>> buy oracle, sell tesla. >> no call spreads in tesla. >> a fine risk in kroger >> kroger call spreads. >> yeah. >> we have 20 seconds shot segment. you did an 8 so i can sit here and look at e me tthcarawo seconds we'll see "mad money" with jim 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 and i promise to help you find it. "mad money" starts now hey, i'm cramer, welcome to "mad money," welcome to cramerica some people want to make friends, i'm just trying to make you money. my job is not just to make friends, but to educate and teach you and maybe put it into perspective. call me at 1-800-747-cnbc or tweet me @jimcramer.

how do you say game changer? how do you say disruption? how do you say brand-new world >> house of pleasure >> i'll tell you how to say it, amazon buying whole foods for 18 billion. s&p inched up .02% and the nasdaq declined .22%. this is a day that will live in infamy for everyone in many country. i don't care if you're kroger or walmart or costco or supervalue, this purchase, it changes everything that's because amazon which struggled with food, mightily, has found the trojan horse in the supermarket industry

and it's achilles heel all at once it's averitable homer or home run, judging by the way amazon stock rallied today. i do not think people realize how big this is. amazon's like a modern mechanized army, rolling over the opposition, just like tanks rolled over the trenches in world war 12 in one fell swoop, it will do to the supermarket industry what has already done to the mall how do you compete against a nonunionized company that knows exactly what its customers want. a company that can afford to give away eggs or milk to amazon prime members without worrying about the bottom line? i think that's exactly what's happening now. i know whole foods has just a little more than 400 stores across the country but that's just what it looks

like now whole foods got sidetracked that did the format it thought -- anyone in grocery was crushed by this today and that makes sense, at least initially yes, it's that much of a disruption that the company that wanted to clothe and entertain you, decided that's not enough, now it wants to feed you food needs to be fresh, something that walmart that sells fresh food brags about endlessly. you can't just leave food laying on someone's porch all day long. the cost is a pittance, compared to the market value that amazon gained by making the acquisition today. not only that, but this deal comes right on the heels of a truly dismal quarterly forecast,

and when i say dismal, i'm being way too mirthful from kroger that pretty much admitted it would have to compete on price including two german companies that are determined to give you the best for the least, a deadly combination. of course this move downtown just royal the grocery stores, the suppliers have to be worried that amazon can crush them with their bargaining power the food business is tough enough, who needs this aggravation? let's deal with the winners and losers here. the first winner is obviously amazon it knows so much about you, it's so mechanized that it can just explode the model. but amazon can perfect that cell phone payment system, for that smart start cell that i like so much paid for, eliminates the need for checkers, that's a major cost of doing business, don't want to be heartless here, but

it is problematic. at the same time whole foods has had a hard time with the loyalty program. amazon ask just one gigantic loyalty program. if it wants, it can harness uber you know that uber has about $3 billion in delivery food buyers. and whole foods, no reason not to hold on to this if you own it, you hold it i think there's very little possible of antitrust action, it's a very fractured industry, justice department won't spend much time on this, who knows, maybe whole foods decide decided ---amazon decided it had to buy whole foods people feel walmart's got to come in. other than that, let me think, no, no other winners, losers

all right, you have to start with a highly leveraged supervalu. next is kroger that has an expensive unionized workforce. i didn't see how kroger could compete yesterday, after that downbeat rap about all the companies taking the share then there's target, this company's been struggling with food as it is. you have to wonder if it should even bother now. but maybe it can, and i'm not kidding, outsource food to kroger suppliers to whole foods will be next, united natural, which also does about a third of it's business with whole foods. and main celestial the dollar stores made a very

big bet not that long ago on food they have done well with it. their stocks were initially crushed today. much more beyond recognition that i thought but i question how much the deal impacted them, given that t shoppers have little overhead. i can't think of a reason to buy them other than that they're cheap and that has never been reason enough in cramerica costco hmm, hurt by food deflation and amazon will bring food deflation lower. this is simply not good for them here's the problem analysts love costco, almost everybody has a buy on it. so i would like to see more downgrades like the one that hawaiian punch delivered this afternoon walmart is doing well. it's stock reflected it. i think it can bounce back

why not wait until there's more negative chatter from the analysts walmart can't deal with anymore more price pressure, it's a privately owned company that went public because it's worth so much. when numbers come down in this market, stocks just go right down with them in some ways i feel it's too small to just talk about these individual companies because it throws you off the much larger scent. i think the grocery area has gone from not too hot to basically hideous overnight. no, no, grocery storstorings -- storings won't go the way of borders. the sheer ease and expense of it will weigh mightily on the industry the company is simply too disruptive most of the stocks had a nice bounce back from the misery of the morning. most of those will see lower

