To the inability to get a nafta replacement deal done with mexico and canada, to the federal reserves lack of sensitivity to the strong dollar put it all together and the industrial economy just cant catch a break. And thats why the market exploded higher on that robust employment figure. Dow gaining 373 points, s p soaring 1. 2 nasdaq surging 1. 40 it didnt hurt that we were oversold look, i know the Unemployment Rate is down to 3. 5 lowest in nearly 50 years. But it has to do with the makeup of the economy the manufacturing side of the ledger is not just doing that well the weakness in manufacturing hiring gives fed chief jay powell all the ammo he needs to justify cutting the federal funds rate that may make it more in sync with the traditional curve of low short rates to higher long ones normally, you wouldnt expect the fed to hit the accelerator with the jobless rate this low, but wages are still stagnant and theres no inflation to speak of basically, if powell is asking himself, why not cut rates, well, the answer is, theres no reason not to. A rate cut could deliver some muchneeded help to the ailing auto industry, because car loans are priced off of shortterm rates, but also result in a weaker dollar, giving our manufacturers a big boost against their foreign competitors. Again, why should the fed cut . Because right now, the tenyear treasury is at 5. 52. Federal funds rate, the overnight rate is at 2 thats nuts. Powell should be taking his cue from longerterm Interest Rates here thats what he should be doing, but he seems a bit oblivious this to obvious signal, as do most of the commentators that come on cnn who say that hes wrong and im wrong and i agree with the president maybe if we werent in this trade war with china, the fed wouldnt need to cut, but thats not the world we live in i think the president is right when he says the fed funds rate is too high for no reason. They should do the same thing right now to get out of the head of potential slowdown. With the same alacrity they had. We know the tariffs have hurt the chinese economy, but we dont know how much. The communist party of china doesnt necessarily give you a full report. They do put out numbers, though, and on monday, well see the pmi reading. This is an important gauge of manufacturing. When our pmi disciplined earlier this week, it crushed our averages it doesnt know how much they filled with their own figures and, meaning its a good way to detect some trends, even if the absolute numbers become dubious. Im betting the chinese pmi will be as bad as the communist party lets it be, which will probably not be so good this is extra important, because it sets the stage for the trade talks on thursday, okay . Part of todays rally can be traced back to larry kudlow on another network. Hes the president s chief economic adviser, who said that there might be some good things coming out of these negotiations he just said it, like that the market exploded. Now, personally, after doing our homework, im a little more circumspect. Sure, the chinese might buy some commodities from us. A show of good faith but the president s over that. He wants real structural change. No more intellectual property theft. No more forced joint ventures. No more fentanyl flooding into this country illegally and those arent just the those are table stakes before anything gets going here i simply dont believe these substantiative issues will be solved china would rather suffer the tariffs than fundamentally restructure the economy. So come october 15th, i expect the u. S. Will go ahead with its plan to raise tariffs on 250 billion for the chinese goods from 25 to 30 and frankly, if todays rally, im not so sure the market is ready for the next round of hikes. I think its going to surprise to the negative. Beyond china, we have some important earnings next week dominos and levis report on tuesday. These stocks have been suffering, right now, i think theyve actually priced in disappointment, although they bounced back a little bit recently. And i wish they hadnt, before they went to the quarter to report i think dominos has been hurt by all of those thirdparty Online Delivery Services and the ceo said the same thing on our show and they can afford to lose fortunes building their businesses, because theyre playing with Venture Capital money. They dont report yet. The best thing dominos had going for it versus the competition was its fantastic Delivery Network thats no longer much of an advantage. However, yesterday, wedbush, a totally prescient report, said that much of the negativity is already baked into this stock. Skp they also called into question whether doordash can afford losing money at the pace that theyre losing it. Will this be the quarter where dominos delivers . Lets hear what they have to say. I would love to be able to say that, you know what, its over, but i know that its not i own a restaurant and a bar and i know its not. But this stock has gotten cheaper. As for levis, the apparel business hat gotten rough, especially jeans again, the worst might be baked in i dont think theres much downside to levis, but i have no idea what might drive it higher, if the Department Stores that carry the merchandise are still struggling and we know they are not much happens on wednesday. Its the solemn jewish holiday of yom kippur, although usually its a day where analysts like to go light on everything market moving, companies dont report we do get application numbers. And these have been real standouts of late. And theyve moved the whole housing sector up, led by Lennar Mortgage rates make housing rates enfuego. If youre a frequent flyer, its hard to believe that the airlines arent in great shape nearly every flight is extremely full, but the industry has some competitive root structure these days and competition has been the bain for the airlines. Once they start competing, competition comes down the transports in general have been an outrageously bad place to be. I dont expect deltas quarter