Nasdaq gaining. What happened to make everyone go from negative to positive practically overnight . Primary catalyst is the strength in oil. As long as oil hangs in there, roars higher there wont be big defaults in the oil patch, just small ones. We saw it today. The run on crude is incredible. Crude, crude everywhere and not a drop to be able to you cant find storage. You can always tell this kind of thing that oil is in control by looking at how the s p 500 futures trade before the stock market opens. The socalled overnights. Last night with oil up 75 cents the futures looked like they would take stocks up a half percent. As the oil futures traded up to double that, the s p futures suggested that the market would rally up a full percent. It is lock step. In the second positive factor, second factors crept into the market and well talk about it though its political. Bernie sanders, looking like a paper tiger. With a small loss hes now buried alive. Now we are hearing about how Hillary Clinton has locked audiotape huge number of super delegates and it could be impossible for sanders to win. Where did that come from . I have been saying when we get clarity in the president ial race its good for the stock market. Since the media likes a horse race, be careful. When the map turns to sanders in a month. Maybe the press will declare hes come back from the dead. Knocking out sanders, if hes knocked out, as every piece of journalism i saw this weekend post nevada suggested allows hillary to go back to a moderate which is friendly to wall street and happy to take wall streets money. On the republican side the immediate is trying to keep marco rubio alive. I expect trump to go after marco day he announced for president. Now you have a pro business republican versus a pro business democrat. Maybe thats why the market is strong now. Trump doesnt have much good to say about the banks. Hes reserved a special lash against hedge funds but as long as sanders is a threat expect invective against the banks and Drug Companies from hillarys camp. They are huge targets for the left. Clinton has taken millions in donations over the years from the Drug Companies. We know johnson johnson, bristolmyers, etna are among her biggest givers. You have to believe she can ease up on the antibusiness rhetoric. There is a dialogue. It will be a lot less heated if sanders is sidelined. Call me skeptical since we are three states in. It seems like what the market has been saying. Hillery spent time with wall streeters of the hedge fund and Investment Banking variety. This doesnt mean they own her candidacy but there is a sanders or president obama offered. The market knows hillarys moderate stance. Its why you see drug and bank stocks flying and why biotech is quite a bit. The rhetoric could really die down. The tweets could become fewer and far between. Why not . If hillary runs against donald she needs every penny she can get. We have trump who seems like the favorite. Hes pure gold when it comes to the stock market and business. Perhaps the most pro business candidate in history. After the media pronounced sanders is a goner and trump is unstoppable we could return to the days when there are Business People around the next president who matter who and things could get done. Dont forget hillary sat on the board of walmart once surrounded by captains of industry, six years. You dont sit there and rail against capitalism. Thats not all that drove the market today. Thank you david faber. United technologies was up big. When faber broke the story it was brilliant. I have no idea if the deal could be consummated because of antitrust concerns but this is one of my worries about 2016, the lack of merger activity being assuaged before our eyes. The ceo of honeywell trying to get it before earnings turn around. We wait for the other shoe to drop in china. It hasnt. Highly visible chinese plays. Its remarkable how positive the moves are. China has been off the radar so the shorts cant press bets and many big companies, the stocks just got too cheap. They are rallying back to reasonable levels aided by honeywell. In one of the most bizarre twists yet just last week stocks roared higher today. You should go listen to the call. Down beat about the farmers and more on that later. The stock is running. These were calls that colored trading in a negative way. Last friday, now they are winners. Thats fast. Not like anything happening. Nordstrom up 4. 47 . No news. They had a negative quarter. Oil going higher. Two pro business candidates. Neither is a friend of wall street. A chinese story that refuses to get negative. Earnings forgiveness have created a benign moment of good feelings for stocks ten days after everyone gave up on them. The stunning turn cannot be dismissed. It may not reflect anything but shortterm considerations. We have now once again gotten over bought and are due for a downturn. Troy in florida, please. Troy. Yes, booyah, jim. Booyah, troy. Caller i was watching this my Charitable Trust owns both. Disappointed in bank of america. Nice pay raise for the ceo. The stock is doing better. In the old days i would turn myself upside down for comic relief. Now i cant do it. The ceo came on mad money and brian moynahan, please come on mad money to explain the way john stump did. John said, listen, we have bad oil and gas loans but we are criticizing them, checking