Sometimes the stock market revaluates the entire basis of companies. We follow because of one metric, the metric of oil. You know, i have said to you over and over again we should never underestimate the power of the market to do stupid things, and the most stupid is a rally based on the price of oil, which is exactly what we got when the averages uturn pretty much in sync with a uturn it crude. No matter that the leaders of todays market were largely the companies that would be better off if oil fell. But thats not the nuttiest part of the stock market right now. I think its the kind of weird backandforth, intraday revaluation were getting of some of us Largest Enterprises thats really driving us crazy. Theres no better example of a revaluation and then frankly a rerevaluation than that of the stock of wells fargo after last nights resignation of ceo john stumpf because of whats now widely regarded as a massive multimilliondollar now, at first in after hours, the market cheered the elevation of timothy sloan, a 29yearold veteran of the bank, to the ceo chair with buyers moving up the stock by 2. 3 to 46 and change. Sloan has been the cfo and has moved up the ranks from the wholesale portion of the bank, not the retail portion where the massive chicanery occurred. So he was thought to be untainted by the scandal. But then just like football, upon further review, the market the political outlook in washington. Wall streeters accept quickly that sloan had nothing to do with what really went on at the retail bank. Were not even sure stumpf did either for that matter. When theres fraud at a bank, though, the head of the bank must always take the fall. Thats why i suggested it a month ago when it seemed heretical that stumpf might have to resign. It may mean some people say thing i could do right now is lead this company and lead this company forward. In fact, today we made actually an announcement about Product Sales goals. You know, we never intended for Product Sales or any dynamic or any part of a permits Management System to be misinterpreted. Well, hes gone, but the issue is will congress be appeased, not wall street . Congress represents main street. What happened at the bank. Its difficult to understand the relationship, say, of arcane cmos and cdos to the value of real estate and the housing crisis that precipitated the great depression. Its a lot easier to say, hey, how could you not see that bogus accounts were being opened on a regular basis just as the l. A. Times might be happening since 2013, especially when other banks didnt have that kind of growth . Plus its an election year, and were in populist mode. If the very powerful elizabeth warren, the senator from massachusetts, wants her pound naming an insider to the head job without callbacks of all sorts of goodies to those she thinks are the bad guys isnt enough. Plus im sure shell question the possibility that a person of responsibility, the cfo, didnt know about the scam to open bogus accounts in order to beat benchmarks and get increased incentives. I mean that keeps wells in the headlines on a negative basis. Hence the further decline in the stock. Ultimately wells fargo stock closed down 1. 256 . Average market and the average bank stocks themselves. Yeah, it got hit pretty bad. But now the question is well get a further revaluation tomorrow when wells fargo reports with the company having to reveal how much money it can make without aggressive cross selling, which until the scandal was the principal reason why investors, including biggest owner warren buffett, often felt that the bank stock was worth a premium to other banks. Will we still get that premium . That will be tomorrows judgment. Were not done, though. Revaluation. My prediction, whatever severe decree wall street determines for the life or death of wells fargo stocks premium price will once again be revaluated if the fed were to raise rates in december. In fact, wall street would pretty much forgive wells of any transgressions if we get a rate hike because of how much more wells will make off your account, and stumpf will become frankly a footnote in the banks long history. Revaluation is a nightmare for individual investors like you because the gyrations are as sickening as any coaster at home gamers, investors, can handle say a gentle disney world or universal ride. The market is just not willing to comply, though. Just to be sure, we told club members of actionalertsplus. Com today that this decision does limit the downside to these levels, and stumpfs departure wont impact the stock that much because it yields 3. 4 . Its probably worth buying. Where else does this very confusing day to day revaluation occur . Pretty much everywhere. The airlines have been total of the airlines that occurred this session . Heres the most bedraggled group in this market, one where the big three, united, continental, and delta and american have systemically underperformed the rest of the market. Delta reported this morning, and we got one more quarter that missed the mark. Delta, at one time the most consistent of performers has been the model of inconsistency. The company didnt let you down with a series of excuses. Everything from terror to brexit to allegis plagued the quarter. But in a group thats struggling to prove to investors that the last few years of good earnings wasnt a fluke for the key metric, revenue per seat mile, definitively turned down, delta revaluated the entire industry by pledging Slower Growth for next year. Fewer airlines, less capacity coming on. So the stock rallied at 1. 