>> kellogg. buy. >> dan? >> ibm, i wouldn't chase it at 164. >> guy? >> qualcomm into earnings like carter worth says. >> that was very good. ten seconds around the horn. i'm simon hobbs. catch "fast money" again at 5:00 eastern. the my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i just want to make you some money. so call me 1-800-743-cnbc or tweet me @jimcramer. i had a little scare this morning. i picked up my copy of the wall

street journal. profits to fall for fourth time in a row. i was worried. i was worried i slipped into some sort of alternative universe, alternate dimension. could they be talking about this market, which gave you a nice little gain today? here's an article that has really, this has a first-class a-number one wound. several factors are weighing on earnings. collapsing oil prices are taking a toll on energy companies. low interest rates and a weak market. and a saturated phone market is reining in apple inc. but how does that mesh with the fact on the ground? this season started a week and a half ago when pepsico took

things to an all-time high. even as pepsico has gotten it up, i can't imagine how better it can be than this company's doing. so the bar for the season was set very high indeed. them amoco what followed with an amazing, a stunning report. the best numbers we've seen from this company in years. alcoa gave you extraordinary earnings and revenue beat, thanks to robust foreign truck and auto sales. good news out of china, not to mention the commodities. but stock has not looked back since then. anyone with costco heard some pretty darn positive things. congratulations to a good quarter. we're not used to hearing that about this company that has so many different fingers in so many different pies.

seagate, a forecast that the showed earnings not cut but a boost! ♪ hallelujah until whether will seagate cut its dividend? since then, the stock has pulled from $23, up another $1.25 today. it made me wonder, maybe there's something good happening here. then yum! brands. and csx has gotten cut with number cut after number cut after number cut. but csx gave you a quarter about as good as you can expect from a railroad at this point in y t y

commenty. looks like it might be again. we discussed the best and worst performers, and by far, the worst sector was the airline sector, holy cow. it has been horrendous. >> house of pain! >> what do we make continental said it had improved. two different airlines? that's remarkable. it's a major departure from the narrative that the country is going through. these upbeat airlines reports were merely a prelude to

something that i am telling you, people, is plain remarkable. i'm talking about spectacular earnings from the one group that i thought could possibly be worse than tech or the airlines. the group that was so injured by no rate hikes, bad loans, yes, the banks. we've now heard from the four major banks. wells fargo, citi bank and bank of america. the thr three of the four vastly exceeded expectations. there were no lines that were weak other than equity issuances. trading. it was an amazing quarter. at first i figured it was just j.p. morgan performing above expectations. then citi group and bank of america reported great numbers. both have put the mortgage issues at last behind them.

the jerusalem cites that the oil and gas business has been hurt. it took the pressure off their net chargeoffs. how about the final gripe. the journal said weak cell phone sales could hurt quarterly reports. but we wake up to a $32 billion all cash bid for a key apple supplier, by soft bank, the huge japanese technology company. this is an amazing deal. the pound -- it would have cost 28% more. if personmergers are drying up, can you explain this. then right before the opening this morning we got a terrific positive preannouncement from retail. i'm talking burlington stores.

it was a beauty. quite unexpected. given all the hand wringing about retail. first, hasbro, the company that has a fabulous track record, we try to find out what went off track if anything. second would be netflix. once again, twice in a row, not a good sign. i think it might be made than made up by ibm, plus a fabulous quarter by bm ware. here's the bottom line. if that's as bad as it gets, then the journal's going to have to rethink its pre-obituary. i don't know. i think it's fair to ask, what's there to be all that gloomy

about. dave in illinois? >> caller: dr. cramer, i am bullish on your home-again tomatoes and cramer's none-better sauce. >> it used to be jim's none-better, but somebody made me change it. >> caller: today japan's soft bank made an all cash bid to acquire arm holdings for $32 billion. in doing so, they secure a stake in virtually every mobile phone on the planet and all connected devices in the internet of things. is this a story of global m&a? or is it a story of perceived inferi inferiority? >> on the squawk on the street show, we've been going back and forth. and i think this is the beginning. i think it's a smart acquisition

