ur time has expired. thanks for watching. i'm melissa lee. check out the web site and also of course, check out our daily segment "inside fast money." see you back here next friday at 5:30. 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 right now. welcome to "mad money" and i'm trying to savia a little money. my job is to save you money and educate you. so call me or tweet me at jim cramer. if you didn't know any better you might think the federal reserve should be cutting rates

instead of raising them. the data for every industry i follow is coming up short but that time same it's become a matter of when and not if which is exactly why the dow tumbled today. and nasdaq climbed. with our country's exports being severely crimped by some but our early read from everything today, to declieng consumer confidence suggests a startling decline in commerce in the last five weeks. ia don't raise interest rates into oo faultering economy, heck, you don't even talk about ait. and it's almost like when former central bank president put in all clear through and then added two rate hikes to boot pushing the continent into a tail spin

that they're still trying to recover from. so, why not take all the stocks and sell them? second, there are positives happening outside of our kunlry that could reverse our export deficiency, which brings me to the game plan for next week because the european tragedy will be played out again. and our stock market could rocket higher because the greek deal, it could lead to a much stronger euro, weaker dollar. and i have been saying for ages a rate hike without a greek resilation would send the dollar soaring and get an analyst number cuts for the big companies. over 80% of the time negative with an average loss of 1.6%.

the dow is chalk will of oriental stocks. so the ugly history of june could repeat itself. what esis on tap? monday we might learn of a deal in the health care space. remember, i repeatedly told you there could be consol dagds in the hmo space and hume ana could be the target. today, they admitted the possibility of a deal and that's why they sky rocket more than 20% in this one session. i think where there's friday smoke, there could be monday fire. and a pretty positive read from ceo when he came on the show to talk about the last quarter. i'm concerned because it has such huge overseas exposure.

market's okay. retail has been so hit or miss. it's unnerving. yk think we'll get a positive read from the future when we hear from dollar general. now, there's a problem when they report this darn west coast port slow down hurt them. and as we learn from dollar tree earlier. and i think the head line number is back and maybe the out look will be good and that's where the opportunity comes in. eme be an actual drive. med tronnic is going to tell you how well its merger with cuvidian is working. this could show how powerful that combination could be. i bet we get a nice surprise when med tronnic reports.

we're big believes from all types of devices today. and while the maker of jack daniels has his detractors from wall street, bourbon is hot and brown-foreman has been capitalizing. and fire lie holds a meeting on wednesday. and you might want to own some going into the meeting. we're in an uncertain market. i've been stressing that with my cautionary tone for weeks now and now more than ever you need powerful themes. at this point, no theme more potent than cyber security and its forensic team being brought in to deal with the big intrusions. and they have gotten the federal government's seal of approval. that want legal immunity from

cyber crime. and you might want to hear what the smuker's has to say. they have been among the best performers in the group and they can even work in a higher interest rate economy. interesting tragd so to speak. stock has been levitating. and varphonal also reports thursday. and i'm talking about apple pay, e bay's pay pal. and it was initially misnootd and it hurt the stock. so i'm betting that sequence could happen again. if it gets hit, we'll take a closer look to see if a big opportunity is once again upon us as it was last time. and talk about an area that's really heated up lately. have you seen this stock.

i like cisco the best because it's the cheapest and safest. but i have to think it might bow too hot, maybe be careful go nothing to the quarter. and don't mean to bury the lead but we get the labor department nonfarm payroll rr report and yom rr i'm more fearful of this number than i have been in ages. employment's been the loan bright spot getting stronger a big number with lots of jobs created gives the feds the amo it needs to put through an imminent rate increase. and like i said it would be okay in the future instantly it would be bad for stocks. i think the market could go lower with more job creation and thats are because we'd fight the

fed and that's always a wrong bed. and that could spur a decline in the dollar to boot and then we get a rally. that's an awful lot on the line for one stat but we know from history that this employment number trumps virtually all other impts. and sometimes you need to see that wild card before you do any buy. remember, this is the quintessential big bad event and we could be down in the stock market, ahead of the jobs report given the steaks. so if it's all weeks you can expect a terrific rally to insue. weaker data strummed by a needs all need for a rate hike from the fed. and as the risk reward is diminishing for the bulls without a changing tone from the fed, they have to change.