88 not on earnings, but on what could be the end of fare wars caused by excessive growth. The group was the strongest in the entire session. I have felt the airlines represent a great value and still do with southwest being a ends. Its not too late to buy the group. Who else got revaluated . How about ulta beauty . The stock jumped over 11 today. Heres a company weve championed for ages because it fits into that sweet spot of what consumers love. Remember our thesis of what the consumer believes she cannot live without uber, the iphone, and now more than ever given that samsungs phone has become an object of terror on an airline, and cosmetics. You get an iphone, you get incredible resolution. Its okay when youre taking pictures of an Oregon Forest rn its not so hot when you have a blemish. So makeup is a necessity. Who sells the best makeup for less . Ulta. With a tailwind like that, you have to get behind the stock. However, ulta has become a victim of its own success. Wall street analysts, who help define what Institutional Investors will pay for a stock, got sick and tired of ulta beating and raising guidance. When that happens over and over again, as weve seen on the show, the analysts decide a company is perfect. But as the immortal joey brown said at the end of some like it hot, nobodys perfect. Numbers actually hurt the stock because the analysts were expecting beautiful and got it. However, today as we shall find out when we speak to ceo mary dillon later in the show, our insistence at being fickle on this stock was a big mistake. Thats right, you shouldnt have been fickle about this. Our insistence on staying behind the stock was justified when the company told us a story of surprisingly positive short and longterm growth. To me, this rerevaluation was silly. Dillon and ulta never really there was no reason to revalue the stock down after the last quarter to begin with. Because of that secular tailwind of the need to wear makeup, to post the best selfies on instagram and facebook, ulta is the best play there is on the trend. But the yoyo of ulta stock, its why we find the market so difficult. Because it throws you for a loop and then another loop and then still one more loop when nothing really happened longer term. Companies need to be evaluated over a longer term period than 24 hours. Become the unfortunate nature of the beast. If you choose to play the shortterm game, heres what happens. You will buy ulta at 270. You will sell it at 235. And then you will buy it back again at 265 when if you had just held on to the darn thing because the cosmetic thesis was always intact, you would have done so much better. Then again, that would mean being consistent and disciplined in your view, two characteristics this market badly lacks and has all of 2016. Lets go to wesley in california. Wesley. Caller hi, jim. Thanks for taking my call. The feds last week came out with a hawkish outlook for interest rates. Do you look at gold and silver as a buy considering the strength its shown over the past four quarters . Short and long term, are you buying . No, wes. I think gold should be 10 of a portfolio. Its a great insurance. But ive got to tell you that when rates go up, i think people are going to want to gravitate so i do believe, frankly, that gold will do worse, not better, if thats the case. Nick in ohio. Nick. Caller hey, jim. So Deutsche Bank, considering all the negative sentiment surrounding the bank and how its share prices have suffered lately, regardless of its size and importance to the european economy, do you see deutsche as a positive opportunity and a Value Investment in the mid to long term, or do you see it as kind of a too risky situation have cleared up . You know what, nick. Im going to put it in the too risky situation because we have a lot of our bank stocks that seem risky. But you really go off the reservation when you go off Deutsche Bank because they may need to raise capital. And if thats the case, you may be able to find that stock down a lot. I would not own Deutsche Bank because i think theres too much risk. What a difference a day makes or even an hour. This markets wildly inconsistent. That doesnt mean you should be. Stay focused on the longer term, and you will get rewarded. This market, investors seem to be in the midst of a honeywell headspin. Tonight im talking with the ceo to find out if its drop could be an actual opportunity to buy. Then, now you see em, now you dont. Im talking about the themes disappearing before our eyes in this market. Ill tell you how it could impact your portfolio. And did you see ultas stock today . It was a thing of beauty. Im sitting down with the ceo after its investors day to see if its winning the beauty battle. So stick with cramer. Announcer dont mi a 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. Miss something . Proper foot support can mean pain. 