>> dhi regardless of where rates are going, supply/demand is not going away >> i think mcdonald's, so bad it's good, maybe >> all right, thank you for watching "fast money." see you back here tomorrow meantime, "mad money" with jim cramer starts right now. my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you money. my job not just to entertain but educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer sometimes it feels like it's harder to own winners than

losers if you have winners you know what what can i say until today i thought that the winners were going to stay higher that's my conclusion about a day where the dow tumbled 533 points, s&p lost .78% and the nasdaq declined .70% the companies that have the best fundamentals getting handled once again i did not expect that to happen today. the difficulty is with owning winners. the reason i urge you to take some profits and gains when you have them. is that you get weeks like this one where the old winners get obliterated and if you own too many of them you might want to give up on the whole asset class. so tonight i want to explain to you why you need to understand the bear cases for the stocks that you own for the most beloved stocks. otherwise you'll never know what you're up against. this year the winners had been the magnificent seven plus eli lilly which after years of making money are crushing your portfolio. we have to dig in and see if

anything's really changed or is this one of those periodic sell-offs that could actually be an opportunity if you have some sideline cash and no one's thinking like that first issue, when you get this kind of roh you never know whether these stocks are selling off because there's something wrong or because they're up huge and people want to take profits. that's why i say if you own losers you don't have to worry, there's no profits but winners people find ways to take profits it is so hard right now. at least you know why the losers are going down it's because they aren't any good the winners you have to say what the heck's going on i thought it was a good company but when a big winner sells off you have to ask yourself did the stock get too rich, did it go too high, was it just momentum, maybe something shifted, something changed, and you're going to be left holding the bag for a long time. so why not sell now? from what i can tell you nothing has changed with the stocks that we're going to talk about tonight. but it is true the stocks are a heck of a lot more expensive than they were one year ago even as their earnings have been growing at a nice clip

they have gotten too expensive versus where they are. that's a big issue second issue, as a winning stock goes down and the pain doesn't stop -- >> the house of pain >> -- 7 to 10% which is the typical garden variety decline, you get a second group of traders who follow the charts. they decide to sell because their stocks look broken on the charts once again people take up the broken stock banner. there's no stop in the decline when that happens. yes the charts are that important at least in the short term and medium term and yeah, just like the stocks seem expensive the charts are broken number three, there are always people who see these formerly hot stocks go down they say they were always just in a bubble anyway, so why not short them. maybe short them through an etf so no individual can really crush you. they figure the easy money's already been made and you know what, let's sell, sell, sell and short, short, short because when the short sellers arrive they can do a ton of damage and they do their best to not let the

stocks lift. anytime they seem to rally intraday, which i saw three different times today. three different times these momentum stocks tried to rally and three different times i saw shorting right now these choke points are coalescing all at once around the megacaps and that's before we even get to the bear cases we're going to go over right now. so why don't we do that? let's go through the individual reasons i think people are selling the magnificent seven and eli lilly. amazon sells at 40 times earnings that's unusually high even for amazon it's not a huge beneficiary from lower interest rates so people are fleeing from amazon and they're buying cyclical plays like a d.r. horton the big home builder that could see an earnings explosion as rates come down and that's how horton could rally 10% today on just an okay quarter. and great companies like amazon are getting hit hard alphabet real tough one it's cheap the ad market is fantastic youtube's killing it but perhaps people think wait a second, i'm using their ai platform as well as microsoft's. so are the regular search numbers going down it's a legitimate question

i know i use search much less. i go to chatgpt. many other people doing the same thing. so what happens? people want to sell first and answer -- get questions answered later about whether search is being hurt by ai apple. people are in there selling at 165 in april because they thought the new iphone wouldn't resonate when the worldwide developers conference came we found out about all these new features including building ai, getting it for free, next iphone iteration going to be terrific stock comes roaring back but in the 230s where apple peaked earlier this week it hasn't run too much, i think that's what's ailing it. alongside the possibility of some anti-china rhetoric from donald j. trump when he speaks at the convention tonight. big china business meta seems solid but it's a little unnerving to own shares in a company that the presidential front-runner seems to have it in for. trump dislikes meta. even though trump's rabidly anti-china he's willing to support tiktok, a chinese company, as a counterbalance to mark zuckerberg, the ceo of

