we have?

We have no real existing slack of trained workers who know how to work with their hands, who know their way around factories, who do spot welding or handle heavy machinery.

The people currently being laid off in this country are either top of the line white collar workers in tech companies or cashiers in failing retailers.

And there aren't too many of those, almost all of which seem to be connected with Bed Bath and Beyond, like Harm and Face Value's Bye Bye Baby or the previously owned Christmas Tree Shops.

Worse, the kinds of jobs that are being created are really so specialized, it's almost impossible to believe that there are more than a handful of people who really know how to do that.

During the heyday of Intel, there was a core group of engineers who understood how to put up semiconductor fabs, and Intel was the best of the best back then.

Now our country's going to be putting up the fabs in places all at once, where there's very little institutional knowledge of how to construct these complex factories.

Companies that are building them in Ohio and New York will be very hard-pressed to find the right people to do the job, to find any people to do the job.

But that's nothing next to the talent that will be needed to build battery plants for electric vehicles, let alone the skilled workers who know how to operate these plants.

I have no idea how those will ever be staffed.

The solar and wind projects are so voluminous, you have to believe the few companies that build these things will be bidding against each other for talent.

And that's how limited the knowledge pool is.

Again, I am not against any of these projects.

I was a huge supporter of the Chipsack, probably the first 1, because we currently source the bulk of our semis from Taiwan, a country with disputed sovereignty that the People's Republic of China always seems eager to invade.

We had no sizable troop presence there to stop them.

The hope is they wouldn't do something crazy like invade a US ally because it might trigger World War 3.

It's vital that we have our own semiconductor manufacturing capacity, But not just for industrial purposes, but for military might.

I'm also a big fan of using clean energy, not dirty energy, solar, wind, electric vehicle charging.

These are all in integral to cleaner skies.

I want to continue to export natural gas into the global market because it's much cleaner than coal, But we sometimes seem to forget that we now have an economy based on services, not manufacturing.

And our economy is about 70% based on services.

Even in recessionary times, we wouldn't have a pool of skilled labor that's big enough to handle all these projects.

We don't have the schools that can train people either.

Our country got out of huge manufacturing after NAFTA and seeded a ton of manufacturing to China.

It's part of his honor to have cheaper goods for people to wear and furnish.

So if you're the Fed, you can be joyous that the price of cookies has come down and fish seems to have stabilized, apparel is cooling off, and secondhand cars are going in the right direction.

But the number of jobs being created right now by federal money is so gigantic that it's almost impossible to imagine where we'll find people to fill these positions, at least at these prices, if not much, much higher.

They're going to be paid a heck of a lot more than anyone expects, and I wouldn't be surprised if the general contractors don't even hazard to bid for these jobs because they'll lose too much money.

Bottom line, unfortunately, even with inflation cooling, the Fed has no choice but to keep tightening.

If only to offset the tidal wave of inflation caused by all the government spending that's about to steamroll this economy.

I heard your comments yesterday on shorting in the market.

So I remember the Bear Stearns story where they were concerned about being shorted and looking to be crushed.

And this morning I was looking at Newell, NWL, and noticed that they're 6% short.

But they recently just started increasing in their price so you think they're in play

no no I think that they've actually got management that's turning things around but the balance sheet is not what it wants, what it should be.

And any company that has a not great balance sheet is in this environment going to, if we're thinking we're going to recession, attract short sellers.

I don't care for the company in part because I still think they have a lot more to do with the balance sheet but it is better than it was a year ago.

Jim, many thanks for your investing help over the years.

Several weeks ago, a short seller report knocked down exponential fitness.

I was talking to Ben Stoddard, who is our research director, and I said, we got to get these guys on.

OK, even with inflation cooling, the Fed has no choice but to keep tightening if only to offset the inflationary impact of all the government spending it's about to hit this economy.

Well, there are some higher quality members that are making a comeback, and I'm talking to 1 of the school sprinkler fresh off the company's investor day to learn more about the story.

Then we're continuing our series on spending related to legislation.