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. Dr. Scholls. Im making smoothies how do i check my credit score . Credit karma. Dont worry, its free. Credit karma. Give yourself some credit. . . Dry spray . . . Thats fun. . . Its already dry no wait time. This is great. Its very soft. Can i keep it . laughter all the care of dove. Now in a dry antiperspirant spray. Awarded best of beauty by allure. Honey, arent we having friends over . It reeks in here. I stole the other teams mascot for good luck. We need to wash this room. Wash it . Yeah, wash it with febreze. For all the things you cant wash, use febreze fabric refresher wow [inhales] it really smells great in here. Dog barks and try pluggable febreze, with up to 4 times the freshness in one refill. Pluggable febreze and fabric refresher earlier this month, honeywell, one of our favorite industrials on mad money held an Analyst Meeting where they upgraded guidance. A picture that was interpreted as grim, and ive been a long term supporter of the company. Stock fell promptly 10, though it has regained some of that ground in the past two days. Ive wondered ever since where the worlds economies have slowed to the point that even honeywell cant deliver stronger honeywell filed a document that presents a longer term view of the company and seems to clarify a lot of whats concerned me about the previous presentation. Thats why im talking to the ceo and chairman to find out whats happening. Good to see you. Dave, were neighbors. Weve known each other a long time. I listened to the first presentation, and i said, holy cow. Maybe this is why they felt they had to buy united technologies. Then after the bell, i saw a presentation that instead sending the stock down 10 bucks might have actually had the stock go higher. Mmhmm. So what happened here . What happened in that third what happened between one presentation, which was very short term oriented frankly, and the second deck that has come out after the bell that to me offers a view of 2017 that is incredibly strong and reminds that you reiterated guidance. You didnt cut guidance. Thats just the point we kept trying to make. It seemed to get lost in the Third Quarter because if you recall, that presentation to splitting acs, want to be able to explain the reorg. And we wanted to say heres an update on everything. We spun a business. We sold a business. We did a bunch of restructuring, so we had a lot of moving parts. Lets clarify all this so that earnings day its not going to be a problem. And i have to say i was astounded by the reaction. If you recall, we actually had in there, 2017, this is what it looks like. But, dave, i got to tell you did talk right up front about weakness in aerospace and a lot of people associate honeywell with aerospace. But there were other things in the deck tonight which made they think there you were negative on oil and gas and that the issue of aerospace is not nearly as dire as what people have made it out to be. Thats true on aerospace. One of those things that we have to deal with because the biz jet market is declining. Commercial is still doing fine. Year. Ive said that several times, and we were more definitive saying its bottomed in the Third Quarter. Right. Well, more definitive, i mean actually, i take it back. We also talked about fourth quarter, how uop in particular was going to be coming back. Okay. But it just seemed like and we tried to say, you know, on the guidance for the year is we started off at 6 to 10 eps, we took it to 8 to 10 in july, and now we made it 8 to 9 , which is hardly dire. B back after this. Even at the beginning of our interview that you reshuffled the portfolio. What was lacking when i listened was that you were improving the Growth Profile through Portfolio Management which is something that you really made clear tonight. Why did you feel you needed to clarify that . Because the long term message seems to have gotten lost. Its one of those where i think i give credit sometimes for we right. But we didnt really put it together in an overall package. So shame on me for not communicating that more but i didnt think anybody would be interested in that at the moment. Theyd want to understand exactly what the moving parts were. True. But its only in this deck that i really felt, to use your term, that there is a favorable setup for 2017. Oh, yeah, and weve been investing heavily because thats one of the other things we end up hearing is gee, with the transition, daves been squeezing the business in order to generate margins. Yes, that was another things its just the opposite. I said i can understand how you might feel that way. I can understand feelings, but then you should at least search for some data. The capex reinvesting with about 1. 6, 1. 7 times. Number of salespeople, weve added 1,500 salespeople which dont pay off in the first year. Its an expense that youre taking. Take a look at r d, over 7 of sales. The amount of restructuring dollars that we take, all of which we take into expense, and concessions that we spend, which we all expense. The original equipment, the charts showed very clearly this time that you are at the peak of the original equipment incentives. And its a 25 cent head wind this year. Going back to the previous meeting, i had felt that 2017 was going to be filled with perhaps everrising oem incentives. Thats not true. No, no. Thats the way i felt and then alcoa pretty much said that 2017 is not going to be so hot, so then you start extrapolating. Now, lets talk about internet of things, and turbo gold nates. These were