later in the show, for the real estate investment trusts, for the telephone companies and many of the retailers. when the market opened drenched in red today, as it seems to every day, who stood out as stalwarts? at&tverizon, walmart. are they that hard to find? in other words, the usual bullish suspects! the companies that are defended by our nation's borders. i'm talking about the america fisters. they're up 20% on the year. not from gigantic corporations. who else do we believe in during this age of slowdown? who else is giving you a season of light? how about the food and drug companies, the soda companies, the invested coffee shops. yes, that most american of industries, big tobacco. >> boo! >> yep, if you can smoke it, you can drink it, you can wash yourself with it or take it once each morning, then it's not just the spring but it's the summer of hope. that's how johnson & johnson turning itself into a recall foundry. it's why merck a company with the hope of new yost yo osteoporosis drug can jump 170 on good news. sap a german consulting and software company, 168 on fabulous growth on information technology spending while a similar company based in india can crater $4.87 or 1% citing information technology weakness. dunkin' donutss has been a rock star while starbucks wallows as growth gets crimped by a european slow down. but still like them both. the worst of times. whole areas, wastelands, the industrials. sure, we can say the problem is geographic. that's too clip. the issue in the dark geographies is a lack of demand for the products offered. it's demand. it's despair about demand. all the customers and potential customers aren't buying. awareness that many cases didn't even exist say as recently as two months ago. where is it most pronounced? let's take them down. we see the slowdown this demand for oil. something once considered a staple. so the oils and all their acute treements face what seem to be an endless drain. notebooks and desktops sales have been crushed, only some of which can be blamed on apple. the luxury shopper seems to be balky. even the buyers of blue jeans aren't buying as levi's said. how about companies that sell into the enterprise? huge corporation that is have voracious consumers? flagging demand for companies that make tellico equipment, dell, hewlett-packard. dow chemical, caterpillar, alcoa, ford, general motors, they can bounce, some did today, but others like marriott, terrific hotel chain, dropped $2.45. as international hotel room profits fell more than expected. all those companies have had the foresight to expand beyond our borders because of our own economic maturation and stagnation -- >> house of pleasure. >> they're now being punished for that international emphasis. >> the house of pain. >> tomorrow we'll begin to found out whether that's demand for money. yeah. will there be pin action all over the place? we're going to be hearing from a couple large banks, going to spread the news to the rest. part of the largest sector out there. if they tell us there's flagging demand for money, whether it be from potential buyers of new homes or cars or for corporations that want to expand, particularly domestically, then we're going to get hit again. it will be seven straight days down. we have to see some demand for credit because without it, we weren't going to get the much-needed growth in employment that can turn the worst of times into better once. why this exploitation of some old hack british journalists turn book writer, someone who will ultimately go down as a second rate author expired to, say, stephen king? why the fixation on this tale of two cities? shaw shank redemption? >> simple because too many commentators think that it's only the worst of times. and that's not wisdom. it's rank foolishness. the endless despair simply doesn't jive with what i see out there. just because there's some despair every day that doesn't mean you can't snare tom at&t or walmart, particularly on weakness. i am not asking you suspend judgment. i'm saying it's not a tale of one dark city you have to avoid like the plague. you have to learn to discern. learn to discern. you can trade the industrials for a bounce, gain the financials. you can rent google or oracle but invest in a general mills or hershey. it is a keynesian market. there's positives and meg tiffs. that's why the whole market doesn't gel pulverized every day because that's what so many people expect. we don't have everything before us and we don't have nothing before us. we have a little bit of both. as long as you understand this dynamic you can triumph even if the hope of spring morphs into a winter of despair. becky. >> a major boo-yah from doylestown pa. >> what's up with chevron? will it rebound in the short term, cbx. >> i think chevron is terrific. thaet they had a great report last night. i think chevron is the best major oil company in the company right now. let's go to charlie in texas. charlie! >> caller: hello, mr. cramer. a big texas boo-yah to you. >> i'm going to send that right back to you. >> caller: i am employee of tyson foods. i put 10% of my income in their stock purchase then. they contribute another 25%. i can put it into something else, like cell gene or harley-davidson, but i'm wonder if i should after that downgrade. i'd like to know what would you do if you were the ceo of tyson foods. >> first of all, you're kind of doubling down. you already work there, you get a paycheck, i don't want you to put more money in that. i respect the fact you have 10%, that's not bad. but tyson is a company that's a commodity company and they are going to have to reline on the high price of corn, of the different crops, and i got to tell you, i think corn is not done going up. i think it goes higher. i got separate reports on my own. i say be careful. if i was tyson, it's the business you've chosen. there's not much you can do other than ride the wave. josh in new jersey. josh? >> caller: jimbo, boo-yah from new jersey. >> what's shaking there, partner? >> caller: well, i just got a question about johnson & johnson. there was some kind of recall. i'm very long on it and i was just wondering what your thoughts were, whether or not i should buy some more? >> yes. the answer is definitively yes. a stock that does not go down and at one point was up after reuters story saying there's going to be billions and billions of dollars lost because of another recall, that's a stock i would own. it is