And the nasdaq tumbled 1. 05 , you need to understand this is a redistribution its not a bet on the future, its a wager that some earnings estimates are going higher while others just stay the same and judging by the intraday reversal, investors are starting to realize that we may be a little too enthusiastic about stocks in general. Even if some do deserve to be higher because of changes that are going to be made to taxes in this country today truly brought a bifurcation in stocks. The action was 100 about tax reform Domestic Companies get a big cut while more internationallyoriented Companies Like most of tech see much less of a benefit sure they can repatriate capital from overseas at a better rate, but the real benefits here are for the purely domestic players. Its Like Congress has waved the magic and with and every cable company, railroad, retailer, restaurant as well as a smattering of industrials that have great u. S. Exposure and that has radically raised earnings for 2018. Now on days like today its worth remembering what actually moves stocks, the notion that the earnings estimates are either too high and stocks go lower or too low and the stocks go higher for all these domestic groups the estimates are suddenly too low because of the tax change in that sense their stock is higher the market doesnt care how the earnings become better than expected it can because the shares were boosted artificially to shrink the share count as Consumer Package Goods Companies do so often. It can be that International Companies benefit a big swing in currency and when the earnings are translated back they produce a higher number, doesnt matter. Investors are just looking at that final number and seeing it as better than expected so the stock jumps. And now tax reform is doing is same thing for Domestic Companies that pay they fair share of taxes the ultimate rate of these businesses is coming down dramatically we arent sure what the rate will be but it will be a heck of a lot lower when the senate raised the tax bill. I have to tell you, i think its going to be dramatically lower and thats why were getting this move. You may think investors will see right through this and recognize its totally artificial. Business hasnt actually improved, right . Theyre just getting a tax break. But thats not how the stock market works the numbers are all that matters and numbers just got better thanks to this tax cut so when the dust settles, analysts will have to raise their estimates and thats the fuel that sends stocks higher. Maybe that rotation will reverse itself and investors l spot back to the internationally Oriented Companies that in reality are doing better than the retailers and restaurants that everybody is buying but you cant hold your breath because this could take a while we havent even gotten the actual estimate bumps yet from the analysts for the Domestic Companies. I know this is a ridiculous way to judge stocks, Nothing Happened to these companies other than a piece of legislation. It still has one more hurd toll clear but professional Money Managers are constantly trying to asses which companies will have the biggest boost to their earnings right now many tech stocks are selling off because the tax bill wont benefit them that much they were great a week ago theyre still great now. But they havent really gotten much better and theyre a fabulous source of funds for all these domestic stocks. Retailers could now have sharply betterthanexpected numbers and its the rate of improvement here that matters. Now, you can have a double whammypositive and a double whammy negative. So lets take the double whammy positive first look at the stock of home depot. Right now this largely domestic chain of 2200 stores has a tax rate of 36 . In the new world, that rate could fall to perhaps as low as 20 . All that money that flowed to uncle sam now flows back to home depot. What will home depot do with the huge pile of cash . They could buy another company, that hasnt been home depots way. It has been putting up stores. Maybe it can offer a great dividend, it might do that but most important, though, it can buy back stock and shrink the denominator in its earnings per share calculus remember, no one will ask how did they have that gigantic earnings theyll see a substantially betterthanexpected number, thats why the stock has been going up it helps that home depot is soi doing better than expected any way same goes with costco which has reported betterthanexpected number which means theyd be going up without this boost but now its turbo charged. Lets consider the double whammy to the down side last week Morgan Stanley suggested that western digital, the disk drive and flash maker, could miss its estimate. They get 68 of their business from overseas so not only does this company not see such a big jump from the resurging u. S. Consumer, it doesnt benefit from the u. S. Tax rate just as retailers are winwins, many are like western digital, in a relatively loselose. Micron, amd, thats whats happening. Now what you need to look for right here are anomalies for example, the transports are for the most part hitting all time highs because theyre typically big taxpayers. Theyll see major earnings boost but what if the numbers arent there. What if coal traffic slows for the rails or agriculture then youre at risk. I think rails might come down but only after wall street raises earnings estimates based on tax reform to the levels the rails cant make theyve come