terms that were introduced about software, who youre hiring. The honeywell thats in this deck is a company thats moving to software and service. The software business, as you know, is really important to us. Almost half of our engineers are developing software today. I think if you look at our products, you say its chemical, mechanical, but half of our guys are developing software. Its a big deal for us. Internet of things and our m and a profile, thats weve focused on software as much as we have. When it comes to not just digital but physical, how do you match it . Talk to me about the connected aircraft so i feel better about it even if air pace is slowing. Youll watch the super bowl this year. Thats very imp. Go, go again. All new planes will be allowed to stream fete infliction. Were in the process of getting all the ole yum certified. Hopefully well do a bunch of that during the course of this year. Once thats all certified, then they can start putting on the new equipment. And youll be able to download a twohour movie in two minutes. You can have a hundred passengers doing it at the same time, and it will work. Okay. And you can be 45,000 feet to land. So its quite impressive. A lot in here about the notion of so much of your business is energy solutions, which, again, is a secular growth market. Yeah. Well, when it comes to Energy Efficiency and the world growing from 7 billion to 10 billion people, air, water, land, cleanliness going to be more and more important. Energy efficiency is going to be more and more important. 50 of our portfolio addresses that, and if you take a look at the new refrigerant that weve developed, this thing is magnificent and has a zero ozone depletion and has Global Warming potential less than co2. So everybody always gets cranked up as a factor of co2. This is actually less than co2. Its that good. Now, we know that this is, i believe, your last big Analyst Meeting because youre retiring. Did you do something would you say because again i want to qualify this because the stock yeah, i was shocked. There have been times where you have been so conservative at the beginning of a Conference Call that we have had to talk about that. I mean i expected a swan song that was more positive. Yeah. It was conservative, dave. For instance, i did not see the slide, honeywell is a bargain in the previous analysts meeting, right . It left me thinking honeywell should be sold unless you can be united technologies. People made decisions to sell the stock, dave, and that was harsh, but they did. Well, you know the part thats unusual about that is that i get a lot of comments from analysts that they dont want me focusing on pe or saying that were a good deal, and i keep saying, but thats an important part of the story is that were still a good buy. And if you take a look at our longterm earnings, what weve done since 2007 versus our peers, and you take a look at price to earnings, and this is a chart showing versus three. Its just very youre a cheaper well, especially after the decline. So if you had it to do over again, would you use this deck and not what you used to . I would put a lot more of the stuff that ive already got in there. Golden age of turbo. Golden age of turbo, this is going to go on for another 10 or 15 years. Yes, i wish i included a lot more of this stuff. I gave credit for people understanding what our longterm profile was. I was wrong. This is one where i could have done a significantly better job of communicating this story, and we tried to do it in the context of 2017 is going to be good. But it seemed to get totally lost. Well, i think that you just clarified it for a larger and frankly more important. Thank you so much dave cote. Outgoing ceo and chairman of honeywell. Mad money is back. For investors, but is this stock still retail royalty . I would say were really set up for many years of growth ahead. Announcer cramer has the ceo, and he finds out when mad money returns. At cough doesnt sound so good. Well i think you sound great. Move over. Easy booger man. Take mucinex dm. Itll take care of your cough. Fine ill text you in 4 hours when your cough returns. One pill lasts 12 hours, so. Looks like im good all night still not coughing. Not fair you guys waffles are my favorite ah some cough medicines only last 4 hours. But just one mucinex lasts 12 hours. Start the relief. Ditch the misery. Lets end this. Incredible bladder protection in a pad this thin, i didnt. Think it would work, but it does. Its called always discreet for bladder leaks, the super. Absorbent core turns liquid to gel. I know im wearing it but no one else will. Verything, so we know how to cover almost anything. Even mermutts. 1940s aqua music burke and we covered it, february third, twentysixteen. Talk to farmers. We know a thing or two because weve seen a thing or two. How do investment themes keep disappearing before our potential buyers and weakness in the entire market. Last nights revelations that chinese exports unexpectedly shrank stuck a knife into the commodity reality that had seen bhp share price increase from 20 to 35 this year. Both commodity stocks lost about 3 today giving up some hard fought gains. It looks like a put a definitive bottom, this overnight number busted the narrative. It was a narrative that denied everything from free port to come minutes to caterpillar. Pennies off the tie and is up 369 for the year. Not only that, but just the other day we got chinese oil numbers showing 24 gains in september. These are hardly the stuff of a chinex 10 and a 1. 