How do you say game changer . How do you say disruption . How do you say brandnew world house of pleasure ill tell you how to say it, amazon buying whole foods for 18 billion. S p inched up. 02 and the nasdaq declined. 22 . This is a day that will live in infamy for everyone in many country. I dont care if youre kroger or walmart or costco or supervalue, this purchase, it changes everything thats because amazon which struggled with food, mightily, has found the trojan horse in the supermarket industry and its achilles heel all at once its averitable homer or home run, judging by the way amazon stock rallied today. I do not think people realize how big this is. Amazons like a modern mechanized army, rolling over the opposition, just like tanks rolled over the trenches in world war 12 in one fell swoop, it will do to the supermarket industry what has already done to the mall how do you compete against a nonunionized company that knows exactly what its customers want. A company that can afford to give away eggs or milk to amazon prime members without worrying about the bottom line . I think thats exactly whats happening now. I know whole foods has just a little more than 400 Stores Across the country but thats just what it looks like now whole foods got sidetracked that did the format it thought anyone in grocery was crushed by this today and that makes sense, at least initially yes, its that much of a disruption that the company that wanted to clothe and entertain you, decided thats not enough, now it wants to feed you food needs to be fresh, something that walmart that sells fresh food brags about endlessly. You cant just leave food laying on someones porch all day long. The cost is a pittance, compared to the market value that amazon gained by making the acquisition today. Not only that, but this deal comes right on the heels of a truly dismal quarterly forecast, and when i say dismal, im being way too mirthful from kroger that pretty much admitted it would have to compete on price including two German Companies that are determined to give you the best for the least, a deadly combination. Of course this move downtown just royal the grocery stores, the suppliers have to be worried that amazon can crush them with their Bargaining Power the food business is tough enough, who needs this aggravation . Lets deal with the winners and losers here. The first winner is obviously amazon it knows so much about you, its so mechanized that it can just explode the model. But amazon can perfect that cell phone payment system, for that smart start cell that i like so much paid for, eliminates the need for checkers, thats a major cost of doing business, dont want to be heartless here, but it is problematic. At the same time whole foods has had a hard time with the loyalty program. Amazon ask just one gigantic loyalty program. If it wants, it can harness uber you know that uber has about 3 billion in delivery food buyers. And whole foods, no reason not to hold on to this if you own it, you hold it i think theres very little possible of antitrust action, its a very fractured industry, Justice Department wont spend much time on this, who knows, maybe whole foods decide decided amazon decided it had to buy whole foods people feel walmarts got to come in. Other than that, let me think, no, no other winners, losers all right, you have to start with a highly leveraged supervalu. Next is kroger that has an expensive unionized workforce. I didnt see how kroger could compete yesterday, after that downbeat rap about all the Companies Taking the share then theres target, this companys been struggling with food as it is. You have to wonder if it should even bother now. But maybe it can, and im not kidding, outsource food to kroger suppliers to whole foods will be next, united natural, which also does about a third of its business with whole foods. And main celestial the Dollar Stores made a very big bet not that long ago on food they have done well with it. Their stocks were initially crushed today. Much more beyond recognition that i thought but i question how much the deal impacted them, given that t shoppers have little overhead. I cant think of a reason to buy them other than that theyre cheap and that has never been reason enough in cramerica costco hmm, hurt by food deflation and amazon will bring food deflation lower. This is simply not good for them heres the problem analysts love costco, almost everybody has a buy on it. So i would like to see more downgrades like the one that hawaiian punch delivered this afternoon walmart is doing well. Its stock reflected it. I think it can bounce back why not wait until theres more negative chatter from the analysts walmart cant deal with anymore more price pressure, its a privately owned company that went public because its worth so much. When numbers come down in this market, stocks just go right down with them in some ways i feel its too small to just talk about these individual companies because it throws you off the much larger scent. I think the grocery area has gone from not too hot to basically hideous overnight. No, no, grocery storstorings storings wont go the way of borders. The sheer ease and expense of it will weigh mightily on the industry the company is simply too disruptive most of the stocks had a nice bounce back from the misery of the morning. Most of those will see lower levels again be cautious. Amazons desire to clothe and feed and entertain every american cannot be denied, it will be realized and things will not end well for all of amazons competitors. But the cavalry, lets just say it has never had much hope against tax. And amazon is one giant mechanized army. Caller cramer i have a question with regard to shopify, buy or hold. The stock was up 1. 