too far too fast. I find the fundamentals questionable similarly, if theres a Technology Company that can blow away the estimates, think in a short period of time its stock can go higher again but you have to be careful. Heres a couple things happening, vm ware, adobe, sales force, they had amazing numbers but their stocks have been clobbered again and again. Its hard to say its only just starting, right . Were closer to a bottom than a top in tech i think but we have to wait for more weakhanded investors to fold. It may even happen intraday. What fascinates me most is a bank stocks. Heres the group that pace the full weight in taxes even as people generally believe banks are doing better that i know expected so lets take the stocks of Goldman Sachs. Its a few point off its highs but because theres very little volatility in the fixed income currency and commodity business, its possible they may not have the earnings blowoff the action of the sock is forecasting do you want Goldman Sachs even if it doesnt beat number despite the tax cut . How about j. P. Morgan . Sure the government may give them a regulatory break but you need loan growth, rate increases. For now, though, that doesnt matter they arent about to report and will soon get a rate hike from the fed and that will allow us to raise the banks anyway. I dont want any of you to assume that just because corporate taxes are coming down the earnings are whatsomewhat assured. Theyre not. For the most part, many stocks going higher have already reported that makes them less dangerous at t and verizon have very little earnings at the moment. Six weeks from now that could be a different story. Onemore point to consider. On friday at midday we thought the tax bill might fail and we heard from abc news that during the president ialcampaign President Trump directed Michael Flynn to make contact with the russians by the end of the day we learned the abc report was erroneous then on saturday the tax bill passed the senate. We climbed 650 dow points from the moment the abc report came out meaning a tremendous number of investors were out of position today they got back in position but i think the lateday reversal will have everyone spooked tomorrow and we are very overbought which is a cause for consternation and a reason why we could go lower from here. So the bottom line, i dont know how much fuel is left in the rotation unless analysts raise their estimates tomorrow if they dont, i think the money starts flowing back into tech, eventually maybe later this week if they keep falling at this pace. If we do get a bunch of estimates for the domestics and bumps well see more days like today where the bifurcation makes for heaven and purgatory scenario luka in texas, luka . Caller booyah, dr. Cramer, how are you . Good, how about you caller wonderful, thank you. I have a question on lucky martin it has run up a lot. Should i buy more or trade my position i was talking with my team for action alerts for the club ahead of our wednesday Conference Call and i said Lockheed Martin down a couple is a real good idea so i think if it goes down tomorrow you might want to pick some up warren in washington warren caller howdy, jim. Hey, warren caller let me first emphasize the eagles loss last night and i hope you dont hold it against me. Im not that kind of fan. Im a real fan and i wish them the best whats up . Caller like wise jim, im perplexed with twill owe and im hoping you can help me understand why its down in spite of great progress such as growing their revenues 40 consistency, it exceeded guidance in the last two quarters, they have an adjustable market of 54 billion, they signed their first license agreement of eight figures over three years, they just did a deal to perform authentication for microsoft. Right caller i dont know if you know this, theyre the undisputed leaders, so much so thewilio the name has become a verb for developers across the globe. Yes but remember this market is unforgiving and the stock went up a lot. I know and the ceo bought a ton of stocks and im inclined to buy in with you but ever since they got scaled back by uber people keep thinking theres going to be others if there arent others then ive got to tell you warren it will happen but right now people are in abeyance until they see who else is going to drop twilio, i dont think it will be anybody but thats the negative. Bob in new york. Bob . Caller hey, jim, how are you . I am good, how about you . Caller not bad for the better part of the day, the market reacted positively to the tax bill however visa and paypal went in the opposite direction. Im confused if more cash is available to consumers to spend, how is this not a positive to more revenue visa and paypal and you can apply that to technology where businesses will have more cash to spend on pcs, computers and cloud computing. Remember the way the market works. There isnt a lot of new money coming in so if youre going to buy stock and take kroger up or comcast up, these companies, these big investors have to sell something so theyre selling the nasdaq to buy the big cap dow stocks that are more domestic in nature its just a rotation but its more vicious than ive seen in a long time. Remember the notion earnings are either too high or low is what moves the stocks today we saw a redistribution. Its a wager that some earnings estimates are going to go higher and maybe some dont do anything on mad money tonight, two potentially big buys are making headlines. Ill