9 drop in imports. Losing china right now going into Earnings Period could be a pretty big negative given it had been thought to be in the positive column about a month ago. Chinas better theme, one that i am not going to give up on based on one nights figures, ive got to tell you, i still think its the u. S. Is not better despite the endless chattering that the feds want to move in december. So, wow, china not so good. U. S. Not so good. It could be a problem for us. Obviously whats happening right now with the selloff is were building in a federate hike. Its not just china though. The one two punch of honeywell as well as alcoa is pretty hard hitting. We know that long term travel projections are strong but we have a morass in the actual supply and demand of planes. Both honeywell and alcoa recently told us that their near term adjustments to be made in aerospace, near term adjustments down in the growth rails. Alcoa specifically talked about issues in the air frame and the aeroengine businesses and how theyre not as strong as they were. Now, you heard honeywells ceo dave cote talk a more positive 2017 but its a lot murkier than we thought just a few months ago. Cannot lose this theme for long before you get a host of earnings disappointments and concomitant downgrades. Could be some bad pin action coming up. In the last two days, china and aerospace have been laid out. What others have been challenged . How about cybersecurity. Weve heard from both palo alto and prove point last week when we were in San Francisco that cybersecurity is alive and well regardless of economic activity. Then tuesday, forth net preannounced a very disappointing quarter. By the way, disappointing is their word, not mine. They talked about a slowdown in the Way Companies are buying cybersecurity. I thought the theme was finally theres samsung. You cant talk about themes lost without mentioning the the huge cost of that recall and the switching thats going on from samsung to apple could impact one of the remaining red hot groups, the Semiconductor Equipment companies. Why . Because samsung is the largest buyer of the equipment that makes chips. This could spell some bad news for red hot stocks. These have all been at or around the new highs for a long time. You put it all together and you can see how the loss of large areas can cause declines of the kind of magnitude weve been getting of late. Let me give you the bottom line. With the fed making such loud noises about tightening, lets see the chinese numbers as well as the aerospace, cybersecurity and potential Semiconductor Equipment shortfalls are the exact opposite of narratives this market needs to go higher into what now promises to be an all too volatile earnings season. Lets go to edward in alabama, edward. Caller hey, jim. Big booyah from alabama. Thank you. Thank you for coming on this show. Washington has done little to fiscal policy. You can see that in our crumbling roads and bridges and other infrastructure. So now with the election sure to bring some change we dont know kind, but some change to washington, im predicting more federal spending on these much needed infrastructure projects. With that in mind, using your guidance and your teaching, i domestic, not global, highway and bridge engineering and construction. I like the stock gva, but id like your opinion. Edward, i got to tell you, gva is a little too volatile for me. We have liked Martin Marietta materials. Both that and vulcan, the stocks have been doing quite poorly. To make that bet. Its just too risky frankly. All right. China aerospace, cybersecurity, some of the markets best investment themes are disappearing before our eyes. Much more mad money ahead. Ulta beauty can help you look like a million bucks, but is it more than skin deep . Ill see how this wall street stunner is faring after todays move higher. Then when it comes to retail, is it best to stick to the classes. Im talking to levi strauss to is in its jeans. And all your calls rapid fire on tonights edition of the its the Little Things in life that make me smile. Spending the day with my niece. I dont use super poligrip for hold, because my dentures fit well. Before those little pieces would get in between my dentures and my gum and it was uncomfortable. Even well fitting dentures let in food particles. Just a few dabs of super poligrip free is clinically proven to seal out more food particles so youre more comfortable and confident while you eat. So its not about keeping my dentures in, red 97 set red 97 did you say 97 . Yes. You know, that reminds me of geicos 97 Customer Satisfaction rating. 