The nasdaq got spanked and slit 1. 6 but the average value 29 points in an it is passion of the upcoming rate cut, the first in ten years allow me to set the stage, on wednesday fed chief jay powell will give us the read on the economy and announce a quarter point rate cut to breathe now life into a business situation for many different industries. I know there will be sticklers that say with unemployment with the lowest level since the 1960s, it is ridiculous for the fed to think about cutting rates. Others like President Trump think a 25 basis cut isnt enough the president endlessly tweeted the Federal Reserve is way too tight monitory policy has been holding back the economy did it again today when your Interest Rates are too high, the currency gets stronger versus the rest of the world our rates are much higher so the dollar is very strong and makes the internationally Oriented Companies far less competitive and can hurt the Auto Industry and housing industry both of which are weak right now. Realizes that the last rate hike in december was a rate hike too far and shocked the confidence and caused a mini bear market in stocks and took six months to recover. So powell wants to cut rates and he has all the justification he needs. We know trumps tariffs have slowed the economy weve heard it on Conference Call after Conference Call after Conference Call they are complaining about the expansion. We spoke to the ceo of the largest Power Transmission company and told us about the slowdown in power consumption. Its real. Its not spongeble or political. Normally the fed is reluctant to cut so soon because nobody likes to admit when they made a mistake and isnt that what is happening . Powell can blame trump he doesnt have to take responsibility for the rate hike and makes it easier to do the right thing. Its not just the tariffs. Boeing may need to halt production of the 737 max. It could knock half a percentage off the growth thats how important boeing is there are tons of retailers, stocks traded at 1 less but there will be major, major layoffs as we get closer maybe they make it to the holiday season, maybe they dont. It will be bad for the economy because of the confidence shock but what about stocks . Does this rate cut mean for the stock market, for your portfolio . If you look at the were inumbert doesnt do much but look beyond the numbers and its a big deal. Business partners will be more gutsy once they know the fed is on their side. Thats how it does work. They will be emboldened by the possibility the strong dollar could cool down. Its been a major theme, like the dollar, the dollar, of course, the dollar it would be a huge win for exporters that translates into higher earnings. A quarter point rate cut will have a much larger impact on the economy because Money Managers have seen this movie before. They have what i call a playbook its a playbook for what to do when the fed eases you sell high Growth Stocks and they can thrive. The big earnings beat when the economy accelerates because it cuts the playbook could be wrong. Maybe the rate cut wont boost auto sells so you shouldnt buy industria industrials. Maybe it wont trigger more construction so avoid caterpillar or Union Pacific it doesnt matter if the playbook is wrong. Money managers know you dont fight the fed and tape, which means you dont go against the playbook that says buy every one of those stocks. What does it mean for you . Caterpillar reported a subpar quarter when myself thought the numbers would come in better or btf. It didnt work out that way and the stock got slammed pulling from 138 to 131 however cat is the kind of stock the playbook says you must buy with your eyes closed because of the rate cut as cat goes by the way so go the other industrialindustrials. Cat has more action than any stock ifollow. How about the super Growth Stocks getting pummeled again today something thats a common theme since service and paypal reported numbers wall street didnt like. I thought service delivered a good quarter we heard from the ceo last week on the show and he told a compelling story i went back over and thought i missed something i said okay, let me reread the transcript, let me reread no, it was great however the playbook is spoken and thats why the stock is down a quick 12. Paypal deserves to go down as the company cut guidance but the pin action from these two has been extreme, and its all thanks to the fed induced rotation dont believe when people say the stocks must mean stocks going down must mean the companies are slowing. Its not its the rotation speaking so what should you do about this rotation honestly, i want you to be aware of what is going on, hence what ive been talking about. I think its a mistake for you to try to trade this kind of rotation if youre a home gamer. Ill go further. The stocks now that are going down are the highest Quality Companies in this entire market. Cloud case, sales force, workday, vm ware, adobe. Excellent