Believe it or not, this is actually the kind of decline you want if you are a bull. We cant keep realallying on the news over and over again. President trump and president xi could hammer out a trade deal. Rallies need more and more fuel. Without it you end up on a day like this one. It reminds us that stocks can go down, too. So what did make today so soggy . All the red hot cloud based enterprise stocks, they were dethroned today. Yesterday sales force told us it was buying Capital Software for a huge premium. Everyone figured that every company in the sector and cloud kings would have takeover biz. These stocks deserve to come back down and they did. They got what they deserve. Helps businesses. Work day just reported terrific quarter down seven. Cooper software, like them. Amazing companies, amazing companies, also stocks get hammered. Think of it as cloud royalty being led to the yesterdays cloud rally was all about froth. Anyone in the industry can be a target. I think thats absurd. I think the deal is a one off. We heard from salesforce last night. We will learn more about what the merger means for shareholders. So they had to get back yesterdays gains. I said it would get ugly and it did. Mark bennyhoff bought sales force. He wanted scale. It was a scale offering. These other companies are not going to get bids. Second source of the market is beyond me. Im not going to fall around again. I think i proved my point last night that this stock had gotten too hot. This morning jp morgan agreed with my analysis. It could not be justified. It makes sense to me. It is still 27 from last thursday. Just like cloud names slaughtered today, you have to understand that beyond meat is excellent. There is tremendous demand for faux meat burgers and sausages. No one else has stepped up in scale to really challenge it. They are hard to keep in stock. They are going for ten bucks in some parts of the country. You dont give speed tickets to stocks. It needs to cool off. Im not saying the company is bad. Im saying the stock got too hot. Financial technologies stocks spent weeks rallying and rallying. I was convinced. Pay pal has a ton of room to grow. It has become way too resilient. Pay pal got dinged. These stocks are taking a muchneeded breather. They cant just keep going up and up on nothing. Thats called multiple expansion and we dont like that. The four Companies Participating in this weeks mega mergers, the stocks get pulverized. Investors take part. I disagree. I think sales force is a buy. I get where they are coming from. Stock down nearly two percent. Anything above 150 pull the trigger. But look at this United Technologies. Down four percent and five percent respectively. I think the world of these companies. As i see United Technologies is worth a heck of a lot more. I would be a buyer here. The dow dupont deal, dont tell people who subscribed to the newsletter. That was disastrous. Its true that like dow dupont we have no idea. If you are patient i believe you will be rewarded. I said that and i was wrong. However, i feel very alone here. It sure doesnt help that the notorious actor opposes the deal going up against greg hayes says he is willing to attempt to block it if needed. We need to accept that these stocks are in merger limbo and thats not what you want to see unless you are saying we are going to mark some time here. We will mark some time. Unfortunately, it bled into the whole defense sector. These stocks all behave like the deal was in the works. They were all bit up in advance. If you look at the stock, it went up big ahead of the deal. Speaking of deals, the sprint t mobile merger hit a major road block when attorneys general sued the stock. Its down nearly six percent. I think it makes sense to to buy tmobile. You see this is soggy. We need concrete news. Maybe a rate cut plan for the fed or just the whiff of a trade deal with china, not the president saying it is up to he said, she said. As i said this morning on squawk on the street, the market is fine and the economy is fine. Not great, not bad. Fine. You can call it a gold locks situation. My old partner larry kudlow said on our air there is not much inflation in the economy. I will add that the trade war with china heats up, im betting fed chief jay i wouldnt call that a good situation. I wouldnt call it a bad situation either. Its fine. By the way, i mean genuinely fine. Not fine like it is terrible. Its fine. Its okay. If you are wondering if you have been paying attention, we had a colossal rally. Thats exactly what this market needs in order to recharge. There is nothing really wrong with that. The bottom line, the president can sign tariffs with any country including germany. Other than that, things are really pretty okay. Dont be alarmed by todays subparaction. Some of the stocks got too hot for their own good. Now they are cooling off. Thats fine. Katherine in nevada. Jim, how are you today . I am good. How about you . Caller i am very blessed. Booya. How about a stock along with that great laugh caller im calling about caesars stock and doing multiple positive renovations and possible merger with caesars in el dorado, why doesnt it get talked about more . And why is it so low because the Balance Sheet is bad. Thats really straight out. The Balance Sheet is awful. May i suggest las vegas sands. 