meta the stock was subdued for most of the day before we learned that meta might want to buy a stake in ray-ban maker the maker of ray-ban's sunglasses product which apparently can't even get close to meeting demand. but then, well, that's probably not enough to offset the president or presidential candidate, is it how about microsoft? this morning david faber's talking about all the data center spending may turn out to be a big waste of money. of the companies building huge data centers could microsoft be spend too much without a big return i think co-pilot their ai platform will be huge but will it be big fluff to justify their snichlt given the stock sells for 37 times earnings there's not much room for failure so why n not. if you pick any 20-year period for any stock nvidia's had the biggest gains over the past two decades with a 33.38% annual return and that's over a 100-year period that's from a draft from a paper by a fellow by the name of hessen bessembinder from arizona state university

i brought it up this morning i thought it was just an amazing number my colleague faber smiled, laughed and then reminded me that this is a what have you done for me business so it doesn't matter in this kind of sell-off that's the prevailing attitude. that's why everyone wants out. tesla. okay, it just had almost a 100-point move in about a month based on absolutely nothing other than chatter about self-driving cars. the numbers aren't that great. that's ridiculous. the stock sells at a monster charisma per share number but also an equally large price to earnings multiple of more than 100 times. 100 times earnings so who would want to take profits with that? and eli lilly the bear cases that roche is developing their own glp-1 drug in pill form. we talked about that in january. and we don't even know how long it will take before it's approved by the fda if it's ever even approved. but in this market it causes a tailspin i still like lilly because these drugs are hard to mass produce and they've got a huge lead on the competition. something i reminded our investing club members about

yesterday. it's a big position for the trust. didn't matter. the stock is for sale. so let me tell you where i come out on the magnificent seven plus eli lilly bear cases. every one of these bear cases is for real just like most of the bearish arguments you've been hearing about these stocks for years now. at a certain point, though, real worries do get baked in. the market is trying hard to bake these in. you can own losers and have no profit taking. right? winners have profit taking that's what's happening. do i know when they'll bottom? do i know when they're done? usually when you ask that you're staring at the bottom. but i felt yesterday was going to be the last day of the sell-off and that was wrong. but if you ask me, the reason why these former winners are all going down now is because the shareholders are scared. they're frightened they don't want to give up their gains. so they're getting out why don't i feel similarly inclined because bottom line i think if you're willing to own them for the long haul and take some pain you'll continue to win you just need to get over the hump a hump that periodically scares people out of this whole asset

class. these are solid companies with real earnings and great balance sheets but these moments of panic are usually where you need to be patient. and even opportunistic >> buy buy buy buy buy >> taking the sell-off as a chance to buy some great stocks while they're on the way down. let's go to robert in new york robert >> caller: jim, you couldn't have said that any better. i mean, what you just said that's exactly what you do that's why i listen to you that's what i do i buy on the way down. >> but you know, robert, it is painful. and if you have losing stocks you're not worried because you have no profit takers. but we have huge profits to be taken on this. and that's what you and i are looking at right now >> caller: that's exactly it i want to talk about this stock. the other day i was at country club i wasn't having steak this time. but i'm there with my buddies and i'm at the country club because of all the winnings you have made me very great recommendations. >> thank you >> caller: so i'm sitting there, a lightning storm comes in, boom, power goes out two minutes later the power comes -- i figure oh, i'm not going to get my food

power comes back on. and i look at the waiter and i go -- he says oh, we have a generator. and i say oh, i can just -- i knew the generator that he had because everywhere i go i see the same name. and this company designs and manufactures power generation equipment serving residential, commercial, industrial they just received up to 200 million from the department of treasury to supply renewable power to puerto rico the other day. and they're doing this -- and they're also in the ev charging stations >> they're doing everything. what's the stock >> the stock is generic. generac. >> generac i agree with you i think it's a great stock we had them on i love the story when rates go down that stock does even better, robert let me have -- where are we going? are we going -- we're going to augusta, right we're going to augusta country

club we don't know when the magnificent seven will bottom but i know that if you own them for the long term and be patient you'll continue to win but that's a hard thing for people to have on "mad money" tonight constellation brands reported a strong quarter that sent the stock lower. but after climbing back what should you make of the mixed action in the company behind corona and modelo? i'm going to check with the ceo. then charitable trust name abbott labs has been dogged by litigation concerns and after the company reported this morning i'm sharing if earnings changed anything in our thesis and viewers know we've been fans of charles schwab. so now the stock has fallen after earnings are investors getting an opportunity to buy? i'm checking in with the ceo so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on x have a question? tweet cramer hashtag madmentions. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc

miss something head to madmoney.cnbc.com. - [narrator] we just signed the lease on our third shop. my assistant went to customink.com to get new uniforms with all the locations. he found great products, uploaded new art, and had boxes sent to all the shops. custom ink makes it so easy.