stocks but rarely give any viable pull back when you see a fed induced rotation, it means you can finally buy the cloud kings at a discount but remember, there is no hurry. We have to let the whole rate cut drama play out there are always late to the party Fund Managers that will figure out what i just told you after the fed takes action on wednesday. Maybe thats when you make your move, and the cyclic look cheap. There is not enough stock but you have to deal with the endless trade talks. If the negotiation pulls thanks will stop the rally in the tracks regardless of the fed but the turbo charge growth kings, come on, they will do fine no matter what because they are riding the greate eses esest se trend out there. You need to accept this rotation is happening and driving these stocks the feds rate cut will push money into the industrials but your job is to find high quality stocks and stick with them for as long as the underlying business stays strong so when this rotation gives you a bupull back, thats a longterm biuyin opportunity. You have to start some time. As it goes on, this rotation will be the best time to buy the stocks that we like so much in mad money. Lets go to miles in virginia, miles . Caller hey, cramer, big, big fan of yours and the show. Thank you. Caller quick shoutout to my Investor Team in virginia. My question is about Enterprise Products partners. They have been up since announcing the Dividend Increase last month but i was wondering your thoughts for the long haul. Their ex dividend instant moving, should i get in now, wait until after earnings . I think the quarter will be excellent. Im relying on russia and brazil here is the deal, this is the only one with any real growth and thats why its up 20 and dis tribute and keep going higher its the company doing the most with the natural gas out there all the other companies should be watching what epd does because they are the best at it. I like the call. Ashwin in california, ashwin caller hey, jim, thank you for taking my call. Of course. My question is on planet fitness, do you have a partnership with kohls, also . I think here is the story with planet fitness. A lot of people feel the growth has run out so they are going to places like khols. We like what hes saying as far as im concerned, this decline is a buying opportunity, planet fitness. All right. The financial world and the stock world, they are very different at times but no matter what, you never fight the fed and you do not fight the tape. On mad money tonight a red hot stock up more than 80 this year earlier today tumbled announcing a deal and the stock recovered should you be concerned about the initial reaction or later reaction weve long been fans. The stocks of amazon and google telling different stories . You know what im going to do . Go off the charts and find out what is happening with tech. Time to go for the gold, ive got an exclusive with the ceo, long my favorite growth bowl stick with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter have a question, tweet cramer. Send jiman email to madmoney cnbc. Com or call us at 1800743cnbc. Miss something head to madmoney. Cnbc. Com. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. What in the world is going on with cramer exact sciences . A Company Behind collar guard is a way to scene for one of the most terrible cancers, colon cancer using a stool sample. Up 80 for the year had a sea saw day down 16 and making up for loss s andes and a fantastic rally. Why did they get pancaked . The Company Posted really terrific numbers they lost 30 cents and wall street thought 56 cents. The cells were better than expected over 94 . That the a fabulous acceleration ver u versus the Previous Year color guard covers most of it. Exact science dramatically raises the far cost. They have been going for 725 and 740 million and now 800 to 810 million. Thats huge. It was the other big news story, exact science is buying 2. 8 billion in cash in stock a company that does a different Cancer Screening they use dna sequencing, essential for personalized met sin. They arent paying a big premium, many seem skeptical i think the sellers made a big mistake and Late Afternoon buyers were right. Lets dig deeper with the bankable chairman and ceo of exact sciences and learn more about the deal and what it means for the companys future yes, welcome back to mad money. Hi, jim, great to be here thank you for having us on we had a great day today announcing this tremendous news and its really two pieces of news as you noted. We had a tremendous quarter of growth are cologuard they did a great job educating and we screen 410,000 people with cologuard generating 200 million in revenue for the quarter. We couldnt be happier about that and the combination are Genomic Health we feel will pay off. Happy to talk about it today. Sure. I think there is a great, you have a fabulous deck youve always been incredibly transparent. Page nine talks about the market