them out and i have faith stump will get out without big charges. They have a giant mortgage book of business. Now bank of america as cheap. Dennis in michigan. Dennis. Caller hi, jim. What are your thoughts on the airline stocks, in particular delta and jetblue . I came out last week, did a piece and the week before another piece saying the stocks are too cheap. When i see five, six, seven times earnings thats ridiculous. American. I think they should be bought. I like southwest very much. Im el in the bullpen for action owners my Charitable Trust. Nick in illinois. Nick. Caller booyah, jim. Booyah, nick. Caller been watching your show since i was a little kid with my mom after school. How do you like that . My producer has been here longer than i am. Shes a grandma now. Just kidding. Whats up . Caller my question regarding tesla is given the rebound in price do you think it is a good guy boou . Same thing on tesla. People get tired of it. But it is a cold stock. There are people who like tesla so much they will buy the stock. It doesnt matter about valuation. Per share. Doesnt matter if they are making money for a car. You cant deny them el the right to buy tesla. Its like a First Amendment issue. All right. Dismissed even if it reflects temporary news, enough good news to cause the market to rally big. Tonight, is gap taking the fall into the gap campaign too literal . They have struggled. You will want to hear it. Then a tale of two retail stocks. Columbia and vf corp. Last year a 160 billion the deal to form the largest drug company. I get an update from allergan after earnings. So 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. Head to madmoney. Cnbc. Com. Check this out, bro. Whats that, broheim . I switched to geico and got more. More savings on Car Insurance . Yeah brofessor, and more. Like renters insurance. More ways to save. Nice, brotato chip. Thats not all, brotein shake. Geico has motorcycle and rv insurance, too. Oh, thats a lot more. Oh yeah, im all about more, teddy brosevelt. Geico. Expect great savings and a whole lot more. Degree motionsense is the worlds first deodorant activated by movement. 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Over the last year we have seen a great many once red hot stocks totally lose their mojo. Now that the market is finding its footing with another good day for averages i think it is worth continuing to explore the anatomy of a broken stock. Why . In this environment you have to beaten down stocks that deserve your money, deserve to be bought and stocks that deserve to be beaten some more which brings me to the gap. Gps, Parent Company of banana republic, old navy. During the late 1990s and early 2000s you couldnt walk down the block without running into a new gap store. Business cooled off for a decade until gap launched an impressive come back a few years ago. The stock roared higher in 2012. Then 26 in 2013. Another 8 in 2014. What a winner. For a while it seemed gap had gotten its groof back. Then, boy, oh, boy, did the narrative change. Last year shares of the gap plummeted 41 from 42 down to 24 and change. While the stock has rebounded nearly 10 since the beginning of 2016 its well off recent highs. 10 from summer. To say nothing of the all time highs from back before the dot come bubble burst. Im sorry. It wont well fix it in post production. What happened here . How did we go from the fall into the gap to the gap falling perpetually. How do we explain the rise and fall of the gap . Lets start with the turn around in 2011. A lot of people believed gap could be back to its glory days. During this period the company did a lot right. Restructuring the business to reflect the fact they own a portfolio of brands with umpbd perform ing stores of gap and old navy. Investing in supply chain systems to make it more productive and boost margins. Getting a cooler look at banana republic. The result after under numbers in 2012 where they delivered the fist annual positive same store sales growth in eight years. Unbelievable. After that the gap was off to the races. The business improved and the Company Became a cast machine. It was the hall seen era for gap. Lately its run out of steam. Perhaps the first sign of doom for the gap came when the architect of the companys come back announced his planned retiermt. After taking a big hit the day the news came out the stock drifted higher. I want you to fast forward to january of last year. Gaps new ceo eliminates the role of gap Brand Creative director creating a general manager of customer experience. Time viewed as positive. Gap was able to continue generating numbers through last spring. Things went south in may of 2015. Oh, man. Did they go south fast though. First gap announced the april same store sales were down by an appalling 12 including 15 drops in gap and banana republic. These numbers were brutal. Gap reported First Quarter results on may 21 and delivered a big revenue miss. The ceo was disappointed on the Conference Call. When they say it like they did, you feel bad. Gap stock got a reprieve last june when the Company Announced a slate of Strategic Initiatives including lay offs and store closings, however by july there we go with the nasty numbers including many more same store sales declines continuing through august. Suddenly gap got hit with analyst downgrades, on fear that is competition