Buy, buy. In fact, competition defined the winners and losers in todays hohum session. Lets start with some winners. Because the performances were so stark they deserve to be called out right at the first of the show, for example, look at the stocks of the airlines today. First, there was theul of a series of mergers that left a few major airlines. Obviously, supply came out of the doggy dog route, allowing airlines to raise prices. Less competition, a robust economy means everrising most airlines werent able to take advantage of the rise in prices to expand. They couldnt add enough capacity if they wanted to. But then 2015, the airlines added not only lots of planes, they tried to take advantage of higher prices by competing with each other, just like the old days. Well, the pricecutting led to lower earnings per share. Very few are interested in investing with those with stocks shrinking. The airlines became the singleworst sector to own in the market. The increase in terrorism overseas made competition worse. The group has been a house of because no airline would stop adding new capacity lest somebody took advantage of that. Theyre increasing from 5. 5 down from 4 . It means the next years earnings estimates are now too negative. The news cost a lift in the american and continental gaining near 5 . We had an inkling that things could be Getting Better when we spoke to oscar munoz on the anniversary last week. Given how far behind these stocks are lagging, theyre not done. They have more room to run. The basic storage devices, the two principle pieces of better Gross Margins at sandisk. When Many Companies give up making the chips because theres too much competition, then prices, asps go higher. Prices went higher for san disk. So prices soared for western digital. This is a very big deal. Now recently i mentioned how hp, inc. Talked about tightening supply for its parting. That was dram and flash. Its not too late for you people. Because micron makes both. Microns stock is way too low versus the possibility of i think it should be bought at 17 and change. How about the flip side . What happens when there is too much competition . All right, just take a look if you can bear it, at the stock of sprouts farmers markets. Sprouts, a once nimble, excitingtu stealing market share from whole foods. And the latter began having the first hiccups in its own numbers. Well now its been downhill ever since. Today sprouts announced it would have the samestore sales that its actually a nogrowth story with shareholders fleeing, with sprout selling nothing but spam and velveeta. It turns out that the rest arent oblivious. Target and walmart decided to cut these boutiques. When you start a price war, everyone loses. The pin action for sprouts has plummeted within 13 . And kroger down 5 and 4 . Today General Mills spoke at a conference and lowered the goal because the yogurt markets more competitive tan they predicted. White wave has set off a yogurt price war. There goes the Gross Margins. Busters. It reported a sale the number i dont think was helped. Again one of the reasons why to a pulp, is that almost daily we hear a story of supply taken out of lesser competition, but statement theres almost the story of a price war. That ying yang is a reason why this market does nothing. Heres the bottom line. Theres just enough competition to keep stock in check. But when competition lessens, with stocks that jump and jump high. John in florida. John. Caller thank you for taking my call. Of course. Caller lets talk about the dow and dupont merger. You gave a little strategy regarding walgreens and rite aid. What if the government doesnt approve the merger, and queson before that, should you employ some type of put strategy . No, you dont want to employ a put strategy. You do want to own dow, nice yield. Duponts, i like them both, but dow is the one you should own. Gary in illinois. Caller booyah, jim from the caller my question is regarding jm smucker. Sjm. And i know we like fundamentals around here, but my question is not about fundamentals. Fundamentally, this is a company i want to own for my portfolio. For the long term. Short term wasnt up because of pet food fighting. The main problem with smucker is that the pet food business had a lot of competition, and guess what happened, the numbers went down. I think at 140 makes sense. Im sorry i talked over. Dave . Caller since reporting its Second Quarter results last thursday, lululemon has a is this a good time to buy more of yes. That Company Stock went down because it really shouldnt have gotten that hammered. I like the spending for the futures. This is the right level to buy. I embrace lulu, right here, right now. Okay. Competition. Is always separates the winners from the losers, and things are no different in the market. Stocks are left to slug it out while those are left hurting. On real money tonight, dave buster reported earnings yesterday, but it isnt all fun and games. Ill tell you if its time to play. Then talk about grounds for change, im sitting down with starbucks Howard Schultz to inspire engagement and hear about how its business is. And the billionaire activist investor made a 1. 