Why does this continue to elude people . Why do the talking heads focus on fed tapering or even syria when what matters is the recovery in the two regions of the world that used to produce terrific earnings for so Many American companies and thats why the market rallied today. Sure, it helped that maybe there will be no war with syria, but wait a second. This was about international. The dow gaining 141 points including many of the International Companies in the dow. The nasdaq vaulting 1. 2 . Nasdaq 100, highest level since november of 2000. Hallelujah lets acknowledge that china and europe are returning, please. Why is that so hard . Weve had so much fabulous news out of china, excellent stories about target and infrastructure spending. 128 last time and that was like a 10 move. Now on top of all of this, a fantastic chinese export number, 7. 2 growth versus the 6 people were expecting. Just when so many people had given up on china reaccelerating, and so many others started to believe that seethrough buildings are the landmark and hallmark of the chinese economy, were seeing extraordinary growth spurt. No wonder the fxi has broken out here. Stands to reason when you put the economic puzzle pieces together. Hardly a day goes by when we dont see some electric number out of europe and maybe a better than expected european pmi. They have to produce better retail sales down the road or how about the little notice and the greek Prime Minister saying, the most bedraggled country in all of europe may be back in growth mode . Hes confident that 2014 will bring the turn after six straight years of recession. Spains been making similar noises. The rebound, its real. Of course, we always have to recall that china and europe are joined at the hip. The chinese export number, no doubt boosted by europe, 25 of chinese exports go to europe. The markets been hideous and its one of the main reasons china had to look inward for growth. They didnt have the export markets so they had to build inward. It was less inflationary and more sustainable. It didnt strain the credit system, one of the principal worries, and given that these turns arent the focus of most investors because theyre so focused on the tea leaves of the fed. They are no more being focused on now than when they were first happening in november in 2011. It isnt surprising that they arent being factored into the calculous of most american stocks right now because they werent when things started going bad. Hey i think its a big mistake. Why . Let me first tell you anecdotally how important this turn in europe is. A couple of years ago we went to the fabled ford plant in dearborn, michigan that makes the best selling truck in history, the f150. Al mulally was there. Hey, good news that hes not going to microsoft. I was all bowled up about ford as we say in the trading desk and thinking they were at 5 bucks a share. The stock was breaking up at 18 and i was thinking improving balance sheet, growing dividend and this could be the stock for the next couple of years. I was dead wrong. Dead wrong. Ford would be cut in half in ten months because as prescient as the company was about our downturn it was clueless about the european weakness ahead. Maybe ford was paying too much attention to rate hikes and they were being put through perhaps by the worst central banker, who as European CentralBank President was worried about inflation when deflation was knocking at the door. It went from a huge win to a colossal loss, and thats the case now, though. But is ford back above the 18 level where it was when europe started falling apart . Hardly, although the stock is closing in on it. My question is why shouldnt ford be able to take out that 18 level. The problem that ailed the company, europe is now turning and the American Market is the strongest its been in years. Or how about etn, sandy cutler who comes on the show was upgraded from hold to buy by morgan stanley. Etn has been in the doghouse since it guided in the last quarter. What happens if it turns into a tailwind with a genuine rebound in business . You dont want to overlook asia for eaton. It came before the negative guidance. It, like ford, could be breaking out here. Now think about all of the u. S. Companies that are levered to china. Not that long ago famed short seller jim chanos lowered the boom when david faber asked him about it, he called, chanos called the huge machinery maker a master short and thought it would be one of the best shorts in ages and i dont know if he covered or was long, but the stock did subsequently drop and a turn in china where caterpillar was dramatically overinventoried could be huge for cat and any better orders out of china will take the worstperforming dow stock higher, 10 , perhaps more. How about cummins, cmi. And cummins is relying on china for the upside. All right. Lets talk about the elephant in the room. Tomorrows big launch is all about a new, cheaper iphone. It dovetails nicely the next day with china mobile, a gigantic chinese carrier that has not been a friend of apples. Talk about a reason for these naysayer analysts to upgrade and raise targets and oh, boy, are you ever going to hear that, and maybe you dont recall, the analysts gave the company a real beatdown over a lack of chinese customers. This less expensive phone is the answer to the naysayers for apple. Best of all, it could be joy global. It gave hideous guidance. Mike sutherland here today and then you can see the numbers. Oh, man, that was awful. And what has joy global done after that miss, as well as multiple downgrades . How about being up a buck . What does that tell you . Doesnt that mean the stock has bottomed with the worst quarter and worst guidance . You know what i mean, the orders. The orders were hideous, and to me that smells like a bottom. Dont forget, china opens a new coalfired power plant every ten days. Yeah. Ten days. You need joys equipment to get coal out of the ground and the new government in australia