This time dignity, inflation reduction act to see how you could profit off the new flow of money.

So could this be the catalyst the stock needs to finally move higher?

Send Jim an email to madmoney at CNBC.com or give us a call at 1-800-743-CNBC.

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2 years ago, when it became clear that the IPO market had jumped the shark, I stopped covering all but the most high-profile new offerings because I could tell this thing was headed for disaster.

This year, though, we're seeing the higher quality members from the IPO class of 2021 make major comebacks.

Take Sprinkler, the enterprise software company that helps its clients manage all of their customer facing functions from call centers to social media accounts using a single platform.

Sprinkler stock has now doubled from its low set last December.

And today, the company made it the case for why its shares could go much higher, much higher still, and held an investment day right here in the New York Stock Exchange.

I want you to hear that story directly from the horse's mouth.

He's the founder, chairman, CEO of Sprinkler.

I only picked a couple of companies that no 1 really knew about to have come on.

And I loved what you guys did because of the way you managed everything.

But since I've seen you, there's been this incredible explosion of people writing stuff and saying bad things and got to track it down.

How are you able to do this job now versus then?

Well, I think our job is getting easier because companies are beginning to realize that they cannot afford to ignore the voice of the customer.

Now, if someone goes there and leaves a one-star review, you better go and answer it.

Don't wait for the phone to ring, because it's doing damage out there already.

And so I believe that this idea of putting everything together in your contact center, along with marketing, along with sales, and along with getting insights on 1 platform is a game changer.

Do you think people are beginning to realize that these companies that really does matter that a 1 star review can crush them?

They no longer believe what you are saying.

Someone goes and checks out, and someone else is saying it sucks on snow.

I mean, out of nowhere, this thing has got, you know, it's got millions of people and people are probably doing some damage to some of the companies that you follow.

Are you getting ready to work on threads?

The good news is we are truly omnichannel.

So as soon as the APIs become available, in 2 weeks, every part of Springfield from customer service to marketing to advertising and engagement is gonna start working on threads.

There's 100 billion people that signed up and it's great news for companies like us because we make it like we make it easy for a business to get started on whatever is coming next.

Now I always look to see who speaks for companies when you have these analyst days and I am sure you were thrilled It was Google that came.

I can't think of any more reverential team that you want to be with.

Well, they said that artificial intelligence is very big for them, as you all know.

Engaging with customers, making them happy, getting insights, very important for them.

And we've had a great partnership for many, many years.

We are blessed to have some of the biggest brands as customers.

have Netflix, you have Amazon, Microsoft.

All 10 of the top 10 brands in the world.

Now, I want to ask you about 1 that I think is, I think has excellent customer service, and that's Lululemon.

They are constantly being rated everywhere, and they do have a higher price point so they had better have a premium product.

We do digital social engagement and service.

That's typically where we start with a brand.

And so customer companies brands who are customer obsessed we're the first ones to jump on Sprinklr.

And so, Lululemon was an early customer, and their obsession with making customers happy is why they can afford to sell higher.

Studies, analysts have said that if you obsess about your customer and customer service and experience, there's a

better chance that customers are going to stick with you, regardless of how good your product is.

Now, but you must be working with top flight people within these companies.

You can't do it alone, and they can't do it alone.

I like to think we are co-innovating and co-inventing this idea, this category that we call Unified Customer experience management.

Logically, CRM as an industry is about 30 years old.

And that's what we're trying to invent to get.

Now, when I look at a company, I'm going to give you 1.

I bought some stuff and this is a very fine cut.

And my daughter and I, I think we stopped talking to each other for at least 4 years because I bought something at IKEA and I broke it.

I mean, what do you do for the real tough ones where it's just a do it yourself and people make mistakes themselves and it's not the company's fault, but you have to still answer.

And what we do is instead of thinking of this isolated as when you call customer service, you start thinking about understanding what is broken by listening to customers.

So you find out that number 1 complaint that you get is people are not able to follow instructions.

