Feet up kind of sit back say all right, whos really doing well . Whos really doing badly . Were having this relentless daytoday analysis. Were still the thick of it. Which is why we need to stay rigorous. This is made more difficult by the shear number of new companies that have had the guts to come public. Lets start with next monday when we get results from clorox. The quintessential consumer goods Package Company that was run so well for so long. Ive studied this company long much to know that its in capable hands and i bet that tradition to good solid numbers that tae how will clorox to become a good Portfolio Holding for so many of you satisfied viewers; i expect good things. After the close, we hear two from two radically Different Companies with stocks, dennys and bio morin. Dennys report drad mat i can upside supplies but the market yawned because Rising Oil Prices turned investors sour on the restaurant group. Then the ceo told a great store pri. Gasoline has fallen since and weve seen dramatically fallen stocks in panera and buffalo wild wings. I bet dennys could do the same. We know from biogens recent december sthaentscent that it could be disappointing. Tuesday be prepared to be disappointed not from america but china. We get the pmi. I need you to be ready for a selloff that can impact our markets. Its always possible that we see a stronger china number someday. But chinas well lets call it the topmost important existential threat to anything good happening in the world. So be aware that china lurks like a hidden dragon or maybe even a crouching tiger and it can breathe fire and pounce on our stocks with a level of force that makes earnings irrelevant. Thats the case then you could get a buying opportunity when the quintessentially american cvs reports, thats charlie victor. Im amazed at how this Management Team has turned cvs into a true retail powerhouse with a health care kicker. I expect one more excellent quarter which is why you might have to be opportunistic and buy it on an irrelevant but powerful wave of chinese stock market related selling. You know what went virtually unnoticed this week . A further tieup between regenron and sanofi which owns roughly 26 237b9 of regenron. Theyre collaborating on an anticholesterol drug and that overshadowed this partnership announced later in week for the development of cancer drugs. Like regenron longterm but it might be greated on the growth of its older Macular Degeneration drug. If it falters on sales of that drug i dont think it will but if it does thats your next chance to buy the stock. And i want you to take it. Youll most likely be buying alongside sanofi which can accumulate regenrons stock in the open market. Disney reports after the close tuesday. Ive been hoping far bryce break so new buyers can get a chance to buy the premier growth stock of our time. There hasnt been one and disney hit a new all time high again this week. And you know what . At this point if you done own it, i would wait to see if you cant get disney on a chinarelated discount or shortterm glitch in the sales of one of its myriad properties you have with star wars and Shanghai Disney ahead of you and with those catalysts it might give you a quick entry point. We also get results from pioneer natural resources, pxds, thats got huge holdings thats been beaten to near death by this oil and gas selloff. All i can say is that as pioneer goes, so goes the independent oil and gas companies. Yes, pioneer is that power to feel the groups psyche. All eyes will be on rafflelph lauren when it reports. In company has been disappointing for ages and ill wonder if they cant break out on the funk because everyone else has. After the close, we have jackinthebox. I know jack which, like dennys didnt get its due when it delivered an excellent quarter. I bet the stock will be in sync with another solid showing. Two battle royal stocks report wednesday evening, tesla and fitbit. Both have a lot in common. Theyre exciting and they have muchloved products and the products people buy turn them into shareholders and theyre despise bid short sellers for being too expensive. Tesla is a cult shook the defied reality for years and it will continue to do so if you like the car, buy the stock, i dont care, not to up me. Not my money. I believe fitbit has created an ecosystem of health and wellness with its devices very much at the sent other that ecosystem and i dont think the marketplace understands the power of the cosystem or the platform yet. Maybe investors will get it when fit fit reports its First Quarter after becoming public. Ive liked this stock for 15 points now because of its great growth and it doesnt compete with apple, the watch, no matter how much people tell you that they have to contend with the cupertino giant. I do not think apple can wreck fitbit. Thats how strong i believe its ecosystem is. Thursday fresh off its sale of its generic drug we hear from allergen. And expectations have gotten high for this company. My charitable trusts owns and r it and were concerned about that runup but now the company is armed with a 40 billion stock in cash bankroll, thank you, teva there are a lot of levers that can be pulled here. I want to see what molson coors says. Anheuserbusch took tap stop down it with. My favorite, though, if youre a fan of bar san miguel, many i small plate Mexican Restaurant in brooklyn remains domestic corona and modell low breaking constellation brans. I want you to buy that one on any weakness in tap following from the weakness in bud. Finally on friday we get the labor departments nonfarm payroll report and i think its safe to say there will be massive secondguessing in the feds decision no not signal a rate hike earlier this week. You know, strong number and a benign chinese stock market expect a selloff if we get a major change that says that theres even more hiring going on. Now, if we get