nine heads it was a breakfast burrito >> delicious >> exxonmobile is churnin' >> i'm melissa lee thanks so much for watching. see you back tomorrow at 5:00. "mad money" with jim cramer starts right now "mad money" starts now hey i'm cramer welcome to "mad money. call me at 1-800-734-cnbc or tweet me @jim cramer not all rallies are created

equal. some a whole lot more equal than others the dow gaining six points, s&p rising .1%, nasdaq climbing 1.15%, falls into the more equal category before i go into this let me explain what makes for a good and bad rally. there are some thing as bad rally. i like a rally that involves the financials, specifically the banks. since that implies the economy is healthy a bank rally is as solid when bank stocks do well that means there's more credit being lent and employment's healther small businesses feel confident. big commercial real estate projects that will put a lot more people to work are getting done the government will get more

mergers so it will be good news for the investment banks in short with the bank stock rally it's a sign stability and prosperity can be on a rise. yes, i smile when jp hit an all-time high or when bank of america jumps if this session. i've studied ballots for 35 years and never seen a bad one that's led by the banks. strengthen financials is a pre-cursor to berd things. what else makes for a healthy rally? as the banks go up we like to see the recession stocks go down there i'm thinking about really good companies clorox, proctor & gamble, coca-cola, we want those stocks to go down a diversified portfolio is never a bad thing.

not if you expect the economy to roar which is what the bank stock rally says the reason the bank stocks could be going up is because interest rates are headed higher and the federal reserve supposed to tank in december. isn't that bad at most points my life as an investor i would have agreed but the market competition is really lying here, it's being lagging for some time. it's okay for the banks to make more money, it's okay for the feds to normalize rates because the economy's pretty healthy it doesn't make sense to keep bank low just to bolster stocks. not from these lower levels, we need many more rate hikes before

we need to start worrying. higher rakes incur the banks to do more lending, that's good not bad. we don't want the feds to tightening mindlessly and fashion like stocks did in the late recession, that's terrible. we want thoughtful rate hikes and that's what i expect for us to keep getting. we did some strong numbers this morning. and the president's finally talking about tax reform, which if it passes it will force the government to borrow more money which mush it is rates high. it's possible impact on inflation, the president's plan, i'm unconcerned simply because i don't think the congress can pass the president's tax plan. healthcare's always a thorny issue, tax cuts always popular, a lot more popular than a

medicaid cut in many ways the gop leadership is the same problem with tax reform than they had with healthcare some legislatures care about balancing this budget. others want to make sure the plan doesn't look like a give away to the rich i don't know if paul ryan and mitch mcconnell can get everybody on the same page will we get tax reform, maybe. i think it takes a long time to get done it's not something you should count on when making decisions about your investments it's not on the horizon. i don't mind the reason why interest rates are going higher and i'm grateful the banks are leaders. i like to see the retailers go higher retail, i'm so excited to see some of the retailers and big gaining list, the s&p. it sounded a little too cautious on its conference call now it's

coming back in a big way, i'm thrilled to see burlington stores and ulta beauty going higher the biggest lose in the dow today was a stock of nike. i think that decline has more to do with endless heights and sneaker prices shoes aren't so expensive to the economy, yet instagram the face not the feet finally, i like the tech up, in particular the type of tech that goes into the system and cars. we know that's happened which is why the stock rated 8.5% in the recession. tech instruments, analog devices even tech data, the idea that mike ron's buying new equipment drives up materials, among others, you know how much we like the stock of land research.

we want to have the strength and the entire tech campus not just in the fang stock. when it's just fang, facebook, amazon, facebook and google it's too narrow, which is the opposite of a well-exposed rally. i should name there are positive researches about the fang names so they did participate but they are not good tech leaders. you want more signs of health? i've been a fan of sin that is, the company you go to whether you need to buy uniforms which is precisely what the stock just reported in the latest report they made a major acquisition. final sign of a great rally, the transport is one more record high today the railroad which moves heavy goods are lev tating lo jikts, the company i regard as a most important trucker.

fedex is away from the high. i mention recession stocks got hit today. you don't want drug stocks as leaders, they were down today, good sign. same goes for the utilities which got hammered today's rally turned into many positive factors that work here not just a few enjoy it, october's coming which means we have to hear about the long history of crashes in that month. i know after trot out my experience, traitor during the last crash of 1987 it's a big anniversary year so don't get cocky. that said you'd be crazy not to feel good about today's action tony in california >> caller: i wanted to ask you about digital realty trust they hit an all-time peak a couple weeks ago it's been sliding down ever since. any thoughts on that