levels again be cautious. amazon's desire to clothe and feed and entertain every american cannot be denied, it will be realized and things will not end well for all of amazon's competitors. but the cavalry, let's just say it has never had much hope against tax. and amazon is one giant mechanized army. >> caller: cramer i have a question with regard to shopify, buy or hold. >> the stock was up $1.45 today, because people realize it is an e commerce platform. maybe kroger has to buy them listen, i say that and immediately on -- i'm envisioning it on twitter people stay i'm an

idiot. if you were my mother i would take offense to it, that's about it how about don in texas don? >> caller: jim first of all, happy father's day boo-yah too you. >> right back at you i got to tell you this, don, because you'll love this my daughter said that father's day is very inconvenient on sunday so let's have it on monday i never thought of that, inconvenient >> caller: sounds like something my son would say >> i was thrilled that i was even included in the conversation big win. >> caller: okay i was calling on schmucker, ticker symbol sjm their last quarterly meeting, the guidance didn't sound too good i have owned it for quite some time now but in addition to it being near it's 52-week low, i also noticed

that today it was up .2% my question is should i hang in there? or should i reallocate >> i have spent some time with the company, the cross curren currentses are so tough in this industry, i think the company, i wouldn't center the store that will be sacrificed on the alter of the new amazon-whole foods, wow. i still can't believe it focus. the revolution is here on "mad money" tonight, just because there's a transformative deal on wall street doesn't mean we're abandoning the game plan, no way i'll tell you what you need to watch in the week ahead. that coat or purse might cost a pretty penny, i'm eyeing the company's potential and with today's megamerger announcement,

i'm take a look back at a merger in 2015, i'm making a look back. it's merger friday >> don't miss a second of "mad money," follow @jimcramer on twitter. have a question, tweet cramer #m #madtweets, or send joim an email. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time

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it's tough to come back to earth after trying to explore the invocations of the most disruptive, most game changing takeover i can recall. yes, it was a merger member the merger bot? >> merger. >> amazon's bid for whole foods. but we still got some work to do we need to get to our game plan for next week. first monday starts an extrav

extravaganza that investors always look for. people have been puzzled why boeing has a new all-time high it's because they say they'll talk about some gigantic orders at the show. i think they'll deliver. that's not all there is. one of my favorite companies, united technologies, has it's general aviation meeting on advertise. ge's in flux here, i think everybody's worried about the incoming ceo john flannery l lowing the boom on forecasts instead, i bet it gives a positive update on aerospace it's supposed to be positive, but these days are ge, who knows, right why do you know the stock of ge

like my travel trust does? because they have made $2 billion in cost cuttings we start with giant home builder lennar it hit a new high, normally it would be hitting a new low it's great for the home building business lennar will take advantage of the demand, many home builders don't. the pace was slightly more than a million homes. in this economy should be generating at least 50% more than that. we need answers. i bet ceo steve miller will have some great perspective, he always does. then we get some results from fedex, and i think it's going to

be a good quarter. i'm looking for the company to guide numbers up and talk about it's role in the privatization of airports, because if there was ever a company that knows how to run an airport, it's fedex. and we have to talk about the food industry because of that amazon-whole foods merger. maybe do the merger bot. >> merger. merger >> it's friday, come on. adobe's stock often confusings people and other times the stock gets hammered because the stock runs too far too fast if you haven't bought adobe yet, you have to wait until this

company reports. we have been putting out bulletins like mad at action.com it was a fantastic quarter, keep the pattern in mind, you might get another opportunity. we're always fretting these days about anything auto, we worry about peak auto sales, we worry about subprime loans to auto buyers and we worry about auto parts. and we're concerned about how the big car dealers are doing. we're going to get numbers from car max. i'm going to listen to the call, but only to find what the state of the industry is i'm worried too that auto has become a drag on the economy and that car companies have lost a lot of their value and oracle, given what we're seeing from some of the other

companies, i think oracle is going to report a good quarter once again you ain't seen nothing until you've analyzed the tradiing a t accensu accensure. last time accensure dropped from $126 to $114 after it reported and here there is back to $127 every once in a while the market astounds you at how stupid it is bed bath & beyond has performed so poorly. it's been a monster bad stock. the other school says that this stock is so low that the company could pull a nordstrom, meaning it might want to make its stock private. my take, just avoid the darn

thing. you know why because live's too hard. blackberry reports last year it gave you the quarterly update, it wanted to monetize all that intellectual property it owns and the stock flew higher. to me, this thing's been a dog for so long. i had no choice but to say hold on, don't touch it but blackberry said that analyst has become a raging bull it's now above $10 and if it's going to stay above $10 you have to say, oh, well i missed that wti crude, half a horrendous couple of weeks, our analyst who so nailed that crude will go $10

