The second week of february we have seen this phenomenon play out and today was no different even as the dow did slip 80 points s p declined 8. 4 . Nasdaq lost 1. 1 . [ sell, sell, sell ] it was up yesterday. What do i mean Pricing Power . Im talking about a companys ability to raise price on its goods and not meet any resistance when it does. The ones that can have stocks that bounce back quickly from marketwide turmoil or they hang in like champs. The ones that cant, they dont come back. Or they fall behind when the market bounces because their earnings per share numbers are in jeopardy. Who has it . All right. The market was down. Many stocks consolidated gains we have had over the last couple of weeks in a way that showed me the companies underneath can with stand promotional and discounted pricing. Take apple. [ bull bellowing ] one of the reasons i say own it, dont trade it. [ buzzer ] is because am has the ultimate in pricing pou. I get tired of wall street flitting in and out of the stock. Some sort of rental car you use for a couple of dayings and dump at the garage. Apple unveiled a smaller iphone with special features with cachet that captures what an entire aspirational cohort in emerging markets seems to want. I think those who sold am on this announcement and many did, didnt understand the signature positive of the new phone. Even though its smaller apple can command a high price for its wears. 399 aint cheap. There is no pricing pressure because the products are regarded as the finest in the industry and it has an ecosystem that generates 30 billion in revenues a year. If you already have one you are probably paying for apps and services. I doubt you will think twice about forking over the money. Youre part of the ecosystem yourself. Apples Pricing Power is legion among the strongest i have seen. Alphabet and facebook have power too. The search function and profiles are the two best places to reach people, particularly millennials where you get them early in a digitized worl world. Can they charge what they want . I dont know. Maybe there is a ceiling but for fr the looks of Gross Margins which are the best judge of things its not clear to me. Jack Moore Research director of the newsletter for 34i Charitable Trust called action owners plus. Com, he and i held a Conference Call with hundreds of members today. I found myself talking about how many investors think the stock of facebook is expensive and needs to be sold. However, if you go out until 2018 where i think the company could earn as much as 6 a share, it its alltime high reached today, Pricing Power of 117 doesnt seem that nutty. You pay slightly more than what the average stock sells for now for a company with an amazing earnings stream not challenged by pricing pressure. Normally with any company we talk about on mad money. Think about what can go wrong between now and 2018. Facebook has Pricing Power because it doesnt have much competition, if it has any at all. That makes the 2018 number more likely to come true. Who else . I hate to say it but tobacco has Pricing Power. They would break out the all time highs here and now. You can think Pricing Power for stocks is whats doing it. Thank Pricing Power. These are pretty fixed markets. You cant advertise here if you make cigarettes. You wont take share from anybody. Stay static and print money. Lets talk about who doesnt have Pricing Power. On a down day you can really see that action at work. Minerals commodities were down but today oil fell more than it has on any day since the bottom of february 11. Down to 39. 72. Do you know why that is . Because at the 40 level a ton of Oil Companies are coming in and selling oil futures to raise cash so they can pay the bills. The Oil Companies have no Pricing Power whatsoever. Until the recent glut there was a market the supply could barely keep up. The United States harnessed new technology, produced more oil than anybody thought was possible, just a few years ago and a glut developed, exacerbated by saudi arabias decision to lower prices by flooding the world with oil. In order to drive the marginal producers in this country out of business and frustrate irans attempts to develop new oil fields. The oil glut turned these stocks into punching bags. And every time they run up i think you will get a good chance to [ sell, sell, sell ]. This is my lower longer thesis at bourque. The companies are desperate to pump crude so its selfdefeating. Do you know what else has no pricing ability here . Cant raise prices, has to keep cutting them. Quick serve. Last night krispy kreme reported a disappointing quarter. Why . Management said the requirement is too promotional. We are talking about coffee and doughnuts. This is what we heard from jack in the box and popeyes and dunkin donuts. They cant raise prices and there is pricing pressure town. Why not . One word. Mcdonalds. Because of mcdonalds which is pretty much declared a price war against the entire industry with value propositions that can only be done by a low cost producer which mcdonalds is. You cant compete on price and not expect to get your stock clobbered. What else . The airlines are a group that there could be shortterm price pressure because of recent additions and the dressage di in brussels. It could be short lived because travel will bounce back. The reason the Airlines Sell cheaply versus earnings is a perceived lack of Pricing Power in the future given that the dollar got stronger, something i believe is an aberration. I feel lonely with that position. The power to