On a day like this where the dow advanced 30 points, s p dipped 0. 17 . Nasdaq declined 0. 63 . Weve entered the most intense part of Earnings Seasons and the market keeps rerendering snap judgments on the fly. Reare tasked with trying to make some sense of it if there is indeed any sense to be made. How crazy is it out there . Just look at the stock of boeing, which has been ages lost in the wilderness after a long period of outperformance. The stock rallied four points before the opening. Then management told you that pashtd of the internice had soft sales, and the stock plummeted 6 bucks from that premarket high. But then when boeing made it clear that demand for its narrow bodied plane san diego possibise charts, the stock snapped right back to where it us, closing back up 6 bucks. Look at the arc of that roller coaster ride in a single session, the Company Guides up on earnings and sales. Then its rejected, and then its accepted again all within two hours. We have to ask what really turned the tide here. What was the full crumb that all Stock Performance really stemmed from . One word demand. Demand. In the end, boeing explained that theres tremendous demand for its products overall, and that demand is longterm. The aerospace super cycle remains intact and like honeywell and United Technologies and Rockwell Collins all told us, the worlds economies are still begging for more aircraft provided that you have the right models to sate that demand. And in particular, the narrow bodies. Yes, right now demand is the secret sauce thats driving stocks higher. Is there demand for the product, and does it exceed supply . Sorting the winners from losers right now is out of class exercise in e con101. You may not know akamai, but its a content deliver system. Its a Network Delivery system. Both of them are used. Many Companies Used it to send streaming presentations over the innocent of sninternet. On the Conference Call, right off the top was the need for a Security Network to send information over. And boy does that ever resonate in a time with cyber terrorism is running rampant as i heard in my own interview last night when the whip smart u. S. Attorney for new york. Take a look. I think the government is a little bit behind on Understanding Technology and were doing the best we can to get ahead of it. And some of the hackers who are hurting all of you guys and causing a real existential threat to you guys and to the government and to our infrastructure are way ahead of the game. My takeaway. Its a heck of a lot better than relying on a secure network like akamai has got than brand x that might be more easily hacked. This stocks big move is reminiscent of the triumphant run in proof points stock last week after that Company Reported a surge in business because it keeps email security, or how about the gigantic 8. 52 move in the stock of north rrup grumman . Thats most in a years time. A knockout pair of earnings in sales that really dazzled the street. Right now the demand for defense equipment is off the charts. By the way, its not just from this country. Its from the rest of the word. Remember, were not the worlds policemen anymore. Northrup grumman is following the pattern established yesterday by lockheed martin. How about one a little harder to gauge . It looks like theres a stirring demand for money. Thats right, money, money lent by banks. We heard that yesterday from beth mooney, the ceo of keycorp. Then we heard it today from Huntington Bank shares, both big gainers. With the rate hike on the horizon, these regional banks remain a typical place to go. Dont sell them. Buy them. What about the flip side . Who doesnt have demand . Who do we need to worry about . I think theres some possible opportunities here, but lets begin with edwards life sciences, which developed a breakthrough heart valve replacement that lets doctors performance life saving surgery without breaking open your chest cavity. You know how it works if youre a close watcher of the show. We saw it with ulta salon. At a certain point the analysts figure out the game and raise their estimates where they couldnt be crushed any longer by the company. Does that mean that demand has slowed . For some aggressive money managers, the answer is absolutely yes. The combination of the 19 decline in edwards life sciences, thats a 17 hit, and the actual shortfall in the earnings from surgical spine Treatment Company knew vasive, with a stock that fell 10 , we like that, has sent investors fleeing from the whole medical device cohort, including abio med, which is a cardiovascular company which reports tomorrow, and dex com which reports next week. I believe this group has been overly punished. But until some Company Stands up and bucks the trentd, the device stocks, including zimmer biomed, striker and even the much beloved medtronics will remain in the dog house. I sense bargains coming, but you got to give these this is day one. You got to give them a couple days to settle down. The airlines, theres a tough call. The stocks have been rallying based on the belief that demand would improve next year, right up until swets gary kelly lowered the boom this morning. Holy cow. He says he sees passenger revenue miles headed down 4 mrs to 5 . I found myself thinking dont give up on the airline ship just yet, especially united 234e7 continental which is becoming a most improved airline. I think southwests issues are giving you a chance to buy United Continental on a dip. I reiterate the group should be bought. Its important to note that deltas stock didnt even go down after southwests warning. Remember, i told you these groups arent trading together like they used to. Heres another tough one. Is there enough demand for Athletic Apparel . Some of