carter. >> short crude oil using the uso etf. >> not too late to hedge if you need to. >> if you are long apple, i like the idea of selling downside puts in march. >> >> the dip that many people were saying they wanted this is what it looks like tonight, "mad money" is live to bring you the information and answers you need to make the right move money day when the market re-opens. now, live in minneapolis, here is jim cramer. 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. live from minneapolis. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. we got rocked today. and we need to talk about the significance of this break down. by no means was this a garden variety selloff. not some shrug your shoulders no harm no fall selloff nasdaq plummeted 1.96% how do we get hit with such a brutal decline if you are experiencing such a

placid multimonth rally, tonight we are live so i can explain how it happened. i am going to take advantage of the fact that we are out here in minneapolis for the super bowl and talk to a couple of guys so you can put this in some sort of context. first, before we delve into the proverbial bears belly, we must never forget that we had a terrific run in the stock market the rally brought a huge number of individual investors to the stock market for years of despising the entire asset class that run is now over and i hope those happy thoughts are over

too. because frankly, as much as we like companies such as amazon or apple or alphabet, all disgust tonight. remember, stocks are in the end just pieces of paper today was a potent reminder that what comes can also come down. and often goes down faster than you might think. and unlike so many other times in the last few years and certainly since president trump was elected, we got no bounce, none it wasn't like bargain hunters came in and said now is the time we have been waiting we've been patient this is our moment to pounce it was the exact opposite. it was pure panic. nauseating panic even. didn't matter if companies put

out strong numbers as recently as this week or if companies had a fabulous outlook. they all went down at the same pace does the panic make sense? oh, come, this is "mad money." situations you want to run into, and situations you want to run away not just from the stock but from the entire asset class. screaming the whole way. that is why we have our special panel figuring out which is which. i am not disputing that today was none other than plum ugly. but caveat the absolute numbers of decline may sound big there was a time when a 500 down was a crash. and we still came out on the other side didn't away? in the end it was a colossal

buying opportunity if you waited to see the waits of the sellers' eyes, i didn't see any whites today but here is the thing. the absolute numbers they don't matter only the percentage is important. when the dow lost 500 points in '87, that was a decline. translating only a 2.5% for the dow. i know it is also but it is not a crash. today's decline didn't even repeal most of the market's gains since the beginning of the year we barely scratched the surface. am i some sort of poly ana hardly unloading some investments but it was painful i took off long-term positions

why? pretty simple. don't have my sound board here, but you know what i would say, bulls make money, bears make money, pigs get slaughtered. you were a pig if you hadn't sold something, anything already. we are in the mix of the greatest economic expansions than i have seen in decades. pro business, that i have ever seen president, love him or hate him who has been relentless in his embrace in the stock market. just this tuesday, with the state of the union address, president trump discussed how $8 trillion in wealth has been created in the market. less now, but you get the pictures our companies are more flush than any time i can recall

beautiful balance sheets buying back their stocks because they know i am right about how strong things really are you don't need to look far for confirmation today we got a high strong job report why not be brave enough and step in and start buying here first, i think a lot of people have already bought. they don't have enough money to buy more oh, there were so much more optimism coming in and so little skepticism that we need to burn off euphoria before we go all in if you haven't done any buying for your retirement portfolio, you have a chance. i recommend you start next monday you are getting a terrific chance to slowly put some money to work at lower prices than you

ever dreamed of a few weeks ago. if you don't have cash on the sidelines then you will have to sell some things how about anything going up for so much that you feel like a pig for owning it. sell off so much so you feel better so if the stock gets hammered you will feel worse and you know i would get rid of stocks that haven't moved much in the last few months as i said earlier this week, i like to fall back on big themes in this environment. the defense stocks are my favorite i like aerospace, the part of tech that is the cloud including amazon which we now know have been crowned the best in