97 . Helped by geicos fast and friendly claims service. Huh. Oh yeah, baby. Geico. Expect great savings and a whole lot more. I have asthma. One of many pieces in my life. So when my asthma symptoms kept coming back on my longterm control medicine. I talked to my doctor and found a missing piece in my asthma treatment with breo. Oncedaily breo prevents asthma symptoms. Breo is for adults with asthma not well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Breo wont replace a rescue inhaler for sudden breathing problems. Breo opens up airways to help improve breathing for a full 24 hours. That increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. Breo is not for people whose asthma is well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Once your asthma is well controlled, your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. Do not take breo more than prescribed. See your doctor if your asthma does not improve or gets worse. Ask your doctor if 24hour breo free at mybreo. Com. Few companies have enjoyed a greater transformation under a ceo than that of ulta beauty with mary dillon at the helm. We have said over and over again that this company is the pulse of the consumer and is riding an amazing wave of the need to look good the moment you walk out of your house or apartment because to make it so you presume youre going to be on candid camera. Weve loved the stock ever since dillon came to the company, and today ulta beauty had a fullday Analyst Meeting where it raised guidance. Investors clearly like what they heard from the company as ulta shares rose more than 11 today, bringing them back within striking distance of the alltime high set in august. I want you to know more about this company and its analyst day, which is why we are th mary, your stock moved 27 today. Tell us what you said that you think people got excited about to move the stock that much. Well, you know, today we talked to our investors about a longterm growth plans, and we simply updated them about how optimistic we are about our ability to continue to drive market share growth and unit growth and very excited about the future for ulta beauty. To do is because it is so comprehensive, and theres a lot in there about the notion of millennials, teens, different demographics embracing cosmetics and hair because its a new generation that knows theyre going to be photographed. Well, thats right, jim. Were really focused on the beauty enthusiast, and thats a segment of women who love to shop for beauty. But everybody has got a great phone in their pocket. Who doesnt want to look good in a picture . Doesnt. So we really play into that in terms of millennials and teens. And also latinas. One of the Fastest Growing segments in the population and they love ulta beauty as well. I would say were set up for many years of growth ahead. There are Many Companies that try to do a Loyalty Program. In the end its just about discounting. Your Loyalty Program has far more people in it and its much more successful, but it is not ultimate rewards program. We have 20. 6 million members today, and our guests love the program because its very simple. The more she shops, the more points she gets, and she can use those points for anything in the store. So its a great way to drive value for our guests, and we can also really target her with offers that are exciting for her. We know what she likes to buy, and we can bring her new and exciting offers, samples, and promotions all the time. One of the things i found was really kind of went through the whole presentation is theres a lot bigger market than people realize. I think a lot of people felt that maybe ulta could be at one point tapped out. Anything but that after i read the deck, right . Right. Well, you know, its interesting. So weve been growing like crazy. Im proud of that, but were still only a 4 share of the 127 billion beauty market in the u. S. Today. So we see an easy path to continue to grow, in fact double our share we believe over the is the way that she wants to shop. We call it all things beauty all in one place. All different categories and price points and brands and services, right . And so were set up well. We can continue to drive great profitable growth. Now, we know that walgreens decide they want to be in there very big. We know that sephora is a real competitor. What are you doing in order to fend off the competition . Well, you know, honestly all we can do is focus on who we are, who are guest is, and deliver a great Guest Experience im really proud about our associates in our stores who love what they do every day. So theres a lot of places that you can buy beauty on any given day, but nobody brings it all together in one place like we do at ulta beauty. So all we can do is run our office, not to use a sports analogy but it actually fits here, i think. We are trying to figure out the few retailers that are left that seem amazonproof. When i look into your ecommerce strategy, i look into your social media strategy, i think versus amazon. Is that intentional, or is it just because of the nature of having hair care, nature of cosmetics, but youre doing something that has made it so amazon has not dented your growth. Well, like i said, we know that our shopper loves to come and shop in person for beauty, and she also buys a lot on line as well. Our guest who in fact buys online with ulta beauty and in our store is our best guest. But what shes buying online is quite incremental. Shes not just replenishing like items but buying new and exciting things all the time. So we just think that weve got a model at ulta beauty that works really well for the ghosts that guests that were focused on, and were focused on making sure we deliver on that promise every single day. I think one of the things that i look, i went over this story with my daughter before i went on. She says