sell you what the cvs aetna and disney fox deal are all about. Then six months ago amazon announced it was acquiring whole foods and almost every name in the grocery space sold off how is the sector faring now im browsing the aisles. And yext just took a beating maybe its a buying opportunity. Im sitting down the ceo to find out. Stick with cramer your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Im here to talk to you about how at t gives you more. And so am i. Like how when you buy the amazing new iphone 8 you get another one on us. See we give you more phones and more spokespeople. Are you guys doing a spokesperson thing right now . Yes. Awesome, can i be in it . Well, its kind of like a twophone deal. So two spokespeople. Got it. K. Thanks. At t its time for more. Its time for more. Buy the amazing iphone 8 at at t and get a second one to gift, on us. We thats why at xfinityic. Weve been working hard to simplify your experiences with us. Now with instant text and email updates youll always be up to date. You can easily add premium channels so you dont miss your favorite show. And with just a single word, find all the answers youre looking for. Because getting what you need should be simple, fast, and easy. Download the xfinity my account app or go online today. When 2in doubt, change the narrative. Thats been the big theme in so many mergers and acquisitions and despite the worries about what 2018 might bring, i bet there will be more change narratives coming because they work they work fast today we have two classic changes of narrative, one from disney, the other from cvs Health Disney is kicking the tires of foxs nonsports nonnews divisions. Cvs is trying to buy aetna to become a one stop shop managed care provider and health care within the store both are defensive deals disney despite incredible numbers from its theme parks and Movie Division cant catch a break. It cant get out from the shrinking subscriber counts from espn there are a lot of ways to get espn but we only seem to count those that come from a cable box. Even the shrewd acquisition of bam tech to give desny what could be the best seamless Sports Experience hasnt mattered it seems like if youre rooted in the old media, the market wont excemept your foray into e new media so disney wants to double down on tv and film while expanding its footprint overseas which is where the real growth is oddly, this is one of those deals where disney should just get it done because like when United Technologies paid up for rockwell collins, there simply arent a lot of Beach Front Properties as utx ceo greg hey said at the time there arent a lot of beach front media properties, either i think disney fox is the same story. Get it before comcast, the Parent Company of this Network Picks it up, or alphabet fox does more to help disneys espn problem than anything the company could do for itself, including buying back more stock. Disney crunched about 100 million shares and if those buys were meant to move the stock higher, well, they havent done the job. Nothings been able to outweigh the espn worries throw in foxs entertainment assets, suddenly i dont think many people will care about espn which is what disney needs thats why the stock flew up 4. 7 today how about cvs . This one is more difficult until a little over three years ago, cvs health was known as cvs care mark. The Company Changed its name when it stopped selling cigarettes as tobacco is antithetical to that whole Health Care Business a lot of good that did stocks only up modestly since then again, like disney, its a company perceived as being left in the dust by others, this time amazon by acquiring aetna for cash and stock by the way that stock could put more pressure cvs become astrue Health Care Business with a brick and mortar kicker in one fell swoop cvs will go from a low multiple retailer to a high multiple health care company. Thats no longer shadow boxing with amazon. It doesnt matter how much cvs pay for aetna, the story changed and thats whats important. Dont worry, stocks got hit today, theyll come back i think theres a great opportunity. Now like when cbs bougvs boughte mark, we know there will be collateral damage. The care mark deal was an attempt to head off walmarts cheap generic drug initiative. This time theyre taking a hit too gird itself for war against amazon why not . The stock has been trapped in retail purgatory for years maybe that ended as of today we know most acquisitions are done for scale and cost cuts but sometimes you buy another business to change the image of your company and thats the theme of both these deals and when theyre completed the stocks will run. The regulators pay dally, but investors probably wont wait as the future prospects for disney and cvs to me, well, disney if it does the fox deal and cvs if it get this is deal closed, they look more rosy and attractive. To robin in oregon robin . Caller jim, greetings from portland, oregon. Good to have you. Whats going on . Caller jim, jacob engineering, particularly in light of their pending merger with ch 2m, whats your view i dont like that group thats one of the problems ge has. We dont want to be in the Engineering Group cbi neither. These are very hard business we dont want to touch them. Well stay away. Its story time and the narrative is changing, cvs and disney are trying to change their images thats what the recent action is all about. Much more mad money. Including what amazons purchase of whole foods and the subsequent selloff of the grossers can tell us about other bezos induced declines as smartphones become more popular, Accurate Information is more important than ever im eyeing one company hoping to bank on the trend. Dont miss my exclusive with yext its a cancer fighting bio tech with stock up 25 this year. Ill reveal the name and tell you if its worth owning when i turn in tonights home work so stick with cramer. I think that shes a very nice girl. You never got the brakes looked at . Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Ive asked chase sapphire reserve cardmembers to find my next vacation. Uganda, what are you up to . Thats a real silverback gorilla. Im freaking out 3x points on travel and restaurants. Sapphire reserve, from chase. Make more of whats yours. How about that for pin action all right. Listen to me, it seems like it happened ages ago but its been less than six months since amendment announced it was buying whole foods on that fateful day, june 16, the whole supermarket sector got beaten to a pulp, with many of the grossers seeing their stocks fall 5 to 10 in a single session. The whole group needed to be rerated lower now that the retail death star had them in its cross hairs. The weakness in the grossers continued for weeks or in some cases for months but lately Something Interesting has been going on. The whole group is making a comeback in fact, to borrow a line from mark twain in response to a premature obituary, reports of this industrys demise have been greatly exaggerated. And its not just the supermarket stocks that have been hanging in there. Theyve had some remarkable run, up 20 to 40 from their postselloff lows. Crazily enough, at this point, most of the group is trading above where it was when we learned that amazon was getting to the brick and mortar grocery space. Thats not supposed to be happening. So what exactly did occur here and what can we learn about the behavior of supermarket stocks and what can it tell us about the way things play out when the amazon death star targets an industry when amazon told us it was buying whole foods for 13. 7 billion from june 16 the whole supermarket space got pummelled not one of my absolute favorites, supervalu, but this lost 14. 4 of its value. Thats a lot kroger, this one plummeted 9. 2 . Not so good. Costco incredibly, oh, my, because it was doing so well, it sank 7. 2 . Sprouts was down 6. 3 . Even the larger retailers with a focus on groceries got hit target and walmart both fell roughly 5 it was the summer of the supermarkets discontent what made this particularly brutal was that literally the day before the amazon news broke the whole group had already been slammed thanks to a disappointing quarter from kroger which slashed its whole year earnings forecast now, kroger is the largest player in the space, doing well, its the industry bellwether so its hideous 19 decline spread to the rest of the group sprout lost more than 9 , supervalu 4 the amazonrelated declines were on top of those brutal moves in short, it did feel like armageddon for the grocers with amazon being the fourth and final horseman of the colonoscopy. The hits just keep coming. From where they were before the amazon whole foods news to where they bottom, supervalu sank 35 , kroeg cher at one point was completely obliterator, kroger lost another 11 , costco given how well run it is dropped 10 , sprouts lost 16 , obviously thats related to whole foods. Im regarding these stocks as falling knives, they cut a lot of people down but just when it seemed the Grocery Store space had been written off and totally left for dead, the whole group made a remarkable comeback. Supervalu bottomed on october 20, since then a 30 gain even though i dont like it kroger is up 36 after a decent quarter, sprouts gained 37 from its lows meanwhile, costco, walmart and target bottomed over the summer rallying 26 , 33 and 28 respectively i thought they were supposed to be dead . Those are impressive moves, especially when you compare them to amazon which is up just 15 disney learned about the whole foods acquisition, yeah, the death star is the worst performer. So how is it that supermarket stocks have managed to rebound isnt amazon totally toxic to anyone it competes with . Isnt it the unbeatable death star of retail sure, nobody in their right mind wants to go up against amazon, maybe cvs did this deal because theyre worried, but entire industries dont come undone in a single day what happened was simple wall street got ahead of itself. Immediately after we learned amazon was taking over whole foods the Analyst Community started slashing estimates for everyone else in the grocery space off that news. Long term that could make sense. Eventually amazon will be a threat to everyone, including the german grocers they put pressure on everyone elses margins that i did it to book stores and record stores, i wouldnt be surprised if they would ultimately cause real pain for Grocery Stores of which the biggest by the way is this one great just kidding however, all that is for the future for the moment, whole foods is a niche chain with a few hundred stores that appeals to highend consumers. They cant take everyone elses business away overnight. If the analyst also decided to slash their nearterm estimates from many supermarkets, thats where they went wrong and we found out when these Companies Reported like kroger their most recent numbers, well, it was a mistake to cut that low, supervalu trounced wall street, kroger 10 earnings beat, costco best of all, posted solidly betterthanexpected earnings two months ago and gaye you a fantastic samestore sales number sprouts gave you a big beat last month. Target, they lowballed the forecast, it was a good number and walmart gave you one of the best stories in the dow. The stock went up about 10 in a single day this is not a smallcap stock. What else . For the past few months costco has turned in increasingly amazing samestore sales as i mentioned. In october, 7. 