isn't it >> it is now you have somebody to talk to about the mets >> juniper, big down day on big selume, but i don't believe it derve here tomorrow at 5:00 "mad money" starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, 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'm just trying to educate and teach you. call me at 1-800-743-cnbc or tweet me @jim cramer who says old dogs can't learn new tricks every day in this market, it

seems like some old line company surprises us with good news, causing investors to buy their stocks hand over fist. >> buy buy buy buy buy >> the resuscitation of these falling stars is what's behind a lot of the strength here the dow gaining 98 points. the s&p and nasdaq advancing new records all around ♪ hallelujah let me give you some examples. last night, att completely out of the blue, delivers a delicious upside surprise, which is why the old teleco stock could leap up like a small growth stock nearly 5% in one day. how the heck did they do it? they gained subscribers and some came in an obvious way, a merger and tie-in with directv that has gone smoothly. at&t is now buying time warner and they give you a hint why,

beyond the need to diversify on the conference call, at the end of the q and a, in an answer to a question about how time warner might fit into the bundle, cfo john steffen said with regard to hbo, customers like it. customers like the opportunity to have that with their phone. so we're just trying to pro-feed what the customers want. that answer was super revealing, because he wasn't even asked about hbo specifically the question was about time warner as a whole. but that wis why directv works s well with them "game of throwns" meet nfl sunday ticket. no wonder people are buying at&t, with its awesome cash flow, much better than i thought and a growth ticker to boot. what is not to like? this stock, letter "t" is still very much a buy, even here

how about the phenomena that is amd? we've been recommending them for a little over a year the stock was always just too dangerous to buy why? because every time the darn thing got you going, got some good, you had to wonrry if the company was going to run out of cur cash but the ceo took care of this. what's drive thing resurgence? a lot comes down to gaming amd makes some of the best graphics chips around. nvidia is the only real rivalry. with amd powering the new xbox and laptops for apple. that's fantastic, especially since apple laptops saw growth on the call, sue tried her best to tamp down long-term

expectations but acknowledged many people are using the processing power on their graphics card to mine currencies like bitcoin in fact, there's so much hot money in amd, i was worried the stock might get crushed if the company disappointed like it did last quarter instead, lisa sue hit a home run. given that amd has positive cash flow, i think it's good to go. there was some profit taking at the end of the day, but is that a problem or opportunity then there's boeing. it's not such an old dog, unless you count the b-17 flying fortress but boeing is doing some new tricks there's some big changes at work that helped the stocks surge up $21, or 10% today. $21! propelling the dow to more rarified territory the ceo said on call, demand is more diverse and balanced across the globe, and customer

purchasing patterns have become more stable and consistent, driven by sustained and increasing airline profitability. in other words, boeing's formally cyclical order stream has become a lot more secular and consistent in its growth hence, how the company with predict a staggering 6.1 trillion, with a "t" worth of demand for 41,000 planes over the next 20 years. that's what i call demand. these joins join macdonald's we're familiar with the resurgence of mickey d's mcdonald's is a complicated story. the best analogy for structure might be the u.s. constitution yep, it's all about separation of powers. in our government, nobody is more powerful than the president, but he has to

convince members of congress to go along with the plans. the ceo of mcdonald's has a lot of authority, but he has to get the cooperation of franchisees if he wants to accomplish anything major that's the secret sauce i don't know if the fries will travel do i look like a fry master? and he's rolling out mobile ordering and promises there will be no mosh pit of customers starnlding arou i standing around. he's experimented overseas so now mcdonald's is winning back people who strayed from the fold at the same time getting them to spend more than a average order. look, i know more than any it pays to be skeptical of a stock

that's run so much but after this quarter, i think the story has a lot more upside. i have to say once again, i still see too much skepticism all over the place in this market corrosive skepticism i should say, because i don't mind critical thinking, never have. facebook made a fortune off of mobile users before the company could speak, the stock fell six points. but the skeptics realized they sold too soon, and the stock rallied back to up a couple on the same numbers that the cynics sold it on what does that sell you? it's too, too dripping with cynicism people are too negative. alas, not every old dog has been able to learn new tricks i've watched the sad fall of ibm. while management knows it needs to change faster, it's not on the right course to compete with amazon, microsoft and alphabet can it happen? sure, but it's difficult for the