charge more for foreign travellers will diminish if the trend continues. Finally, consider the group that once seemed to have the ultimate Pricing Powerle. But now is regarded as being one step away from a price war at any moment. Im talking about the drug stocks. Gilead is a cure, not maintenance. But a cure for hepatitis c thats raked in 20 billion in sales in a couple of years. Perhaps the greatest launch of all time. Today gilead stock fell almost 4 . Why . America won a Patent Infringement case against gilead. More of the count for the fall is the stock market recognizes gilead will lose Pricing Power for the 84,000 a year drug. If gilead loses that Pricing Power the stock will go lower and it is down 11 for the year. The drug complex has come down as people fear that punitive president ial candidates donald trump and Hillary Clinton will use the governments Bargaining Power to negotiate thats the key word. Negotiate with the Drug Companies for medicare. Negotiate the code for what could amount to almost total loss of Pricing Power for a group that used to command it for years. Heres the bottom line. Dont forget this battle over price define as lot of individual stock action and that the stock with Pricing Power bounced back faster after yesterday and those that dont, they are destined to trade water or go lower when the tide goes out. Curtis in North Carolina. Curtis. Caller hello, jim. Thanks for taking my call. Today i would like to say congratulations on 11 years of mad money. Outstanding, jim. Thank you, curtis. Do i owe my starbucks card to you . Caller yes, sir. Thank you very much. Sent me a cup of coffee. Caller outstanding, man. Listen, in contention for the upcoming contract for the u. S. Armed forces. I know this stock. Im going to use the term unfortunately but smith wesson is going up a great deal. It goes up on every terrorist incident. Thats driving the stock. Its not cheap, but i recognize that it is something that works in these situations. Lets go to mike until new york. Michael. Caller hey, jim. Thanks for taking my call. Twopart question regarding the Cyber Security industry and in particular fire eye. Right. Caller i started watching the company after the target breach. I heard the Company Provided software that target ignored the alert. Tried to avoid a falling knife, was going to wait for year end tax loss selling. Picked up some stock around 13. Nice going. Caller moved up nicely. I have seen option volume. I wanted your thoughts on the industry and a possible we are best of breed people. Visa, malo alto and for spec, cyber tech. Fireeye, people want it for a take over. I dont like it when i think the earnings are uncertain and the earnings are uncertain for fireeye. Owen in new york. Owen. J caller booyah, big jim. This is owen from brooklyn, new york. I want to stop by and knock back a few at bar san miguel. Caller dwiter. Do you think we are headed for a take over . Will investors profit from twitter . Do you buy, sell or hold . Twitter is a conundrum for me. I have a small piece for my Charitable Trust. Its not growing. We like stocks of companies that can grow. If you cant grow, your stock is stuck. They have to find growth or it is not going higher. It is going lower. Its a price war. Thats whats playing out among individual stocks. You saw the action today. Those with power bounce back the fastest. Those who didnt got crushed today. Mad money tonight, catch the move if you can. Tonight i will focus on retail reevaluations happening before your eyes and the company is onto some of fashions biggest brands. Tonight i have pvhs ceo as the stock moves after earnings. With march madness in full swing, im giving you my elite 8 leaders of the business world. Stick with cramer announcer coming up everyone told me when i said i had you ask why nfl players go broke all the time. Announcer cramer is on the field with Philadelphia Eagles brent sellick just ahead. 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. We need to be ready for whatever weather may come our way. My names Scott Strenfel and im a meteorologist at pg e. We make sure that our crews as well as our customers are prepared to how weather may impact their energy. So every single day were monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. During storm season we want our customers to be ready and stay safe. Learn how you can be prepad at pge. Com beprepared. Together, were building a better california. Heres something amazing. Buyers and sellers are making decisions at lightning speed these days. Then they are undoing those decisions within hours. Instead of the way things used to work. It would have taken days or weeks for people to change their minds. Take the tragedy in brussels. Initially the stock market collapsed on the news. Slowly segmentsf the market that had nothing do with terror or couldnt be connected to it started coming back led by health care, particularly pharmaceuticals, then tech and domestic utilities. Even International Growth stocks turned. By the end of yesterday the nasdaq finished up and only the travel and leisure stocks stayed down. Thats remarkable. In the old days i could see the sell decisions undone and reversed maybe a week later once the coast had cleared. Now it takes just hours, almost as if there is an algorithm, a machine, a watson saying, okay, this is the average decline after these terrible events for these particular sectors. Time to pounce because they will be higher in a week anyway. Logical. The reversal was breath taking in speed and recalibration. Anyway