5. 2 yield and really well run. Thats the stock for you in the casino area. How about lou in florida caller jim, how are you . I am good. How about you . Caller okay. I own a lot of banks, citi, jp morgan, bank of america, two regionals and morgan stanley. So with the possibility of lowering of interest rates, should i worry about Net Interest Margin or will the yield curve widen . The stock market is saying that the yield curve will widen. You obviously understand the metrics. From a travel trust, we trim some citi. I dont like the environment. I think we got kind of lucky. I think that in the end it will control and the stocks will not be that good. I wish i could be more bullish. They are kind of like the oil stocks. How about we go to brent in california caller booyeah. I want to talk about gold, jim. I got positions in au, nugget which you recommended. Kirkland lake, i thought those guys were terrific. Caller you made me some money, my friend. We had them on. I didnt know them very well. I said these guys are good. I say stick with kirkland lake. That is a very wellrun company. And thank you to our fabulous producers and heather gains. That was just really such a good booking. And i wish they would come back on. This market is recharging, guys. Things are fine. My exclusive ceo with Tableau Software. Is it a case of he said she said im talking trump and china ahead of the g20 meeting. Its going to be big. The market has been enduring for weeks. We have gotten to accept it as the new norm. Is there more instability ahead . Im giving you the vix fix in tonights off the charts. So stay with cramer. Dont miss a second of mad money. Follow jim cramer on twitter. Send an email to madmoney cnbc. Com. Miss something most of us dont know how much data we use. But we all know were paying too much for it. Enter xfinity mobile. Americas best lte, with the most wifi hotspots combined for the first time. When youre near an xfinity hotspot youre connected to wifi, saving on data. When youre not, you pay for data one gig at a time. Use a little, pay a little. Use a lot, just switch to unlimited. Its a new kind of network. Call, visit or go to xfinitymobile. Com. I got a positive story here. Yesterday the cloud cohort caught fire after sales force announced the largest acquisition ever, the purchase of Tableau Software. It is one of our cloud princes and that makes this a royal wedding. Last time we talked to the ceo to get his perspective of the deal. This is so important. This transaction is i got to tell you, maybe i think the big game changer. Lets take a closer look and youll find out why. He is the president and ceo of Tableau Software who is making shareholders a fortune with this deal. Its great to be with you as always. I believed you from the day you got the job. I remember you were going to revolutionize it. You came from amazon web services. It is pretty early to have a crowning achievement. Thats very kind of you. I mean, the company has just done great. I knew there was an amazing product, amazing team and community. I think with those assets in place, we spent the last few years trying to assemble them in the right way and trying to figure out how we can create real value for customers while growing the business rapidly. It has been awesome to work with all those pieces. Two things mark told us about yesterday he said adam is coming with me and he wanted stock because he believes. How about those . We will have the conference. Im staying as the ceo of tableau. My entire Management Team, whole executive team is on board and staying. At the same time, we will have the best of both worlds and really looking forward to exploring the synergies on the product side and i. P. And assets and sales and distribution side. We think this is a very good way for us to participate in that joint success. I have felt that you would get to where you ultimately sold the company, eventually. This really does haste some things. What does a Tableau Software within sales force mean versus an independent Tableau Software . I think there are many different dimensions to that that excited everybody on both sides of this. Just to dive a little deeper into the product side, we obviously have a very broad and deep analytics platform. Sales force has a lot of things that are interesting with Machine Learning and a. I. Our engineers cant wait to pop the hood on those and check out things we might use. Obviously, there is technology they might use, too. I think there is going to be a lot of attractiveness on the marketing and sales side, sales force has many thousands of field reps around the world. I cant wait for them to be passing leads from either joint customers or new customers into our field. Look forward to marketing. I think there are a ton of possibilities. Mark was telling me about a minnesota customer. Everything worked out well thmpt customer said i will urge with Tableau Software. How many merge with Tableau Software work really well customers do you guys have there are already a lot. They are working at places like jp