45 today, because people realize it is an e commerce platform. Maybe kroger has to buy them listen, i say that and immediately on im envisioning it on twitter people stay im an idiot. If you were my mother i would take offense to it, thats about it how about don in texas don . Caller jim first of all, happy fathers day booyah too you. Right back at you i got to tell you this, don, because youll love this my daughter said that fathers day is very inconvenient on sunday so lets have it on monday i never thought of that, inconvenient caller sounds like something my son would say i was thrilled that i was even included in the conversation big win. Caller okay i was calling on schmucker, Ticker Symbol sjm their last quarterly meeting, the guidance didnt sound too good i have owned it for quite some time now but in addition to it being near its 52week low, i also noticed that today it was up. 2 my question is should i hang in there . Or should i reallocate i have spent some time with the company, the cross curren currentses are so tough in this industry, i think the company, i wouldnt center the store that will be sacrificed on the alter of the new amazonwhole foods, wow. I still cant believe it focus. The revolution is here on mad money tonight, just because theres a transformative deal on wall street doesnt mean were abandoning the game plan, no way ill tell you what you need to watch in the week ahead. That coat or purse might cost a pretty penny, im eyeing the companys potential and with todays megamerger announcement, im take a look back at a merger in 2015, im making a look back. Its merger friday dont miss a second of mad money, follow jimcramer on twitter. Have a question, tweet cramer m madtweets, or send joim an email. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Its tough to come back to earth after trying to explore the invocations of the most disruptive, most Game Changing takeover i can recall. Yes, it was a merger member the merger bot . Merger. Amazons bid for whole foods. But we still got some work to do we need to get to our game plan for next week. First monday starts an extrav extravaganza that investors always look for. People have been puzzled why boeing has a new alltime high its because they say theyll talk about some gigantic orders at the show. I think theyll deliver. Thats not all there is. One of my favorite companies, united technologies, has its general aviation meeting on advertise. Ges in flux here, i think everybodys worried about the incoming Ceo John Flannery l lowing the boom on forecasts instead, i bet it gives a positive update on aerospace its supposed to be positive, but these days are ge, who knows, right why do you know the stock of ge like my travel trust does . Because they have made 2 billion in cost cuttings we start with giant home builder lennar it hit a new high, normally it would be hitting a new low its great for the Home Building business lennar will take advantage of the demand, many Home Builders dont. The pace was slightly more than a million homes. In this economy should be generating at least 50 more than that. We need answers. I bet ceo steve miller will have some great perspective, he always does. Then we get some results from fedex, and i think its going to be a good quarter. Im looking for the company to guide numbers up and talk about its role in the privatization of airports, because if there was ever a company that knows how to run an airport, its fedex. And we have to talk about the Food Industry because of that amazonwhole foods merger. Maybe do the merger bot. Merger. Merger its friday, come on. Adobes stock often confusings people and other times the stock gets hammered because the stock runs too far too fast if you havent bought adobe yet, you have to wait until this company reports. We have been putting out bulletins like mad at action. Com it was a fantastic quarter, keep the pattern in mind, you might get another opportunity. Were always fretting these days about anything auto, we worry about peak auto sales, we worry about subprime loans to auto buyers and we worry about auto parts. And were concerned about how the big car dealers are doing. Were going to get numbers from car max. Im going to listen to the call, but only to find what the state of the industry is im worried too that auto has become a drag on the economy and that Car Companies have lost a lot of their value and oracle, given what were seeing from some of the other companies, i think oracle is going to report a good quarter once again you aint seen nothing until youve analyzed the tradiing a t accensu accensure. Last time accensure dropped from 126 to 114 after it reported and here there is back to 127 every once in a while the market astounds you at how stupid it is Bed Bath Beyond has performed so poorly. Its been a monster bad stock. The other school says that this stock is so low that the company could pull a nordstrom, meaning it might want to make its stock private. My take, just avoid the darn thing. You know why because lives too hard. Blackberry reports last year it gave you the quarterly update, it wanted to monetize all that intellectual property it owns and the stock flew higher. To me, this things been a dog for so long. I had no choice but to say hold on, dont touch it but blackberry said that analyst has become a raging bull its now above 10 and if its going to stay above 10 you have to say, oh, well i missed that wti crude, half a horrendous