Transcripts For CNBC Mad Money 20240622

Then hold on to our Massive Gains today . Howdy the dow end uproaring 619 points, s p pulled more than 3. 9 , largest gain since 2011, and nasdaq rocket 4. 25 . Where were all those sellers . Where did they go . Did they fin Senate Judiciary committee had they left the building for good . For starters lets speak to the whole random nature whats going on in this stock market these days. Of course were trading in lock step with the s p futures at the open. They rallied hard from the getgo today. After falling some 10 for the year, then they tipped big time in the middle of the day. Oh, it looks scary. Then they powered right back up. And then some at the close. Hows that possible . Ive even got some substantive things happening that are pretty positive but maybe more important some ethereal, mechanical, and purely emotional factors that could be at work here. First, in this environment, we always got to turn to china, right . Thats the primary reason for our stock markets action. While the Chinese Market dropped more than 1 last night, i continue to believe it should be avoided. But i think that the chinese decision to boost liquidity, create more money basically is being beginning to be regarded as a true positive. We know the thoochinese governm has been selling some of their vast treasury hoards. That money can be put to better use jumpstarting a flagging economy rather than propping up stocks like the ones out of nasdaq 2000. Why buy penny stocks when you can buy plant and equipment or fix infrastructure, get some economic momentum going . The communist party might finally be getting its about together after disastrous experience with plunge protection. Second, while oil didnt go up today, remember, we actually want to see a little bit of that, its been down for weeks and thats worrisome. The Smartest Company in the oil patch, schlumberger, which also happens to be the largest Oil Service Firm in the world in a total stun ner buy, buy, buy cameron, creating a seamless offering for all those who do drilling. Why does this matter . Because schlumberger wouldnt be paying a huge 56 premium for cameron if it believed that the industry was going away or that oil was going to plummet that far from here. Slum berg erg has to do theyre a longterm company. They have the cash to buy back all the stock if they wanted to if it was bullish on itself. But it would rather buy another competitive that would make it more competitive against halliburton that may or may not be approved by the feds. Is schlumberger calling a bottom with oil at 38 down from 91 12 months ago . I think not. But it knows were much closer to a bottom than most people think and cant afford to wait for another company to snap cameron up. Its a bullish move. Even though crude didnt do well, it put a bid under every energy stock, even though oil went down. We havent had that divergence in a very long time. Third, we finally got some constructive comments from someone who matters at the fed. Bill dudley, the president of the Federal Reserve bank in new york, acknowledged that International Events make the case for a rate hike and less compelling to me than it was a a few minutes ago. We live in fed utterance to fed utterance. This is the third one weve had in four days. Its almost the most dovish because dudley is clearly cognizant of the damage that a rate hike might cause to far more fragile economies and currencies overseas, even more to our own economy. A declining stock market can crimp consumer spending. Lets hope those other two fed talkers, the hawks, the guys who really crushed friday and monday, dont use this day against us, right, dont use this rally to come out tomorrow and say happy days are here again, although frankly i wouldnt put it past them. I bet one of them does it, grabs the mike. Fourth, we got some leadership attack and the financials. Those are the two largest groups in the s p. Interest rates rose today, typically a bad sign. But if the fed isnt going to raise shortterm rates, banks will be able to make more money off your deposits practically risk free and thats whats needed to boost their profitability. Higher longterm rates coupled with lower short rates courtesy of no fed tightening, thats nirvana for americanback banks, and their stocks reacted accordingly. I found it hard to look at some of them they were to so bad. They traded like bad tech stocks lately. Tech. Tech was the real standout. First, despite the withering blast of selling this market has endured, facebook, amazon, netflix and google, are fang, as i call them for short, and just have fun with that. Im not recommending fang per just trying to get you the metaphor, the zeitgeist, so to speak. Fang fared well yesterday despite the selloff. Facebook, Amazon Holding on to a smidgen of their gains. Today an analyst from Goldman Sachs upgraded good l from hold to condition buy, talking about a multiyear