5 then in a monster november, 10. 8 . Walmart blue away the numbers in november after having announced a gigantic 20 billion buyback in october, enough to gobble up 8. 5 of the companys market capitalization at the time, unheard of to see a big cap like that yet even after these moves most of the groceryrelated stocks remain cheap supervalu sells for eight times next years earnings estimate but i dont want you to speculate that kroger is reasonable target trades at under 15 times earnings, not bad when you consider they underpromise some are more expensive. Wall smart 20 times earnings, pricey 21 times for sproud. I dont know Higher Quality players now Going Forward i think things could get a little more difficult for these names. For example, supervalu is too risky, kroger is in the midst of a big restructuring but i believe in the ability to turn things around because i like the smaller restaurant initiatives, if they can blow them out across the whole change it would be interesting. Costco, what can i say left me behind firing on all cylinders. Sure id like a pullback sprouts is doing well and works despite the somewhat elevated valuation. If you want a major player where groceries are one part of the equation, i favor walmart over target long term walmart is the only retailer to truly challenge amazon, it has the leadership to pull it off thanks to Ceo Doug Mcmillon still, most are domestic and will pay a much lower tax rate when the tax bill gets done and that couldnt be said a couple weeks ago. That encourages buyers who believe the worst is over and i cant blame them given that almost all these companies can guy back stock and shrink the denominator giving them more earnings per share one more thing weve seen a similar recovery in the Dollar Stores of late which makes sense as both Dollar General and dollar tree are thought of as stealth grossers food makes up a big part of their business i hope you took my advice when i recommended these to you last month because they performed fabulously Dollar General is up 8. 6, dollar tree up 13. 5 , fantastic number. Heres the bottom line when amazon declares war, its not an immediate death acceptance for the incumbent players. Sure, amazon crushed the book stores and the record stores, but it took many, many years to play out and their Balance Sheets werent as good as some of these, thats why the selloff from the supermarket stocks or all grocery plays was excessive and why i think these stocks can continue to climb even after the huge rebounds that theyve already had. More important, next time you hear amazons got some group in the cross hairs, like the drug stores, like the auto parts which are really climbing, dont be so quick to give up on the entire industry. Lets go to sean in massachusetts. Sean caller jim, how we doing im doing well, how are you caller great, man. Shout out to the Coastal Carolina university and my hometown of greenville, south carolina. Absolutely. Caller my question is, with so much growth in the Online Retail space and more and more retailers moving from brick and mortar stores, whats your thoughts on a stock like u. P. S. . I like u. P. S. Very much but you know what . It got recommended today and it hit an all time high if i recommend an all time high stock and we suddenly get Something Like we had today and friday for the nasdaq, what can i say . Everything will come tumbling down so why dont we wait for a better price okay this is this is not going to knock over all these just in a visual fashion it will its just the way amazon rolls the death star hurt the entire grocery industry but you know what the grossers are making a comeback and you know what . I think after a little while they can climb again there was too much Excessive Movement in the last couple days much more mad money ahead, including a company that puts businesses on the map, but can it do the same with your portfolio . Im sitting down with the ceo of yext to see how its faring. Can you stump me im turning in home work all your calls, rapid fire and tonights edition of the lightning round so stick with cramer let out your inner child at the lexus december to remember sales event. Lease the 2018 es 350 for 319 a month for 36 months. Experience amazing at your lexus dealer. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Why did you take Credit Card Debt on . Second kid. Private school. Medical bills. Moving costs. Solid ground. A personal loan from sofi is a smart way to consolidate Credit Card Debt. Certain borrowers cut their credit card Interest Rates 42 and increased Credit Scores 17 points on average. Borrow up to 100,000 with low rates and no hidden fees. Find your rate in just two minutes, and take on your debt at sofi. Com. And i am a senior Public Safety my namspecialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. Earlier this year i introduced you to yext, a company with a cloudbased platform that helps businesses manage Important Information on line basically they sync up with hundreds of Services Like google maps, facebook, siri and yelp to make sure youre posting your companys location, phone number and hours of operation correctly. The idea is that yext makes it so Business Owners dont need to coordinate with Different Social Media outlets. Ive been wary of yext because i worry about what could happen if someone like amazon decide to steam roll him and last week the company proreported a solid quarter, however, the weakness continued today so can yext thrive in this environment lets check in with the cofounder and ceo of ex to the get a better sense of how its company is doing welcome back to mad money. Have a seat. Its interesting, you get this split. Heres key slight beat on 45 Enterprise Growth i dont have a lot of Companies Growing at 45 Enterprise Growth, at the same time, there are people who sold. Im trying to make sense of it can you make sense of it we had a great quarter, jim, we grew 39 overall, we exceeded our expectations Gross Margins came at 73. 7 , an increase of 290 basis points over the equivalent period last year we beat on eps by a penny. We added 55 New Enterprise logos and were building a big business for the long run. So there are people who say that the Fourth Quarter outlook is a down tick maybe someone whos very close to the situation and is looking at an individual tree in the forest might think its a down tick i see a company basically in the cloud helping enterprises coordinate so nobody doesnt mistake and you dont lose easy sales. Well, thats exactly right. We are witnessing a major platform shift the rise of conversational Artificial IntelligenceServices Like alexa and siri and Google Assistant and each of these Services Needs knowledge to give you an answer. If you ask Google Assistant how many calories are in a big mac, she needs to know the answer to tell you and yext lets Companies Manage all their deep Digital Knowledge in the cloud and automatically sync it to over 100 Services Like facebook, like siri, like Google Assistant. So before yext, what did people do . Lets talk about volvo. Volvo signed up with yext about six months ago they revealed at our annual user conference onward this year that weve corrected more than 50,000 data errors since they signed up auto nation same thing . We help Companies Manage all their Digital Knowledge, we correct it and push it out into these Different Services everywhere. So lets say a restaurant is offering a twoforone taco tuesday and theyre not sure where thats going to go can you give it to yext and yext will correct it . We help Companies Manage all their Digital Knowledge. Theres different types of knowledge by vertical. In the case of a restaurant we help them manage their location data, a coupon like that and increasingly important is their menu you may be looking as an end user not just for the actual restaurant itself but maybe you want tacos you need to have your menu in google when someone is looking for that. So youre tmobile and you hire you guys. Lets say that did this netflix idea which i think is great. There are places where you wouldnt know that is yext going to find all the places our Customers Put in all the knowledge into yext. Every Intelligence Service has three layers, they have their ui, their ai and a Knowledge Graph. The companies cant control the ai or ui that comes out of google or microsoft but but they can control the knowledge about them in those services and thats why they can make their own Knowledge Graph and so just like every company has a web site today, we see an intelligent future where every company has their own Knowledge Graph containing all the facts, all the details about whether its a restaurant for taco tuesday or tmobile trying to sell new phones. Okay, now we have a very Strange Development in the tax bill coming where new york, if youre in new york youre paying much higher taxes than elsewhere will that hurt a yext which is kind of our Silicon Valley idea that we have in new york were headquartered in new york, but one of the most exciting things, jim, is that Digital Knowledge management, the space, the new space where we are the pioneer is a global opportunity. We have offices in europe where weve seen great traction so far. We have an office in tokyo, even one in shanghai. Were a Global Company in fact, we Just Announced an integration with we chat so our customers can publish the deep Digital Knowledge about their stores and their products and people and places in chinese in the most Popular Service in china. Well, look, i think you need ex if the youre running a business and trying to get people to your place thats just important or youre trying to correct errors as you heard from volvo thats howard from yext. Take a shot. The moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. Bacteria can multiply to high enough levels that even cooking it will not destroy all of them. Its definitely the most important thing in my business. How fresh is the fish . Where it comes from . How it gets here. The more i know, the better. Sometimes the product arrives and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. We took our world Class Network and we developed devices to track environmental conditions. This device allows people to understand whats happening not only with the location of that asset, but also if its too hot, if its too cold, if its been dropped. Its completely unique. We ship fish, beef, poultry, vaccines, insulin. This is about monitoring