Something bigger than we talk about today. Todays sleepy session was the new normal. Ive made no secret of the fact that i think that the end of the recession with the Federal Reserve, it has caused millions of people to miss this amazing run from the generational bottom seven and a half years ago. The current hiatus in buying ahead of Janet Yellens speech in jackson hole is typical. We wait and then its gone. What, why have so many been so skeptical of every darn move higher . Because investors have been conditioned to brief that once the fed starts raising Interest Rates regularly, they believe they believe it never should have gone up in the first place. Everything that can cause a stock to raleigh, from the dividend yield to a shrunk share account, people presume that stocks have to plummet. I have never chosen to make investments based on the feds next move. Because the fed ive known is a fickle beast thats often wrong, parsing every word is a huge waste of time if youre trying to pick the stocks of companies. Take facebook, if youve made up your mind that the only thing that matters is the fed, would you even consider buying the stock of this company . Would it have meant anything to you at all . How about amazon, how about certainly, youve seen johnson and johnson go up, by plunging Interest Rates. I would contend that those stocks would have been doing next to nothing if not for the terrific managements, cashing in on good opportunities and avoiding bad ones. It matters a lot more to me than this endless fed speculation that i am so sick of. If you have a Federal Reserve thats not feckless with a grownup at the helm, like this one, and most important, no external shocks then a nonvolatile stock market that behaves itself could be more beneficial for the overall economy than many of us might market produces bounty in its own right. And that might be whats happening right here right now. Last year, the ceo of pvh came on mad money and called the scope a disaster. We had more negative samestore sales. The only really salient story that came up involved stock market declines, notice i didnt use that code word volatility. Im talking about outandout decline. This years back to School Season is so important to retail sales, absolutely crushed by the collapse of the u. S. Stock market in the face of weakness that we imported from china. The spillover was terrified, as we know from the heartstopping, i believe that rapid gutchurning decline both negative and positive is almost always underestimated by economists and of course by my colleagues in the media. Sure job growth is better this year, but not so good that it can explain that. It was so awful that we decided that the wall was dead. In retrospect, i think the consumer might have been frozen by the vicious stock market and then thawed. Things got less crazy. This past quarter showed that reports of the malls death were indeed greatly exaggerated. If all is equal, i say, its the looking back at where we were a year ago, i think a noisy Federal Reserve, not speaking as one, coupled with the chinese stock market crash resulted in weaker retail sales here, thats what it was all about, not the allpowerful amazon, but i believe last years mini bear market mauled the consumer. And this year it as buoying things up. This years back to School Season is so darn strong. Ive seen signs that consumers start to behave more like she did before the great recession. Home sales are up. Causing spending at homerelated stores because homes seem like a good investment. Second, consumers have begun to trade up, which is how i believe the stocks of the Dollar Stores rising. I know about the disappointments. A once complacent walmart is coming out with guns blazing against the Dollar Stores, but other highend chains are seeing improvement. Hence the Dollar Stores. Lets not overthink things here. If pvhs ceo comes on our show and tells us that things are better for calvin klein and tommy hilfiger, we have to take that. Now were on the eve of yellins talk in jackson hole. Weve had another treat from calling for a roll back in drug prices. But its certainly a reminder that election seasons and rate hikes could be a witches brew for the bulls. Yes, we can be prepared for halcyon daysun barring an allout attack by either president ial candidate on the stock market. Be mindful that the stock market itself may be a more important conductor to the orchestra that is the u. S. Service and retailbased economy than anybody thinks. And i believe the hallmark of the stock market right now is resilience, which bodes well for everything from housing to retail to perhaps even the job market itself. Caller yes, jim. In the past, ive heard you recommend the organic food company hane celestial . Indeed. Caller but recently, hain as you know has had accounting issues. The stock has fallen 26 . Do you see the stock price decline as a buying opportunity or given the accounting problems would you stay away from hain in. I make no exceptions. Accounting irregularities