this is a gigantic company -- >> also known as -- >> it's a great global growth play. you believe things are getting better own visa. >> can you believe he did this on tv? >> melissa see. "mad money" 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. 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 some money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. a down day like this one where the dow tumbled 119 points s&p declined 0.57% and nasdaq dipped

nearly half a percent. well, you know what it's like? it's like when the tide goes out. you can see who's really swimming naked versus who what's got the latest speedos or whatever they're wearing these days. what do i mean by naked? anyone who be knocked down on versus on who's being hurt by china the bear market over there. by the way it's morphed into the bull market. and would be hurt by higher interest rates and the super freaking strong dollar. it's a very, very big group. but the others? the companies who have actually got their swimsuits on in the s&p rip tide they stand out while everyone else is naked and yeah drowning. all this is being revealed with the perfect moment. we know -- let's say we're a big chunk of earnings. which means we can make some

judgments. spot a couple of positive themes we can rely on. probably from now until year end. let me tick them down. the first theme -- the first theme that's withstanding the s&p's undertow, while, it's none other than -- fang! that's the acronym for the internet dominators that are facebook amazon netflix, google. f-a-n-g. we know that netflix and google sold their stocks as if -- like they have takeover bids. but tonight's surprise profit reported by amazon and the concome nant almost interest rate rise in their shares might take the cake of fang. we don't think these internet stars are done shining and i do not think that amazon can be contained even if it's up 100 to 150 points. a profit what will the bears have to say now? second group cyber security.

according to some in the analyst community this cohort had gotten overheated. my favorite was downgraded to a sell. that slammed the twhoel -- the whole cyber security space. let me make that call if the analysts knew there could be a short fall. turns out he knew nothing! or at least not anything that can make you money because fortnet had acceleration spending and the stock jumped 10% on the news. by the way, the pin action from fortnet drove up cyber arc, fireeye and palo alto networks. the latter is my go to name. the ceo keeps delivering. next theme that can resist the tide, i have one. apparel and fitness. when i hear those words i think of nike and under armour. they're just rolling over the

short sellers. nike what can i say about this company the best senior growth performer in the land other than perhaps starbucks who we will hear from later on in the show. mark parker doesn't get his due. when it slipped back into recession the numbers went up. when china crashed, even as he -- this man and his team and the outgoing chairman phil knight just amazed. i'm hearing about some new technology in the work that can create customized show digitally. you know that's dynamite. because i have to buy two pairs of sneakers since my right foot is a 9 1/2 and my left is 10 1/2. fitbit fits into this. they're the perfect sports accessory. my family loves the surge that

little device fits well in the undergarments that i don't need. at least not yet. if i had to wear a man-seer you know where i'd attach it. kevin planked nothing short of of -- plank delivered nothing short and they delivered jordan spieth before anyone heard of the guys. heck, i want to know who he is endorsing for president. i labeled under armour one of the favorites stealth technology stocks in "get rich carefully" but i didn't count on them having a network of 140 million registered users. right under nike's nose plank has put together the world's leading health and digital ecosystem with tremendous consumer engagement. i wore under armour shirts and boots to garden after wearing a pants and sneakers. yeah boy, that's a sight. the breadth of products is

extraordinary. oh, he's just scratching the surface of china so he can't be hurt by it yet. he's in german. he couldn't be on the show. next cameras and drones in the internet of things. here we go with gopro, which has the red hot camera device and with am ba relbarella and saying negative, negative, well you're on your own. on a nasty day like today it's amazing that ambarella can power ahead. after the close, internet king of things semiconductor king kin skyworks sent the stocks soaring and reminding us it's not just a cell phone play. next up the home. today, the home and security join the home related companies that reported stellar numbers. kitchen cabinets faucets, master locks, they're all part of the fortune brands family.