to change anyones mind. Hormel holds an Analyst Meeting on thursday. This reenergized food company has done an amazing job of reinventing itself with the acquisition of skippys, applegate farms, and justins. Its been a long time since hormel was just spam i think you can buy it ahead of the meeting. I love a pullback, but this feels a lot like mccormack finally on friday, wendys has an incredibly important Analyst Meeting. I think theyll be able to explain why theyre entering the ultracompetitive cutthroat breakfast business, something that was greeted with surprisingly negative trading. Wow, its stock got hammered. I bet the meeting moves the needle back. I would be a buyer of wendys ahead of the Analyst Meeting bottom line, i know earnings season has kicked off already, but were still in the slow dribble phase, as you can tell the weak after next will be insane better batten down the hatches and get ready for companies to adjust their numbers going into a new round of tariffs that, because of hopium theyre most likely unprepared for. Andrew in michigan andrew caller hey, jim, whats going on thanks for taking my call. Well, you know, im just focused on trying to figure out whats going on with the trade talks. How are you . Caller im good. Im good hey, so, got a quick question for you. Bought some Lamb Research about a year ago and its been on fire up about 85 just wondering what your thoughts are on selling or all right, well, our Charitable Trust owns a big slug of it, why, because when tim archer came in there, he exercised a tremendous amount of discipline, but bought a huge amount of stock back, and the cycle is back, the equipment spin cycle, and that means lam goes higher still. Its inexpensive, too. Its got a 2 yield. Bill in illinois bill caller hey, jim. Im a firsttime caller from the suburbs of chicago okay, love chicago. Caller i want to know how to trade altria over the next four weeks and through their Third QuarterEarnings Release i expect earnings to be in line, however, not sure if theyll take an impairment charge for their 12. 8 billion investment in juul now or wait until their auditors push it until later this year. The stock has lost 15 billion since the start of the year and also the stocks lost 62 billion in market cap. Its doomed well, why would you want to own it whats the catalyst here are people going to start smoking again . I mean wing that what they did with juul remember, i would rather have my kids drool than juul what my kids did with juul was not right. And im trying to be diplomatic about it no, i dont want to be diplomatic they tried to hook a whole new generation on tobacco. And i dont have a reason i want to own the stock ive got real Growth Stocks that dont kill anybody i think thats a better theory on why you should invest and am i angry about what happened with juul i watched Carl Quintanillas documentary and you bet i am and i havent started seething ever since then. Fda, you let us down, by the way. Facet up and get ready for companies to have to adjust to numbers lower if these talks dont work and i dont think they will. On mad money tonight, from cleaning to cooking and everything in between, clorox has its hands on some of the worlds biggest brands, but does it still have the growth to wipe up on wall street . Or could it become a stain on your portfolio im behind the company after its analysts, and can stitchfix still dress to impress, despite its drop following earnings . Im sitting down with the ceo to see how to get this stock reignited and the reits have been roaring. Is it time to circle the wagons around the investment space . Ill give you my take. So stay with cramer announcer 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 madmoney. Cnbc. Com. Over the summer, we had a big rotation with money fleeing from the highflying Growth Stocks, millions of neglected staple names, especially the expensive packaged goods plays, but there was one stock that got left behind. That stock was clorox. After lagging for most of the year, clorox has spent the last few months rolling over, rolling over to the point where the serial outperformer is now in the red for the year im not used to seeing that, are you . You know ive been a big believer in this company i think its got a great house of brands, terrific management its led by ceo ben adore, been on the show many times so when clorox held its Analyst Meeting earlier this year, i hoped they tell a better story, something that would give people a reason to buy the stock again. Long story short, thats not what happened. The Analyst Meeting wasnt a positive catalyst at all it was a negative one. Clorox cut their sales and earnings forecast for the current fiscal year. I think the stock would have gotten hit a lot harder if it hadnt already pulled back hard going into the event but it still slipped two bucks on wednesday before falling another 3 wednesday, after the analysts who follow this thing cut their estimates en masse but today the stock cut fire, erasing yesterdays decline and then some. And you know what . I think its not done going higher in spite of that unexpectedly down bate analyst day, i think this is the time to start buying clorox, although i wouldnt buy it all at once why should you even consider buying the stock of a company that just guided down. To me, that bearish update feels like a kitchen sink event, a cleansing moment where management resets expectations by getting all the potential negatives out in front of you. If this market stays volatile, clorox could be exactly the kind of stock that works. First, lets go over these negatives, because theyre in control right now, and because theres actually good reasons why the stock has been a stinker. The last couple of quarters were less than stellar. In may, clorox reported a slight top and bottomline miss and modestly cut their fullyear forecast, blaming promotional activity in wipes along with weakness in bags and wipes a lot of competition in this market at the beginning of