equals sell. Caller welcome back. Ive been back a couple days now. Caller i now. Just sayin. Caller hey, jim, im the timber company, what do you think . I like them both, but i have to tell you, after that Toll Brothers call and the home depot call, id rather own those. I think toll and home depot are the ones to own. They dont get enough credit. Thank you for acknowledging that im back. I was looking at my second producer saying i was back at the same time, very helpful. Ken in texas. Caller i own shares of dow and dupont. If their mergers are true and they break up into two specialty companies, do you think they will be approved and which of the companies will be a great investment . Im more skeptical than andrew libris. Because i think this government has decided that antitrust combination, i like dow more than dupont. I like the story about warren buffett, but most importantly, if the government blocks this deal, it would be just a shame, because theres a lot of competition in the seed business anyway. Look, im not saying that fed chief yellin cant send stocks into a tizzy tomorrow. The stock market itself could be a far more powerful force. What do janet yellen and tim cook have in common . And then a necessity for people with is serious allergies. Im cutting to the core of the debate around the drug. And leaked emails, the cyber attack, the nsa system being breached. Im sitting down with a private player to see how its keeping stick with cramer. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, mad tweets. Send jim an email to mad money cnbc. Com. Or give us a call at 1800743cnbc. Miss something . Oh, dishwasher, why dont you dry my dishes . Oh, he doesnt know any better. You just need to add finish . Jetdry . In the rinse aid compartment. Its there for a reason. It dries much better than detergent alone. Sorry dishwasher. Finish . Jetdry . For drier, shinier dishes. Dont let dust and allergens get between you and lifes beautiful moments. Flonase gives you more complete allergy relief. Most allergy pills only control one inflammatory substance. And six is greater than one. Flonase changes everything. . I absolutely love my new york apartment, but the rent is outrageous. Good thing geico offers affordable renters insurance. With great coverage it protects my personal belongings should they get damaged, stolen or destroyed. [doorbell] uh, excuse me. Delivery. Hey. Lo mein, szechwan chicken, chopsticks, soy sauce and you got some fortune cookies. Have a good one. Let geico help you with renters insurance. I love my shop, but my back pain was making it hard to sleep and open up on time. Then i found aleve pm. The only one to combine a sleep aid plus the 12 hour pain relieving strength of aleve. Now im back. Aleve pm for a better am. Today you can do everything in just one click, even keep your toilet clean and fresh. Introducing lysol click gel. Click it in to enjoy clean freshness lysol. Its been a pretty nice summer for apple, with the stock up 15 since ceo tim cook came on the show that began in may. The iphone market is no longer the market darling it used to be. Its one of the most beloved stocks out there, but peaked at 135 last year. Since then, wall street hasnt treated it the same way. Investors arent as bullish as they used to be in the companys glory days. You should sit tight and own this stock, not try to trade it. Ive repeatedly said that apple doesnt get nearly enough credit for its fastgrowing service i think i was the first one to put this out there. The money they get from i tune sales, and the cut they get from every purchase in the app store of this Service Stream grew in a 19 clip, it could be as big as a fortune 500 company next year. Its massed moren billion cash shore. Theres a lot you can do with that kind of money to get your business growing again. For years ive been saying that apple should go out and make a big acquisition if it wants to reinvent its growth rate. Buy netflix, for streaming and pandora, own that market, but pandoras nearly doubled from its february lows, and it looks like spotifys dead set on putting itself public. Is so tonight im putting on my investment banker hat. I have a deal that would affect apple, not that either company has to do it, but it would make a lot of sense and i want to own them both. Ski daddy apple should buy sirius xm. I just said it. Why . Because underappreciated sirius xm would kill two birds, first the Subscription Service could boost apples revenue stream, second, sirius would give apple a major foothold in the car to technology. It would really brighten the outlook for the companys longterm perspective. This is what they should do. Lets take it a little deeper. I think the case of snapping up sirius xm is compelling for you even without apple. So what can sirius do for apple or for you if you wanted to own it . For starters, theres plenty of life. Sirius xm has steadily been growing its revenue around the 10 level. It with easily add 5 billion to apples revenue stream next year. Second, sirius