Sell in part because were worried that theyll report not so hot earnings that includes early this morning when the market got severely oversold before rebounding the no one wants to own a stock unless it can report whats known as a bte, a bte meaning a better than expected quarter the tyranny of bte has cast a pall over this market. But now the earnings season has actually arrived with pepsico kicking things off, many stocks are down big from their highs, and im starting to think that theyve fallen so far that bte is the wrong concern [ buzzer ] instead, we should be looking for quarters that are not as bad as feared, or nabf, nabf yesterday wall street was concerned that pepsico would fail to deliver and the stock went down in anticipation of that bad number. If there is any degradation at fritolay, any market share lost to cocacola you have to believe that this thing would get clubbed like a baby seal but as it turns out, pepsicos results were not as bad as feared it was a nabf quarter with strong sales in food and beverages. The stock had already been hit hard going into the report that this didnt bother anyone. Thats nabf for certain. It gets better some of pepsicos divisions are truly on fire. Gatorade seems to be returning to the old fabulous growth trajectory it used to have now fritolays products are being snapped up by millennials. There is a lot to like here. Two days ago, this quarter would have been a nonevent today it sent pepsico surging to a new alltime high. Thats not just because it was better than feared when the market gets this oversold, it can act like a coiled spring with stocks rallying beyond where you ordinarily expect them to go to on good news so who else can deliver a nabf quarter . This is the list, people get a pencil and paper out this is the one list you need. First, i expect jp morgan, jpm to report a generally better than expected quarter. This is jp morgans moment, the moment to shine. Huge advisory business, plain old credit lending, they should all be very strong as banks generate more and more of the revenue from fees rather than interest, im confident that jp morgan will be able to raise numbers. Jamie dimon talked about a balanced Balance Sheet im betting this one will be bte. Second, im liking the look of American Express the stock has been eviscerated, 129 in july to 112 today i dont think amex will report a better than expected quarter, but thanks to that excruciating decline, it doesnt have to. It only needs to be not as bad as feared. Nabaf. The businesses slow worldwide because of the trade war im skeptical. American express hasnt been able to crack into china in any meaningful way china is the epicenter of the weakness he is breathing new life into the business a selfeffacing man is transforming American Express from a company with a spotty track record to one with proven numbers like ones we expect from mastercard and visa. I think well get those again. Next up there is abbott labs, a medical device maker if you watch the show for a while, you know im a huge fan of miles white who has created an enormous amount of value for shareholders over the years. Weve been buying abbott for my Charitable Trust wrote where you can follow all the moves by joining the actionalerts. Com public the stock is down nearly 9 from its high very rare to see this. I think its an opportunity. Abbott also has a revolutionary new diabetes managing that management can crow about on the call the medical device makers are only part of the Health Care Cohort that has been flying under washingtons radar the democrats and republicans may be united in how they view the drug industry as repugnant, but i still think there is one drug stock that you can buy right here after this decline. Its merck they have tremendous momentum and reports on october 29. The stock is down about five points from its highs. To me it looks like a buying opportunity. I expect merck to raise its forecast thanks to the incredible growth of keytruda. Its better than nabaf what else . Here is starbucks. Starbucks doesnt report until the 30th, but its stock has been crushed. Pulverized from 99 down to 84. Thats thanks to excessive enthusiasm when it got to 99 combined with a one shade down from erflely september the traders, they felt like they were trump chumps if they owned the stock. Theyve been dumping it every since. At 84, i think its a buy. Dont forget they got that nitro. The millennials love the nitro i get sick to my stomach every time i have it honestly, i can drink this better than nitro. Six, facebook. Yeah, facebook, can you believe it facebook and what am i thinking, right . Heres what im thinking even though the social media kingpin had a nice run today, its still dramatically down from highs and it only takes one statement from one politician to reverse todays rally. As investors have rebelled against faang, this thing has become less toxic. Im not blind, but honestly, i