imnie immunized. let's go to ryan in new york. >> caller: big boo-yah here. wanted to know your thoughts on genworth financial. >> they do have my life insurance policy. second, they'll pay, i believe. i don't want them paying. kind of the -- tind of a terminus point for the show. i believe that they are just okay. if you want insurance, you got to go aig. remember, he stood here and sat here and said a lot of good stuff. that's the way you go a aig. look, it may be the worst of times, but here is the thing, it's also the best of times. contrary to popular belief. i'm here to help you understand this dynamic and be able to help you tell the difference between the winners and losers. do you know what i say? i say stick with cramer. "mad money" will be right back. coming up, flip the switch. this mega utility is creating intriguing headlines after a shocking change at the top. but could this debacle be your opportunity to juice up your portfolio? cramer is seeing if it's time to cash in on the controversy. and later shark bait. the street thought this health care predator was priped to sink its teeth into a hot growth trend, but it took a dive after horrific earnings miss. cramer is inspecting the waters to find out how this got this one so wrong. plus, domestic partner? a slowdown in china, fears in europe still top of mind. need a place to take cover? tonight cramer is on the hunt for homegrown profit potential, and he's found a candidate in commercial real estate. stick around for his exclusive with the chairman of american realty capital trust. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. send jim an e-mail to [email protected]. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ i dare you to dare me what's today's dare? erase the damage of 100 blow-drys [ female announcer ] with daily moisture renewal from pantene. the pro-v system nourishes to lock in moisture erasing the damage of 100 blow drys for a silky, soft touch. think only salon brands can do that? i took the dare. will you? 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[dumbfounded] well, we... doesn't last long does it? listen. 5-hour energy lasts a whole lot of hours. so you can get a lot done without refills. it's packed with b-vitamins and nutrients to make it last. so don't just stand there holding your lattes, boys. make your move. we'll take the 5-hour energy. smart move. 5-hour energy. hours and hours of energy. you can have up to 28 days of beautiful, smooth skin, with veet wax strips. veet hair coating technology removes hair as short as 1.5 millimeters... ... and leaves your skin smooth for up to 4 weeks. try getting that with a razor. with veet you'll always be putting your best skin forward. veet. what beauty feels like. also try new veet high precision facial wax for salon-quality smoothness that lasts. what the heck are you supposed to do with a stock when it's embroiled in some sort of bizarre scandal, like duke energy? a gigantic utility that experienced a corporate coup just last week. if you haven't been paying attention, last tuesday duke announced the completion of its $32 billion merger. in a deal that creates the largest electric utility in the country. but there was some incredible machiavellian maneuvering at the last minute. william johnson, the chairman and ceo of prove gres, the guy everybody had been told would take over as ceo of the combined entity was knifed in the back! metaphorically speaking. and given the boot. instead jim rogers, the chairman and ceo of the old duke energy who was supposed to be chairman of the new duke will now be both the chairman and ceo. it's not the munich beer hall push of '23, unlike the leaders, rogers was successful and doesn't share the genocidal tendencies. it's not some piddly human resource issue. a former member of progress energy's board of directors called the move, quote, the most blatant example of corporate deceit i have witnessed during a long career on wall street. and added one of the greatest corporate hijackings in u.s. business history. this is lousy corporate governance. it has real consequences. standard & poors has said it might cut duke's credit rating. the north carolina utilities commission has started an investigation into the move, and north carolina's attorney general is looking into whether consumers were misled about the merger. so what does this sordid tale mean for the stock? i am outraged by what happened here. it's horrendous, a total tragedy. an example of the worst governance i have seen. we want the bad guys punished, but, and this is a very big but, i still like the stock, and i think duke energy is worth owning right now despite all the scandal because in this market domestic security of the weakest kind is better than the strongest international foray. that's the most important theme in the market right now. we see with retail, target, walmart, all incredible domestic stocks. we see the real estate investment trust, the housing companies. verizon and at&t, they're all american. we love the stocks in these companies because we don't have to worry about the break up of the eurozone or the slow down in china or the anger of the coal miners in spain. i had to be careful when i reach for the -- put that in the sheath. when it comes to businesses that are all domestic, it doesn't get any better than utilities. duke energy is really an issue of a not so hot house in a fantastic neighborhood. the fact is a miserable house or even a fixer upper or even one where the general contractor might be unsteady in a good neighborhood is better than the best house in a bad neighborhood like tech or industrials that work so hard to go international. when you have a worldwide economic slowdown, utilities will outperform and duke is the biggest utility in the united states. there's more to this than the macro. the way i see it while the corporate governance issue that is cropped up last week don't exactly inspire confidence, the fact is utilities pretty much run themselves. the utility business, this isn't like a retailer where the guy at the top can have an enormous impact on how the company does? do i care if mr. rogers has an eye for lek tris i had the way mickey drexler has an eye for clothing? of course not. there's no intellectual fire power involved in running a utility. i don't even know if mr. rogers has a facebook page, no the that i want to go on it. or if he has a smartphone or a dumb one. i don't care. doesn't matter. and