whirlpool may have issues overseas in brazil and europe, but what sent that stock soaring yesterday was the strong business it is doing in the u.s. and that was echoed by the giant by owings corning, the insulation company. just as home depot said when it reported now that home values are going up homeowners are once again after years and years of starving are investing in their homes. don't forget household formation going up. as long as people thought their homes could lose value no one wanted to spend much more money. but a house that goes up in value, especially new household creation that's worth renovating. final thing, rearmament. something amazing is happening in the world right now. we're making a nuclear deal with our old sworn enemy the death to america crowd in iran that will let them export whatever they want. namely oil. which is about to crush the market and has already obliterated our shale sales. the fact that it's happening because the president and -- which means that every country

in the region that fears iran's primary export terrorism is rearming and rearming in a hurry. russia has ambitions like we haven't seen since the cold war. they're not eyeing one of the baltic states to test the west after the ukraine? remember, estonia, latvia and lithuania are all nato members. how about china with the military push? paper tigers got to become more of a real tiger. have them build aircraft carriers. so the rest of asia feels threatened and it's not like we seem gung ho about playing the world's policeman anymore. and of course there's isil and isis. can isis be stopped? not with words and three cups of tea. that's for certain. none of this is on the defense companies. raytheon which can shoot down missiles boosted the profit. i expect northrop grumman to deliver similar results next week and lockheed martin doubled

down with defense with the -- no the steal of sikorsky helicopters from ailing and flailing technologies. lockheed martin's ceo must be laughing to the arms race. don't forget about the need for drones, ambarella. the tide is going out and while much of the market is naked we can see who is wearing the snazziest speedos. those like fang and housing and droning and defense. everything else, they're just hoping to stay afloat. ed in florida, ed? >> caller: big booyah jim, from florida! >> right back at you. >> caller: thank you jim. i want to thank you and your team for everything you do for us little guys jim. you guys are great. >> team makes me look good every day. including heather gains, happy birthday. >> caller: thank you, happy birthday. >> she deserves it. she's tireless and tall. >> caller: anyway, today i wanted to ask you about my stock

that i think has got a lot of growth even though i think it's undervalued. i know it's $9 off its high and i'm not sure if i should buy more, hold it or sell it. my stock is lowe's. >> all right, the research director, my charitable trust we were banging heads today. do we trigger on lowe's? and the answer is -- >> buy buy buy. >> yes. frank in new york, frank? >> caller: hey, booyah, jim. you have been a big fan of cypress i know. a couple of months ago you said they were going to merge with i think issi. i don't know what happened but i jumped in at 15 and change. it's languishing today, other with earnings, it jumped a bit. where are we going with this? >> i don't think it's a one-day fe on the phenomenon. they got caught up in the issi

and i thought their quarter is good. maybe it will join the pantheon of skyworks solutions. all right, today was a day to test the whatters the. it looks like those who make up fang cameras, drones, defense, homes are off to the races, but everything else, kind of doggie paddling to say the least. my exclusive with the giant that is brewing so much more than cappuccinos -- starbucks, up nearly 40% this year. then weakness in china is putting the entire metal space into the house of pain. but is it getting you a great bargain, i have the ceo of nucor. and right now, stay with cramer! >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. 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. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

given that the whole metals complex has been crushed over the past few months thanks in part to the new found weakness in china, when will it become safe to own a high quality steel maker like nucor? on the one hand, it's a well run company with the scrap steel model and it's under pressure from increased foreign supply and weaker worldwide demand for metals of all stripes. as of yesterday, the stock was trading at multiyear lows. the company delivered a 13 cent earnings beat off the 26 basis. it's down 17 points. new kor has a strong cost discipline and the pricing is beginning to stabilize.

