And out industrials, which youll be getting more for months. Since then, weve seen honey well, United Technologies reports, along with a usually disappointing preannouncement. Yet after an initial dip, they all went higher. Only ppg proved to be better than expected and that just kept them from flying. Today, though, we got excellent numbers from boeing and General Motors and that reinforced the group that this group is too important to ignore. My job is to explain whats happening in the stock market. Because of worries about World Economic weakness, worries to keep Interest Rates lows, Portfolio Managers underweighted this group dramatically or sold far more than what they should have against what had been the benchmark in the s p. They owned 8 . This underweight situation coupled with the fact that many Money Managers are just now warm ug up to the notion that theyre improving, the Chinese Consumer is start to go buy goods again. All these sign ves made the Portfolio Managers frantic, frantic in their efforts not to miss this bullish reranking to use their term of the industrials. They want in and they now use any weakness not to sell, but to buy these kinds of stocks. At the same time, there is now a palpable sense of hatred surrounding the once beloved drugs and Health Care Stocks. This companies that were always so consistent. I think the money that is coming into the industrials is out of health care. Ever since that tone Deaf Health Care manager came on tv and bragged about jacking up prices for some old drugs, this cohort has become too dangerous to own. Were going into an Election Year for heavens sake and in an Election Year, nobody wants to champion pharmaceuticals. So the Companies People identify with dramatic increases in drug prices want you to think valiant and verizon pharma are being trashed almost daily. Same goes for big pharma and hospital chains and terrible performance right into tonight. The valiant selloff today, it took my breath away. Compared it to enron and the stock at one point shed about 60 from its 150 opening price before rebound to go close still down an astounding 28 bucks. It was one of the scariest declines ive seen in 35 years of invest inging. As long as the republicans seem to be in disarray, these stocks will become disarray. Hillary clinton has become a vocal opponent of higher drug prices. Without price increases, this group is done, finished, left for dead. So its going to be difficult to get any sustained upside here even in the biotechs. Until valiant bottoms and bottoms for good and we get a big acquisition in the sector, both have to happen, this group may not be able to stabilize. Meanwhile, money is flooding out i mentioned them in the same breath. It sure doesnt seem is to be playing out that way at the moment. Right now, the oil glock continues, bigger inventory build up today is barely being dented the. At the same time, the newly elected Prime Minister of canada has pretty much killed the Keystone Pipeline on his end. And as chip johnson told us last night on mad money, many of the oil companys big and small are running out of money and unlikely to get a lot of new money to drill. The saving grace here is m a, like halliburtons takeover of baker hughes. This has made schlumberger the stock to own. There can be a lid on the group unless crude goes over 50 from its current level, i expect all the mlps to trade down tomorrow even though kmi is whats known as a c corp. Disaster because of one Conference Call from chipotle, which said the costs were going higher, especially labor and real estate and food costs and theyre cutting right into the bottom line. The whole group got crushed. The only one that has any momentum is mcdonalds and thats because its lagged so badly. The problems in chipotle will be fleeting, but you wont get a bottom overnight. It didnt help that only a week ago walmart slashed its earnings estimate in part. Its not spilling over into the rest of retail. Believe me, if walmart were planning to give away power and hard goods and foods, theres no way it will be up that much. The tech stocks have been rallied by the bear market. Something shareholders have serviced now well discover and shareholders discover of twitter discovered when Morgan Stanley took twitter to an outright sale this morning. This is a rolling bear market and it strikes with the drop of a hat. High growth naems like tesla have run into a wall and netflix has been dropping. That was a leader. But theres some joy in tech, thanks to recent takeovers that will take over capacity. Today is no different. Greatly consolidating the Semi Conductor equipment business. Theres an amalgamation going on in disk drives and sflash. A struggling hard drivemaker is combining with a struggling flashmaker and not a moment too soon given that intel is going to be aggressive in the flash. Not all of these merchants are working in tech. Dells pure of emc looks stunning because emcs business only 150e78d to have hit a wall. Theres trepidation, the abagos, the exp semis. However, after the close, Old Fashioned semi closed expectations were blown away, so who knows. We know the market likes uncontroversial growth. Theres traditional growth, think about starbucks and, yes, facebook, they continue to be lobbed. Then theres slow growth, think clorox, kellogg, worehormel, not to mention kimberly clark. Finally, theres the financials. People want to own the insurance companies, they think traverls is gorgeous. Boutique insurance is great, too. What about the big banks . Simple, without a rate hike, theres no traction. American express, axp, after one more hideous quarter, many of these moves are breath taking. The sleep at night Health Care Stocks are giving you a sleepless night and everybody else, its just a rolling bear where you might get mauled and terry in washington, terry. Is. Caller hi, buck kie bu ya to you, jim. Got a couple of