ke was in free fall last night and this morning. It failed to hit high bars after a remarkable run. I went over the quarter and i liked what i saw. Sure north america was up 14 . How could you be unhappy with western europe in 12 or china up 27 . Maybe the futures orders which are often a predictor of the future werent perfect. Yes, under armours choice of stef curry may have cut into lebron or jordans sales. Adidas might be back in the game. There was more inventory than i would like to see. The stock had run from 58 to knot of 64 going into the report. Had 107 billion in market cap. Anyway ke is normally like a battleship. Hard to turn around. Down to a couple dollars and maybe in a few days time. This time, intraday took hours. People realized perhaps anyway ke is one of the best plays on china if not the best in the world. You want to own anyway ke in the olympics. The stock going into the close. I regard it as remarkable. Swan to Ugly Duckling ambassador back to swan in about 15 hours time. It as well as the rest of the market came for profit taking at the end of the day. Im always looking to play the emerging dollar store trend. We liked Dollar General for ages. I thought i might have had a new one in five fwe low. With improving Gross Margins. Well distributioned system that was the bane of quarterly earnings. The stock was up more than 20 going into today. When 5 below didnt shoot the lights out. Thats the same store sales lights it was crushed at the getgo. Buyers reevaluated on the top. Again we got a pivot higher than a different market never would have taken place after a couple of upgrades over two or three days it could have happened. The stock traveled from down 2. 50 to up in record speed. Suffice it to say the revaluations on the fly are something new to watch for. You may be thinking to take the bait of the first leg down rather than waiting around a few days for a turn. This market says stick around. The truth will out faster than you think. Faster than i have ever seen. A brand new trait of the remarkable year thats 2016. Much more mad money ahead. Dont put all your eggs in one bracket with march madness in full swing, i will show you a better way to make it rain when i unveil the wall street players that can elevate your game. From call vain to tommy to van heusen can pvh remain the star of the run way . I have the exclusive of the ceo fresh off earnings. And fly eagles, fly. Tonight philadelphias own brent sellick to look at his entrepreneurial side. So stick with cramer. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com march madness is in full swing and by this friday the initial field of 68 teams will be whittled down to the elite 8. With bracketology on the mind its worth asking who are the elite eight ceos, the executives who put their companies in the best position to win for you now. Im talking about truly bankable people like those i outlined in get rich carefully who can make a difference to their enterprise in bad times as well as ones everybody else can do in the good times. Im talking about my heroes here. I will roll out the list in two parts today and tomorrow. It is a mix of the old guard like coach k. At duke or williams at North Carolina and new faces along the lines of jay wright at villa nova or bennett at uva. Who are the members of elite 8 . The long time ceo of honeywell running with a terrific conglomerate since july of 2002. Since he took over honeywell is up 220 , more than double the performance of the s p 500 over the same period. Reclently up 8 while the rest of the market is basically flat. While the outperformance of the stock speaks for itself the real genius of cody has been savvy break ups, general pivots to the lucrative end markets to keep honeywell relevant in a rapidly changing environment thats befuddled many of their historical competitors. When he took over in 2002 honeywell was in disarray after a take over bid from General Electric was blocked by regulators. The company was strong in aerospace, controlled technologies but it was unfocused thanks to mergers with businesses from auto parts, specialty chem. Calls, fiebs, advanced materials. Cody transformed the portfolio making 80 acquisitions and divesting 60 different businesses in order to rebalance the company. At the same time he refocused the company on internal development. Thats what cody calls seed planting. We have seen it when he walked the floor. Honey well can come up with innovations rather than needing to acquire them. He took a page from the soviet union talking about fiveyear plans. He blows them away. I think dave cody is what all ceos should aspire to. He honed the business, turned it into an Industrial Power house with exposure to end markets. Even though he was rebuffed when he tried to acquire United Technologies last month he isnt slowing down which is why i think hop honeywell makes a fantastic new holding. Next, Steve Easterbrook who took over as ceo of mcdonalds sliektly more than a year ago. He may be a rookie but anyone who owns shares in the golden arches knows he belongs on the. The company had stag nalted and the stock was range bound stuck between 85 and 110 for the previous four years. Yet since he came in march 1 of 2015 mcdonalds rallied 24 . Climbing to 124, crushing the s p 500 which is down 4 over the period. Thats leadership. Before taking over the business easterbrook was the head of mcdonalds in the uk and europe. Became the chief brand officer in 2013. He was a consummate turn around artist. Ever since he became ceo he pulled off