We are bomb line number, even if the Sales Numbers disappoint. It doesnt seem to matter though. As the stocks with strong earnings are indeed winning. Even if the the revenues were not extraordinary at all. In that sense i think worst putting out they are winning in a pretty heartless way. Through massive layoffs. In fact, i think this Earnings Seasons theme song should be hit me with your best shot. By pat bneitar. Hit me with your best shot. Hit me with your best shot fire away thats karaoke mad money style. Sadly the companies firing workers, the most aggressively have some of the strongest performing stocks. These stocks do much better than you might expect. What has been the best since earnings season began . All aboard. Revenues were down 6 led by coal which keeps getting hammered. However, it translated into a huge upside surprise. As Norfolk Southern earned 129 per share. The street was looking for 97 cents. The number of people laid off, the average head count declined by about 1099 positions. This is not, this is a sad story that im telling. Im not trying to just saying this is the correlation i came up. With Union Pacific was not much different. They will us that the total training was down 22 year over year. 22 . So despite almost every single cargo line being down, over the next two days the stock rallied through 83 to 89. On that best shot. Not to be outdone. Csx goes from 24 to 27 in large part because it is taking a tremendous. A cost. 13 head cap reduction there. Fewer employees than last year. It has a terrific rally. Second best performing group this Earnings Seasons, it is the banks. Yeah. The banks. Theyve gone from 13 and change to 15. No coincidence theyve cut that costs. Bank of americas head count is down 7,000 year over year. Morgan stanley took out a 27 head cut reduction in fixed income. Awfully hard to make money there. Goldman cut its force by 10 . Jpmorgan added employees but the head count is still down 4,000 from the year before. They keep getting leaner and leaner. Thats why the stocks are going hard. Before leveling off a few points the last couple days. This company has fired an stounling 42,000 people since the peak in 2014. 42,000. I double checked and it then i triple checked it. Including 8,000 this quarter alone. It took tough actions which is how it was able to buy back 7. 1 million shares. It is at nearly 79 now. A 475 million cash outlay that was very well spent. Even though competitor halliburton has been encumbered by the takeover, stocks still are 2840. Theyve cut their head count by roughly 33 since the top of 2014. Can you imagine . Caterpillar is up year to date and i think thats because of the early retirement of employees and the closing of plants. 670 jobs since the january north america. It was a very disappointing guess. I think management is taking extraordinary action for a growth company. Theyre laying off 12,000 people. The to know is up 24 . If you license to the conference call, one of the highlights it was 42 . Yet the ceo got the head count down to 9,200 with 1,200 fewer employees. Thats horrendous in terms of the costs but undeniably good for stock. Companies are making a fortune by firing people. How about the flip side . What tech stocks have been the most beaten down . I would say the, the revenues werent that great. But also because spenlss controls seem out of whack. How telling is that it the head count was 64,115. Thats up approximately 2,300 versus last quarter. The majority were high priced engineers. Didnt alphabet get the memo about shrinking the grow . Despite all the layoffs, last weeks jobless the numbers were at a four decade low. 247,000 jobless last thursday. Given faye collection the Small Business processor has said there is barely enough, we have to ask ourselves, when where are these people getting hired . What are they doing . We know unless they have a Computer Science degree, slim pickings out. There how can you fire away and get higher stock prices . When investors want to see, they want to see expense reduction that leads to cash flow. Do you really think theres any wonder about the poor performance of the Airline Stocks . I think it is the inability of a couple of airlines with the work reductions. It leads to stock declines. Not advances. The money is not flowing to the bottom line and too much is being wasted. For this day and age youre paying people too much to do jobs that others will do for less. We dont necessarily want to break little hearts. But unless they fire away their stocks are not going anywhere. And heaven for bid any ceo who goes on a hiring spree. Then you get the worst of all possible worlds. You get the plunging stock. I suspect well hear from more company. Lets to go jake in illinois. Jake . Aid quick question about dunkin donuts. When i bought the stock it had a preece tag of 47. Do you think it will go any higher . I saw a nice support on it. And i think that the stock has been stalled. Starbucks has fallen out of favor and i think thats ridiculous. Starbucks is best of breed and thats what we recommend on mad money. Phil . A big booya to you, jim . How are you . I dont know. They pay me 64 million but i dont feel like playing. Im calling on my apple watchful i dont know if you can hear me. Hopefully ill give tim cook some luck when they have earnings coming up. It isnt about luck. It is about performance. I hear you. I purchased it when it was down 10 from the high. Around 84 or so. Since then stock has declined like 9 . I know they have an upgreat. Im curious if should i sell off. Obviously theres the death of the mall story floating around at all time and some curious things. I think it is a good retailer. Eas i dont care for mall retailers, to be honest. It is the companies firing away that are also seeing the stocks take off. How about higher Gross Margins . Wall street has no heart. I dont know. Otherwise, well, you