Now, the thing is we help them understand that's your number 1 complaint, so they can maybe make the instruction booklet easier.

Maybe they can do video customer service.

So start by listening, then push information to the customer in a self-service way.

You just make it available inside the product.

In some cases, you want to push that support onto the device, so you don't have to even call.

Well I spied you 8 years ago with just a twinkle in the eye and you guys have done a great job.

You should be very proud on your analyst day right

Okay that's Raji Thomas, founder and CEO of Sprinklr and it's CXM which is customer experience.

That's their symbol and that's what they are and they have money back into them.

Coming up when DC moves which companies grew winners from the inflation reduction act next.

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After a surprisingly low inflation reading this morning, we truly have no idea where this economy is headed.

Maybe the Fed has 1 less reason to raise interest rates, but maybe they want to crush inflation so thoroughly that it won't come back for decades.

I hope, but rather than trying to bet on the Fed's next move, you know what I'd rather gamble on a sure thing.

That's why all week I've been highlighting the companies that benefit from the Biden administration spending spree over the last couple of years.

Huge federal programs that are finally starting to kick in.

Finally, OK, could be with us for a decade.

That's a lot of money, and at least for next year, it's guaranteed.

I'll be at inflationary as I said at the top of the show.

Now we've already been over the infrastructure bill and the Chips and Science Act.

So tonight let's tackle the huge spending bill called the Inflation Reduction Act, the IRA.

Not to be confused with the organization of the same name, although I'm sure Jerry Adams got a kick out of that 1.

I bridled it to title the act because it's got nothing to do with reducing inflation.

But looking back, I got to admit, it was brilliant marketing because now the White House can take credit for the big decline in inflation down to 3% as of last month, even though the IRA had absolutely nothing to do with it.

In reality, the IRA contains some huge climate change investments.

It extends federal subsidies for Obamacare.

It allows Medicare to negotiate lower drug prices.

I'm gonna do a lot more on that because it's really big.

And It reforms several elements of the tax code to raise a little revenue, including a new corporate minimum tax for large companies and a 1% tax on stock buybacks.

Some of this is being challenged in courts.

Some of it's being rolled back by the debt ceiling deal.

But for the most part, the huge spending components, they aren't going anywhere.

Tonight, I only want to focus on the biggest chunk of this bill, the $369 billion for climate and energy security initiatives, because it's what contains the most obvious stock ideas.

And believe me, I know they were talked about initially, but people have forgotten about them and they didn't think it was really going to happen.

The money is going to be in hand just when people have forgotten about all these great stocks.

For example, the IRA extended consumer tax credits for rooftop solar panels, electric vehicles and energy savings, home improvements like heat bumps, Big big money.

Solar is tricky because these stocks tend to trade with the fossil fuel complex their competition, and they're also tied to interest rates because when the Fed tightens it becomes more expensive for consumers to get the financing they need to install rooftop solar panels.

People forgot that and got crushed in some of these stocks.

Now given the tough environment, I recommend sticking with the best of breed.

It's up 30% for the year despite the weakness in the group because it's 1 of the only solar panel makers that's actually profitable.

Now if you're willing to take some risk, and I'm going to tell you, this 1 is as risky as they get.

Mainly makes inverters, fantastic pieces of equipment, crucial pieces that transform energy captured by solar panels into usable electricity.

But that said, the stock's been terrible lately.

It's down 31% for the year, the opposite of first solar.

Now, you got my blessing to buy in facing the weakness because it is a key cog in the solar machine, and I expect the stock to ultimately recover along with the rest of the industry.

Plus, it's currently the cheapest it's been since 2020.

But as I said, it's not working because of the financing component.

It's gotten so much more difficult because of higher rates.

It's still a very good business, but people understand that oil goes down.

OK, the big problem with solar is well it only works when the sun's out.

Hey, by the way, the Germans discovered that it's only sunny like 27% of the time in Germany.

Big mistake for them, But this is energy storage goes hand in hand in our country.

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DocuSign CEO, Sprinklr CEO & IRA Winners 7/12/23