business banks are good higher interest rates bad for many groups nirvana for the banks. plenty of time to buy others including retails. plenty of industrials. so let me give you the bottom line from minneapolis. we were due. it is not the end of the world however, it might be the end of the fairy tale world which is just as well people, it has been too easy and it is about to get hard. not impossible but a heck of a lot harder than it has been. let's take calls marsha in texas. >> caller: hi, jim, this is marsha in texas and i am calling about dwdp what is your opinion and where do you see it in two years as an

investment and when do you think this will sell off, the selloff will end thank you. >> caller: thank you for your calm demeanor on a difficult day. spoke with ed brainer the ceo and just this week reported a great quarter. the stock went down four points some people felt the break up into three companies is taking too long some people think the agriculture business don't worry about it put your money to work on this stock on monday. bottoms are rolling operations a third of the stock mart will bottom and then another third and another third. been like that since 1979. so let's take our time but you happened to pick a good one. one that is strong

joe in california. >> caller: hey, booyah, cramer i am joe from 82 mission viejo california scots miracle smg. thank you. i love your show. >> deeply troubled this week because it reported a number in the worst division was the hawthorne division that is division for hydrouponics what is it good for? growing pot in your house. if you own this stock just for pot, you have been had right now, you are in

no-mans-land it is a good company, just being used for a vehicle for the wrong object. >> caller: cameron in new york >> go ahead. >> caller: anheuser-busch. >> i think that anheuser-busch's time may actually be here. here is the deal, the stock has come down and looks like there is a resurgence of the noncraft beers. a ton of cash. this quarter won't be good i have done enough work to know this is not the quarter. so you want to hear it, what they say, let the stock come in and then pull the trigger. i feel the same way about moleson. john in california >> caller: booyah, jim, from out

here your fan club. >> that is where i lived but that was in my car >> caller: berkshire b in these turbulent times. >> that stock makes me feel warm i think sometimes if you take warren buffett's perspective, you will realize what happened today? i don't know, you won't even see it in a few years or few months. buy that stock in a few weeks. things have been too easy and we were due for a pull back we are going to get through it together i am reviewing some of the factors at play. and we have a cnbc panel the brothers na jerian

we are on the hunt not just for pitfalls but for opportunities stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.

. i thought i would come out here and just watch a terrific football game. but we got a horrendous day. not the end of the world the end of an old world and beginning of another one there is the nfl super bowl where my beloved and under dog eagles face off against the pats and then the stock market super bowl between the bulls and the

bears. a couple perennial winners, apple and alphabet have been transformed into what could be called underdogs maybe losers overnight both stocks down 4% today. jeff bassos acting like the stock market version of tom brady. john and pete, my buds i thought the near universal down beat research about apple ahead of the quarter might immunize its stock against the hard fall. when the company announced its best quarter ever -- versus almost any other worldwide operation, the stock got

clobbered. i still say own it don't trade it it hasn't bottomed yet apple gave you a rest on their laurels forecast that brought the stock back to earth and then some on the other hand, you have the pats -- i'm sorry, you have amazon the online closous and a dominant web service division i know it is up nearly 40 points today. guess what, it is a buy. it would have been up 100 if the tape weren't so ugly there are the three, the three that i thought it was going to all be about today, but there was more to it let's head over and put it in

context by the worst one day to bob pistati. >> three issues have rattles the markets. political risk we have been seeing and a little bit of earnings how many people have been waiting for this day talking to us for months. how many guys down here on on trading desks have mess sanged me and said the markets can't go up how many technicians have messaged me saying s&p above, and it can't keep going on so today, i heard a lot on the floor, it is about time, bob i heard about thank god the volatility is back traders have been miserable with low volatility pricing going up.