has higher gross margins, what they make after the goods sold than apples to. 60 for sirius xm versus the high 30s for apple. But sirius loses on the back one big reason for that differential, sirius has a ton of debt on the balance sheet. Highcost debt, but apple can easily pay down all that highinterest rate making the satellite business a lot more profitable. Its substantially more expensive than the average name in the s p. Not to mention way more expensive than apple itself which trades at 12 times next years earnings. Investors recognize it has this fantastic, steadygrowing business. Its subscriptionbased model makes it easy to figure out how much money theyre going to make down the road. But the real draw lies outside the financials. At the right price, buying either of those would let apple own the streaming music business, which leads me to the third and best reason that apple should snap up sirius tomorrow or monday. It would give them a leg up when it comes to owning the car business. Its preinstalled in nearly 75 of new cars these days, and their penetration rate could use a rise. It would be the fastest ways for apple to get its claws in three quarters of every car that rolls offer the assembly line. Of course not everybody who buys these cars necessarily signs up for a subscription. Its kind of interesting, right . Apple music has just 15 million subs. So a merger would triple the size of the business overnight. 35 million subscribers in the blink of an eye. This has not to be one of the stickiest businesses out there, low churn rate, been holding steadily at 1. 9 for years. And just like that apple bill you get, oh, there it is, right . Ive been on auto pay for sirius for years. You can create a mustown, library from the cool howard stern to many live sports broadcasts, including nfl. Imagine how much better sirius xms hardware would get if apples design team getting to tinker with it. Can you imagine . So can apple, the worlds a 20 billion market. Apple could buy it for a fraction of what it has on hand. Put a 17 dent in the company. It can certainly afford 30 billions or 40 billion to get a foothold in the car with ease. I can imagine apple being a little squeamish about sirius xm, i dont think apples too keen on the satellite business. One thing that could make this deal difficult, sirius xm doesnt control its own destiny, Liberty Media does. They own 65 . So any decision on whether to sell would have to come from john malone, their ceo. And given how sirius xm stock could easily make him an offer he couldnt refuse, even if malone insists on making the deal. Heres the bottom line, every six months, apple spends the equivalent of siriuss xms market gap. Theyve got 230 billion laying around. They could give itself a foothold in the connected car. Thats how tim cook can get darling again. Especially since they could blow out the revenues that sirius is expected to make next year, which would force these doubting analysts to put a hefty valuation on these current revenues that they seem proud and smug to ignore. All right, much more mad money ahead. The average sales of the epipen, im get being to the then the internet of things is making us more connected but increasing our threat of cyber attack. Im talking with red seal. Then ive not a way to keep your money rising no matter what the fed decides. Were playing am i diversified. Stick with cramer. Lets feed him to the sharks squuuuack, lets feed him to the sharks yay and take all of his gold and take all of his gold ya and hide it from the crew ya. . Squuuuack, theyre all morons anyway i never said that. They all smell bad too. No you all smell wonderful i smell bad if youre a parrot, you repeat things. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Squuuuack, its what you do. P your toilet clean and fresh. Introducing lysol click gel. Click it in to enjoy clean freshness with every flush. Lysol. Start healthing. . Yeah, click . Hey, its the Phillips Lady theres a more enjoyable way to get your fiber. Try these delicious phillips fiber good gummies, a good source of fiber to help support regularity. Mmmm. These are great. My work here is done. Phillips. The tasty side of fiber. Oh, dishwasher, why dont you dry my dishes . Oh, he doesnt know any better. You just need to add finish . Jetdry . In the rinse aid compartment. Its there for a reason. It dries much better than detergent alone. Sorry dishwasher. Finish . Jetdry . We want to demonize these Drug Companies who just put through monster prices for its epipen simply because they could. I dont know about you, but i watched as my colleague judging by social media, many were convinced that she is a heartless arrogant individual who pretended to sympathize and talked about the Health Care System. The consensus seems to be that she should roll them back right on television, giving americans the same low prices you can get in other markets outside the unit. To others, bresch is doing no ones stopping her, and we shouldnt expect her conscience to kick