higher, could be right that crude has bottomed out there's lower inventories and it has become a destroyer of everything it touches these days the possibilities for an actual rally higher have finally increased. here's the bottom line, while we still collectively real from the most disruptive deal in ages, amazon merging with whole foods, let's focus on a group of companies that could decide the direction of the market next week adobe and accensure are trading wildly that's where you could get some discounts in the weeks ahead coach is up 30% already this year, with 2 acquisition, is a turn around in the bag

and a major merger, because remember it is merger friday and there's action in this market that's driving old school observers. is there action in your portfolio? i'll reveal it just ahead. so stick with cramer [vo] when it comes to investing,

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new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov it's time to take a bit of a victory lap. for over a year now, i have been telling you that coach the luxury handbags and accessory retailer has been 35making a tu around and you need to own this stock. the new ceo rejuvenated the brand and started producing excellent numbers, at this point out looks undeniable, coach is back

the stock has had a nearly 30% gain since i last recommended it in february, and i think the stock has a lot more room to run so i'm visiting it again you need to understand what made this turn possible the thing about a come back is that it takes time the new ceo was sworn in in 2015 the numbers didn't improve dramatically since 2016. however once the turn arrived, it went into full gear pretty quickly. the power of the company's brand had been diluted, tarnished, they had rolled out cheaper more affordable product products if you want to sell expensivive handbag, you want to know they're going to be exclusive.

the new ceo has boosted the product line, and shut down markets that weren't making any money. reformatting stores, but perhaps best of all, in january of 2015, we learned that coach would buy stewart wiseman that gave the company a growth prospect. these initiatives have truly begun to pay off in the form of much better numbers. along the way there's been plenty of downers. morgan stanley came out and gave a sell, sell, sell the analysts conceded the turn was happening, but worried it was being done in an unhealthy way. i thought that seemed a little obtuse sure, i didn't like it that the

company was getting too promotional, but focusing too much on the promotions themselves and ignoring all the work that the new ceo had done plus the company tried to trim back its promotions in it's wholesale market since then, the stock of coach has really caught fire hey, it's nice to be right but since the recent merger, the acquisition of kate spade announced in may less than a week before the kate spade deal, coach had reported a pretty strong quarter. the company reported 2 cent earning beat, slightly weaker than expected revenues, but 190 basis point increase in gross margins, what the company makes after the cost of goods sold,

and a decent rise in same store sales. when you get that kind of gross margin improvement, you're not being all that promotional michael coors posted a 13% same score sales decline over the same period. now this turn is clearly workinging, coach's stock surged from 38 to 42. it's not like coach needed to do a deal but we learned on that 8 i think the tieup makes a lot of sense. kate spade had suffered a lot of what coach suffered when it first took over. the brand doesn't feel as exclusive and as pictupirationat

used to be there's not a lot of overlap here that may sound surprising if you're a man kate spade is very much targeted to millenniaals. even the storings don't overlap much the idea here is that kate spade is boost the brand awareness, coach for example as 23% brand awareness in china kate spade has just 1% think how many purses they can sell with a proper international rollout. plus kate spade helps the company expand into jewelry and apparel. coach believes they can generate 50 million in synergies after the deal closes and do many of the same things to kate spade, develop diluting the brand by participating in so many flash

sales. coach's stock has continued to roof since the announcement, which tells you all you need to know about how the market sees this deal. still the stock is up more than 30% year to date but do you think it has run too much i don't think so coach's stock sells at 19 times next year's estimates. might seem a tad expensive but you need to understand that coach is a rarity in this business a company is rising same-store sales, rising margins and growth opportunities. coach deserves every penny of its premium. here's the bottom line, not only is the turn around in coach still very much on track the company is taking the come back it made, the expertise and applying it to kate spade, and i think that acquisition can fuel still another leg of this phenomenal rally you want to wait for a pull back before you buy it. if you don't already own coach,

i'm going to give you my permission to buy some and then if it hits a low, you can pull the trigger and buy some more. >> caller: boo-yah jim >> what's up >> caller: looking at children's place, will it be taken over >> it will not be taken over the reason you want to own this, the stock has been a monster barn burner in the last year, so don't expect any retailer to continue to roar, you don't want to own this for a takeover because it ain't coming. let's go to joseph in virginia >> caller: a gigantic bua from virginia >> how can i help? >> caller: i've been watching cnbc since 1991. >> thank you go ahead