so is it time to start bottom fishing in nucor since it gives you a dividend yield at the levels or should we remain cautious? let's check in with john ferriola, the new president and ceo, to learn more about the quarter and where the company is headed. welcome back to "mad money." >> thank you i'm glad to be here. >> you put up a real good quarter. the costs went lower and you had a great cost model. looks like business itself is getting stronger. where is it getting stronger and can you maintain the low costs? >> well it's getting stronger in a lot of areas. you know, as you know, nucor is the most diversified steel company in north america, maybe in the world. so we touch a bunch of different markets and see those markets, several of them getting stronger. some are becoming weaker but most we see as getting a little bit stronger. for example, non-residential construction. the pundits are saying should be up to 7 to 8 year over year. we're thinking more in the

neighborhood of 5 to 6% year over year. but that's still a good increase. given that last year non-residential construction was up about 8 or 9% compared to 2013. when you talk about residential construction, all you have to do is look around you and see what's going on. but the prediction is somewhere around 15% improvement this year versus 2014. >> that's good. >> that's a big jump. >> also automotive has been looking good for you guys. >> automotive has been looking good for us. that's one of the strengths of our company. we're so diversified. whether -- whatever market is growing, we seem to be able to take advantage of that. automotive as you mentioned, you know, we have really focused on that for several reasons. one of which is you mentioned about imports. the automotive steel market is more import resistant because of the high quality demands of the steel and also the just in time delivery requirements of the industry. so that steel tends to be very

important. and at nucor we have been investing a lot of money in those products and those markets that have more import resistivity than others. >> let me ask you about the imports. i know we talked about the tsunami of imports you mentioned in the conference call today, there's good demand but imports are come areal continuing to come in. will it give you some weapons to try to stop what's unfair trade? >> well, it's too early to comment on tpp as we haven't seen the language that's actually in the bill. once we get a chance to take a look at that i'd be able to make a more definitive comment. but i would like to comment on the legislation that has been passed as in a general way. we were certainly pleased and we applaud the administration and the congress for passing this bill. this is the first significant change in our trade laws in over 20 years. and it has really given us more

powerful weapons to fight against unfair trade. and that's an important step for us. >> you need that -- we know china is flailing. we are worried about china. to protect against us china imploding sending us steel you need these kind of laws. >> absolutely. although we were pleased with the laws that the new legislation that passed recently, we also believe that there's more work to be done. and we will continue to work with our elected officials in washington to provide a more level playing field for our teammates to compete upon because jim, i can tell you this. they have a level playing field to compete on, they will outcompete anyone in the world. >> that's exactly right. what does the future hold for nucor right now? >> i hate to say that the world is our oyster because we're in a tough market, but when you look

at the advantages that we bring to the market and to the potential for growth in our company, there's a lot that you need to focus on. for example, our financial strength. we have a very, very strong balance sheet and in addition to that we have a consistently healthy cash flow that those two alone allow us to continue to invest in our businesses during these down turns. so that we position ourselves better to capitalize on the inevitable return of the market. >> well, i know -- >> as you know, jim -- >> that's why we've liked nucor. you have much more free cash flow and you have done a good job. john ferriola, great to see you, sir. >> thank you, jim. all right. guys we know it's a tough market for cyclicals. that's what we say every day. this is the highest quality one in the steel business if you're so inclined. nucor. "mad money" is back after a

break. coming up -- driving deals. publishing partnerships. major moves in mobile. starbucks has come a long way from coffee and so has its stock. soaring about 40% this year. how will seattle's best continue keeping things fresh? cramer's got the exclusive fresh off earnings. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.

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at the end of the day, when you own a stock, you always have to remember that other people own it too. and if your fellow shareholders are in trouble, you're in trouble. there's nothing worse than owning a stock alongside a big hedge fund that's being forced to liquidate. >> sell sell sell. >> all the positions even though it doesn't want to because no power can prevent that stock from going lower. at least until the hedge funds finish that forced selling. just look what's happened right now with the oil and gas master limited partnerships. these names are getting crushed. just obliterated, annihilated. if you have watched the groups for year knows there's a fund that owns the mlps and they borrowed so much money or is facing so much massive withdrawals it needs to sell the stocks every single day including of course today and most likely tomorrow. in short, the oil and gas mlps are being liquidated.

