>> 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 save you money and my job is not just to entertain you, but to educate you. so call me at 800-743-cnbc. if china and europe took us down, then why can't they take us right back up?

why does this continue to elude people? why do the talking heads focus on fed tapering or even syria when what matters is the recovery in the two regions of the world that used to produce terrific earnings for so many american companies and that's why the market rallied today. sure, it helped that maybe there will be no war with syria, but wait a second. this was about international. the dow gaining 141 points including many of the international companies in the dow. the nasdaq vaulting 1.2%. nasdaq 100, highest level since november of 2000. ♪ hallelujah let's acknowledge that china and europe are returning, please. why is that so hard? we've had so much fabulous news out of china, excellent stories about target and infrastructure spending. 128 last time and that was like a 10% move. now on top of all of this, a fantastic chinese export number, 7.2% growth versus the 6% people were expecting. just when so many people had

given up on china reaccelerating, and so many others started to believe that see-through buildings are the landmark and hallmark of the chinese economy, we're seeing extraordinary growth spurt. no wonder the fxi has broken out here. stands to reason when you put the economic puzzle pieces together. hardly a day goes by when we don't see some electric number out of europe and maybe a better than expected european pmi. they have to produce better retail sales down the road or how about the little notice and the greek prime minister saying, the most bedraggled country in all of europe may be back in growth mode? he's confident that 2014 will bring the turn after six straight years of recession. spain's been making similar noises. the rebound, it's real. of course, we always have to recall that china and europe are joined at the hip. the chinese export number, no doubt boosted by europe, 25% of chinese exports go to europe. the market's been hideous and it's one of the main reasons china had to look inward for growth. they didn't have the export

markets so they had to build inward. it was less inflationary and more sustainable. it didn't strain the credit system, one of the principal worries, and given that these turns aren't the focus of most investors because they're so focused on the tea leaves of the fed. they are no more being focused on now than when they were first happening in november in 2011. it isn't surprising that they aren't being factored into the calculous of most american stocks right now because they weren't when things started going bad. hey! i think it's a big mistake. why? let me first tell you anecdotally how important this turn in europe is. a couple of years ago we went to the fabled ford plant in dearborn, michigan that makes the best selling truck in history, the f-150. al mulally was there. hey, good news that he's not going to microsoft. i was all bowled up about ford

as we say in the trading desk and thinking they were at 5 bucks a share. the stock was breaking up at 18 and i was thinking improving balance sheet, growing dividend and this could be the stock for the next couple of years. i was dead wrong. dead wrong. ford would be cut in half in ten months because as prescient as the company was about our downturn it was clueless about the european weakness ahead. maybe ford was paying too much attention to rate hikes and they were being put through perhaps by the worst central banker, who as european central bank president was worried about inflation when deflation was knocking at the door. it went from a huge win to a colossal loss, and that's the case now, though. but is ford back above the $18 level where it was when europe started falling apart? hardly, although the stock is closing in on it. my question is why shouldn't ford be able to take out that

$18 level. the problem that ailed the company, europe is now turning and the american market is the strongest it's been in years. or how about etn, sandy cutler who comes on the show was upgraded from hold to buy by morgan stanley. etn has been in the doghouse since it guided in the last quarter. what happens if it turns into a tailwind with a genuine rebound in business? you don't want to overlook asia for eaton. it came before the negative guidance. it, like ford, could be breaking out here. now think about all of the u.s. companies that are levered to china. not that long ago famed short seller jim chanos lowered the boom when david faber asked him about it, he called, chanos called the huge machinery maker a master short and thought it would be one of the best shorts in ages and i don't know if he covered or was long, but the stock did subsequently drop and

a turn in china where caterpillar was dramatically overinventoried could be huge for cat and any better orders out of china will take the worst-performing dow stock higher, 10%, perhaps more. how about cummins, cmi. and cummins is relying on china for the upside. all right. let's talk about the elephant in the room. tomorrow's big launch is all about a new, cheaper iphone. it dovetails nicely the next day with china mobile, a gigantic chinese carrier that has not been a friend of apple's. talk about a reason for these naysayer analysts to upgrade and raise targets and oh, boy, are you ever going to hear that, and maybe you don't recall, the analysts gave the company a real beatdown over a lack of chinese customers. this less expensive phone is the answer to the naysayers for apple. best of all, it could be joy

