Transcripts For CNBC Mad Money 20240714

Saw on friday, you got to remember that this president doesnt want stocks to go down he wants stocks to go higher and thats how you get a day like today where the dow gained 270 points and s p claimed and the nasdaq pole vaulted to 1. 23 trump knew things looked bad after fridays sell off. He decided to Say Something positive and turned things around did he call them did they call him there was a call people, thats beside the point. On friday the president took a harsh stance talking about boosting tariffs and demanding American Companies leave china immediately. He says the chinese called him willing to negotiate that was enough to give the market lift even though were getting conflicting reports about what happened. The peoples republic has officially denied anyone called trump. On the other hand, trump got two calls because the chinese are desperate and knows he has the upper hand who is telling the truth i got to tell you, i was amazed how quickly most of the media rushed to decide that the Chinese Communist party is more credible than the white house. Dont be wrong i recognize the president likes to engage inhyperbole, not lik the government has any reputation for honesty more importantly, we dont care. We dont care who did what we care what they are saying publicly trump has a willingness to deal and chinas chief negotiator says hes willing to resolve things through cooperation remember, this trade war is much worse for china than it is for us and if you dont believe that, youre just not willing to accept facts they are being hurt by the tariffs and they need to maybe they just want the trade war to calm down while they try to adjust the violent protests in hong kong and the loss of face there although the media never mentions that. But here is what really matters to your portfolio because this is mad money. President trump views the stock market and market will go down time of time so the stocks can go back up thats why its almost always a mistake to sell into the president ial tweet and do sell off like friday. Want to take something off the table now that the market is bouncing back, hey, be my guest. The important thing is that you got to filter out the noise to make a clear assessment of what is going on here its highly unlikely just by more and more information and food stuff and youre the Chinese Government to cut out the fair which would amount to how and wants American Companies and wont change and getting negotiation and more time to leave. That understand that it takes time and the upper hand, and let him wave and he doesnt care for the rest of the world. Maybe an exaggeration when trump sa says, second of all the president is willing to tweet and risk of decline and saying something positive how long beating the chinese and pushing the stock market higher. If the number market was the number one priority, we wouldnt have a trade market at all while you can count on trump to soften the blow, hell go back to the rhetoric. I dont blame him. His crackdown on chinas unfair trade practices was a Long Time Coming third, it stays in china and stocks will get lower valuations in the stock market as long as the trade war goes on. If your business depends on china for sales or supplies, youre going to pay a price here and the white house doesnt care if those stocks go down. The white house actually wants to see that. The president accepts some company wills simpies will movem American Companies need to be careful they arent buying chinese goods routed through vietnam. He preferred indonesia or vietnam. When he orders American Companies to lead china, the strategy is the stock market will do his heavy lifting in terms of punishing anyone that doesnt listen maybe you think thats too sophisticated for the white house. Whether its part of the plan or not, its absolutely happening finally, this is touch the industrial economy is getting hurt with tariffs and measured by lumber, auto, sales, if you have a lot of exposure to the industrials, you need to do swapping, sell something and move into something less cyclical i recommend moving into nice, consistent companies with good Balance Sheets and high dividends. Verizon with the 4. 2 yield but not att with the procarious 6 yield. I want you to review it and there is gold. We like barick if you keep your money in an index fund it can leave you bruised, pain, because its too hard to swap out and swap back in at the right moment we dont play that game. Raise your cash position to 10 of your portfolio. This is going to be a long slot. You need to be prepare for the more pain and be able to say its painful bottom line, whether or not china wants to make a deal, President Trump believes the longer he holds out the better we havent seen the last of the brutal sell offs so get used to them and next time, remember there is almost a bounce after the worse of the carnage because he wants one lets go to jordan in rohode isla island, jordan. Caller booyah jim from a 28yearold boot strapping entrepreneur from the smallest state of the union. I love that i love that