not individual pieces of news, but actual movement in different assets. and they simply freak out. and today, when the averages got pounded before rebounding, dow closing down 26 points, s&p declining .2%, we were in full freak out mode. what are the pros freaking out about? and how can you try to profit from their panic? right now it is 100% all about the bond market. specifically the incredible and may i say almost mindless buying of u.s. treasury bonds no matter how low their yields go. no matter how miserable a return you get. james carville, the brilliant political analyst and former adviser to president clinton famously once said and i quote, i used to think if there was reincarnation, i wanted to come back as the president or the pope or as a .400 baseball hitter. but now i'd like to come back as the bond market. you can intimidate everybody. now, when carville said that, he meant if a government was spending like a drunken sailor, the bond market vigilantes, sharp, tough, fixed income professionals who do nothing but trade bonds all the time would sell that country's bonds aggressively causing interest rates to spike. makes sense, right? think about it, if the government's going to spend like mad, you don't want to lend it money, do you? not unless you can charge much higher interest rates. but now that very logic is totally breaking down. the u.s. government's borrowing at record levels. the demands by the treasury for more money are insane, come on, tim geithner. it's insane how much money the government needs. who would lend money to those people? you either have to be an idiot or a loan shark. yet today we saw the ten-year treasury, u.s. treasury trade down to 1.6%, meaning n ining i are willing to lend this government money. where's shiloc when you need him? you can have your bond. this amazing demand for treasuries in spite of these rates is causing a gigantic freak out among stock market professionals who always keep one eye on the bond market for guidance about the economy. right now, they have both eyes on it. that's how stupefying this move is. why are the pros panicking? because this dramatic rally in treasuries tells them two things and both r & d bearish for stocks. the first is a presumption that the demand for money must be much lower than we thought. remember how old-fashioned banks really earn a living. they pay you low interest rates in your deposits and loan that money out and pocket the difference. given these current low rates, you'd expect people to be clambering for loans, but the pros assume that can't be the case. since the demand would drive rates up, not down like they're going now. think about it. if you believe we're having a housing-led recovery in this country, you'd expect mortgage rates eventually to go higher, not lower. but the opposite is happening. if you believe the economic activity is rebounding, you'd expect businesses should take down more and more loans, yet interest rates and commercial loans are falling, not rising. and to the professionals, even though the data may be different, these are sure signs that demand obviously is not picking up. and we thought it was earlier this year. and you get those bad employment numbers and people say, wow. the professionals, i don't know. i think they're jumping to conclusions here. nobody's stopping to think, hmm, just because mortgage rates and commercial rates both are priced off of treasuries are going down doesn't necessarily mean demand is really weak. but the professionals presume that's the case which causes them to panic and dump all the stocks of companies that they thought might be doing better because the economy they thought was doing better. and that's direct correlation with the bond market. they don't want to outthink the bond market. they're scared to. so they want to sell anything economic sensitive. the oil, techs, the industrials because they fear business has to be falling off a cliff or else rates would be shooting up, not down, given the government borrowing needs. the second freakout. lots of professionals take one look at these rates and say, oh, boy, something's lurking out there, something terrible. it's time to be afraid, time to be very afraid. what are they so scared about? because in 2008 we saw an increase in bond prices and dramatic increase in interest rates right around lehman brothers collapsed. this time, there's been more of a surge. so lots of prognosticators say something worse must be happening in the banking something. something positively out of a stephen king novel, like that lincoln tunnel scene in "the stand." again, the freak-outers aren't looking for bonds in the stock market. they want to go not into the fox hole, not the bunker, be straight into the fallout shelter, the ultimate flight to safety. now you know why the professionals are freaking out. we're not bond traders, right? let's profit off their freak-out. i'm not so arrogant to say you should ignore the sirens. when i started at goldman sachs, my first teacher now works at morgan stanley. he taught us that the u.s. treasury market is way too important, don't ever dismiss it. however, when rates go down, people are always going to search for a better return. right now we're making so little in treasuries that you'd be nuts not to look for a better return away from the bond market. and to me, that's good news about some, not all, but some stocks in our market. and you know what? no, let's make that great news. because as interest rates decline, the dividend yields, i like, they get even juicier. if you can find stocks that aren't particularly economically sensitive and have no response to the european implosion, they're getting more valuable by the day not less valuable as the treasury pays youless and less to own the bonds. far more credit-worthy. and that's what happened today. at one point midday the treasuries had a gigantic spike. almost by magic, we saw stocks with high yield snap right back. buyers swooped in to pick up stocks like honeywell, stocks with yields that had been become more attractive. this action makes a ton of sense to me. think about it. honeywell, 3m, united technologies, they've got economic sensitivity. maybe people aren't being fearful enough with those. do you think walmart will do worse if the economy slows? frankly, i think it'll do better. do you think they'll cut the dividend? i think they'll raise it. does this get less attractive as treasury yields get crush? i say more attractive. and that's why in the midst of all this chaos, america's retailer hit a new high today. that's an astounding figure. but i