>> playoff hockey, ranger, tune in. >> final trade? >> cisco. >> that's it. >> three giddy-ups. >> go rangers. >> i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00. meantime, do not go anywhere. 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 and put it in context. call me at 1-800-743-cnbc. or tweet me @jimcramer. for almost a year now we have experienced a ferocious phenomenon, the one i call the rolling bear market.

it would strike sector after sector. we never knew which industry would feel the evil wrath next. ever since the recent bottom on february 10, my birthday, we have seen a rolling bull market. one after another group is lifted and we get a revaluation of all stocks including today where the dow gained 187 points wiping out the losses of 2015. nasdaq vaulted 1.55%. consider today's action. this morning we came in expect ing the worst from the biggest bank in the world, jpmorgan. we know bank earnings have been under pressure for ages from a combination of newfound restrictions, a shroud low down trading and investment banking and a bunch of quick rate hikes to expand gross margins. everyone is afraid there could be a big spike from bad oil loans given the crashing energy

prices. instead jpmorgan knocks it out of the park. remarkable revenue growth, robust loan book, terrific increase in the net interest margin, what they make on deposits versus what people are thinking about thanks to the fed's rate hike and no real jump in it at all. a fantastic month of march. ♪ hallelujah it suggests maybe we have seen a trough in all things banking as jamie diamond told me today. we have built a first class institution that cannot be duplicated anywhere. after the quarter i agree. so instead of the stock being obliterated or opening up and trading down sharply during the morning conference call -- a pattern we have had in the last year. jpm opened up a dollar and popped another dollar and a half on top of it. that's classic bull market behavior. it gave people an added benefit. next thing you know, the whole group which features many stocks that have been in the dog house

for years suddenly catches fire. goldman sachs jumps five points. wells fargo moves up more than a dollar. bank of america more than 3%. the other banks haven't recorded yet. most are due to report this week. however this very morning the government in the form of the fdic and fed put out stuff about how the capital standards of banks still aren't up to snuff. the government wants living wills that cause banks to have a huge amount of cushion on balance sheets but that didn't stop the group from running. maybe the worst is over. you have to believe it could be the case given the ability of the banks to with stand one more withering governmental regulatory blast. it's a remarkable thing. how about the rails? the first one out of the shoot reported a number that's down big year over year as the call is off more than 30%. what happens? the stock rallies 4%.

one of the biggest dates in years. that's because csx has awesome productivity and it's come down so far it reflects no hope at all, frankly. at a time when things could be getting better worldwide. next thing you know, ka boom. we have a turn up in the whole transport sector. the group has acted so horribly it threatened the market. i could go on and on. i suggested broad com, the spear yor company would lead and then the rest of the cohort would follow. that's exactly what happened today. the growth software companies which have been resting for months catch bids and many stocks have been crushed during the late january, early february sell-off came back to life today. even tableau software and linkedin, the prostate cancer mat causes of the entire proximate causes of the sector

came back today in a bull market move. these are terrific stories. you know what? we have to ask what makes these moves happen. how can company that is report like csx or jpmorgan which suffered a 6.# earnings decline. it doesn't make sense. le the answer is complex. multiple reasons. i have to take them down. you want to understand this stuff. first there is negativity out there. hardly a day has gone by without someone calling a pop in the entire market let alone daily downgrades of stocks of good companies that might have better futures than analysts give them credit for. too many hedge funds are betting against the whole market and key components yet it's jpmorgan's ceo told me today, i quote, it's a fool's game to short america and the american spirit. after a day like today, i say in

the classic style i learned during my time at rival goldman sachs, true dat. second, the federal reserve is a bank. remember the dean of stock market knowledge, don't fight the fed. sure, the fed raised rates in december outlawing the very real possibility of rate hikes back then. however, since the fed traced out in december our economy has gone soft. hiring has been good. but spending is represented by aggregate retail sales. really? with the numbers we had this morning, wow. down considerably, frankly. the meager wage --

last night for example china reported an 11% increase in exports. a number derided by pundits as being. i think europe is finally getting better and i believe the best is yet to come. a better china is how you can see huge jumps in stocks like united technologies or honeywell or caterpillar and cummins as they do a clo sal amount of business in the far east. we know oil has been strong and people are less cautious about views on global growth. that could go away this weekend after opec and nonopec oil producers unravels.