youre calling 28yearold, see only 75yearold people are interested in stocks okay [ laughter ] well, my question is on the company mcdermont international. They have another call coming up revenues are descent so good volume activity. Some attractive float there. There is a few releases on new contracts they want and estimates all over the place on their price. I wanted to ask you, do you see the potential yity with these issues of global trade and energy to give us a safe haven to hedge against the commotion going on i do not. I think this is a go away industry i dont want to be there i have nothing positive to say about the group. Ken in new jersey, ken caller hey, jim. My question is about ibm i bought it at 143 and down 10 since acquiring it two questions, is this stock safe from the trade war, and how safe is that 5 yield now . I think 5 yield is incredibly safe. I dont think that there is china exposure there is no doubt about that but the red hat deal made it worthbeing in. I see more pain simply because people hate the stock, but there is really no reason to decembsp. First, President Trump wants stocks to go higher be more volatile until something shakes out whatever that may be reduce your exposurexposure are consumers still spending on their venti coffees . The ones with skrim like i orde . Were not talking about the trade war, were talking about the great sandwich that made it to 2020. Looking for ways to profit off of chicken sandwich mania ruffling feathers. How a 7. 6 billion deal is transforming Animal Health stay with cramer announcer dont miss a second of mad money. Foll follow madtweets, send jim an email to mad mmoney. Cnbc. Com or give us call at 1800743c nrks brks krrbc1800743cnbc miss something head to mad mmoney. Cnbc. Coadmonm so. How are you feeling . On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Contrary to what you heard, you can teach an old dog new tricks stuck in the 50s in 2017 longtime Ceo Howard Schultz steps down and Kevin Johnson takes his place. A lot of people were confused about why a chain of coffee shops would bring in someone from silicon valley. It took johnson a little while to turn things around but nobody is confused more Better Technology and better drinks so starbucks solved the problem. Able to move the lines faster and growing like china and seem to be doing fine in spite of the trade war. The red hot cold brew is crushing it. The latest quoter was spectacular with 6 same stores growth in response to 99 in a day since its pulled back to 96 i think its a bargain do not take it from me lets check in with Kevin Johnson. Mastermind this incredible turn around and had a better sense where his company is headed. Welcome back to mad money. Tell us magnificent turn around, how did you do it . A lot of this was focussing on the right things and executing with discipline, specifically we focused on experience in stores, bev rave i beverage invasion and expanding to a Digital Customer relationship. You clearly believed in yourself because you told me in the 50s, that was it. You would take the 7 billion and stand there and buy stock and you bought and bought. We did the global coffee line with nestle and part of that, they paid a 7. 2 billion for the licensing rights to sell starbucks at cpg and Food Services we took the 5 billion after tax from that 7. 2 billion and did buy back stock weve been aggressively buying back stock since last year as low as 50 a share. It was great moving you have said over and over again youre going to grow at scale mobile, order and pay, delivery, these were part of your strategy and i think they are working. Well, as i said last quarter, were firing on all cylinders. Were looking at the business in the u. S. And china we posted a 7 comp globally you look at the Global Coffee Alliance with nestle we expanded into 16 new markets and so, you know, the company is on a path to accelerate the pace of invasion in ways that we believe relevant to our customers and inspiring to our partners and meaningful to our business. This is actually happening in china, too there are a lot of companies confused about the mission in china. Youre not those numbers demonstrate it. We celebrate the 20th anniversary and 50,000 starbucks partners in china and privilege for me to be with them and share that experience to be with them. I never tell my kids do, phenomenal you told me you got to get the day part in the afternoon. Move cold brew from a hot coffee place. Well, jim, it all started with cold brew, which is a form of coffee that brews for 24 hours in cold water and as a result, its a much more creamy caram caramel test, the combination the nitro cold brew unlocked the day part over half of our beverages are cold. Millennials i spoke to said i was going craft, whatever. Millennials, what happened this took over . Well, i think clearly we identified, you know, early in the cycle that this was a flavor profile, a shift to cold would happen we amplified our invasion around cold beverages and as a result, we began to see that that was resinating with all customers, especially millennials we