as indication, i mean, you have got a gigantic diagnostic reason going now. It really invited and make a direct impact how patients are treated. The Breast Cancer test is a Ground Breaking test which is the standard of care for telling women with early stage Breast Cancer whether they will benefit from chemotherapy or not and a Prostate Cancer test and colon cancer test that helps to guide the right therapy. There are multiple avenues of growth plus they have an incredible commercial organization outside the u. S. And that Global Organization is something thats going to be incredibly helpful as these two great, Strong Companies come together. Now i hope you if you can, talk about all of the Cancer Companies that are dealing with cancer, that i know. The portfolio is always boutiq e boutique its about targeted cancer isnt that Genomic Health sweet spot it is if you look at the new test they launched in the prostitute cancer space to help guide therapy to a certain class of patients with prostitute cancer, Genomic Health has done a tremendous job not only identifying the right markers to test, they have done an amazing job of developing the evidence that convinces physicians, these are the right tests to order on the right patients to get those tests into guidelines and to get broad Insurance Coverage i just cant speak highly enough for the ceo of Genomic Health and the entire team there and our team cant wait to get to work. Lets talk about the prospect there is a case score. There is the psa then there is the obviously there is the 600 million in diagnostics come in . There are two different tests. One is if youre Prostate Cancer and the question is it aggressive, is it not likely to proceed. There is an important decision that needs to be made. Do you go to surgery or not and do watchful waiting. Now there is a test that Genomic Health has that helps guide physicians and patients in that really important decision, what further treatment is required and a separate test that for a certain class of more advanced Prostate Cancers, whether they should go on or not go on a particular advance therapy not only saving the patient but also saving the Health Care System money. Well, i mean, ive got to tell you, when i hear about people and hear all these democrats talking about the Health Care System and how it cost too much, i dont understand why they dont sit down with you. What youre doing is saving the system a fortune making money because you come in underneath but does anyone politically ever call you and say thank you or i see youre keeping the cost down i can say one thing, its fun coming into work every day because people are not throwing darts at you people across the political spectrum are doing everything they can to help address what is the number two cancer killer, or im sorry, the number two killer in the u. S. In the Health System is cancer. And it seems to be an area of galvanizing support across the spectrum we cant wait to bring some of the pipeline tests that we have in development through our partnership with the mayo clinic across the top 15 cancers and introduce them to this tremendous commercial organization at Genomic Health the oncology team, the global team its really exciting, jim. What happened do you think today . It came out at 3 30 saying it was a good m ccombination. Alone, i want the deal you know i think the deal is great. I mean, that quarter that you announced this morning was the biggest blowout of the year. Well, thanks, jim the team did an amazing job and we as you know, we have never been focused on one quarter. Were trying to get 86 million americans between the age of 50 and 85 screened for colon cancer and the truth is, at least onethird of them dont get screened so were about 6 penetrated into this large market as you know a year ago when i was on the show, we were 3 . Amazing. Adopted and the team is doing remarkable work to get more people screened and the team at pfizer that is our copromotion partner, we cant thank them enough for their efforts. Well, i got to were going to lever this strength, too. Well, no, i mean, look, this a great deal i didnt understand why the stock was down at all. It should have been up kevin conray exact sciences chair. Thank you so much. Jim, thank you. This Company Continues to clobber its targets and i love this acquisition its fantastic as kevin conroy doing such a good job at exact sciences stick with cramer. What the heck is happening with tech . On the one hand the nasdaq surged to an alltime high last week and many tech stocks including alphabet exploded higher but on the other hand, there is big breakdowns like the sell off in amazon and the cloud king i talked about at the top of the show. We wanted to decipher this action tonight were going off the charts and want to be unemotional so were using caroline to help us. The brilliant technician that runs the queen. Com website and a colleague of real money. Com. Her track record is phenomenal