global. it gave hideous guidance. mike sutherland here today and then you can see the numbers. oh, man, that was awful. and what has joy global done after that miss, as well as multiple downgrades? how about being up a buck? what does that tell you? doesn't that mean the stock has bottomed with the worst quarter and worst guidance? you know what i mean, the orders. the orders were hideous, and to me that smells like a bottom. don't forget, china opens a new coal-fired power plant every ten days. yeah. ten days. you need joy's equipment to get coal out of the ground and the new government in australia and it seems to care about not just about the environment. we all want to care about the environment, but about jobs. that means more business for joy, and i am calling that last quarter a trough quarter and that's why joy is so aggressive in its new buyback. there are so many other implications to get the turning point in china. could that be why fedex doesn't

come in despite the quarters? how about csx? that was breaking out today. there's a possibility to an end for the food and drug companies that endured endless reductions in earnings where the euro is translated into dollars. it could now bounce back. notably, the poorly performing cisco and the seemingly slow going google, and google is a huge business in europe. for china, there's a gigantic potential gain for general motors. general electric does solid there, as does nike. take one look at yum, parent of kfc, stumbled badly again and the number that you got. what happened? the stock flew up because people want to believe the best about china. people were blind to the changes and these two huge markets will miss the federal reserve. whatever setback we may have with the messy economy because of higher rates can be made up by europe and china. it just won't be the same stocks. he can substitute cyclicals for

the homebuilders and the interest rates went down a little bit and go with the multinational banks and the domestic banks and pick the tech over to europe. here's the bottom line. you die by the europe and china sword. you live by the europe and china sword. right now the socialists in europe and the communists in china are bailing out the late-stage capitalists in the united states. it couldn't come at a better time. tom in colorado. tom! >> hey, this is tom. big boo-yah to you from boulder, colorado. >> man, i know. i like peyton. peyton looks good. what's up? >> i saw lululemon was upgraded today and i bought it in the low 80s before the christine day news and then again in the low 60s. my question is do you think the management of this company can get it together and take lulu to the next level? >> i was going back and forth at the open house at realmoney.com that was free this weekend and bob said that lulu was going to break out. i was questioning it because christine day who is the person who runs it is not going to be running it anymore. they have some momentum there.

they do report this week. that makes it five below is my pick of the week, not lulu, but i think -- look, the stock is signalling that the quarter is better and that may be a false tell. i am not going to get behind lulu until i see how the ceo transition takes place. i'm sorry. i'm sure i'll miss a couple of points here. how about pierce in texas, pierce? >> thanks for the investments. >> of course. >> the stock's up a lot in the past year. and it's at a 52-week high. what do you think? >> i think it goes much higher. i think it's one of those stocks that's in the sweet spot. it reminds me what we thought about radiant and genworth. remember what ocwen spells backward. it stands for newco. a palindrome. >> jimbo, a happy boo-yah to you, my friend.

>> next time we talk, we'll either be 1-0 or 0-1. what's up? >> it's only a matter of hours. hey, listen. thanks for taking my call. i want to ask you about prudential. prudential and other life insurers come up as interest rates go up and i've liked prudential for a while, and there's also the only life insurer that challenged being systemically, and i was wondering what your thoughts are on the whole for buying it, holding it, and the risk associated with it. >> why do i not want to buy it? because my charitable trust thinks that aig, stephanie link and i go back and forth with this. we think that aig has got catalysts. it does not have catalyst, but i wouldn't sell it if i owned it. live by the sword, die by the sword and then live by the sword again. i'm talking about china and europe, and we're getting help from our pals overseas. can you believe it? they've been such negatives. they're now positives. it couldn't have come at a better time. mad money will be right back.