like a lot of people she prices and sephora and buys at ulta. How much on average do you find you know what, actually, at ulta we carry a whole range of brands and categories that nobody else offers. So weve got cosmetics, skin care, hair care, fragrances. We have the biggest array of products and our prices are very competitive with anyplace else that our guests might shop. But by using the royalty program, she gets points she can then use at ulta for anything in the store. So the value equation at ulta is quite compelling to our guests. Excellent. Look, i want to congratulate you. You know i felt that this stock was went down ridiculously 40 points after what was a very good quarter. You clarified a lot today. Really appreciate your coming on. Mary dillon, ceo of ulta beauty, thank you so much. Thank you, jim. Look, the story is not done. As a matter of fact, i feel its very early on. I know a lot of people felt it was tapped out. Read the deck. Listen to what mary said. Mary dillon, ceo of ulta beauty. Mad money is back after the break. Hey team, i know were tight on time, but i really need a. Sick day tomorrow. Moms dont take sick days. Moms take nyquil severe the. Nighttime sniffling,sneezing, coughing, aching, fever best. It is time its time for the lightning round thats where i take your calls rapid fire. You tell me the stock. I tell you to buy, buy, buy or sell, sell, sell. Well play this sound [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning round on cramers mad money. Lets start with richard in arizona. Richard. Caller tpi composites, jim. What do you think . Oh, thats a tough one. You know what, i think ive seen some big orders for wind. Im going to stay away from this one. I think this is part of a complex that has already had its day frankly. Lets go to irving in new york, irving. Caller yes, im here. Irving go ahead, its jim. Caller yeah, hi. Go ahead. Caller are you ready . Yes, im ready. Its jim. Caller oh, hi. How are you . Im good. How about you . What stock . I just wanted to know your opinion of kmi. Is it a buy, sell, or hold . Okay. Kmi has got, its an inexpensive stock. I lost a lot of faith when they cut the dividend but i can understand buying it. How about james in florida, james. Caller good evening. Before i ask my question, i just wanted to compliment your staff. Im calling about opko health. Right. Guys every day. Opko health recently had didnt get reimbursed for one of its tests. Jefferies came out with an incredibly negative note about it. I remain faithful to the ceo. Lets take one more. Israel in new york. Israel. Caller jim, i want to know if biotech and but adam at the street says price gouging, 65 upside. I believe the symbol is alia. I like it. I think its very good. I think youre right. But, remember, these are really speculative and a lot of speculation stocks have not worked out in the biotech area. But i do like t. I also like radius by the way. And that, ladies and gentlemen, is the conclusion of the lightning round. Announcer the lightning round is sponsored by td ameritrade. You know your heart loves your brain, and your joints really love them too . Introducing megared advanced 4in1. Just one softgel delivers the omega3 power of two regular fish oil pills. So give your body mega support with megared advanced 4in1. . Music . 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. The state of retail in this country. How about the world . Seems to change every single day. Yet i think there is consistency where there is quality but you take levi strauss, the private company that got its start when levi strauss opened a dry Good Business and developed work pants that could hold up under rough conditions. This company basically invented the jean, but since then has done a lot more than that. Its made profit progress because the companys results are superior to just about any publicly retailer i follow. Whats the secret here . Why we dont ask president and ceo chip bergh. Mr. Bergh, welcome back to mad money. Good to see you, sir. Good to see you, too. Let me just move my eagles jacket that i have that is thank you very much. Your levis eagles. I tell you, i regard this as personalized, which i love. Please have a seat. Absolutely. Thank you. Now, you are a private company, but there are some reporting requirements you have because of some debt. And you put up some amazing numbers. So im trying to figure out is ethos that you have . Why is it that you buck the trend . Well, i think there are a couple of things. First of all our strategies are working, jim. We, about four and a half years ago, we declared three key choices to focus on our profitable core business, which generates all the cash, and invest that cash back into the two things that are going to drive growth. One is expanding for more. Weve got lots of categories where were underdeveloped on the levis brand, and second is me so thats a big part. Weve also got a big global footprint of retail stores, and we sell levis in 110 countries around the world. And then the last big thing is the brand is resonating again. Weve brought the brand back, and that was a big part of the mission when i joined the company. Okay. Lets talk about that because we always hear about mall traffic being down. Youve got the direct to consumer initiative. We also here about the idea that youre