We expect aggressive stimulus. Meanwhile, the decline in the shanghai stock market hasnt hurt our markets. Thats a big change. Ill call it a half check. Thats why we have half checks. Maybe it can be a full check on monday if the parliament does the right thing. Fourth, do we have a commodity bottom . Copper is breaking out. Im feeling more confident this group may be going down. Not necessarily from increased demand which is what we like but from reduced supply so what were going to do is give it a check mark. Box number five, oil needs to stop going down. The relentless slide must end. Hmm. We had a big inventory increase today and it didnt get hammered, it went higher. New pattern. It looks like oil stocks have stabilized. Im feeling good crude may have bottom. I dont expect a big rally the market but the down side seems to be quantified so i am saying check. Six, we need to see some improvement in the geopolitical scene. Here we have a definitive check. North korea started this, north korea is quiet. Theres a San Francisco in syria, the relative moderates are winning in iran, the times says that, who knows. Not bad for a couple weeks work. Thats a definite check. Item seven, we need the Zombie Companies to be put to death. Heres something i didnt expect, many zombies have gone up enough to get more liquid. Weve seen Equity Offering after Equity Offering for the Oil Companies that have saved their Balance Sheets and made money for investors like yesterdays giant marathon oil deal giveaway. These offerings in turn have void it had stocks of the banks that loan those Companies Money that we were worried about. There were plenty of smaller oil theyre smaller and Coal Companies will go but i think theres enough equity money to keep a ton of dying Companies Alive until oil goes higher. You know what, i say . Lets give it a check. Eight, we need relief from the super freaking strong dollar. Super freaking this was the one thing that had been going right when we did the review a few weeks ago but the euro has gotten weak again and while some emerging market currencies have gotten stronger indonesia theres no check in sight for this very important box. So no check. Next, item nine, we need more urgers and acquisitions, eureka, we have some. We have Johnson Controls and tyco and a Chinese Company sea company then we had the failed deal when honeywell was rebuffed by United Technologies. I want to say things are Getting Better and thats why ill give this a half check. 10, we want to see a healthy ipo market. No check whatsoever. Box number 11, we were afraid of peaks but weve seen resurgence in the home builder stocks, perhaps because Interest Rates have come down. More on that later when we speak to National Home builder tr pointe group. We had a split decision on autos, gm faltering and aerospace remains strong according to United Technologies and honeywell. Im not taking my cue from the stock of boeing because they have issues involving accounting and when i see that i say sell, sell, sell. I think apple stock may have put in a bottom because the iphone 7 beckons in the second half of the year. Check. 12, we needed to see more negativity. 13 days ago we had a level of negativity i hadnt seen in ages, what many thought would be a credit crunch, oil threatened to take down banks, we heard about freezeups and worldwide lending. That panic dissipated. Weve seen peak fear and negativity for the cycle and that check is standing. Item 13, we need more sector leadership besides fang, my acronym for facebook, amazon, netflix and google. Weve witnessed cloud stock which is have been decimated by terrible performs like linked in and Tableau Software come back to life. Superior quarter, sales force and work day leading the charge. Weve seen leadership . The cyclicals. We lack the drugs in the biotechs, the banks are a stalled but weve seen retailers going to keep that check up. Finally we wanted to see our Favorite Companies do better because of lower energy prices. Other than a small handful of companies, this just had to happen. Weve experienced the down side of lower oil but very little of the upside. I dont know, clorox gave us that so im waivering. Maybe i stick with the check. No. No. You know what . Lets downgrade that to a half check. So lets put it all together. Weve had 14 boxes that needed to be checked before we could feel safe about holding on to stocks when they rally and buying more aggressively when they pull back as opposed to keeping our powder dry and selling when it goes up. By my account we have a lot of boxes checked, a couple is still unchecked but i think we have enough to declare that we are in better shape than we have been since the year began. What does that mean . Youll never have all the planets align at once. You wont get dollar and this and that. We would love you know, but we cant. We cant do that. We have to be mindful that we have more checked than we dont and that makes me say that you know what . You can buy the dips more aggressively and the rips, you know what . I wouldnt be so quick to sell them now. Because this time they may be the real deal. Lets go to brian in illinois. Brian. Caller hey, jim, love the show, thank you for having me. Youre welcome. Caller my question is where do you see the stock value going in the short run and long run for Railroad Companies such as union pacific, bnsf and csx with regard to the devalue in oil in the past year. Thats crude by rail. We know from rbn that crude by rail has seen its day. I thought it was interesting that we got a story that chesapeake might have gotten a bid i mean csx may have well talk about that later. I like the rails, i think csx represents value. Were back to our handy dandy checklist and i think theres enough evidence for me to say dips can be bought and you dont need to sell the rips because they can be the real deal. On mad money, a crazy few weeks for honeywell, tonight im speaking to the ceo. Its the First Time Since he decided to abandon his bid for United Technologies. Im calling it an exclusive. Can the Company Behind ihop keep serving up the sweet stuff . And investing is like buying a house. Its all all location, location and location. Find out if tr pointe is the right place for your cash to call home. With cramer . Stress sweat. It can happen anytime to anyone. Stress sweat is different than ordinary sweat, it smells worse. Get 4 times the protection against stress sweat. 