couple of weeks, our analyst who so nailed that crude will go 10 higher, could be right that crude has bottomed out theres lower inventories and it has become a destroyer of everything it touches these days the possibilities for an actual rally higher have finally increased. Heres the bottom line, while we still collectively real from the most disruptive deal in ages, amazon merging with whole foods, lets focus on a group of companies that could decide the direction of the market next week adobe and accensure are trading wildly thats where you could get some discounts in the weeks ahead coach is up 30 already this year, with 2 acquisition, is a turn around in the bag and a major merger, because remember it is merger friday and theres action in this market thats driving old school observers. Is there action in your portfolio . Ill reveal it just ahead. So stick with cramer [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov its time to take a bit of a victory lap. For over a year now, i have been telling you that coach the luxury handbags and accessory retailer has been 35making a tu around and you need to own this stock. The new ceo rejuvenated the brand and started producing excellent numbers, at this point out looks undeniable, coach is back the stock has had a nearly 30 gain since i last recommended it in february, and i think the stock has a lot more room to run so im visiting it again you need to understand what made this turn possible the thing about a come back is that it takes time the new ceo was sworn in in 2015 the numbers didnt improve dramatically since 2016. However once the turn arrived, it went into full gear pretty quickly. The power of the companys brand had been diluted, tarnished, they had rolled out cheaper more affordable product products if you want to sell expensivive handbag, you want to know theyre going to be exclusive. The new ceo has boosted the product line, and shut down markets that werent making any money. Reformatting stores, but perhaps best of all, in january of 2015, we learned that coach would buy Stewart Wiseman that gave the company a growth prospect. These initiatives have truly begun to pay off in the form of much better numbers. Along the way theres been plenty of downers. Morgan stanley came out and gave a sell, sell, sell the analysts conceded the turn was happening, but worried it was being done in an unhealthy way. I thought that seemed a little obtuse sure, i didnt like it that the company was getting too promotional, but focusing too much on the promotions themselves and ignoring all the work that the new ceo had done plus the company tried to trim back its promotions in its wholesale market since then, the stock of coach has really caught fire hey, its nice to be right but since the recent merger, the acquisition of kate spade announced in may less than a week before the kate spade deal, coach had reported a pretty strong quarter. The Company Reported 2 cent earning beat, slightly weaker than expected revenues, but 190 basis point increase in gross margins, what the Company Makes after the cost of goods sold, and a decent rise in same store sales. When you get that kind of gross margin improvement, youre not being all that promotional michael coors posted a 13 same score sales decline over the same period. Now this turn is clearly workinging, coachs stock surged from 38 to 42. Its not like coach needed to do a deal but we learned on that 8 i think the tieup makes a lot of sense. Kate spade had suffered a lot of what coach suffered when it first took over. The brand doesnt feel as exclusive and as pictupirationat used to be theres not a lot of overlap here that may sound surprising if youre a man kate spade is very much targeted to millenniaals. Even the storings dont overlap much the idea here is that kate spade is boost the Brand Awareness, coach for example as 23 Brand Awareness in china kate spade has just 1 think how many purses they can sell with a proper international rollout. Plus kate spade helps the Company Expand into jewelry and apparel. Coach believes they can generate 50 million in synergies after the deal closes and do many of the same things to kate spade, develop diluting the brand by participating in so many flash sales. Coachs stock has continued to roof since the announcement, which tells you all you need to know about how the market sees this deal. Still the stock is up more than 30 year to date but do you think it has run too much i dont think so coachs stock sells at 19 times next years estimates. Might seem a tad expensive but you need to understand that coach is a rarity in this business a company is rising samestore sales, rising margins and growth opportunities. Coach deserves every penny of its premium. Heres the bottom line, not only is the turn around in coach still very much on track the company is taking the come back it made, the expertise and applying it to kate spade, and i think that acquisition can fuel still another leg of this phenomenal rally you want to wait for a pull back before you buy it. If you dont already own coach, im going to give you my permission to buy some and then if it hits a low, you can pull the trigger and buy some more. Caller booyah jim whats up caller looking at childrens place, will it be taken over it will not be taken over the reason you want to own this, the stock has been a monster barn burner in the last year, so dont expect any retailer to continue to roar, you dont want to own this for a takeover because it aint coming. Lets go to joseph in virginia caller a gigantic bua from virginia how can i help . Caller ive been