maybe she can shed light on it lets start with the daily chart of amazon, which reported, i guess you could call it an imperfect quarter, a revenue beat some felt the weaker earnings were good things to come they blame the weakness on building out oneday shipping and it was soft. Now given the strength that microsofts azure and google cloud, maybe the competition is getting fierce, i dont know what can the chart tell us the larger pattern here is still bullish pounding to mu isish po prices down the road after the pull back she thinks youre getting a rare buying opportunity in amazon. I couldnt agree more. They think it will terminate somewhere above amazons june lows so we dont have to worry about the takedown here. She wouldnt be surprised if the pain stops this week remember methodology she measures past swings and runs them through the numbers, a key series of numbers. Hes the medieval god father they repeat over and over and over again and i want you to think snell, shells, pine cones, flowers. For some reason they tend to show up in the charts of stocks. By doing this he finds important levels where stock is more likely to change the trajectory when you see a cluster of the relationships in the same area when it comes to amazon e s, sh knows its support levels in the 1880s and 1980s. You see the clusters remember, this is where it bottomed today if the share price can hold above this first zone, they believe amazon could rebound to 20. 73 in short order. If the stock falls below, this are two key levels 1853 and 1866. I like a lot of support. She says the stocks longterm up trend is in tact and i agree. Based on prior swings, she could see amazon turning around and climbing to 2,145 or 2,252 or even 2500 if everything goes right. At the moment the stock is holding above the longterm 200day moving average and boy, is that positive it held those levels even though it was hideous last week that said before amazon can make its way to the higher price targets, she wants to see the fiveday moving average cross above its 13day, the blue and red on the same daily chart. Thats not happened. That crossover is the by trigger because it tells you when a stock has gotten its groove back thats what were looking at could happen soon. If amazon breaks down below the last floor of support 1810, shes wrong and has to throw in the towel. I think shes going to be right. Now on the very same day that amazon broke down, alphabet reported a real smoking quarter. I loved it the stock caught fire so went from alphabets taylor chart, not as pretty as amazon. They remain in a bullish posture but the stock may have gotten ahead of itself. There is a lot to like here. They made a series of higher highs, okay . And its trending above all of the key moving average they are watching for pull backs to get a better entry point. We got the start of one today. Ideally, she would like to see more weakness. Unbelievable move. I totally get that people dont like to come in on top of that move right now, trading at 1, 2, 4, 1. Best case scenario, the stock holds above 1,052 and rebounds her first meaningful price target falls in at 1,370 thats up 10 . If the stock can clear that hurdle, she wouldnt be surprised to see it travel to 1,463 or 1,485 if you believe in the chart, alphabet can run another 10 to 20 . Again, the queen wants you to wait for a pull back she thinks it will be brief and get back on track but confident shell get a bet earn tter entr. I went back overall her calls. Shes been red hot remember, my travel trust has both shes been so good that its worth it to go with her. Finally, lets consider the broader nasdaq 100 which is tech heavy index that contains the 100 largest nonfinancial companies. When you look at the weekly chart, it paints a positive picture. Nasdaq 100 and brodin thinks its headed higher she can see it going to the 80, 100s and clears out. You hear about all these 8417 here what hear what i keep saying . These levels can blow through. Maybe 8816 shes talking again and anywhere between 10 and 20 return. When brodin looks at this chart, shes less concerned about price and more concerned about time. As the method lets her identify key prices, but key moments when a stock or index is likely to change trajectory and that means inflection with the nasdaq 100, she sees a series of timing cycles that come due in august if you take a look, were almost there. While they dont always trigger a reverse, she sees a bunch hitting between late august and mid september. All right, that makes it a little more cautious the nasdaq 100 will sell off, thats a good chance when. Symmetry, the last big run in the nasdaq 100 lasted 34 weeks were in 30 weeks of an up trend and late august will be 34 weeks. Why is that a problem . For whatever reason when you look at the charts you see a lot of moving similar in duration. That doesnt mean this rally has an Expiration Date but when you throw in the time cycles coming due at the same