>> you know i think there has been -- weave been doing this series which has the people worried about this particular data center business i'm saying don't worry about it, we've done enough work on this show to tell me it's a red hot chance to buy. jerry in florida jerry. >> caller: yes >> what's up >> caller: jim this is jerry a big sunny boo ya from the greatsy great city of cocoa florida. we appreciate what you do for the small guys out here trying to make it work. i'm calling regarding martin mer yet that material >> right >> caller: i bought it on the up tick right after harvey and since it's kind of changed now we had a good day today, there was a good up tick on it today but i'm curious as to what you're -- you might be as to

whether to hold on to it for further -- i mean it's been a lot higher >> i like it i think martin materials is a good company, i am not concerned it's a great long term for play. jerry in florida >> caller: hi thanks for taking my call. go ahead i'm sorry. >> go ahead. >> caller: allergan agn has a space. i w greedy and didn't sell it and now there are other problems and i'm getting conflicting evaluations. >> jerry i think the stock is inexpensive, my travel trust owns it. i feel suffering myself for this one for all the things you just said i had a chance to sell higher for the travel trust, keep telling club members on plus.com that it is too cheap to sell and

that's all i can tell you. too cheap to sell. we bought some down here there is such a thing as a bad rally today was not one of them there were positives for many companies but that doesn't mean you get cocky but it does mean you can be a little less sceptical. cyber security back in the news is it time to let palo alto out of the box it's been a wild ride for uber, but can the ceo guess ride the ship i'm sitting down with the ceo of lulu lemon to see if it can set the pace in this market. stick with cramer. whoooo.

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. into the huge equifax data breach, the worst one in history because the hackers got everything they needed to still 143 million identities including mine you'd think the cyber security stocks will be on fire so you have to believe many companies will spend more to protect their data yet the security stocks have barely budged, in some cases they've gone down since the news break. take pan w, the pine -- here's a market that has fallen from 200 dallas down to107 this past april. since palo alto's been able to -- credit initiated covers on under performed rating, argumented the stocks performed too much and the stock may not

be able to determine the ratings. so is the market about obtuse here or is there a good reason the stock hasn't run let's take a close look with mark, he's the chairman ceo of pa palo alto, good to see you mark. have a seat. i have to admit i am surprised that your stock did not run in the face of these hacks but i recognize credit sweeps take down a new territory they feel your stock is overvalued because you can't grow as fast i look at it as undervalue because you can obviously grow faster >> i'd think we have great opportunities in front of us, i literally came from our analyst day we do every year i was telling our analyst what we do on the security, not just the network security but in point and cloud security and the

application framework, new way to consume security innovations through a platform >> let's say i am a consumer and there is a customer of pal toe alto do i call you guys and say i am really worried that somebody's going to get in, i'm a subscriber will you help me? >> that's the beauty, that's the problem if you have to do that that's one of the problems in security today which is what you have to have happened is highly automated prevention if you have an exploit or a vulnerability which can happen is if it's identified you find if you have it anywhere near your environment and it's aut matly updated and fixed. >> apparently there was little

things where it wasn't fixed how do you know you get to it? >> everybody's got their own unique environment so they don't know all the detail with the equifax situation. in lot of cases we see capabilities sets the companies are running might actually know the answer before it's a problem but doesn't make it every where it's supposed to go before there is a problem companies have been runned desperate capabilities for a long time and that's what we invented to say you need the stuff to be orchestrated and take the humans out of the process so somebody doesn't have to get alerted requested go fix something. >> the scc hack, the federal government order that you come substantial, and they seemed they were unweary about what happened >> i think it doesn't matter what intersurprise it is everybody's suffering from the same problem, it's not because

people didn't know what they were doing, if you wanted to do security you have to buy a, b, c, d, e, security after security and get it together. >> at the same time on the conference call because you're a tough guy who talks about the competition, you said you took an 8-figure replacement from cisco, seven figure checkpoint, it's not just new business but you're taking it from others >> which we've been doing for a very very long time. >> that's why i was troubled by the credit report if you're doing so much better why isn't that possible? particularly because you came on our show and said look, we add a sales force issue, we had to be able to make changes, we split up or territories too often. and you did it the next quarter. >> one of the thing i tell the

team internally if you're in a previous condition like we are, very quickly all organically you have to execute very well so we're trying new thing all the time to make sure we can grow well into the future and we got a few thing wrong on the sales stuff, we fixed it right away we're half way through all the things we need to do but they're paying dividends already in q-3 and 4. >> now the equifax was so big i have to believe some of your sale people not just making outbound calls but got a lot of inbound calls, this is serious >> yeah, what happens when you have major breaches like this we don't case the ambulance, nobody in companies appreciates that. if your security company's dialing in the next day saying, first of all i can stop that, you're going to be ignored and probably not get invited back. our approach in all these is to over time say if we can be helpful and talk to people about

things we'd take the opportunity to do that how to think about things, get the automated prevention, and after the fire's out for whatever company, and you're thinking about the architectural design for the future, that's where we get to come into play >> if i were a big company i'd call you into the boardroom and say you tell us what we need to do, i mean you, because i think you got the right story. >> i appreciate that >> okay that's mark the chairman, ceo of palo alto back after the break