watching cnbc since 1991. Thank you go ahead caller when i started investing and ive been watching your start since it started airing not bad caller and i have never not made money on your advice ore recommendation of a stock. You get a lot of social media news, and a lot of fake stuff. Caller im a little disappointed in donald trump for not fed chairman if he calls me, i will serve. Caller my question is about lululemon. Ive got Investment Managers investing in this stock 77 . Do you think its a good stock thats lululemon . Heres how i feel about lulu the stock did not get a bump after that good quarter. I thought that was a mistake i lost faith, i was wrong. Bu but heres the great news, the stock hasnt moved so all during that lost faith period while i was in the wilderness, i have been found and the stocks only 32. Im going to say bye, bye, bye that last quarter was very good ill take it i got canada goose price its time to take a victory lap. The stocks been on fire and thats going to continue its not just amazon and whole foods on fire. Theres a merger between two big industrials still in the bag im going to give you an update. And a thank god its friday edition of the lightning round and of course a look back at the week that was, so stick with cramer. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com earlier this week, my partner on squawk on the street david favor named the emanating state of the market this year. While our heads are still spinning from the announcement from amazon this morning theres been a girth of good deals in 2017. While we wait for more companies to start acquiring each other, i think its worth examining a pending deal that was announced late last year to show you how much value can be created by merger. Thank you, by mergers thats our merger bot just in case you were wondering. Im talking about the merger between plaxair and linlinda. Many years ago practixair and linda. In date december, 2 two companies decided to combine into a single gassy titans i think this one is worth considering, because this deal it might come out ahead of time. But if it can overcome a slew of regulatory obstacles and actually get done, this one is a big winner the combination of the american praxair and linda which is going to keep lindas name has made over 30 billion in sales. It is a match made in heaven praxair is a very well run company, linda has the technology, put them together and the whole is worth more than its parts. The Companies Expect around 1. 2 billion in annual synergies. How will it work all right when the two companies merge next year, lindas shareholders will get 1. 5 shares for every share they own pr praxair share will get stronger Balance Sheet and excellent squash cash flow so what will a praxairlinda combination look like . Right now praxair and linda are nguyen a one and two. But after the merger, they will be the top dog the hope is theyll complement each other pr praxair is more youve got a company as diversified across end markets and region the new linda will get 43 of its sales from north america, the middle east sand africa. When the proposed deal was announced last summer, there was no guarantee it would be a sure thing. In fact when praxair reported, they had to reassure investorings on a deal distraction. As ceo steve angle put it. Were not debating car design philosophies here, or how to innovate has mobile supply chain. Oxygen is the same all over the world, and our products dont travel thats why our businesses are and will continue to be locally managed. In other words given the way the Industrial Gas business works, the deal is simply not going to be disruptive. 1. 2 billion. It might cost a billion up front to integrate the two companies theyre going to be able to save 1 1. 2 billion every year thereafter wow, small price to pay. What do we do with these stocks . If you want a piece of the combined company does it make sense the regulators in germany are not excited about losing one of their champions. And if they need too many sales, either side is call the whole deal off but if everything works out, i think the whole thing praxair is much higher margins it can provide a 1. 6 billion boost 0 to provide companies its one of the best deals out there. As praxair and linda i think its only just begun to rally. I think this combination is going to be the real deal that you want to be in. Mad money is back after the break. No splashing wait, so you got rid of verizon, just like that . Uh huh. I switched to tmobile, kept my phone everything on it oh, they even paid it off wow yeah, its nice that every bad decision doesnt have to be permanent now you can ditch verizon but keep your phone. Well even pay it off when you switch to tmobile. It is time it its time fr the lightning round. [ buzzer ] and then the lightning round is over. Mark in new york mark caller booyah mr. Cramer. Mark from new york all right, whats up . Caller im interested in Sierra Wireless. Well, Sierra Wireless is almost comfortable were way too late in this game, man, you got to go find something else, that ones had too big a move i want to go to jason in florida. Caller until you explained the market, i was afraid to invest the market appeared to go against fundamentals synergy pharmaceuticals. Gastrointestinal disorders, its a speculative stock, im not going to be against it 4, theres some options there lets go to jimmy in california. Caller hey, jim. Thanks for all you do. And thanks for taking my call. Im looking at chipotle. I want you to buy chipotle. Its almost 18 months after that incident in 2015, with the novovirus. The