Year can it keep rolling on mad moneys jim cramer is with us for the hour the Halftime Report starts right now. It is great to have you with us on this monday. Our Investment Committee today, joe terranova,ster know, and jon najarian and cnbcs jim cramer, host of mad money. Always great to have jim on the desk earnings economy and Rate Decision front and center and President Trump firing off on the fed once again tweeting that the fed raised rates too early and too often and said a small cut isnt enough meanwhile janet yellen giving her thumbs up for a cut. Although the u. S. Is doing well, i would be focused on wanting to keep it doing well, to keep the expansion on track, and i think in light of the risks, i would be inclined to cut a bit. I wouldnt see this as the beginning unless things change, of a major easing cycle. Cnbcs senior economics reporter Steve Liesman is here as well to give us his two cents and much more, i hope. Its a foregone conclusion in terms of what the fed will say afterwards, though that is not necessarily a foregone conclusion. Right we were trying to be watching the guidance very carefully, and also the press conference. Powell has a per wet to do here, which is to explain why hes cutting while the data doesnt necessarily 100 support it. Now, you can make the argument, based on whats going on with trade around the world and make the argument based upon whats going on with the manufacturing side of the world, not necessarily based on, i think, whats going on with the u. S. Economic data in and of itself, especially if you look at things like retail and jobs and some of the other indicators that are out there that are really not that bad inflation also obviously. Thats the other argument its the obvious one, the slam dunk. On the other hand its 1. 8 in the gdp youre looking for 2 the miss of 0. 2, is that a reason to cut or a reason to stand pat . I will say theres a lot of disagreement on the street from all three buckets. I got people saying they should stay on hold, people saying 25, which is jpmorgan and Morgan Stanley at this late date looking for a 50 pirouette, what is the risk reward an Jerome Powell doing a perfect pirouette, jim, from a market perspective . I think he could it it. The 25 is fine the industrials, stephanie and i were talking about during the break, they could do nick aikens is the ceo of electric power, the largest in the industry and the deceleration is stark, both consumer and industrial, with the exception of some areas of texas, and i think if the fed were to look at that level granularity, it would be so easy, because nick has been a guest forever and the expansion really tracked what he said or you could argue he tracked the expansion but electric use in this country is down, and its not out of conservation. Its because of a real slowdown. I think it makes a lot of sense for powell to do 25. So the data is not necessarily shown us the real slowdown were seeing in power consumption. Precisely this is what china watchers used to point to they used to get the data, the only data that you would trust. This isnt china. We have real Economic Data i get what youre saying, jim, and i cant discount that electric data which is good data the Largest Power Company in the country. Gone you cant rig it i got employers hiring 220,000 and looking for 166. I had retail sales beyond the country has it. The country has it, right i would point out what yellen said is why cant we have an expansion. Why cant the numbers go the other way. We could, steph, name 20 Companies Whose deceleration is rapid. Particularly industrials and auto and markets at the end of the day, consumer is fine. Its the bulk of the economy, which is why the numbers still look pretty good, the top line numbers, gdp and all that, but manufacturing is really struggling just look tariffs tariffs, absolutely overall Global Growth is slowing. While i think the fed meeting this wednesday is very important, the china pmi data is equally as important to me to see if well see a stabilization. If that keeps on deteriorating, Global Growth is going to continue to deteriorate and thats not a good thing. Earnings are equally as important but we have to get through the two events on wednesday. I still believe that, through 2020, the tensions with the chinese are going to remain in place. I dont think thats going anywhere thats staying with us with that said, manufacturing is going to have a headwind, going to remain in place so what you want from the 25 basis point, are you cap pi with capex . Ill take it. I would you want capex, and 13 growth, are you happy with that . You bet you want to focus on what are the Companies Going to do with what theyre going to get from the federal reserve, and to me it comes down to capex, maybe m a and buybacks f those can increase with the numbers that i just presented, i think its good for the market. Thats good stuff to jims point we heard it on the Conference Calls already of china, most of the mentions done in the negative light. That is going to be another data that Jerome Powell could weigh going into this situation or it isnt . I guess i am a little bit suspect and meant to be seen on this that a fed rate cut offsets the effects of a trade war ich not sure thats the right answer other than theres two good reasons to cut, one is to meet Market Expectations because if you didnt youd have the conditions