contradicting your performance is contradicting both of those. Right. Well, weve grown now three quarters in a row. Weve grown three years in a row, a profitable topline growth, and it is because were resonating with consumers again. And its young consumers. There is more of the trend back towards authenticity. Right. And, you know, Consumers Want value at the end of the day. They want value, and they buy into values. Know. This is a brand that was rooted in delivering a great value. You mentioned it in the opening. Built for the miners, the gold miners, sturdier pants that are going to last longer. And to some extent i like the juxtaposition levis. We are fashion that lasts forever. Theres a phenomenon that goes on because you mentioned worldwide. I have a place in mexico. Much of a currency, it seems to me a little hyperbole as the peso. What is going on with, say, mexico and 501s . Its true. It actually goes back to when we were kids. When i got out of college, a lot of my friends wanted to tour around Eastern Europe and russia, and you could travel with a suitcase full of levis as currency. This is insane. Because of the power of the brand. At the end of the day, consumers powerful as currency. It is gold. We were out in San Francisco, and weve been kind of schooled by really Great American companies that sustainability is key to attracting the right people, the smart people. Youve gone a little step further. Youve always had Levi Strauss Foundation, weve known, but youve got a step further in terms of some worker initiatives that i want to talk about because this is how you attract people that are smart enough to work at levi. You were just out in San Francisco last week. Francisco, and a lot of people that work at our company could just as easily walk down the street and go work at sales force or go work at twitter or facebook or wherever. Their skill set is very fungible. A big part of the reason why they work at this company is because of the values of the company and the types of initiatives that we do. And we really talk about profits through principles and the impact that this company can make in the world. And we Just Announced this workel and were now opensourcing it. And the concept is very simple. Its the 25th anniversary of our terms of engagement, which set the standard for how we were going to operate with our suppliers around the world. And initially the terms of engagement were really focused on the bottom of the pyramid. You know, safety. Right. Thats why we werent caught up on any of these issues in the got stringent standards. The next level up the pyramid, though, is beginning to focus on workers well being. You know, we manufacture in a lot of developing markets. The workers in the industry are largely women, and what we wanted to demonstrate and we initially piloted this through the Levi Strauss Foundation is we wanted to demonstrate to factory owners that if they invested in the well being of their workers, that it would generate a positive return. What we discovered is for every do 4 return to the factory 4 . 4. It reduced absenteeism and lowered turnover, and it makes sense. Now its scalable because the Business Owners see that this is something thats worth investing in. Well, im so glad you talked about that because weve been negligent, i felt we talk about this is something that must be talked about. Listen to the top, means it even more like what mad money i want to thank chip bergh, Levi Strauss Company president and ceo. Some brands really last. Stick with cramer. Dit karma. What the . . . Youre welcome. I just helped you dodge a bullet. But i was just checking my. Shhh. Dont you know that checking your credit score lowers it just be cool. Actually, checking your credit score with credit karma doesnt affect it at all. Are you sure . Positive. So i guess i can just check my credit score then . Check out credit karma today. Credit karma. Give yourself some credit. Sorry about that. Were going to prove just how wet and sticky your current gel antiperspirant is. Now, were going to show you how degree dry spray is different. Degree dry spray. Degree. It wont let you down. Today we re going to make their secret recipe. Turn it off im trying to ust one wash. Removes over 100 stains in one wash. Halftime scott walker. Its the fiveyear mark next week, and they have an incredible lineup of shows coming. Watch for mark lasry, nelson jim chanos, bob kraft from the bot, and more and it all starts monday on halftime at noon eastern. Well done, judge wapener. Okay. Ulta, its not done. Stock up 27. Typically you wouldnt chase. Let it come in, a little, but its going to take out its new high. Honeywell being revalued right now. I like to say theres always a bull market somewhere. I promise to try and find it just for you right here on mad the claims are preposterous, ludicrous and defy common sense and logic. I cant believe it, im saying that a candidate for president of the United States assaulting women. The heat is rising. And e direction this election takes is almost anyones guess. A Major Military offensive against isis is prime for launch. New details straight ahead. Just how powerful are those cell phone batteries in your pocket . Nbc news investigates. Starbucks gets ready to deliver a whole different kind of buzz. Check out what ellen saw when she watched the last