not having enough volume volume and volatility has been spiking. highest level we have seen since just before the election and the volume has come back averaging 3.6 billion. 12% higher much better volume so what about all of those loud mouths who keep saying they are dying to buy the market 5% below the current price. we closed historic high 2872 on the we closed today at 2762. 4% below that high 50-day moving average is 2716. 200-day, 2532. 12% below the highs. perfect numbers circle

go eagles. >> thank you so much quick question, in the last ten minutes, i saw no buying, more selling. what was going on? >> this was the problem that we had throughout the day we saw this with some of the release of the gop report in the middle of the day. the bids that got canceled, it wasn't that the selling activity picked up dramatically, it was just that the buyers walked away the sellers are still out there saying wait a minute, there is a lot of people who keep saying buying sell% below t buyers aren't that interested right now, they want to see how the market plays out. >> perfect and succinct way. have a great weekend, go birds. >> thank you you too. >> let me bring in my paul,

scott wopner >> look, i have been working over my rolodex over the last few hours and you know the kinds of investors that i speak with i am not going to give you the names but their knowledge from what they were talking about and one of the prevailing thoughts i got was people were too bull ish no way the market should have been up as it was in january people have been talking about too much euphoria. >> stocks that were up double digit percentage points since january. reasons to be optimistic of course there are. earnings were up the tax reform is transformational dollar lower

earnings been good across big companies. and the other point they made was market strategist. the market kept going up blew through a lot of targets on whether or nwall street and what did they do they raised their money rather than saying this is getting out of hand. and everybody is talking about what is happening with rates obviously. >> when you talk about rates what i say to myself is okay, i wake up this morning and someone tells me some joke, 2.8. and i remember when it was 8.2 and that was a great time. are we going to have endure this at 2.9 thr 3.0. these are two low. is it every single tick. >> people say they wouldn't be surprised one bit if rates

continue to rise and then stocks are going to have a problem with that could you get to 2.8 could you get to 3.2 in short order? why couldn't you why couldn't you get to that level. if you do, are stocks going to have a problem probably now look at monday morning people are watching. if rates stabilize do stocks go down off the open? perhaps yes. >> two-sided coin. no news this weekend news travel too slowly and we get that employment number this morning and it is going to be talked about monday. so it may be too soon. this relentless in interest rates, no. >> some investors i spoke with said look, even if rates stabilize, you could have stocks

sell off. >> we are going to find out what to buy and of course what to sell we have so much. i like this show don't panic, that was for suckers. eyeing some buying opportunities. how the heck did it happen stay with cramer

welcome back, breaking news on wells fargo ordered to replace four board members and face restrictions on asset growth the feds order limit growth beyond the levels reported at the end of 2014. until and unless it receives

prior -- quote from yellen, we can't tolerate pervasive and persistent misconduct -- make certain that the abuses do not occur again. she says the enforcement action we are taking today we ensure that wells fargo will not expand until it is able to safely and protections needed manage all of its risks and protect its examiners. basically, the fed is ordering them to replace three current board members. they will do that by april and a fourth by the end of 2018. that's according to the federal reserve press release. wells fargo has issued a response saying we take this order seriously, we are focused on addressing all of the federal reserve's concerns, that is according to the ceo timothy

sloan. it is important to note the consent order is not related to any new matters but to prior issues where we have made significant progress wells fargo being forced to replace board members and limit asset growth sending it back to you. >> thank you many of us have been surprised that the federal reserve didn't do something earlier and i think this is more extreme than i thought they might do. more importantly, this limited assets this stock has been red hot. up 5% for the year and when you cap assets you lose what are best narratives that are occurring which is we are in recovering mode. if they can fix the governance, the assets will come back. >> this is one heck of a last

move from janet yellen they also excoriated sanger. i wonder if changes the entire investment dynamic about limiting their growth. this is pretty damning what the fed has done we have jon najarian and pete najarian. >> great to be here. >> this is a friday night surprise we thought wells fargo was not only clean slated but had become many people's stock to own the net margin is up it had become the way to play the tightening cycle, is it still? >> i love this name. it has had an incredible run not