old tech dogs to become new ones and chipolte is certainly sick as a dog they're struggling to recover from that damaging food illness story from two years ago the numbers would have been higher if not for the health incident in virginia, along with the pictures of rats falling from the ceiling at a store in texas. while the conference call was good, sales are down roughly 5% in the last few days since the latest round of bad publicity. i like the quarter i say look out for companies that you may have written off, including citigroup that had a near death experience, and we'll talk with the ceo later tonight. at&t, amd, and boeing now join mcdonald's as old dogs giving you some new, refreshing, and darn lucrative tricks. i don't think these are anyone you're ready to roll over yet,

rover. in fact, i bet they all have more room to run and you know what they can hunt, too let's go to larry in indiana larry. >> caller: hi, cramer, how is it going? >> larry, it's fantastic how about you, chief >> caller: fantastic the fireworks are going off for u.s. steel >> yeah! >> caller: i was -- i purchased it back around may and finally doing what i was doing what i was hoping the whole time. do you see it jumping on the bull and continuing? >> i listened to the conference call they had some good integration and execution. the previous quarter was so bad, but the execution was good, and when i see overseas numbers come through, i cheer all right. it turns out you can teach an old dog new tricks >> the house of pleasure >> these old dogs are hunting the market strength and they have more room to run. on "mad money" tonight, i sit

down with the ceo of citi. don't miss my exclusive. then some of the coolest toys adults can buy, but the stock seems to have lost momentum. is the company getting back in the right lane and from the rails to the airlines, the transports have been struggling. what's happening with this group? i'm investigating why they're getting run off the road so stick with cramer >> don't miss a second of "mad money. follow @jimcramer at twitter have a question? tweet cramer at #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.

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♪ snepd some companies don't get nearly enough credit for turning themselves around. i think citigroup is a classy example of that. citi is a long-time holding of my charitable trust, and the company's come back very strong since the stock bottomed at $10 a share during the financial crisis under the wise leadership of their ceo, citi has shed its underperforming assets and generated robust returns while the stock is nowhere near its all-time high, it's made a stunning comeback, and it is up

580% from its 2009 lows. and just keeps getting better. though there are still a lot of open questions about the financials, mostly surrounding how quickly the fed will raise rates and whatthe trump administration will do to roll back regulations, citigroi thin there's a lot to like here but don't take it from me. earlier today, i spoke with citigroup's ceo to get a better sense of what's happening here i need you to check it out mike, you just held citi's first analyst meeting in nine years. in the interim, let's go over it some of the most horrendous events big fines for currency rigging, fraud at a mexican bank, two different failing grades from government stress tests, endless recapitalization how is the bank still in business how is it now on the top in the

good graces of regulators? >> one, jim is, tranks for having me today. we've got great bones, we've got a great franchise, and we've been working hard to take our company back to its roots, and that's being a bank. along the way we were an insurance company, a hedge fund. >> a supermarket >> today we're a bank. and a bank that serves its clients wherever they want to do business so we've been working hard in terms of taking ourselves back to our roots so i think as you know, we shed $800 billion of non-core assets, we exited 70 different types of businesses so we had our investor day yesterday. we crossed an inflection point and we're focused on growth. we're back focused on getting to the returns that our investors expect so we're excited about it.

>> i don't think people realize how far you've come. let me speak for you nor a second you told me listen, we can buy back 7% of the bank, not a problem, regular tfor blessing you're returning capital and getting a good return on your capital. how is that possible >> just to go back we talked about this inflection point. the time we feel is right, because we just come off of a first half where we've had nice earnings growth year over year a lot of our businesses performing well, a lot of our businesses taking share. but as you said, an important milestone was our recently announced capital return $19 billion, $18.9 billion of capital being returned >> 10% of your capitalization. >> we doubled our dividend from 16 cents to 32 cents per quarter and announced a $15.6 billion share buyback. so the number is about 8% of the stock. we can buy back. and by the way, yesterday we announced our intention to buy