started to put nitro in all of our stores and by the end of the next month and end of september were going to be in all Company Operated stores with thi nitro. You have a new drink coming out tomorrow we have a new drink tomorrow and we have a great starbucks barista here a Pumpkin Cream Cold brew. This is new for me because im the first to do the pumpkin when it comes to october this will be youre moving it up a little. This is it. Pumpkin cream cold brew. That is so good wow. We got to talk about something you we got credit to howard business round table last week discovered something two weeks since you started, which is to recognize there are more people than just shareholders and look what its done for you you think the people just saw the success of some Companies Like you and realized they better get on the case i think one of the most special things about starbucks is we have a mission and purpose that is grounded in humanity and a purpose that goes far beyond the pursuit of profit and i give Howard Schultz and all the leaders that came before me the credit in the world for this they operated the company this way from day one and that means were going to invest and take care of our partners with health care, college achievement, you know veterans are probably the best. We succeeded the 25,000, the goal of hiring 25,000 veterans or military spouses. We exceeded that goal three years early and were on a run rate of hiring 5,000 veterans a year so all of those things, you know, add up to what were doing to really drive a purpose that goes beyond the pursuit of profit. We do know the lines were too long mine is still too long between 7 30 and 8 00 but thats okay. Its small the neotion of technology is necessary to get to scale, played into your strong suit so what did you learn at juniper that helped you at starbucks certainly 32 years in the tech industry, you know, 16 years at microsoft and juniper, two things number one modern day retailers have to create an experience in the store and then they have to extend it with a Digital Customer relationship and at starbucks when i joined the board over a decade ago, we started on that journey and today look in the u. S. , we have over 17 million active loyalty members that use the horribmobip 42 of our tinder is payment on the mobile device. The importance of the Customer Connection and most recently, weve been using technology to automate administrative tasks in our stores that free up to focus on the customer, and, you know, simple things like Inventory Management some of the labor scheduling and scheduling of their shifts is all automated now. Thats freeing up time Partner Engagement is up and Customer Connection scores are at an alltime high. Talk to me about bright loop. Its important because of who is running it and amazing for you to realize this was the white board that howard told me years ago could happen. Well, you know, weve worked for a decade building this what we call the digital fly wheel, the ability to connect with customers, personalize offers to them and weve done that in our Company Operated stores mainly in the u. S. , canada, japan and the u. K. But we have license partners around the world that run Different Technology stacks, different point of Sales Systems and we want them to have access to the digital fly wheel we actually want all food and beverage merchants in the industry to have access. We licensed the software to bright loom with adam at the helm and they are creating a company thats going to focus on providing commercial cloudbased services to all food and beverage merchants so they can enjoy the benefits. Having being in the restaurant turn business now, thats one i want on stock you do have engrained in china relationship, alibaba, everyone is so negative youve seen it all is that really how it has to play out well, first of all, i would say the same way we built this great Global Coffee Alliance with nestle, we have a strategy with alibaba great partners to store bucks and were very optimistic about the strategy value they bring and how we Work Together that said, you have to recognize its better for all nations and merchants to have a good global trade environment and i believe well get there. I want that the last thing people keep talking about that well be in a global country that would indicate that or can you im not sure what this cost but it will be incredibly popular and thats a good sign were not going into recession. Well, jim, right now our Customer Connection scores are at an alltime high in the u. S. And thats a function of two things thats a function how well our starbucks partners are serving customers but also a little bit of the attitude consumers have as they are engaging with starbucks. That said, we have not seen signs of in the u. S. Of anything related to a slowdown but we do know these things go in cycles. Were firing on all cylinders and consumers seem to be doing well. Maybe there is a guy at walmart, maybe someone at target and you in terms of people who know and have the pulse of america. I congratulate you for an incredible performance for shareholders and stake holders people should go out and drink those because its good. Thank you to Kevin Johnson look at this run kevin engineered but tell you its the people in the green apron that deserve the credit. Mad money is back after the break. 