a strong jobs number and white wave reports a good quarter friday morning but gets knocked down by the futures because the number is too strong, that may be Perfect Place to buy this organic and natural food maker. Remember, just because whole foods reported a bad quarter doesnt mean it isnt good for white wave. They are carried in so many stores. We have a plethora of earnings but remember the fed chatter and the potential stock market breakdown will play havoc with our stocks so keep one eye on earnings and the other eye on the big picture that lets you buy the stocks you want at prices you think are cheap enough to pull the trigger. Doug in missouri doug . Caller jim you have a great staff. Man, they make me look brilliant everyday. Everyday. Caller i have an airline question. Okay. Caller the price of oil is falling with some pundits calling for a further drop to 30, even 20 a barrel. Airline fuel costs are significant components affecting that bottom line. Is now a time to buy . If so which one . I like southwest air and i think its good but its moved a great deal as oil went down. Im not so sure oil will have the big breakdown you think it does. I think if anything oil probably stabilizes at the 43 level and if thats the case well lets let the Airlines Come down before you get back in. Lots of earnings next week, but china and the fed are still in the picture. Keep one eye on earnings and the other opportunity. Get on the companies that you like at super cheap prices. Speaking of the fed, were taking a deep dive tonight. Find out what yellens next moves could be for your money. How rising rates change the way you approach buying a stock and the impact on the international piece of a diversified portfolio. So stick with cramer. Mad money will be right back. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Uncharted waters. Thats where we are right now. Uncharted waters. Thats because weve never had Interest Rates stay so low for so long that its always a shock when they go higher. You need a guide to what happens as they go up. Which they will soon and how you can survive and maybe even thrive as they go higher. This show tonight is that guide. First we have to deal with the counterintuitive nature of the whole prospect of the fed raising rates and why it tends to cause such havoc in the market. Then we have to preposition ourselves in a moment of what amounts to be planned turmoil. After all, when the fed cuts rates its all about igniting the economy. When the fed raises rates its about reining in the economy. They are two different beasts with two different consequences. We have to explore whats worked when rates goo go higher in a different kind of environment than weve seen before. We have to explore profiting from from the decline and how its harder than it looks. Then we have to return to the principles that brought us here the best ways to make money, regardless longer term of the fed. First, lets discuss some common misperceptions buts about why the stock market can go down on good news and up on bad news. In the old days before the Great Recession we had traditional interplay between the fed and the economy. The fed perceived this job as helping the economy create jobs when things were bad and slowing the economy to prevent inflaigs when things got better. Makes sense. Its in everyones interest except short sellers to have a vibrant economy. We wanted to put as many people to work in order for our nation to be strong and allow people to participate in the progress greatness, and profits of the greatest country on earth. So when times get tough, the fed swings into action with its admittedly cumbersome tools to get things moving because it doesnt have the ability itself to create jobs cant put people to work, thats something only congress and the president can do and private employers. What the fed can do is move Interest Rates down to levels where its so cheap to borrow it can impact not just business but everyone. Allowing them to refinance, take loans, build things expand business. Put miss people to work. At the time when the Great Recession was taking hold the fed under ben bernanke misread the economy and thought it was stronger than it looked. Thats because he was focusing on the Housing Market which was way too high and raising rates repeatedly to cool off the market even as the other parts of the economy frankly werent all that strong. What the fed didnt know is that the Housing Market while only 10 of the economy, punches way above its weight meaning that it creates a ton of jobs and can produce a gigantic amount of debt as homes and apartments are built and purchased. The fed raised its shortterm rates 17 times between 2003 and 2006 stopping at 5. 25 almost principally to cool the Housing Market. Then the fed turned a blind eye to how rapid these rapidfire increases did the Housing Market and by 2007 it was pretty clear to many of the important executives on wall street that things were very much awry. [ screams ] this was around the moment when i lost my temper on air to get the feds attention with my rant predict manager firms would go under because major investment banks had been the principal abettor of 7 trillion in the Housing Market and the 7 trillion and the fed were oblivious about the interaction between housing and the rest of the economy. They just kind of missed 7 trillion. At that point we were seeing a tremendous number of loans turning sour. I dont want to replay the unraveling or how many institutions were failed by it and jobs wiped out. Suffice it to say unemployment skyrocketed and the fed backpedal bud it was too late. The destruction was so great it crashed the worlds economies and took our Unemployment Rate to almost 10 by 2010. Roughly twice where it was a few years before. The fed did everything within its power and exceeded its power by cutting rates to next to nothing and then starting