case for Revenue Growth and expanding margins. Google has been in a downtrend after a huge move up because of its reorganization of two companies, one high growth, high profit machine, the other basically a big Venture Capital firm with hopes of hitting pay dirt someday. The stock soared 47 in response to this timely upgrade. How much better is it when someone does an upgrade when the stock is all the way down and all those johnnycomelatlies have recommended it all the way up . The google move plus the continual recognition of comments from apple that theyre doing well in china despite the stock market crash suggested tech might not be as bad as people think. Plus after the close we got a closeout quarter from avago. Thats good news for skyworks, for corvo, and nxpi for tomorrows session. Workday delivered a nice upside session too which could boost salesforce. Com and other companies which reported a fabulous quarter in bad old days of last week. Finally, we saw a phenomenon at the closing bell yesterday we havent seen since the Great Recession, aside from the 2011 european Collateral Damage selloff. Ahys, remember those . Accidentally high yielders, talking about stocks that have fall son far so, fast their Safe Dividends suddenly give you huge yield. Verizon clocked in at more than 5 at the bell, eaton, ge, and p rocter gamble each yielded about 4 . Those are opportunities too good to pass up when tenyear treasuries are yielding just 2 . As i always like to say, the worst that happens in this kind of market is those stocks go down and get even better yields. Thats the essence of good investing. Now to the technicals, which you may think are mumbo jumbo, but on a given day, they can control the action. First, as hideous as yesterdays 600 dow point reversal was, we actually did not take out our previous lows from mondays tsunami of selling. Thats right. We didnt violate it, so to speak. Thats the term. Thats a Bullish Development for charters of all stripes, one that tells short sellers its time to bring in some of those bets. You saw that at the opening. Second, the Standard Poors proprietary oscillator measures overbought and sold markets registered a minus 7. 9. Anything south of minus 5 is an extremely oversold reading. Only one other time in the last four years weve had an oversold market. Back in 2011, when we rallied as hard as we did today, it didnt mark an exact bottom back then, it indicated we were due for a bounce like we had. Finally, i like the Investors Intelligence poll. We had only 31 bulls this morning down from 37 bulls just last week, along with 22 bears and an astounding 45 believing well have a correction. I think its too late to turn that bearish. But this kind of uptick in negativity is what allows us to have a magnificent rally, like today, because everyone whos going to sell has already dumped everything, at least for the moment. Then there are some other positive timing issues we have to mention, although the dow opened up some 400 points this morning, we shed 300 by early afternoon but held. Those who were patient waiting to get in, which recommend, you got reasonable prices. Thats what you want. Then you watch the stocks come back with a vengeance. Thats good. Yesterday, on the other hand, we peaked right before the time when clerks started to execute margin calls. Clearly some speculators had their positions cloetzed out by force. Today we did that before the Witching Hour and the forced selling seems to be over for now. The buyers were ready for whatever lastminute selling that might emerge. The bottom line, some constructive comments from the fed and positives from china and tech and finance coupled with some important technical dynamics along with the fact that stocks are now very inexpensive for the fist time in ages produced a monster oneday bull market and broke the vice grip of negativity that it choked almost all hope out of this market. Tomorrow, sadly, is another day. Ryan in wisconsin, ryan caller hey, jim. Big booyah from packer nation up here. My question for you is about blackstone. I got in around 30 a share really. 8 dividend yield that goes along with it right now. Wanted to get your take on whether you think this is a good time to add to this position definitely. Dont be worried. Blackstone is good. I like kkr too. Sorry about jordy. He got me in the super bowl two years. He is a great man. I hope you feel better. Greg in new york, greg. Caller whats going on, jim . Good bumping into you on wall street the other week. Good meeting you in person after i called in for the fist time. I was friendly, right . I was like a transparent and friendly guy, right . Caller oh, youre really down to earth. That was awesome taking your picture with me and my buddy. A quick question about solar city. When are they heading in the macro picture in the next five years . Are they a buy, buy, buy . I dont want to do buy, buy, buy. There could be a better mouse