2 billion bet on burritos, and ill tell you if you should follow his lead. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer madtweets. Send jim an email to madmoney. Cnbc. Com. Or give us a call at 1800743cnbc. Miss something . Head to mad money. Cnbc. Com. . . when you are suffering from chest congestion but you have got a full day ahead of you, try mucinex 12hour. Only mucinex has a unique bilayer tablet. The white layer releases immediately. Mucinex is absorbed 60 percent faster than store brands. While the blue extended release layer lasts a full 12 hours. The roses are blooming in herbal essences hair is delightfully fragranced with notes of moroccan rose and the freshness of springtime unforgettable, wherever you go the scents you cant forget. From herbal essences, blooming now . . Special k nourish. Apples, almonds, and raspberries. H. Heartburn. Sorry maam. No burning here. Try new alkaseltzer heartburn relief gummies. They dont taste chalky and work fast. Mmmm. Incredible. Can i try . She doesnt have heartburn. New alka seltzer heartburn relief gummies. Enjoy the relief. Wildlife rescue workers open up a lot of dawn. Tough on grease. Yet gentle. Dawn helps open. Dawn saves wildlife. . . One day a rider made a decision. The decision to ride on and save money. He decided to save money by switching his motorcycle insurance to geico. Theres no shame in saving money. Ride on, ride proud. Do we need to be concerned about the stock of dave and busters, symbol play for you home gamers. The stock of dave and busters has been aea been working its way higher since it became public nearly two years, 2014 of october. It has tons of room to open new stores in north america, which its stock has been climbing and climbing. The stock got hit today, falling 1. 34 or 2. 9 . You would have thought these busters posted a 6 earnings beat with higher than expected revenues, and this is good news. The samestore sales tell you how well theyre doing, and they posted pretty puny sales growth. Thats down 10 Percentage Points from last year. They cut their samestore Sales Forecast by a full percentage point, do you to the5 dave and busters is strong concept. Theres a lot to like especially when it comes to Profit Margins. Lets check in with steve king, the ceo. Welcome back to mad money. Thanks, jim. Happy to be back. Ive got to be certain. You know i love the concept. Should we be more concerned Going Forward about dave and busters . I think theres a lot of reason for optimism in the second half of the year here. First of all, our rollovers, as you indicated, we roll over a 11 comp from laea quarter. We have softer rollovers from the balance of the year, and we feel really good about our promotional lineup from advertising sports standpoint, still building that d and b sports franchise. We feel very optimistic about the prospect for the rest of the year. Is it going to be online . Or tv . That could boost sales. So were National Cable advertiser annually. Were jet to determine exactly what were going to do in the third quarter. But were likely to add a couple weeks to the Fourth Quarter as well. We just found that cable advertising particularly, we do a lot of adverng sports has been effective for us in terms of getting our message out. Clearly you believe in the concept. Because you raised the number of stores that you put in. Plus i know macys closing 100 stores is Good Opportunity for you. We feel really good about the returns that were getting in over the last several years weve averaged over 40 year on cash returns for those stores. So bumping it up from our perspective and adding some Capital Expenditure to that part of the business makes all the sense in the world. One thing people particularly baby boomers, they love experiences. Experiential. And youau youre talking about that Macro Economic environment for casual dining. What the heck is going on in this country that weve got good employment growth but the casual dining environment is being hurt. Is it because its so cheap to go to the supermarket now and stay at home . Its always been cheaper to with to the supermarket and stay at home than it has been to go out and go dining. But i dont really think thats in the Second Quarter, we thought that the callender shift of memorial day moving back about a week and having two days between that and the fourth of july and how that affects school calendars, the primary issue. Then we got help from the weather. Then third was this Macro Economic. And really, were teeing off of reporting. I cant think of many brands that didnt report a slowdown between q1 and q2. Youre absolutely right. With