>> coming up, the right medicine? the cancer-fighting biotech firm seattle genetics is tearing up the market, surging over 90% this year. can this pipeline of therapies keep the bears at bay? cramer is sitting down with the ceo to give this stock a check-up. and later, a cut above? despite tough times for retail the company behind calvin, tommy and more has been bucking trends and strutting down the the wall street catwalk. can the stock keep lining your portfolio with profits or is a markdown looming? don't miss cramer's earnings exclusive with the ceo of pvh. plus, rising star? born in beverly hills, city national bank is expanding to serve clients from coast to coast. its 30% rise has investors saying hooray for hollywood, but could rising rates pull the red carpet from under it?

don't miss cramer's exclusive, all coming up on "mad money." don't 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 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

what made new highs today? seattle genetics. the 5.5 billion biotech. you know i've been a big fan of this entire space. the company uses antibody-based technology to search and destroy cancer cells without causing collateral damage to healthy tissue that's nearby. it's a big step up from chemotherapy which is the medical equivalent of that apocryphal vietnam story about destroying the village in order to save it. sgen is everything we like in a biotech. the company's main product was approved for hodgkins lymphoma two years ago.

it has 20 other clinical trials going, studying this drug on various different forms of cancer. four of these trials are in phase three and that includes a fast track study for t-cell lymphoma. that's not even the companies with big pharma players that could bring in billions of dollars in milestone payments that could be one or two a year. sgen has given us an 88% gain since we spoke to the company's ceo just last december. i think it has more room to run so let's check in with dr. clay segal. he's the chairman, president and ceo of seattle genetics, and find out more about where his company is headed. welcome back to "mad money." >> nice to be here, jim. >> have a seat. thank you so much. i've been thinking about this drug and all of the different applications. it seems like it is a pipeline in itself. >> yeah. as you said, we have over clinical trials along with etceteris, four phase threes,

and different disease settings and frontline therapy. so when you're first diagnosed. our approval is hodgkins lymphoma and in the relapsed settings and we're redefining what patients get in the front line. >> in the conference call you did mention some of the doctors are trying to use it off label. is this because it's saving more lives than what they're currently using? >> it's not an incremental cancer drug that gives you a little bit. this is something that safes lives and it is something that benefits a lot of patients. we're excited about it. >> explain the difference between current therapy and your therapy and the first line and why you should be first line. >> you mentioned t-cell lymphoma. it is treated about four drug cocktails, c.h.o.p. as it's called, and it gives you a 45% complete remission rate in t-cell lymphoma patients. we did a lead-in trial to our front line phase three trial and we showed that if you did

etceteris plus chp, we got rid of neurotoxicity and we have an 88% cra, almost double so then we went to regulators and u.s. and europe and japan and we're doing an international study, 300 patients and 150 with c.h.o.p. and 150 with chp adcetris and we redefine therapy by making it less toxic and more effective. >> would that be something that we find results then? >> not for this specific trial. that will take longer. we submitted quite a few abstracts to the ash meeting in december and we'll have to see what gets picked up. >> you mentioned the submissions aren't even here yet. they are due soon to ash, and who are they to accept or not accept? >> well, ash gets loads of submissions. they can't accept everything that comes their way. they have to pick and choose, but we usually submit quite a few to ash and they have committees that accept them or not. they were due in august so we

did our submissions already. >> a lot of biotech companies have been coming public and a lot of them are raising cash. while some analysts think you to raise cash, it's really your discretion with these partnerships. >> yeah. the partnerships have been great. our main business is to develop drugs to treat patients that have life-threatening diseases and have cancer, but we have another part of the business and that's working with our technology and other companies and we are thrilled that we have 12 partners. we do about one to two partnerships per year and it puts our technology in their hand and that brings in substantial up-front money and royalties. >> let's say for the t-cell lymphoma. it would be 10 billion dollar market and you're keeping american rights and letting rights go to others?

>> with our technology partnerships those are where the other company uses their own antibody and we use our technology and we have global rights and that's the technology. with adcetris we did a partnership with takeda and we own u.s. and canada and we have sales reps selling the product and we approved it now in over 35 countries, the millennium group from takeda sells it internationally and we get milestone payments and royalties. >> sg75, phase one clinical trial of renal cell carcinoma. when i see phase one, it basically means three years before you see any results on this? >> sometimes it's quicker than that. we have seven products that we are developing in clinical trials and the first was for aml, acute myeloma leukemia. we have a new one that just started in phase one that we've been working on for years, jim. >> one of the things, some of the analysts -- a lot of people feel that literally that the cycle, that everything's gotten