stock has come back down and i think its time. Joe in virginia. Caller im a first time caller, but ive been following your programming since the 2k 9 depthings of tdept in s of the Great Recession whats up caller my question is about black stone bx i like blackstone very much i think its absolutely terrific in that market i want you to stick with it. Lets go to bob in florida, bob . Caller hey, hey, booyah, cramer down in florida, yes, indeed hey, i just got colony northstar call its a Real Estate Investment trust and i dont know what they own so its hard for me to opine on it. Lets go to westley in texas a big booyah in the big d, jim. After seeing a 250 return, should i sell some or all . I correctly told people to sell it at a much higher price and then it went down. I dont know what moved truecar up so much i cant opine on that because i dont know caller booyah, jim, i would like your take on comcast. I love comcast, they have unbelievable cash flow, they have got unbelievable cash flow. My travel trust owns it. And that ladies and gentlemen is the conclusion of the lightning round. Merger. Merger merger cramer a booyah to you caller hey, cramer, booyah. Im joe from the jersey shore. Booyah, baby, jersey shore. Caller jim, you do damned good work for us little guys thank you very much. Jack collins, he was my pick in the draft the guy is the train whisperer caller i think he should be nominated for an emmy. Emmy . I dont know, tell that to my wife, shes sick of me, maybe it will help. They were playing with the spinners i wanted them out, will you stop it with the spinners im sick of them i got it i promise, i promised i would calm down on this. Anyway le trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade we, the device loving people want more than just unlimited data. We want unlimited entertainment. So we can stream unlimited action. Watch unlimited robots. Watch unlimited romance. If you are into that. But we also want more like. Unlimited hbo. Can i stop dying now mark . No cant do mi amigo. Its unlimited. Besides you are really good at it james. Dont settle for any unlimited data plan. Only the at t unlimited plus plan comes with hbo included at no extra charge. I a foolish consistency is the hobgoblin of the hard line now for as long as i have been in the business, and now were just talking about from 1979, there were always relationships between groups and companies and instruments and indicators that were considered practically unviolated unemployment is 4. 3 , yet wages are stagnant second industrial stocks should lose some of their luster when our Gross Domestic Product forecasts are cut. Third there are always some retailers that do well in different cycles when the economy accelerates and employment is plentiful. Youre supposed to buy nordstromings and tiffanys when its down, walmart and amazon after amazon buying whole foods, even walmarts lost its sheen they grow at 1. 2 . Thats because these soft goods plays have above average yields in a world thats starved for income, yet theyre more expensive than almost every single profitable company, when it comes to price ratios and tech goes so much faster and longterm bonds see their yields rise as demand improves, i would not betagainst the bon market, because historically its much smarter than the stock market as we learned today, with and n an and an namic quarter when um employment is up, driving the inventories are bulging. Finally a small group of Tech Companies have taken on market capitalizations that couldnt have been dreamed of at any other time theyre wildly profitly, unlike, say, 2000. This is driving a lot of old school observers commentators, stock pickers totally crazy. Conclusions that have historically held true are worthless. Layer on top of that the uncertain nature of this administration, then you have to fall to companies that have growth no matter what hoping they execute to take advantage of that growth if they miss their estimates, then you get crushed because stocks dont go from growth to value overnight. The stoall these factors contrie to major reasons why the vast majority of Fund Managers are tentative here, they havent seen anything like this moment at any time during their careers. Theyre flying all over the place, playing every rotation, chasing performance and in general trying to avoid anything of value and value is really killing performance here, and thats why people end up buying in dips theyre buying what they know has growth at a minor discount in this environment, fang and its ilk can be scorned but theyll all the ultimately be embraced because when the economy slows, you need to by stocks that control their own destinies and thats exactly what tech has going for it right now. Stick with cramer. Theres one huge winner in amazonwhole foods merger. Like i say, theres always a bull market somewhere and i promise to help you find it. Im jim cramer and ill see you monday narrator in this episode of american greed. Ride em, cowgirl Rita Crundwell appears to be a humble, smalltown civil servant. But shes living a double life as a World Champion horse breeder. Its a deception that comes at a huge price. Everything that ive learned about showing horses, you must either be independently wealthy, or youre stealing the money. Narrator when this cunning comptroller diverts more than 53 million of dixon, illinois money into her horse empire, she leaves a city on the verge of collapse. People are gonna have to lose their jobs to balance this budget. For what, a horse . For a trophy . Are you kidding me . Narrator and later. Staten island native