to buy bonds of all types to lower more than just the short rates than it traditionally controls. Highly unusual behavior. Fast forward to today. Were putting people to work at levels we havent seen in years and while wage rates have proven to be low and the Housing Market hasnt reached anywhere to close where where it was before the Great Recession, the fed has been able to declare a vaktory and move on from its intent to keep historically low rates historically low. So where does the stock market come in . Lets count the ways. First, the fed with historically low rates was able to stimulate hiring that allowed people to spend at stronger levels than they were during the Great Recession. Remember, we are a consumerled economy in this country. Meaning that twothirds of our economy revolves around spending. Not the exploitation of our raw goods, manufacturing them into finished merchandise and then selling or exporting them. Thats a huge part of the economy but not as important as spending so low rates allows consumers to spend on home, cars and themselves. It all produced a stronger day in translated to higher profits for all of the industries and the people who cater to them. Not bad. Number of autos sold in the country almost doubled from the Great Recession. We have much stronger retail sales and while home sales didnt spring back to life, a massive refinancing boom spurred spending. The low rates didnt do much to help big industry including the most important growth engines of the economy, nonresidential or nonresee as we call it construction. So these portions of the economy and the stocks and companies that benefitted from it went higher. Because the fed kept Interest Rates down that allowed corporations to issue debt that could let them expand or perhaps take over other companies which led to an amazing merger broom which helped stocks. The merger boom cant be underestimated, its importance, because it helps raise the price of all stocks in the cohorts where the takeover has occurred. And the cohorts were numerous and many. The bonds that financed these mergers gave institutions and individuals more income than treasuries could throw off so they were purchasing large amounts to the point where historically the amounts of money raised border on absurdity and the price of the money, the actual rate, is too low to be justified by longer term picture of the economy. No matter thats how desperate it became for yield. People always reach for yield and it ends up badly. Others reached for what we call bond market equivalents. That stocks that gave you yields well if excess of treasuries. This i liked. These stocks many of which in the consumer Package Goods industries and in oil and gas, utilities and Real Estate Investment trusts became much sought after as never before. As individuals demanded some income in order to be able to make money with their money. Do you know thats the mantra of mad money. Some people became increasingly possible as old certificates of deposits ruled over and new ones produced next to nothing. These had the impact of restarting the economy but it wasnt until oil prices were cut in half by a glut driven in part by u. S. Production that increase increased dramatically because of our technology that we got employment and some wage gains that made it so the fed could at last declare victory. The bottom line, the feds done its job as best as it can and the regular economy takes over. What does that mean . Well, when you want to know what it means for the stock market i suggest you stay tuned to find out. I want to start with garrett in texas. Garrett . Caller hey jim, another hook em horns booyah to you. Completely absolutely. Caller i was curious with the rate hike looking inevidentable if in your opinion theres stocks that performed better after the Interest Rates rose. We know from jamie dimon at j. P. Morgan that when the rates go higher j. P. Morgan makes a ton of money. That includes xlf if youre so inclined because you dont want individual stock risks but the major banks are the beneficiaries. Glen in illinois. Glen . Caller booyah from chicago, home of the chicago mercantile exchange. As well as the bears, the bulls, the white sox. Go ahead. Black hawks. Caller a simple question for you, jim. For the retail investor, what for a person either buying or selling stock, whats your thought on using market orders as opposed to a limit or stop . No were always going to use limit orders or we should help get someone else to help us run money. We have to be hands on about our money or let professionals take care of it. We dont use top losses i talk about that. You either watch in the market if youre involved in it or you need help or you go to an index fund. All are okay with me. Youve got to know your own suitability. Thank you, fed, youve done the best job you can, now the regular economy is in control. Our special fedfocused show that you wont get anywhere else, believe me continues ahead with the consequences that are coming for both the market and the economy as a whole. What does it mean for you . Plus two reasons why its a mistake to just walk away as things on wall street get tough. And the changes you need to make with your money right now ahead of the major moves to come. Dont miss it, mad money will be right back. Now that the fed has declared victory over the war against unemployment we recognize there are consequences against the economy and the stock market. Theyre two different animals despite what you may hear. First those who think the stock market is wrong to go down when job growth is plentiful, you dont understand shortterm history even though you have a good grasp on a longerterm vision. Its good more people have jobs that the economy is healthier. Unfortunately, not everyone agrees with let that. Let me trace in this segment why some people feel that way and why i dont agree with them. First ther