morgan chase, verizon, southwest airlines. There is a long and impressive list. We will each have our own customers to introduce to each other. I think they are all part of the broader communities. We have the tableau community, two of the most powerful just loyal, passionate sets of users and communities really in the whole technology industry. I think its going to be magic if we can bring those two together. Let me bring up one that may not be as magical. Le linked in. He is competitive again microsoft. There is a little bit of tension between microsoft, but it is creative tension. Linked in is owned by microsoft. Does that just go away when this happens . Does what go away microsoft is now microsoft versus tableau sales force. I think you guys will be competing head to head its a complicated world, jim. We have a multifacetted relationship with microsoft. We obviously compete today at tableau against microsoft. We also cooperate very closely with them and tons of customers are running tableau today on top of azure. Many like driving windows licenses. So its my hope that we will continue to do that and cooperate together for years to come because its good for our customers. Tableau is all about choice and flexibility, deploy on premise and any of the popular clouds or as a fully managed sas offering, connect to any data source that works for you. That flexibility is not going to go away. The tableau that you heard did not have all those capabilitied. You moved it to the cloud. I remember in 2016, mark said its not really a Cloud Company. Then you got there and made it a Cloud Company faster than anybody i have ever seen. I think it is a real credit to you. I want to congratulate you and everything you have done for your shareholders. You are terrific. Thank you so much. I mean, it has been an amazing effort of our team of over 4,000 people. We have largely through a transition to a model pretty much faster than any Software Company of size. We built a big Enterprise Business and we are just really excited for all the possibilities of working really closely with sales force and within sales force. I hope to see you at dream force later this year. Thats the president and ceo of Tableau Software. He made a killing for you. Stick with cramer. Heading into retirement you want to follow your passions rather than worry about how to pay for longterm care. Brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ when it comes to the trade war, this could indeed turn out to be a case of he said, she said or at least it might go that way if President Trump and president xi bothered to talk to each other when they attend the g20 meeting. Right now, that has become a very big if. Trump has ratcheted up the stakes saying if xi doesnt show he melee out new tariffs that are much higher than the 25 that are currently untouched. If trump goes there, he could effectively shut down exports from the united states. Companies need to have backup sourcing in other countries, something that apple apparently has already. Ai have to tell you that is what caused apple stock to go up. I know trump is always calling xi a great friend. This gauntlet of g20 meeting could hammer the stock market. Our president is tariff happy. He has no hesitation about imposing these tariffs. He believes, by the way, that our trading partners pays the cost of the tariffs. Thats not really true. A tariff is a sales tax. We know the sales taxes mostly fall on the consumer. The Tariffs Force china to pay our government money. They help close the deficit and encourage American Companies to move the business elsewhere. This is all based on alternative facts set also known by some as fiction. What matters is the president believes it. I have been more supportive about the trade war than most than all commentators. I believe we have a good reason to crack down. It is you can think it is worth the trade off without denying that there is a trade off. As far as the president refuses to believe that, i expect him to go after germany. Not just china, but germany by the end of the g20 meeting. This morning he tweeted about how the euro is being the base versus the dollar. Unfortunately, European Central bank is not going to let it rise in value. So there is only one way to offset that currency and that is by slapping tariffs on the german exports. I cannot believe no one else picked this up this morning. The president is none to happy that bmw opened a billion dollar plant just yesterday. 