back or to return capital dividends share buyback the next two years. again, with the regulator's blessing in there. >> you're talking about $9 per share, mike, in 2020 this is a gun to your own head, you put it there what happens with the recession, what happens with a new fed chair starts thumping bonds and raises short-term rates very quickly, what happens with credit card defaults suspect this too aggressive? >> if you look at the path from consensus estimates of low 5s to $9, the way i would describe it is 50, 40, 10. in our assumptions, that buyback that we just talked about, that capital return, counts for about 50% of the move or $2. >> that you control. >> and that we largely control, right. so that second piece, 40% of that, or about $1.60, comes in

the forms of business performance. a combination of what we laid out for investors yesterday, a combination of a bit of growth, good expense discipline, good credit discipline, the continued use of technology. and share buyback obviously comes into that. and thethird piece is a conservative view towards rates, where we have built into our plan just one rate hike per year so i know you're talking about september. >> right >> we're probably out in december >> because i need to see that interest margin, which is the free money that you get. and you're not building on that. >> we set one rate hike for the remainder of '17, one in '18, one in '19, and one in '20 >> the bank side is all trading at a tremendous premium. if you guys got the same multiple on book value, you would be at 100 now.

why don't people trust your book value? >> i think you have to go back we talked yesterday, we've been repairing and we've repaired a lot of relationships >> coming on our show is part of the repair, i think. >> i agree with that so from a credit perspective, from an earnings perspective, from a business model perspective, we put the company through a massive restructuring, and now we're showing what the company can do yesterday, we really wanted to come out and tell people about it part of that is out there to get this credibility we laid out this trajectory, and the market and analyst reaction was sure, a little bit of stretch in there in should always be stretch in goals. we're absolutely committed to do it and delivering on it. >> wall street likes financial tech that means they want things to where every day you turn the lights on and money is made. yesterday was the first time you designed that half of this

income is recurring income from this business of global payments, which we all love, visa, mastercard define that business for people, because people don't understand how big it is, what it means, and how it might catch on during this period. >> when you think of payments, you should think of citi citi on the institutional side is the largest mover of money every day in the world >> largers mover of money. what does that mean for people >> when you look at the fortune companies of the world, they're moving money through our proprietary pipes that cross through 160 countries. so when caterpillar decides to move money around the world, they're moving through citi's pipes. we know where themoney is, wha their payables and receivables are, we can help with currency transactions, hold their

deposits we can give them the most efficient capital and liquidity structure, can help them move their money. on the other side, that's part of the payments. on the other side, we're the world's largest issuer in credit cards. again, when you think of credit cards, we're not going to be talking about credit cards, just digital payments we'll be talking about our smart devices and how we're using those for debit and credit >> jpmorgan, others, their technology is great. what does citi have that the other guys don't have? >> we have probably the best tech laboratory in the world our consumer business doesn't just operate in the u.s., but 40 countries around the world so a great example, i was in mexico a few weeks ago, and i looked at what we're doing down there. you know mexico well still largely a branch based, consumer banking model technology is coming i told them, you know what i've seen the future of banking

in mexico. you know where i saw it? in asia, in our bank this morning. so the things that we're doing, we can take and move and the things that are working in asia, citi gold is an example of what we're doing right here in new york city, with our citi gold value proposition we brought it here in terms of things we're doing digital, mobile, our new mobile banking app, first bank, 32 functions on your smart device >> i have to ask you, i hear asia, i hear mexico. in the back of my mind i hear trump. do i have to worry about about president trump and your great areas of expertise, which happens to be areas we seems to be challenging in terms of trade. >> you know, we talked yesterday that trade is not dead, right? trade is secular it's not cyclical. i gave the stat to people, really interesting 2005, 9% of the fortune 500 companies were from the emerging markets. fast forward to last year.