tomorrow we could get seriously bad bank numbers and jpmorgan's numbers will be a distant memory. here's the bottom line. it is my job to recognize patterns. i see the rolling bear markets have been replaced by revolving bull markets. that pattern is in its infancy not on its last legs. le oh, leon in new york. >> caller: boo-yah. integrated device technology. >> it was not a good quarter. there was a weird chinese group bid for the company. i think it now discounts the worst. the stock is down from the high. i say idti is okay to buy but only half. you have to buy it lower. betty in florida. betty. >> caller: hi, jim. great to speak to you. >> same. >> caller: you're my mentor. tell me, to a still believe we should all -- including

retirees -- hold a small position in gold sp. >> 10%. thank you for the kind words. gld or bullion if you can afford storage costs or rangold to own a stock. thank heavens we hitched our star to mark bristow who called me a sissy. i say true dat to him, too. ryan in illinois. >> caller: boo-yah from chicago, jim. how are you? >> all right. how about you? >> caller: doing well. young investor. love the show. i want your take on chipotle. >> a friend went from buy to sell today. up four cents. when you're at the bottom, remember, jack in the box recovered, kfc recovered. terrible, terrible e. coli disease. by the way, of course we know eta cobell came back in this country. cmg is maybe 10% down, but it's okay. move over bears. it's now about the rolling bulls. lifting one group after another.

i think the pattern is still in its infancy. tonight on "mad money," rest, relaxation and returns? i'm taking a look at ex-pai pep see if its acquisition of home away could be good. and 30% in less than two months. does the stock have the right tools to head higher? i suggest that you stick 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.

will you look at this incredible run in illinois tool works?

itw, maker of industrial equipment and related services. this is a stock that got crushed out of the gate in 2016 like other industrials plunging to 81 bucks at the end of january. illinois tool works has come roaring back with the stock back up to a new all-time high today closing at nearly 105 dollars. that's a monster 30% gain. in a very short period of time. in fact, for the last few weeks it's come to feel like itw is a permanent resident on the list. the stock is up so much that i think some people believe maybe it's creeped into over valued territory versus the rest of the sector and the market as a whole. so is it time to ring the register on an industrial that's over ex-tened or could this have more room to run? illinois tool works is the most em pblematic of the buy the cyclicals bull market.

does it deserve to be so? before we get into valuation let's deal with something more basic. what does illinois tool works do? this is an old company founded more than a century ago based on an improved method of deer blinding. the illinois tool works today is different as in toto, we are not in illinois anymore. itw, that's what they call it, is a diversified industrial with over $13 billion in sales operations across 57 countries still focused on making specialized manufacturing products. itw serve as host of end markets including oil rigs, aerospace, bridges, wind turbines, construction, health care, automobiles, mobile devices. the auto business they make improved fasteners, snap in door handles and refuelling systems including numerous products used by mechanics to help keep cars

on the roads. they make ovens, dishwashers and refrigerator for restaurants. their packaging helps with six packs of beer to fresh produce. itw makes machines that ensure the safety of objects like airplanes and little objects like heart valves. they have a semiconductor test and measurement business that serves the smartphone market. that's a mosaic of different businesses yet illinois tool works has no trouble managing them all. the stock hasn't been an outperformer in the last few months. it's been roaring higher through years and years. ever since the generational bottom in 2009, itw shares have more than quadrupled. up 320% at $25. the stock stuttered in 2015 declining by 2.1%. much better than the average industrial given the industrial select spider etf known as the xli declined by 6% thisseree.

after initial pain in 2016 illinois tool works is rocketed here. how have they performed well and consistently so much more than everybody else? why is the whole better than its disparate parts? in 2012 illinois tool works conducted a strategic review around the same time they promoted scott santee to ceo after the illness and death of david spear. this view had two big take aways. they needed to shift from acquisition based business model to one based on generating organic growth. second, the company needed to leverage the scale to deliver best in class margins and terrific shareholder returns. management took the conclusions to heart and wasted no time making the new strategy a reality. itw decided to be involved in a particular business. it had better be capable of

delivering robust organic growth. that was a huge shift in the company with 32 businesses. where 4.9 billion in revenue. they were mostly product lines with low margins. they shut the divisions down or in the case of the industrial packaging sold them to both parties. by trimming the portfolios of the superfluous businesses itw simplified its support structure, created a leaner more competitive operation that could pick its spots and enter markets with lucrative growth opportunities. at the same time the company began using the scale to improve procurement processes and cut costs. this is basic business. i love these stories. just how people, companies make things in america. one more thing. after the big review illinois tool works embraced a new philosophy. i'm not being metaphorical. this is an idea called 80-20 excellence which is too complicated to boil down. it is based on the idea that 80%