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, from phillips. Its been a couple of crazy the terrific diversified industrial makes everything from Aerospace Components to Climate Control systems, security equipment, special materials, turbochargers, refining catalysts. On monday of last week, my squawk on the Street Partner david faber broke the news that honeywell held merger talks with United Technologies. Huge company. But they ultimately rebuffed their advance. Yesterday honeywell announced they were no longer pursuing the deal and caused its stock to rally. Honeywell held its annual investor conversation where the company reaffirmed its full year guidance. I caught up with dave cote before the meeting. Take a look. Day, youve never minced words in all the years weve known each other. First page of your gigantic meeting is honeywell United Technologies combination. It made me think theres no way this could be over if this is the first page of your report. Well, i view it differently. I just know its on a lot of ive said, okay, its done, were disengaging that theres still a bunch of people out there that want to know, well, wait a minute, tell us a little more why and they want more color commentary. Give us the timeline because this its very clear you did not go to greg hayes, the ceo, whod been there for a year, and say you know what, weve got to revive the talks started by you guys because this is a great idea. That was not the narrative. No, thats correct. In fact, this actually the more recent pass started about four years, a i want to say. 2011 2012 when louis approached me and at the time we didnt do it. Then greg raised it with me in a meeting. He asked me if he could speak to me afterwards. We did. This was april of 15, somewhere thereabouts. He made a proposal, we made a counterproposal in september october, they responded vehemently they wanted nothing to do with it and we now, when he came and approached you, he must have given you some surety that he looked at boeing, he looked at airbus, he looked at e. U. , all the different reservations and told you they were solvable or he wouldnt have approached you. As you might imagine, for me this has been an interesting dynamic during this process. When theyre approaching us, none of these things are a big deal, antitrust not a big deal, customer issue not a big deal. Then suddenly when the approach goes the other way its like whoa. The history of this is that at one point they were their market cap was almost double yours. By the time that it got to the most recent, your market cap was bigger. Influential in terms of who should run the Company Given the fact that your Company Became bigger market cap. Yeah, id say that has an impact but im trying not to sound too, say, egocentric or selfaggrandizing about it. At the end of the day, if youre that big and i also thought if you did that you could get not just synergy which is youve heard us talking about which you were talking about. You could end up with something that gave you a nice core Growth Portfolio. And it seemed to me that just reputation wise investors would feel more comfortable if i was doing that. And i said i would be willing to do that even though im 63 and a half. You would be the ceo. Yeah. Now, theres an important slide in your very comprehensive presentation today. Plane supply is bid in pieces, not in total. This made it very clear that if you wanted to look at this thing on a casebycase, whether boeing or airbus could complain, you dont bid together. It wasnt like you take the cockpit, youve got to take the engines. Not like that. Exactly. A plane is bid in a bunch of different pieces. And theres if you look at the chart, theres a lot of competition in every one of those pieces and as you probably theres a red section where overlaps were identified where there is no overlap. So thats more like i use the example exxonmobil. Its more like glaxosmithkline. You talk about that its kind of like j. P. Morgan bank one. But those are more Fragmented Industries than your industry. Well, that was also an attempt to assuage investor concerns about has a deal this big ever been done and been successful . And the point is, yeah, actually, maybe not in industrials but in a bunch of other areas it has. 42 in cash is what weve been hearing, 108. But you hear about your credit, youve always cared about your credit rating. Could you go to 118 without a problem . If its done with stock of course you can. Certainly we could pay it. I dont want to, though, because synergies it could work. Perhaps. But i can say at 108 this is already an incredible deal, or i should say was an incredible deal because utx share owners would have gotten. 6 shares of honeywell, a better Growth Portfolio with whats occurring at honeywell, 3. 