think they benefit from the fact that there are no longer the other Big Tech Company thats been targeted. This company is no longer public enemy number one now its public enemy number three or four, depending on the day. Thats encouraging meanwhile, the users, guess what, they still love it they havent been talked out of it by washington or newspapers they dont seem to care than stuff, including the call today from attorney general to limit encryption stop it already. When you talk to the Consumer Packaged Goods Companies as i do, they adore facebook because it owns instagram and instagram is indispensable if youre trying to reach new customers. I do a Facebook Program daily. The bang for the buck is phenomenal i think youll have plenty of opportunities to buy this one in the weakness before it reports on the 30th. Even if we have an economic slowdown you still have to go to the drug store thats why i like cvs. Now the stock has been creeping higher as analysts start warming up to its merge were aetna plus cvs is spewing cash so theyre paying for you to wait for what i bet will be a nabaf. Finally, there is shopfa a company that helps thousands of people set up their own ecommerce sites. We hear from shopify in three weeks. We sold this about 60 points above where it is right now. I think you can sink your teeth in as it goes lower into another dip. There are dozens of other stocks that could work here stocks of High Quality Companies that have just been shelled. I dont know if the market is done going down, although i think we saw an important moment of capitulation during this mornings breakdown. But the oscillator is still not as low as i like here is the bottom line. When the labor day releases its big employment tomorrow, i bet there will be sellers. To me thats the Perfect Moment to pick up nabf names, betting, though, the not as bad as feared how about we go to brad in illinois, please brad caller good evening. Good evening. Caller i was frommed in the value of vantek. Earlier they had a buyout and broadcom back back to the table. There is supposed to be a onetime dividend of 12 just stick with it. Rick hill is in charge there i know he is temporary, but rick is a moneymaker, and youre going to make money in it even at 23 i want to stand there and buy the stock. Ali in minnesota caller booyah, jim. I have a quick question with regards to the future outlook of general electric. Sure, sounds good whats up . Caller i noticed the stock last year lost 22 billion its got 108 billion in debt, and its only got 35 billion to pay for its cash do you think this will be a stock that will go insolvent in the future no, no, no, absolutely not. As a matter of fact, i would say larry culp has the situation under control. 2019 is a reset year 2020 will be better. The problem here is not of larrys doing, and he is really cleaning things up i dont want to bail i think there could be more weakness, but i do not want the bail im going christian in nevada. Christian . Caller hey, jim. How you doing . My question is im currently down in my position in sprint. Should i sell now or wait . Youre on the wrong horse you need to be in tmobile with a deal or without, youve got john legere working for you and ledger is the bomb watch for stocks not as bad as numbers and stop worrying about bte after this decline use weakness to pick up the ones ive given you here. On mad tonight, constellation with better than expected numbers, but the stock is still dropping feel like you need a cocktail after the move im going to talk to the ceo then ulta faced an ugly selloff, but where should you stand with the stock im investigating. And after a wild few days in the averages, wondering how you should position your portfolio im here to help when we play am i diversified. So stay with cramer. Dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc ssomhing head to madmoney. Cnbc. Com. Make fitness routine with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. Find our coupons in sundays paper. Pure protein. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. What do we make of these numbers from Constellation Brands, stz . The big company known for corona and modelo this morning constellation reported what it first seemed like a pretty solid quarter. Even after factoring in a 20cent earnings hit related to the major investment Canopy Growth thats the tough cannabis producers situation, they still delivered a 12 earnings beat, up 2 yearoveryear management raised their full year earnings forecast yet the stock ended up getting hammered, down 6 today. What went wrong . When you dig beneath the headline numbers, theyre trying to sell their lower end brands to another winery for 1. 