that a market selloff that causes a need to cut rates and the other is maybe you change the capx calculation. A little hard for a set of companies that just received an absolutely historic tax cut. That brought the statutory rate down from 35 po to 21 to argue a quartert point rate cut is going to make the difference towards making an investment or not and i have a hard time believing that froms aa psychological effect as well meeting Market Expectations and little Downside Risk to it because i dont see the incipient inflation, go ahead and do it. Im not sure thats the answer you saw the capex expansion after the tax cut, correct actually it was before. Aed hhead of it it was weird. Two pieces of capex but go on. 100 , companies froze why . What did they see . Tension witness the chinese. Right but youre kind of making my point for me, right, which is how does the quarter point cut solve the problem of the trade war. Relacks. Maybe it goes to 325, puts the tariffs at 325 billion the market takes a big hit we need some back stop it is some back stop i agree but its not a cure. Id be much more pessimistic on stocks i think if you told me i had another 325 coming and i was going to get even 50 basis points of rate cuts. Right . That 325 is going to impact the consumer right yes in a big way. Youre already hearing rick polaris on this morning saying they this h to raise their prices some by 3 most of them they worked around they started raising prices a year and a half ago. They really did and they intensified. Stanley black decker, also same deal. The Manufacturing Companies i think were first to really start to put the price increases in place, because they were going to see it on margin. Right that should help them going forward, and melissa, its interesting on industrials in general, these stocks are actually the ones that disappointed, theyre right back to where they were before earnings incredible. United rentals, caterpillar, itw. A fed cut its a fed cut and youre seeing a trough here right you look at the dallas fed number it was all right st still negative but less bad. Because of the pipelines. You have to Pay Attention to the way the stocks are also reacting and responding and earnings season always gives you chances and looks. They are going to, they already put themselves in a box and cant get out of the box because they said throughout their communications to us, not reading between the lines but directly, were going to i have go you a cut it will be 25 basis points, i think wed all agree and if they didnt its a problem. What if they say one and done what is the reaction of the markets . Theres tar ofis on 300 billion worth of goods, no deal on brexity which is causing the dollar to strengthen all of the unknowns out there. If they did that you would see a repeat of december we have to see, steve, multiple cuts but i think thats what the markets anticipating and if you just took that off the table, despite what yellen just said if you took that off the table, this would be december all over again. A huge mistake we need one independent how about the president , he fired the person he really needed oh, such a shame if i could weigh in on it quickly, i think the fed will give us the language that it has been giving us i think we are in the act as appropriate modality of fed policy right now and i think theyll continue that language and that could mean whatever the fed needs it to mean, and it could mean what the market wants it to mean in the sense if i think we need more rate cuts, i think the fed will do more rate cuts, act as appropriate, we will act as appropriate and work for that purpose what language will we hear about the Balance Sheet ending the runoff that was so important in the fall sunday night, some people watched 60 minutes. I read the fed reports for the next week. I was surprised to see a couple folks calling for the possibility that the fed may end the Balance Sheet reduction this week i logical cannot rule that out, i think thats possible. Thats a bonus on top of what the market might be expecting. I think the idea of letting it run for two more months or cutting it off now is different from a financial point of view from a psychological point of view i think it will speak to a fed that gets it on all cylinders. Get more bang for their buck if theyre ending it this week theres research that says the idea weve heard this one, which is that act earlier but also the idea of surprising the market, that is something that has some backing for what the fed will do. Steve, thank you. Pleasure. Steve liesman stephanie, going back to the industrials, you and jay were talking about industrials getting back to the levels where they were prior to reporting what looked like disappointing earnings at the time, united rental rentalals . For sure, up 20 at print they dont surprise or raise guide anze we thought theyd do so the stock fell 10 . Its a volatile high beta thing. If you want juice you want to own it and conservative you dont want this, but its back to where it was because the underlying fundamentals were good the kneejerk reaction is silly you have to look at the fundamentals and i bought United Rentals on that weakness because the quarter was just fine. Really it was. Emerson is your perfect example today. The trailing threemonth orders, stock indicates its halted, down 2 . Now down 50. So to me that tells