know what we get. Coming up on mad money, more flicks are moving to the bigger screen. Should you be buying a ticket . Dont miss my exclusive with the ceo of imax. Then the airlines, is it time for to you book a different position . Plus, up over 60 year to date. Ill tell you if the company is become a comeback. Dont miss a second of mad money. Have a question . Tweet cramer. Send jim an email at cnbc. Com or give us a call at 18743 cnbc. Miss something . I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Summers blockbuster season, hollywood released a new franchise. This year we have a new independence day. The people are packing into the theaters. Is it time to circle back to imax . People love to watch the most explosive action movies. With more than 1,000 screens across 69 countries, imax has a very strong First Quarter last thursday. Higher than expected revenues at 48 clip year over year and coming off two very strong weekends with the new iteration of the jungle book. They still own 70 of imax china. A good thing because movies are booming in the china republic. Can imax get it going again . Lets take a closer look. Welcome back to mad money. Thank you. Ive always loved imax the product and the stock is great. When you came on last, we said it was too correlated with china. And we were movie about the movie schedule. Five years have movies coming out just ripe for imax. You put this chart on that showed how closely it was. You were right. Conservative old hong kong. Right. Very important. U. S. Listing style. The stock is up over 40 from the ipo. Guess what. The chinese love it. The u. S. Investors say, i know china better than the chinese do and i know china better than the imax Financial Result and theyve been wrong. It seem interesting that japan and europe have come on strong. Even china has come on really strong. We just reported last week and our china results were up around 40 . Our box Office Versus the year before. Europe were going crazy. Scandinavia, we had no theaters there. We just opened huge theaters there in stock home. When you have china in your name, thats all peel want to hear. This isnt hike youre not taking advantage of an artificial decline. A lot of people who work at imax are bummed out. I say you should be happy when youre buying in your stock and you think the price is well worth buying, buy and it stick around and this time the market will catch up to reality. Youre doing it at the right price. Sometime stocks get hit and company cant be there when that happens. I think you cant just time it all the time. If write that smart i wouldnt be doing my day job. If youre patient and you know your Company Better than anyone else, it will pay off for you. Lets talk about timing. It seems like it has become, the schedules are very in sync with imax. Thats not a complete coincidence. The studios and the big name filmmakers really want an imax release. Thats how they attract fan boys. Marketing and punt. So frequently theyll move movies by a couple weeks, it used to be two block busters were on the same day and now if i warkts i can get imax release. You have jungle books, captain america, jungle book, then right into alice in wonderland and independence day. Not just the kinds of of movies but the way they sequence. Tell people what it used to be like. We were used to fretting that there wouldnt be any big in general the blockbusterization of hollywood. I want to steal that. As long as you give me some credit. I like that. What theyve discovered is with all the new distribution platforms, video on demand and cable and alls kinds of release windows, they need to be big budget movies. The studies are making less movies and bigger budget movies and that plays right into the sweet spot. Tins has movies every quarter. People dont understand. Some other Company Might have been imax competitor. But you have a real ecosystem going. It would be hard to crack into what you do anymore. The key to it is the brand. We went to box office. It is a hard thing to climb over. You cant start a network and say ill go compete with them. I find there are a lot of had movie experience thats are not imax. If you want to have movie seats and theyre 60 years old, thats fine. If you want at this time way the director wants it to be seen. Part of what is motivating this are the big name directors. When Clint Eastwood is making his next movie, it will be like when it lands in the water. Unbelievable. Did you see it . I havent seen it. I talk to him and he said it is crazy. Thats the ceo of imax. Tons of information. Coming up, the signals are piling up from across the economy. Numbers hidden inside caterpillars quarterly report. Car sales and statistics in china. It could be pointing toward one key takeaway. Cramer reveals the impact to your portfolio. Just ahead. Nothing unleashes power. Quite like the human foot. Introducing the 241 horsepower lexus is 200 turbo. With almost twenty percent more base horsepower. Once driven, theres no going back. Weve now heard from all the Major Airlines and after seeing each of these quarters, i have one question. How is that it southwest air, simple, is doing so well when united and continental are doing so poorly . We tend to think of the airlines as a group that trades together in lock step. Either theyre all thriving or theyre own struggling. And we see real differentiation where southwest is crushing it. Theyre doing okay and American Airlines and United Continental are having real, real problems. So tonight i want to explain how there can be such a remarkable diverge enls. Especially in wake of what i thought, candidly, really kind of stunning interview with southwest ceo dwar keller on friday. The really curious thing is that you cant guess the quarters by the headline numbers. In terms of sales or earnings, they give you the bottom line beat. Not that much stronger and weaker looking. Weaker looking. Weve approached the gigantic beat. Wow when you look at the stock, they tell a very different story. Americans saying 4. 