get started today at customink.com. >> no application fee if you apply by august 29th at university of maryland global campus, an accredited university that's transformed adult lives for 75 years. you're not waiting to win, you're ready to succeed again at umgc.edu. [busy hospital background sounds] this healthcare network uses crowdstrike to defend against cyber attacks and protect patient information. but what if they didn't? [ominous background sounds] this is what it feels like when cyber criminals breach your network. don't risk the health of your business. crowdstrike. we stop breaches.

we need to talk about constellation brands the beer, wine and spirits company best known for importing america's top-selling beer, and that's modelo. along with corona and the incredibly popular pacifico. i said before you need to get more selective on the whole alcohol industry between these glp-1 weight loss drugs that reduce cravings for just about everything and the general embrace of healthier lifestyles for the younger generation people think things aren't looking that good for alcohol. still, constellation's a long-time cramer fave. i think it's the best of the bunch sch. when the company report two-day weeks ago it reported a slate revenue miss good forecast too. yet the tom tumbled 3.3% in the

response constellation quickly made up its losses it's been selling off for the past week on concerns a trump administration might impose a 10% tax on all imports not to mention its customer base could be curtailed by a possible crackdown on immigration so whywhat do we make of this stock here let's take a closer look with bill newlands. president and ceo of constellation brands figure out what's happening. welcome back to "mad money." >> thanks, jim, good to be here. >> bill, this category has headwinds, as you said yourself. and yet the numbers are sensational. modelo group depletion nearly 11%. do you think the category and your stock are being punished unfairly by things that are never going to really come to pass >> i think that's very true, jim. when you look at the growth story that we've had, it's not a flash in the pan we've had tremendous growth over a long window of time. and what i really think is speaks to is the importance of brands our brands are doing extremely well in this category.

we're gaining share. and that would be true if you thought about us in the overall consumer products landscape. it's very hard not to recognize the true success that our brands have been having >> now, when i look at the brands, i say to myself, well, pacifico growing well, modelo growing well but corona did not grow that well i was thinking maybe people are concerned about the fact that corona seems to have cooled a bit? >> corona i think will be fine over the course of the year. it was a shade shoft in the first quarter. some of that was driven by its overweight in the east, and the weather wasn't particularly good during the early part of the year but we expect corona to be up in the low single digits during the course of this full calendar year and we expect that we'll get there. >> so what -- let's talk about the trump administration because i keep hearing jim, you've got to get less bullish about constellation, there's going to be a 10% tariff on anything that's brought in and let's not forget if you have a total seal on the border some of the people

who drink constellation brands, hispanics, might not grow as much now, that second one i think is a little pejorative and i don't like it. but i have to understand that both of these are square in the wheelhouse of why the stock's not soaring here i think so tell us how you're handling in your boardroom the notion of what a president trump could mean >> i think a couple of things are important to keep in mind. first of all, we already have four years of history of a trump administration, and two of those four years our business grew high single digits at the top line, and two of those years we grew low double digits at the top line so we have had tremendous success during previous trump administration so we're not particularly concerned about that avenue. relative to the question of tariffs, i think it's important to recognize that a significant part of our inputs come from u.s. farmers and i highly doubt that any tariff expectations are really designed to hurt u.s. farmers. and remember, jim, we're an

american company a lot of our inputs are grown here in the united states. so we think we'll be just fine, and we really don't necessarily expect that there will be a tariff situation related to our brands >> okay. excellent. now, i want to talk about one that "the new york times" did a piece recently cannabis tops alcohol as america's daily drug of choice now, you have a stake in the best cannabis company. you have a stake in -- we've had them on many times but when you look at your portfolio, are you concerned about cannabis rising and beer slowing? >> this is certainly a worthy discussion to have, jim. but the facts as we have them today say that cannabis is not a massive threat to the alcohol beverage business. when you look at states like colorado, which were one of the early adopters, you just didn't see a lot of change in the alcohol beverage consumption in a state like that that was, again, one of the very early adopters of cannabis so we think they can quite honestly work just fine in