by soft bank. we had them on the show. i wish intel had bought them a long time ago. i think you're in good shape. it's the wave of technology and the internet of things. let's go to jess in wisconsin. >> caller: hey, jim, with the recent acquisition of solar city, along with the negative publicity around their auto pilot technology, what is your thought. >> i think if people like tesla, they should go by the car. i would point out that the stock is now up 11 points from when they did the secondary, which shows you that this thing is hard, really hard to keep down. i recognize that. i can't recommend it, because i don't have any metrics to recommend it on, but i recognize that buyers just keep flocking to it. let's go to jim arizona. jim. >> caller: thanks for all the great advice over the years.

i have a three-year time horizon. how do you feel about tpr? >> i'm glad you gave me that time horizon. but these guys and blackstone, they are making, they are going to be making so much money in the next few years, i'm really glad you brought up kkr. i've been meaning to profile it again. i think it is a terrific buy. let's go to frankie in florida. >> caller: hi, jim, thank you for taking my call. it's a big florida keys booyah out to you. >> i'm a marathon guy. >> caller: i thank you for everything you do. >> i appreciate it. >> caller: my question is new star. with the break up of baxter, do you think new star is a good stock in stock? it pays a good dividend, or do you think it should break up since it has so many moving parts? >> i don't see that as a breakup candidate. i do think that, you know, and i'm not a big believer in the

fossil fuel business right now. i know there are pieces there. i think the yield's okay, but i'm not going to go along with that idea. and to put it in the quality, baxter was a brilliant move. i still like baxter very much. reporting of the season's death may be exaggerated. but i'm much more inclined to be positive than negative. the force seemed to be with hasbro. let's focus on the toy store with the ceo. then what does picking stocks have to do with picking stocks? a lot. the financial technology is one of the hottest out there. see if they're still worth owning or if they need to be sold. stick with cramer! don't miss a second of "mad

money." follow@jimcramer on twitter. have a question? tweet cramer, #mad tweets. send jim an e-mail at cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to mad money.cnbc.com. ♪ using 60,000 points from my chase ink card i bought all the framework... wire... and plants needed to give my shop... a face... no one will forget. see what the power of points can do for your business.

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the high quality toymaker had been on a run until today, when it got slammed. we've been fancying hasbro for some time because of their deals with disney, which give them the exclusive right to make toys from franchises, from "star wars" to "frozen".

so what happened here? they had a robust earnings, higher than expected sales, looks like a very healthy quarter, but there were issues underneath the numbers that caused some to get skittish. maybe it was the slow down of business of toys aimed at boys. we've got to find out. i'm wondering if the biggest issue is that hasbro ran up too much during the quarter. investors were the picturing a picture-perfect quarter. given the scale of today's selloff, we need to find out if this is a rare quality pull back or higher stock. let's check in with the chairman and ceo of hasbro to learn more about the quarter and how his company's doing, welcome back to mad money. >> hey, jim, how are you doing? >> we're going to get right to

it. you were c >> inventories were up, because we're getting ready to launch a third and fourth quarter business on disney's "frozen". it accounts for a lot of the incremental inventories. you have "star wars" continuing to sell incredibly well. our own brands in nerf are up, and play-doh is up. so we're just filling demand and of course 80% of the incremental inventories were associated with those top two brands of our company and the spread of inventory between domestic and international, despite white good, 40% inventory to domestic and 60% international. we're building a bigger global footprint for our brands,

including disney princess and "frozen". and we need the inventory to back up the sale. >> a boys weakness. you had the end. "jurassic world" deal which could hurt. and you said that's a meaningful piece of business. >> yeah, for the second quarter, jurassic is a meaningful piece of business, which it was about $50 million a year ago. but our boy's business is up, we've seen tremendous support in "star wars," but the nerf is up. we're comfortable that we have lots of new boys' initiatives. our transformer's business is associated with our new television series is performing quite well, and we can see that for the third and fourth quarter of the year. we have a new brand in yo yokai watch.