don't care. i only care about the ones that will do just fine even if things get worse, much worse this country like the bond market's saying. here's the bottom line, don't be blind and paralyzed with fear like the bond market freak-outers. stop and think about which stocks are getting more valuable because treasury yields are going lower and picket them when these professionals, so-called professionals, panic. that's what worked today. that's worked this whole horror month, good-bye, may, and it'll be working for the rest of 2012. bruce in arizona. bruce? >> caller: good evening, cramer. i'm calling from the garden of eden, flagstaff, arizona. potash or mosaic? which one put more of in my portfolio? >> i think potash is a better-run company, mosaic could be taken over. we saw once when people tried to take it over and the canadian government intervened. all that said, i like yield, i don't like the economic sensitivity, people think potash has both. not enough yield and more economic sensitivity than we thought because a lot of people can put up fertilizer plants quickly. i'll go to bill in new york. bill? >> caller: hey, jim, boo-yah from bill from long island, new york. >> long island, i'll be there this weekend. >> caller: listen, jim, i bought nike stock about a month ago and my understanding is they sold two of their brands today. my question, jim, should i invest in a few more stocks? >> look, we know -- we know from finish line, we know from footlocker, the sneaker business is strong. we know that nike's got a ton of new products available. we know that nike, unfortunately, is up 30% year-over-year, but that said i like nike on a pullback. and i like the new device that shows how many calories, it syncs with your ipod or ipad. if you haven't seen this thing, it's blowing. it's blowing. i like nike. listen, guys, stop freaking out. use the freak-outs of others to your advantage and buy the stocks whose yields keep growing versus united states treasuries. "mad money" will be right back. coming up, divide and conquer. get over your first love. some breakups can provide more than heart ache. tonight, cramer's highlighting a company that split could be the best thing to happen to its stock. should you pick this one up? and later, leaving las vegas? wall street showdown on the strip is coming to a head. cramer's taking two opposing takes on one sin city stock and facing them off in a no holds barred smackdown. stick around to find out if you should hold them or fold 'em. glass half full? domestic play dean foods has thrived. now the s&p's best performer in may up over 25%. can it continue to protect you from european woes? cramer pores over the details in his exclusive with the ceo just ahead. all coming up on "mad money." on june 15th, we're celebrating our fifth annual edition of "mad money" it's a family affair. >> once a year only, check it out. >> want to join cramer in studio for the special event? >> we're having a bit of a brotherly dispute. >> head to madmoney.cnbc.com. sign up for free tickets. >> the family that invests together stays together. ♪ in this turbulent market, you need companies that give you something extra. little extra juice. some additional catalyst that can help you make money regardless of the latest bad news from europe. that's why here on "mad money," we love breakup stories. it's not that i'm some jaded cynic that hates romance and gets a kick out of watching relationships fail. i'm talking about that kind of breakup, it was thrilling to watch that kim kardashian marriage fall apart on national tv, though. and i can't wait to find out what happens with her sister khloe and lamar odom. no, i mean corporate breakups, silly. when a company breaks up into pieces. we know that breakups have been great places to be during the current turmoil. managements are conscious that the markets aren't giving their earnings much value at all. that's the priced to earnings multiple shrinkage i talk about all the time. but a breakup changes the equation. just look at the recent spinoff of post. its quarter wasn't that good, yet the stock's been a good performer. then there's bean, the liquor company stub of the old fortune brands which has been hanging in there like a champ. and not just because i'm a huge consumer of the anything but cheap scotch that i like to sip on when i roll into home and chow down on my dirty linoleum floor. so i've got another breakup story. take mcgraw-hill, which is both the parent of standard & poors and a big textbook publisher. needless to say they don't really belong under the same roof. main they don't belong in the same neighborhood. >> the house of pain. >> and last september mcgraw hill agreed with me. they announced it would break itself up by spinning off the education business as a separate company. this is exactly the kind of breakup that unlocks value. because it's taking two businesses that don't really belong under the same roof and separating them into separate companies. they'll be more appealing to wall street on their own than they ever were together. this is the kind of breakup i like to watch on national tv. split should be complete by the end of the year, giving a growth stock that includes standard & poors and mcgraw hill education. that's a value stock with a slow and steady wins the race textbook business. now, mcgraw hill is one of the most shareholder-friendly companies in existence, unlike many other publicly traded firms. they've always done, i think, always done what's best for their shareholders. and the separation to a growth stock and value stock correctly mimics what's going on in the marketplace. since they're value oriented or growth oriented, the rubrics matter. they want one or the other, not both. the same that's willing to pay 700 times earnings for linkedin, is simply not going to be interested in a company that has a slow growth textbook company under its same roof. as mcgraw hill is currently structured, it doesn't really appeal to either group. but after the breakup, each company should have its own big constituency of money managers who will lap it up. i also from trust mcgraw hill to do the right thing because it does have excellent management. consider this, business week had been mcgraw hill's flagship property. but when it faltered, management has no qualms about selling it to bloomberg for next to nothing. these guys, they take no prisoners. tmp, willing to take tough actions. why am i recommending the stock now? because the stock has been going down. i always like the ratings agency side of the business. more on that in a moment. but i