and if we get a job announcement on friday expect the entire market to get malled. joe. >> caller: calling from long view texas. >> now, there is a city of hope. what's going on? >> caller: i've got some goals and with grease about to blow up i'm thinking of doubling down. >> i like owning gold as an insurance policy. gold has not been a good thing but i like your idea of owning gold sk i share with you that that is a good place to be for a portion of your port groel. but i've been saying that for 10 years now and now it's just insurance. john sflrl john. >> caller: thank you for taking my call. start out with a big chicago blackhawks booya.

i bought a speech recognition software for my computer by nuance technologies liked it so much i bod the stock in 2012 it went down. i bought another chunk and i'm almost back to even p. and they're looking that automarket and next generation tv and i thought i'd get your sense on a go forward. >> it's not my favorite. you know i like the sky work and the kwarvo and nxp, i like them all more than nuance frankly. i am advising caution. weal wrr get through it no matter what comes our way. and the u.s. is spending less on our military and should you withdraw from the defense

stocks? you don't want to mismy take believe me. and is it the right time to book a ticket? i'm checking in on some of the best names in the group. and there are a whole lot of cooks in the kitchen but should you join the burger war? stick with cramer. >> don't misa second of "mad money," follow jim cramer on twitter. send him an email to cnbc.com or give him a call at 1-800-743-cnb you probably know xerox as the company that's all about printing. but did

you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

. it's time to address one of the great ironies of this great moment in history. we know that the united states has made a conscious decision to not be the world's police. and cuts have yet to be fully

rolled back you have to acknowledge that this is now the new normal. we're now no longer team america world police. so seeing as the u.s. is scaling back on its adventurism. and obama has put our allies on notice around the globe that they need to start fending for themselves and hand in hand with the administration's doctrine that military can't fix all world's problems. in short, they may not be the world's policeman but they be happy to be the new world's arms dealer and that presents a huge opportunity for the major arrow space and defense contractors. they can now send defense hardware to vast places over sea

president. and which defense stocks should you buy in order to capitalize on this burjening arms trade? if you look at foreign military sales facilitated by our government, it was hovering around the 10 to 15 billion dollar range but amp said in 2006 and haven't looked back since. and there was a massive over hall of the rules that govern military exports. and last that last year. then in 2014 the u.s. helped facilitate the sale of 22.2 billion dollars in defense. that included real ticket items like look heed martin sold and

singapore spent and the 2 billion saudi arabia used upgrading its planes p splanes. and then the repercussions of the negeshiations with iran. and not a political show but the reality is it's making iran's neighbors very nervous, including the u.s. allies. and they're approving the sale of even more military equipment. and there's a summit at camp david where he discussed with with saudi arabia and the uae and right after this meeting the white house issued a joint statement where thai talked about planning to improve security cooperation especially on fast tracking arms transfers p . it didn't take long for our government to start rapidly

approving these arm sales. a week ago, the staimntblessed the state to sell arm said p. and this is an upgrade in the navy. lately we've been hearing a lot of chatter that this business might be put up for sale. so, we put it all together. who are the biggest winners here? what kind of equipment will our allies want the most? given russia's new found belidgeerance and a deal with iran, the leading player is rath raytheon. and a country terrifyied of russia and in december they nailed down a 2.4 billion dollar

contract with cutar. lock hood martin is a major player. next up our allies overseas they need aircraft including planes and helicopters. right now the most sought after military plane is the lockheed martin f 16. and of course when we're talking planes we can't leave out boeing although that stock has been punished lately. the weak yureuro has give an boost to air bus, their competitor. and okay pap. how aabout helicopter? i like i said you tks rheumered to be putting it in the block

and that could unlock a lot of value. i wouldn't recommend them as a defense play. so, we have to look to lockheed or boeing. and how about grundound vehicles? company dynamics makes the most. the truth is many of the biggest airspace and defense names and many of them setting new highs pretty much regularly, however, there are some key names that are pulled back a bit. boeing is down nearly 20% from its peek. and you know i like to buy these stocks on a pull back. we're getting that pull back. put that together with our government's foreign policy and i think raytheon may be one to buy. and a solid 2.6% yield.