my Favorite Companies have seen their stocks get crushed during this period including both nike and under armour. The ceo of under armour came on my friend scott wapners Halftime Report today and talked about having to spend more money to keep up sales. I think the real issue is that youve got a battle for market share among three very crafty players, under armour, nike and adid adidas, and no one wins on the b Battle Ground except one kind of company, the arms dealer. My conclusion . Buy foot locker. Finally lets talk about the elephant in the room. Lets talk about apple. Now, later im going to tell you about the shoddy way i think analysts treated ceo tim cook last night, questioning apples growth strategies, actually asking it several different ways if the company even has one. I think the most important issue on the whole call, the one that seemed to elude most of these analysts is demand for the new iphone greatly exceeds supply. I take apple at face value and i think you should own it and not trade it. The antipathy ran deep, though, oddly among many analysts who were actually recommending the stock. I call them faux buys, faux. It might take another day to settle. I know if you listened to the Conference Call, the questions implied a boat load of reasons to dump the stock. Let me say for the record they have the same objections 20 points lower. What happened if you listened to them . You were on the wrong side of a fabulous investment. Tim cook came right here in low 90s and told you a pretty darn good story. He was right, and they were wrong. If you want to know what else is propelling stocks higher id be remiss not to mention the takeover talk is still a big driver. Apple talked about making a larger acquisition. When you think acquisition these days, you think about content. Then you think about at ts purchase sutd of time warner. So some people are speculating once again that netflix can be a takeover target. But i say if they were interested in netflix, why werent they interested at 25 billion or 30 billion or 45 billion . I dont think theyre going to pay 70 billion for this company. If youre buying netflix for a takeover, remember, we dont remember stocks on a takeover basis on mad money. Lets not obscure the bottom line. On a day like today, its more likely the demand for your stock is exceeding the supply of shares and thats why so many names were soaring. For many, the flip side is also true, which is why so many other companies are stuck in the shortterm the house of pain. Walt in florida, walt. Caller jim, General Motors price earnings ratio is less than four. Is it time to buy . Its a great question. I wrote a piece today for real money, which said exactly that, that i felt that at this point the cash flow is good enough. At this point the dividend at almost 5 is good enough. At this point the chinese sales are good enough. Owning g. M. At 31, i think is a correct call. Ike in new york. Ike. Caller hi, jim. Thanks for taking my call. Of course. Caller im calling about your view of petra tech. Thats the back story. Given that the election could bring heavy volatility if trump wins or hillary takes both houses of congress and with the rate increase coming in december, would it be wise to do nothing until these events transpire . I see the stock at a 52 week high. That means i have to do work. Im not able to render a judgment that i think is worth while for you. You are owed homework and thats what im going to give you. Supply and demand, its really that simple. When you find a company on the right side of the equation, i say hang on to it. On mad money tonight, Norfolk Southern reported a surprise jump in profit today. From the auto market to energy, whats the outlook for american industry . Ill tell you if its time to hitch a ride with the company or then when Aretha Franklin sang, respect, was she talking about apple based on how the analysts treated the company on last nights call. Ill explain. Plus one of the top brands in your toolbox put together a big earnings beat last week but the stock has had a tough year. Is it time to get your hands dirty with snap on . Stick with cramer. 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. These goofy glasses. Yeah. Well, we gotta hand it to fedex. Theyve helped make our ecommerce so easy, and now were getting all kinds of new customers. I know. Can you believe were getting orders from canada, ireland. This ones going to new zealand. New zealand . Psst. Ah, false alarm. Hey you guys are gonna scare away the deer idiots. Providing Global Access for small business. Fedex. What are we supposed to make of the rail rool stocks . Heres an industry thats been troubled for quite some time as coal has been stuck in secular decline. Back in january and february, the rails had gotten beaten down so hard that there was nowhere left to go but up. The whole cohort has spent the rest of the year gaining ground. The Railroad Stocks have made a big comeback. Norfolk southern reported just this morning and while the stock market wasnt too pleased with these numbers, the fact is i think this was a pretty solid quarter. Norfolk southern reported a 10 cent earnings beat of a 1. 