you that a lot of bad is priced into this particular part of the market. Jay what are your thoughts on the General Electric earnings this week . I know larry doesnt want to hear this but he doesnt have the horses, larry colt, ceo. He doesnt have the horses the the jpmorgan analysts are powerful and they may have a decent quarter, the ge company but again, aerospace will be good because its not as levered to boeing as the others but we have the black hole of power, melissa and its not been solved it hasnt been solved and i would like to see people Like Health Care more everyone has decided he gave away the health care good part of health care to danaher. I thought he got a good price but we need to see the analysts who bash it, he doesnt have the horses i wish i could say otherwise what do you do on the cost cutting front . They underperformed for ten years ard doing to management team, ten years they havent been able to rein in costs theres overhead and a lot he can play with on that side of the occasion maybe you need power to stabilize. Whats amazing, power is going away from the great margin power into things like wind. Right wind and solar, i dont think people realize were not germany but were moving aggressively toward wind and solar and theres not a lot of money in it for a company that specializes in power doubled down in power in retrospect ill advised arent the industrials basically the proxy for this entire conversation surrounding the fed . You look at the performance of 3m after its results it pops a little, falls right back, caterpillar has done nothing. Back to where it was. Look at mohawk, what was that all about . Performances tell you, joe, these guys see green chutes the bounce back. What do you see . The manufacturing component of the economy means something and thats why i think its a worthwhile conversation that were going to have with 25 basis points and a Balance Sheet runoff i dont see the industrial opportunity. Im in honeywell and copart. Im mining for industrial names all the time i cant. Theres a scarcity. We know that id love to buy 3m its so hard. This time he talked about the earnings the groundwater issue was addressed very well. I thought he did a good job. As always, there have been stocks that have continued with momentum after, and there have been stocks that ran into the earnings, facebook among them, 3m another, they run to the earnings, post up a nice premarket move and its gone there are a bunch of Software Stocks today that are getting slapped, even though they have put up good numbers. Yes mostly the sector has been very strong. The story of positioning this quarter it seems yes, and for whatever reason. The people running the large portfolios are hitting sell buttons on those as soon as they get that, even a stock that well talk about later, mylan. Great news on several fronts stock popped as much as 27 , 28 in the pre, and then whack, they took it away like that if you werent disciplined, and you didnt take your profits, this was not a fun ride. Just quick, the most interesting color regarding business in china might come tomorrow night from tim cook on the apple conference call. The last couple of quarters hes talked about whats gone and told us when there is a headwind and tailwind tomorrow night he should be able to offer insight whats it like can we talk more apple after the break . I have some ideas. We have a lot we will definitely talk apple. Today Ceo Michael Oleary weighs on the impact of the 737 grounding on his business and didnt mince words on the Earnings Call earlier today. We were originally facing 58 aircraft for the summer of 2020, thats now 30 at best. It may well move to 20 it could move to ten and it could well move to zero if boeing dont get their [ bleep ] together quickly with the regulators comes after southwest announced friday its plan to pull service from Newark Airport as the boeing jet remains grounded stephanie, you own boeing. Umhum. The focus mainly when the jet gets back in the air on the impact on customers and whether or not theyd be willing to take a flight is also an impact on the customers and their perception of boeing and whether or not they want to do business in the future, not necessarily for the orders they have in place but maybe the mid market airplane or the next one in the pipeline not a lot of options. A airbus is already producing to the max. They cant take on anymore Airlines Want a second source. This is down 20 , which reminds me of last year facebook when it was always in the news there was an article every day couldnt get out of its own way. Boeing is still up. Up 5 facebook was down my point is the news flow has got to stop. It doesnt have to look that good but i cant wake up every single day and expect the stock to go up when you have headlines like this. Its the faa, its not boeing. Its the faa, they got it wrong so they have to make sure theyre meticulous in this whole process and its taking longer every day theres an article, over the weekend an article about the faa outsourcing parts of their inspection process to boeing itself, then theres an article about the smaller high growth areas in the world that are buying these jets, the biggest customers for the max and theyre really feeling the pain and how thats an impact. Every day theres something. When it happened with facebook then it stopped and they announced the huge pieback at 