7 billion. The deal has been delayed which makes these results harder to interpret. The companys investment Canopy Growth getting pounded of late put it all together and there was enough hair on this quarter to scare away the quarters we have to find out more did the stock deserve the plummet . You have to wonder if this is a buying opportunity weve been looking for. The president and ceo of Constellation Brands to learn more about the quarter and where its headed. Welcome. Thanks. Glad to be here. The things that were moving parts, it was tougher to understand this quarter than others because of the wine and spirits delay with gallo, because of the way there is accounting for your canopy business can you walk us through it a little better . I think people may have been so confused that they did the wrong thing. Yeah, we think so too, jim. When you look at our core business, our excan imports, they were up in depletions to of adjusting how many days were in the quarter. Very strong. Modelo was particularly strong, up 15 and was the number one growth driver with over 30 of the growth on the entire beer business so we had a really Strong Quarter. When you then add to that there are margins the best they have ever been in the quarter, we think our beer business representing 80 of our total profit had a really, really Strong Quarter what i think people may have gotten mixed up in a little bit is some of the accounting treatments around canopy lets face it. 757 million is a big number, and that number is how much were up in our total investment in canopy since we made the initial investment so we think the same as you, that this is a great opportunity for people to buy in because we think some people missed the success that we had during the quarter. Canopy has come down. Along with the rest of the group, there are a lot of short sellers driving down some of the stocks there is a lot of competiti competition. Im being pitched one every single day do you think canopy because of perhaps some of the missteps bruce litton had done, or because it doesnt have a new ceo because the current ceo is retiring is just too hard to get your arms around or is this an opportunity that maybe i know you guys have a limit of how much you can buy, but it does seem like its the best capitalized cannabis story out there. Maybe its an opportunity for that one it is the best capitalized. And importantly, it is still the leader in total cannabis sales and with our acreage deal, which will be finalized when legal here in the United States, canopy will be wellpositioned to win in the United States as well so we continue to be very bullish on canopy and its longterm opportunity to win in this marketplace do you think kit be the consolidator that Everybody Needs . Because i got to tell you, bill, there are too Many Companies in this industry right now. Yeah, i think so. One of the reasons is why we made the initial investment is we felt they understood government regulation, they understood the science better than anybody else in the industry so no one in our judgment is better positioned than canopy to win what we all believe will be a 200 billion business in the next several years, or more. All right so bill, what are things in the previous quarter everyone is saying when are you going to do a spike sell youve got one now no one cares now its really incredible how fible the analysts are im not. This category is exploding you just have to look in the refrigerator of any millennial what does it mean to have the corona hard seltzer, and when can i see it in stores, or is it there and i havent gotten the time yet youre going to see it starting in march this coming year but remember what corona is. Coronas dna is all about refreshment. When you add to the fact that corona is the most trusted brand from for the 21 to 54yearolds, whether they be nonhispanic or hispanic, it is a perfect marriage between seltzer and the corona brand franchise and as weve said before, we were only going to do this if we could do it profitably were going to make a lot of money entering this category, and we think with margin structure that is well above everyone else who is playing in it today how is that possible . Because everybody tells me theyre making a ton of money. Whats Constellation Brands at here well, as you know, our bottom line margin structure in this quarter was well over 40 . And when we see seltzer getting to an effective run rate level, that takes a significant piece of this year, were going have a very similar margin profile on this product to our regular core corona business. So if you look at the other players in the industry, they dont have a margin profile, anything resembling what that will be. What i also want to know is weve got new tariffs. President s just put on scotch and whiskey over there were having a little trouble getting through this, maybe the canada mexico trade agreement. What do the tariffs mean to you . They mean almost nothing to us, jim. Were not sure whether they would be any impact, if anything would be implemented in italy, and it wasnt. As you know, we have our rafino property in italy. Given that