overheated, and i get that, but regeneron and celgene, you guys have been delivering, and i didn't really understand this, frankly. included in the quarterly update we heard was that the fda will not consider label expansion for adcetres to include a retreatment claim at this time. it sounds like that's not necessarily the case. >> what happened is we went to the fda with two data sets, one looking at getting rid of the 16-cycle maximum, which was a really critical one from a commercial standpoint, and from putting this in the hands of the doctors to make decisions for their patients and then the other one we asked for was retreatment and we got the removal of the 16-cycle cap which was actually much more important of the two. >> okay. because it made it sound like the more important one was retreatment and if the stock keeps going higher and higher and i have to find something bad to say, because they've been overrun by the goodness of your products. that's what i think happened. that's dr. clay segal, chairman,

president and ceo of seattle genetics, one of the biggest winners. they have one of the most amazing drugs currently on the market today. stay with cramer.

we've been pointing out a major retail theme. the consumers in america seem to be holding back on apparel and maybe spending more on hard goods, and that doesn't seem that all of the apparel stocks are hard. consider pvh, the company behind pvh and tommy hilfiger, and pvh is a major explosion in europe and something that could become a powerful positive and a tailwind and not a headwind once the european economy is starting to roll. the company delivered two-cent earnings beat off of the $1.37 basis and although the guidance was downbeat versus what some of the analysts had hoped for. as of today the stock is up 19%

since we spoke to the ceo and that was just back on june 12th. let's check in with the fabulous and bankable chairman to learn more about the quarter and what's next for his company. manny, welcome back, to "mad money." thank you, great to see you. i have to admit, i'm confused because on the one hand, this is a fabulous quarter. our results from the quarter is from the release were driven from the newly acquired business and the organic growth in tommy hilfiger. at the same time you then immediately say, look, don't get too excited. which is it? because i'm excited and then we tell you not to be. our performance was strong, but as they're looking out into the third quarter of this year, we're really seeing a tremendous amount of volatility with the consumer around the world. we can't seem to really get the consistency from the sales trend point of view. traffic at stores and what we see walking through our doors, so we're just not as bullish as we've been in the past coming into the quarter and i think now

is an appropriate time to just be somewhat -- have some caution as we think about the consumer and where we're heading with it. >> i think it's interesting because last year at this time you came on and a lot of people were saying the back to school is not that good and you basically said i don't know what they're seeing, but we're seeing strength. this year, a lot of my friends in apparel have been saying it's been tough. you seem to join them saying it's been tough. >> i would have to say it's tougher than we would have hoped. calvin klein and the tommy hilfiger business in north america, comp trends are up 3% off of being up 6% or 7% in the second quarter and i -- you know, we're just trying to understand better the sense of where the consumer is because when you look at the data, you would expect to see it somewhat more robust, and right now the apparel area seems to be a little soft. >> do you think this hard good reasoning that i've been using and i see the best buys doing well and i see some amazon stuff doing well and hard goods and autos doing well and they're just spending at different places.

>> i wish i had a crystal ball. it's really very tough because we came out of july, july was a weak month. >> right. >> we came into august and we had a very strong month of august and the first ten days of september have been a little softer again, and just trying to gain that consistency. so, you know, i'm more bullish about the fourth quarter considering some of the things we're up against and it was a softer quarter for us and last year we had to deal with sandy and a number of issues and the third quarter, we put up big increases in last year's third quarter and we're looking to put gains on top of that and right now we're on track, but not to get ahead of ourselves to say we'll outperform. >> we've been saying that we think europe is turning but it sounds like the companies that have been difficult in europe for you remain difficult. >> southern europe continues to be a challenge for us and we're looking at trends in northern europe that are pretty good, and

the numbers are 5%, 6% and southern europe, particularly italy and spain which are big markets for us, we're seeing a pullback in business and it's driven by two things, the reduction and open to buy dollars by the wholesale accounts and the inability to sell some of the smaller specialty stores throughout southern europe that were just concerned about the credit situation. so we really have to be mindful as we go into those markets and italy is a very tough market for us right now. >> okay. now let's go back to the united states. you mentioned credit. at one point someone might have been concerned that jc penney, which had been a big, big customer, but it looks like coleman is starting to get that thing better. >> reading between the lines and i don't have visibility, as they've started to see in product categories getting more inventory on the floor to really start to sell the goods and put their sales philosophy back into effect and getting more promotional and delivering value to the consumer, i think they're starting to see some good