time, you can understand why the queen wants to proceed with a little caution here what would make this go from a yellow light to red light . Brodin is watching the fiveday, 13day moving average, shes watching like a hawk if the fiveday cost is below the 13day shell stop being bullish. She thinks the nasdaq 100 has more room to run but may pay to be paranoid, here is the bottom line they tell an encouraging story alson is getting shelled and thinks it can bottom to make a fabulous comeback. I agree. Alphabet is going strong and there is a lot more upside for the broader tech sector, she likes the nasdaq 100 for now but in four weeks time, you may want to exercise more caution mike in new york, mike caller big booyah professor cramer from staten island, new york. Love it good to have you on the show whats up . Caller thank you for everything you and your team does for the investors. Thats why we do it it gets hard but thats why we do it. Caller i want to talk about etsy i think they are a Solid Company with a solid cash plflow recently the stock hit a 52week high should i buy or hold etsy is a good stock and great longterm situation. I dont want to be knit picking. You know what i say, buy some now and if it comes in, buy some later. This is a good level to get started. I agree. Paul in virginia, paul call j caller jim, how are you doing, booyah whats up caller my son and i just started buying stocks recently and wish i started a long time ago. Never too late. Caller we were looking at some crowd strike. My son told me i should have bought that a few weeks ago and i wish i would have but anyway, i bought some chairs and it was doing good and kind of took a dive so i bought more. Im hoping im doing the right thing. You want to leave room. Dont get aggressive here. Were in a nasdaq sell off that includes that z scale or down, Cramer Family fav down these are all traded together. Got to leave some room, particularly with octa. Okay, the charge tells an encouraging story with tech. Brodin likes amazon and alphabet for now. Much more mad money ahead. Im sitting down with the ceo to find it and im on the grind to help your portfolio and all your calls of rapid fire in tonights edition of the lightning round so stay with cramer. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. When i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. You know me, im always telling you to have gold exposure if insurance against economic turmoil or inflation. In 2019 gold caught fire with the precious medal trading in the highest in six years thats not a great sign for the stock market and may suggest many have one foot out the door. Take a look at aem, which operates in canada, mexico and in finland with mines in the u. S. And sweden. After bottoming at 32 and change, they have soared higher climbing to 54 and change is up today. Thats one of the highest levels in three years when the Company Reported last week, it delivered a top and bottom line beat management is aiming for record production this year so can the stock keep climbing lets check in with sean, vice chairman and ceo of aem. Welcome back to mad money. Im excited to see you because a couple years agro you came on an you said gold was much lower and you said thats fine thats all well and good but it wont last youre the only one that said it and you said gold would be back as the reserve that people want. How did you know and take a victory lap because youre the only one i knew was talking about it. We get out and talk to investors. We have a broad range of investors in canada and saw the big, smart money starting to do homework earlier and taking our queue from that. We learned over time that this goes in cycles and it starts from pessism and higher lows grinding in the face of record equity markets and here we are just getting started. Now, people need to know that its i know this will sound oxy moron but its not easy to find gold. Thats the beauty if gold goes up, the industry has a hard time making a supply response because the lead times to build mines are extra long now, but there hasnt been major discoveries industry wide. The pipeline is not full for new deposi deposits. For you, youve got some really this mine, 3. 8. Youve got some gigantic prospects just not kicking in with your price of gold for your actual what you pull it out, really much much below where the price of gold is now. Because that period between 2012 and 2015 when most Gold Companies stop doing business, we kept doing business we were investing in juniors, buying mines, expanding our drill programs we made a heavy commitment to it and as you mentioned, we opened. So our Production Profile continues to grow. This just open in may thats not even the numbers yet, right . Its in may we hit commercial production midway we only have six weeks well wrap up that and open up in august and hit commercial protection probably late september, that will impact this year well set record Gold Production but then we