30% of the fortune 500 companies are from the emerging markets. that trend is not going to continue when we look at growth rates, sure, the whole world is slowed. but the relationship between the developed and the developing markets very much in tact. emerging markets are still growing at nearly two times at the pace of the developed markets. >> one thing that i've been thinking is, morgan stanley, wealth management, smith barney, can you replicate that elsewhere? are there businesses you're looking at right now that have doing to do with the macro growth in the united states, that can be needle movers between now and 2020 >> look and how we've defined growth we've gone from 60 consumer markets to 40. we've gone from covering 32,000 institutional clients to 14. we think within our own target client base, there's plenty of growth when you look at what we've laid out in that trajectory, that

growth is driven by low single digit growth rate, good expense discipline, reasonable cost-to-credit, and capital return so we have lots of levers to pull >> you had to add 9,000 in the regulation and compliance. would a president trump deregulation ease the brake pedal, allow you to change that, and make it so you don't spend so much money on regulation? maybe free up more capital >> i think what you see is, one is, earning and maintaining a license to do business is critical for us. and making sure we do it right so that's an investment of who we are in our future, and we're committed to that. but at the same time, i would say those areas, like many areas in banking, remain ripe for the introduction of technology to help us. and make us smarter. artificial intelligence, robotics, all of those things we're using today, and we think there's a terrific trajectory in terms of how we can use it in

the future >> wall street loves credit cards, they love the american express quarter, mastercard, visa but this costco deal was much bigger than people realized. why? it's just a chain of 600 stores. why was that so breakout for you? >> think about it. if i said jim, let metell you about a deal we're going to do with a terrific partner, one of the best retailers in the world. and in that deal, we're going to bring in $11 billion of receivables. we're going to bring in new card holders, and those card holders, in a single year, are going to spend $100 billion on that card. think about it think about that >> amazing american express let that one go. >> it's a great partner and great company, and the usage of the card holders has been great. >> do i have to worry about amazon and your credit card

business >> you know, people talk about the amazon, what people miss is when you think about the amazon effect and cards card usage has gone up sure, amazon benefited, but others benefit today, only 20% to 30% of purchases in stores happen on credit cards about 100% happens online with credit cards if you think of our partners, home depot and american and costco, and all of those, we have a benefit from that >> we'll be back with more of citi's ceo in a moment

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we're back with mike corbat, citi's ceo who the heck is mike corbat, where did he come from and how did he get through a period where many people i think, bet against your bank to fail. >> well, who i am is i'm a

34-year veteran of a firm. last week, i celebrated my 34th year it's the only job, the only company i worked at since graduating from college. and i have to tell you how proud i am to lead the institution you know, it's a company with a great history. it's got great businesses and great people all around the world, and it's a real honor to lead it. >> there has to be some dark hours. you failed the fed stress test twice. kind of embarrassed, because i said, corbat has to be doing better than this, but there was big legacy what do you do for young people out there, what kind of -- what inner strength do you reach when you know the next day the paper is going to be, citi flops >> we talked today, we talked to our young people one of the challenges out there for people is they're afraid to fail fail is not a great thing, it's not a fun thing. but think about in life, you learn from failure through those episodes, i learned a lot. we as a company earned a lot

i took responsibility for those issues, as i should. and by the way, you saw us come out and saw what we've done in terms of capital return. you've seen what we've done in terms of living will we took the company that people said was too big to manage, and we were the first ones to get through and get our living will approved and that was the hard work of the team and the rebound from some setbacks along the way. >> now, all during that period, people would think did you have the money to do rnd, but i teach hearing technology, technology, technology they're getting rid of fica scores for a group of people they believe are going to prosper, because the algorithms said they were going to prosper. there are banker in china gave the commencement speech at columbia engineering, said they opened 2 million loans in china with technology producing a lower default rate is that where you're going >> think about it, theworld's largest mover of money, think of

the big data that we generate and -- >> and you mine it with what >> we got 120 million consumers who interact with us we have companies, governments, universities we see all their flows, and our ability to take that data and use it probably second to none out there, and the investments we're making in technology, we think paved the way for the future >> early years, 1980s, you're at harvard. people there, i know because i went there, all you did was figure out should you go to solomon, goldman, maybe morgan stanley. who knows? but then now, i fast forward, now they want to go to google, facebook, amazon, who knows? are you finding people, good people who still want to go to a bank, even despite the reparational problems that banks have had >> we're finding great people. when i talk to people, there's probably not a more exciting time to be joining banking