5 . United continental. Southwest gained 1. 5 . Thats because the key metric thats matter most are not the revenues or earnings. Stop trading on those revenues and earnings. What they really follow these stocks care about, above all else is something called prasm. Passenger revenue per available seat model. Prasm it how much each one is making. When you look at the passive revenue, it is clear the wholesale was not so hot for some. United earl. But they did the best. Not great. But superior to all the other majors. Thats why it went up and the others went down or treaded water. So the southwest, the others have significant and national exposure. Its been the strong dollar. That could be Getting Better. Thats just one piece of the puzzle. Another major reason for performance. And thats the companys superior cost. It is another key measure. This is catch. Casm. Take a look at this chart. You can see how Southwest Airlines has been outperforming the rest of the industry. Over the last two years the stock has doubled. American air has vand. Advanced. How about the specifics what sets these apart . Remember how American Airlines, it was reported, most was thank to a 34 cut. I still believe in the hair i am on service. I wouldnt surprised if it could box. It a good thing southwest has an active hedging. So while southwest didnt benefit as much as some of the others, they wont be hurt as. Now that it is in the low 40s. Southwest understands the cheap oil. Not all the airlines agree. I read through these calls. Theyre like for instance on the conference call, there was an extended rim about how loyal prices are bad complicated. You know companies are having trouble when they try to argue that one of the dloinls, what else . Labor issues. The company has managed to while those two are still trying to southwest has a generous pocket sharing you may not str off with that strength. I give all the credit to our people. We have great cost and great service. As he put it in the conference call, i love this line. Were not at war with our people. We are at war with our competitors. Theyre all trying to be friendly with unions. We have guys who make friends at southwest with their labor force. To understand it, heres suffering dramatically from the prolonged weakness. You would think the airlines would experience a downturn in the tech business. Right . Wrong. In response to a question, bob jordan, the chief commercial said houston and midland both look fantastic. Throws the two most oil dependen cities in texas. And jordan had to reiterate that houston is doing very well. A company like continental which makes it five times as a major source of weakness in our quarter. Hard to believe they are talking about the same city. Thats how much stronger southwest. One last thing. The fact is the company have made these acquisitions and have struggled to make them work. Thats especially true with the United Continental. They get the free ride on everybody elses consolidation. Love the stock. Incredible value versus the stock market. The airline are cheap because the earnings estimates will need to be slashed going forward. I dont think thats the case with southwest. I would be a buyer. Let me give you the bottom hine here. A rising tide lifts all ships. But once the tide goes out, thats when you find out who the real winners are. And southwest is the undisputed champion. I think the other airlines will have to know that. Second, american, couldnt in any eventual. Good guys, you want best of breed. Which is why you want to own southwest. Brian in ohio . Im looking at u. S. Fuel. They got hit big down today. I need to know if it is down 27 or 7. This is one of those where you have to say, all right. I missed the move. Lets go elsewhere. That move came because of some tariff thats obama put in that kind of shocked peel. People thought that obama is such a free trader that he would never do that. The move has been had. I hike it is a long term play. Marty . I would like to know the outlook for oil in particular, murphy oil. Is it a dog or a cadillac . Its okay. Look, we own occidental. Why oxy . 4 yield and a really great balance sheet. Thats the one we prefer. Southwest air has the right Labor Relations with management. And thats one of the reasons it was good. So all need is love. Couldnt resist. Southwest airlines is the undisputed champion in the airlines. I say stick with the best sgreed do not put luv for sale. Much more mad money for sale. Could the Companies Reach the opening . And the two things about this earnings season that are impacting caterpillar and gm. And rapid fire. The lightning round you shouldnt have to go far to get the help youre looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. What the heck is happening . 65 gain just since the beginning of the year. Here is a company that lagged the market pretty badly for the last couple years. It was down 2014 and lost 30 of the value in 2015. Want to know the darn thing . It is simply another cyclical machine that has been roaring. That has been a powerful prop to this market ever stinls down trodden industrials bought them in early february. And it is about as cyclical as it gets. So you would expect the stock to rally i know what the other back in style cyclicals but heres the thing. They have managed to leave all the other companies in the dust. Pretty darn good. You can rent well. That move, that means this move isnt just about the prospect of a better Global Economy. It is about a specific turnaround in the early ins. This company is going through a transformational breakup. One that ive been add indicating for years. It was a bizarre mismatch. They made all sorts of cranes to tower cranes to mobile cranes for construction. About they homeless a Food