>> caller: when i started investing and i've been watching your start since it started airing >> not bad >> caller: and i have never not made money on your advice ore recommendation of a stock. >> you get a lot of social media news, and a lot of fake stuff. >> caller: i'm a little disappointed in donald trump for not fed chairman >> if he calls me, i will serve. >> caller: my question is about lululemon. i've got investment managers investing in this stock 77%. do you think it's a good stock >> that's lululemon? here's how i feel about lulu

the stock did not get a bump after that good quarter. i thought that was a mistake i lost faith, i was wrong. bu but here's the great news, the stock hasn't moved so all during that lost faith period while i was in the wilderness, i have been found and the stock's only 32. i'm going to say -- >> bye, bye, bye >> that last quarter was very good i'll take it i got canada goose price it's time to take a victory lap. the stock's been on fire and that's going to continue it's not just amazon and whole foods on fire. there's a merger between two big industrials still in the bag i'm going to give you an update. and a thank god it's friday

edition of "the lightning round" and of course a look back at "the week that was," so stick with cramer. with e*trade's powerful trading tools, right at your fingertips, you have access to in-depth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. it's your trade. ♪ ♪ e*trade. ♪ ♪ start trading today at etrade.com

earlier this week, my partner on "squawk on the street" david favor named the emanating state of the market this year. while our heads are still spinning from the announcement from amazon this morning there's been a girth of good deals in 2017. while we wait for more companies to start acquiring each other, i think it's worth examining a pending deal that was announced late last year to show you how much value can be created by -- >> merger. >> thank you, by mergers that's our merger bot just in case you were wondering. i'm talking about the merger between plaxair and linlinda.

many years ago practixair and linda. in date december, 2 two companies decided to combine into a single gassy titans i think this one is worth considering, because this deal -- it might come out ahead of time. but if it can overcome a slew of regulatory obstacles and actually get done, this one is a big winner the combination of the american praxair and linda which is going to keep linda's name has made over $30 billion in sales. it is a match made in heaven praxair is a very well run company, linda has the technology, put them together and the whole is worth more than its parts. the companies expect around $1.2

billion in annual synergies. how will it work all right when the two companies merge next year, linda's shareholders will get 1.5 shares for every share they own pr praxair share will get -- stronger balance sheet and excellent squash cash flow so what will a praxair-linda combination look like? right now praxair and linda are nguyen a one and two. but after the merger, they will be the top dog the hope is they'll complement each other pr praxair is more -- you've got a

company as diversified across end markets and region the new linda will get 43% of its sales from north america, the middle east sand africa. when the proposed deal was announced last summer, there was no guarantee it would be a sure thing. in fact when praxair reported, they had to reassure investorings on a deal distraction. as ceo steve angle put it. we're not debating car design philosophies here, or how to innovate has mobile supply chain. oxygen is the same all over the world, and our products don't travel that's why our businesses are and will continue to be locally managed. in other words given the way the industrial gas business works, the deal is simply not going to

be disruptive. 1.2 billion. it might cost a billion up front to integrate the two companies they're going to be able to save 1$1.2 billion every year thereafter wow, small price to pay. what do we do with these stocks? if you want a piece of the combined company does it make sense the regulators in germany are not excited about losing one of their champions. and if they need too many sales, either side is call the whole deal off but if everything works out, i think the whole thing --

praxair is much higher margins it can provide a $1.6 billion boost 0 to provide companies it's one of the best deals out there. as praxair and linda -- i think it's only just begun to rally. i think this combination is going to be the real deal that you want to be in. "mad money" is back after the break. no splashing! wait, so you got rid of verizon, just like that? uh huh. i switched to t-mobile, kept my phone everything on it oh, they even paid it off! wow! yeah, it's nice that every bad decision doesn't have to be permanent!

now you can ditch verizon but keep your phone. we'll even pay it off when you switch to t-mobile.

it is time --it it's time fr "the lightning round." [ buzzer ] and then "the lightning round" is over. mark in new york mark >> caller: boo-yah mr. cramer. mark from new york >> all right, what's up? >> caller: i'm interested in sierra wireless. >> well, sierra wireless is almost comfortable we're way too late in this game,

man, you got to go find something else, that one's had too big a move i want to go to jason in florida. >> caller: until you explained the market, i was afraid to invest the market appeared to go against fundamentals synergy pharmaceuticals. >> gastrointestinal disorders, it's a speculative stock, i'm not going to be against it $4, there's some options there let's go to jimmy in california. >> caller: hey, jim. thanks for all you do. and thanks for taking my call. i'm looking at chipotle. >> i want you to buy chipotle. it's almost 18 months after that incident in 2015, with the novovirus. the stock has come back down and i think it's time. joe in virginia.