trap that give dwrous fs you th for panels. Thats not the kind of stock you want to buy here. If you want some of the things doing a good job, solar, sflr but im wary of that whole segment. Theres plenty of randomness in stocks right now, but that doesnt mean we forget about our substantial positives, and theyre why we held onto todays gains. Tonight, its been a wild, wild ride on the averages and a flow of newly minted Public Companies has now slowed to a trickle. So is the ipo window slammed shut . Ill give you my take on the latest Companies Going public. Ive called housing one of the top investing themes of 2015, but did the latest quarter from Toll Brothers bust the thesis . Ill tell you if its time to pull the mug on home builders. Is denim dead . Not quite. Im talking to pbhs ceo after earnings get the goods. Plus the Kendall Jenner effect. Stick with cramer. The markets holding on to gains after the biggest selloff in recent history. But who knows what could come next . Cramers following all the action and helping you understand how all of its moves matter to your money. His final take before tomorrows trade coming up on last minute mad. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer. Madtweets. Send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc. Miss something in . Head to madmoney. Cnbc. Com. We tried to figure out if this rebound is for real and you always feel like it is but sometimes it fools you. Not to mention with the reaction when you have a real bottom. There are a lot of other factors that influence the action and one of them that weve been neglecting of late and i dont like that is the ipo market. When you see a lot of companies coming public, especially say lower quality companies, thats a very bad sign for the averages overall because it means the stock market is getting flooded with new supply, and like any market, when supply exceeds demand, you get lower prices. However, when the supply of new deals dries up, thats a sign we might be nearing a real bottom. In june, we had an astounding 35 Different Companies come public. It was ridiculous. Thats nearly two ipos for each trading day, a very worrisome sign and coincided with a peak in the market. The good news is the pace of the deals has sloed, even as much as the new merchandise is pretty much, lets say, tepid. In july we had 17 ipos, still a lot, far fewer than june and so far in august, ten deals. A much more reasonable number. We want to see no new ipos, at least for the moment. Fortunately, there hasnt been a single deal as the markets plummeted in the last week and a half and there are none scheduled for the next week and a half either. That gives me hope the bottom might be close at handle, although a lot of stocks bottomed today, although certainly bad news for all those billiondollar unicorns you hear about, the still private companies with i think huge overvaluations that are praying to be able to come public at absurd levels. But even as the flow of initial Public Offerings has slowed to less than a trickle, the quality of these newly minted Public Companies varies wildly, and thats why tonight i want to walk you through four recent ipos youve asked me about that i think give you a good sense of the kind of companies weve been getting in the Public Markets lately. Amplify, Planet Fitness, teledoc, ollies par gain outlet, a place i havent shopped yet but i want to get to because i havent been there. First, amplify, the maker of skinny pop. When amplify came public the market didnt like the stock one bit. The ipo priced at 18 august 5th, nearly traded down 10 , 60 bucks and change, and in the three weeks since then only gotten worse, plunged to 12. 65 as of today. Some of thats because amplify is view as having only one serious line of product, skinny pop, and one flavor of that brand makes up 87 of the companys sales. Thats concentrated. Earlier this year, the Company Acquired paqui, which makes a line of tortilla chips. They hope to build a strong presence in the chip category. That makes sense. When you go to a convenience store, the bags of chips are next to the bags of popcorn. While amplify is rapid sales growth, that number represents a deceleration from the First Quarter of 2014, although a smaller company. They had a 212 back then. What makes me shy away from this one and a big reason why the ipo perform sod poorly is amplifys earnings have been shrinking in recent quarters and the company has an ugly Balance Sheet with 239 million in debt. They really dolloped it on it. To make matters worse, my back of the envelope amplifies trading around 44 times this years earnings estimates. This feels to me like a snack food fad to some degree. I would rather run a highquality food company. How about a General Mills . Pepsico. Next up on august 6th, an Interesting Company that created a big stir on the floor of the exchange when it happened, Planet Fitness became public at 16 bucks a share and did nothing on its first day of trade. Its pulled back to 15. 