parallel and as you point out, we do have exchangeable shares in canopy. if that happens to take off we'll be quite pleased about that answer. >> excellent now, i want to talk about the difference between beer and spirits in that some of your spirits businesses are down and beer are up and what i wonder is that glp-1 makes craving less for some of these spirits but also people are being a little bit more -- the younger people, a little more worried about what pure alcohol is. they don't worry about bill, beer they worry about whiskey they worry about vodka they worry about bourbon are you seeing maybe the beginning of the healthy lifestyle slash glp-1 cutting into those brands that frankly didn't have great growth but not hurting beer >> i really don't think it's going to be a big impact we've listened to millions of consumer conversations and glp drugs just really don't come up in the conversations at all. it doesn't mean that there isn't

some peripheral discussion around the topic but it's fairly minimal. i think the important thing to recognize, though, is that there is a desire on many consumers for betterment and you and i have talked about this before. and we've done a bunch of things to go right after that corona non-alcoholic's a great example. we introduced it last year it had a spectacular year. and you know, our beer experts would tell you you're hard pressed to tell corona non-alcoholic from corona extra. so for those people who are looking to have a light tuesday night or be the designated driver we're starting to have products that are available for those people on those occasions. >> i have to tell you, i have not been able to detect the taste difference i never thought i'd ever say that i've always felt the non-alcohols were shams. but i can't detect it now. i guess you've gotten really good now, let's do a real question. you're the only packaged good company that i know that has double digit and is actually building capacity to meet demand, your new brewery why are you being treated as if

you're shrinking like every other cpg company i deal with? >> i think people are not recognizing the importance of brands you know, some people have said, gee, the category of beer in particular isn't particularly strong at the moment well, i look at it and i say our brands are very strong and performing extremely well. but we're not the only brands that are doing okay in the category what that says to me is it's critical to have brands that are strong our buy rates are up, and they're up even more with a hispanic consumer. that just says we have tremendous brand loyalty, and i think that over time we really need and should be rewarded for that loyalty >> yeah. i totally agree. when we've been telling people who are members of our investing club listen, patience is not a sin here you've got the number one company in a great category. you've got them building breweries to meet demand everyone else is shuttering things so bill, i'm with you. i just don't understand, but i had to -- i brought out every

negative so i'm tired of hearing the negatives. we've addressed every single one of them. okay, partner? >> you and me both and we haven't even talked about our margins. which are also best in class >> best in class but we had to hit them all because you know i sit here every day as the chief of the club and people tell me why do you stick with it? i say because it's the best. there you go bill newlands is the president and ceo of constellation brands. thank you, bill. >> thanks, jim >> guys, we addressed every negative we addressed every single negative i like the answers and that's why we stay long this stock for the club "mad money's" back after the break. >> announcer: coming up, back to the lab again? a med tech name reporting today with results you won't want to miss next

what the heck is going on with the stock of abbott laboratories the cramer fave medical technology giant that we own for the charitable trust here's a company that reported a really good quarter this morning. yet its stock still got hit. down 4%. >> sell sell sell! >> i recommended this one before because i think abbott's core business is in good shape. and they finally started getting over their post-covid hangover but for months now the stock's been weighed down by litigation worries related to their specialized formula for premature infants.

back in march another baby formula maker lost a lawsuit on this issue and now abbott's starting to defend itself in court as well personally i think the whole issue is a red herring but we need to address it because it now controls the stock narrative. arguably the market's taking it more seriously than the actual earnings it's why the stock got obliterated in what was ot otherwise a pretty good quarter. it seems that until abbott brought the whole issue up today nobody seems to know about it. we've been talking about this issue toar months with club members but it sure did surprise a lot of people today. so why don't we just get into this whole thing let's get into the baby formula issue right now. abbott started facing its first court case here just last week in missouri. the plaintiff is the mother of a baby girl who was born premature and then developed a potentially fatal condition called n.e.c., which caused brain damage. their lawyer claims that abbott's premature infant formula is what caused the condition while alleging that abbott also hid evidence of the

risks. abbott's lead defense lawyer says the baby in question already had a host of medical problems at birth and developed this condition before ever consuming the company's formula. now, i'm a bit confused about this initial case not because of the facts but because of the venue, st. louis see, st. louis courts are considered to be particularly plaintiff friendly, maybe the most in the whole country. in 2019 a st. louis jury ruled in favor of 20 women who alleged johnson & johnson's baby powder caused their cancer and awarded them $4.7 billion. when this whole premature baby formula saga started, an illinois jury ordered respect benkizer to pay $60 million to the family of a premature baby who died after using the formula. that was a number larger than what the plaintiff asked for and that really made people concerned. wall street's worried that if abbott loses in st. louis they'll get hit with much large damages too, possibly setting a