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. Forget the trade war, 2019 not being confused with australias war of nike which was won by the english for those of beat on twitter, bring it on. The chicken sandwich war is a vicious dual to the death between chickfilla, the defending champion and cramer fav popeyes, i used to call popeyes but i learned the fabulous Fried Chicken chain that rolled out the sandwich, which is impossible to get because its so hot. The new sandwich is a viral sensation fueled by the savvy use of social media. You got the popeyes and chickfilla accounts tweeting at each other, which is holy cow thanks is good marketing even if its freaky when brands pretend to be people still, you can see why this popeyes sandwich is caught on. This thing, i mean, look at this thing. I mean, im talking about glorious but were not here to conduct a blind taste test or figure out who has the better chicken sandwich this is mad money, not mad chicken or mad cow there is one question were interested in, how can you make money off the great chicken sandwich war this gets tricky you may not know this but chickfilla is the Third Largest Fast Food Restaurant behind mcdonalds and starbucks and number one in the quick serve chicken space. There is a good reason you dont know it. Its a privately held company meaning there is no way for you to invest in success thats too bad the fund mentals are fabulous. So with whhat about the other se popeyes has a boost. This is the biggest product lunch in launch in 30 years remember how much we followed popeyes . We know it was a winner. According to the Washington Post taste test they write about things other than trade war. The taste test, this is head and shoulders above the competition. Apparently chickfilla sandwiches quote always damp if you dont eat it immediately and quote briney but not choigrainy shake shack has too much mayo. For this beautiful popeyes chicken sandwich, Washington Post says its the crunch and hefty with a great surface area than either of its competitors now i want to bite into this this caloriecalories, they cont. The bun is more buttery. Tell me more the chicken is juicy and the pickles are cut thicker. Should i eat it live on tv want to watch me scarf down a pop eyes chicken sandwich or wait regina, we need a dozen minute ever minu minimum. Done. We have a big staff now the sandwich is a huge hit for popeyes. The commentary went from how good the sandwich is to how long the lines are and how some locations were running out how about today . How about thursday no wonder. Its only 3. 99. I mean, you know, they are paying you thats incredible value but the amazing thing is popeyes hasnt started advertising tv this is viral marketing. The Third Quarter Sales Forecast for popeyes from 3 up to 7 7 number can be conservative so far hes seen a high single digit to low double digit same sales increase but early in the quarter so maybe demand slows down there is this one little problem. You cant invest directly in popeyes anymore. Two years ago the company was acquired by Restaurant Brands, burger king. Thats the classy canadian version. They are an enormous company, popeyes only makes 12 of the stores and maybe 7 of the earnings so while the stock could get a boost from the chicken sandwich, it will never be a needle mover and thats unfortunate i. Dont want you buying them off this for better or worse if you buy them, the ticker qsr for quick serve restaurant, youre betting on burger king its good. No doubt about it. Stocks up roughly 47 for the year they launched their own meatless burger, the impossible whopper, i had the impossible burger. Dynamite it striked 20 and the last quarter was strong its a fine company but the stock isnt cheap. Its 25 times earnings making it slightly more pricey than mcelderry d mcdonalds wonderful china exposure they opened 140 burger kings last year and i got to tell you, therefore, they got it and im not going to tell you you cant buy it but you should know this, 3 g, yes, the real reason to avoid the stock is to do g 3, the Brazilian Firm that bought burger king and transformed it in restaurant bands we know today. Its ringing the register. They own 41 of the company and brought that down to 36. Makes sense for them to take profits after the hideous losses they are taking in kraft heinz they made a fortune. If they keep selling it will venture away im not against buying Restaurant Brands. You cant own chickfilla and popeyes, only part of a much larger c larger maybe we need to think out of the box. Maybe people just love chicken they love chicken. And if thats the case, you dont need to invest in the chicken war directly you need to buy an arms dealer. And when it comes to chicken, there is only one name you need to know and that name is tyson foods. This big meat processer is a huge