90, below the ipo price. Another lower quality deal. Its one of the largest and Fastest Growing operators of franchises of Fitness Center es in the u. S. , more than 7. 1 million members, over 1,000 location, and we know the fitness theme is very much live and well in the country. Plus theyve got accelerating Revenue Growth and its quite profitable. But planet fotne nesfitness is public, taken public by a private equity firm and they still own the bulk of common stock and control more than 65 of the voting power. In other words, Planet Fitness is not account to believe a wide base of shareholders. Its only accountable to tsg. Thats why nearly a third of the proceeds of the ipo went to purchase more shares from tsg. Like many private equitysponsored ipos, 500 million in debt on a health care company. Plus on a Fitness Center. If we extrapolate from earnings per share in the First Quarter, its selling roughly 42 times this years earnings estimate, way too expensive for a Fitness Center chain and a big premium to competitor lifetime fitness, which we did like, was taken private not that long ago. Maybe join it, but i wouldnt own it. Now compare these two august ipos to the kind of companies that were coming public the month before. Start with the best of them. July 1st, teledoc ipod at 19 a share, up to 28. 50 the first day of trading, 50 move. Although its give. Some back, didnt give it all up. Teledoc is a company with active disruptive technology. The countrys first provider of Online Health care services. It cost dlrs 40 for each consultation with wait times less than 10 minutes. Management estimates a third of all doctor visits could be handled like this over the web, revolutionizing the health care industry. There are some competitors. This is a rapidly growing trend. Its both the largest operator in the industry and the only publicly traded pure play. Teledoc is not yet profitable because of all the money its spending in order to expand, its still growing like a weed. 78 Revenue Growth in the second quarter, 104 increase in telehealthbased doctor visits, 48 increase in their user base. After the recent selloff, kind of interesting, down to 25 and change. I think teledoc is worth buying it for speculation, but dont buy it all at once. Finally, how about this ollis bargain outlet . A lot of you like because i get a lot of questions on it. It sells brand name housewares, food, books, bed and bath products, toys, hardware, at huge discounts, talking about 70 less than department stores, 20 to 50 less than mass merchants. You know im a big believer in deep discounters and its not surprising to me after coming public at 16 on july 15th, ollis rallied 32 , big, on its first day of trading back then. But after rallying up to nearly 23 , the stock has since pulled back to 16 and change. Its been dragged down along with the rest of the market. I like this concept. I like growth stories. Ollis has 187 stores. Management expects they can go to 950 locations. Still small, relatively untested retailer. Ollis is another private equity ipo writ its sponsor still owns 59 of the company. Not ideal. Valuations not great, 25 times earnings. That may be a bargain considering the growth rate. In this environment where Growth Stocks have been hammered, i feel more comfortable owning a more established discounter like tgx or the dollar stores. Heres the bottom line. You want to stay away from the most recent ipos like amplify snack foods or Planet Fitness, and of the deals from july i like this teledoc on the weakness and am warming up to ollis outlet. But after the decline in securities, lets say the comparison is a little too difficult for these newly Public Companies to be as compelling as they might have been versus triedandtrue but totally obliterated veterans in the same category. Much more mad money ahead including my approach to the housing sector. Is it built to last or Shaky Foundation and for the last quarter from Toll Brothers and what some think might be a peak quarter for best buy . The answer might surprise you. Then great news if your dog ate your homework. I did it for you and it could make you some money. Is pb hshgs still in fashion or should you shop for a better deal . I have the earnings exclusive and some interesting news about a particular tie and shirt collection. Exclusive to the cpo. Stay with cramer. Tonight, theyll always say they have the next big idea. Lets go skating on life. 3d cake decorator. Only investors can bring them to life. Wed be seeking an investment of 578,000. Theres the real world and then theres the world of the stock market. And you need to know that they can diverge pretty radically for a short period of time simply because of raw emotions, particularly fear. Take housing. One of the great underlying trends of this market is the rising price of a home and the burgeoning desire to invest in your