the vast majority of our business is done here in the United States and is done with brands that are made here in the United States, plus in mexico, we will have no impact whatsoever relative to the tariffs. So were good to go. One last question you got slemescal, high west, t in my play selling tequila you now get craft gin. Put these all together are you going to get something in the end that is going to move the needle for this big company . Well, you know, lets not forget sfedka, up over 6 in the most recent quarter. And weve got a lot of opportunity with the brands you mentioned to grow our spirit portfolio. Were excited about it a lot of it is craft a lot of it is where the consumer is moving, the whole premiumization trend, but that whole sector of the business is going to be important to us going forward. All right, terrific im so glad you came on, bill. It really clarified a lot of good things that is bill newlands he is Constellation Brands president and ceo. Thank you so much, sir good to see you. You too, jim. Stay with cramer. Tell him were flexible. Dont worry. My dutch is ok. Just ok . Tell him we need this merger. 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. Is. How do you know when its safe to circle back to a stock that suddenly turned toxic [ buzzer ] buy, buy, buy take ulta view. For years ulta was one of the hottest sizzling Growth Stocks in retail. A little over a month ago the Company Reported a very disappointing quarter. [ crying ] and the stock got taken to the woodshed. Sell, sell, sell losing nearly 30 of its value in a single session. It was a horrific decline. The stock kept falling after one analyst after another expressed their betrayal but over the past couple of weeks, ulta started getting its groove back. The stock surged from 225 to 265, although its come down from those levels after getting hit with a suboptimal analyst initiation from Goldman Sachs this very day. Still, even after this 5 dip, ulta is well off its lows and we want to know whether its still a buy from then or if its bounced too much, or if its too high was this just a relief rally or is something really changed here that makes this story, which was just horrible more compelling i think its the real deal let me tell you why. First you need to understand what went wrong here in many ways, ulta was a victim of its own success for years they delivered spectacular doubledigit samestore sales growth, some of the best in the whole retail cohort under the leadership of mary dillon. The company did a tremendous job of getting people in the stores. They lure you in with their Salon Services and cosmetics and hair care and skin care. Of course they get you signed up for their incredible Loyalty Program which has millions and millions of people it was an all around great business with an all around great stock. It was a listeningtime cramer fav. Ulta became a market darling and the problem with darlings is when they fail to meet expectation, their stocks get completely eviscerated after a huge run at the beginning of this year, the buyers seemed exhausted. At its highs, ultas stock had more than tripled in less than five years. Plus, in april we learned there was some heavy Insider Selling. Sell, sell, sell during the First Quarter executives sold more than 260 billion of stock they sold less than 54 million in all of 2018 the insiders included ceo mary dillon with the benefit of hindsight, those insider sales told you it was good time to ring the register on this one mea culpa. I should have seen it. Insiders sell stock for many different reasons. Its not necessarily a sign that something is going wrong ulta was huge so they were only being prudent when they took some profits still, it was not something i like to see. So that was the setup going into the last day of august when ulta reported a subpar quarter and the stock fell off a cliff how bad were these numbers this bad wow. While the company missed across every line item, same store sales growth came in at 6. 2 wall street wanted to see 6. 6 net sales a little weaker than expected and posted an earnings miss off of a 2. 90 basis. The growth was already slowing, but this was more of a slowdown than anyone expected were used to having this thing beat the number, beat the number, beat the number. I expected a blowup. Worse, there was some real execution issues ultas earnings grew at a slower pace than sales for the first time in years. If the results were tepid, the guidance was downright disturbing ulta slashed sales from the 6 to 7 range down to 4 to 6 range. Thats a brutal decel. For total sales, they edged that down to somewhere between 9 to 12 . So it might have just been high single digit growth. And management took a meat cleaver to the earnings numbers, cutting them mid point of the forecast from just under 13 to just under 12. Mary dillon talked about headwinds. Talk about a word you never want to hear. Headwinds