in the apparel space was growing and gap had little room to take share and it has grown, right . Back to school season, gap was pretty beaten down. And the things only got more difficult. Virtually every power retail under the sun. To make it worse gap lost the head of the Old Navy Division who went to ralph lauren for the ceo position. Last fall you could make the case gap wasnt worse than a struggling retailer in a difficult environment thats mallbased. Toward the end of november gap reported a brutal Third Quarter including a hideous slash of the fouryear earnings forecast. Then we learned the november same store sales were horrible. Falling 8 signalling an ugly Holiday Season to. Co. Sure enough the holidays were pretty dismal for the gap. When the company preannounced ugly Fourth Quarter result this is month, we also learned same store sales were down 8 in january. In short, gap is getting its head handed to it. Where do we go from here . Inspire confidthe quarter will be anything to write home about given the results we see from other retailers during the earnings season like disappointment from nordstrom and macys. Put it all together with gap feeling like a recipe for disaster or no upside since they told you things arent good. Granted the stock is trading just 11 times next years earnings. Thats a positive. You would think you could make the case its too cheap and the market started to revisit bad earningses and put a good face on them. The 2 bounce back from you cant just look at the price to herbings multiple in a vacuum. It represents essentially no growth in the company. That assumes gap can make the numbers which proved to be a pretty big if. Given the recent history of under delivering. Bottom line. Over the last year the gap has gone from a market darling to a stock thats practically uninvestable. Some of this is not their fault. You know the hideous slow down in mallbased retail. It seems gap has been struggling to get its act together since the departure of the former ceo glen murphy at the end of 2013. Until the company can demonstrate a turn around in the core brand and deliver Earnings Growth this stock will pop a little bit but then continue to be toxic. There are so many better retailers out there. Costco, tjx and stores more likely to thrive. Of to own this stock. Its been unseasonably warm this winter. Are the Apparel Companies feeling the chill . Im focused on vf corp. And columbia sports and allergan is down but could the recent earnings give them a boost . And has oil hit the sweet spot . I will reveal. 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With three types of good bacteria. Live the regular life. Phillips. Get ready to show your roots with roots touchup from nicen easy. Seamlessly blends with leading shades, even salon shades in just 10 minutes. For natural looking color as real as you are. Show the world your roots i have said it before, i will say it again. Execution matters. Just look at the insanely dismal results from two similarlooking companies. Columbia sportswear and vf corp. Here we have two Apparel Companies, both with a big business selling Winter Weather clothing. Columbia through the name sake brand and vf corp. Through north face. Columbia reported a knock out quarter and the stock is higher than we got the numbers while vf corp. Reported a bow wow quarter last friday. Stock sold off 4. 4 in a single session. Today after the rebound vf made up losses. Nevertheless, all of this begs the question. How do two companies with so much overlap produce such starkly different results. When vf corp. Is getting killed. Lets start by going over what sets them what do they have in common . Columbia whose ceo tim boyle came on a week and a half ago is a house of brands including mountain hardware, prana and climbing apparel, sorrell boots and columbia. They have a major focus on footwear and outer wear, especially winter clothes. Vf corp. Is a Larger Company with major expo sure to outdoor and Action Sports equipment and apparel which account for 60 of sales. Vf corp. Has too many brands to name them all. You may recognize timberland, nautica and others. Columbia just reported a blowout quarter, better than expected sales up 3 . Monster 15 earn ing beat off a 75 cent basis. Disappointing quarter down 5 year over year, shrinking gross margins. Some underwhelming guidance. How is this possible . You could argue vf corp. Got killed by the warm weather we are having which is vf corp. Did on the Conference Call. How come columbia isnt having the same problem . The truth is columbia totally brushed off the weather saying they did well, quote, despite unseasonably warm weather. Macro economic challenges, currency head winds and specificallile in terms of footwear the ceo said as our business with sor rel gets closer to the consumer to the women we are focusing on it becomes less a weather driven issue. In other words, the more they connect with the customer the less sales are driven by how hot or cold it is outside. Look at this. Its pretty hot. You really cant feel it. Boyle acknowledged that things could have been better if we had a cold winter but said columbia is doing well in the u. S. And europe regardless of the warm weather. It wasnt a big deal. It was completely believable and spectacular. Now i want to contrast it with vf corp. The company could not stop blaming the warm wea