You would expect. Given that its unexpected with the dow free falling. The nasdaq down. 9 and s p down. 57. Im talking about the perspective chinese credit collapse. And we have all dethe sided it can reverberate into any company with exposure to china. Ford, coach, boeing, goldman sachs. The thing is all crises are pretty much the same in the post Great Recession world. There is the initial shock holy cow theres problems in the chinese banks which shouldnt be much of a shock at all. Until the last 24 hours, no one was focused on the credit equals gold number one collective trust. Thats the moniker of a 500 million chinese bond that could default as soon as january 31. Hurting individuals who own it or, well, the aches and pains of China Credit Trust. Another thing weve got to think about. The house of pain. We have endless ashurss not to worry because the peoples republic government has it under control. A bank possibly allowed to default there are implications that arent instantly pachd up when we have down ticks from the baltic freight index, a shipping rate, a major tell for china. And flash merchandise index report from china last night. Then with the initial shock, theres the broad panic we had today. That was immediately translateded into stocks via the s p 500 futures which take everything down. All 500 names, hence the ocean of red on the screen with just a few dots of green. There is no use fighting the initial tidal wave of fear considering the strongest areas of the market has been industrials, techs and banks. These areas have been suspect because many have ties to china. You want to buy caterpillar not knowing its run up and there is a chinese component . You want to be risky like that . You want to be first to come in United Technology and call bottom . Not for me. On the other hand, there is no reason to panic. You heard me. There is no reason to panic. In fact, you want others to panic so you can buy your favorite stocks for much lower prices than we have had for some time now. Its always easy to say, im cutting and running because of china. You should think, you know, there are real bargains created here. While china is important to the Global Economy its not as important as the United States which remains strong and on course for growth this year. One look at the robust existing home sales number this morning, good jobless claims numbers tell you that all you need to know is that we are doing better than they are. Neither housing nor employment here in america should be hurt by the potential collapse. Its still a potential collapse, not a foregone conclusion of anything in china. Because the communists may still save the bank. If you deliver a quarter that was beautiful, the way Union Pacific did this morning the stock can have a move higher even in the midst of hideous action. There are no railroads that start here and go to beijing. Union pacific is involved in cross commerce on the coast and given the 5. 62 rally, the transports were strong. Another sign things arent bad. Day one of the selloff is over. Lets go to day two of tomorrows action. Day two tomorrow is when it will be too late to sell stocks. Even as others, particularly the ones that outperformed last years 32 run for the s p might have another tough day. Tonight our job is to figure out what shouldnt have been taken down. What isnt impacted by china but has gotten hammered as surely as if it its cheap earnings string comes from beijing. I spent time on get rich carefully addressing the futures led panic should be tamed by you. I will tell you how you should handle it. My perspective can help here. As many people presume its game over when it might be game on. My suggestion for today, unless you have a specific company that reported an amazing quarter like Union Pacific or microsoft after the close you probably want to sit on your hands. Do some homework on the stocks that were brought low by the futures, particularly domestic banks, food, drugs, other health care names. Do a little buying, nothing big. How about unilever with a terrific quarter. Thats a Consumer Packaged Goods Company with colluding emerging market. How about stocks that never seem to come down. Mckesson was up huge. That will be up again tomorrow probably. Maybe it considers the charmed big pharmas like merck or bristolmyers. You have to ask yourself what does the potential collapse of a regional chinese bank have to do with the with price to earnings ratio. Bristolmyers normally i would say pick up domestic retailers. They had earnings difficulties. I dont know if they have been baked into the market. Not if you look at target or coach. Same with restaurants. The staying power of mcdonalds stock if there is a more disappointing quarter is more amazin amazing. Wendys delivered better numbers. They had no exposure to china. Chewys is up given an excellent report yesterday morning. Starbucks looks real good. I think it will be europe thats the star of the quarter. You can pick up your favorite bond market equivalent here. Kimberly clark and clorox in a classic fight to quality. So do the Master Limited partnerships. The Real Estate Investment trusts that arent connected to retail. How about the Nursing Home Company led by one of my bankable ceos i will talk about tomorrow. Debra cafaro or lynn energy. The juicy dividend stacks up well against the treshy. You only get a 2. 