125 a share for facebook mel, i listened to mr. Oleary a lot. Hes trying to play poker here and he doesnt have a good hand. Even though hes got all that money to spend hes playing poker, mel, because right now he is a one aircraft fleet. He just flies boeing thats all they fly. Full stop, end of story, you dont have airbus mechanics on staff, and so forth. So for you to say, for instance, im going to go with two aircraft here, not happening not happening, michael i dont believe you. I think youre bsing us, to use part of what he said i think hes bsing here trying to get the better deal out of boeing ive heard him talk about how people are going to be fine flying on boeing airplanes theyre not going to care about this and he says all of that quite an irish accent i have an irish passport. I would pif doewife does, too does she . But shes irish my wife is irish, bridgity meghan mary mcgrath. So whats going on, he is trying to bluster and play poker and i get it, neither boeing nor i are buying into it you know youre only buying boeing because thats the mechanics you have youre right. I was going to day to unpack t you have the infrastructure in place to service boeing planes why does southwest only fly boeing same reason. He built his fleet based on what southwest id how do they control the news flow the british paper says someone who worked at boeing for 30 years say they cut every cost, did everything wrong i have to wonder, when muilenberg, the ceo will be able to say ive listened to every single critic. You can all come in here and watch everything, everything that we do that would be positive. The cfo taking care of it, doing a great job. Just put a damned gopro on, for heavens sake. They need to show us everything. Feels like j j they said we are not doing the right thing with talc and they investigated and said we are i have never seen a daily blast what an unsafe company is that is the Safest Company on earth so should there be an independent investigation fine, yes yes hire somebody give me your tired judge, for heavens sake. Get me a federal retired judge i suggest that to facebook, too, but theres not enough to go around youre not worried that the customer will not step on the plane once its back in service . America doesnt have as many maxes. They can go against southwest say were not going to flow southwest. Theyll all go on american thats why i asked gary kelly the ceo, its my biggest fear someone will play politics which would be a shame if youre an owner of boeing you hold onto it and if you dont own it, would you buy it i wouldnt buy it i wouldnt buy it, because i really think that they havent done a good enough job they really have not said in a transparent way, heres what weve had. Heres the people were firing heres the heads that have to roll here is the communications lets see all the emails lets see the emails between them and the faa they kind of cant. Why not because of all the investigations going on theres lawsuits anyway as soon as this hit this negative news hit this terrible news hit, muilenberg went on the road too soon. Maybe but at least he was proactive wanting to say what he could say but he couldnt say that much. I know they say the governments his hands are tied. They say it but sometimes you have to go against your own words and say people think our hands are tied but people think our company is now an enterprise dedicated to lack of safety. This is a company that put the b29, b17 i was on a plane struck by lightning, boeing. We were going down pretty fast, and then a new set of lights come on. I went to the pilot after, he said boeing always makes no twoplanes, theres one plane and the second plane, when the first plane goes bad they dont talk about that stuff. Wow here we are thinking that boeing is basically someone that is skimping on safety . Its not true its their reputation and thats hard to get back. Its hard it will take time they have to do a lot of marketing and a lot of spend for sure they have to talk to their customers and really coddle them for sure and give them price concessions, to jons point. I expect all of that but the stock is down 20 . Its lost 38 billion in market cap. Still if you go back to that quarter max was the issue, every other piece of this company the results were better than expecteded theyre doing all they can do. You get this one piece fixed which say big issue but theyll get this fixed april 3. 5 billion offered, 5. 5 billion offered today, once again oversubscribed i think theres a level you want to buy it and the level is when theyre more transparent. I dont think theyre transparent enough and i think they keep saying our hands are tied i dont like that. Their hands arent tied if their whole reputation is at stake untie your hands let the faa issue an injunction against them for telling the truth. They have to stop lawyering up jim our lawyer says the government says this your companys reputation is on the line take the chance the faa says i dont want you being transparent. Is that going to happen . I think youre too transparent who is too transparent in 2019 the fed good one. Much more an apples earnings coming up. Here is what else is coming up. Jon is tracking the options market, seeing some unusual activity plus one of dr. J. s pharma bets thats up big since he bought it we want to hear from you, jim cramer and the Investment Community are answering your questions in ask halftime. You can reach us at cnbc. Com halftime, or tweet s halftimereport un using askhalftime the Halftime Report is back in two minutes. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. Dto experiencer gthrilling performance. Now, at the lexus golden opportunity sales event. Get 0. 9 apr for 60 months on all 2019 models. Experience amazing at your lexus dealer. Wiswitch wireless carriersn bring in your own phone, and save hundreds of dollars. Its pretty much the easiest way to save since sliced bread. Sure is. Because savings is as savings does. And sometimes youve just got to stop and smell the savings. Im sorry, i think you mean roses. Oh right. You need to stop and smell the roses of savings. Bring in your own phone, switch to Xfinity Mobile and save hundreds of dollars a year. Now thats simple, easy, awesome. Get 100 back when you bring in an eligible phone. Click, call, or visit a store today. Welcome back im sue herrera. Appearing with more than 60 First Responders in the white house rose garden, President Trump signed the 9 11 Victims Compensation funding bill into law. It extends funding for 9 11 victims and their families until the year 2092. Today we come together as one nation to support our september 11th heroes, to care for their families and to renew our eternal vow never, ever forget new yorks Governor Andrew Cuomo signing a bill reducing penalties for possessing small amounts of marijuana it makes the violation similar to a traffic ticket, 50 for possessing less than an ounce, or a maximum of 200 for one to two ounces and a sweltering heat wave is gripping toronto and other regions of canada and likely to continue today city hall reached more than 100 degrees on sunday afternoon. It is hot all over the place that is the news update this hour melissa, back to you all right, sue, thank you sue. Apple set to report earnings tomorrow after two straight quarters of declining revenue. Investor also watch iphone sales number as well as growth in the expanding services category. Joe, youre out. No more apple, you sold it why . Because i rang the register, apple around 150, sold up around 190. Josh brown made a great point on friday hes right you look at the mega cap Growth Technology names, we all own them if you are in a hedge fund which i am, i own them, they own apple, youre in mutual funds, you own apple. I got into amazon which you and i talked about friday, bought it at 19. 29, not looking good today. Out of the fangs, im okay with it theres other places in technology that you could be in 2019 and thats done well for me so far so when i look at apple, quality company, im sure it will do fine but i did what jim advises not to do, i traded it, successfully for the first time in a while hedge fund but i have to tell you, ubs did a piece, ubs evidence lab, we make jokes about that but we couldnt csi action. Exactly what i think of sentiment with only 19 bullish on apple, down from 30 . It does feel like that apple is the fang that people arent into at 16 1 2 times shares i dont like to run up ahead because that puts a lot of pressure on tim cook it goes back to positions we saw that in facebooks earnings in terms of the stock reaction afterwards. We call that in alphabets earnings out of favor, going to earnings bam with a great report and the stock popped and is holding on to gains for the most part right the danger has been just as joe has said and josh, when you see this runup, as jim says, you get this pop in to earnings. Can they justify it now then this is a breakout level basically, as soon as we got through the may 3rd high, which was 210. 23 Something Like that, when we got through that today, there will be some folks piling in and youre seeing that now based on the upside activity that people are buying upside calls here, but i would say for traders, not for holders, but for traders, this is one of those that, given the runup, you would probably want to take some off the table, as it pops well, but then you want to look at the details. True. Iphone are going to be weak asp is probably going to be weak we know that this is the reason why it trades where it does. Services is key. Yep and the deceleration, its not going to accelerate from last quarter we all have that modelled in but how much is does it decelerate and how much do they talk up the new Services Products that are coming, that have already been announced and we can remodel and see reacceleration into next year in services which carries double the margin. Steph, katie upperty thinks its going to accelerate tony says its 12 or 16. Ive been begging him to talk about life time value of this. If they talk about the service stream, because they have 98 customer satisfaction. If they put together, if luca, who is a good cfo, listen, guys, dont think about next quarter revenues build a longterm value revenue stream and were going to like it, if we can get more health care launch. They already talked about the news plus. They talked about apple music, apple card all of these are Services Building thats the momentum. So i think they really need to talk it up so that people will say okay, this Quarter Services whatever it grew at, 15 , 14 , but that has a chance to aks accelera accelerate. How about 16 . Tock goes to 25. 