performance there, so we're very supportive of that and we think particularly for the fourth quarter, i think you could see some positive results there. >> putting the johnson stake in europe behind them. >> yes. and the inventory positioning there and taking the strategic positions and they were well thought out and some of the tactical ways to get there just weren't enough there to support the business. so i think mike has really brought that to the table and hopefully we could see a strong second half. >> people want them to win, don't they? i get the sense they want to give him the chance. >> he's a veteran in retail and some people felt the way he was treated was unfair and the way the company was treated is unfair and it's a great american retailer and it really belongs on the landscape in america. >> i'm glad to hear you say that. now, i saw a phrase in your release that bothered me. this is the one on calvin klein. we believe the investments we make today are, quote, necessary to rebuild this newly acquired business. it it does seem like that they

just -- that calvin klein was poorly handled. >> the calvin klein jeans has been a real tough business for us both in north america and in europe and those are areas that are really going require investments to get them back to their historical position in the market, and i think we feel very strongly about that from our long-term point of view and read that as 12 to 24 months, but in the short term, margin pressure, moving through goods and repositioning the line here in america, cleaning up the distribution to some of the accounts that's just not appropriate for it to be sold into here and in europe is a challenge for us. >> it seems like the other part, the legacy stuff, i don't know. maybe it's doing better because your heritage brand seemed to really benefit from a couple of brands that i thought were dead that you got from warnaco. >> speedo business, that is the

warners business with a number of key retailers in north america. that continues to be good and our own wholesale heritage businesses, van heusen and izod in particular are very, very strong, and the wholesale operating margins are over 12% and that, for us, is a strong performance. >> we heard from terry lundgren. he wasn't that happy with how apparel had done but he did say back to school was getting better. do you think there's a shift among the department stores and maybe jc penney making a comeback? when you look at all of your customers, someone is not doing as well as others or is it just really everybody is a little flat. >> there's always winners and losers, but i think i would interpret it more that it's a general malaise in the apparel sector for the last couple of months, and i'm not specifically pointing to any one channel or customer. i think we're just not seeing the strongest traffic that we'd like to see, and i think as we get further into back to school and clearly in the holidays

selling season i think the consumer will respond, and right now we are still struggling with some of that, and it's just not as robust as we'd like it to see. i wouldn't describe it as bad, i'd just say to you that i've been on here other times and i'm usually pretty transparent and i talked about the strength in the business and the underlying strength with the consumer and what i'm saying to you is i'm just not seeing that kind of strength globally. it's not just a north america issue and it's really a global issue. it's more in that single digit kind of growth and we just don't see the strength that we've seen. >> all right. candid look at apparel. as always, you're straightforward with us. chairman of pvh and let's not lose sight of the fact that it was a great quarter. that does matter. >> thank you, jim.

it is time -- it is time for the lightning round, buy, buy, buy, sell, sell, sell. play until we hear this sound, and the lightning round is over,

are you ready, skee-daddy? we'll start with roy in oklahoma. >> i'll start with a big boo-yah. >> boo-yah. >> i'm tired of making friends and ready to make some money. i'm riding the roller coaster, avnr, i want you to tell me about it. >> i don't regard it as a roller coaster and it's a great spec biotech. we'll have to start taking profits in the biotechs and they're getting a little hot. right now they're still okay. andrew in maryland. andrew! >> a big boo-yah from baltimore, maryland and thank you. you have the best show on tv. >> thank you, raven, still world champs, come on. go ahead. >> what do you think of fortress investment group. >> i have to admit that the assets are starting to come to the fore and i've been negative about fortress and they're getting their act together and i'll start thinking that it's a decent buy. maybe west has to come off that wall of negativity.