of your sales tend to come from 20% of your customers. that's different from optimal or suboptim suboptimal. the guy had great ideas. the point is to focus on your most profitable clients and products. this one has pulled it off. for itw that meant becoming a leader in the space where is it was profitable, an essential partner for the most profitable customers. it got out. since 2012 the operating margins increased by 550 basis points to 21.4%. that's astonishing. 2012 through 2015 earnings per share increased by a 17% compound annual growth rate. impressive. cyclical or otherwise. illinois tool works embraced a new strategy and since then the company is getting better and better. 2016 will be no different. you can't argue with the numbers. they are stellar. that brings me back to the valuation. there are two components to every stock. what the company will earn and what you pay. illinois tool works proved to be

a superior industrial with superior state of mind and attitude which is why the stock is hard to kick and i'm comparing it to one of steven is he -- segal's movie. shouldn't it trade at a superior valuation? right now it is a slight premium. does it deserve it? if anything, you know what? i think the stock should have a higher valuation. that's one of the reasons i want to talk about it. the stock is too cheap. itw grew earnings at 17% the last three years and for 2016 the analyst looking for growth. that's a slow down. itw is looking for 10% earnings growth, a number that could be more realistic. even the 6.6% earnings growth figure is better than what you are seeing from most industrials. this is an industry where they are expected to contract by 7.8% in the first quarter of 2012.

2016. even as it might grow in the second quarter. itw is leaving the rest of the cohort in the dust. at a time when growth is hard to find, they have a decent amount. that's why the stock is making new highs. now those are the numbers. but the softer side of the argument might be even more compelling which is that illinois tool works has a good strategy with a focus on differentiated products. they can execute. remember, itw dumped that business years ago. i don't like commodities. i like proprietary. it's more difficult to switch from their products to others because they might be the only company making the stuff. that's how you protect your earnings. here's the bottom line. sure illinois tool works has gotten expensive. i will give you that. it deserves it. it deserves to trade at a premium to the industry. this is what i do. the company reports a week from today. it is run up dramatically into the quarter.

wait for the results and buy into any post earnings weakness. itw is too good to ignore. we are putting it in the pantheon of the best companies most of you have never heard of until now. much more "mad money" ahead including the revolution in hospitality. with expedia's acquisition of home away complete will air bnb ruin it? and tonight i'm talking to the visionary in the space to see if a rally could last and what free trade means for it. i'm looking at csx after the revenue miss. stick with cramer. this clean was like, pow!

it added this other level of clean to it. it just kinda like wiped everything clean. my teeth are glowing. they are so white.

i actually really like the two steps. everytime i use this together it felt like leaving the dentist's office. crest hd, 6x cleaning, 6x whitening. i would switch to crest hd over what i was using before. yesterday we went off the charts. check out the big internet based tech stocks including expedia. the stock has been beaten down. sue smith the technician we consulted said it was looking over sold. she wanted to see bullish signals giving expedia a thumbs up like the stock crossing above the 50 day moving average of 105. that happened today. i wanted to devote a segment to expedia because based on the fundamentals, this stock is absolutely worth buying hand over fist right now.

why? a major part of the reason has to do with expedia's acquisition of home away. the big online vacation rental play announced back in november and completed in december. despite commentary about it, i think the home away merger could be transformative for ex-pa pep with the power to propel the stock much higher. regular viewers know i believe it is the best of the online travel agencies now. better even than price line which i like. this is all about getting expedia access to the 100 billion dollar vacation rental industry. home away is the world's leading vacation ren tall platform with $125 billion in bookings last year bigger than air bnb but the latter is growing by leaps and bounds. say you own a beach house and you want to rent it out. you can advertise on home away for a fixed annual subscription fee or just give them a 10%

commission o bookings. they are trying to make the process of booking more like the simple process of booking a hotel on line. i think that's a reason why expedia view it as an opportunity. we learned they were buying home away for $3.9 billion in cash and stock as a way to grab a piece of the share in the economy we talked about. and the lodging business which is huge. expedia doesn't want to be a dinosaur when air bnb is growing so fast. i don't think this deal will be difficult to integrate given that they have been working together as distribution partners for two years now. the upside could be enormous as combining the two networks will point a lot more traffic toward home away's listings and expedia is the expertise to convert into purchases. in short home away is worth more to a company like expedia than it was to itself. how about we drill down into the numbers? management said they expect the deal to be diluting expedia's