questions about white wave versus hanes. White wave just got downgraded from goldman sachs. What is your favorite . I like them both. White wave is owned by my Charitable Trust. White wave got downgraded yesterday. My thesis on white wave is twofold. It could be acquired or its growing very well. Hane is also down. Both of them are buys. I do not think the Natural Organic industry is a craze. I think its here for a long time, but i respect the fact that jeweldy hon said it should be sold. Steve in maryland. Caller how are you . Im great, steve. Caller thanks for taking my call and thanks for the advise you provide. I try. Caller i. A. Smith, water heater manufacturer, seem to be doing good work all the time. Had a good report today. A wild ride today, but longer term, its kind of like to get your opinion, exposure to china and things like that. Ive not done enough work on it. This is one, as you said, e. L. Smith, havent looked at it lately. Dont even know the breakdown of where they sell. I know they make the kind of stuff ta goes in homes that i like b b they also a commercial water heating business. Lately thats been slowing down so let me do some more work and ill have to come back to you. Some of these moves are just astonishing. For however long they last before the market moves on to the next mauling. On mad money tonight, turning classic into cash, can they continue to keep your profits fresh . I have the exclusive. Then, is your your chance to buy a ferrari . No, not the car, the stock. Im taking the company for a test drive after a full day of trading. Spice, but is it temporary rare . Dont miss my take, believe me. Stick with cramer. Dont miss a second of mad money. Follow jimcramer on twitter. Send jim an email to madmoney call at 181800743cnbc. Tupperware roared today after spending the last couple of years in the dog house. I think this company may have gotten its groove back. How did they lose their mojo in the first place . They have tons of emerging market exposure which means its gotten taken to the cleaners by, yes, the super freaky strong dollar. But it seems the company in the analysts finally adjusted to the Foreign Exchange issue. How do i know that . Because when tupperware delivered this morning within it delivered an 8 cent earnings beat with higher than expected revenues that increase by 7 on a local currency basis. Even as they were down 11 in dollars. The companys European Business is coming back. Their Asian Pacific business is doing terrifically, including china. Up 18 . Overall, tupperwares emerging business increased by 20 and on fire. Its incredibly shareholder friendly and a juicy dividend. Dont take it from me, though. Earlier, i got to check in with can chairman ceo of tupperware to hear more about the quarter and its companys prospects. Take a look. Give us the anatomy of a blowout. This really was new product, china, just kind of the moment in time. How did it happen . Well, ive got to say first, we have an attitude, every business works until it doesnt. Our guys just keep leaning into it and things came together this quarter. It was nice to see. This china order, if i listen to tupperware, what im saying is maybe theyre not selling the right stuff. Well, that has part of it to do. If youre selling high priced if youre selling cars in china, might be some pressure. But lower net know, and you know what a lot of people dont get . Ten years ago, china was a 2 trillion market. Its a 10 trillion market. Its five times the stiez. One of the things weve learned is people like flexible hours. Judging by the number youre signing up in north america, thats more true than ever. Absolutely. Interesting, we have this phenomenon happening with millennials. They are going to be 50 of the workforce by 2020, 75 by 2025, 58 of them want to be entrepreneurs and the bulk of them dont want to work 9 00 to 5 00. Theyll bust their butt at 3 00 a. M. In the morning, but the traditional workplace is not their cup of tea. So youre telling me the average age of your reps has come down. Significantly. Tell me about that. I didnt realize that. Well, somebody told me a long time ago, if you want to catch moves, youve got to use moose bait. We started doing research, what are millennials looking for . They want purpose in their life. When tailor swift came out and took on apple, she didnt have to do that. She did it for everybody else out there. Were attracting a lot of those people. And our whole concept of the enlightenment and empowerment of women, a lot of people, thats sticky to them. One of the things we dont talk nearly enough about is the fact that youre a technology buff. Many of these sales are innovations you comep with every single year. Interesting. If youook back when i joined the company, we were 85 food orage. Now we dont call it food storage. We have a categegy kaeld called food preservation and its about 25 . Our new product is what we focus most of our t te on. Wewere the number one seller of cookbooks in france, were a cucuery company. We do innovation for food prep for busy, working women. So technologogis really w wt it all about. Ait of strange numbers, a lot of this many them obviously because of currency. I expected a lot of europe to be stronger because buff such a strong presence in san francisco. Anything to worry about . Europe has something to worry about because im part of this thing for european lead is. Europe is getting older, theyre not producing enough jobs. When steve jobs launched the phone here, he had a market of 300 million he could sell to. Over there, look at what happened to nokia, they had to get registration in 40 different countries. Women want to be entrepreneurs. They have millennials, too. Youve been terrific at putting new products in your pipeline. At a certain point, dont he just want that product line to put it right through yourself . No. That is not a maybe. That was a no. Thats a no