that's because someone is selling everything, creating a bear market all by himself, albeit one that will soon end once the liquidations are over. now, i won't go into the notion there are some fundamental challenge going on here that some of the mlps are more levered to the price of oil than you realize. some pipelines will be cancelled, nor will i do it for natural gas. we need all the pipe we can get in this country. oil by train costs $13 more barrel than by pipe. so it makes it unattractive. it's suicidal to keep using rail so oil pipelines are needed. natural gas i know this is going to shock you, but natural gas is an incredible demand all over the country. in part because of the closure of so many coal plants and because of the new found shortage of the biggest import. a place that we imported from -- mexico. they have got a shortage of natural gas. and also because shanear energy

is on the cusp of exporting liquefied natural gas. in the not too distant future natural gas exported will eat up 10% of our country's production. so we are desperately short of pipelines. in short it's not like the lower price of oil or gas is going to impact anyone in the pipeline space except for the real gun slinger mlps. they have direct exposure to pricing and that's the minority of the group. this is about etiquette. no one is allowed to say publicly, you know it's such and such fund. we're shooting against them we're going to destroy them by short selling all of positions until he capitulates. but that he's what thatey're doing. why am i so sure it's one big liquidation? look at williams partners, it boosted the quarterly distribution by a staggering 44% giving them a yield of 7.5%. that igigantic.

we know they're not going to cut. they raised it. that's much more competitive than in the fed raises four or five times. consider that william companies is in auction mode having received a very real stock bid from energy transfer equity. it was once worth $64 a share which it rejected for being way too low. williams is at 53 and in play. how about, etp, a position we bought for action alerts.com. it will enable it to sharply increase the already huge distribution. one that has it 49 and 8 percent plus yield. how about a bid for mark west one of the best pipeline players in the u.s. but yet they trade at 64. 5.8% yield. these are not signs of a problem in the industry far from it. but the more the commodity prices go -- not less.

but these master limited partnerships don't do buy backs. and because no one in the industry will talk about it we kndz find out who's -- can't find out who's doing the selling. and believe me it's not the fundamentals in the industry that matter here. it's the fundamentals of the money management business and the possible failure of major hedge fund or two. we don't know when the forced selling will end. i think we'll look back and wonder maybe even just a month or two, how did these ever get so low? it's ridiculous. which is why if you're willing to take some pain, emphasis on pain while they finish blowing up i think this is the time into the weakness to buy the pipeline mlps. mike in florida, mike? >> caller: hi, jim. booyah to you from cocoa, florida. is the yield for marathon oil

safe at the current rate? is it time to add to the position? do you see the rate counts to increase along with production and is it too cheap not to looked at as a takeover candidate? >> this is something that my charitable trust owns and we're issuing hourly bulletins on each one of the oil companies we own. we said not yet. we put marathon oil on not worried about the dividend but we're not buying more until it hits a level until we feel more confident. i issued a mea culpa, i'm too soon in oil. that's right. the master limited partnerships now is the time. the next three or four days. oil we're doing it in big stages. it is not the time to buy more marathon right here. but if you own no oil stock, you should get started now. richard in california, richard? >> caller: jim, short and long on chicago bridge. >> no, i don't like the infrastructure place in oil. i do like to some degree i like the oil service stocks.

i like the high yielding master limited partnerships. i was early on oil. i want the regular oil stocks to come down. if you want to know my status on this on an hourly basis, go to action alerts.com. that's the service. we issue almost -- like bulletins today on this. this is what you call unnatural selling. energy mlps aren't struggling because of fundamentals which is why it's time to buy the stocks but you have to be able to endure this address. >> the house of pain. >> there is a much more "mad money" ahead including my earnings exclusive with the blowout that's starbucks. the king of coffee reported after the close. i'll take a deep dive into the company with the -- with the company's brass. could weakness in china give us some much needed buzz or stay away from utility? i'll engage with the ceo of american electric power. plus your calls just ahead. brand-new edition of the lightning round. stick with cramer.