2,500 people work at the facility which the Company Plans to make about 175,000 cars a year there. Trump cant put tariffs on the series 3 because just agreed not to go after mexico. However, he can always get back in germany both because they are aggressive about promoting their own exports and thinks they dont pay their fair share in n. A. T. O. I know they have a factory in south carolina. As long as the president believes the tariffs carry no risks for the united states, only rewards, we should expect more barriers to trade pretty much everywhere. He is making the decision based on a major misunderstanding of what i call reality. Since when has that ever stopped any occupant of the oval office . Thats why we are back to the he said she said at the end of the month and the outcome can become explosive. I need to speak to tom in florida. Jim, this is tom from beautiful jupiter, florida. I love jupiter. Great. Whats up . Caller home of one of your favorite baseball players. Mike schmidt. Michael j. Schmidt. Caller he used to throw a baseball around. And a great guy. Caller i agree. I have his picture. What stock caller my stock is monster beverage. Do you think they might be a good candidate for a takeover . You are playing for an earnings game. I think their earnings are very good. I think you are okay with monster. Edward in new york caller booyah. When i was listing in hong kong what would happen to the new york listing we are just going to deal with the fundamentals. And the fundamentals are the best of any company they have over there. Its the only one im still recommending. It really hurts. Lets go to joseph in california, please caller first i would like to say thanks for all you do for the average joes out there. Youre quite welcome. Thats exactly who all of us are. Lets not forget that caller thanks for your stories about your parents who made you who you are today. You bet. Caller i appreciate those stories especially with fathers day coming up. My question is on i robot, they seem to be a casualty of the trade war with china. And i was just wondering with both sides being in so hard, is there a chance to buy, sell or hold i think its too hard. Sometimes really we dont want to weve got companied that are very good like a proctor gamble, like a walmart. These are really solid american blue chip companies. They are better than i robot. Thats what you should be buy in this situation. I expect barriers to be raised pretty much everywhere. Next could be germany. Much more mad money ahead. One of the largest independent natural gas powerhouses in the country. Wondering if the company can regain energy. Im talking with the ceo. Whats the market signaling . Im going off the charts to find out rapid fire in the lightning round. Stay with cramer. When it comes to your customers expectations, theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Cool. The flexible class schedules d me tremendously. Allowed me to go to work full time, run my catering business and be a mom and parent. When i reached this accomplishment, it was like, its here, its happening, its now. We at Southern New Hampshire university are the ones who succeed. We are the ones who break through. Averages started strong, we understand why so many people are feeling queasy right now about the market. We had a magnificent round. On the other hand, if you buy stocks right after you are chasing something risky. Its a real chance we have gotten ahead of ourselves. We might be due for a pullback. We are going off the charts. We will go to mark sebastian. He is the founder of optionpit. Com. Mark is a resident expert on the Cboe Volatility Index which measureathis the implied. The vix is nicknamed the fear gauge. Thats why we normally expect volatility index to move in opposite directions. The vix should be going up. As investors become increasingly afraid. When the markets rally the vix should be going down and investors become a tad complacent. So them moving in the same direction tells you something is going awry. It means the move is in danger of being rolled back or reversed. For the last few days the vix and s p 500 have been doing that. We may be needing to pull in our horns a tad. First, though, you need to understand that this is a reliable tool. Lets take a look at this pair of daily charts showing s p and volatility going back to the beginning of the year. Remember, at the end of april, sebastian pointed out that the stock market was rallying and yet the vix was creeping higher anyway. Thats why he told us he expected a garden variety sell off. He warned us not to be too afraid because the pain would be temporary. When they rolled around, it was bad. It got very ugly. Just like the action the vix predicted. Lets just the volatility index peaked in mid may. The vix pulled back from its highs. Here is the high. It pulled back from its highs. When the s p started hitting new lows, the vix wasnt even at the high for the month. There you go. The market was getting pommelled but the fear gauge was also going lower. Thats a classic sign that we were at a bottom. Nailed again. So vix and the s p 500 began to move in the same direction and the trend changed and the s p came right back. So there you go. Its a pretty darn good call. You can see it is creeping up. The main thing you have to recognize is this this area was not breached. It should have been here if it was going to be negative. Over the past week the market has exploded with the s p 500 tacking on five percent over a period of five days. That averages to 1. 