>> now pokemon go came up on the call. this is not necessarily mutually exclusive to what you guys are doing. >> we love mobile gaming. our mobile gaming is up 80% first half of '16 versus '15. we love the fact that people are gaming more than other. we are looking at other initiatives which have been in the toy industry for quite some time. so overall, we feel very good about gaming, particularly mobile gaming. our brands perform particularly well. this quarter we had great results from yahtzee with buddies. and it's been performing quite well. >> do we have to be concerned that transformers did not, had a down year when even though i know you had told us that that could happen. >> you know, transformers has come off of a movie year a couple years ago. we were still selling lots of

movie product in the second quarter. i wanted to indicate that transformers has lots of initiatives in the back half of the year. and a brand-new motion picture will be out next summer. and two new films planned for 2018 and 2019. we've transformed it and we believe we can continue to build transformers over time. in the second quarter, another great mobile game was earth war from our own back flip studios in boulder, colorado. it's a top 100 game on the app store. millions of downloads already, so we're excited. >> you have more than $422 million in your buyback. it's one of our favorites and was up huge in the first half. if people doesn't understand that this was a good quarter from us, we do have a buyback. that's why we have a buyback.

and several times in the quarter you talk about you love returning capital to shareholders. >> we do. in fact, over the last number of years we've returned 136% of net earnings to shareholders. our dividend, thanks to our board of directors by 11%. and we expect to buy about $150 million of our stock back this year. >> you've got a slate of all your big movies. >> we have a brand-new spiderman, a transformers in the fall, a "my little pony" movie. our first animated film. we're very excited about the lineup for 2017. it's as strong or probably stronger than 2016. >> then in other words, i depict

y you are how we feel. it was an extremely strong quarter. there's no question about it. you beat the numbers handily >> we grew in every quarter of business. we haven't talked about our game business. they grew up single digits, double digit take away in games, face-to-face gaming as well as mobile gaming is performing at a high level. our girls business was up 30%, preschool was up 5%. a great quarter. and we grew in all our units, latin america, asia pacific. >> sometimes a stock is having a yield so good that you can't anticipate. thank you. it's good to see you, sir. >> all right, good to see you, sir. >> times i get a break. that's hasbro. we'll be back after the break. coming up, one new company

is connecting millennials. >> we've got an opportunity and responsibility to help this generation understand what's happening in the technology world and the financial world and how they can put those things together to live a better life. >> and claramer sits down with e co-founder when "mad money" returns.

what's the secret to being a successful retailer these days? okay, let me give you a perfect example. what about tj max. i went to buy some crew socks. i knew i could get the best crew socks, under armour or nike at a

good price. sure enough, they had both. $12.99 for six pairs from under armour. $9.99 for half a dozen nikes. they're selling the same nikes for $29.49, more than twice what i paid at tj max. that's right. tjx is undercutting amazon. maybe they made too many pair! i don't now! and i don't particularly care. it took me six minutes to pick out these socks and buy them. i needed a new pair for my workout tomorrow morning at 4:00 a.m. and now i'll have them in time, faster than amazon. and this is what offline retail is all about. convenience is what's making a

shopping center so strong right now. according to don wood who told us about the need to satisfy shoppers now, which is why they have residential all around the streets, and tjx is giving the increasingly frugal american consumer exactly what she wanting. they want off-price retailers to give them high-quality, branded material for every day prices. they announced better than expected forecast. something that sent the stocks soaring. dollar general was touted this morning saying they had the right merchandise for males and millennials. me, i like the dollar stores for the prices. i have a big haul of veggies from my garden, and it came with a remarkable pride of flies.