chicken business that accounts for 30 of sales. When you see chicken, you will see tyson chickens this is a roller costar after roaring higher in 2017 stock got clipped. Tyson has been hit that hard since mike tyson was knocked out by lennox and who should go down the elevator and who shouldnt tyson foods is up more than 70 for the year and after that gain, get this, i think its got more room to run first, though, i recommended the stock in 2017 not long after it broke down and then i threw in the towel and wanted to drop below 70 my track record less than stellar and people on twitter, please go on and attack me as a buffoon and chowder head because i would appreciate that. Thats what i live for and feed on you clearly dont know me. Still, last year tyson was getting hit with serious head winds like higher labor costs and transportation costs and last september the ceo tom hayes we loved stepped down for personal reasons, longtime tyson veteran taking over successor. Since then the stock indeed has caught fire as you can see from the chart. The Company Reported strong quarters and doubling down higher margin businesses like prepared foods and improved execution and rolled out a plantbased beef alternative to compete with alternative meat. Its got a hybrid thing going. The pork business is benefitting from african swine fever killing the pigs all over the world especially in asia they got 88 of the shells from the u. S. And President Trump agreed to a trade deal with japan that nobody is talking about. That will open up the japanese markets to more american beef and pork exports, actually quite a bi millennials love protein the stock is cheap bottom line, when you see all these people lined up outside popeyes waiting for a bite of the terrific chicken sandwich, you should buy the biggest arms dealer in chicken world. Yes. Tyson foods. Whether chickfilla or popeyes wins the chicken wars, tyson will always come out ahead well start the question with keith in minnesota, keith. Caller hey, jim, its keith. I have a position on cisco, syy, whats your opinion . I like both sysco the quarter wasnt perfect but all right and syy the one you own, nelson in september delivering alpha and we may have to try to bring that up momentarily and talk more about proctor and gamble and david taylor but lets remember as we await a Supreme Leader to emerge in the clucking chicken sandwich war, i recommend you go to the source and add tyson foods to your plate stocks went a lot this year but its a bargain versus Restaurant Brands who owns popeyes but im not against that, either much more mad money ahead. Is alonzo parking up a tree . Im giving my take on the position to pounce and how this markets pajama party could impact your portfolios potential. Rapid fire in tonights edition of the lightning round so stay with cramer. Keep being sawed by the trade war. On friday the tariff apocalypse and were off to the races if youre sick and tired of volatility, the best thing you can do is try to identify powerful secular growth that will keep working. Themes like the humanization of pets i dont care i try to drill them into your head because they work by the way, happy National Dog Day to two of my favorite animals. Yes. Marley and invidia stuck in the 160s for years ive been pounding the table. Americans increasingly treat pets like members of the family which means were spending a fortune on feeding them the best food and buying them the best health care. Lets see over the past five years weve been flogging this, cramer fav is up 344 . Thats why we bring the ceos on. I want you to be familiar with the Great Stories but another issue. We hate to chase on mad money. We dont like to chase stocks with mamouth rallies and under performance alanco Animal Health elon like elon the stock has been a real dog ever since it was spun off by lily, a little less than a year ago. So what do these guys do and why is stock such a loser . Basically a Pharmaceutical Company for animals. They are the number one maker and developer of vaccines and anti parasite drugs and have treatments for arthritis and ear inflections. T we dont like that. It still does get 35 of the sales from business companion animals. Why is the stock such a disappointment only if you didnt listen to me when i warn you to stay the heck away from this one when the stock spiked 50 that made no sense to me, i said it was too expensive versus the group and i was dead right stocks now trading below 26. Initially it hung in there but after trading sideways for nine months, they experienced a horrific breakdown this is incredible that is a huge decline even though the company had many consistent quarters the stock late last month we started getting reports that they were in talks with bayer, we call it bayer to acquire the Animal Health division. They are paying 7. 6 billion in cash and stock that drives down the stock for bear Animal Health they lost 8 of the value and would have been down more if it wasnt hammered. Why does wall street hate this transaction . When they were spun off by lily, the company left them with 2. 