the possible exception of jackinthebox, maybe, because of problems with chipotle, everyone had the same kind of numbers. I want to thank steve king, ceo of dave and busters. Thanks for coming on the show. Thanks, jim. Appreciate it. If it were really bad news, this is one of our absolute favorites. Mad moneys back after the black. Coming up, cramer goes one on one with the founder of starbucks. Were still in the Early Development stages of the company. Works fast to begin visibly clearing up skin in as little as 12 hours. And acne wont last forever. Just like your mom wont walk in on you forever. Stephen Stephen Stephen stephen see what im sayin acne wont last. But for now, lets be clear. Clearasil works fast. This back to school, get clearer skin for free. Limited time offer in stores now. Put some distance between you and temptation with cil, the 1 doctor recommended brand. Wi 80 of recurrent ischemic strokes could be prevented. And im doing all i can to help prevent another one. A bayer aspirin regimen is one of those steps in helping prevent another stroke. Be sure to talk to your doctor before you begin an aspirin regimen. 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. Its not often you find a Publiclytraded Company that believes it can do well by doing business whose brand is about doing the right thing as well as good products. Take for example starbucks. I like that theyre expanding overseas, especially in china. I like the rewards program. But i am indeed impressed with how starbucks connects with customers in an innovative way. They have upstandards where they extraordinary things in their communities. Well hear about this new series and how the company is doing. Welcome back to mad money. Howard my wife and i watched the upstander series last night and felt terrific. Whats the inspiration for starbucks to produce these . Well, jim, i think, as americans, unfortunately, we season which has shown such hatred and vitriol and vindictiveness, and in view of that, so Many Americans have been led to believe the story of america is just that when i believe there are so many extraordinary americans doing extraordinary things every day. We thought wed search for ten, 15 stories. We found hundreds. As a result of that we believe we have an obligation and responsibility to share that with our customers, partners and the marketplace not for any other reason. Its not a branded series. This is just sharing these kinds of stories about ordinary people doing extraordinary things. And this is about citizenry. And i think, at a time in divisiveness, lets find the true american story. I feel so strongly about the promise of america and the american dream, and these ten stories, which are people not being bystanders but people being upstanders is emblematic of the true american story and the American People. My Charitable Trust has longowned starbucks, pretty much since the beginning of the trust. I found myself thinking, i peel great watching upstanders, but i think thats a very good question. If you think about the history of the company, going back to when we were just a Public Company and providing equity in the storm of stock options, comprehensive health insurance, over the last couple years, College Tuition for our employees, we recognized building longterm value and a Great Company was about investing in our people, taking care of our communities and always trying to recognize ha in order to do the things we doing, we also had to build value for other aspects of the business. And i think today we are witnessing many Consumer Brands that are chasing many traditional methods of marketing, and theres a lot of waste. We brief that the currency of trust and confidence with our and one of them is in this case, sharing the stories that we believe are authentic, are genuine, and i think people are longing for truth and authenticity. And i think starbucks has a high sense to to this, and i think theres another aspect to this. We invested very heavily, as you mow, in our mobile platform and the mobile ecosystem. This is the first opportunity, and i think there will be many more of embedding these stories and many people already today have downloaded the app and watched the story. So we are in a position, i think, to level the starbucks experience, enhance the experience by sharing these kinds of stories, and there will be more to come. In many ways were not a tech company, but we have invested heavily in tech. Were never going to be a media company, but we have invested in content. Lets not forget, our business is very healthy. Domestically and around the world. Were under construction in a roastery in new york city, a roastery in china. Were about ready to introduce the new reserve stores, since the introduction of the new rewards program things have settled down, and i think we will demonstrate the longterm value, i am excited because of the business, the