house in order to improve it. As i always say, housing punches above its weight, meaning while its only about 10 of the u. S. Economy, it has ripple effects all over the place, including retail, home depot, banking, any large banks that do mortgages, real estate sales, servicing, title insurance, document processing. When youre dealing with a market thats still treacherous during chinese week, even after todays rebound, you need to search for bullish groups to take advantage of the funds out of suspect areas into positive ones. Portfolio manager runs billions of dollars. Looking at the world, most likely to underweight or a fewer stocks with minerals or International Resources or international trade, then overweight stocks were close to home with less chinese exposure, specifically housing. Why . Because we know that household formation in this country after being well below normal for years on account of the Great Recession, has picked up nicely. Theres a secular growth trend that can stay in place for a long time, a tailwind. Accelerating house formation is difficult to reverse once it gets started. Also because of the Great Recession we know there had been a dramatic decline in the number of Housing Starts to levels not seen at any time in the last 50 years, a pace we were building only about 500,000 new homes down from 2. 1 million homes in 2005. What a nosedive. This year, though, our countrys on pace for 1. 2 million Housing Starts which is the historic norm of 1. 5 million and 1. 6 million according to bob toll, executive chairman of Toll Brothers who gave us that statistic on his conference call. Back to the real world np last couple days weve heard from two companies in the thick of the housing thesis, best buy and Toll Brothers. While some found tolls less than expected, best buy performed well. More important, though, best buys commentary about overall howing and housingrelated demand was stunning. Heres a typical growth from that great conference call. Our first observation is that overall consumer demand for Technology Products and services includinging appliances and mobile phones is growing. The ceo goes on to say its being driven by big themes like, and i quote, population growth, the housing recovery, Healthy Living trend that are driving momentum in our appliance, home theater, connected home, and Health Wearables businesses, which we believe will remain positive catalysts in quarters to come, end quote. Doug yearly, ceo of toll, echoed that analysis, saying on his call quote, the housing recovery appears to be built on a very solid foundation. We believe that the slow but steady acceleration we in the industry are experiencing bodes well for the longterm health of the Housing Market based on ins creasing household formations, pentup demand and the current industrywide production that is still well above historic norms. Bob toll said, an improving employment landscape, three consecutive quarters of household formations, pentup demand, increasing rents and still attractive affordability are supporting the forsale markets steady recovery. As the job picture continues to improve, greater demand should lead to rising home prices, which we believe should encourage more people to sell their existing homes and move up or add a second home. He went on to say based on these and other factors we believe the Housing Market remains on an upward trend has considerable room to grow. These three execs are all seasoned professionals who lived through the housing downturn. Not one was known as a bolter in the bad days. They were all realists. The bottom line, despite the slam the stock today yesterday, Toll Brothers and best buy had reaffirmed to me this housing theme remains the best place to be even with a rate hike. The forces are in place for a multiyear move that will not be derailed by a quarter point despite what the stock market is saying. Housing is terrific to buy on weakness and weakness still feels like a pretty regular occurrence in this market. Sandy in michigan. Caller booyah. Booyah. Caller wanted your opinion on whirlpool. Its taken quite a hit since the downturn and i know it has an affiliation with the asian market. Would bit a good stock to own giving the housing seems to be on the up . I got to tell you, sandy, whirlpool made a remarkable reversal. It is right in the sweet spot of what im talking about. Appliances are selling very well. Yes, they have exposure and never got out, but whirlpool is now down 40 points. Its in the sweet spot of what best buy is doing and Toll Brothers is doing and i say buy, buy, buy peter in my home state of new jersey. Caller south jersey booyah to you, jim. Eagles booyah back at you. Caller i want your opinion on esnt. I took the position in it a couple months ago, it hit a 52week high on july 16th and now its down like everything else. Im about 2 down in it. Yeah, but its the right spot for this housing mace. Youre in good shape with