erpings in the first year. okay. after that it will boost earnings, possibly big time as home away's integration results in more earning growth and increased profitabilitile. overall it was expected to lead to an expected $350 million in earnings for interest taxes, depreciation, amortization or ibitda. if you look at what expedia paid for home away the valuation was only a little higher than what was paid for open table, the online restaurant reservation play in to 15. the benefits from the home away deal are more obvious and straightforward than priceline's purchase of open table. this gives expedia access to home away's 1.2 million listed properties. when you go to their website you have more options available. seamless. at the same time expedia is no in the process of making home away better. it was a clunky site. home away has been classified ad

driven business where the person interacts with the people who want to rent it out and the company revenues came from subscription fees but in 2014 they started to make it possible to book online directly through the site. fast forward to today. home away has been planning to make all of their listings online bookablele by the end of 2017. that's what we want. now they belong to expedia and that timeline could accelerate. expedia has fantastic technology to make it work better and faster. their whole business is about online bookings. that's their speed. believe that home away can do wetter competing against air bnb under expedia's roof with the advantage of the advertising budget. home away spent about $100 million in advertising and generated $15 billion in bookings. expedia spent $2.1 billion in advertising. they are in a different league. i think the ad spending gives

them the opportunity for growth. especially in urban businesses where air bnb does their business. and they are a fabulous company. this makes expedia more competitive versus price line. that matters. we know price line is investing in the vacation rentals space. they have 378,000 listed on their website. by snapping up home away expedia leapfrogged price line here. this transaction is the latest in a long line of acquisitions made by expedia including orbitz that closed last september. expedia will let home away operate autonomously. they want to combine with home away, not swallow it and digest it into something different. how is it going? expedia reported in february while the results were disappointing, the company's outlook was stronger than expected. imagine providing a positive update on a home away acquisition saying they were

encouraged by the fourth quarter performance which came in ahead of expectations. home away started to introduce a 6% travellers fee for the coming months. it could be worth a billion dollars to expedia's bottom line. i'm a fan of the deal but expedia stock has been annihilated since it was announced in november. down 22%. price line is down only 10% over the same period. the online travel space is hammered thanks in part to the strong dollar. with the dollar getting weaker versus other major currencies that will provide a nice boost to expedia numbers. things are happening so fast to the dollar it hasn't been even been incorporated into thees theethees eses es estima estimates. i'm thinking you are getting a terrific entry point -- [ buy, buy, buy ] -- with the stock trading at 15 times next year's earnings estima estimates.

despite the fact it has a substantially higher growth rate. here's the bottom line. expedia's chart gave you the buy signal with the stock above the 50-day moving average we want to see. that meaps the techs and fund mentals are in agreement. expedia will benefit from the deal. i suggest buying the stock before the rest of the market realizes just how positive and powerful this story can be. let's take questions. sam in ohio. sam. >> caller: hey, jim. thanks for taking my call. >> sure. >> caller: two quick questions, if you wouldn't mind. my stock is vlo. with awesome reporting bigger truck sales and suv sales two questions, one, what's your opinion of valero as a short term, six-month stock and a long term two-year play? secondly, how much influence do you think energy etf played in the decline of valero stock and

as you mentioned last night the rise of the machine. >> i think the rise of the machine is more important. vlo benefits from the spread. when oil is in glut they can charge a lot for the gas and make good money. they are exporting a lot. i'm not a fab of the refiners because they are commodity players. this one yields almost 4%. i can't go i kra city for it. in the end the stocks seem played out. look for new ideas. i'm not a fossile fuel buyer. expedia is ready to fly higher. the technicals and fundamentals are signalling a huge buy. much more "mad money" ahead. nearly every presidential candidate has been -- i'm sitting down with an executive that's never been afraid to speak his mind when it comes to this issue. and business is down at csx but stock is up. should you hitch a ride or put on the brakes? and your calls rapid fire in tonight's special edition of the lightning round.

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most executives will tell you this election year hasn't been good for business.