relationship the status quo but looking for new ways to extend the brand. You said it was a oneof conference between the complexity of the rewards program being released and the frappuccino happy hour. Which is one of may favorites. This was difficult to pull off, and that 5 streak you had was one i hear from your tone that that could be a return to the plus five. Well, let me say it this way. I say on the Conference Call that that quarter in view of the situation that you just described was an anomaly, and i think it remains to be seen whether or not i was accurate or not, well record our earnings at the end of the fiscal and quarter year in november, and i company, bullish on the stock, but, as always, were building a longterm story here as we always have. But jim, you know, were going to open close to 2,000 stores over the next 1218 months. Our business in china is really a stunning example of the success of probably no other western brand has had, almost 2500 stores. The new stores that weve opened this year in the u. S. Is the best in almost a decade. So yes, we had a little bit of a miss on comps in q3, but i wouldnt overreact to that. And i think certain people have, and i all say to you something that i love the state model of missouri, which is the show me state. Its time for us to show up and see what happens in november. Now candidates are running for president with tweets. If you run for president and you ran these stories, and im not kidding, we are starved for good news. You say, look, let me show you who we are wanting to back in our country, the upstanders. You would do better than you can as a private ceo. Obviously, theres two choices for the presidency in this november. Donald trump and Hillary Clinton. I strongly believe that Hillary Clinton is the best choice for the country and the rest of the world, and we have two choices. Howard schultz is the ceo of Starbucks Coffee company at this time. How do i get my movie, my we have such good fortune of meeting so many interesting people. This is the first season of the original content. This is day bunch weve had an unbelievable response. Because people are so hungry and longing for truth and aspiration to be reminded of the true promise of america, but there will be many specials. There will be other forms of content we will leverage. This is a three to fiveminute window, the time they buy the coffee with their phone and theyre waiting for their drink. That three to fiveminute period represents a unique opportunity. Now this particular content is not something thats going to generate revenue. Add to the revenue line of the company and be accredited to the starbucks company. Well have to see. I would like to have a beer where Profit Margins are great, or wine, and watch these clips. When are we going to see worldwide distribution of beer and wine and watch some upstanders while we have our drinks. I think you knov successfully testing that in many markets throughout the country with different kinds of wine, craft beer, were working with a. B. On a number of things. Weve probably gone a little bit slower than we initially thought, primarily because we were addressing other issues, the cold brew and nitro, which so, in many ways, weve had a treasure trove of opportunities, and we just have not got to the evening part of scaling evenings nationally, but youll see that. I think right now with the roasteries, the reserve stores, the fact that were opening a store a day in china, the success of remodel the within the domestic footprint, these arl add significant value to starbucks, our shareholders, and although we a Mature Company with 25,000 stores in almost 75 countries, i remain i have rue to the statement ive made for many, many years. Ive never been more optimistic about the things we can do, leveraging technology, but the innovation pipeline with things like cold brew and even bringing back Pumpkin Spice latte to a rave review. Im sitting here recognizing what a unique position we are in domestically and around the world. All right, howard, thank you so much for coming on our show, sharing the story of upstanders. Good to see you, sir, thank you. I heard everything i like to hear. I open you did the same. Mad moneys back after the break. O. polo marco. polo marco. s . . Polo marco. polo scusa . Ma io sono marco polo, ma. Marco. playing marco polo with marco polo . Surprising. Ragazzini, io sono marco polo. S . , sono qui. Whats not surprising . Ahhh. Polo. Marco. polo fifteen minutes could save you fifteen percent or more. Polo olay total effects vitamin enriched to revive skin and fight 7 signs of aging your Old School Dance moves might show your age, your skin never will olay. Ageless. You can finally break up with bleach. Lysol with hydrogen peroxide. For a tough clean with zero percent bleach. Lysol that. Were going to prove just how wet and sticky dry spray is different. Degree dry spray. Degree. It wont let you down. 