1 run per day. At first the vix came down which is what it is supposed to do when the s p is soaring. By last friday it had come down from 19 to the low of 16 in a matter of days. That is textbook rally action. Then the vix stopped going down. The volatility index pretty much sat at the 16 level. That is the situation that sebastian worries about. This is not thats kind of drawing a face there that was upside down. This is not what he wants to see. The vix sits there or crawls higher and this goes higher. Thats wrong. Its not good. For the past couple of years almost every time the vix and the s p rally together, the markets quickly had some sort of selloff. Most notable was january of last year. Take a look at the longer term chart. They are both chugging along in the very beginning of 2018. Then the market had horrendous break down. Sebastian doesnt think we are set up for a serious selloff. He is not predicting that. He doesnt believe we will relive january of 2018. When the s p 500 goes higher and vix fails to go down, that is the equivalent of a yellow light. This action tells sebastian that the fun may be over at least for the moment. Volatility index refusing to go much lower is a problem. It means you need to be careful when you see the averages rallying like this morning because those gains can be rolled back. In other words, this vix foretold spike up and go down like we had today. Sebastian who believed in the rally last week now says the s p needs to pull back for a couple of days. Then we can have a slower, more logical and methodical rally. He thinks the vix will stay above 16 and stock market will chop. I agree with him. We are in choppy waters. Im just trying to be a little more cautious. I didnt like the froth last night. Its good my executive producer is not remembering. Cue the sausage, please. The bottom line. There are a bunch of reasons to be more cautious here. In particular, the charts suggest we arent due for a bit of a pullback. Given the recent track record, i have to take him seriously. He is not saying look out below. We are not going to get this. He does say we will get turbulence. What i say is please dont chase. I think you can get better prices down the road. Where is the meat . Mad money is back after the break. It is time for the lightning rou round. Are you ready . The lightning round. Donald in new jersey. Donald caller how are you i am doing quite well. How about you . Caller im doing well, jim. My stock is yeti. I like yeti very much. I think it is under valued and i think it is a longtime hold. Thats how i like that stock. I would like to have them on. Lets go to greg in minnesota. Calle whats up, man caller im here in minnesota. Great time, jim. What hasnt been a good time is no, no, no. I havent liked it for about six years. That tarpon rodeo is fabulous last year. I won first prize. Lets go to todd in virginia. Todd caller booyah well . Todd caller im here. Go ahead. Its jim caller jim, i would like to know about txmd. We were going over that today. Head of research. We both said ouch. We are done. Cut it. Cut your losses. We are done on that one. Lets go to kenny. We will hold kenny and go to tom in new jersey. Tom. Jim, tom from lafayette, new jersey. Whats up caller what do you think about this cgc thats the only one im recommending. I think canopy is terrific. I like the whole portfolio. Andrew in new jersey. Caller good afternoon, professor cramer. Thank you. Caller rite aid corporation. Have you seen walgreens why dont we go to north carolina. Caller booyah, jim. So i had contact with you a couple of years ago on genpact. I wanted to see what the potential is. How high can it go we had tiger on. I thought the guy was unbelievable. I know it has moved up a lot. Thats a great story. Lets go to chris in south carolina. Caller booyah, jim. California water. I dont want anything to do with california. There is coal, fossil 2350fuel. In other words, stay away. Lets go to louis in south carolina. Caller hi, cramer, you are my guru. Whats up caller well, in march i bought medical dermatology stock with the stock symbol derm at 13. 80 a share. You are getting hit a little on that one. I think it is a nice speck. Look at dermatology is an okay business, not great. That is the conclusion of the lightning round the lightning round is sponsored by Td Ameritrade. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade the people who run publicly traded companies are supposed to be accountable to you, the investors. Thats why we which brings me to a natural gas producer. Nearly two years ago it anonsed the multibilliondollar acquisition that created the Largest National gas company. If you remember, we were out in ohio. This deal closed november of 2017. It hasnt worked out the way everyone hoped which is a way of saying the stock has been real tough. Not like the rest of the group has been any plunging more than 50 to 16 and change. Not unlike many other stocks in the group. In response, companies pointing former chief financial to run the business starting last november. Apparently, thats not enough for the two founders of the rice energy who have been advocating more drastic changes. For the past six months they have been feuding publicly with no resolution. In just a months time the Share Holders weigh in. These fights may be messy but are a great reminder that shareholders have a voice even if they only own three, four percent. We are checking in with the ceo. He had a better sense of whats happening and hear his side of the story. Welcome to mad money. Thank you so much