they're ferocious. and i tried to nab them with a washcloth, couldn't do it. failed. i told my wife, we're going to dollar tree to get a flyswatter before we bring any more vegetables, because these were like a steven segal the film. even though the store's about 7 miles and a ton of traffic away. we do want the best flyswatters. dollar tree has them! this is why so many of the main line department stores are hitting, macy's, kohl's, nordstr nordstrom. they can come in under them and you can get what you want right now! perhaps more important, it's no longer seen as embarrassing to shop at a dollar store. i'm proud to do so, which is why i always treat my pictures of my beloved candy aisle at dollar

tree. it's the secret to picking stocks too. mike in florida. >> caller: jimmy, thanks for taking my call. me and my dog luke watch it avenue night. >> thank you. >> caller: i'm calling about etsy. you had mentioned it a couple weeks ago on the show. i picked it up at $8.65. are you still bullish on this? >> very bullish. it is one of our great companies in brooklyn. i think they have a super product. my daughter's sold stuff on it. i think etsy's got a great formula, and i think you should own the stock. michael in georgia. >> caller: how are you doing? >> doing well. >> caller: simple value stock. i've been looking at it and comparing it to the rest in the same sector. it's the cheapest.

22 stores got a big wholesaler with marsh, and it's recession proof how i feel. >> i think it's okay. kroger's better run, $5 stock, your svu is a spec. i happen to like whole foods right now. i think that's a better buy, too. but $5 lottery ticket used to be higher. let's go to donna in texas. >> caller: hi, jim, how are you? >> i'm fine how are you? >> caller: i wanted to ask about sonic. i loaded up with them in advance of their earnings announcement back on june 23rd. and since then it's been going down dramatically. it has recovered some, and i'm just wondering if it's something i should hang onto. >> when we spoke to the ceo i felt pretty good about it. they do have hit-or-miss quarters. i would not sell the stock. i would be moreb

buy sonic than sell it. the secret to retail? my socks! the value players like tjx, dollar tree are cleaning up. there are 80 million millennials in america. then technology has revolutionized how the world drops coin, but investors have been pulling away from this part of the sector. tonight's edition of the lightning round, so stick with cramer!

until recently, the financial technology space was one of the hottest groups out

there. particularly the small business focussed online lenders. as traditional banks shied away from extending credit for anybody who didn't have a nearly perfect credit score. but in the last few months the whole technology sector has gotten slammed. first theres what the lending club. and then they have cut their loan origination targets. thanks to brexit, the fear of regular la tory overhaul, people try to grab a piece of the pie. we learned that american express is launching its own platform for tlending. here we're talking about square, paypal, american express, to which any are worth owning. before we get started, let me make one thing perfectly clear.

none of these companies are like lending club. that stock has been in free fall virtually all year. it helps connect potential borrowers with lenders. they can't find enough people willing to lend. but paypal and square make the loans themselves. you wouldn't ordinarily view them as lenders. take square. you think of them as payment processing. you can do a credit card reader/cash register. but in addition to its flagship payment business, they're making loans. they have a tremendous amount of data about how your business is doi doing. so they started providing loans based on their clients' payment history. if those clients have trouble paying it back, they can take a cut from your daily credit card sales, because square is

operating their credit card readers. then in march they rolled out a plan with new loan offering again aimed at small businesses that already use square's systems. and the company can charge the the interest that many would see as extortion, ranging from 10% to 16%, because so many have trouble getting credit elsewhere. how about paypal? again, this is another payment processing story. the premiere online payments network. but paypal has gotten involved in the traditional way. they can loan you money in minutes with no credit check using a share of their daily sales, and paypal knows who's worth lending to, because their payment network gives them a vast amount of information on how much they are raking in.

and another that's been put through the meat grind are. on deck uses their own technology to screen borrower g borrowering. finally we have american express. they take on credit risk unlike visa or mastercard. they have a small business loan that's starting to make waves. they announced a new proi familiar that allows small business owners to apply for shor short-term loans and get approved in minutes. we don't have any numbers get. maybe we'll get a report about it wednesday. let's start with loan growth. at square they extended $153 billion. that's up 3% year over year, but up nearly 4%. the growth is going pretty dramatically. paypal had $488 million in

outstanding advances and fee the receivable. that's up nearly 16% from the previous quarter. how about on deck? their originations came in at 570 million. that's up 30% year on year. that's a deceleration from the company's 50% plus loan growth over the previous four quarters. paypal's the steadiest. next, we need to look at the default rate. it shows how good these lenders are at screening out deadbeat borrowers. square capital had 4%. on deck ck came in at 5.7%, but that's bad. paypal doesn't specifically provide douefault rates. you get a 1.2% douefault rate. when news broke that americans were moving into the small loan