and protecting everything we ship. I catch all this amazing, beautiful fish and then once its out of my hands, i have no control over what happens to it. If you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Its really all about the network. You are looking at trillions of transactions a year. Not too Many Companies in the world can even scale to that type of volume. Who knew a tiny sensor could help keep the food chain safe . Food has to be fresh. Its that simple. It is time its time for the lightning round and then the lightning round is over are you ready . Time for the lightning round im going to start with benjamin in florida benjamin caller hey, jim. How are you doing caller with the recent semiconductor selloff and attractive valuation, is it time to look at the advance Energy Industry i think what you have to do first is go with the traditionals, you have to buy an intel or Texas Instruments before you go down the food chain because thats whats going to bottom first and you go to julie in california julie . Caller hello cramer julie caller my stock is praxair. What a winner that is what a winner that is. Hold on to it. Its doing fine. Jan in california. Jan. Caller hi, mr. Cramer, thank you for taking my call. Of course caller a few questions about hi max technology. Should i buy the stock at current price and what is the 12month target in your opinion . This is a company thats a taiw taiwanbased company and i cant learn enough about it to make a judgment for you im sorry. Glenn in california, glen . Caller jim, a pleasure to speak with you, man, youre an amazing teacher and i really appreciate you and your humor. I need your guidance here. I know theres a rotation now in the nasdaq at the moment. Terrible. Caller but it as a gate company and continues to get a buy rating everywhere but its plummeted about 40 points in one week but im confused. Is there something internally that im not aware of dragging this stock down . Can this stock recovery and do you see a bottom whats the stock . Lam lam is you have to go what Morgan Stanley is saying they say flash is going to roll over lam makes machines to make flash. If thats the case, that stock is rolling over, too and it makes a lot of sense i think lam is a Great Company but im not going to stick my hand in a lam lions den not yet. I have to wait to see it go to where all the sellers are done and the panicked sellers are very much in there jimmy in new york, jimmy caller jim, how you doing, buddy . All right, how are you . Caller okay. What do you think of sogo. Another beijing company im not going to recommend it. I think these companies other than frankly just other than i cant believe im not touching them i need go to kwan in louisiana kwan caller jim, how are you . Im good. How about you . Caller good. Im doing great. I have a question. Stock century link, stock symbol ctl. A total red flag. I think people are in that i dont like the stock and i dont like the stadium and a that, ladies and gentlemen, is the conclusion of the lightning round whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade you myour joints. 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Especially to children. Protect your family. Visit tobaccofreeca. Com. Every time you guys ask me about a stock i dont know that well i always circle back to it and give you the full story after doing more research because thats my job. Its my job to tell you both what you need to know and what you want to know about the market. So now that wall streets looking at a big victory lap although it was not a total one since we had a terrible reversal over the senates passage of the gigantic corporate tax, well, its time to catch up on home work on october 23 tony in pennsylvania asked me about pbf energy i had to do bigging. These refiners are hard to understand theyre a major independent oil refinery with operations all over the company although 40 of their capacity is on the east coast. Thanks to a couple acquisitions from recent years, the company has five refineries, the newest one is in torrance, california, another outside new orleans, one in Delaware City delaware and one in new jersey. The last one is in toledo, ohio. A lot of geographic diversity for a relatively small refine richlt pbf stock has been on a real tear. Shares are up 60 since the middle of august whats driving the move . In early august, the company pointed a disappointed quarter that was weighed down by significant maintenance integration costs at their newer refineries but management talked about the potential for stronger results in the second half then we got the two big hurricanes harvey and irma that shut down capacity in the gulf coast but since pbf only have one refinery in the gulf coast, they came out of the storms relatively unscathed they were able to profit as the cost of things like gasoline spiked remember, they get the higher price even though Nothing Happened to their refinery sure enough, when they reported last month the numbers were excellent, not just because of the storms but because the companys execution did improve in their california and louisiana facilities plus theyre committed to paying a hefty dividend despite choppy recent Free Cash Flow trends and even after the huge run it yields nearly 3. 