in if shes working at a public company. These people say why should the government step in . How else do we get these fabulous medicines. First, i have faith that the free market will come up with a competitive product that drive the price of the epipen down and big. I know this, how . Because ive bought the competitor before the fda took it off the market. Good advice. Second, im against monopolies where there ou charge whatever they want. Theyre regulated. We endorse higher prices for drugs where the Patient Population is too low for the company to take the risk of billions of dollars for something that there could never be a payoff for. Theyre almost all priced below the cost of care that a Health Insurer would have to bear. Then theres the gray area, where prices could be increased out to dry when the price point is elevated 600 for a pair of lifesaving epipens. We think it was trying to sneak in a few extra dollars until a competitor comes along with a generic alternative. So at least for the moment, mylan got away with it, and the big managers that are supposed to negotiate better pricing, failed to do so. Mylan had all the coverage, whats the deal . And there in lies the problem. We have to hope the companies have a heart, so to speak, because theres really not much we can do, given the Health Care System we have, were stuck with cajoling companies that put through unreasonable price the real issue here is is competition, sadly, just because somethings generic, and i know a lot of you feel this isnt true, doesnt mean there isnt competition. I take a particular medicine where there used to be a ton of competition, no more though, why . Not enough money. So the company that makes the drug and the device used to deliver it is now a monopoly. The price per each use, despite the fact that the dose is less than 10 a shot, each shot is 125. Given that i have to take 20 shots a month, thats 2500 a month versus 200. Insurers dont want to pay for it. If another company were to get into it, the price would plummet. Im lucky enough that i can afford it. How about other people . I dont know. The bottom line, theres clearly a glitch in the drug system. President ial tweets, they dont solve the bigger problem. Joe in new jersey . Caller hello, cramer. Nice to have you back. I did this show from my garden. My question is on mednax. The and a good pd ratio. Is it a good time to buy . It seems like its oversold. Thank you for the kind comments, but im going to have to pass on that. I have to know more about that one. I just dont know enough about it to be able to make a judgment. Im sorry. Particular, particular kind of Employment Organization that i dont know enough about. Im sorry. Dave in illinois. Caller dr. Cramer. Yeah. Caller from the city of wind and home deepdish pizza and italian beef, thank you for taking my call. Absolutely. I just thought that the white sox are killing the phillies. Whats up . Caller i did not take your advice deep decline weeks ago, recently, the stock has rebounded up 19 in july aloin on a new ceo increased financial forecasts and a false rumored takeover bid, is it still worth geez, dave, it broke up there. What is the stock there . Im sorry, but i didnt catch it. Yes, action alert, we moved out, and then the stock took a big jump. In this market, i think you should hold it. It goes below 280, the trust may get back in, i dont now. And then to the first question for joe on mednax. I think a better one is amn health care. The price of prescription drugs is a problem, but with less of a clear answer than you might think, and until we get serious about solving it with competition or, yes, increased regulation, i fear were going to get more of the same. Theres much more mad money ahead. With a surge in cyber hacking, is it time to go back to the Cyber Security stocks . Plus, its time to upgrade your portfolio. Oh, dishwasher, why dont you dry my dishes . Oh, he doesnt know any better. You just need to add finish . Jetdry . In the rinse aid compartment. Its there for a reason. It dries much better than detergent alone. Sorry dishwasher. Finish . Jetdry . What super poligrip does for me is it keeps the food out. Before those little pieces would get in between my dentures and my gum and it was uncomfortable. Just a few dabs is clinically proven to seal out more food particles. Super poligrip is part of my life now. These days. You are buying finish these days. I got a new dishwasher and they recommend finish. Really . You should try it. Unlike cascade gel, finish has active cleaning enzymes. Its unique powerball takes on anything. Anybody who pays even mild attention to the news knows that the need for Cyber Security has never been greater, just this summer, not only did the Democratic Party get hacked, but somebody hacked into the nsa, they leaked all the hacking tools that the nsa uses for espionage. Cyber security comes with its own set of problems. Who watches the watchman . How do we know that the companies we trust with our personal information are