business base. i don't now, you have to wonder, maybe they can make a dent in the industry. i don't know. next up, on deck has real problems. for example in recent years, the company has securitization, they chop them up into loan-backed securities. however, lately demand for the securitization market is cool. that's causing it to keep it on its balance sheet. worst of all is the funding issue. if on deck can't sell their loans on to someone else, it's much harder for them to find money to make new loans, which is why they slashed their 2016 loan origination guidance from 45% to 50%, down to 30% to 35%. ooh. >> the house of pain!

>> something that has become more difficult, on the credit market. if that's a problem for on deck, it's a problem for square. but at least they have the technology business to smooth things out. alas, what they do not have is a full-time ceo. jack dorsey has the top spot at twitter. i wish he would resign from one so he could focus on the other. neither is doing that well. paypal holds all of its loans on its own books. fortunately, paypal's core business remains payment processing. i'm not that concerned. time finally, where do they stand on stock valuation. square is a small-growing technology company. and on deck is a pure lender. paypal and amex, the latter

sells for 11 times. but the disparity makes sense. paypal's got 19% revenue growth, 1.8% revenue growth for amex. we can only evaluate square and on deck. it might seem like square's more pricey, but it's growing at a 51% clip. and it trades at a huge discount to visa or mastercard. and ago on deck is down. it's a challenged situation. where do i come down? the bottom line is small business lending has become a challenging place to be of late. although you hardly now, given how amped up some of these are. on deck is way too risky. american express? too much working against it. that means the technologicalica

or yeptsed square and paypal. i'm a fan of paypal. i think with square you wait until they get a better plan. i'll see you after the break with usaa is awesome. homeowners insurance life insurance automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life.

it is time! it's time for the lightning round! and then lightning round's over. stewart in new jersey. >> caller: how are you today? >> i'm good, how are you? >> caller: pretty good. i want to thank you for that match.com recommendation. >> that is a good company. very fast-growing, very solid. how can i help? >> caller: yeah, how about what's going on with stamps.com? >> oh, my whole group, we took a look at this thing, this is the biggest battle ground. we cannot figure out why it went up or why it went down. it defies current wisdom. let's go to marvin in new

jersey. marvin. >> caller: thank you for taking my call, jim. this is dr. marvin from new jersey. >> hey, doc. >> caller: i have been investing for over 50 years and us willing to learn. there for, your advice i purchased shares in danaher corporation. and i followed your recommendation to hold until it reached $100 and split into three companies. last week at $102 it split into two companies, so what is your advice? >> oh, no. you got to hold on to danaher. these guys are so smart. they don't take, these guys are among the best business people in america. let's go to sid in indiana. sid? sid? sid, hit me! >> caller: jim, i hope you're well. >> i'm doing okay. i hope you are too. >> caller: i am all right. i get hives when you're not

there. what's your take on teva? >> no, i want to be in allergan. let's go to douglas in texas. >> caller: hello, jim, thank you for taking my call. >> of course. >> caller: my question is, for the last ten years, i've owned a company named shipp finance international. and they pay a high dividend 12%, and they haven't missed one since. my question to you, should i stay where i'm at or buy more? >> that's a tough one. but i think it's going to come back up and the oil business is coming back. i think you have to hold on to it. let's go to phil in new jersey. >> caller: hey, jim, how are you, buddy? >> i'm good, how are you, phil? >> caller: good, a little frustrated. i hope you can help me out.

i bought cracker barrel, after i bought it, it got downgraded. >> a lot of that happens to be because oil and gasoline went up in price. i'd stick with cracker barrel. i like it. and that, ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade

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my mission in life is to

help you try to make money in the stock market. every now and then that means we need to go off the tape and check in with a privately-held company that's upending its particular industry to figure out what the future might look like. we folk on mic, m-i-c. the gold building media business is tailored to a millennial audience. 30 million readers who 75% of which are under the age of 35. they find out what they want to watch and read. let's check in with the co-founder and ceo of mic for more on how his company's doing. welcome to "mad money." chris, you guys actual lly are

white in our wheel house right now. tell people about it. >> very quickly, today we launched a new section called money mic. ago you know, millennials are a massive jecgeneration but precarious situation financially. they're financially illiterate. only 23% understand basic financial topics. so we have an incredible opportunity and responsibility to help this generation understand what's happening in the financial world, what's happening in the technology world and how they can put those things together to live a better life. >> i spent some time with you at your office. it's very clear you have the pulse. but can you give us a sense away from finance what having the pulse means. >> mic was launched with the purpose of becoming the most trusted voice in news for this generation. why is that needed? first millennials have a distinct cultural and world

view. they think about quality and purpose more than other generations. they're consuming all their content through their phones. so the platform has changed, and mic has adapted. >> advertisers recognize this. i saw a lot of brand name advertisers going to the site. >> it's amazing to see that advertisers are trying to reach this affluent, engaged young audience. people who have cut the cord, people who are no longer reading or watching legacy media, and we've found new ways, new formats in an authentic way. advertisers need to tell their stories to millennials in a way that resonate. and mic is doing that very successionfsuck fully -- successfully. >> i was there after the orlando tragedy. this is not a lightweight. you do it from

angles. >> average age of the mic employee is 27. these topics are personal to us, we have multiple who are from orlando, who are lgbt. so when we cover orlando, it's from a distinctly personal perspective. that hit very close to us. and we covered it from every angle. we swarmed the story, put people down that morning. we're also taking a step back and looking at it from a macro perspective in terms of what can we do to make sure this doesn't happen again. >> when you cover business, will you cover what companies are sustainable? >> we cover, you know, which companies are actually doing good for the world and therefore, which companies do people want to go work for and support with their money. that's becoming an increasingly important part of the economy is who's doing good and how they're measuring that. >> obviously, you worked at

goldman sachs. you're interested in making a profit. is making a profit at all a contradiction with trying to give the millennials the best possible product? >> for mic, we're in an inkridbling position where media is changing so fast. in the month of june, mic reached 51 million millennials in that month, that's 65%. >> that's way up from earlier in the year. >> yeah, we've grown across all platforms, 265% over the last six months. >> did the interview with president obama give you some visibility? >> it did, that was a tremendous mile stone for the company. and it was my co-founder who interviewed him and as the youngest journalist to do an interview with the president, it was a milestone. >> where are people coming from to go to mic? >> 75% are consuming on their phones. that's the first thing. and people are consuming from the major social networks.

facebook, tumblr, twitter. they are consuming a huge amount on those platforms, through newsletters, all these new creative platforms. >> as a journalist and a guy who was at one point fancied to do something like you in a particular vertical, i got to tell i,you, i wish you the bestf luck. stick with cramer. >> thank you.

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i spend a lot of time on the charting this weekend, medical device companies are doing terrifically. there are insurers doing great. there's a lot of discretionary stuff. but we all seem to want to focus on netflix. i'm saying, take a break from this. there's always a bull market somewhere, i promise to find it for you right here on "mad money." i'm jim cramer, i'll see you tomorrow!

-damion: come on in. to-lemonis: wow!profit"... this thing's beautiful. ...two english gazebo makers are chasing their american dream. you guys build these from scratch? damion: everything. we design it, we manufacture it, and we install it. lemonis: but while their product is a thing of beauty, the business is anything but. damion: patronize me like that. -that's what you do. -simon: i'm not patronizing you. damion: little things like that -- that's what pisses me off. lemonis: their process is amateurish. damion: we have to drive a mile down the road to use the restroom. lemonis: their marketing is misguided. how do you acquire your customers? damion: 99% of our business comes from these fairs. lemonis: and their relationship is at a breaking point. damion: you're making it out that you just sat back... simon: i'm not making it out at all. he asked me, so i told him. damion: ...drinking a whiskey, smoking a cigar. lemonis: if i can't help them get their house in order, this company will fall to pieces.