have had my doubts about the textbook side of things. that is until yesterday. when i read a terrific article in the "wall street journal" that got me thinking. this is the kind of things i do. i look at this story, textbook sales and i say wait a second, let's make money off this. apparently a new set of standards that apply to 45 states will soon hit the books. creating a tsunami of demand for new textbooks by 2014. this breakup happens at the end of the year, 2013 is going do discount 2014. this makes mcgraw hill's textbook business to me look a lot more attractive than i thought before i saw the article! okay. now, do you want to own that piece of business? i don't know, it's going to be a tax-free spinoff most likely trading as an orphan since it won't be in the s&p 500 itself. oh, cruel irony. and it can't be taken over for a couple of years. however, it will generate a hefty amount of cash and it's got this cool digital ticker as the company's partnered up with apple to release textbooks for the ipad. this is one of the last things steve jobs worked on. and i think it's going to make it so the ipad will do great. everyone's going to get the ipad from first grade on. it is the financial side i like the most and i think will be rewarded with a higher valuation once it stands on its own. the business model is simply brilliant. pay them to rate and pay to get the ratings. at a time when interest rates are setting record lows, that means there should be a ton of debt issuance. it's going to continue to come. so therefore, it is a terrific time to be in the ratings agency game. as companies are eager to refinance at lower rates while paying standard & poor's for their opinion. despite numerous critics who said s&p didn't do enough to call to attention with the ratings, the franchise actually remains as strong as ever, actually if not stronger. the role in the system is undiminished, even as you could make a pretty darn good argument that it deserves to be diminished. just like deserve's got nothing to do with it. >> look, i'm not making a judgment here. i just think that s&p and moody's represent one of the great duopolies today. plus the litigation against s&p for the role in the housing crisis giving aaa ratings to pieces of mortgage back paper that turns out to be junk has left the firm totally unscathed since it got free speech protection. this is much ado about nothing. it's a side show. and while s&p is the largest part, it's not the only part. once they get rid of the textbook business, i think you'll see some of the pieces unlocked, like this thing called plats, the energy information service. given the commodities, hedge funds trade them in and out, pension funds, the value of plats has never been greater. since you have a whole new class of buys who need their service. we also know that mcgraw hill is coming out with major cost cuts expected to deliver $100 million of cost savings by the end of the year, they've got hundreds of people working to find where costs can be cut. buyback going on. they've got a very aggressive buyback since the beginning of 2011. they have repurchased 36 million shares and an average price of $4.35. that's 12% of the total outstanding shares at a price -- not a bad price considering where the stock's trading now. the company plans to resume their bountiful buyback. but the best thing about this split, it makes it easy to figure out which company is worth. you know, before this, i could never really figure out how to evaluate how mcgraw should be valued. the financial side should be valued like moody's, the textbook should be valued like pearson, there are competitors, based on that logic that it could be worth more than $38 a share, that's 30% higher than the company is trading right now. that's a ton of hidden value to unlock and boy does this matter. lately this stock's been getting hit and getting hit hard as people aren't that excited about the near term earnings picture. even as mcgraw hill did raise its forecast, the the company has about an 11% growth rate and sells for 12 times earnings. that tells you, again, while it isn't intriguing to most buyers, but those individual parts are. and this company is tired of the disparity between the sum of the parts and the whole. here's the bottom line. we love breakups here on "mad money." and the mcgraw hill splitting into a growth financial services firm dominated by s&p and a value-oriented textbook firm should be fabulous for you if you're a company shareholder. after the break, i'll try to make you more money. coming up, leaving las vegas? wall street showdown on the strip is coming to a head. cramer's taking two opposing takes on one sin city stock and facing them off in a no holds barred smackdown. stick around to find out if you should hold them or fold 'em. and glass half full? domestic play dean foods has thrived, now the best performer in may up over 25%. can it continue to protect you from european woes? cramer pores over the details in his exclusive with the ceo just ahead. all coming up on "mad money." ♪ whenever you're thinking about buying a stock, you should always learn all the pros and cons before not after, but before you pull the trigger. and that's why we love it here on "mad money" whenever two analysts come out with dueling opinions on the exact same company. take wynn resorts that makes the bulk of its money from properties in macau. it's much bigger than vegas and what happens probably goes all over the place. wynn has been hart hid the stock falling 23% worries about potential of a gambling slowdown. it's enlightening and incredibly confusing when analysts from goldman sachs and jpmorgan each took trips and came back with two different conclusions. based on optimism about the business. but the very next day, jpmorgan came out and cut numbers. based on their concerns about a slowdown in v.i.p. gambling. we've got to rely on the analysts who actually had their feet on the street to make a decision. but what do we do when these analysts can't agree. let's start with the bull case. goldman sachs sees wynn as a stock where nearby controversies have obscured the terrific long-term fundamentals, accent long-term. the stock's been slammed courtesy of worries about a slowdown in china and macau in particular. and it hasn't helped that involved with negotiations with a former board member who was accused of inappropriate activity. and as a result has had his 20% stake in the company retired at a 30% discount. though that is being disputed in court. with the stock now almost 40% off its highs, goldman sachs thinks the negatives h