that. I like that one. Its a Collateral Damage stocks that shouldnt be down. I think you got horse sense. The real world says that housing is still the place to be. Dont let the impact of tolls quarter change that. Get in the sector on weakness. Its going to work for you. Im not giving up on it. Much more mad ahead. School is back in session. Im interested in the homework thats been building up. And this companys home to some of fashions biggest brands. Could its global reach impact its bottom line . I have the exclusive pvhs ceo. And the lightning round is just ahead so stake with cramer. You watch every day, right . I could chastise people for not starting their day right here. One of the few people that actually worked out in the senate gym. Everybody else was there to watch morning joe. Understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. The backtoschool season right around the corner, its time to catch up on our homework pause this is the most interactive show on. That means when i dont know your answers to questions about a stock, a i research and analyze a companys prospects an get back to you so you have what you need to make better and more informed investment decisions. Back on july 21st, adriano called about mptn. I said i need to do research. Its a tiny developer of fiberoptic components. It had been a dog for ages, public in 2011, spent first year trading half its ipo price. But it peaked at 11 in midjune when it was up an astounding 230 year to date. Since then, its sold off dramatically, down almost 40 from the june highs to around 7 a share. Even at these levels, i think its too hot to handle, especially reporting a disappointing quart thermo. Plus theyre highly levered to, oh, boy, here we go, even after todays rally the house of pain. China, which accounts for more than half its sales. Its the chinese weakness everybody is still afraid of even after today. You know what i have to tell you, i want you to stay away from it. Next up on all this, grant in california asked about luxoft holdings. I said i have to do some digging. This one is a highend Technology Service provider that helps clients create Custom Software programs including everything from trading is systems for financial if i weres to embedded software for a connected car. Big play on connected devices in the internet of things. Remind me a lot of the avago that reported tonight a very good quarter in terms of its placement in the internet of things. A lot has happened since grant calls. Luxoft popped the next day. But like many growthoriented tech stocks its been slammed in the recent downturn and below where it was. Give than luxoft is trading at 19 times earnings in line with its years like accenture and cog any zanlt, even with a faster growth rate, you can argue its cheaper at these levels. I think it is. Use the next market selloff, there will be one, to buy it on weakness. It looks really attractive. When i finished the research i said i have to do a whole piece on that luxoft. Mike in my home state asked me about shopify, one of the years hottest ipos when it became public in may. It just reported a Strong Quarter but i wanted to do more work on it. This this company is a fullservice ecommerce platform for small, medium sized businesses. They help clients build a frontedge platform and provide them with greater visibility into their ecommerce performance on a realtime process with backend analytics and canned reports. I thought this was astounding, currently more than 175,000 retailers use spop shopify. And they also have a number of valueadded services, integration with accounting systems, promotional systems, facebook campaigns and linking its clients to the Biggest Online markets like amazon. They shocked the lights out of it. Fabulous revenue guidance and a smaller than expected earnings loss, which suggests they might become profitable sooner than people expected. Traded north of 40 right up to the quarter. Since then, shopify, like so many others, lost a third of its value because of these highflying unprofitable Growth Stocks have been the hardest hit names in the down nurn the last few weeks. With it at 28 and change, youre getting a gift. But no guarantee you wont get a Better Bargain if we get turmoil returning tomorrow, especially true since the lockup on the inside expires in november. Im torn on shopify. In a different monument, id be telling you to buy but in this environment you have to tread carefully. If youre thinking of investing, only buy the stock into weakness and please, i beg you, leg into this one very slowly on the way down so that you have more money to put to work in case the big, bad bear returns, slamming the thing. While todays market shined, i have to tell you, for shopify, i think theres always going to be a selloff round in the quarter. Keep the questions coming, america. I love doing the research, and stick with cramer. I asked my dentist if an electric