18 this morning, so my goodness will we hear anything about the 5g phones and whether or not the 5g will be across iphones offered in 2020 . Thats minchi quo, noted apple analyst in south korea said all three phones will be launched in 2020, will be 5g capable which could drive a huge cycle, be competitive with lower cost android phones you have can i live through the valley dont trade. Exactly i think individuals go through the valley it would be a september thats when they launch them and they can put a spin on the intel buy. They said listen, theyre excited about the pad and it matters. Intel is not a bunch of bozos. Theyre not. They worked a long time on this thing and did expect to win. Theres no love loss what do we hear about china you know, the notes im seeing are basically, this is here, iphone demand over macro will be not good thats why people say why its not rallying as it should. I look at it and say look, even i say own it, dont trade it this is a rough one. They have to do 17 to 18 service to maintain this, and i think that is going to be hard but they got to tell this life time value still working on it. Hey, guy to the talk about service. I hounded them on breakout of service. Fabulous. Maybe someday. Sony shares have risen nearly 13 so far this year but bullish options traders benting the run can continue doc has activity we have upside buying and its relatively short term weve got sony with upside calls throughout the morning, and they traded about 5,000 contracts, mel. So when you look at sony here, down ten cents on the day, and you see the move that these calls have made, about 5,000, half share elive constituenqueqt im in the october 57 calls. Probably in those for several months and theyve got earnings right around the corner here so they could have bought a shorter dated call but they wanted to buy it further out into the future. So that tells me that they anticipate the Earnings Call is part of the story. The rest of it is what sonys bringing out into the fall second one if i could, mel, take a look at what weve got going on in this one because Pen National Gaming up about 14 cents, this one is one that some of the smaller Gaming Companies have had a lot of love lately, whether its el dorado and others, they make some announcements of acquisitions or whatever it might be penn upside call activity, buying the august 20 calls here. They have earnings i believe either tonight or tomorrow, very soon, and yet theyre buying some that are further out in time so again, like this one, shorter hold, though probably about a week to ten days cal doing well. Vichy is connected with the el dorado lots of good domestically. Lots of good you have an update on the back of the mylan pfizer deal. Mylan the 24th last week we had big upside call buying in here theyve bought, bought, bought, and you had to be disciplined. Pete preaches that, mel, when hes on the five as well as this show, discipline dictates action, dda. This one you had to take profits because like i say, it popped 27 in the premarket it was through 24, look at where it is now, its 21, still a nice windfall for you. Youve got a 2. 58 gain in the stock and the options are up over 100 , but if you were trading early in the session, you were taking a lot more off the table. I cannot believe pfizer is the one thats down. They offloaded lyrica, this amazing drug going off patent, going to kill their earnings and suddenly its off. No one cares lyrica cant drag it down. I think pfizer is mylan because it has a deal with pfizer so heather breast gets to buy more time . The quarter wasnt good at pfizer it wasnt good relative toment ment some of te other Pharma CompaniesJohnson Johnson hands down you have to buy some things that have a little bit of hair on them hey, hey, hey sorry well thats why the uri, i get that a little bit. Johnson has some hair on it but guess what that thing is 80 billion a year. 3m looks like its a shaggy dog. Health care was good. Your dog looks like 3m. Health care finally broke out. Toss it all in there. Love canal. We have to take a break this american teenager just won 3 million in the fortnite world cup over the weekend how can you play the big business of becaming well give you the edge. The s p 500 sectors, real estate leading the way up 0. 5 . Consumer discretionary the bottom of the packow dn 1 Halftime Report is back right after this. Or its sign of intelligence . In crossing harsh terrain. Or breaking new ground . This is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedesbenz summer event, going on now. Lease the gla 250 suv for just 329 a month at the mercedesbenz summer event. Mercedesbenz. The best or nothing. I want it that way. I cant believe it. That karl brought his karaoke machine . Aint nothing but a heartache. No, i cant believe how easy it was to save hundreds of dollars on my Car Insurance with geico. I never wanna hear you say. No, kevin. No, kevin believe it geico could save you fifteen percent or more on Car Insurance. Nlt with kohl pam. Welcome back. Im bob pisani the biggest amount ever won by a Single Player at an Esports Event with revenues projected to hit over 1 billion this year, how can investors take advantage of the group team seymour Asset Management todd rosen blum of cfra joins me the gaming space is blowing up in anticipation of the esports is going to be huge. Is it . And is there a way to play thats using etfs . Theres an Investment Case for it and a handful of products out there. Espo is a vector etf that outperformed