there's at least one way in which therimaries have been extremely positive. that's opening up the question of trade. for decades you couldn't question the gospel of free trade in this country to be taken seriously. it was an article of faith that free trade agreements were beneficial to the economy. if you didn't knowledge it you knew nothing about the way the world works. now the pro free trade consensus is under attack from donald trump on the republican side, bernie sanders on the democratic side. you know what? close followers of "mad money" know i think they are onto something. even though they may not be nuanced about the topic. our trading partners, particularly china don't play by the same rules we do. that's why the obama administration slapped a 266% import duty on state subsidized chinese steal el that the people's republic was dumping so steel makers can have a fighting chance to stay alive. i'm just a talking head on tv. let's talk to a real expert

here. dan damico of new core the best steel maker in america. they are running from 2000 to 2012. this is a hard headed business who understands international trade. he's been one of the few executives to speak out about companies that never intended to play by the rules. it's a darn good time to check in again to get this perspective on things. welcome back to "mad money." boo-yah, jim. my pleasure and honor to be here. >> i miss you. let me ask you. what's happened in this country that finally we are having a serious debate on something that should have been going on for two decades. >> what we have had is somebody stepping up to the plate and speak to the concerns of the american people, the american worker and donald trump has a lot of positions and a lot of things. some we may agree with or not.

he's 100% right on trade. if you want proof of that look at the people coming out to attack him on it. >> this is something that's been gospel. i know that when you and i talked i feel like -- i thought i was -- it's almost like a religion, free trade. did we hit a tipping point where people recognized that the jobs are going away. it's really up to us to stop it. >> yeah. they have. it took somebody to stand up and make it a discussion point this n the debates in the primaries. to get people to show they really understand that we have been had by the trade policies this country has been putting forward for the last 20 years. free trade has been a failure. not think of it as a failure in concept. it's a failure in reality because trade her can tallism

and government economies trumped -- excuse the expression -- free trade. they have turned it against us. we have not had the guts to stand up and say enough is enough. want our market, play by the rules you agree to. that's what trump is saying. that's what reagan said. people who call themselves reaganites who spout free trade forget reagan was a champion for rules based trade. yes, free trade for that accountability which is what we have forgotten since he left office. >> when we were growing up the democrats actually cared about the workers. and we are always trying to figure ways to make it to the workers weren't disenfranchised. what made it so a sitting democrat in the white house is so pro free trade given the fact that you and i are ahead of new core, donald trump businessman. i'm just a guy with a t show. we all know that it's starkly in contrast to the way the

democrats were 30, 40 years ago. >> i'm not sure you can judge the overall democratic congress as an example by the position that the current president has on trade. with a tpp he's pushing. although i will tell you this administration has been very helpful in supporting us in our trade claims. we wish they would have been more proactive and not waited until we were half dead to come out and enforce the laws. but we have had very strong tariffs against china in particular. against other countries who have been dumping their product illegally into the markets. but the trade issue is bigger than the steel industry, jim. >> right. >> as you and i have talked about many times. the whole trade issue is one that has decimated manufacturing sectors, in particular in the united states. but elsewhere in the world as well. because of china's mercantalism

on trade. an article appeared in the "wall street journal" today or recently. i don't know if it showed up yet. i was talking about smith -- adam smith and his free trade concept. adam smith never intended free trade to lose out. his whole premise was compare advantage and free trade and that free trade would decimate her cant tlimpl. we went back words and allowed it to trump free trade because we didn't enforce the rules that go along with the concept of free trade and the trade agreements people signed to have access to the market. we let them get away with cheating because it suited the interests of certain companies, certain international companies, certain politicians. it suited their interests but it didn't suit the american people's interests. the american people are letting

it be known finally. i wrote a book about it. you have helped me talk about it. it's an issue on everybody's tongue. main street knows what wall street and washington will not admit to. free trade failed us. >> let's leave it at that. thank you for coming on the show. i read everything you write. you are an inspiration as much as you were with new core. you're a business person. you have created a lot of jobs. dan dimicco of new core. an honest guy about trade. great to see you.

>> 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 on cramer's "mad money." we're going to start with john in florida, john. i'm about a third time caller. my friend was telling me about prospect capital. >> these are the strange financing stuff with big yield. i think if the economy is

getting soft you don't want to own this one. you just don't want to own it. i appreciate that you are a third time caller. brian in california. brian. >> caller: jim, you crack me up. love the show. >> thank you. >> caller: aegn. >> exciting company. want to do more work on it. really feel like we are doing a lot of stuff on water, by the way. we have not completed the water analysis because of the downgrade of another stock in the sector. we will come back. let's go to frederick in missouri. >> caller: boo-yah. >> boo-yah. >> caller: yeah. can you tell me where insy is headed? >> this is another cancer therapy stock. we have never fought anyone who wants to buy one of these. we always point the same thing out. way too speculative at this point. not going to stop someone from getting it. janice in oregon. >> caller: hi, this is janice from bend, oregon. >> beautiful there. >> caller: yes, it is.

you have often talked about cypress semiconstructor and had tj rogers as a guest. there is a partner with xmc. >> right. >> look. i have to tell you, i'm betwixt, between and bewildered by how the stock acts. a stock like broad com which is just screaming higher. even intel el is doing well. i don't know. i feel like i'm snake bit on fitbit. i feel like i can't get them right. drive me crazy. 5% yield. eva in ohio. >> caller: hi, jim. >> boo-yah. >> caller: how are you? >> pretty good. how are you? >> caller: doing fine. as soon as i decided to call for your advice, the stock started to move upward. that must be all good.