toothbrush was going to clean better than a manual. He said sure. But dont get just any one. Get one inspired by dentists. With a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque, and rotates to sweep it away. And oralb delivers a clinically proven superior clean vs. Sonicare diamond clean. My mouth feels super clean. Oralb. Know youre getting a superior clean. Im never going back to a manual brush. Whoa, today was a welcome breather to the last six Straight Days of selling. But as the 619point jump worth feeling confident in or does additional weakness lurk around the corner . Answers to this and much more coming up in tonights special, here i am, markets in turmoil, 7 00 p. M. , this time with kelly evans and david faber. Youre not going to miss this, are you . And now, now it is time, it is time for the lightning round buy, buy, buy, sell, sell, sell [ mumbling ] and then the lightning round is over. Are you ready . Im going to start with nick in tennessee. Nick . Caller jim cramer, how are you . How are you . Caller great. Fisv. I love those kind of Financial Services providers, they do quite well in this environment. Im going to say buy, buy, buy tony in indiana, tony . Hello there, big jim. Transocean, jump or buy . All right. Bruce caymans use technical work, i follow real money. He may be looking at a bottom, i say if we are, go buy schlumberger, merging with cameron. Thats going you have to some arbitrage pressure. Lets go to bob in florida, bob. Caller jim, lets start with an accent on the second sylla e syllable. Booyah. Booyah. And im calling about united rentals. Thats a tough one. Dispinted a lot of people. Now it is a big Construction Equipment rental company and i know its a good company. Heres my problem. In the end, that is not where the strength in the market is so im going to have to say you can do it for a trade but im not going to bless it for investment. Lets go to ted in new jersey. Ted . Caller suntrust, buy, sell, or hold. I saw an upgrade and i was thinking that stock is all the way back to where it was a year ago, but you have to wait again, cant come in at this price. John in tennessee, john . Caller hey, jim. Enjoy your show, man. Thank you. Caller i got an emotional attachment to the stock, wood for about 25 years. Honeywell. I get frozen i wasnt able to talk about it, buy it for my childhood trust. Would have loved to have been able to get more, now up too much. But its still down from say the mid100s. I think youre in great shape. Maybe get another chance to buy it when some fed guy says the wrong thing. How about gene in arizona. Gene. Caller hi. Thank you. Im a recent new viewer. My wife and i are both watching your show the last couple weeks. I appreciate your guidance. Im 77yearold senior and a veteran and my mad money is somewhat limited but my question is simple. I recently bought agnc and found out they have a preferred. What do you think about it . Sir, i know that yield at 12 looks compelling. Thank you forrer is syringe. But it is a risky stock. Believe it or not, that is a yield that is to me unsafe. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by td ameritrade. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. Today we gotta stark reminder even in a treacherous and volatile market, albeit one that bounced nicely today, there are always going to be sectors that are doing very well. Take express and after the close we heard some pretty darn positive things from pvh, the global powerhouse with calvin klein, Tommy Hilfiger, you know them all. Yet pvh just reported while the companys sales came in a little light, that was the strong dollar talking a again. Took the bite out of the overseas business. They delivered a nice eightcent earnings. Plus pvh is very big in europe where their Tommy Hilfiger brand is having a huge, huge quarter, 9 increase in samestore european sales. They raised its fullyear Earnings Guidance making bullish comments about the future. Lets check in with the chairman and ceo of pvh, welcome back to mad money. Good to see you. Good to see you. Backtoschool season looking a little better than people think. Second quarter was really strong. You hit some of the high points but internationally in particular, and as were getting into the second quarter, internationally the business continues, both calvin and tommy very strong. Okay. How much of that is completed . More integration for calvin. And how much is it you got the right stuff and the whole continent is turning . Calvin klein jeans and underwear business drove business. The underwear business is completely on fire, both mens and womens, and were seeing a strong turnaround in denim all around our new calvin klein product initiative, a lot of our marketing that were focused on. So were getting the benefits of that. Lets about ask about all my marketing. Kendall jenner, 35 million instagram. Shes leading the charge for our Fall Campaign on Calvin Klein Jeans and