77 return if you own the tenure. Real gunslingers, you know, this is what they will do. Dont get mad. Theyre nutty and they love it. They will buy netflix though it ral lid 54 points today. Perhaps tesla or amazon. The cold stocks spring back first. I told you many times but its better day three material. People always jump the gun. Of course the nat gat stocks should come back with. Normally i would say the holy trinity of social and cloud. Going with the biotechs and health wellness. They were on a roll so they are up too much to pick at. Especially biogenident. Plenty of people have big gains who didnt sell today. They will take profits tomorrow. These themes could be more of a day three or four consideration. Day three is good for the regionals which are terrific to date. They were brought down by the etfs that handle financials and take everything down equally. I like the special situation plays. Dow chemical and maybe ebay now that they are under new act a vis pre activist pressures. The terrifically performing techs like telco equipment stocks, they have china exposure. Normally you dont want to be aggressive on day three. Because you dont know which ones have indirect exposure to china. The day four stocks will be regarded as sales tomorrow by many of the johnny come latelies who didnt sell today. Its not too late to bolt. You might ask, why bother, why do anything at all but sell . Why not let everything come down huge . Here is the issue. Being given incredible entry points if the chinese cut rates to fix the situation or bail out the bank that issued the bad paper. No need to rush in. Today is the first day people have heard of the China Credit Trust or credit equals gold number one collective trust. Obviously it wont be the last day. China is the second largest economy in the world. It never pays to be too sanguine many in the face of a crisis. Things in the United States are better than they have been in ages. China surprises us just when you think youre about to jump off a cliff without a net. Jim in california. Jim caller yes, jim. Thanks for taking my call. Some time ago i bought Stanley Black decker thinking the Housing Market went up and so would the stock. If the housing seems to be on the mend but the stock is languishing. Whats wrong with my theory and what should i do . Well know any minute. Theyre about to report. One thing that upset me, that was one of the worst quarters weed had. They had pobs in europe, with security. Theyre in the penalty box. The comanager of action own ohhers plus. Com thinks it may represent an attractive buy here. I want to see the next quarter because staas far as im concer the last one was terrible. Mad money will be back. Announcer coming up, time to shine . From paints to solar panels Ppg Industries is one of the best when it comes to getting things a bright finish. Can the stock give your portfolio a fresh coat of green . The new year . Dont miss cramers exclusive with the ceo. Later, dangerous drug. This biotech has more than doubled in the past year. But is it becoming a biohazard . Cramer is sounding the alarm on one stock that could threaten to hit the reset button on you. Is it lurking in your portfolio . Plus, figuring out your 401 k . Putting off looking at the retirement account or still need to get one set up . With the market on a tear over the past year, there is no better time to take a look. Cramer reveals the moves you should make now when he opens up his playbook. 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. Female announcer its time to make room female announcer for the new mattress models, but sleep trains huge year end Clearance Sale ends sunday. Get beautyrest, posturepedic, even tempurpedic mattress sets, at low clearance prices. Save even more on floor samples, demonstrators, and closeout inventory. Plus, free sameday delivery, set up and removal of your old set. Dont wait sleep trains year end Clearance Sale ends sunday. Superior service, best selection, lowest price, guaranteed sleep train your ticket to a better nights sleep on a truly hideous day for the market its hard to remember that not everything is horrible. I try to accentuate the positive. For example, tuesday we learned dan lobe, the big shot shot activist investor is taking a major position in dow chemical to push the company to break itself up. He wants to separate dows chemical commodity business from the propriety business. Thats something dupont did and its something cramer favorite ppg has been doing for years. Its run by chuck bunch, one of my bankable 21. The 21 ceos i believe in to create value for shareholders like you. Hes the king of all sorts of applications as well as specialty glass and optical products. Under bumpbls leadership ppg made you a fortune. The stock is up 4 since october but its given you a 23 return since april. Its 358 gain with reinvested dividends since june of 2009. Ppg just reported last week and though the company delivered an earnings feed with in line revenues, stock initially was hammered going from 190 the day before to 182 the day the results went out rebounding to 187. Investors realized the quarter was solid. I like the stock into weakness. Lets check in with chuck bunch to find out more about how the company is doing and where it is headed. Welcome back to mad money. Thanks, jim. Great to be back. Thank you for the recognition. Of course. Chuck, ive got to start because of the proximate cause. In your Conference Call you say, look, at this point our macro forecast is up 2. 