we talked about technology we talked about what's going on in the world and the ability right now, for this group of people coming in, to define the next chapter of banking and what banking is going to look and feel like and how it's going to change over the next 10 or 20 years, it's a great opportunity. >> so the bank gangsta image, that's over, it ended? >> listen, we're a bank, and we're using technology you know, we talked years ago about setting the goal of wanting to be the best digital bank, and we quickly changed that mantra, recognizing in order to be a bank, we're going to have to be digital. >> i want to talk about something that is a little atherial office. >> i don't have an office. i've got a cubicle >> what does that do for the team, what does it say >> one is, i'm a huge believer in communications. so in a day-to-day, where people

are tweeting, chatting, and there's a distance in those communications, i want to create, construct what we call constructive collisions in our people's day information moving in the firm as i described we're operating in all these places and products and i want that information moving through the firm so we felt as a leadership team, we can't ask people to give up their offices or what they do until we do it so we went, we moved to cubicles, and i would say that while people were uncertain at the start, the team loves it information flow, there's no doors, we come and go from each other's spaces, we hold meetings together, there's a trust factor, and it's resonating with the rest of the firm what we're doing around the world is creating this space that's very collaborative and creating out of that lots of common space for our people to get together >> does any of this stem back from -- i follow harvard clemson football my man was dan jacobs.

he was very high round drafted one other guy i followed at harvard, mike corbat, because he was about a 230, 240, 6'3", offensive line i said he's going to go high did you ever feel in the dark hours you should have gone for the draft and played for one of those teams? you said marginal teams, i don't know if i want to play for them. >> jim, i haven't looked back. i left, i went to solomon brothers my knees still work. my nose is still where it should be my teeth are in place. >> no concussions. >> no concussions. so i feel good about the decision >> so you were having fun. but i have to ask you, it couldn't have been fun, it -- i remember you calling me saying listen, you're going to read about a mexican fraud, and we have it under control. i mean, a mexican fraud. i mean, mike, you didn't know about bantam x how do you know the controls are in place

how do you know about cyber security how do you know every day you're not going to get hit >> we talked about the 9,000 people we've incrementally added. the money we've been spending from a technology, a cyber defense perspective, those are important. so part of what we've been doing over the last several years is making sure that those defenses and offenses are in place. >> all right now, daily things we have to worry about. we have to worry about the fed raising interest rates you said maybe one hike. we have to worry about a new fed chairman do you think wow, wouldn't be something gary cohen came in is there anybody you want to be fed chair? >> we try and stay in the middle on all this. so janet's been terrific president trump cited that we know gary, know gary well he's a very smart guy. so both capable. we'll let the process pick who that is. but in terms of policy out there, we've talked about, we

see a fed rate hike along the way. by the way, higher rates are a better thing for us. and so we actually perform bet we are a bit higher rates than where we are provided those rates are coming up for the right reason, maybe a little wage inflation there, that's a good thing for the u.s. economy. >> one last question -- do you feel with this -- you're on tv this is a profile raise. you have been low profiled, that this is the right thing, it's time for people to know that citi is not some bank that was teetering, but a bank at the top of the regulatoregulators, and better business model and should be valued much higher than a traditional bank >> we came out and talked about a bank that's restructured, refocused, meaningful capital return, dividend increases, stock buyback, and we have a great trajectory around our products and businesses, and a business mod well the usage of technology that we think has a

lot of upside. >> thank you, mike corbat, who is the ceo of citi good to see you, sir >> thank you, jim. experience unparalleled luxury at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer.

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it always hurts when a once fabulous growth stock seems to lose its momentum. and that's what happened to polaris industries, big maker of motorcycles and all terrain vehicles, one we used to feature all the time when it peaked more than two years ago, its stock proceeded to cut in half after a couple of years in purgatory, the ultimate maker of play things for the rich finally, is it getting its groove back? i hesitate to go there, because this company frankly, it has disappointed a couple of times now, i started recommending polaris in january of 2012, but over the next three years, the stock gave us a 150% gain. that's pretty good then the company started reporting miss after miss. so we moved on, we went for more

consistent businesses. however, polaris' stock is climbing again, up 9% for 2017 last week, the company delivered a surprisingly strong earnings report so could they be making a comeback could be but to understand what's happening now, you need to get your head around why polaris fell off a cliff in the first place. in 2015, the revenue growth came in at just 5%. that was down from 19% what a deceleration the near before last year, it declined by 4% earnings were slowing from 23% growth in 2014 to just 2% in 2015 and get this, shrinking by 48 hernand48% last year. notice profitability cutin hal stock, cut in half reason they made a series of missteps that resulted in higher costs and shipment theys in the motorcycle business.