i like this lockheed martin aflrth inexpensive stock. and they should get a boost as it's likely to be declared combat ready by the summer. that's juicy. here's the bottom line the united states may be stepping back as military policen am but to do that we have to provide more military hardware to our allies so they can defend themselves. and this group, until the last few weeks has been rimpant, it's still cheap though. and there's much more "mad money" ahead, including my view on the recent turbulence in the airlines. have they come up enough for you to change your take and it's the most comprehensive guide on this group.

everything from shake shack to red robin. i burn the midnight oil in a few underthe radar biotechs and you don't want to miss what i dis covered.

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♪ on a nasty day for the market we need to talk irrationality. normally one of the most prosayic groups in the market has started to trend in a -- and the fundamentsal of of the evaliations. that's right. hamburgers. if you look at this cohort right now, the trading patterns and annoying winners or losers is einf to make your head spin. and not everything makes sense

in a given market it's not that you can't comprehend things it's that things are incomp rehenceable. there are a whole host of simp symptoms. the lack of respect for high quality names like jack in the box and winners out of nowhere like red robin. let's start with these burger ipos. namely the shake shack and that habit burger. that's habt. and i listen to the lightning round. shake more than doubled on the first day and now trading at $82. shack is a crazy story. it would actually be lower if the shirts would just back off because the supply of shares has become so limited.

and they v professed such a love that they don't want to sell. and the same as people who like tesla, so much they bought the stock. and to understand what's happening in shake sharks we need to go to another burger chain,go gourmet. the quarter left us kw asking who are those guys? just like bush cassidy and the sun dance kid. many people were betting against red robin because it's been a second rate outfit but red robin doesn't have any locations in manhattan. it's not wheriae iayou go to eat when you're a money analyst. the snaub factor. and they so often misout on

opportunities in the heart land because they have no clue of their existence. they haven't been to one and when they saw the terrific results in one quarter, they had visions of it going from regional to national dancing in they are heads. a red robin gourmet on every corner. and that brings me to shack. they may have been expesnseive from the get go and while they don't have many locations akrauz the country, they have several in manhattan. these money managers are more afraid of missing -- oh, wait. the i find the risk reward astounding. and the evaluations and hear i'm also talking about the habit restaurants. and california chain became public in november.

that might be unfair given that shack and habit barely have any earnings to begin with. so what about how the stock markets value each store? judging by the stock price a single red robin gourmet is 2.2 million and jack in the box is 2.1 but arguably the most consistent game in the group. and burger king evaluated at 3500 per store. and in shorkts your typical burg chain location anywhere from a half a million bucks to 2.5 million. and habit has 114 locations. average value of a store, $8,000,000. questionable. shake shack has just 56 and

according to stock market more than $40,000,000. wow, that's down right clinically insane. and it only makes sense when portfolio managers eat the burgers and then refuse to sell the stock or keep gaubling the burgers and the stock. and they're based on little more than speculation when you compare it to the other companies in the industry. and these ipos only scratch at the surface. don't get me wrong, i was impressed on wednesday when the new ceo passively admitted that their biggerers taste terrible saying they're more committed to tastier food more across the menu, with the implication that food is not that tasty. we heard about toasted bunz and

changess in the grilling process and it may be more significant than most people think. why? because admitting it tasted terrible was at the root of the big turn round at dominos a few years ago. they admitted it tasted like cardboard and once they fixed it stocks went flying 10 fold. maybe mcdonald's has to do the same thing, although i'd say the burgers are more like rubber tires than cardboard. if they're going to win back disenfranchised defectyies, we don't need to have gordon ram zooe creating new tasting, we just want a juicier burger. mcdonald's may be in an awful shape as a burger chain but 3.5%

verses bonds and a potential to go back to the future. i wouldn't write this off after dominos. what a huge increase after dominos owned up. finally, there's jack in the box, the most unappreciated in there. the chooeps out there. no one seems to care anymore. and jack reported an across the board terrific quarter but stock sold at 6% the next day and it's gone out of favor with the rest of the restaurant group, still i like jack and i know jack. if you told me six months ago they would become the most emotionally kim zkal group in the market the joke is on who is trying to apply traditional techniques to the industry. you want jack you want a potential turn round, buy mcdonald's, you want a great

burger, i say buy a great burger from shack and maybe you're not getting a bargain but just a dream. and should you hop aboard now or is there more trouble ahead and i promise to go tlooi as many stocks as humanely possible. don't miswhat i find when i found some inthe radar bioscopes under the microscope. stick with cramer.