5 billion in synergies. I think a good shot at a better multiple. There was a lot of value there already but if they dont want to do it, they dont want to do it. How many times did they meet with you even as they now say they didnt have interest. Mr. Hayes said to me that it would have been irresponsible deal. How many times did he meet with you on this irresponsible deal . Well, on the first pass, if we go back to april, it was like three or four times. And if we go back did he ever mention it was irresponsible . No. [ laughter ] no, it was a good idea back then. Okay. When did it become irresponsible . Thats very funny. When you became ceo . To nail it down, dave. I think that Tipping Point was when we said, tell you what, heres the offer were willing to make. And that was back in september of last year. And i just recently made an approach to so would have been like two weeks, a i called him on a tuesday. On friday i met with greg and his chairman. Last this is like two fridays ago . Two fridays ago, i want to say like the 19th or Something Like that. And monday it became public and i called growing say i have no idea how the heck this happened. But it did get ugly and it seemed like it was about to get uglier. Is that a reason why the deal was dropped . Ive got to say you want to have somebody who negotiates on the other side. If you dont and its very clear they want i think it was on your show, wasnt it, no like no way, no how. Yes, jim its never gonna happen, to give the quote. And never gonna happen means there was no way that you were going to go hostile. Viewed it as i want to do stuff thats the smart for share owners. Going hostile i dont think makes sense and i was clear from the beginning with investors that i wont do that. Both sets of share owners can make money here but if they dont want to do it, they dont want to do it. We have plenty of other opportunities. Youll hear we have a great story today. Were going to spend a lot of time on that. For anybody whos concerned that, gee, theres problems at honeywell, i would say okay, with time and they say, gee, thats another good quarter and another good quarter. As you said on the call, after 14 years when are they going to believe . You do not mince words. You have a btw share sale question. I was saying to my colleague, ive got to ask about why you sold half the stock. You bring it up. Why did you sell half . Sell what . Why did you sell so much stock . I thought you said sell half. I didnt sell half. Well, people said you were, there was a percentage, some of the press reports said that. You sold some of your stock. Why . Well, i always knew this, i have to say ive really been impressed with the press ability to take Little Things and kind of blow them out of proportion. Its quite impressive. So this is an example. I have sold lets say in that sale less than 10 of my overall holdings of honeywell, less than 10 . I own over 60 times my salary in shares today. I hold all my options for the full tenyear term. I exercise in the tenth year. Then i require that we have to hold the shares for a year so i first sold shares i want to say last february. And this because the when it comes up i know thats when the year comes up thats when i sold. So i did the same thing this year. It was all approved by counsel and by the way theres a pattern in it. Well, its a new pattern because i got through the ten the way, this has been a great strategy. This combination, i want to go back to this, had nothing do with what i thought was an unbelievable 2015 set up for 2016 which you say is doing better and a 2017 that makes me feel like why bother with this . You have so much, dave, there are so youve got the turbo really growing, youve solved the problems, whatever, with oil and gas, youve got aerospace thats terrific. Why even waste your time with this, dave . So much is going right at honeywell . It is all going right but just because it is it doesnt mean theres not the possibility to do more and add greater value for share owners. So this is one where we look at it saying hey, weve got a great thing going here but, wow, if we could make this happen that would be great for everyone. Heres a very hot engine, so to speak. They were a 100 billion company, they did lose a lot of market cap. Is this taking advantage of what could be a gap year . 2017 could be a much better year well, i think it was on your show that greg said this is not about this year or 2017 for utx, this is about 2018 and beyond. And i totally disagree with him because its clear hes making a 2017 bid that he will talk about. But thats all right. Thats dave cote from honeywell. Right after, this well have more with dave. Coming up you are always straightforward when you get something wrong. Dont miss what the ceo of honeywell has to say next. Emergency Roadside Service and how its available 24 7 and then our car overheated. What are the chances . Can you send a tow truck please . Uh, the location . Youre not going to believe this but its um. Its in a tree. I wish i was joking, mate, but its literally stuck in a tree. car horn honking a chainsaw . No, no, all we really need is a tow truck. Day or night, dry spray . Thats fun. Its already dry no wait time. This is great. Its very soft. Can i keep it . laughs all the care of dove. Now in a dry antiperspirant spray. A heart attack doesnt care if you run everyday, or if youre young or old. No matter who you are a heart attack can happen without warning. If youve had a heart attack, a bayer aspirin regimen can help prevent another one. Be sure to talk to your doctor before you begin an aspirin regimen. Bayer aspirin. Shoulders dont just carry pads. They carry your fans passions, hopes, and dreams and maybe, a chance at greatness. Despite honeywells inability to take over United Technologies in a merger that would have created an Aerospace Powerhouse that would not to be believed, i think its clear from todays Investor Conference that honeywell has a Bright Future alone with ceo dave cote talking about h