hey, we have wonderful beauty businesses in certain marks. And you dont need that. All right. You always give straight answers. Every bit deserving. Stay with kraker. Coming up, whats cooking . Shares of spi polt lay Mexican Grill have loss a pinch of advisel after its disappointing Third Quarter results. Has the flame on this company been turned way down . Down . Well, things in the bedroom have always been pretty good. Yeah, no complaints. Weve always had a lot of fun, but i wanted to try something new. And im into that. Both of our sensations. Right, i mean, for both of us, just. Yeah, it just takes all those awesome feelings you usually feel and it just makes them. Rawr. Dare to feel more with new ky love. I know blowdrying fries my hair, but im never gonna stop. Because now ive got pantene shampoo and conditioner the prov formula locks moisture inside my hair and the damage from 100 blowdries is gone. Pantene. Strong is beautiful. Theres a more enjoyable way to get your fiber. Try phillips fiber good gummies plus energy support. Its a new fiber supplement that helps support regularity and includes b vitamins to help convert food to energy. Mmmmm, these are good nice work, phillips the tasty side of fiber, skrch. Skrch. What are you doing . The dishes are clean. I just gotta scrape the rest of the food off them. Ew. Dish issues . Cascade platinum powers through this brownie mess better than the competition, the first time. Today we saw one of the years most heavily anticipated ipos, the public debut of ferrari. The highest of the highend luxury sports carmakers which now trades under the fabulous symbol race. Its not a surprise that fer rey regardrys stock closed up 5 today. However, before you buy this stock simply because youre in love with the can you know companys beautiful cars, i think its worth taking a look under the hood in order to figure out what youre really getting when you buy shares of ferrari other than the hoopla that we saw today at the exchange. We know that ferrari has a decent sized race car business. In addition to selling cars that are street legal. We know the Company Sells engines along with ferrari bradz branded swag. But perhaps the most important part of this deal, in my view, is not so much what you might be buying with this ferrari ipo. No. Its whos doing the selling. Sell, sell, sell. In this case, ferrari belongs to fiat chrysler. And they now have an 80 stake been solol publicly. Theo has been in charge herer sincnc1969 and this is the first step i ithe spinofof that will result in a separation of ferrarirom fiat chrysler. Eyre spinninin off ferraririor two reasons. Ininpart, because itserformance has been lagging. The Company Sells a less exciting brand, like jeep, but mainly because they believe ferrari can get a higher valuation as an independent company and it makes sense to me. When ferrari builds a car, its still about performance. What about the performance of the Actual Company . When you look at the numbers, you might be surprised. Ferrari generated 18 Revenue Growth in 2014, but their sales were flat year over yeefr First Quarter 2015. But lets sink deeper than that. Lets look at sales and earning he dont tell the story. In 2014, fer regard railroad saw its total shipments increase by 16 . Before and the First Quarter 2015 they shipped only 1,635 cars. Down 5. 6 from the year before. Of course, these volume numbers might not mean what you think they mean because ferrari is not like other automakers. The Company Says Demand outstrip outstrips supply for ferrari and they plan to keep it that way by limiting the supply of new cars they make. Let me read you the part of the per expectus that i think will help you. We believe that waiting lists have promoted our productive sense of exclusivity. We ensure we do not jeopardize client satisfaction, end quote. Thats right. Ferrari tries to not meet the demand for their vehicles. And you know what . The strategy makes a lot of sense. Its why this company can get away from selling the cars anywhere from 188,000 to 40,000. A ferrari is the ultimate luxury items and the luxury items are that is fabulous for pricing. But on the other hand, its difficult to grow as a business if youre not willing to sell more cars. Before 2013, ferraris business was determined by their manufacturing capacity. But in 2012, management decided deliberately to limit the n nber cars sold to roughly 7 nouss a year. In order to maintain that sense of exclusivity they talked about in the process. Going forward, ferrariri p pns to contntue to keep volume relatively low. It w w mentioned to me this morning when i was interviewinin sergio marcionni. I said, hey, can you double the number of cars . Thats not what its about. Nevertheless, they do intend to do their shipments from 7,255 last year to 9,000 by 2019. I want them to double production. Forget about it. So essentially, ferrari has dictated a 4. 5 comp annual growth. Thats right, you heard me. 4. 5 . We typically dont regard that maybe the Companies PushPrices Higher and perhaps sxabd their auxiliary sinesses, maybe in the rate of 5 to 10 range. Given how this stock is valued, more on that later. I like to see how much faster growth you could have here to justify the prices people are paying for the stock. Of course, we dont even know if ferrari will be able to successfully execute when it comes to increasing the production of new cars. Even if they do, we have to be concerned this will hurt the companys pricing power. Now, believe it or not, sales of cars and spare parts are only temporarily 70 of ferraris total revenue. The rest comes from engines and various commercial sponsorships. Of these business, only the engine segments growing rapidly, making a real growth driver for the company. Engines only account for about 11. 3 of the total sales. Put it altogether, and you have a company with a sexy product that is gorgeous, but not partic