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morgan stanley

. for months the news coming out of unner, the ride sharing titan has spread less like something you expect to see in the wall street journal and something out of a supermarket tabloid or soap opera. reports of hazing and alcohol trenched company events all in a mass effort of key executives. we learned uber's founder will be telling down, thanks to pressure from the company's biggest shareholders but the drama didn't stop as a replacement for a ceo wen on and on all kinds of names were thrown around adam bayne, ge retire's ceo, facebook ceo, but many didn't want the job because uber's so

troubled at the moment at the end of august, the company picked dara. he's the long time ceo of expedia. they picked him to take other. while other executives were known i think uber picked the right man for the job here and i'll tell you why. normally we don't spend much time discussing privately held companies here on "mad money" but uber's a huge business that effects a lot of people. we care about what happens to uber more important, i spent a lot of time criticizing boards of directors for failing to fire chief executives who obviously done a poor job of creating value for shareholders that's why when a company does something really right i think they deserve praise. let me break down why exactly i believe uber made the right call when they hired dara the key here is that he did an amazing job at expedia, and the

two situations expedia 13 years ago and uber right now first let's talk about his record in august of 2005 i see interacted media businesses spun off ex exceed ya as a separate company. dara had been the chief financer but with the spin off he was giving the ceo spot at expedia he ran expedia for 12 years. how'd he do it expedia started trading on its own at 22 bucks. currently trades at 146 and change that means if you held expedia you now have more than 550% gain the stocks has more than section opportunity six opportunity ld over the last five years there's a reason the stock has been under fire.

the leadership has been incredible, expedia seen sales more than quadruple. and the earnings they've exploded higher. how did they do it and how does any apply to uber? can we do it again back in 2005 online charges like expedia they were a new thing. expedia with price line trands formed the way people booked flights and hotel. going to the days of travel agents working out a physical brick and mortar -- companies like expedia find you the best prices to put it in contemporary terms, expedia and priceline were the uber and lift of the travel agency when he took over expedia the

company has 15 billions in annual bookings. as of last year, $72 billion in bookings this wouldn't have -- this would have happened with or without expedia, it was a move everybody embrace. dara did an excellent job of ha hard necessarying a trend. in 2016 he bought a control interest in trif goes, the website that compares hotel rates across booking sights worldwide and this has been high growth assets for expedia since the deal last september they spun off trif goes as a separate company. the deal made a lot of sense for expedia shareholders the gape changer was when expedia purchased orbits for $1.6 billion in february of

2016, i think it was a steal now that they finished integrating the orbit's deal it's really starting to pay off. in 2015 he snapped up home away. that's a vacation rental site for 3.3 billions a lot more like air bnb. put it all together, he did a lot of things at expedia that he now can repeat at uber he built a company when tremendous scale that gives it a major leg up when dealing with hotels, rental agencies and airlines he knows plenty about mobile perhaps most important, he led expedia through a period of adversity and a company came out stronger on the other side during the great recession travel fell off a cliff and expedia looked like it could be in trouble after a couple of years of

dechange it came back with a venison and expedia never looked back he's still got a lot of work to do, of course, his predecessors travis call nick was a talk first, think later type of guy he's already demonstrating a much steadier hand and i think he made a right decision to apologize. here's the bottom line, after months of flafing around uber finally made a great decision when they brought in expedia's dara to run the company. this unicorn still faces a lot of challenges for starters he needs to figure out how uber can turn a profit, but maybe just maybe when the company's ready to come public in a few years it might actually be worth owning but this man's at the helm paul in nevada >> caller: jim >> paul. >> caller: i wanted to know

what's going on with sierra wireless it did well in the summer but since july it's dropping down about 30%. the leadership's been there for a while, management's, i don't know what's going on who do you like in that space? >> i like sierra wireless in that space if we're doing wireless data communications these days, you know you're going to end up -- you're going to end up wanting to like broad come avgo has been equally troubled it's a stock i talk about, we like it very much but it can't get out of its way either. it happens to be in a funk right now but i am a believer. chuck in california. >> caller: hey jim, first of all i want to wish you a happy new year. >> oh thank you, same. >> caller: then i want to know what your thoughts are on the advent of the electronic cars