>> what's the stock. >> caller: the stock is cliff natural. >> i think just like the recent hall-of-famer and rock and roll hall of fame steve miller take the money and run. i'm not kidding. >> caller: i want your opinion on web md. >> this is a good technology company. it doesn't get asked about it enough. it's got a very good earnings stream. it's expensive but that's a very good niche. that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement.

there's no way to predict that. td ameritrade.

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why do stocks go up on bad news? consider csx, the giant railroad. they reported last night and the message was loud and clear and down beat. business is going south. [ sell, sell, sell ] >> earnings were 37 cents a share compared to 45 cents last year. that's a huge drop-off. revenue for the quarter declined 14%. [ house of pain ] >> not only that csx told you volumes will slip again in the second quarter. 10 of 12 different cargos will be down in the next quarter.

agricultural products, chemicals, metals and wastes and equipment. many have to do with excess truck capacity giving the rails a run for their money. a strong dollar when it comes to exports and a huge shift from coal and natural gas at major utilities led to a 31% drop in coal business for csx, an enormous decrease in business. it's been continual as the chief sales and marketing officer of csx stated about the conference call. who would have thought in four years we would lose 1.4 billion of coal revenue and we were pretty much on target to lose $500 million in coal revenue. the answer to who would have thought of it? a remarkable ability to continue to drive productivity.

the company has been able to make more money with far fewer sales than anyone would imagine could be possible. that's how the stock can rally 4% on what looked like a disappointment many people thought it was. it wasn't. railroads are a terrific businesses in good times and bad. they are the most efficient way to transfer both goods and they always will be. as michael ward said and i quote, as i think about csx's first quarter performance it is clear the company's quarter earnings power remains strong even in rp an environment where macro economic forces are putting pressure on the markets. he continues we we know 2016 will be a challenging year. we are focused on the highest level of performance possible. put simply they are doing much more with less especially when you consider the head count down 13%. wow. is that necessarily a reason to buy a stock?

yes. it could be getting better and if it's better away from csx's business it would drive up volumes beyond what they are currently predicting. two, you can keep the costs down. the gross margins on each additional dollar of sales and the roads of the country are in dilapidated shape making it impossible for csx to lose its business to trucking though trucking is doing well here. this is from the grid lock in congress. there is a belief that better productivity combined with increase traffic will make this stock look mighty cheap a year from now given the almost 3% yield and a big buy back. the story is one you will be hearing repeated many times over the next few weeks of earnings season. in fact, we already hear it. costs this quarter. there were multiple hundreds of millions of dollars still to

come. you are hearing it from the oil patch where the break evens have fallen 20, 30. many of the industrials as earnings roll in. keep this in mind. companies have seen the declines coming. they have taken action. they are doing far better than we thought possible even a year ago. you have to wonder what happens if the world gets stronger as you know i think it is. the answer -- you will get hugely positive earnings swings. swings so fabulous that you want to own the stocks now before the earnings turn. especially with the stock like csx which traded at $37 and is now up $26. that makes stocks go up on bad news. they already were flat. the worst. that's when you have to buy. not when things are flying. csx is a bargain. even after today. plain and simple. the market senses it which is why the stock rallied off a potentially brighter future. rather than declining off a

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after a long day of earnings i have to circle back to it's not such good business to sure america. i like to say there is always a bull market somewhere. i promise to find it for you on "mad money." i'm jim cramer. see you tomorrow. tilman: tonight on "billion dollar buyer"...

well, you're gonna make a bunch of money just selling wholesale. i'm looking for luxury in new york city, where two high-end suppliers hope to earn my business. a linen sheet maker who's got a whole lot to learn. tilman: you're a very talented man, but when it comes to marketing, i'm gonna give you an f. a would-be beauty queen who is her own worst enemy. you should know the way that you come off to people. - to one person? to multiple staff members. if they deliver, i'll take them to new heights. that is a lot of profit, jason. but if they come up short, they could stay small forever. no, wait here. no, you wait. you have to win my people over. my name is tilman fertitta, and i turned a single texas seafood house into a $3 billion empire.