5 billion worth of debt. Beyond that bank of america downgraded which is why it got hit again today. They acknowledge the deal could potentially workout, they are worried about the uncertainty factor we know which part of the portfolio they will need to die vest to get trust approval, we didnt have a bunch of clarity on what the growth rate will look like for combined business. The business from bayer is slowing down 2 and it will own 15 of the company, which may be a quick sell for them. For me, the sellers here made a serious mistake. When i looked at the deal, i saw a stroke of genius after the merger, they will be the second largest Animal Health company on earth and says the combination will be added to the earnings and even better, this is what really makes me feel that the sellers at this level not earlier, at this level the sellers are wrong. Alonko doubles pet exposure. They are way too livestock oriented for me. I couldnt recommend them among participating. Thats about to change after the merger, they will be split 50 50 between companion and livestock. Legitimate humanization of pets play and thats huge best of all, there is another aspect that havent seen many people addressed bayer is a motivated seller. They are trying to digest the last enormous end stupid accusation the 63 billion takeover that came with major unexpected liabilities. The herbicide causes cancer. They are popping up like weeds and now we have no idea how much it will cost for bayer to settle them all well have to. Hence why its a slow motion disaster for the past few years and much different from the j and j situation everyone is talking about. 500 million loss but some people are looking for 17 billion, and j and j will appeal this is very different this bayer thing, they need the money. If they need to raise cash, maybe they are getting a great opportunity thanks to a motivated seller even the bears in this deal concede that they are paying less so i think youve got a very intriguing situation here, thanks to the bear deal. Their earnings should get a substantial boost and make more sense as a huemanization the stock is plummeting down from 35 to 26 today. I dont care how much certainty there is surrounding this merger, at these levels its baked into the price they hit a new alltime low. 18 times 2021 numbers and the upside should really start quicking in. Now it is down here at 18,000 earnings i like it. Bottom line, im a big believer in the humanization of pet story and thanks to the acquisition of bear Animal Health, they will finally have enough pet exposure to participate in the bull market the stock sold off hard because investors are nervous about the deal i recommend taking advantage and i recommend buying shares in alonco stick with cramer. Your business is up and running, but is it going beyond fast . Comcast business gives you high speed internet. We also have Solutions Like powerful wifi that gives your entire business more coverage and automatic internet backup that can keep your business running. And it all starts with our gigspeed network. So give us 10 minutes. If we cant offer you faster speed or better savings than your current internet service, well give you 300 dollars for your time. Call now to get your comcast business 10 minute advantage. Comcast business. Beyond fast. In the last year, of cybercrime every second. 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Com tv it is time, it is time for the likening round buy, buy, sell, sell, buy, buy and then the lightenining round over are you ready ski daddy. Jake in virginia, jake caller cramer, thanks for all you do for cramerica ticker i. T. , the stock tanked after the recent earnings rep t report how long do you think it will take to recoup this loss we have to look i always liked gardener. I drill down and see why its so bad because wow, that might be an opportunity ill come back to you on that. Lets go to ron in florida, ron . Captain jim. Yeah. Caller captain ron from florida. Cyber ark reported a great but they are losing ground and i cant identify why. The seller is just not really understanding the story. I think that boy, i got to tell you that may be one of the great buys there is a lot of people that say listen, the only ones we want to own is cyber ark lets go to kevin in florida, kevin . Caller hey, jim. Last october you did a piece on the five best class and in health you picked nova cure. I bought it and it tripled should i buy more . Dont buy more but we had the company on, mr. Doyle on i believe in the story i would say the opposite which is if you bought some on my recommendation, you trim a little because its big. We liked it in the teens for heaven sake. Lets go to trish in new york, trish . Caller hi. Hi. Caller calling about new mobile is it a keeper or should i sell it sell, sell, sell, sell, sell, sell. I dont know, maybe i made my point. Dill dillon in georgia. Caller hey, how is it going . Youre not related to dillon sorry, whats the stock . Caller vermilion energy. Sell, sell, sell, sell. Ive been using this button to much. No energy, no nitro except the drink. Caller king cramer cleveland has been beaten up this august and trading 2. 