powered by lithium pat batteries. what stocks out there that might be involved with lithium batteries? >> alb, i think is the one right now people are really really focused on and i think that makes a lot of sense i actually would buy alb right here, i'm waiting for a spin off of another company that's going to be a pure play into this business which we don't have it yet, which is called fmc those are the two plays. alb's more direct but fmc's terrific too how about arthur in new jersey >> caller: jim i wanted to ask you a question about a technology known as old meanted reality versus virtue reality. i took a petition position in a

stock called high max. what do you think of that stock? >> it's a high risk stock. it's a taiwan stock that i can't get a good read on as long as you know it's high risk you're welcome to own it. uber's got some challenges but they made a great decision in hiring dara much more "mad money" ahead. the athletic power space has been a downward dog. is it safe to say it's going to be a buyer opportunity what do some sneakers are in common more stick with cramer.

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generally speaking it's a tough time to be in the athletic apparel space. nike just got slammed today. numbers don more than 40% for the year finish line and foot locker total dogs lulu lemon down 80% year to date it looks like the yoga inspired chain has turned things around for certain. lulu's giving us two strong earnings reports if a row, indeluding sclents numbers at the end of august. i think it's worth asking if this stock is the retail that's ready to run le ron is the ceo of lulu. mr. port von quick back to "mad money. good to see you. i set the story up in order to be able to shoot it down the fact is you're not an

apparel athletic company there's no way that a company that has a mind velocity meditation lounge at its brand new new york store is an athletic company >> that's what we've seen recently when people talking about the athletic sector having a whole time we're not a foot ware brand, we control all 421 of our stores. based on the world of human connection and product and the controller found distribution continuing to lead the market we've created. athletic and mindfulness is the position we're proud to be in. >> i have great, i'm sure you do respect for nike, the fact is that model got disrupted they are in the hands of companies not in their destiny with the product being football. you never had the foresight to never lose control even when

people thought bricks and mortar was dead how did you know to keep it? >> if you think about the issue of how people live their life in the evolution of athletic mindful we know for a fact people continue to crave human connection they may not go to the mall that much, but ultimately people don't want to be stuck to their phone and they crave human connection that's what our communities do so well, that's how we have such an incredibly productive store we go into communities and connect with ambassadors we that you about the 2500 ambassadors around the world, whoever they are, they give us the opportunity to listen and be curious and about finger on the pulse on everything that's going on around the world. >> tell me about about "this is yoga" in china >> it was a global campaign we launched last may. we got 50 million views --

>> how many? >> 50 million. so definitely a product in china and we got 25 million views for beau men and women so the second half of q-3 and 4 we're going to be targeting all these guests that are going to be exposed for the first time. >> it's funny i went on twitter, because everyone has a few in your company, and by the way, it's 99% positive. somebody asked me does it seem like more men. i guess that's true. >> men has been the best focus the business has grown 23 to 25%. and adding only my 3.5 years i've met a lot of guys that don't know we have men's product but i never met a guy after trying out product say it's not for me >> i wore the stuff all summer, my wife calls it the club. i go to the club i either have a suit or -- you can't wear that,

got to wear the a, b, c. >> there you go. >> you had great momentum coming out of the quarter and it's continuing >> we got these great presence, china is a huge focus for us, going 350% yoga. we're going to triple our business -- >> triple. >> triple. >> these are big numbers >> it's been really an interesting relationship with t-mobile we been ab to really put a foundation down, identification strait ji, beijing, change hawaii on sunday it was an out of line event that was streaming live to 2500 people. >> you go to the tier-1 cities and it creates a level of

excitement around the withhohole country? >> yes we use the tier-1 to do that we call our customers guest. you combine that with the power of ally pay and now you have a holistic view of the customers in that market >> two quarters ago we talked, you said i let you down because i didn't believe, i was wrong, you came right back. i still read these analysts notes to say it's fashion, there could be mark downs, he could get it wrong but you experiment and the public come experiment so the shareholder get used to that, right. >> if you think of what we do with lead to the intersection of function as long as we start with function and as long as we focus on innovation and daily value to our guest or solve problems for

the athletes they didn't know they have, we win. it's a prized position when you that you about the light bar we launched back in may, $98 two universities in the uk and it becomes our number one seller that speaks to the loyalty and the value that our guests about product. >> one last question, i was talking to my producer, we still believe the bricks and mortar not always going away, it's not brick and mortar it's a relationship >> it's connections yeah >> that's what you have pride yourself >> that's what our agents do so well and ber than anyone else in the world. >> my wife would agree with you. i look at my credit card bills the ceo of lulu lemon. this is a great long-term retail store. sometimes i get too short sided. "mad money" back after the

break.