and it seems to care about not just about the environment. We all want to care about the environment, but about jobs. That means more business for joy, and i am calling that last quarter a trough quarter and thats why joy is so aggressive in its new buyback. There are so many other implications to get the turning point in china. Could that be why fedex doesnt come in despite the quarters . How about csx . That was breaking out today. Theres a possibility to an end for the food and Drug Companies that endured endless reductions in earnings where the euro is translated into dollars. It could now bounce back. Notably, the poorly performing cisco and the seemingly slow going google, and google is a huge business in europe. For china, theres a gigantic potential gain for general motors. General electric does solid there, as does nike. Take one look at yum, parent of kfc, stumbled badly again and the number that you got. What happened . The stock flew up because people want to believe the best about china. People were blind to the changes and these two huge markets will miss the federal reserve. Whatever setback we may have with the messy economy because of higher rates can be made up by europe and china. It just wont be the same stocks. He can substitute cyclicals for the homebuilders and the Interest Rates went down a little bit and go with the multinational banks and the domestic banks and pick the tech over to europe. Heres the bottom line. You die by the europe and china sword. You live by the europe and china sword. Right now the socialists in europe and the communists in china are bailing out the latestage capitalists in the united states. It couldnt come at a better time. Tom in colorado. Tom hey, this is tom. Big booyah to you from boulder, colorado. Man, i know. I like peyton. Peyton looks good. Whats up . I saw lululemon was upgraded today and i bought it in the low 80s before the Christine Day news and then again in the low 60s. My question is do you think the management of this company can get it together and take lulu to the next level . I was going back and forth at the open house at realmoney. Com that was free this weekend and bob said that lulu was going to break out. I was questioning it because Christine Day who is the person who runs it is not going to be running it anymore. They have some momentum there. They do report this week. That makes it five below is my pick of the week, not lulu, but i think look, the stock is signalling that the quarter is better and that may be a false tell. I am not going to get behind lulu until i see how the ceo transition takes place. Im sorry. Im sure ill miss a couple of points here. How about pierce in texas, pierce . Thanks for the investments. Of course. The stocks up a lot in the past year. And its at a 52week high. What do you think . I think it goes much higher. I think its one of those stocks thats in the sweet spot. It reminds me what we thought about radiant and genworth. Remember what ocwen spells backward. It stands for newco. A palindrome. Jimbo, a happy booyah to you, my friend. Next time we talk, well either be 10 or 01. Whats up . Its only a matter of hours. Hey, listen. Thanks for taking my call. I want to ask you about prudential. Prudential and other life insurers come up as Interest Rates go up and ive liked prudential for a while, and theres also the only life insurer that challenged being systemically, and i was wondering what your thoughts are on the whole for buying it, holding it, and the risk associated with it. Why do i not want to buy it . Because my Charitable Trust thinks that aig, stephanie link and i go back and forth with this. We think that aig has got catalysts. It does not have catalyst, but i wouldnt sell it if i owned it. Live by the sword, die by the sword and then live by the sword again. Im talking about china and europe, and were getting help from our pals overseas. Can you believe it . Theyve been such negatives. Theyre now positives. It couldnt have come at a better time. Mad money will be right back. Coming up, the right medicine . The cancerfighting biotech firm Seattle Genetics is tearing up the market, surging over 90 this year. Can this pipeline of therapies keep the bears at bay . Cramer is sitting down with the ceo to give this stock a checkup. And later, a cut above . Despite tough times for retail the Company Behind calvin, tommy and more has been bucking trends and strutting down the the wall street catwalk. Can the stock keep lining your portfolio with profits or is a markdown looming . Dont miss cramers earnings exclusive with the ceo of pvh. Plus, rising star . Born in beverly hills, City National bank is expanding to serve clients from coast to coast. Its 30 rise has investors saying hooray for hollywood, but could rising rates pull the red carpet from under it . Dont miss cramers exclusive, all coming up on mad money. 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. What made new highs today . Seattle genetics. The 5. 5 billion biotech. You know ive been a big fan of this entire space. The company uses antibodybased technology to search and destroy cancer cells without causing Collateral Damage to healthy tissue thats nearby. Its a big step up from chemotherapy which is the medical equivalent of that apocryphal vietnam story about destroying the village in order to save it. Sgen is everything we like in a biotech. The companys main product was approved for hodgkins lymphoma two years ago. It has 20 other Clinical Trials going, studying this drug on various different forms of cancer. Four of these trials are in phase three and that includes a fast track study for tcell lymphoma. Thats not even the companies with big pharma players that could bring in billions of dollars in milestone payments that could be one or two a year. Sgen has given us an 88 gain since we spoke to the companys ceo just last december. I think it has more room to run so lets check in with dr. Clay segal. Hes the chairman, president and ceo of