bad precedent. just across these two companies there are more than 1,000 lawsuits over allegedly dangerous formulas for babies born premium clur. it's a real concern. however, i've got to say even though upset parents make for extremely sympathetic plaintiffs i think abbott has a strong case here and even if they lose every case, highly unlikely, it would amount to much less than the $28 billion in market cap this company has lost since the march defeat to its competitor reckitt benckiser. and as i said this urban monthing i think there's a pretty good chance that abbott does lose but that this is still a good company this morning i spoke ton't a's ceo robert ford and i think he made some really strong arguments. this is specialized formula for hospital use only and the condition the plaintiff's claimant causes, n.e.c., also afflicts premature babies who get regular breast milk, not just the ones that use formula plus the regulators approved of it, signed off on the labels to me this feels like a correlation is not causation situation. if you've been following the story closely, you knew that

already. but something new also came it light. abbott makes only about $9 billion per year in revenue from this product when i heard that the obvious question because why don't they get out of this darn business if there's such little reward and large litigation risk? and the answer, abbott believes it has a moral obligation to offer this product even though it would be in abbott's best interests to just throw its hands up and discontinue the product and pay oft plaintiffs they don't want to leave neonatal intensive care units without a resource to help feed premature babies. if abbott ends up multiple losses in court and face anything kind of significant liability they might have to think about pulling the product. but he made it clear he doesn't want to do that because it would cause a public health crisis sometimes these health care lawsuits are morally murky but to me this one seems real clear cut. that's why we are on this litigation front which, again, consumed everybody's mind. not thinking about the company itself but how about the company itself how about the earnings honestly the numbers were

excellent. abbott's now 2 for 2 this year in april they reported a clean quarter and then raised estimates. this morning they set a clean quarter, raised estimates. abbott delivered a 9.3% organic growth excluding the covid business it was going to go over 9% total sales came in ahead of expectations margins were strong it translated tone a four-cent earnings beat off a $1.10 basis. even better abbott raised the low end of its four-year organic growth forecast by a percentage point and boosted their earnings outlook by six cents meanwhile, management's guidance for the current quarter was basically in line. the results were driven by strong results from abbott's core medical devices and diagnostic segments, which were more than enough to offset weakness in the smaller nutrition and established pharmaceuticals divisions. medical devices, which are a huge division, particularly strong, 12.1% organic growth, led by the company's line of continuous glucose monitors, cgms, for people with diabetes this line of 1.6 billion in sales representing 20.4% organic growth year over year.

that's right, 20.4 by the way, abbott recently received approval from two new over-the-counter continuous glucose monitoring systems including for people who are not actually diabetic but might have other health reasons for watching their blood sugar levels more broadly i like that abbott's new products continue to do well, including many that i discussed with ford at the jpmorgan conference earlier this year the first half of 2024 abbott announced ten new growth opportunities including both new products and new indications for existing products coming out of its r&d pipelines. i'd love to see they're building the future of their business internally rather than through acquisitions unfortunately, none of that matters. not one bit of what i just mentioned mattered at all as the stock fell more than 4%, reaching its lowest level since the late 2023. of course that's thereaction t the litigation news i mentioned. my sense is that some investors were surprised to see ford discussing these lawsuits so early in the conference call in his prefrpd remarks and so heavily in his preferred remarks. i actually prefer transparency to the opposite. but it sure didn't seem to help

abbott's stock today as more casual investors who haven't been following this baby formula story all along seem to have gotten a rude awake uppening they were shocked about what they heard but overall i'm in roughly the same place on abbott tonight as i was before the quarter or when i recommended it in the spring for that matter. when you look at the strength in the underlying business versus the weakness in the stock i think you're getting a buying opportunity. the bottom line, i believe abbott's on the right side of the premature infant formula litigation even as i worry a little nat fir r first case is not going to go with them. why is that? because our legal system sometimes feels like lawsuit roulette still i'm confident someday soon the strength of abbott's business will shine through and the stock can start making up for lost time. will i buy it here at this point let's see if they win the case or lose it. if they lose it you may get an even better chance to buy the stock lower because the amount of money involved is not an existential threat for this great american company let's go to jim in florida, please jim. >> caller: jimmy chill a big sunny boo-yah from naples, florida.