let's go to kaizad in mississippi. >> this is kaizad from ocean springs, mississippi. >> wow! >> what's your take on hci group, buy, sell or -- >> i like the homeowners insurance business. typically, i also like travelers, but i think you've got a winner here and you have to be careful of the insurers because a lot of people think that they're late ing the cycle, but i like them because they're inexpensive on book value. let's go to scott in ohio. scott! >> this is an unstoppable boo-yah from toledo, ohio. >> what's up? >> i have a question for you about p.r.i., primerica, love your stock, but i want to get your stock. >> it's a good company. what am i going to tell you? i think that here's the problem with primerica. it is middle income and i like that group now.

i just like it. it's not ameriprise, which i really like. let's go to chris in new york. chris! >> hey, jim, i have a question about davita. >> i'm worried about davita because it has reimbursement issues and i would like to have them on the show to clarify what the real story is because i don't know what the problems are. i need to know more. let's go to jim in pennsylvania. jim? >> boo-yah, jim, this is jimmy from the lehigh valley, allentown. what the heck is going on with m.e.s.? >> this has to do with just -- people think there's a lot of drilling on going in the country. you need to see more fracking for nat gas. this is a play for nat gas drilling and other than where you are, where cabot oil and gas and this is 25 miles northeast of you, you just don't have a lot of drilling and i looked at the baker hughes count and it wasn't that good, and i have to tell you that's why the stock hasn't run and it is a big disappointment.

welcome back, if you got something to say. gary in arizona, gary! >> jim, thanks for taking my call. we really like your show out here. hey, keeping your pigs and hogs metaphor in mind i bought restor pharmaceuticals around $6. shall i sell or buy? >> that was the early stage biotech, please. please. sell half and play with the rest of the money because i've got to tell you, that is as speculative as it gets, and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by t.d ameritrade.

what are we supposed to do with the banks here? on the one hand, banking is one of the few businesses that benefits directly from higher long-term interest rates. on the other hand, those rates get too high, it can crush the demand for loans, something that we're now seeing at least about home mortgages, so maybe we want a bank that doesn't want that much of residential real estate exposure. take city national, cyn, it's a boutique business bank, based in los angeles. substantial wealth management division that caters to high

rollers. its most recent quarter was terrific. it was coming in substantially better than expected and not many did that. the stock has rallied over 36% since we last spoke to the ceo in december. let's talk to russell goldsmith, the president and ceo of city national corp so we can learn more about what's happening here and what his company's prospects are. mr. goldsmith, welcome back to "mad money." congratulations with the big run because the other banks have been stalled. >> your bank is seeing that loan growth. your bank is starting to get people who want loans. >> absolutely. cni growth, growth across the whole platform and we have a range of businesses and i'm happy to say as you pointed out in the last quarter, part of it is our existing client base and utilization is up a bit and we're attracting new clients, which is is exciting. >> no other bankers talk about it. once rates start going up, you use the word, people smell that

and they want to go to work. >> i think that's true. we're actually seeing people stepping up on housing. we do have a pretty substantial mortgage portfolio, about $4 billion for a private bank client and when people see rates are starting to move up, uh-oh, i better get in. >> your clientele is such that they're not going to be crowded out. they just have to step up and pay for the $3 million house, they can't wait. >> that's true, but also, and you know this, rates are still at incredibly low mortgage levels and interest rate levels. >> yeah, but you talked about housing being up 37% in california. 2.9% monthly inventory? it must be hard to find a house in california. >> surprisingly, it is. surprisingly, you haven't seen the sellers come forward. you'd think that you'd see more homes on the market, but we're not seeing that. >> but also the homes that are foreclosed are not the ones customers -- and that's what i think is held up. >> yeah.

>> one thing i thought was most interesting is trying to relate who your customers are and talk about how you are getting the bankers technologically oriented and they're getting to have billions and the people who are facebook like customers, just newly millionaires. >> we, over the years in california picked up a lot of tech-oriented people and companies, but we really haven't been a lender. about a year ago we decided we have to step that up. we focus on key industries like entertainment and real estate. so in tech, we have a team in palo alto, boston and here in new york, and they are focused on lending into middle stage, venture-backed companies and we should be there and it ties in as you say to the private bank. >> when the companies come public, you manage the income that that these people have.