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. Because im a woman. Do you think im gonna crack under pressure or conquer the field . Defy expectations any day with always infinity. Absorbs 10x its weight. Well, bill ackman turn out to be right about chipotle . Is the fund cashing in on what stock . History says yes. History says you have to buy chipotle before the anniversary of the bad news if you want to catch a bottom. Thats been the history with three in history. Jackinthebox with an e. Coli outbreak. Then the kfc chinese food i know many are focussed on what bill ackman will say to chipotles management. I get that. Ten years a, bill ackman tried to get mcdonalds to change. He was invited to get involved in taking burger king private while adopting the theory that first during that period. By the way, this years conference will be held on tuesday. Stay tuned for more good ideas. Now i think that ackman can push. When you turn the reins over to franchisees, its strict management. The rollout of the southeast suboptimal. The new concept came to fruition five years ago. My question is similarly bizarre expands of t tasty burger. It is the enemy of good guys. Get on or close it. Buying chipotle now is in the end, now that the Health Scares the e. Coli incident started in october of 2015. One month from now, when that news seemed to be put behind them, chipotle got hit with a second incident, this time with the norovirus. One employee. But the companys samestore sales plummeted to minus 36 after the boston debacle. The next quarter coming up will annualize the incident, which typically heralds a bottom. We still arent seeing a big rebound in traffic at chipotle. 38 of respondents said that there are long lines at chipotle. Nevertheless, history is definitely on ackmans side. Think the analyst rally behind it. Ackman had to move before that occurs, but you dont run a hedge fund. I have said repeatedly to buy chipotle at 400. This once great and soon to be great again restaurant chain. The bottom line, American People send to forgive and forget. And the stock will be ready to run, maybe not to the heights before 50 , but certainly worth betting on. It only takes a second for an everyday item to become dangerous. Always keep laundry pacs away from children. Keep them up. Keep them closed. Keep them safe. You can finally break up with bleach. Lysol with hydrogen peroxide. For a tough clean with zero percent bleach. It is time its time for the lightning round and then the lightning round is over. Ski daddy frank. Caller frank from new york. Nice. Whats your thought on this stock acts terribly. Its being short termed. I dont like it, but longer termed, i am a passionate believer in the franchise. Data. I like that. Stewart in new jersey. Caller how are you today . I am good, how about you . Caller im doing fantastic. What id like to know from you is what do you think of avid technologies . I wonder why they dont get a takeover bid. Their technologysu if you really want to go like editing, go to adobe. Thats one of my absolute favorite tech stocks. How about lawrence. Caller boo yaw, jim, boo yaw, booyah. Ibm is the number one leader in cloud technology, and Warren Buffett has bought thousands of shares. Caller i sense that ibm is going to go to 600. There are Many Companies who think they are cloud king. This is one of them. Nick . Caller whats going on . Which one . Caller cxw. Headline risk really bad. Its like a drug stock. I dont want the head line, i do want paul in texas. Caller hey, mr. Jim. Whats happened to cummins . Cummins went down because navistar got a good contract with volkswagen. I like cummins, and i really i want to go to alan. Caller sage therapeutics. They did a secondary stock down 5 , is it a good time to buy . Typically they have worked well, but i wouldnt overstay my welcome, because i Like Companies that have a very good Balance Sheet and dont need to raise capital. One more. Oh, that is it that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by td ameritrade. To begin visibly clearing up skin in as little as 12 hours. And acne wont last forever. Just like your mom wont walk in on you forever. Stephen Stephen Stephen see what im sayin acne wont last. But for now, lets be clear. Clearasil works fast. This back to school, get clearer skin for free. Limited time offer in stores now. To feel this special. You need to eat this special. . . . I love it . Start your day with crunchy wholegrain flakes. And real strawberries. Special k. Eat special. Feel special. Dr. Scholls massaging gel work insoles absorb a hard day on your feet for comfort that keeps you feeling more energized. Dudes got skills. Dr. Scholls work insoles. Take one of those pillows and take a big smell. They smell really fresh. What if we told you we washed these sheets 7 days ago. Really no way downy . Downy fabric conditioner. Give