we are seeing in the u. S. Cosmetic market hmm. Not long ago, ulta seemed like it had tailwinds now its got headwinds what is the problem here dillon mentioned that most of the top cosmetic brands, both mass market and prestige were experiencing negative growth for the year ulta thought this was temporary, but dillon says we now believe that the softest weve seen so far in 2019 will continue through the remainder of the year oh, man, that just stinks. She goes on to explain the culprit, okay . The main issue driving the softer cycle in cosmetics is that the newest and innovation that have been the focus of most brands this year has just not driven the kind of incremental growth weve enjoyed for some period of time, end quote. In the past youd have new styles, new rituals that would produce better numbers but dillon tells us the most recent cycle of innovation has not driven these behaviors resulting in a soft cycle for the cosmetics category, period end quote. So the makeup business is hurting, although dont you dare tell the key ulta supplier, estee lauder the company just reported spectacular numbers. Hallelujah. Still strong growth in every category, especially skin care and dillon says she is trying to fix the makeup business, trying to leverage the consumer sides and more closely with their Brand Partners to turn things around geez, when your company has a fabulous track record and you slash your guidance, your stock gets a highlight first the analysts cut their estimates on this. How could they not five firms downgraded ulta with Morgan Stanley arguing this was a thesis changing end quarter. Thats why the stock plummeted nearly 30 in a single day and spent the bulk of september licking its wounds no one wanted a seemingly broken growth stock in this environment. The crazy thing in the past couple of weeks ulta has made a remarkable comeback. Usually it take morse than a month after such an ugly shortfall. Its almost like someone switched a switch has been flipped here and investors have been given the okay to get back into ulta whats changed remember how the Insider Selling early this year really should have been our signal to ring the register on ulta just get this. Late last month we started seeing insider buying. September 26th, mary dillon shelled out about 208,000 to buy 1300 charles hallbrand, biggest sort of insider sales this past spring suddenly started buying again. In a series transactions from september 26th to september 30th, snapped up 50 to 60 million worth of stock thats huge. Unlike Insider Selling, insider buying only occurs if the stock is going to go higher. Maybe they just need cash. Estate planning, divorce but insider buys, thats just powerful once wall street saw that the people who know ulta best had become buyers, thats when the stock bottomed since then, its been a big move, although we were lucky today, and that means if you want to buy it the pullback, more than 5 2 my view, right now ulta sells for 19 times next years earnings estimates its no longer trading like a highflying growth stock its much closer to value territory. The cheapest i reckon since dillon took over and thats why i think the stock is a buy the bottom line. Yes, ultas last quarter was a disaster i wish i had seen it coming. But with insiders buying again, the stock looking cheap versus its growth rate, i think ulta is too tempting here to ignore when its going down, even if its looking at permanently lower growth, mid single digit same store sales figures. Its still pretty darn good for retail i recommend buying a little ulta here and maybe a bad employment number, whatever that would mean to get a chance to buy even more on the way down lets go to spencer in florida spencer . Caller baba be a ba babababooy babababooyah, jim is it a good time to invest in 5 below or wait . My Charitable Trust took a profit in it because we felt we had such a big gain. It went down and then it started coming back. And we think the business is really well run. We were worried about tariffs, frankly. But then they came on and said listen, maybe we do have to raise price a little bit i think five below is fine i want to buy it in the teens. I dont think you should buy it up here. But retail is making another move and this is part of it. David in new york, david jim, thank you for taking my call of course caller im currently spend most of my time trading. I just want to ask you about your thoughts on the real real you previously mentioned it was a good buy. Realreal is in what has become truly a class of second rate ipos, this is a members only company for luxury goods, and i like it. I think a lot of people worry this could be the next stitch fix. I didnt think stitch fix was that bad, frankly, but well go into that later. I think realreal is real ultmassachusetts tattoo enticing to ignore right now. Buy low here and grab some more if the market rolls over there is much more mad