and they produced too many snowmobiles and atvs it didn't help that the dollar got freaking strong, or that they got hit with increased competition with the jeez or thor the winter was mild in 2015. execution, main problem, execution. because it was terrible. polaris just couldn't shoot straight things only got worse last year when the company had to recall a host of different products first of all, it was a voluntary recall on the off road vehicles. then some recreational off-highway vehicles were recalled because of a fire hazard every time they looked like they were getting their act together, there was another recall that's how your earnings dropped

by 48% in a single year. that's where polaris was not many months ago. the new models were delayed, it just recalled products, and as a result, the company's canadian sales declined by 20%. in short, what a mess! and at the beginning of this year, things looked very, very grim with polaris announcing it would be shutting its victory motorcycle business. that's one of the reasons we used to like the thing is the victory motorcycle, and they're shutting it. but that's where the turn started, when management threw out the kitchen sink and cut numbers to reset expectations. i always tell you, they can reset, you can start anew. finally, after years of messing up, polaris realized that it needed to start underpromising again. so that maybe, just maybe it could overdeliver in the future. the company now set another recall in march, 19,200 of its

sportsman all-terrain vehicles because of problems with heat shielding and the exhaust springs. then more recalls in april 51,000 ranger off-road vehicles. and 3800 sportsman atvs. the stock fell back below $80. then in april, the company managed to report a decent quarter. the inventories were down big, that's good. and the business started to grow again. even better, management's commentary was just darn outright bullish in the conference call. after the latest round of recalls, the ceo didn't cut the company's full-year guidance, in part because he lowered it in january. again, if you got excited about polaris, guess what? what do you think burns you in may? yep. still more of the products were recalled a bunch of snowmobiles with steering control problems. that's what i want a snowmobile

to do. but that wasn't enough to derail the stock. it started moving higher the question is, would they surprise to the upside again last week, we learned the answer is yes yes, they could. not only did polaris give you a eight cent earning increase, and management raised the year-end guidance and polaris' international business has gotten strong the stock rallied from 92 to 96. however, since the quarter reported last thursday, the stock has come down to 90. it's actually below where it was before it reported because it caught not one, but two analysts downgrades. the problem? some of these analysts think the stock is too expensive given that demand is not great polaris is more pricey than its peers. it sells at 17.5 times national

earnings estimates and brunswick, the yacht maker we've had on multiple times, sells at 13 times next year's numbers. thor, which did not put out fab lo -- fabulous nirm, put out 14 ts investors are underwelled by the company's new models and to make it worse, what do you think happen should i both toer to say it yeah, recall recall, 16,800 recreational vehicles designed for children, had a fire hazard problem. you know what? i think that's a suboptimal situation. put it together, while polaris is turning things around, the story is just too risky for this guy. the recalls make this stock too dangerous. here's the bottom line, i have to give the ceo and his team credit for getting polaris out of a really bad situation.

as long as these product recalls keep coming, i think the stock is just too risky to own because execution matters, and the execution here, well, you fill in the blank. "mad money" is back after the break.

sit time it's time for the lightning round. [ indiscernible [ buzzer ] and then the lightning round is over are you ready, skedaddy. scott in ohio, scott >> caller: hello, jim. thanks for taking my question this afternoon >> of course