doing enough to keep it safe . Enter red seal. Theres no stock, privately owned software, normally only talk about Public Companies on the show, i think this could be the next frontier in cyber protection. Helps measure its customers security. They even offer you a digital resilience score thats modeled after your credit score, like a fewfico. Lets take a look at the ceo of red seal. Welcome to mad money, good to thank you. I was looking at your deck of the things you tell us. We see some of our favorites, nvidia, and fire eye and cisco. They have the best engineers in the world, but they understand that the complexities networks need something extra ciscos been a customer for five years. They want to make sure its working, and youre the guy who tests it . In fact, cisco took us to rio, they were the rio network provider. They tested it, found problems, used red seal to fix it. Did that. Now we mentioned the dnc and the nsa. Yes. I dont, should they have been able to spot the stuff that happened . They could have. They should have spotted in advance how the stuff could have got in there. And thats something could you have yeah, thats something we could have done completely. You know that. Yes. I would have hired you. Theres an outfit today, its weird what happens in our world, the stock world, and theres a stock called st. Jude net. Were talking about pacemakers. Hacking claims absolutely untrue, would it be better to say red seal says than st. Jude says . We can verify that its possible. You can say the short seller he knows what hes talking about, but could i have helped st. Jude with red seal figure out what happened. The u. S. Government is a big customer of ours. You cant be perfect, theres no such thing as perfect protection. You got to understand where everythings flowing. So what goes into my digital resilience score in. First is configuration checks. You have all this equipment, it may not be perfect. We can assign that. Vulnerabilities. Thats what everybody talks about. You need to know where is it in the network. Is it reachable from the bad guys on the outside . Why spend all your time scanning and fixing a host computer thats not reachable. And the third thing is call the theres always a router routing out and about that nobody knows about. And when we go in there and analyze that routers capabilities we see it going places. Firewalls all around. The firewalls are perfect. Some executive said hey, by the way, i want this to route to my home. The executive moves on, the engineer moves on, its forgotten and we find it. Then youre waiting for a call. No, but we have this very enterprisegrade software that analyzes large, large networks. We bring it down to one number, the digital resilience score, youll narrow the three things. And give you a number. I dont know, if your Credit Scores 375, you probably have problems. Right. So i dont have to explain what 375 means. Yeah, easier than tech mumbo jumbo. We have those guys, but i dont understand what theyre saying. I need a doctor to tell me, not blah, blah, blah, blah, but this is what you have. When green goes away youve got a problem. Youre a ceo, every ceo should ask them, how do they tell if their networks, but it got bad. He can come to work in the morning, make a phone call and say fix this. Cars. Definitely hackable. Planes. I hope not, but i think they are. Electrical grid. I worry, you know, people ask me all the time. I worry about the power grid. Im an old nuclear engineer. Electricity is a big deal to me and most of our infrastructure, not just the lights. Everything. That it could be pacemakers. It could be. That horrible scene in homeland was true. Unfortunately, it is. Youve taught us a lot. Thats what we want on our show, ray rothman, the ceo of red seal. Its fascinating and dangerous, and it should be solved. Mad moneys back after the break. He decided to save money by switching his motorcycle insurance to geico. Theres no shame in saving money. Ride on, ride proud. Geico motorcycle, great rates for great rides. These days. You are buying finish these days. I got a new dishwasher and they recommend finish. Really . Tive cleaning enzymes. Its unique powerball takes on anything. Choose finish. Anything meant to stand a body without proper foot n support can mean pain. N. The dr. Scholls kiosk maps your feet and recommends our custom fit orthotic to stabilize your foundation and relieve foot, knee, or lowerback pain from being on your feet. It is time its time for the lightning round and then lightning rounds over. Lets start with jerry in arizona. Jerry caller hey, mr. Cramer. Ive got a twopart question. After earnings last week, Goldman Sachs down graded the stock. The highpriced earnings have not fared that well. But maybe theres hope here. Bruce in ohio, bruce. Caller booyah from the cleveland waterfront. Nice. Caller crzo. I think chip johnsons done a good job. I like concho more than corizo. Randolph in massachusetts. Caller booyah, jim. Booyah. I was wondering what you think about colvis