us a week, and well change your bed forever. Ive said it before, ill say it again. The medical device stocks are the one area of health care that are absolutely on fire. Anything and everything drug related is at risk of getting slammed by the crackdown on higher drug price. Thats why resmed, machines that are used to treat sleep apnea, not just that resmed belongs to something very much in style. It makes breathing machines to help you sleep. They have taken their business to a whole new level by embracing the connectivity revolution. They have a number of Software Applications. They acquired a leading provider of Software Applications for the health industry. Its already pay resmed got hit with a downgrade because of a competition from phillips. But the stock has continued to turn higher, in part because they reported a Strong Quarter at the end of july, but theyre now a leader in connected care ceo of resmed to learn more about where his companys heading. Welcome to mad money. I think a lot of people dont understand how big this market is, and how Noninvasive Technology we put them in the home and and have portable respiratory devices that, with sleep apnea literally help them breathe every night. We literally give them the gift of breath, and they cant breathe on their own. Continuous positive Airway Pressure is more problematic with different diseases that you undiagnosed Obstructive Sleep Apnea can lead to diabetes, hypertension, Heart Failure and worse outcomes in hospitalization. If were able to treat sleep apnea, we can potentially prevent the chronic disease progression of the others and save the hospital care and the tota i recommended your stuff in 2005, it has tripled. One of the first stocks we recommended. But what i was concerned about was having a huge mask on my face when i go to sleep. Is that a misconception . It is a misconception. Back then, the masks were larger. Finger. And these masks are tiny. And i use this personally every night. I sleep on this every night, and its changed my life. Saved my job, saved my life. There are 40 million to 60 million of people who suffer from sleep apnea, and 6 million are on therapy. I mentioned last night about having you on, and we were looking up the different devices on amazon, and she says i think you have it. I think you have sleep apnea. I would have no idea if i have it, because im sleeping. How do we know if we have sleep apnea . Our biggest competitor is ignorance. Its the lack of education and awareness. Theres other players out there. Its ignorance. With 60 million patients opportunity in front of us. We have to get the primary care doctors, the patients themselves thinking about their care and going and seeing their doctor and asking about this. When i went to Salesforce Dream force festival. They had phillips, and they were talking about the cloud, and im thinking, youve got this big Cloud Initiative with bright tree, why is your cloud better than their cloud . We are the worlds leading company. We have two million, over two million, 100 cloudconnected medical devices on peoples bedtime tables. We put a chip into every single sleep apnea of product, physicians use the data to provide better care to their patients and provide data to a system thats able to take data, i only go to 85. I was a little nervous. I was able to look over time. I am also able to look at videos and engage better with your therapy. This will email or text responses directly to patients to improve their outcome. Its been a great win over multiple years. You know this markets much bigger than people realize. Mad moneys back after the break. Technology. Say, have you seen all the Amazing Technology in geicos mobile app . Mobile app . Look. Electronic id cards, emergency roadside service, yep, geicos mobile app works like a charm. Geico. Expect great savings and a whole lot more. Question, are my teeth yellow . Have you tried the tissue test . Ugh yellow. What do you use . Crest whitestrps. Crest 3d whitestrips whiten 25 times better than a leading whitening toothpaste i passed the tissue test. Oh yeah. Last night, we were told not to give up on apple because the stock would go up. It was a hohum launch . Not. People liked things they saw. Theres always a bull market somewhere, i promise to find it for you right here on mad money, im jim cramer, and i will see you tomorrow do you want to be complimented by that former kgb officer . I think when he calls me brilliant, ill take the compliment, okay . There is no evidence my system was hacked. I communicated about system. Praising putin and defending emails. The candidates put on the defensive during a highly focused event over who will be americas next commander in chief. A russian fighter jet flies within ten feet of a u. S. Aircraft, increasing tensions between the two nations. Apple iphone 7 unveiled, lots of changes, but should you wait for the iphone 8