money. So you have to wonder, does your portfolio have what it takes to fight the unknowns in the market hey, let me be the judge were going play we havent played in a while, am i diversified. Then when is a win not a win when its a trade war win. Ill explain and all your calls rapidfire in tonights edition of the lightning round. So stay with cramer for your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. When the tape starts the look like a christmas tree, i understand why you might begin to feel a little concerned but remember, panic is never a strategy but what is part of a good strategy is maintaining a portfolio that can come facetoface with volatility and still get you through. Be defensive with earnings season getting under way, its even more important to make sure you keep a diversified portfolio that can deal with the ups and downs of whats to come thats why we play am i diversified. What do you do you give me a call you tell me your Top Five Holdings i tell you if your portfolio is diversified enough or maybe if you need to mix it up little lets start with scott in the illini scott, what be cooking caller jim, how are you, buddy . Couldnt be better, thank you. Caller its scott from chicago. After 30 years of being in the s p 500 futures pit, i am finally trying to figure out if i am diverse o diversified. Im honored that you called in, because you obviously have a good handle on everything financial. Lets go to work hope i can help you. Caller well, i hope you can also ive got ajrd, microsoft, nvidia, exalon and cerna this is one of my favorite defense stocks i have a friend who works for it nvidia was up huge today thats because i think its about to get approval and micron stabilized exelon is a terrific utility cerner is a Health Care Company and microsoft a great tech microsoft and nvidia do tend to trade together im going to say lets keep nvidia lets go with microsoft and lets get a retailer in there. And im going to select as of tonight costco and then i think we have total game, but that has to be done. I dont like that overlap between microsoft and nvidia, also known as my dog i have a great dog picture today of nvidia if you go to twitter can i go to joaquin in california joaquin . Caller booyah, jim. Thank you for having me. You bet. Caller longtime fan of the show i appreciate everything you do thank you thank you very much. Caller so the five stocks that i have are disney, costco, American Water works, boeing, and visa all right lets go to work here. [ buzzer ] [ buzzer ] [ buzzer ] [ buzzer ] buzz okay disney is entertainment. American water works is a terrific utility boeing a Defense Company visa fintech and costco is one of my favorite retailers retail, entertainment, utility, fintech and defense aero wow. Hallelujah. [ buzzer ] [ buzzer ] stuck on that one. Lets go to vic in illinois. Vic . Caller hello, mr. Cramer first time caller. Like to know if i am diversified. Of course lets go to work caller okay. Roku, amd, cvs, qualcomm, itsy wow man. [ buzzer ] [ buzzer ] [ buzzer ] [ buzzer ] [ buzzer ] [ buzzer ] okay here we go roku, you know what were going to do . Call it entertainment. There a little too much entertainment here and i dont want everything sold qualcomm were going to call were going to call that communications software. Amd, well, i got to tell you, these two are going to go together, because were going get rid of qualcomm. Cvs, big position action alerts. I really like it i tell club members one of the cheapest stocks out there. And etsy, lets call it an online retailer. We need to bring in something here, again, we can use, lets see, why dont we put in honeywell. I like to have a diversified industrial thats doing incredibly well that would fit in place of qualcomm i know were going to cut back on yield, but i like it. All right. Lets go to dave in kansas dave rock chock jayhawk, jim. Okay, i love the jayhawks always been a jayhawk fan. Ever since wilt. Whats going on . Caller outstanding my symbols are cme okay. Caller deo yes reporter klat. Love. Caller pep peyx. Oh, boy, weve got some work to do here [ buzzer ] hallelujah that was easy okay. Fintech, which i love by the way. Thats a Great Company a great coach called me and asked me about it. Its a winner. Kla. Thats Semiconductor Capital equipment. Its really good paych paychex. Payroll processing pepsico, blowout quarter today diageo uhoh, uhoh, two beverage company, but they dont trade together why . Because this is hard beverage, meaning alcohol. So weve got an alcohol company, a soft drink and fritolay company. My executive producer likes those especially hot on fire chips. I have to eat them with a fire extinguisher nearby. Fintech, but we call them Payroll Processing i just love this company, kla Semiconductor Equipment doing incredibly well. And great fintech companies. Im liking im liking what i hear im liking, and am i done or do i have more . Mad money is 