can continue to grow but grow at a steady pace. Its about managing risk because youre dealing with Nature Nature can throw you a curveball. You always pamanage risk how others dont every place you have mines i dont living at. I mean that seriously. You have no political risk. Thats bedesiy design he said we dont go where they dont wear over coats in the winter mining is hard enough. When you start layering on other risks, it gets much more difficult. It seems like you embraced technology you talk about autonomous mining what is that the way of the future you get vehicles and equipment running on their own and that makes the mine safer and more efficient and keeps the cost down were mining right now in montreal were down below 3 kilometers. As we go deeper, some of our best drill holes are below three kilometers that has been drilling since 1988 and make it more productive. Thats important. I know cater pillar is telling me about that and i didnt know whether the actual whether its test pilot or somebody is using it. Were testing it now but what we do is run those mobile equipments remotely from the surface now and between the shift change where were down without that equipment running for an hour, we can keep that equipment moving much more productive. One of the reasons people always say to me, jim, you like these stocks and youre a great stock. There is outages that occur and nobody is ready for them or turns out that the orr isnt as good i know at various times you had to ever a mine down for 60, 70days its never going to hurt your quarter. Thats the key. You run it like a portfolio and you ensure you set expectations so you can deliver and as we said, youre dealing with nature the mine you refer to, we closed it but we didnt give up. That mine were mining 1. 6 grams of gold, one of the lowest grade under ground mines in the world and making good profit that might have a record quarter. We reopened of those issues but its about your technical skill and understanding risks but thinking long term its a longterm business. You have to make the investments when gold is quiet. On wednesday the fed is going to pronounce a cut, i believe and one of the reasons why j. Powell will do that is because inflation running below the feds target is it not uncharacteristic to have infligs below a target and gold soaring here . Well, i think yes, it is but i think what we see now is we see negative real Interest Rates. We see a substantial amount of money thats paying a negative return and what were hearing in the last few weeks from our connections in europe, the gold funds are getting inflows. It starts there and they understand gold and understand risks and were in a period now where gold blossoms. When you have low real Interest Rates and negative gold does well and then the inability of the industry to respond to a higher gold price is i think the key to get it going forward. We also have a situation now where weve been grinding for six years. Weve built the base its broke through that technical resistance at 1360, its starting from a higher base it will hit the alltime highs of 1900 to 2,000 because were starting from a higher base than we did back in the late 90s. Dead right on this. A lot of people doubted you when you came on, not me. Gold should be part of everybodys portfolio. The growth gold mine come pap knee, mad money is back after this tell him were flexible. Dont worry. My dutch is ok. Just ok . in dutch tell him we need this merger. in dutch its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. More for your thing. Thats our thing. They use stamps. Com all the services of the post office only cheaper get a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again. It is time for the lightning for the lightning round. Buy, buy, sell, sell, the lightning round is over. Are you ready ski daddy . Time for the lightning round start with larry in virginia, larry . Caller booyah, jim. Booyah. Caller first time caller, longtime listener your thoughts on new mont. No. Leon in new mexico. Caller big booyah, everybody call me the wall street trap. I love what you doing on here. My question is about dollar tree with dollar tree, with Jp Morgan Chase and a lot of analyst, we may have a downturn. I want the know do you think dollar tree is good . No, buy some dollar tree and remake it my own Family Dollar into a dollar tree at last the other dollar tree i had to go to was way out of my way. Joe in new jersey. Caller hl lello, cramer. Joe. Caller you recommended Valley National bank should i hold it or let it go . Valley has a great footprint, the problem is the fed i think this thing at 11 00, a 4 yield. Gary in florida. Gary. Caller booyah, jim. Booyah, gary caller im retired living in florida, jim and my wife loves a good dividend. Were looking at and downside stock and the acre zquisition. It has no growth. Sorry, lets go to mark in pennsylvania, mark caller hey, jim, mark from pittsburgh p. A. , booyah. Booyah. Caller new investor. What do you think about six . It has descent growth it will come back and stall for a bit. Im willing to bring out the Terrible Towel to say yes to six. Okay, lets go to john caller thanks for taking my call my question is ticker dxc. That does not have growth thats what im looking for. If youre going to be there, i suggest to swap out of that. And that, ladies and gentlemen is the conclusion of the lightning round. Announcer the lightning round is sponsored by t. D. Ameritrade eet guy. 