>> i like that area. i know exactly what you're talking about. it's pretty terrific what's going on? >> caller: i want to thank you and larry kudlow and all your staff for all your help throughout the years you don't know how much it's meant to me. >> oh, thank you larry's a good old friend. i know he's over at fox. but you know what, that doesn't make me not like him he's my friend and my former partner. >> caller: my question is on walgreens boots alliance it seems like this stock's in deep trouble not only is it trading at a 52-week low but trading at levels we haven't seen in 20 years plus when i look at the assets and liabilities it seems that they're 16 billion in assets and 25 billion in liabilities. do you think tim wentworth can turn this thing around >> if anybody can turn it around he would be the one. but they have to make some sales. they have to raise some capital to make it so people are not worried about their balance sheet. they have to do what bracken darryl did the other day with vf corp sell something raise some capital

take the existential risk off the table. and remember, i think that that can happen but it's got to happen soon. given the strength in abbott's underlying business i think the weakness you're seeing because of the litigation is a buying opportunity. but let's just see how they do in this court case okay wow. much more "mad money" ahead including my exclusive with charles schwab with the td ameritrade combination vrltly complete what's next for the brokerage for the stock that's been down down down? then free trade has come at the cost of many americans i'm breaking down the issue on both sides of the aisle to make sense of this hot-button topic in the upcoming election and of course all your calls rapid-fire in tonight's edition of the "lightning round. so stay with cramer.

morikawa on 18. he is really boxed in here. not a good spot. off the comcast business van. into the vending area. oh, not the fries! where's the ball? anybody see it? oh wait, there it is! back into play and... -oh no, it's in the water. wait a minute. are you kidding me? you got to be kidding me. rolling towards the cup, and it's in the hole! what an impossible shot brought to you by comcast business.

- [narrator] we just shipped our millionth monthly coffee subscription box so we're sending custom thank you gifts to our team. our custom ink rep is just as excited as we are and knows what great quality products to get. celebrate your milestones with custom gear. get started today at customink.com.

once more into the breach, dear friends once more. that was my shakespearean response to the sell-off in charles schwab the big retail brokerage firm. this is a stock i've been recommending ever since it melted down in the spring of last year during the mini banking crisis even though schwab's not a bank. ever since then the stock steadily recovered but there have been repeated moments where it gets crushed for bad reasons and you have to go into henry v mode and buy this thing aggressively. this week it happened again. schwab reported tuesday morning and in response the stock has lost 17% of its value. one seven. over the past three sessions even though the sales and earnings came in better than expected this time the story's more complicated with some nuanced questions about customer cash balance trends and how schwab treats cash for customers that it acts as an adviser for. that's why i want to go straight to the source with walt bettinger. he's the co-chair and ceo of charles schwab corp. to get a better read on what's going on here mr. bettinger, welcome back to "mad money." >> jim, thanks for having me on today. really appreciate it. >> of course

now, first of all, we want to dispel the really bad thing. there are a lot of people who told me ohmy god it's a mini banking crisis again with schwab, they're worried about deposit balances, they're fleeing. just put something in context about last year versus this year, please >> yeah, the situations couldn't be any different the circumstance with our stock decline in the last few days has nothing to do whatsoever with regional banking-related issues of a year plus ago we have put that in the rearview mirror, and i just -- i shake my head i have to admit i've shaken my head and done some double takes multiple times the last few days as i've read some of the articles and seen some of the headlines, jim >> well, i don't blame you there's one that came out this afternoon. at 2:53 p.m. in "barron's. i've read "barron's" since i was a little boy schwab shortchanged clients cash for years, now they're paying for it i have to give you a chance to be able to say -- to refute that

because that's pretty incendiary >> yes, it is. i think where they're coming from is when schwab serves as an investment adviser or a fiduciary to our client and so we're setting the asset allocation for those clients we determine how much money goes into cash. when we do that, we ensure that the client's cash across all of our advisory solutions at schwab goes into a high-yielding money market fund. so i think there's confusion about the difference between when we serve our clients as a fiduciary, in other words, as an investment adviser, and when we're just self-directed in which it's in the hands of the client and they go ahead and do whatever they want to do with the cash among all the various choices we have. money market funds, cds, u.s. treasuries, bank it's completely up to the client when they're self-directed >> now, a lot of this comes under the rubric of cash

sorting. i care about when this rubric doesn't need to be discussed anymore. i know i felt that the previous quarter was the last one we'd have to worry about cash sorting. people taking their cash out to try to get a better return are we done with this topic? is it small enough, de minimis enough it won't come up time because if that's the case this stock's been overly punished >> well, i certainly think it's the case we're not really seeing clients realigning money out of our bank their liquid transactional cash anymore in any volume. i think in the second quarter people may have been disappointed that we were a couple of billion dollars less than they anticipated. but you're talking about a $9.4 trillion base. a record base in assets. and june was a wonderful month to buy into the market a lot of our clients did so their cash went down a little bit more than anticipated because they bought stocks 3 billion divided by 9.4