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oh, boy, the utilities have had a rough time lately. as the competition from higher trade yields and the knowledge that an interest rate is coming and china is in trouble. so maybe we'll see some mono rotate back to the safe domestic utilities. take aep and a massive portfolio serving more than 5 million customers along 11 states. they had a terrific year but aep has come down more than 20%. still at the levels the stock gives you a bountiful 3.9% yield. plus american power had a 7 cents beat over the 81 cents basis. this is a robust quarter, the company boosted the full year

guidance. nonetheless, it fell just over 60 cents in part because it was dragged down by the rest of the utility complex. however, that kind of battle for a yield, some good strength across a host of states. i have to wonder if aep is starting to look attractive. let's look closer with nick akins, and hear more about the quarter and his company's prospect. welcome back. >> great to be with you again. >> i will hope you'll explain to the viewers because many own your stock, a utility isn't like a lot of other companies. a company -- if a tech company were to report the kind of earnings surprise you did, the stock might go up big. that's not how big it works for american electric power, is that right? >> that's true. many are long term investors and for us to continue to invest and to beat the market really says a lot about the foundational elements of what we've provided during this year. so it's a good year, a great year for us. we'll continue to -- continue plodding along to ensure that we continue those continual

revenues to our investors so it's clearly a positive for us. >> the way i'd read through it if i were an investor in american electric power, we can see more dividend increases rather than less because you're making money. >> that's right. our board is focused on earning improvement. and typically our board evaluates that in october and will continue to do so. >> all right. nick, union pacific reported today. they're a fine company and their coal cargoes were down a shattering amount. almost by a third. i'm wondering you're seeing this aversion to coal. what does it mean for the country and for american electric power? >> well, i think it's a particular challenge. coal needs to remain a part of the portfolio. but there is a massive change going on in terms of rebalancing of that portfolio, particularly in light of shell gas activity. the advent of renewals and

others that are forming. we need to balance the fleet obviously from a u.s. perspective to really build security of our energy supply, but also from a coal perspective perspective that coal picture needs to stay there as well. >> but do you think there will be another new coal plant built in this country? >> i don't see that happening because at this point you have to have some form of carbon capture and storage in place. it is very, very expensive. with natural gas there, certainly that's going to be the fuel of choice for central station generation. >> nick, one thing i wanted to ask you. you're pro solar. you have solar projects. what would happen if many of the states decided that if you put a solar panel on your roof, that american electric power had to take your power, what would it do to overall power bills if suddenly everybody was able to send you electricity? wouldn't it send our bills up because that would make it so you couldn't meet exactly what your plants can do? >> yeah, it's really an issue because it's intermittent supply.

solar is an intermittent supply so is wind power. the more renewals you put in place you're still backing it one large central station generation that can provide 24/7 power whenever the customer flips on the light switch. so you have to think about the overall portfolio of resources and what they actually provide. energy costs are lower but capacity costs, the costs to put these investments in place are typically higher than we can do with other central station generation. so it takes all of it together but you have to really focus on those activities that ordinarily drive up customers' costs in the end. we have to be mindful of that. >> one thing that's very clear across the panoply of your states, you suggested there's a drop down in oil and gas in terms of the number -- the amount of power that is. things are still marginally getting better in the country.

>> absolutely. i think you see the overall economy starting to improve all three of the load sectors were up commercial, industrial and residential and when you look at the oil and gas activity we cover a large portion of the shale gas activity in this country. when you look at those kinds of activities that's a lot of optimization occurring which brings on a lot of compressor loads. even though rig counts may be down and that kind of thing, the overall use and of electricity is going up in the regions. >> well, i think that's important and what matters to me and what matters to our viewers it's just steady as she goes. i want to congratulate you for a better than expected quarter. one day we'll stop worrying about rate hikes. nick akins, the chairman and the ceo. look they're far more in the control of the overall grips of what the fed is going to do. but american electric power in that content just keeps delivering and delivering. "mad money" is back after this break.

tomorrow -- kick off the trading day with "squawk on the street." live from post 9 at the nyse. >> tried the sneakers? >> no. have you tried the pants? >> no. >> have you tried the boots? >> no. >> have you tried the shirts? >> maybe i have a couple of shirts. >> it all starts at 9:00 a.m. eastern.