august, they gave you a messy quarter with genuinely disappointing guidance, including lower than expected forecast for organic Revenue Growth in earnings per share. Once again, they struggled in certain categories, and this time management suggested that the second half of 2019 would continue to be rough while clorox told you they believe in their strategy, investing in their brands, they also told you not to expect any pickup in sales, until next year which brings us to wednesday, when the Analyst Meeting rolled around and clorox threw this kitchen sink at you. Wiped, i hope, by some of these great products the company meaningful cut their forecast for the forecast year but other than flat to 2 sales growth, theyre talking about a low single digit decline to up 1 thats really not great. Although, none of that weakness is organic they left the organic growth forecast unchanged, and thats what people really looked at on this business. Clorox lowered its gross margin guidance, and they say its going to be down slightly and took their earnings forecast the old midpoint was 640, now its 6 15, down appreciably. So how the heck can i look at this and tell you its time to buy the stock . Have i lost my mind here no, i think ive just done homework first of all, you need to understand that clorox has now reset expectations i think the numbers are now low enough that they can be beaten maybe its even classic upod, overpromise and under deliver. Weve seen this promise before in january, mccormack cut its forecast, stock got trounced, and it turned out to be a fabulous buying opportunity. Since then, mccormack raised its guidance twice apple did the same thing remember when they issued that q2 guidance at the beginning of the year that stock has gone from 142 to 225. One of the best performers out there. I think clorox has an opportunity to do the exact same thing, but thats not all. We got good news from the analyst day that i dont think anyone noticed because everyone was laser focused on the labor cuts the company rolled out a new longterm strategy with new forecast 25 to 50 basis points of operating Margin Expansion and copious Free Cash Flow generation the issue here is that most analysts just dont believe clorox can do it they dont think they can hit the targets. Theyre really doubting, but i like the sound of the new plan they want to invest heavily in their brands and innovation, to differentiate their products from that private label competition. That makes sense to me if clorox can deliver on these goals, the stock deserves to go much higher. That strategy makes a lot of sense to me, even if clorox doesnt seem to be seeing a lot of benefit from it at the moment more importantly, doar seems to have a very good handle on whats going wrong in the companys most troubled categories, like glad bags the problem, clorox raised prices last year most of the competitors left the prices unchanged in response, retailers have been punishing clorox by giving them fewer points of distribution thats the problem and doar says hes working with those retailers to get that distribution back. I think hes going to succeed at that and the company also mentioned that theyre rolling out a line of burts bees personal care i really, really like this wheres my burts bees stuff i of course dont have any burts bees stuff. Thats my bad. The burts bee actually, i have some in my bag. Not this kind, though. Its going to be infused with cbd. And i think it will be a big hit, because it will be the first truly national trusted brand to offer balms and salves who doesnt know burts bees after all the money clorox put behind it . Finally, its worth putting out that clorox has been through this before. In 2016, the stock got hammered based on worries that the environment was too promotional and the private label competition too fierce the stock bottomed at 110 on november 10th of 2016. Five months later, it was 138. We saw the same darn thing in the beginning of last year, too. The Stock Plunged at 113 in april of 2018, everyone fretted clorox was a broken stock, boom, 167. Bottom line, when i see this kind of pullback in clorox, i dont think sell, i think buy. Although there might be more downside before it bottoms but ben doar is an excellent ceo which is why im willing to stick my neck out and recommend putting a small position of putting some clorox in your portfolio and then i think, you know what, buy more if it pulls back, because look whats coming cannabis under burts bees name you tell me that wont be bomb haha balm, bomb lets go to dan in illinois. Dan booyah, wizard of wall street first time from the corn fields of illinois. Thank you caller hey, im in the house of pain with alis bargain outlet can you give me a reason not to have my own closeout sale on ollis ill have to tell you to stick with ollies it really did bomb it did not deliver the right number remember, i like either off price or online. I think ollies can come back. Charitable trust, though, likes burlington much more and what we really like is the fact that we found some burts bees and its the bomb balm i always say better late than never, frankly looking for a beauty and the bleach look no further than clorox. Kids at home, do not drink this i think youre getting a buying opportunity here much more mad money. With tenyear treasuries slumping, you might be wondering if its time to invest in reits. And stocks started with todays job reports, but im offering up a list of plays that could be too cheap to ignore even after the roar and all your calls rapid fire in tonights edition of the lightning round. So stay with cramer i wanna keep doing what i love, thats the retirement plan. With my annuity, i know there is a guarantee. Its for my family, its for my self, its for my future. Annuities can provide protected income for life. Learn more at retire your risk dot org. You mighyour joints. Ng for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. What in the world is going on over at stitchfix the online