underwear. Its gotten us connected with a younger consumer. As you said, 35 million social media followers. That follows our Justin Bieber campaign, and he has twice as many. Really i think the brand is really connecting with the millennium customer where were really making a connection with a younger customer. Does that mean that facebooks working for you . With can we look at it like that . I think its great. I think the challenge in that whole environment is connecting with the consumer and then how do you commercialize that . How do you really then turn that consumer around and connect with that consumer either in brickandmortar or online. And thats where weve been making Tremendous Investments online to get ourselves positioned both domestically and internationally with a true powerhouse. Its clearly working. Some language i thought was new in your report, you talk about integrags, but youre talking about strategic, strategic things that you might want to do with your cash. Does that mean youre ready to do another acquisition . Sure, and i think it is. Its true. Its true. And its now almost three years since the completion of the last. Weve paid off over a billion dollars of debt associated with the transaction, so our Balance Sheet is has significantly lightened up, more dollars to shareholders or invest in core businesses. This is important because weve seen 40 moves in your stock when youve made these big acquisitions. Our focus short term, next six to nine months, will be on a continuation of bringing in more businesses related to calvin and tommy. Those are two powerhouse brands, internationally, getting more control particularly on the tommy brand could be nicely accretive to our earnings and at the same time very important from a strategic perspective. China, business hasnt been hurt. No. Look, our comps in china continue to be mid to high single we heard that from apple. It would be disingenuous to say theres a lot of volatility going on in that part of the world. The environment concerns me more than our actual business because your actual Business Results continue to be strong there. But that consumer, you know, were well positioned. Were selling affordable luxury, premium position, were not selling luxury goods, so i think were at a good spot in the market where we continue to post strong gains in china. Okay. Anotherin another era my daughter gave me a trump tie for my birthday. You know, mr. Trump running for president. But he didnt make ties himself. You guys made them. Yes. We were the distributor and licensey between donald trump and macys, and they decided about two or three months ago to end their relationship after about ten years, and we had a great relationship with the trump organization. Donald was not a Good Business partner, donald was a great business partner, great marketer, and really was a tremendous partner for us. So we were disappointed it ended and we wish him luck in his campaign. Does it affect the numbers, though . Too small . Its a niche brand. It was a nice profit. It was selling, right . It had sold for us for a long period of time. But macys made the decision and along with donald to pull back from that business. Any standout retailer . Because i know mr. Ellisson is running this jcpenney. I thought it was an extremely good quarter. Kohls, guys, whos a standout . I think you talked about, you know, two of the best in class brands retailers out there in the United States competing head to head and both seem to be performing well. Weve got a good representation of brands in both of those businesses, and were seeing strong business with both kohls and with jcpenney. Last quarter was a turnaround quarter. You said there would be more ahead. This one certainly the case. The stock way too cheap for what you just reported. Chairman and ceo of pvh, remarkable quarter. When they get it right, it doesnt just happen for one quarter. Stick with cramer. Oh, man, what a day, what a week. Feels like a lifetime. But youre in luck. Right after this, kelly evans, david favor, im going to be there. Were going to cover the wild market from every angle. Avago really good, but williamssonoma was a tad disappointing. You know what, people thinking its a little too expensive right here. I will bring that to you later in the show too. Theres always a bull market somewhere. I promise ill find it for you here. We think she might have been a seal. That explains a few things. Blind spot. There is the bell. Tonight, a cnbc special report, making sense of the markets. How can we collapse into the close of trading on tuesday . And then hold on to our Massive Gains today . From the big rallies. As i read the markets, i think there is a potential temporary all clear for stock. We are now heading back up. To the major sell offs. Markets just dont go up forever. What the volatility means for your long term investments. The economy is still doing well. You say we are entering a bear