Seattle Genetics, and find out more about where his company is headed. Welcome back to mad money. Nice to be here, jim. Have a seat. Thank you so much. Ive been thinking about this drug and all of the different applications. It seems like it is a pipeline in itself. Yeah. As you said, we have over Clinical Trials along with etceteris, four phase threes, and different disease settings and frontline therapy. So when youre first diagnosed. Our approval is hodgkins lymphoma and in the relapsed settings and were redefining what patients get in the front line. In the Conference Call you did mention some of the doctors are trying to use it off label. Is this because its saving more lives than what theyre currently using . Its not an incremental cancer drug that gives you a little bit. This is something that safes lives and it is something that benefits a lot of patients. Were excited about it. Explain the difference between current therapy and your therapy and the first line and why you should be first line. You mentioned tcell lymphoma. It is treated about four drug cocktails, c. H. O. P. As its called, and it gives you a 45 complete remission rate in tcell lymphoma patients. We did a leadin trial to our front line phase three trial and we showed that if you did etceteris plus chp, we got rid of neurotoxicity and we have an 88 cra, almost double so then we went to regulators and u. S. And europe and japan and were doing an international study, 300 patients and 150 with c. H. O. P. And 150 with chp adcetris and we redefine therapy by making it less toxic and more effective. Would that be something that we find results then . Not for this specific trial. That will take longer. We submitted quite a few abstracts to the ash meeting in december and well have to see what gets picked up. You mentioned the submissions arent even here yet. They are due soon to ash, and who are they to accept or not accept . Well, ash gets loads of submissions. They cant accept everything that comes their way. They have to pick and choose, but we usually submit quite a few to ash and they have committees that accept them or not. They were due in august so we did our submissions already. A lot of Biotech Companies have been coming public and a lot of them are raising cash. While some analysts think you to raise cash, its really your discretion with these partnerships. Yeah. The partnerships have been great. Our Main Business is to develop drugs to treat patients that have lifethreatening diseases and have cancer, but we have another part of the business and thats working with our technology and other companies and we are thrilled that we have 12 partners. We do about one to two partnerships per year and it puts our technology in their hand and that brings in substantial upfront money and royalties. Lets say for the tcell lymphoma. It would be 10 billion dollar market and youre keeping american rights and letting rights go to others . With our Technology Partnerships those are where the other company uses their own antibody and we use our technology and we have global rights and thats the technology. With adcetris we did a partnership with takeda and we own u. S. And canada and we have sales reps selling the product and we approved it now in over 35 countries, the Millennium Group from takeda sells it internationally and we get milestone payments and royalties. Sg75, phase one Clinical Trial of renal cell carcinoma. When i see phase one, it basically means three years before you see any results on this . Sometimes its quicker than that. We have seven products that we are developing in Clinical Trials and the first was for aml, acute myeloma leukemia. We have a new one that just started in phase one that weve been working on for years, jim. One of the things, some of the analysts a lot of people feel that literally that the cycle, that everythings gotten overheated, and i get that, but regeneron and celgene, you guys have been delivering, and i didnt really understand this, frankly. Included in the quarterly update we heard was that the fda will not consider label expansion for adcetres to include a retreatment claim at this time. It sounds like thats not necessarily the case. What happened is we went to the fda with two data sets, one looking at getting rid of the 16cycle maximum, which was a really critical one from a commercial standpoint, and from putting this in the hands of the doctors to make decisions for their patients and then the other one we asked for was retreatment and we got the removal of the 16cycle cap which was actually much more important of the two. Okay. Because it made it sound like the more important one was retreatment and if the stock keeps going higher and higher and i have to find something bad to say, because theyve been overrun by the goodness of your products. Thats what i think happened. Thats dr. Clay segal, chairman, president and ceo of Seattle Genetics, one of the biggest winners. They have one of the most amazing drugs currently on the market today. Stay with cramer. Weve been pointing out a major retail theme. The consumers in america seem to be holding back on apparel and maybe spending more on hard goods, and that doesnt seem that all of the apparel stocks are hard. Consider pvh, the Company Behind pvh and Tommy Hilfiger, and pvh is a major explosion in europe and something that could become a powerful positive and a tailwind and not a headwind once the european economy is starting to roll. The company delivered twocent earnings beat off of the 1. 37 basis and although the guidance was downbeat versus what some of the analysts had hoped for. As of today the stock is up 19 since we spoke to the ceo and that was just back on june 12th. Lets check in with the fabulous and bankable chairman to learn more about the quarter and whats next for his company. Manny, welcome back, to mad money. Thank you, great to see you. I have to admit, im confused because on the one hand, this is a fabulous quarter. Our results from the quarte