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after today's rally in the airlines you may be getting the perfect fancchance to do a little trimming in the strength. and until today, this group has been in free falloff late. and if even if the cohort is capable of the occasional balance. can you recall a group that was able to recover from sustained free fall in ages? any sector that was able to

bounce back from a real hammering and come out on the other side as good as new? sure you could say the biotechs have but most are well below their highs from when they started crashing down. some of the cloud stocks have worked their way back but they too haven't got anywhere where they were a few months ago. now, those two groups were slammed by excessive siply. too much supply of stocks because many ipos with inferior. and a lasting come back in the airlines is difficult to imagine because the sale is compared to budding supply of airline capacity. the shrinking price multiples. let's take the case of southwest airlines. which is the best and most profitable operater in the group.

when i spoke to coe kelly, he was capable of more capacity. and it takes more to tango, not just southwest. and gary said that may was kmag tad softer than he would like. that tells me that the consensus earnings estimate in the year may turn out to be too high. i hate buying stocks with number cuts that are clearly right ahead. i'm afraid this is the case. where you might say a southwest stock is too expensive, how about american airlines with a price earnings ratio of 4. let me tell you, that's a huge red flag. every time yvier seen one that low, it's a sign the future earnings are about to be slashed, maybe dramatically. i don't think this is the case of beth lm steal who seemed to

be selling 4 if i ams before they ultimately filed for bankruptcy. and my best decision was to short busy. meaning the estimates were totally wrong. they were. beth lm ended up trenched in red ink the next year and it never came back. the airlines are in much better shape this time and certainly better than besy when it comes to their balance sheets. still, the fact is that the estimates for the airlines are too high and stokz simply don't bottom ahead of earnings estimate cuts, they bottom after the estimates come done. so here's what i would do if i wanted to own southwestern or anyone else in the group, i would wait for the down grades to happen wait for the worst

and and holder erer patterns stocks that need to be dumped left and right, and only then would i bi. and if history any guide, i bet the buy moment will occur a little bit lower, thought higher from where they stocks are tragd now. and southwest will be the one that i would reach for first. plus, i think it has the least down sides. rich. >> caller: hey, booya. >> that is absolutely trute. >> caller: you did real good. >> thank you. >> caller: jet blue has been big year and year and do you think jet blue has more upside or would you prefer southwest, delta or american?

>> i think we have to say that i think the group has some down sade and jet blue's had a very big run and i prefer a superior operator like southwest than jet blue. let's put it like that. say, hello to colleen in my home state. >> caller: two b,ooya's. and my late husband used to love the company, flowserve. and oil prices do you think this company is undervalued based on -- >> it's a quality company. i don't expect a quick turn. but i got to tell you it's about as inexpensive as i've ever seen

seen. you want to charter to declare victory on the down side and then you can move in to buy. but you know what still early. stick with cramer.

it is time. it is time are the lightning round. and then the lightning round is over. are you ready. it's time for the lightning round. >> caller: jim how are you doing? >> what's going on with you? >> caller: i'm doing good. curious about killian pharmaceuticals. >> i do not want to own that stock. be very careful. >> caller: thanks for taking my call, jim. thinking about buying more retail investment opportunity.