45 basis with in line revenues. Management said that next quarter the yet it didnt seem matter. Stock sold off anyway because investors are worried about the companys revenue shrinkage. Let check in with the ceo to find out more about the quarter. Mr. Squires, welcome back to mad money. Good to see you, sir. You too. I think people have to understand that there are very few industries where you could have chemicals down 10 , ag flat, metals and construction up 2, automotive down 4, paper down 6, coal down 18, and yet still beat earnings estimates. What goes on at Norfolk Southern that you can fully top with the analysts are looking for . Weve been working very hard on our costs this year as you know, focusing on cost efficiencies and cost productivity wherever possible. Thats led to our best ever ninemonth operating ratio this year. You have taken out costs again and again. I would tend to think that there is no fat to Norfolk Southern. Theres always opportunity through business process improvements and working our assets ever harder. Were very focused on productivity. Thats been the source of a lot of our improvements this year. Pricing has held up even as these cargos have gone down. How is that possible . Weve got our service at a level that we think generates new business for us down the road. And its supportive of pricing as well. Were offering a Service Product out there that the customer we think is willing to pay for. Why is the customer more drawn to shipping by a rail than if they just say could do it by truck by itself . Rail is its own special Value Proposition in the transport arena. Its cost effective. Its environmentally friendly, and the service has just gotten to the point where were competitive in many markets with trucks. Now, coal has been the bugaboo of the nation. Weve got even though jimmy carter said were the saudi arabia of coal, we built a huge number of coal plants, theyre getting retired rather rapidly. The ones that are left, a lot of them have been refurbished. Is it possible coal can ever hit a bottom or does natural gas have to go so high that it just makes it so that natural gas is too expensive and they have to stay with coal . Certainly utility volumes are sensitive to Natural Gas Prices and weve seen that in the recent months with a modest runup in Natural Gas Prices. Weve been hauling more coal. Our coal volumes are also very sensitive to weather patterns, so the hot weather this summer really helped with our volumes. Longer term we think there is a permanent place in the energy franchise in this country for coal. Its an essential part of the energy franchise, and we think well be hauling coal at some level for years to come. Bears have been saying to me, jim, youre too bullish. Autos have peaked. Housing has peaked. Chemicals have peaked. Trucking has peaked. Now, some of those probably have peaked. In your mind, which of those cycles are not done, and which of the cycles maybe have started to roll over . The great thing about the franchise is its so diversified. So a lot of intermodel containers, theres still room to run with intermodal growth. Regardless, in other words, these are secular trends. Exactly. And in the Industrial Products arena as well, we think there are opportunities out there. Not a lot of vitality on the industrial side of the economy, but there are pockets of growth there as well. Why do you think . Were all kind of in a bit of a funk. A railroad guy knows more about commerce than pretty much anybody i talk to. What do you think is going on . We have low rates. We have a different political environment. Why are people not more confident . Its tough to say. You know, things have just been pretty stable, i would say, not exactly falling off nor much sign of an upturn, but fairly stable for now. I think, you know, thats a good thing. It doesnt seem to be getting worse. We have to work a little bit harder with volumes where they are. And in terms of excess cash, wheres the best place to put it now . Certainly into the dividend. We pay a solid dwenividend. For a long time. And were using excess cash flow to buy back our own shares as well. Talk to our people about the way your fuel works. We have been taking some timeout with all guests to talk about sustainability. Why are the rails something that if you do care about the environment, you should be rooting for . Well, the great thing about our sustainability story is its integral to the way we do business. We are a more fuelefficient mode of transportation. So every ton of cargo that moves by rail moves in the most environmentally responsible fashion possible. We burn less fuel. We have a relatively modest carbon foot print by virtue of the nature of our operations. I dont know how many cars you can have these days, but your engines are so efficient. How long would it take from the longest train to go from one of your areas in the south to another versus what energy would be used if it was trucked . Well, the Energy Expenditure overall per ton mile of freight that we move is far lower for freight rail because its such an officiefficient form of transportation. Thats one of the pledges weve made for this year is to ask guests whos got a bigger and smaller environmental footprint. Thats james squires. If the numbers are this good when things are just okay, imagine what theyd be when things get better. Mad money is back after the break. Announcer coming buck, al kerr miz has hit a biotech come back. But is it the sign of a long term trend . How do you get the message across that not all Drug Companies are doing the same thing. Announcer cramer gets the answers from the ceo next. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley lets get one thing straight. Last night apple reported an unimaginably good quarter, but out of sheer hostility, the analysts in the Conference Call painted it as just another hoe hum, lackadaisical set of numbers. This was one of the more kafkaesque Conference Calls i can recall. The totality of the questions from these experts left you feeling like apples in real trouble. Yet just three months ago, almost none of these analysts would have believed that the company could possibly be doing this well this quarter. I was stunned by the analysts community hubris with the respect for management when i listened to the call. Asked