just this year but going into the end of last year one of those names that when everybody beat it down, you had to look at the company s with is it going it seemed to me only up. and because of that limitation that is going to keep them back a little bit i own the stock. i got it at good level but this concerns me and i think it will concern a lot of investors in terms of future growth. >> what i am most concerned here about wells is that it had been a place to run one of the things i wanted to talk about tonight was hey listen, if the economy is so strong -- keep getting rate hikes don't that mean we can go buy? fill in the blank wells fargo. that story is off the able. >> right with the loss they suffered today, broad market loss that

virtually affected everybody you add another 3.5%-4%. you are talking about a 6% sell off in one day but then, because it is more of a, you just can't grow, not that you have to shed businesses and so forth, i think they can come out of this smelling good. but i think it will be a painful few days or few weeks. when some of the biggest shareholders decide i don't want this. >> this is the problem with this sort of blood in the street trade. this stock got hammered so much and maybe too much. >> low 50s, it was a buy. >> you sometimes don't understand the underlying risks that still exist in the name because of the regulators and what could happen down the road. janet yellen walks out the door

and slams then out the door in a way that fundamentally changes the way you review this stock >> just in terms that news work. we are doing a live show and i get handed a piece of paper. i say, okay, name me something that would make it monday is real ugly. and you got it i don't think you could get a worse piece of news for the incredible etf >> the part that is interesting to me is the timing. the fact that janet on her way out -- you know what, why now? i am not sure why it took until now. >> i wouldn't be surprised if the biggest shareholder in wells fargo steps up to the plate. >> if he is allowed to

that ceiling have to request the fed's permission i think they want to cause pain. they are going to cause pain with this news that maybe the blast zone but could be a ripple effect that stock could be down so much that the etf could bring down more solid ones. >> i would want to be picking up jury char jp on that and you are more likely seeing pressure if you can get somebody big and maybe if it is not warren buffett, maybe somebody else that steps up and says like pizza, this is going to be a lack of growth until april when the board members are replaced. >> isn't going to be harder to

make a call like that. let's say you will of the banks are down on monday morning and you know the environment, are you going to jump in on wells when it goes down? it would be hard. >> too early. >> i could see you doing it with the other banks. >> it is going it pull it down this is a major piece of news. and i didn't want to sugar coat. much more "mad money" out in minneapolis. why are we here? i forget, is it because of wells? you think it is going bury our head we are going to pick up the rubble and figure out what to do stick with cramer. stick with wapner, and with the

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. all right.

kidding aside, a bad day for investors. let's have a little perspective. 2.5%, not the end of the year. but it hurts it hurt so much that you might be blind to opportunities. so back again to help us uncover these names and see what we should be doing, jon wapner and pete and jon najarian. what we got was definitely panic. did anybody say overdone here is a couple of things i am looking at. >> the narrative might have been different had we not had a volatile week. volatility ca

volatility came back in a big way. this is a wait-and-see market. three is the line in the sand considering where you are. the good investors, and the ones who are taking today's pain a little bit easier are the ones who have been hedged the ones who have taken the pain before by being short bond examines long stocks, even though stocks are going down, at least have some protection through that bond hedge. >> puts on monday? >> i would consider it huge put trading huge profit taking but rolling down not to be too complex but people taking money off the table and putting money into the game further down side in case we do see a sell off.

>> there was an element. nobody did think it was time at the end of the day so are there people, i mean this may be the wildest thing in the world. did anybody think i just saw the bottom. >> there could have been some people that saw that but to your point, jim, a lot of people being told to buy out. >> explain to the people at home we do have a lot of people hat home saying who is tapping who >> the clearing firm is tapping hedge funds and things like that that are massively short upside calls. risk index which is the vix. when the market goes down and those calls skyrocketed, a lot of people are doing one by two