trillion is a really, really small fraction, jim. >> well, then maybe the problem is the earnings power. these analysts don't seem to know, walt, how to do -- how to model your business. i can't ask you to model it on our show but for instance, in the cowan downgrade, which was a significant downgrade, they kind of said we don't know what the hell they're going to earn and i think that is probably also doing you a disservice. >> well, it is i think -- a million new clients a quarter and bringing in 25 to $30 billion a month that sounds like growth to me, not shrinking. but what i think occurred is we talked about a scenario where we might look at certain times in the interest rate cycle because we get more deposits to our bank than we possibly have in loans

he with might look at shipping some of those deposits off to a third-party bank if it generated more earnings per share for us in other words, when a dollar comes in to us at the bank, we have to put capital behind that. there's a lot of banks who would love us to pass a few of those deposits on to them in return for a very small fee, and then we don't have to put any capital up it's actually earnings accretive. and that's what we talked about in our analyst day on tuesday. i think that got misinterpreted to the shrinking of -- >> it sure did >> -- the bank or debanking and it's just not the case at all. >> i want you to do that i want you to make that money. i do want to ask you, if all these come under the category of, say, i want to use the term misinformation if they come under misinformation, then it's this great opportunity to buy the stock. so why are you or not you taking advantage of the decline and buying stock yourself?

>> well, i did yesterday as the stock fell i jumped in and bought another 25,000 shares. and i've got my eye very closely on the stock to see what it's doing now to make a determine whether to buy more. but i did buy a bunch yesterday. again, i can only shake my head at our rate of growth and some of the things i've read. it doesn't sound to me like they're talking about the company i'm so familiar with >> well, people sell stock for many different reasons they only buy stock for one. which is to make money you're no different. i know you bought during the mini bank crisis it was let's just say -- it ended up making you a lot of money. you can't flip, i know that. which makes it even more of an important reason to note that you bought because you can't flip and you're in it for the long term i know that these stories are overdone but i also know this market has i amind of its own right now, walt and it doesn't want to go up. so let's see what happens. but thank you for coming and explaining what's really going on and let people make their decision fair enough? >> fair enough, jim.

we're just going to keep focusing on serving our clients. that's how you grow. that's what we've done for 50 years. that's not going to change the stock will go up the stock will go down eventually, in the long run, the stock will reflect the way we deliver for our stockholders that's all we can ask for. >> that is all you can ask for that's the way the stock market works. i want to thank walt bettinger, co-chairman and ceo of the charles schwab corporation explaining what are some complicated issues but certainly not nefarious ones, walt they are not nefarious thank you so much. >> no, that's for sure thanks, jim. >> "mad money's" back after the break. we've always been competitive. yeah... one of us always had to be first. first! first! [continue bickering in background] hold on, guys! [car honk]

first. today, we're first together. we love you, mom and dad. thank you so much for making it possible. and now you can finally put yourselves first. vanguard investments and advice. for college, retirement, and all of life's firsts. that's the value of ownership.

>> university of maryland global campus is a school for real life, one that values the successes you've already achieved. earn up to 90 undergraduate credits for relevant experience and get the support you need from your first day to graduation day and beyond. what will your next success be?

- [narrator] we're coming together for our yearly service project to graduation day and beyond. and running a t-shirt fundraiser through custom ink to help the cause. plus, their design services team helped us get a design we love. come together for a cause. get started today at customink.com. okay, team! oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

it is time it's time for the "lightning round" on cramer's "mad money. rapid-fire -- say the name of the stock, buy buy buy, sell sell sell -- play until you hear this sound and then "lightning round" is over are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." start with paige in california paige. >> caller: hey, jim, this is paige. t calling about shark ninja, buy sell or hold >> it's a very good company that could still come down a little bit more because it's got a high price to earnings multiple in light of what i saw with helen of troy which makes similar products i want to see how they're doing. it's up big from when we recommended it let's go with miles in louisiana. miles. >> caller: you initially recommended aranco health. idex labs has slightly better growth and a share buyback program. >> idex labs has to come on the show that would make me feel better