>> caller: so i have a position in schw, it's done very well lately wondering your thoughts? >> i want you to keep it, because i do believe, look, we're in a bull market and rates are going up and that is good. let's go to joe in maryland, please, joe. >> caller: this is raymond >> what's up >> caller: thank you very much you are my filter, my guidance to the market. >> thank you >> caller: your results have contributed to an early retirement >> yes >> caller: thank you very much we thank you very much >> thank you >> caller: you're welcome, more than welcome thank you. i'm calling about sap, sir >> s.a.t.? oh, s.a.p., i like it very much. they had a good quarter. >> buy buy buy >> not as good as oracle, but it was good

oh, let's go to joe in maryland. joe? >> caller: jim, how are you doing today? >> good. give me something to work with >> caller: i got two things to say. first, the eagles! and boo-yah to you, buddy. >> let's hit them. >> caller: yes is this, i had 1900 shares of underarmor. about a month ago, got rid of all of them. bought atfg, which i had already 400 acquired from work what do you think of the move? >> i like that move. i like the air transport business look, i suddenly start to like underarmor after it declined hunl but i'm a nike guy and so is the nfl! maybe i'll take one more call. i feel very good and protected why? because i have a great offensive line in front of me. let's go to greg in pennsylvania greg hopefully from the eastern pennsylvania greg >> caller: keystone state

boo-yah. >> that sounds like a pittsburgh boo-yah. >> caller: clinton, p.a. >> go ahead, what's up >> caller: jim, thanks for taking the call and your expertise. jim, buys general electric a little at a time on the down swing. is that a good idea? >> you buy it down here, it's okay this has been a terrible stock talk about a place -- >> the house of pain >> you send an e-mail, i think you have to say house of pain with a zip code. that said, they have a new ceo coming in. we'll see what he has to say and then make a judgment and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by - you got here? this bad boy is a mobile 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?

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all right. what the heck just happened to the transports one after another rolling over just when we expected them to be rallying the transports are one of the most sectors in the market so this week, this is becoming unnerving to me. with the broader market hitting new all-time highs again today, we've got to be concerned about this both the airlines and the rails have seen their stocks get obliterated. and the whole pulverization i find it shocking take today's news about norfolk

southern the railroad reported a terrific quarter with solid cargo growth down the line. but when we reached the question and answer session of the conference call, the knives came out. the whole focus was all about the autos, specifically how bad automobile cargos can be in the second half. when we talked about the industry last night with magna, we had to address gm's ceo's comments about a decline in car shipments. today, ford didn't give you much hope either. don't see much of a turn around. next thing you know, a perfectly fine quarter from norfolk southern produces a real hammering. i guess we should have been ready for it after the ceo lowered the boom at csx where the miracle worker ceo worked no miracles and we got a restrained outlook.

union pacific reported what i thought was a blowout quarter, with every single line item being treferrific. but then the ceo came on "squawk on the street. the man was so glum, that it made me concerned that the second half could be a real downer i don't really believe that to be the case. jees, guys, get a little fired up these rails all benefited from a resurgence in coal but i the those could be going away, and let's never forget while the president favors coal, it doesn't mean utilities, the biggest customers do they try to phase it out, switching to natural gas it's not just the rails, you have to look at the pa tetic airline stocks this group has been a juggernaut, but this quarter so far, wow being greeted with a thud. again, without any real glaring

number cuts, we're getting an amber light for further investment just like the bad old days, there's too much competition, except this time it's from overseas that hurt united and continental. airlines are just putting the hurt on any american carrier with a sizable international business these stocks are getting cheap again. we know from boeing's amazing quarter it won't be easy to get new aircraft, so don't expect a lot of competition but the group is heavy to say the least. as long as the transports are in trouble, we need to be at least a little worried about the market so what's the best hope for reversal i would say it comes from united parcel, which reports tomorrow people are expecting a very good quarter, given the fast shift to e-commerce in this country ups should be a huge winner now that online is ascendant fedex did a great job, but the stock is in neutral. perhaps ups can get it going

again. fingers are crossed. i can't stress enough how important this sector is to a rally. transports equal commerce. transports equal commerce. the more commerce we have, the better the earnings. the better the earnings, the better the stock market is this group sure needs a break. and also, from southwest when it reports tomorrow, tune in tomorrow "squawk on the street" when we'll ask the ceo gary kelly to tell us what's really going on in this incredibly shrinking sector stick with cramer.

>> sold facebook after hours i like to say there's always a bull market somewhere, and i promise to find it for you right here on "mad money." i'm jim cramer, and i will see tomorrow where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ first up is carmen lindner, selling a delicious new twist on an old camping favorite. hi. my name is carmen lindner, and i am the founder and c.e.o. of gotta have s'more. i'm here seeking an investment of $75,000