>> les unless it yields more than 5% we're pulling back. go to hiemy in new jersey. >> caller: it's jaime. >> sorry. >> caller: it's an honor to speak with you mr. cramer and booya from one of your biggest fans in new jersey. >> you're right down the block. >> caller: yes we are. my question is krados security and defense solutions, should i stay with this defensive company or should i go? >> you should wait to hear what i -- that is a great idea. i can't -- i'm going to work on it all weekend. that fits exactly what i'm talking about and i didn't know it. our viewers know more than anyone. let's go to cindy in minnesota. cindy. >> caller: greetings from

minnesota. long time listener first time caller. i'd like to get your thoughts on glu mobile. >> we got that -- can i just say we have a great quarter from gamestop and i'd rather you be with gamestop. and we backed away from athe nagative. great job, gamestop. pete. >> caller: booya. boston scientific. >> what a discipline here. and nobody ever hurt taking a paragraph profit and those are the four horseman of the heart business. lets go to tom. >> caller: how are you. big booya from new york. i'm lookingality at apple hospital?

>> it's got that 6.5 divdnd yield. i'm with you on that one. i kind of like it. steven. >> caller: booya from sunny southern california. >> you got the edge on us. >> caller: lyg. >> people are telling me this is the one, if you believe in the term i tell you this is the one thattall allready moved a lot and it's another stock i have been waiting to talk about. our viewers keep getting ahead of me. and that ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td amare trade. >> i wanted to thank you for helping me to oo decide on the major and career i wanted to pursue. and you had a intern puzigds

with as much energy as you u i'd like to compete with it p.. >> i'm more of a maria anet on that issue. let go. >> we have an exciting pipeline of new products and one is smokey garlic chilly chicken. >> and i always take it home with you're on. people are worried about that strong dollar. >> it's figuring in into approaches. and it says cancel power off. >> how could that be? i'm on reserved power. >> oh my gosh danger will robinson. >> don't check on any of the

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our homework. and i don't want to just cuff the answer on a given stock. someone called about d vaks and while i knew the stock, i wanted to do some more research on my own because it frankly had a very big run. and dynavax lead prauldoduct is a hepatitis b vaccine and so far, it's more effective and faster worker than existing vaccines but there have been concerns about the safety protocol. and including cancer therapy and an asthma drug it's rr developing with asper zen cu.

and in anticipation of the big hepatitis b catalyst coming later this year. and car mine in new york asked me about a durro oro biotech. aduro biotech and since then like many others it's cooled down bit, back down to the lower 30s. why so much initial excitement about aduro? they operate in the sexy world of immunocology. it designed to power the body's immune system to fight cancer. they use a strain of wisteria to help your body destroycanter acells in your body. in pankcreatic cancer it's had

large results. and company's other big platform is in development and they received infusion of capital a few months ago. and where do i come down? i think it's exciting. these developments stage canc immuno therapy stocks are very risky. look at what bristol-myeyers had to do today. stock went down sharply and i worry about the new form catalyst enduro i'm not saying that's wrong. in the mid-30s you got to take a pass but i do like this one. and daren in california called about mdxg. they supply materials made from

tissue made for skin grafts. it's very voltile. they have rapid revenue growth. and thav arer already raised that target twice in the past few months they could also raise it again. and they've been surprisingly consistent. even better it's actually profitable. and including the interroduction of a new collagen product and fwoe nothing to spinal surgery, gynecological applications but stock isn't cheap but given the growth rate i could justify buying. labe obviously, i'd like to wait for a pull back but you know what? this one is a good one. homework complete. stick with cramer.

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where did you get those noodles? at&t cafeteria. you mean the break room... at&t - the only wireless carrier to be a part of plenti now when you add a new phone line to your wireless plan you get 5,000 plenti points to use in lots of places. we got a split market and it's a splirktst, frankly i don't like. particularly well today, if your company is just out there trying to do a lot of business it did poorly today. what we want to see is an earnings per share driven market, not a completely deal driven market and there's always a bull market somewhere, i promise to help you find it here on "mad money." i'm jim cramer and i'll see you

monday. [ soft music plays ] >> i knew it was wrong. i didn't know how illegal it was. i figured it was illegal. i just didn't think i was gonna get caught. >> i'm pretty sure i convinced myself that i wasn't harming anything or anyone. >> i wasn't the slut. you know, i wasn't the partier. i wasn't the bad girl. i wasn't the druggie. i was a liar. >> i was kind of like the big man on campus. it kind of got a little easier with each one that i did after