5 . A little strong here. Obviously stronger in china today. This worry about a chinese rift, should we take that out of the equation . We feel good about china. Obviously there was chatter in the marketplace today. But our businesses are good. We had a good Fourth Quarter. We are off to what we think is a good start here in the first quarter. That may have an impact here. The automotive business oem and refinish. We are looking for a good year in 2014. We came in to the end of 2013 with a lot of momentum. We feel good about china. I like your facts more than the rumors i heard all day today. I want to ask you about the real positives here. The first is you really have a bead on the idea that commercial construction in this country could be making a comeback. Yes. We see the commercial Construction Market from several different businesses, architectural codings and the flat glass business. We saw signs later in the year, in the Fourth Quarter that things are improving. Its a little regional now here in north america. Were seeing improvement in the southern u. S. And a few of the end use commercial segments like maintenance. But we think things are beginning to turn around. We have waited for a while for this recovery to start. We think its coming now slow will you but its coming. Speaking of waiting for a while. Volumes in europe which is about a third of your sales were flat for the first time after nine consecutive quarterly declines. You must be able to get, i would imagine, because i know you cut things back to the bone, some real earnings leverage off even just the flat sales number from europe. We did well in europe despite the weaker volumes over the course of last year. We had record earnings in europe. The Fourth Quarter was encouraging. We had no volume declines. First time. Things were getting better. The automotive business in particular showed signs of life. Forecasting that will be slightly positive for next year. We see some of the countries like the uk and Northern Europe as starting to turn positive. Construction markets, still awaiting a rebound, but we see recovery now in automotive and a industrial, albeit modest. I think people have to understand when we say there is a third of your business there, if things get good in europe it could be gigantic for the swing in earns for your company. Yes. It should help us. We have seen the earnings improvement we got on negative volume this year. So were poised to really take advantage of any opportunities in volume and market growth. We see a relatively moderate or no inflationary environment right now in europe on the commodity input cost side. By think were poised to deliver if we can get some volume recovery now coming into 2014. The only person i know with price increases in the last quarter. I know you have a lot of cash. I didnt know there was a paying acquisition. It was brilliant. Are there things on the horizon now that you think a year from now well talk about as another good acquisition for ppg . Yes, jim. We have discussions really on an ongoing basis. We have been quite active in these dialogues for some time now. We have cash on the Balance Sheet for a while. We expect another good year in 2014 in terms of cash plus the divesture of the Transitions Optical business. We are in active dialogues. Some are smaller companies. We hope over the course of the next few quarters to add to our codings and specialty portfolio. Terrific, chuck. Once again an amazing job. Thank you very much for coming on mad money. Thank you very much, jim. This is another stock. Its just a bankable stock with a bankable man. Ppg, stock broke down. Take advantage of the breakdowns. You heard china is a positive not a negative. What happens if europe comes back . It could be huge for ppg. Stay with cramer. Announcer coming up, dangerous drug. This biotech has more than doubled in the past year. Is it becoming a biohazard . Cramer is sounding the alarm on one stock that could threaten to hit the reset button on your games. Is it lurking in your portfolio . [ male announcer ] this is the story of the little room over the pizza place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had the power to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did. In a little dorm room 2713. This magic moment a huge portion of investing comes down to credibility. Who can you trust . Its why i devoted a chapter of get rich carefully to 21 ceos i believe you can count on to create value for you. Seven more on power lunch tomorrow. Things are rarely clear cut. Bulls on one side, bears on the other and youre trying to make a decision. Some experts have more credibility than others. When herb greenburg, a cnbc contributor and a colleague from the street. Com and master of red flags. Warns us about a company hey, im tired. You Better Believe i pay attention. Herb wrote a piece for the street. Com questioning the sustainability of the value of phmaceuticals, vrx. Its a big Specialty Firm that last summer acquired bausch and lomb. Maybe the hottest spot in the market. I never talk about it. Thats my bad. This is up 112 in the last 12 months. The company has increased in value from 1 billion to billion as of today. In other words, in beast mode. The stock is blowing up. Two say its a hold and one lonely bear. When herb threw the ed red flag he was expressing a divergent view so for tonights sell block well look at the bull case from the analysts and the informed skeptic case from ed greenberg to see whos right. The thing analysts most like is the thing that makes herb negative. Gold man came out with a bullish acquisition. Value has gone from a small time player to a 44 billion company because its made a series of acquisitions. The difference is goldman and other bills like the m a strategy. They see a disciplined buyer with a track record that can keep doing what its been doing. Buy, buy, buy. But Herb Greenberg isnt so sanguine. To him value is just another rollup. Boo a wall street term for a company that gets growth from buying other businesses. Doesnt happen otherwise. This company did 60 deals in the last yes, 60. So far the strategy is successful. Herb thinks the fund will come to an end eventually with the emphasis on eventually. Herb doesnt time these things. He tells you that this is the kind of story we have seen often and it almost always ends badly. Herb sees a number of signs here. Not long after the currency taken over in 2008 he said the high aspiration goal was to be one of the top 15 Pharma Companies by the end of 2013. At its current value they reached the goal before the deadline. That makes him one of my heroes. Very impressive. What worries herb is there is a new target. The