7 where do i come down pbf has had a staggering run compared to other refiners and while the industry seems to be in good shape, sometimes you just sit down and say you know what i missed this one, i didnt get it early enough. I let it go, i didnt see it thats whats happening. The stock has had a run so far so fast that i want to stay on the sidelines until we get a big marketwide selloff that causes the price to come down for no good reason and remember those things do happen without a significant pullback its hard to give this my blessing if you dont believe me, look at these tech stocks. You think anything happened that was bad at align tech . Come on. Next, danny in pennsylvania called about one i havent talked about in a long time, barnes group i said i had to get back to him. Barnes manufacturer is highly engineered high quality precision parts, products and systems for critical applications in aerospace and industrial settings. To break this down more, barnes Industrial Division makes plastic Injection Molding equipment, nitrogen gas sprays used in Metal Stamping dies. On the aerospace side, they make components and assemblies as well as offering maintenance, repair and overhaul services now, barnes has been around for a long time. This is a 160yearold company in september they hosted their First Investor gig ever. Management laid out an impressive strategy talking about how they would keep focusing on high growth businesses while improving the productivity of all their divisions and making smart acquisitions, particularly on the industrial side. Well, top of that, barnes gave us nice targets for 2020, forecasting solid midsingle digit organic growth, nice, and some impressive margin expans n expansion. Well see if they can deliver although when the company last reported in late october, despite delivering strong sales growth, the margins were weak. Something weve been seeing from them for most of the year. However, management indicated most of the head winds theyve been facing have abated. That should make for easier numbers Going Forward. I like that. The stocks has rallied 70 over the last couple years. Stocks pulled back hard in october following a disappointing quarter. Shares down eight bucks from their highs. I like this. I think barnes is giving you a nice entry point and industrials like this one are very much in the sweet spot of this market right now. A wellrun industrial with an aerospace kicker down eight points ill take it finally, on october 25 eric in california wanted to know about array bio pharma, arry for short. I said i needed to do brushing up on this thats going to happen because theyre all about whats going on stage one, two, three and partnerships array develops small molecule drugs designed to fight cancer and major pharma players love to collaborate with them which is why the company has five partnered therapies in phase three trials pretty good. They have large stable drugs in phase two and they own two of these outright on the one hand, bio tech is out of favor in the wall street fashion show at the moment but on the other hand, array has a lot going for it fda is going to make a decision on two of their new drugs as a combination therapy for braf mutant melanoma. Theyll give it by t thumbs up or down by the end of june the data has been strong so im betting on an approval for this rare skin cancer and if im right, arrays drug should go toe to toe with the current standard of care at the same time, theyre studying this their of drugs as a treatment for braf mutant colorectal cancer. Basically, any cancer with a braf mutation could be on the table. We should get phase two data for arrays wholly owned drug, thats arry382 in combination with mercks key true da. You know, the key anticancer drug for solid tumors. That will be some Time Next Year heres what i feel about it. Its at the developmental stage, long way from being profitable and their minimum revenues come from these partnerships with larger drug companies. Are they going to run out of money . No array just raised 240 million in the second half so the company is flush with cash more than enough to get them to the end of next year when things go well theyll receive royalties on two drugs that are up for fda approval i like this one. It has an impressive pipeline and youre doing the right thing when roche and astrazeneca want to work with you but i can only give them my blessing for speculation dont invest in money you need for your retirement. This is discretionary mad money only. And, please, no nest egg [vo] progress is an unstoppable force. The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. Thats it. Im calling kohler about their walkin bath. Nah. Not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call to save 500 off bath walls with your walkin bath, or visit kohlerwalkinbath. Com for more info. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Im not that fond of intraday reversals and im not that fond of this kind of willynilly rotation so i want you to be very careful. I think the domestic stocks have gone up too much if we do get earnings bumps storm, you have to do some selling and tech has fallen too much but its still too early to pull the trigger theres always a bull market somewhere, i promise to find it just for you right here on mad money. Im jim cramer see you tomorrow welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. First into the shark tank is aaron krause, who believes his product will make every day cleaning easier. Hi, sharks. Im aaron krause from philadelphia, and im known as the daddy of the scrub daddy, the cutest but most high tech scrubbing tool in the world. Today, im seeking a 100,000 investment