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 oh, wow. You two are going to have such a great trip. Yeah, have fun thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. How does the stock of a gigantic 120 billion company like starbucks manage to rally nearly 9 in a single session like on friday you only get that movement when there is a take sdwroeover starbucks reported spectacular numbers. How did they do it to get your head around this story, we need to go back to the quarter starbucks posted 12 months ago the one they just lapped a year ago the company gave you truly not so hot numbers it grew by 1 and china was down an astounding 2 it was enough to make you feel this once great companys best days were indeed behind them at the time i had just done a shoot at a small privately held coffee shop chain with the founder and ceo nicolas stone. We shot the segment through brandnew gorgeous story, come memb common ration of the fifth year and talked about the Beer Industry or old time brewers in decline eclipsed by smaller, faster growing craft breweries and coffee shop spaces, starbucks versus blue stone. The interview was a high five chest bumping affair and yes, indeed a funeral for starbucks but man, starbucks did not get the memo at the exact same time that the coffee was supposed to be dead and buried, the rookie ceo was making moves under growth at scale that would ultimately allow him to deliver the breathtaking numbers we saw last week first and foremost, johnson was his man. You cant envy anyone on the heels. Its a revered figure. Who know how they would respond to a quiet lowkey almost anonymous especially one that came in from tech. From telco tech. The habs been they wrote themselves. Johnson had a few cards up his sleeve he off loaded the consumer package to necessastle 7. 15 bin for the most aggressive starbucks reported and johnson unleashed that buy back on the back stock was so heavy i worried about the impact but johnson didnt care because he was hatching a come back fueled by technology and convenience and thats why starbucks put in a ceo from june piper of all plac k. G. Recognized if he can improve digital ordering and solve the problem, if he could make delivery happen, he could then orchestrate a magnificent turn around regardless of what the competition was up to. Oh, and it didnt hurt starbucks rolled out terrific products like the specialized coffees and yes, nitro, which is a millennial favorite. I know many doubtedson at tjoh the time and explained that the real issues had to do with making the stores more convenient and hospitable. They had a yogi bear problem like nobody goes there anymore, its too crowded they rolled out technology making it easier to buy coffee the result, longer lines and starbucks. The company delivered the same sales growth and two of the points came from it and that addition of the nitro iced coffee did reignite the sleepy afternoon day part thats big money and burned more traffic. Blue stone, look, i think there is more than fruit for the blue stones of the world and starbucks and everyone else in the coffee business. The starbucks just needed Better Technology to orchestrate a fantastic global same store sells acceleration from 1 to 6 in a single year starbucks brought in a tech guy, ceo and hes delivered and you know what . After this move with Kevin Johnson at the helm, i think the stock has more room to run but got downgraded by a couple firms today after it settles down, i would take the other side of those sellers. Stick with cramer. Or trips to mars. 4. 95. 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The light beer youve been waiting for has arrived. Corona premier. All right. Beyond me there is a secondary its about time. Let it come in it doesnt need to hurry up. I like to say there is always a market somewhere, i promise to find it for you here on mad money. Im jim cramer and i will see im jim cramer and i will see you tomorrow. Narrator in this episode of american greed. Fugitive Jason Derek Brown is a mormon missionary turned party king. From ski trips on the boat, to nights out at the bars, to motorcycling and atving in the desert, he wanted to be the life of the party. Narrator jasons playboy life is bankrolled by a series of scams. But when money gets tight, he plots his most elaborate scheme yet. When people are in desperate situations, they do desperate things. [ gunshots ] he was down that alley, on his bicycle, and long gone