it is time it's time for the "lightening round. and then the "lightening round" is over. are you ready? top of the lightning round we're going to start with arthur in florida. >> caller: yes hello. >> you're up what's going on >> caller: i'm interested, jim in johnson & johnson which has been bouncing around between 120, 135, one, two points at a time -- >> you want to buy twitter shares at j & j, you buy a little now and tomorrow at 125 tom in hawaii. >> caller: hey jim >> i love hawaii what's going on? go ahead. >> caller: i tend to invest in hawaiian investments

i bought a lot of hawaii want airlines, don't know what to do with my last 300 shares. >> you know what i think it's fine but my favorite is southwest air. that's my recommendation jarrett in new york. >> caller: joe jim how are you doing? booyah >> i'm good how about you? >> caller: congrats on that 51-yard field goal >> thank you go ahead >> caller: you're talking to be a giant fan by the way calling about henry shine today. two for one stock and a large buy back by the company. i wanted to find out what you thoughts are >> i kind of blanked out after i mentioned what kind of fan you are, but i do like henry shy 0 and 3 starts anthony in pennsylvania.

>> caller: hi jim i love the show would -- >> my friend we've made the money. sam. >> caller: booyah jim. >> what was the stock? >> caller: brb >> i'm going to take a pass on it james in new york. >> caller: afternoon jim what are your thoughts on stop fie? >> we like it as long as everyone uns it's expensive. it is a very fast growing good company. nick in ohio. >> caller: hey mr. cramer it's an honor a worm middle east booyah. >> how can i help here >> caller: you briefly mentioned oils and auto yesterday. what do you think about ford

>> don't buy, nothing there man. let's go to dorine in idaho. >> caller: i'm calling about the company admt. >> we like to see the surprise we think it's a good stock turns out to be a lot better than johnson controls. i like the stock and i'm still a buyer. the auto parts companies hold up very well. i'm kind of amazed everyone is so so worried about auto sales and that means i can talk one more call. frank in wisconsin >> caller: booyah jim. >> booyah. >> caller: i bought $10,000 in shares of chesapeake -- >> my friend you just went to the casino and i want you to leave the tables and go out and buy a cast mere suitor

that is the conclusion of the "lightening round. zed horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.

at first glance, conductors and sneakers had nothing to do with each other. one is letting you use -- powerfulfully the other is one

that lets you run without hurting your feet. if you want to distill it to the day-to-day pricing, inventory. they have it in the case of micron or in the case of nike. micron report the kind of quarters that people dream of. in better demand think cars and other things, up 71%, 61%, sales up 91% nike, demand was flat. next year, my coron says it's market will be end supply meaning there wouldn't be capacity for this new coming online it's clear the giant of a company would add no excess capacity

that's huge because -- i see a plethora of new sneakers coming out for nike when it comes to shoes, there's just too many of them, or as i said this morning, not enough feet then there's the demand side of the equation demand for mike rons demand and chip wills go higher because people want bigger power cars and computers that has the best looking video games. at nike demand at least in the u.s., seems te pid, there's no doubt china and europe are strong the power the demand from china a europe can outway the supply

sneakers are overinventory, the point where you can find them anywhere i think my best store remains the best like cg s needless to say the sneaker stores themselves discount where it's impossible to add the same prices -- that's where the bread and butter used to come from right now because nike has no capacity its sales could rise and fall samsung which might take advantage of the tightness simply by owning a lot more machines don't forget, the moment there's to much capacity in chips you might as well forget the big margins built up as the business can quickly switch to negative cash flow like it did in 2016

fiscal year. as long as the supplier keeps holding it down the boom shall continue not everyone is sold on either of these companies, nike's going to be keep hurting but the simple fact nike sells have hit a wall because of brick and mirror for destruction it's one of the reasons the nasdaq was up 7% today so chip's sneaker all about supply and demand. that context micron wins by a mile stick with cramer. so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide.

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. here's something exciting, the stock is moving up after hours and i cannot wait to talk to ceo bob martin tomorrow i'm jim cramer and i'll see you tomorrow

>> welcome to the shark tank, 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." ♪ we have to put on our sunscreen. we got to be sun-safe. i'm betsy johnson. i live in prairie village, kansas, with my amazing husband, matt, and my adorable son, andy. do you want to go outside? time for a walk! i was diagnosed with skin cancer at 26. and it was actually one of the scariest things that ever happened to me. i quickly learned that one bad sunburn can really affect people for the rest of their lives. so i decided that i wanted to start a business