President Trump lambastes Twitter, Google and other technology giants for what he claims as their efforts to stifle him.US Economyread more
JP Morgan's Jamie Dimon says student lending "is a disgrace and it's hurting America."Economyread more
Mnuchin tells CNBC he's confident President Trump and China's Xi Jinping can make progress in stalled trade talks.World Economyread more
Underneath the impressive market rally is a trend that doesn't seem quite right, according to J.P. Morgan.Marketsread more
The president raised $6 million alone at a fundraiser he attended at the Trump International Hotel on Tuesday in Washington.Politicsread more
The first debates will give most of the contenders their biggest platform yet to present themselves to the American people.Politicsread more
The stock market is shrinking for several key reasons, but there's a way for investors to maneuver it, says Citi Research strategist Robert Buckland.Trading Nationread more
That's the problem Boeing employees at the company's Renton, Wa. factory are dealing with as the aircraft manufacturer tries to figure out where to put 100 grounded 737 Max...Airlinesread more
The Supreme Court refused to overturn a precedent that strengthened the power of government regulators in a closely watched case that could have had broad ramifications for...Politicsread more
Apple made Comcast and Charter agree to sell iPads, Apple TVs and other lower-volume devices as part of the cable companies' deal to offer the iPhone on their mobile service.Technologyread more
President Trump says "I hope we don't" have a war with Iran but it "would not last very long."Politicsread more
Jim Cramer is scratching his head and wondering—what the heck happened to Paychex?
This company is the second largest payroll processor in the United States, with a specialization in small- to mid-sized businesses. So, one would think that if employment in the U.S. gains, Paychex would be, too.
However, the company reported on Wednesday, and the stock was slammed, down 4 percent by the end of the day. Cramer suspects that some of the drop can be attributed to the fact that it ran up a bit into the quarter.
It reported in-line earnings and higher than expected revenues, but there were a few numbers that investors found disappointing.
Paychex's core payroll revenue growth was below the low end of its full-year guidance range, and its checks per client increased by less than 1 percent for the quarter. Additionally, management described its growth going forward as "moderate"—not a great sign, Cramer said.
"At this point a bet on Paychex is a bet on higher interest rates," said the "Mad Money" host.
This is because Paychex collects interest on wages from the time that it cuts a paycheck to the time that it is cashed.
Could the looming threat of interest rates and tax reform impact Paychex' growth this year? To find out, Cramer spoke with Paychex CEO Martin Mucci.
"I think that small businesses may have led the way a little bit in the job growth. We were stronger a bit last year; it's moderated some. I still think it is positive," Mucci said.
The CEO clarified that he thinks growth could have been impacted by some clients who chose to leave Paychex to try a cheaper or more automated solution that features automated software as a service platform, known as SaaS.
"I think what people are seeing are that they are trying someone else maybe in the short term, but what they're not getting is the service and the full breadth of the products that we offer," he said.
Mucci added that the company saw strong job additions in the U.S. in the beginning of the year that have now slowed down, as small businesses have become more cautious due to the Affordable Care Act and tax reforms.
"I think what you're seeing is more like if I have a couple of pizza places, I may not open that next one. I may just be careful to expand a little bit," Mucci said.
Read more from Mad Money with Jim Cramer
Cramer Remix: Can Twitter keep climbing?
Cramer: The stocks that could trigger a rally
Cramer: Airline tech in focus after tragedy
This would also explain why Paychex statistics indicate an increase in part-time employment, as tax reform and the Affordable Care Act will cost them money. However he has not seen that the new regulations have prevented any small businesses from opening, only that it has created an environment of caution.
"The moderation is really in the check-growth, that's checks per payroll. That has slowed down, so the hiring of the existing clients tended to moderate and not grow as fast. I think it grew faster early and then started to moderate out," he said.