oncology. I dont like to chasing the spike. Its got priority review for ovarian cancer, and i think that you have to be in it last week to be honest. Lets go to hollis in florida. Hollis. Caller yeah, how you doing, cramer . Great. Gilead is best of breed. I cant recommend it. Lets go to pat in virginia. Caller thank you for taking my call, and thank you for all the help. Horizon pharmaceuticals. Ive got to tell you, this is the kind of company you can easily be in the cross hairs of should, but it could be. Lets go to dave in new york. Dave. Caller hey, cramer, how are you. Im doing well, dave, how about you . Caller very well. Im in fairhaven, new york, upstate new york. Thats fabulous. Caller great place, great place. How about stock too while were at it. Caller i have two of them, gwr. And nsam. Genesee is a decent railroad. I would prefer union pacific. That is the condition collusion of the lightning round the lightning round is when you dont get enough sleep. And your body aches. Youre not yourself. Tylenol . Pm relieves pain and helps you fall fast asleep and stay asleep. We give you a better night. Youre a better you all day. Tylenol . Today you can do everything in just one click, even keep your toilet clean and fresh. Introducing lysol click gel. Click it in to enjoy clean freshness with every flush. Sol. Start healthing. . Yeah, click . Hey, its the Phillips Lady theres a more enjoyable way to get your fiber. Try these delicious phillips fiber good gummies, a good source of fiber to help support regularity. Oh, dishwasher, why dont you dry my dishes . Oh, he doesnt know any better. You just need to add finish . Jetdry . In the rinse aid compartment. Its there for a reason. It dries much better than detergent alone. Sorry dishwasher. Finish . Jetdry . For drier, shinier dishes. This week you heard me debunk the bone headed decisions some make during panics like the flash crash and the strategies you can use to avoid them, whether theres concerns about the fed, brexit, brexit, china, i dont know. You need to have a plan for when before any of that, the first step in panic is diversification. Thats why we play, am i diversified. Ill let you know if your portfolios diversified enough or if you need to mix it up a little bit. We have one from jim frosty. G, lloyds, Royal Caribbean, am i diversified . And lets go through this. This is very complicated. We might know lloyds, lloyds is a british banks. Charitable trust owns it. Lloyds can be considered a spec. Boeing aerospace, Royal Caribbean cruise lines, and a health care stock, lets go with some of these have been knock out, or know, allergan. Lets go to charles in massachusetts. Caller hello, jim cramer, not only informative but educational, thank you. That is what we want. Thats what the show, we talk about that in People Magazine this week. Caller my positions are caterpillar, cisco, duke energy, ge and at t, with all the dividends reinvested. See, charles, did you hear what he said is . All dividends reinvested. This is the best portfolio ive seen for some time on mad money. Got general electric, nice yield, nice dividend, ceo, duke energy, good, i prefer dominion but i get that. Caterpillars go being to have a better year. Machinery company, diversified manufacturer and utility company. I really like that portfolio, and i love the yield, and yes, keep reinvesting like charles in massachusetts. Eddie in north carolina. Caller hey, jim, thanks for taking my call. I need to know if im diversified. Home depot, pfizer, u. S. Bank, Dominion Resources and emc. Oh, four out of five i like that. Dominion, thats a utility i like more than duke. And u. S. Bankcorp. What can i say . Someones hacked all our technology. Technology. Say, have you seen all the Amazing Technology in geicos mobile app . Mobile app . Look. Electronic id cards, emergency roadside service, i can even submit a claim. Wow. Yep, geicos mobile app works like a charm. Expect great savings and a whole lot more. These days. You are buying finish these days. I got a new dishwasher and they recommend finish. Really . You should try it. Unlike cascade gel, finish has active cleaning enzymes. In football going for two can be risky. In pizza . Its a sure thing. Now get two medium two toppings pizzas for just 6. 99 each. Thats right just 6. 99 each. Ingredients. Better pizza. I not a case for that Cyber Security company i just spoke to, red seal, it steals the ids of the living and the dead at 10 00 p. M. I got to watch this. A lot of people are talking about the stock of chipotle bottoming. I want you to go on your twitter account and answer our poll that will be on later, about whether you see lines at your chipotle. Dollar tree, dollar general, not yet, signet, no. Always a bull market somewhere, i promise to find it right here on mad money. Im jim cramer, ill see you tomorrow. The candidates digging as the personal attacks get uglier. Mississippi murder mystery, who killed two catholic nuns . Police searching for clues. The race to find more survivors narrows