the Broader Market this year, up over 26 another product, gamer gamr which is underperforming you need to look at whats inside the portfolio you get companies that are clear plays on this, activision and blizzard and nvidia that exposure to esports and other segments thats the problem with the really tight niches here its tough to get a real pure play what do you have you have electronic arts, act e activision, ten cent not a lot. Ten cent is 30 of revenues seeing kager of 32 . They own 40 of epic games which is fortnite. Depending how deep in the weeds you want to go on this, bob, i think you really do have etfs that can take it further gamr been around three or four years thats a broad one interesting about the three etfs out there, more than half of them are outside the United States a lot of obscure Japanese Companies if you really want to get in on the weeds on some of this, not a lot of people know a lot about. I against the question is, is there going to be enough to justify a real industry . Thats the case youve got the newer product esports one, espo that has just 25, 26 holdings, so the gamer product has three times that theres a lot of differences inside the porter. Vanek is more concentrated. We have to go, tim, but the big players electronic arts, the other big player, 17 is lagging. Ea trading 25 times forward apex legends is their big new title coming out, a repeat, refresh and i think gaming is here esports are absolutely here and i think buying the long he were term players that arent priced for gross anymore. Thanks. Tim and todd appreciate you joining us for more etf edge dont go away. The live online show starts at 1 00 p. M. Eastern, etfedge. Cnbc. Com well be talking the pot etf proliferati proliferation, five investing with Artificial Intelligence and more thank you beyond meat is up 40 in the past month and hitting paypal and the recordbreaking Consumer Staples sector in the btzli. Halftime returns in 30 seconds. Time for trader blitz. Steph youre watching pmg been this is a home run stock and i sold it way too soon theyre seeing 4 to 5 organic growth the only problem is the multiple hard to pay 24 times for this. David taylor has done a remarkable job the momentum is extraordinary. It moved too much and its moving again paypal downgraded to a sell at guggenheim. Paypal calls i overstayed my welcome in this one, mel. Its been a great ride and wells and argus taking their targets up i thought that would be enough guggenheim slammed them today so it was 122 last week, its 112 now. I think wait until below 110 and reload bank of americas Brian Moynihan they have competing products they do i dont care which one it is but i do think there is, i think square is a better buy than paypal beyond me shares lower after the earnings after the bell, the stock surged nearly 800 from its ipo. Joe, i dont know. What do you make of this we talked about this back on july 19th and i said weve got to, i said dont sell, lets wait to hear for the Earnings Call this is an example of what jim is talking about, which is dont trade it, own it this is a social phenomena its been traded by the hfts on a regular basis. The range is 30 youre not in there trading this name if you believe in it as outrageous as the fundamentals might seem, take a small position and stay with it. Wow would you even take a small position in this up 800 from its ipo i can wait until tomorrow holy cow theyre going to blitz it. I think i said something this morning, pure heresy for a lot of people. Ethan the ceo is the tesla hes elon musk of food hes come up with a better Delivery System and i went to the company last monday, ate dinner with him, oh my god, the sausage was great. The taco was great the burger was great you have tocaramelize the stuff. Thats the key the problem with the stock is no one knows how to size it. You go out on the weekends, people arent asking me about microsoft or honeywell theyre asking me about beyond meat what do i do about beyond meat trade the options, mel. How expensive are the options . They are expensive. In june when the stock was 133, they were buying the 160 calls those were 13 in june, they were the january calls. Thats how big the premiums are, but think about that, not only how big a windfall it was but think that you have only 13 to lose if you buy that call rather than that big so i think ethan is a brilliant guy you were with him at dun din doughnuts. With David Hoffman from dinkdin Dunkin Donuts as well who is next theyll make steak. I got to tell you. Steak theyre going to make steak i dont know. Not impossible. Impossible is impossible because it has gmos. All right, speaking of food, lets talk chipotle hitting an alltime high after Goldman Sachs initiated the company with a buy rating of 1,000 price target, the highest on the street adding it to the conviction buy list, it is our call of the day here remember last week the ceo of chipotle bad mouthed beyond meat say its highly processed in order to drive with the principles of clean food, et cetera i dont know how can we get our head around the valuation for chipotle kate rogers with a fantastic report with all the ceos, done very well i think these are people who understand digitization. These are people who must have listened to mark benihoff. October 15th his trailblazer book comes out kevin johnson, 2 of the digital, these guys have gotten digitalization