>> announcer: lightning round is sponsored by td ameritrade. >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round. cramer, "mad money." let's start with andrew in florida. andrew? >> caller: hey jimmy, thanks for taking a call. i have a great company here with a great pd ratio but it's so painful right now. do you see a bottom coming in united rentals? >> i have to tell you i did not like that conference call. a couple of quarters ago, mike neilen said that you know, don't worry about it. oil and gas, small business. now i'm worried about the -- no when the stock is down 10, i don't have a catalyst to recommend uri.

dean in kentucky. dean? >> caller: hey, what's up? >> not much, how about you? >> caller: recommendations on jp penney's target after christmas? >> i'm a best of breed retail guy. that makes it more difficult to recommend jc penney. i like target and amazon and costco which is down on its luck, stock wise but not the company. and alta and nordstrom. brian? >> caller: thank you for taking my call. i love action alerts. i love "mad money" and reading your articles. >> thank you. >> caller: i'm on my way to foxwoods and i need your hem with ohave a science. >> whoever is the starting quarterback for the giants.

it's not working, by the way also -- my lucky number is anybody who is a running back for the eagles and anybody who is in the hall of fame for the eagles. you get that, number 20. how about lois in florida. >> caller: hi, jim. what's your opinion about cbs? >> i'm a backer of netflix. tanner in north carolina. tanner? >> caller: booyah, jim. this is tanner in north carolina. i was wondering what your opinion was on tk -- >> what we're going to do, we are going to go back to our old friend, that we avoided for long time. marley's out, profits are in. let's go to les in virginia. >> caller: jim, thanks for taking my call. dominion resources has been a great stock in the past. what do you think about it going forward? >> dominion is the best run

utility out there. you know that we have tom farrell on. he's doing great work with natural gas. i'm with him and you. that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this.

♪

tonight's starbucks reported one of the best quarters it ever has. some might say the best it's ever had. and here to talk about it is kevin johnson, the president and chief operating officer of starbucks. kevin, welcome back to "mad money." >> thanks, jim. i think it's great to be here and as you commented, i think this is the strongest, most remarkable quarter in the 23-year history of being a publicly traded company. the growth and the comps we posted support it's hitting on all cylinders. >> you're man of the world, the only thing that people are talking about right now on wall street is the china is falling apart. is china falling apart for starbucks? >> well we certainly didn't see

that this quarter. our china asia-pacific grew same store comps 11%. most in the form of traffic. we had very strong growth in our china asia-pacific region. we are now in over 1,700 stores throughout more than 90 cities in main land china. our china asia-pacific region is now in excess of 5,200 stores on path to exceed 10,000 scores in the next five years. so we continue to see strong results from our business in china and throughout china asia-pacific. >> kevin, obviously i know you previously from juniper and i have to tell you as chief operating officer of a company primarily a drinks company, it is interesting that you are a technologist and yet when i look at the strength of this quarter, i see technology, technology, technology. go into what starbucks is doing because it may be a technology company that sells coffee.