60 minutes is back after the break. Make fitness routine with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. Find our coupons in sundays paper. Lightning round is sponsored by Td Ameritrade it is time its time for the lightning round. Cramer buy, buy, buy. Sell, sell, sell [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Drew in texas, drew . Caller booyah, jim. How you doing . Im having a good day how about you, drew . Caller im doing well. Thats good caller i got a question for you about yeti i like yeti i think its in good shape and i want to buy it kevin in georgia, please, kevin kevin . Caller hey, how you doing tonight . I am doing well were bonds trading down here. Whats going up . Caller im looking for your opinion on the egg fertilizer industry and your take on mosaic. Mosaic . No mosaic, thats a commodity business i have always shied away from commodity businesses on the show, and its never hurt me thats my view lets go to canyon there is a cool name in texas. Canyon caller show me the money, jim ill do that. Caller stay with me, jimmy. Sure, im with you. Caller show me the money last year on this day, square was 98. The fundamentals look about as good as a slice of the longshoreman and is it time to unload the clip here well, longshoreman where my wife lisa who was on a video today that i give her bull market fantasy, here is the problem. You are going to run into the fact that they lost sarah friar, and the stock has not moved up ever since sarah left the company. Its incredible how one person can mean so much i think that company is a good company. David in california, please. David . Caller booyah, jim cramer. Booyah, david. Caller im calling again for your insight and guidance. This time on raytheon, rtm it made a little pop when its pending merger with us first i got to tell you, this combination between raytheon and United Technologies is simply brilliant. Buy, buy, buy i dont understand why people are so worried about everything here greg has this completely under control. It is a buy, raytheon. Thats a merge between raytheon and united tech. Lets go to romy in virginia romy caller hi, jim this is romy in virginia i have a question in reference to bristolmyers. Bristolmyers krorz thats right i think the merger, the merger with celgene is going to be a winner. Buy, buy, buy it is true that i like the abbvieallergan more, but its a dynamite combo lets go to denise in virginia denise caller hello, booyah, jim this is denise from virginia my husband and i are top fans. Thank you caller and recently, hes looking at jbg smith for a longterm stock portfolio. So tonight i wanted to surprise with a call to you if youre going to be that good of a thing, im going to send you back to ventoss i dont want to go far afield like you are lets go to daniel in pennsylvania Daniel Daniel yes come on, my brother what do you got . Caller yes youre up its jim cramer. Yeah, its cramer caller thank you for the valuable service your helping for the unsophisticated investor. Thank you caller what is your opinion about akhanna oil and gas . Dont buy. Sell, sell, sell, sell, sell, sell dont buy its real bad actually, i dont want to touch it matter of fact, i often talk about, and its about where stocks can go to if theyre bad, and thats because there is no such thing as negative numbers brian in texas, brian . I hear you, brian. Caller hi, jim you know, im in texas im originally from flatbush and utica. Okay. There you go. Caller ive invested for income at this point am i going to be happy that i bought British Petroleum yesterday . Yes i got to tell you, my Charitable Trust owns it. Were shocked at how bad the stock acts, but it is a fossil fuel company and the millennials have rebelled. I think its a very good situation, but i recognize how much fossil fuels are hated. Lets go to one more lets go to tom in new jersey. Tom . Hi, jim listen, i want to thank you for the skills youve passed on to me oh, terrific. Thank you. Whats your thoughts on Waste Management its come down just enough. I was hoping it would go to 112. Buy, buy, buy, buy, buy, buy, buy, buy, buy enough to be able to say i feel very good about it. And dont forget we have mr. Fish on, and he is a very good ceo. This is the level. And that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] the lightning round is sponsored by Td Ameritrade rked. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. When is a win not a win . When its part of a trade war. Yesterday, in the midst of the worst selloff in ages. Sell, sell, sell there was a moment where it looked like wall street genuinely believed the president might take his wto victory against europe and simply use it as a bargaining chip to get better deals after all this ruling against europe for dumping airbus planes was 15 years in the making why not show to it use some graciousness and negotiate better terms longterm from the eu on from where the trade practices are even more egregious. Thats where the thinking went President Trump wasnt thinking of it. He slapped new import duties on instantly, right in their faces. Here is the new tariffs, wines, scotch, other goods imported from europe. Thats the last thing wall street wanted. The street is hoping for yes, indeed, a measured response to distinguish good guy europe from bad boy china. So after punishing opening, why did things not crater and we actually bounce . There is another group of investors that believe it could have been more punitive here theyre happy trump didnt go after lvnh or herms me, hence this tie or some of the other finer leather goods, really make a mockery of things. This is all becoming insanity. If you dont where the president stands on trade at this point, you havent been paying attention on this eshould. Trump wants tariffs everywhere to reverse longstanding trade imbalances everywhere. He thinks the United States has been a patsy all over the world and regards this wto ruling as a win. He wants to use it to escalate our simmering trade war with europe as well as keep going on with our trade war in china. And that is bad news for the stock market see, in short, while this ruling was a win against europes unfair trade practices, i think it will be a loss for our economy and our stock market i say that as someone who has backed the trade war with china to the hilt. But this is not the time to for new tariffs, not when were fighting a potential economic slowdown in our country. Really, though, im astonished that some Money Managers and commentators still havent figured out what President Trumps goals are. He has been pretty much yont about it i think the Police Department had a twopronged strategy on trade. He wants to confront our hallal lies and bludgeon them into opening new plants at the same time starving china of new investment but any kind of sales tax hurts our economy, which brings us to the second problem the white house was hoping that the fed would back them up and cut Interest Rates aggressively, offsetting any damage from the trade war. Unfortunately, if you wanted to accommodate the federal reserve, he should have appointed different people was powell doesnt seem himself as a team player he beliefs his role is to be independent. So powell has raised Interest Rates last year and now he is dragging his feet on more rate cuts and without the fed on board, what are we left with . The dollar is too strong for manufacturers to thrive, especially in a slowing global economy. Its not like the new tariffs on wine and olive oils are going to create more jobs instead, our Largest Enterprises are paralyzed with indecision as executives dont know where the next are going to hit. It seems so capricious, so a arbitrary. Last night we spoke to paychex, the payroll processor, and the job creation they talked about is very real we have a real labor shortage. Thats a good send for anyone who works for a living but the last thing we need at this moment is a twofront trade war. Hey, look, im all for crack down on china. Probably harder to align that a lot of people in the white house. I know that europe has plenty of unfair trading practices of its own. In theory, President Trump is not wrong to go after the eu in practice, i think fighting a twofront trade war could be selfdefeating for our economy and its too bad judging by the president s attitude, he is happy to keep imposing more and more tariffs everywhere thats something we cant afford much more unless the fed is on board, which its not. Mr. President , its time to get a deal done. Something not unilateral just to show that we still have a funning government when it comes to trade these day, even though i am a hardliner, maybe harder than you, i am wondering, well, lets just say, if well ever get anything done. Stick with cramer. [spokesman] if youve tried college but never finished, group cheering 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 you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. When we get the unemployment number on fridays, we have had a lot of erratic tweets from the president. And if you want the market to stabilize, mr. President , this might be a good time to start tweeting about other things than the stock market or the fed. Its just lets say a Jerome Powell free from attack day. And then the market will probably go higher no matter what lets take a little moratorium on tweeting about the fed. I like to say there is a bull market somewhere i promise to try to find it just for you right here on mad money. Im jim cramer i will see you tomorrow. Narrator welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. When youre standing there . Youre going like this . Probably put them in my pockets. You cant. Dont do pockets. Like this. No, no. Whatever you do. Side. Do the side. Okay. [announcer] first into the tank is an innovation in personal transportation