>> we even have some warrants. >> you've done that? >> occasionally. >> rochedale, this was obviously something that boosted dramatically the number of assets that we had under management. >> we picked up $5 billion. today is the day, your show marks the day that we officially merged city national with rockdale, so together it's a $20 billion asset management business. >> when i saw that number i was thinking, that's extraordinary. what were you five years ago? >> oh, probably half that. >> did you keep any of the rockdale analysts? >> that's a different squad. >> right? >> it's confusing and that company blew up, but it had nothing to do with rockdale investments. >> you only took the assets. >> they were two totally different companies, but with the same common name. >> when we talk about what the fed wants to do, taper, not taper. in the real world, does this have any -- is this just us in the media talking? >> you've seen this. the ten-year is up over 100 basis points since the talk got

real and we'll see it happen and we'll see short-term rates out there and they've got to get off the intensive antibiotics. >> if we got rid of taper and it could be a good stock market because then we'd have longer constructions. >> we don't need these extraordinary measures and the fed can get through this unbelievably exceeding floor. we've been in new york as you know, the bank in new york is a $3 billion bank and we said it's time to bring in our high end retail.

and the other part that's cool is what with i have is 2.0, there's no tellers, no counters and it has private banking and weight management and it is different from all of the other banks you will see in manhattan. >> in other words, i make an appointment when i go? >> go right in, someone will come out and rip open their microsoft surface and bring the tablet over to you and you want online banking, sir, we'll show you this little video on the tablet, because people are changing how they use branches and we've gone up and hired the guys who designed the apple stores to help us. >> you did? >> same architecture firm, so we have a branch that's in tune with where new yorkers want to go. >> one last question. are there other cities that this can work in? >> we are opening three offices in the bay area and two in manhattan. that will be done by the end of the year. >> you've delivered and delivered and delivered. you're the highest quality

bank, and independent of the problems that hobbled. >> you've made a good call for your listeners. >> you've always delivered for everybody. that's russell goldsmith, the president and ceo of city national corp. if you don't want to hear the craziness, they're just making money. stay with cramer.

>> one word, optical. okay. it's not exactly like "the graduate" and the dustin hoffman movie which told one word, the future is plastics, but if you want to invest in the hottest area of tech it has to be telco equipment. specifically anything related to delivering higher performance video through your cell phone. optical. this is confusing because of cisco's most recent quarter which was a record, but it contained almost nothing about telco equipment spending that was positive. in fact, that quarter did more to obfuscate the unfolding positive story here than it did anything else because it kept sienna and finesar and how good could it be for those also rans when it's bad for cisco, at least that's what investors presumed. in fact, i think it's fairly obvious that cisco had an amazing quarter and they just can't admit it because they're in the process of laying off 4,000 people.

can john chambers declare a new age and ask, forgive us while we axe 4,000 workers. unfortunately, that means you won't know anything is good happening here until you see the current cisco quarter which is ages away. the new alcatel lucent will get much better. new cpo and they'll be in shape to translate the orders into profits and i think alcatel will get far more than its fair share of european orders. do not the vodafone will be flush with cash to build out whatever it needs verizon cash. this might be one of the most exciting speculations in the world right now. i love how people tell me that i've missed alcatel lucent @jimcramer because the stock was at two bucks and i didn't recommend it. so i missed the two to three rally, and that's the same catcalling i heard when i said nokia was too cheap to go at 4. where was i when it was at three, of course, if you listen to critics you'll miss the move to $5.52. i think it's still cheap but how about the test of measurement of

optical fibers, something you need if you want to build out that infrastructure and admittedly cats and dog company and it could be more than they're selling for. the company doesn't walk through until september 30th. hey, there's been a little juniper since the ciscos, but juniper has colds. we know from sienna that business is very strong. however it has a humongous move, and i think it has to pull become. when i spoke to moshe gabrielev, and the first two have rich foreign backers and the last is furiously trying to catch up with verizon wireless and quality. don't forget how much vodafone has to order from xilinx, this

is historically strong and it could be explosive. soon they all will, but it's not too late to buy any of them in order to play this next generation telco spending, the one that is delayed for years and years that is now at last upon us. stick with cramer.

>> two faves. five below. palo alto. both are better than expected. i'm jim cramer and i will see you tomorrow! [ helicopter blades whirring ] [ sea gulls squawking ] [ indistinct shouting ]