>> well, certainly we have been on a journey around our mobile app and the digital customer experience. i think in the last year, we have increased the number of msr loyalty customers by 28%. last year we were about 8.1 million. this year we're at about 10.4 million. those customers use our mobile app. and that mobile app we now are doing mobile order and pay that we just deployed to over 4,000 company owned stores throughout the united states. and we're on track to complete that deployment to all company owned stores in the u.s. by the holiday season. so what we're seeing now is about 20% of all tender in the u.s. is paid for through that mobile app and through the digital experience and now with mobile order and pay we're seeing rapid adoption of the ability to order your food and beverage items from your mobile phone. and have those paid for for pickup. we'll start piloting delivery in the next quarter so the digital experience that we're evolving

for customers is every bit as important as the in-store experience that we create. we're trying to be very complimentary to the in-store experience and bridge that to the digital experience for our consumers. >> you used a word that makes me smile which is tender. it's like starbucks has because is not only third place, but you came one your own legal tender that's given at other places and spent at starbucks. explain the lift and "new york times" deal. these are revolutionary. >> our starbucks loyalty program has rewarded the customers the stars that they're able to redeem at starbucks. the last quarter we now have extended the opportunity for our loyalty customers to earn stars at starbucks to third parties. we have signed three partnership relationships. one was spotify, one with "the new york times" and one with lift that we have just announced that enables our loyalty customers to earn stars for their subscriptions at spotify and "the new york times" and for rides with lift.

so what we're doing is we're creating an ecosystem of partners. that are now providing our loyalty customers benefits by the ability to earn stars outside of starbucks they can redeem at starbucks and we're helping our partners. helping thenal tap into the customer base. we see and serve over 80 million customers a week so we're tapping into the customer base to help spotify drive premium subscriptions and help "new york times" and help lift drive passengers. this is a new platform to extend the digital relationship with our customers and allow them to earn stars everywhere. >> kevin, i'm seeing new formats across the street from the new york stock exchange. i'm hearing there are great numbers coming from express and it's not cannibalizing your regular stores. >> yeah, that's right. we launched the express store as a way to meet untapped demand that small in a very square

footage, about 500 square feet is doing the type of volume that typically we'd expect in a store three times its size. so for customers who are look for convenience, a quick turn around to get their food and beverage to move on we are providing that in that store. and there's another store just around the corner that we are not seeing any cannibalization. that's telling us that's latent demand. there's latent demand for the starbucks experience that we're capturing an that express store has delivered phenomenal results and we're going to continue to invest and build out more of those in some of the high traffic areas. >> all right. i want to know right now and don't dodge me. where is the next -- the numbers are too big, it's a national tv show. i have been very loyal to -- loyal rewards starbucks guy. are you opening your next roaster in new york city? >> jim, we are hard at work looking at real estate locations for the next roastry. and as soon as we lock on those deals we'll be ready to announce that. so we'll look forward to sharing

that news with you and your viewers here shortly. >> how could that be top secret, but i'll let it go. japan numbers, off the charts. why suddenly does that market that size give you accelerated revenue revenue growth? >> we acquired full ownership of the japanese business over the last year so now it's fully under our control and we're operating at that business. what we have seen is there's a huge amount of customer loyalty to the brand and a huge amount of opportunity for us to continue to invest in our business in japan. we launched a number of limited time offerings around frappuccinos and a number of other food and beverage items that are relevant to the japanese marketplace. we saw phenomenal response. in fact, we saw the comps in our japanese business exceed anything that we have seen in many years in that marketplace.

so we're very optimistic about our ability to continue to invest in japan and grow that business. >> in a short period of time, because we are running tight, people say my coffee price went up. starbucks making too much money. isn't the truth is that you're rewarding baristas? you're doing what's right for your associates and that's why the price go higher. >> that's correct. the cost of coffee typically is about 5% of our total cost base. we invest more in benefits for employee partners than we spend on coffee. >> all right. >> so we continue to lean in to doing the right thing for our partners and that in many ways is what we're going to continue to do. >> let's liveeave it on that notes. congratulations. great to see you, sir. going higher. what can i tell you? starbucks, it's amazing. stick with cramer. it's a fact. kind of like shopping hungry equals overshopping.

at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. sometimes you leave with a bad taste if your mouth. it's hard to do that when starbucks blows the number out. visa and amazon the best quarter they have ever done. skyworks solutions changed people's mind about semiconductors and juniper. i say there's always a bull market somewhere and i promise to find it for you. see you tomorrow!

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