for coming on the air. I have known eqt for years and years. I have also known utica. It has been a tough time in the natural gas world for everybody. Some places they cant give it away. It has been negatively priced. So in this environment, its not like any operator is really crushing it given the fact where Natural Gas Prices are. Thats correct. How are you guys done versus, say, your expectations in the last quarters . I would say that really the relevant time period for us has been the last six months since we took over. We took over this Management Team in november of 2018. Thats the time that we split the upstream and mid stream businesses and became a pure play natural gas producer and the largest in north america. So in that time, gas prices have fallen and its been a really tough time for all gas producers. But we have materially outperformed our peers. It doesnt help shareholders when the absolute performance isnt great. We have done better than our peers over that timeframe. Thats a timeframe where we have had a huge amount of change. We have down sized the company. We are pushing a real cultural change through the business. And were making real head way. We are seeing much better Operational Performance both in the fourth quarter, First Quarter and carrying through to the second quarter. I have checked in with the other side. Here are things they are saying. I dont want you to have to defend your life. Thats where i started my career. That was probably the most pristine and best oil play ever and the stock has been more than cut in half. You not going to get a fight from me that it hasnt been a great time. They are saying that you are the highest cost operator in the appalachian basin. Why not let the rice team take over and run the show . Its just not a true statement. They have made claims that its not a plan. They just made claims. Those claims are not based in the reality of the business and not based in Current Service cost, the amount of water that we have to dispose of. And we think that the plan we had put forward, however, is one that is based in reality, one that we are achieving. We have cut 150 million worth of costs out of the system and generated 300 million of free cash flow. So i think that what were doing is an aggressive plan. Its really not clear. You put it in as it seems like he has pretty good background. They didnt want the ceo. We offered toby rice the opportunity to compete for the coo job. His answer was no. He really wanted they offered is it possible no. We are drilling fewer wells as going to a Slower Growth mode. We are still growing production. Production in 2019 is going to grow at about five percent and generate 300 to 400 million of free cash flow. You talked about six months is the time we should look at. They are saying the tenure of the top seven managers is nine years. How can you say it is a new Management Team . I took over as ceo in november. The person now cfo worked at the company. We replaced the head of i. R. With someone at eqt for two years. The general counsel had been there for a decade or so. I put somebody else in the job. So the whole senior team was basically new. Switched up. In the end, though, look, price cures all. If we were sitting her with stock has been cut in half. The conversation would have been what a great operator it. I think when you are in the business that youre in, i watched this industry all my life, its not like you cant make nat gas go up. It is the goal to be the lowest cost producer. Given the size, scale and quality we can be the lowestcost producer. Cabot does a great job. Its not as big. Its not as scalable. The qualityof their rock is very high. Their cost structure is a bit lower than ours. Something to shoot for. Absolutely. They are a good company to compete with. I would say in the southwestern part of the marcellus basin we can be the lowest cost producer and that is absolutely our goal. Fair enough. I caution everybody. These stocks are all tough. And they went and got a bid because they couldnt make it happen. President and ceo of eqt corp. You have to do the work and study both sides. If you dont own it, if you think natural gas is coming back, its a pretty interesting situation. Stick with cramer. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. People always kme what do you worry about . I think the love of tariffs is going to get in the way of Economic Growth if he is not careful. My biggest worry is he will say to germany you guys have not paid enough to n. A. T. O. So im putting big tariffs on you. It feels like he has had such success with mexico. That may not work with germany because the germans are not going to roll over and play dead and give in. And that would be a very tough time for the market. There is always a bull market somewhere. I promise to try to find it just for you on mad money. Im jim cramer, see you tomorrow. Welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. Im juliet boydstun. australian accent im lucinda gould. And were from los angeles, california. both and we own the coop. The coop is los angeles coolest indoor outdoor play and party space. I love those colors. Lucinda Juliet and i have been friends