5 times earnings and paying 3 many dividend. I agree the sign the earnings are about to collapse. This button is dying were in an industrial debacle and most think the trade war will never end in the cross hairs. Lets go to barb in georgia, barb caller hey, jim, thanks for helping the little guy. Absolutely. People on twitter think im trying to hurt them. What would be my goal . Am i some sort of go ahead. Caller okay. My stock is xilinx. Brian in minnesota, brian caller cramer, im here. All right, brian. Caller wondering when we can start buying financial stocks no, no and no no financials until they go lower because they are just too much, again, there is too much confusion as long as the yield curve stays the way it is. No one will we crecommend any s. You have to hold it but dont buy, dont buy. They dont like to come on. What are we supposed to do do their bidding lets go to bob in missouri, bob . Caller yeah, jim, thanks for taking my call. Of course. Caller i watch every night. Thank you. Caller had a stock downgrading for two or three weeks now. Should i hold or sell amd . Buy it. Why do you include only hold and sell on the menu were talking about the foremost ceo of this era. I say buy advanced market and that ladies and gentlemen, is the conclusion of the lightning round. Announcer the lightning round is sponsored by t. D. Ameritra ameritrade i had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu we need to address what happened with the s p 500 futures last night and this morning. See, there was a panic sell off and anyone that bit the bullet made out like a bandit there is a temptation they know more than you do but you know what, thats rarely the case every time they get worked up how the sky is falling and the bull is finished, what could go right and could catch the pajama traders off guard . Think about these guys doing trades in their pjs. As we saw this morning, they often make serious mistakes and sometimes its pretty predictable anyone with a cool head why . The future sellers were basing moves not only on information bebelib but belief they would panic. Remember this weekend we herd the president s second thoughts that momentarily made you think he wanted to walk back the statements about raising the current tariffs and ordering American Companies to get out in china. People clarified it. He was having second thoughts because he wished he hadnt threatened to raise the tariffs. Total confusion. They mean the negotiations with china are even in worse shape than we thought if thats possible they figured friday sellers would return and wanted to get out ahead of them. But then in the wee hours of the morning, something went right that caught these traders with their pajama pants down. President announced china wants to come back to the table. Suddenly, every single future seller from last night was on the wrong side of the trade as the future spiked higher, the chinese denied calling him and most of the media assumed trump was lying and shows the future is down lower again but as i told you at the top of the show, this he said, she said approach misses the point when you know the president watches the stock market and g 7 were pressuring him to make a deal because recession will wreck they areir economies. Whether trump calls china, its inmaterial and an obstraction undeniable, right . This is the new pattern and youre fooling yourself. Its dangerous to bet against the market youre running a risk the president will do something positive to look like a dope dont mess around with the futures in the first place but if you insist on playing that, its easy to get burned when youre chasing a trend without considering what might happen to cause a reversal or put it another way, pajamas for sleeping in, not for trading stick with cramer. I planned each charted course each careful step along the byway much more much more than this i did it my way announcer verizon is americas most awarded network and the only one with the galaxy note10 5g. Right now, when you buy one, you get a galaxy note10 free. Thats verizon. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. After the bell the oklahoma judge orders j and j to pay 572 million for its lets see Opioid Crisis j and j will win in appeal and the fact it was less than a billion was a win. I like to say there is always a bull marketsomewhere, i promis to find it here for you on mad money. Im jim cramer and ill see you tomorrow re festival this glossy promotional video pitches it as the greatest Music Festival ever. Burrough you know, beautiful models frolicking in the water in the bahamas fyre festival. Clarke it was supposed to be like the most insane festival the world has ever seen. Narrator but fyre fest is a complete disaster that quickly goes viral. Welcome to fyre festival. [ screams ] whats happening . Fyre festival is canceled. This is just [bleep] crazy. Narrator and the mastermind behind it all 25yearold billy mcfarland. Billy had a lot of obvious talents, but the greatest one was selling himself