>> caller: i'm a first time caller, but i've been following your programming since the 2k 9 depthings of tdept in s of the great recession >> what's up >> caller: my question is about black stone bx >> i like blackstone very much i think it's absolutely terrific in that market i want you to stick with it. let's go to bob in florida, bob? >> caller: hey, hey, boo-yah, cramer down in florida, yes, indeed hey, i just got colony northstar call >> it's a real estate investment trust and i don't know what they own so it's hard for me to opine on it. let's go to westley in texas >> a big boo-yah in the big d, jim.

after seeing a 250% return, should i sell some or all? >> i correctly told people to sell it at a much higher price and then it went down. i don't know what moved truecar up so much i can't opine on that because i don't know >> caller: boo-yah, jim, i would like your take on comcast. >> i love comcast, they have unbelievable cash flow, they have got unbelievable cash flow. my travel trust owns it. and that ladies and gentlemen is the conclusion of "the lightning round. >> merger. merger merger >> cramer a boo-yah to you

>> caller: hey, cramer, boo-yah. i'm joe from the jersey shore. boo-yah, baby, jersey shore. >> caller: jim, you do damned good work for us little guys thank you very much. >> jack collins, he was my pick in the draft the guy is the train whisperer >> caller: i think he should be nominated for an emmy. >> emmy? i don't know, tell that to my wife, she's sick of me, maybe it will help. they were playing with the spinners i wanted them out, will you stop it with the spinners i'm sick of them i got it i promise, i promised i would calm down on this. anyway le trading desk 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 we, the device loving people want more than just unlimited data. we want unlimited entertainment. so we can stream unlimited action. watch unlimited robots. watch unlimited romance. if you are into that. but we also want more like... unlimited hbo. can i stop dying now mark? no can't do mi amigo. it's unlimited. besides you are really good at it james. don't settle for any unlimited data plan. only the at&t unlimited plus plan comes with hbo included at no extra charge.

i a foolish consistency is the hobgoblin of the hard line now for as long as i have been in the business, and now we're just talking about from 1979, there were always relationships between groups and companies and instruments and indicators that were considered practically

unviolated unemployment is 4.3%, yet wages are stagnant second industrial stocks should lose some of their luster when our gross domestic product forecasts are cut. third there are always some retailers that do well in different cycles when the economy accelerates and employment is plentiful. you're supposed to buy nordstromings and tiffanys when it's down, walmart and amazon after amazon buying whole foods, even walmart's lost it's sheen they grow at 1.2%.

that's because these soft goods plays have above average yields in a world that's starved for income, yet they're more expensive than almost every single profitable company, when it comes to price ratios and tech goes so much faster and long-term bonds see their yields rise as demand improves, i would not betagainst the bon market, because historically its much smarter than the stock market as we learned today, with and n an -- and an namic quarter when um employment is up, driving -- the inventories are bulging. finally a small group of tech companies have taken on market

capitalizations that couldn't have been dreamed of at any other time they're wildly profitly, unlike, say, 2000. this is driving a lot of old school observers commentators, stock pickers totally crazy. conclusions that have historically held true are worthless. layer on top of that the uncertain nature of this administration, then you have to fall to companies that have growth no matter what hoping they execute to take advantage of that growth if they miss their estimates, then you get crushed because stocks don't go from growth to value overnight. the stoall these factors contrie to major reasons why the vast majority of fund managers are tentative here, they haven't seen anything like this moment

at any time during their careers. they're flying all over the place, playing every rotation, chasing performance and in general trying to avoid anything of value and value is really killing performance here, and that's why people end up buying in dips they're buying what they know has growth at a minor discount in this environment, fang and it's ilk can be scorned but they'll all the ultimately be embraced because when the economy slows, you need to by stocks that control their own destinies and that's exactly what tech has going for it right now. stick with cramer.

there's one huge winner in amazon-whole foods merger. like i say, there's always a bull market somewhere and i

promise to help you find it. i'm jim cramer and i'll see you monday >> narrator: in this episode of "american greed"... ride 'em, cowgirl! rita crundwell appears to be a humble, small-town civil servant. but she's living a double life as a world champion horse breeder. it's a deception that comes at a huge price. >> everything that i've learned about showing horses, you must either be independently wealthy, or you're stealing the money. >> narrator: when this cunning comptroller diverts more than $53 million of dixon, illinois' money into her horse empire, she leaves a city on the verge of collapse. >> people are gonna have to lose their jobs to balance this budget. for what, a horse? for a trophy? are you kidding me? >> narrator: and later... staten island native