and why i like the goldman calls the guy who is least far along is niccol at chipotle big runway they also talked about this is one of the few sectors in the market that cannot be encroached by amazon. I thought that was interesting they got the benefits in terms of technology and digitization that jim was talking about, cost savings but not going to be displaced by amazon. Well face it, mel, if they hadnt had a couple of missteps with the food along the way, yes. But i mean its in some ways perhaps even similar to boeing they needed to get out in front of this better than they did at that time. To jims point niccol joined, totally transparent. Didnt bad mouth people. He said totally transparent. Sure did. Didnt bad mouth people, basically said weve got a brand new chipotle. The parallel that he had to go. Nailed it. This industry is in the sweet spot the goldman note, very good, talks about the impact of low gas prices, talks about the wage effect. Yes. Talks about third party promotion. Talks about the impact of uber eats talks about door dash and grub hub, how thats benefiting these companies. Clearly chipotle is out of the prize. Theres other names that are talked about, wing stop. Which i love. I think that company does well the one question with the industry is, is it still recession proof . And i think thats where you kind of have to ask the question because if third Party Promotions are working at one point do the consumers not want to may more than the 5 or 6 to not get that delivery. This is the tug of war. We fought it because we want people to come in and drink but we had to see to it. We had to bring in caviar, which is square, we had to surrender millennials will not get off the coach, plying whatever video game, watching netflix, having a beer, i hate them. Theyre hatable. Wow dennis mulenberg has to go and you hate millennials. Dennis its kind of like with trump and the emails, so to speak. Lets talk in a year on boeing. A year is fine. Well reconvene in a year, in the meantime thats the question our ask halftime segment is straight ahead im off to college. Im worried about my parents retirement. Dont worry. Voya helps them to and through retirement. Dealing with todays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. Carol in florida wants to know if blackstone is still a hole. I own it, im holding it. I thought that quarter was fabulous they are poised to see revenues acceleration to 20 next year. Margin opportunity Management Fees are going double digits great story. If it pulls back low 40s you add to it. Got this one so right youre so right. Thanks. Adam in north carolina, this ones for you, jim, twilio, buy, sell or hold i do believe this company has the best technology, whats behind lyft and airbnb buy. You were mentioning software before. Everybody in the software space, crowd strike, roku, everybody this morning, it was a very big rotation. So whoever it was that was pulling that trigger, had to be across several different big funds that were doing it they were liquidating a lot of those big holdings. Opportunity, keysight technologies, guide wire, software, gwre, and then of course microsoft forever. Interesting on wednesday when theyre all reporting. Blowout. The semis continue. Final trades straight ahead this is the couple who wanted to get away who used expedia to book the Vacation Rental that led to the ride which took them to the place where they discovered that sometimes a little down time can lift you right up. Flights, hotels, cars, activities, Vacation Rentals. Expedia. Everything you need to go. Expedia. [what about him . Lets do it. [ sniffing ] come on. This summer, add a new member to the family. Hurry into the mercedesbenz summer event today for exceptional offers. Lease the glc 300 suv for just 419 a month at the mercedesbenz summer event. Going on now. Welcome back jim cramer is here, has been here all hour. Thanks for being here. Thank you. What do you have for tonight . I have gold bugs. I am a gold bug. And then kevin conroy. Hes done this great deal and boom, people hate it i think thats wrong its hard to do the arbitrage. Exact science. A lot of people use it this man has made it a juggernaut company. Down 8 right now. People do not believe in this combination. I think the combination is terrific i think they make money. Its a little rich well talk it out. Youre also kicking off the summer on the streets tomorrow, that should be fun. That stock has come to a level where its no longer dangerous. Way too inflated, not by chip, but by the market that just said, listen denim is a tougher category how about that quarter fantastic. Perfect. Beautiful. Cant believe it wasnt up that big. I agree, its a buy. Final trade time, joe jp morgan full force, icbc. Steph l 3 harris. Qsr, like the restaurant brand. Our thanks again to jim cramer well see you tonight at 6 00 on mad money. The exchange begins right now. Welcome, everybody, heres whats ahead today the busiest week of earnings, the trade meeting in china, the jobs report and what that could mean, this could be the most market moving fed decision in years. All of that in the next five days, and were going to get you ready for the markets big week in minutes from now. Fortnite proving video games arent just fun anymore. Real competition for your battle in your eyeballs and yes, your money. I want my kids to start playing. The winners an