the old regime was a long time ago. i have not spoken to them in a long time. they have to come on the show and i welcome them let's go to robert in washington robert >> caller: ba-ba-boo-yah, mr. cramer i'm a first-time caller, long-time listener from washington state, home of the seahawks >> exactly >> caller: thank you for taking my call. >> okay. >> caller: my question is on ticker rc. ready to tap into a small cap reit that pays a nice juicy dividend >> it does pay a good dividend the problem is we don't know exactly what they own. it's a little too opaque for me. but it will do better with lower interest rates let's go to josh in colorado josh >> caller: hey, jim. thanks for taking my call. >> no problem. >> caller: i'm calling about american superconductor. what do you think? >> i've got to tell you, when i see stocks like nvidia and broadcom go down huge i cannot reach for american superconductor not with these high-quality stocks that are just plain old on sale. let's go to greg in virginia

greg >> caller: hi, jim long-time viewer first-time caller. >> okay. >> caller: owens & minor omi. buy, sell, hold. >> if i want medical device and i want those kind of properties, i will buy abbott labs, which is down huge and is much higher quality company. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: coming up, no finger pointing needed on free trade. but where do workers go from here stick with cramer.

>> no application fee if you apply by august 29th at university of maryland global campus, an accredited university that's transformed adult lives for 75 years. you're not waiting to win, you're ready to succeed again at umgc.edu.

for decades we've followed the gospel of free trade in this country. a gospel that made big money for corporations and gave big cost savings to the consumer. but also soldout millions of blue-collar workers who played by the rules and got crushed anyway but it was a bipartisan sellout, not a democratic sellout as i listen to senator j.d. vance speak about the deindustrialization of america i'm a little surprised not by what he's saying but because he blames globalization on the democrats, specifically joe biden. for the record, both the democrats and the republicans were all aboard the free trade train. both parties figured that the vast majority of americans would benefit from lower prices if we let manufacturers outsource production to countries with cheap labor. sure, the textile workers the steel workers automobile workers and so many other workers got hurt many would see their plants close. but the democrats said more people would benefit than be hurt and the republicans said it's just capitalism at work lower merchandise prices for all

and higher stock prices for big multinational corporations now, let's establish something about the wall street barons that senator vance talks about they've been vilified for as long as they've been around, turned into whipping boys because wall street's made up of people who work for companies and their jobs are to maximize shareholder profits. investment bankers do not work for the people who lost their jobs they're working for companies that laid them off in pursuit of higher stock prices. and look, the people who run publicly traded companies are supposed to work for their shareholders unless the government forbids them from moving their corporations overseas, they're going to do it if it's legal and makes the business more profitable that's the way it works. that's capitalism. you might think that workers have been sacrificed, which is absolutely true. but they weren't sacrificed by wall street. they were sacrificed by generations of politicians from both parties who understood that r this bargain and decided it was worth take some voted for nafta, free trade bonanza that sent many of our manufacturers running to mexico where they could make stuff on the cheap with non-union labor in the name of making less expensive goods to sell at

walmart. in 1980 america had 860,000 people employed in the textile industry now only 168,000 those mills that were shuttered are at the heart of what vance is talking about he's right when he says the towns that lost these jobs suffered greatly when the plants moved overseas but it's a nuanced issue as he knows. because the republican party actively supported free trade until 2016 president george h.w. bush is the one who originally negotiated nafta before it was signed into law by president clinton in 1993. it had broad-based bipartisan support. although generally it was considered more of a republican issue at the time than a democratic one i point this out not to castigate vance at all but to get to the core issue. these free trade agreements were bipartisan acts of human sacrifice and they did in fact bring more net prosperity for both shoppers and shareholders net. however, the so-called collateral damage turned out to be far more terrible than we were promised and looking back the curious lack of concern for communities that lost out is really the fault of the politicians from both parties who blessed these deals without thinking about the

ramifications. neither party did anything to help the victims of deindustrialization, but it was the republicans, not the democrats, who pushed free trade the hardest. at least until eight years ago and both parties should share equally in the blame i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money. i'm jim cramer see you next time. erica's entrepreneurial spirit, and we are still blazing a trail. for those who take their fate into their own hands by working hard... who wants to get naked with the shower toga? narrator: ...by thinking big... simon: zookies cookies are the most delicious treats you have ever had. ...and chasing their dreams. woman: introducing goat yoga. [ goat bleats ] oh, lord. what? narrator: and tonight, alli webb, the founder of the beauty powerhouse the drybar, joins the tank. from being in the hair industry for 20 years, i think there's a good business here. what are your sales? -$40,000 in sales. welcome to "shark tank." we cannot keep products on the shelf. i'm willing to make you an offer. no! -- captions by vitac --