while i don't like skulduggery, i'm perfectly happy with rogers as ceo because he's shown himself to be an excellent manager. ever since he took the helm in 2006, duke energy has given you an 88% return. let's get this straight, i don't want to be in the board room with him. it's tougher than being with doald tromp. i don't want to be his partner but i don't mind him running monopoly that i can own shares in. this is a nice consistent business that gives you a glorious 4.6% dividend yield. much better than treasury bonds even without accounting for the favorable tax treatment dividends. duke can raise its payout and they have done that every year since 2007. everybody seems to be missing the forest for the trees when it comes to the company's game-changing merger with progress. duke's down over three points or 4.6%. that's a huge decline for a steady utility like this one. but the real story here isn't about jim roge irs stealing william johnson's job. it's about a massive merger that can generate enormous cost savings. it's a move designed to save the company between 5% to 7% of its nonfuel operating expenses. the new duke will be able to reduce its head count via voluntary severance plans and, of course, the company can eliminate du plik ka tiff corporate functions. i also have to believe that the combined company will have an easier time dealing with epa regulation. we know mergers like this one have been a good way to make money because we've seen it play out before. back on october 10th of -- october of 2010, northeast utility announced it was buying n star and the stock has given you a 34% dividends. how about first energy when they were buying allegheny np since then the stock has given you 39% difficult pends. i bet duke will give you the same kind of outperformance. that's not just moral indignation. that's right, profits are the real take away. here is the bottom line, yes, we're outraged by the long knives at duke energy, including the massive $44 million payout to johnson for his 15 minutes of ceo-ness, but, no, that's not a reason to sell the stock. don't let the scandal turn you off to a utility with a terrific yield and domestic security that should outperform. in this environment a utility like duke is still better than the vast majority of nondomestic stocks out there. the house, eh. the neighborhood? killer! stay with cramer. coming up, shark bait. the street thought this health care predator was primed to sink its teeth into a hot growth trend, but it took a dive after a horrific earnings miss. kram serer is inspecting the waters to find out how they got this one so wrong and protecting from you what else could be [ male announcer ] this is anna, her long day teaching the perfect swing begins with back pain and a choice. take advil, and maybe have to take up to four in a day. or take aleve, which can relieve pain all day with just two pills. good eye. dove knows women want to feel beautiful but need strength too. dove clinical protection is prescription strength wetness protection with 3x the care for skin. dove clinical protection. where beautiful women find strength. yes, you do! don't! do! whoa, kitchen counselor here. see cascade complete pacs work like micro-scrubbing brushes to help power away tough foods even in corners and edges. hmm! cascade. love it or your money back. lately, scary shark stories have been dominating the headlines. everything from a great white chasing a kayak off cape cod to a woman in south carolina who got her catch stolen by a bigger monster, but tonight i have one much scarier. there's blood in the water. listen up! you should never take your cue from the weakest player in an industry. that's true whether you're talking about food or retail or machinery or even robots. yes! robots! and, no, i'm not warning you to avoid investing in cyber dine, the fictional company in the terminator movies. i'm talking about maco surgical versus intuitive surgical. two very different high-tech medical equipment companies. best of breed player in this business. but lately it's stock has been slammed by troubles at mako. i'm here to tell you that this doesn't make any sense. bad news for mako is not necessarily bad news for intuitive surgical. on monday night mako came out and cut its four-year guidance. they expect to sell fewer surgical machines than previously projected. the result, the next day moko's stock fell more than 10 points, 45% of its value. it shaved 20 points off intuitive surgical's price, although from a much higher $551 basis. here is the thing though. mako's problems do not have anything to do with intuitive surgical. they were easy to see coming. we saw them coming on requesting mad money" a month and a half ago. the issue here is mako has become a turbo charged growth stock, but its growth seems to be slowing. and to make matters worse, the people running things, they've done a terrible job of managing expectations. that's what tuesday's shellacking is all about. it's why i've been telling you to stay the heck away from this stock. on may 7th mako reported a hideous quarter, a stunningly horrible quarter. >> house of pain. and they lost value. >> revenues came in later than expected and it sold just six of its real surgical systems when the street was looking for them to sell nine. the number of procedures performed was up only slightly versus the previous quarter. that's a nasty surprise. given that these companies operate with what's known as a razor razor blade business model, first they make money selling hospitals the machines and then they make real money selling dispoable parts. you can't afford to miss numbers like that and i can't afford to slow down. these stocks are like sharks, if they stop moving, they die. so it's no wonder that the aptly named mako got slaughtered in may. and when a company screws up this badly, there's every chance they will stumble again. on may 24th i told you to avoid mako surgical for at least a quarter. i put it in the penalty box because i was worried we hadn't seen the full extent of the damage. at the same time though the analysts who cover mako were jumping all over themselves to recommend it. >> buy, buy, buy. >> piper jaffray told you it was a buy. william blair upgraded it to a buy saying the company was doing better. these analysts stuck their necks out on mako and sure enough they got beheaded this monday when the company dramatically slashed its full-year guidance and sent the stock dow