spreads, with you by three spreads. but on days like today, do they have enough money to make it for monday and if they don't, they have to take things off and that push the market further into the close. >> i don't know if you can make a call have stops bottomed unless you know the rates at the top. this is not a sell off by some other force. it is done because bonds yields -- >> a lot of people at home would be saying they are going up. they are going up because things are so good. >> yup. >> did it happen this week that good news is now bad >> i think because of the velocity and we talked about this on "the halftime" today if rate where is creeping up, the market could accept that but when you get violent moves,

these volatile spikes to the upside, that is when the market goes, why are we going up and at this speed. >> are there enough -- >> and not just the feds moving rates, this is the market moving rates. >> did the fed fall asleep obviously the fed woke up to smack wells fargo, but did the fed fall asleep? you know that is going to be the dialogue. >> i don't think that they are behind but if you want to say, has janet moved fast enough? probably not as far as the market but as far as what she needs to do, yes moving at a good pace. and powell will carry that pace i believe. >> thank you guys for staying with me. a lot of other things happening in town. >> a few other things going on.

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>> what would a show be like without a "lightning round"? it is time it is time for the lightning round on cramer's "mad money." we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." tim in maryland. >> caller: booyah. how are you? >> continuiuldn't be colder. >> caller: it is what it is. i am calling about kmi. >> i want you to get off the phone and think about how you are positioning your portfolio,

that is one of the worst stocks. ixn ixnay eve in massachusetts. >> caller: is it too la et to get into the game of thermofisher. >> thermofisher is ideal unbelievable quarter don't buy it all at once because it is too big a dollar amount. and people are selling the stock. let's go to marilyn in indiana. >> caller: i would like to know about radius health. >> exact wrong stock to own in this environment pfizer had a monster quarter and let's stick with those

melissa in california. >> caller: my boyfriend and i watch you every day and we love you. thanks for your help what are your thoughts on shoppify >> my thought is that it is up too much too fast to be involved in this kind of market you have to wait ten points down duffy in pennsylvania. >> caller: booyah jim. in [ inaudible ] we trust. i want to get out of halozyme. >> you don't need kratos let's go with general deign nammics.

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back again with cnbc's best. let's talk about next week's game plan. scott, bigger earnings still not over but does it matter? >> i think if earnings keep

being good, people step back and say there is a reason the market went up. maybe got ahead of itself. i am also going to be watching for apple. if apple stabilizes. >> i think apple is psychologically important. desert island together you are alphabet and i am amazon and well, you are apple which one goes off the island? >> i look at what apple's numbers were and where are they going? services and china that to me says they are a winner today was a harsh sell off the opportunity for the up side is apple and throw in the money. >> sky works, i know it is on your list. 40% of their business comes from appear and will they have got a

billion dollar business already with nonsmart phones internet of things. >> i think sky works is going to set the tone of maybe apple is inexpensivecy. we have a company that reports on tuesday just a few days before the birthday of bob eyer what happened to the $8 trillion that has been created since president trump has been elected. i am looking at disney as a way for people at home to say i heard this guy cramer saying it is not the end of the world. for our trading friends, i am going to give you one. i have looked at stocks and say where is the relevant trades the one that i want to bewhich is amazon.

i think the 1600, 1700, weigh station today. but it is going to be right back and it is going to be big. you mentioned nvidia is tech just too high? we never have to worry again >> we have said in the past as nvidia goes, tech goes so let's see what happens this week did tech get ahead of itself too? nasdaq was just a great performer coming into this year. some of the high growth already what is netflix up in january. >> if you missed apple at 148 when it made that nine point correction, you have to buy it here at 160. >> all the bears, i saw them making calls on apple. they have yet to adopt samsung

your buddy tony, over at nokia, i think he is a nokia user >> he was at 70. >> that guy has something to say. >> katie raised her. >> that's okay i like it. the whole thing is unrequited with katie she stuck with it and said it wasn't the end of the world for apple. we have people who want to own the stock. what would you other than janet yellen's gift, what must be sold monday give me a sector if you don't want to pick on anybody >> anywhere you have been chasing the industrial names, those are the areas if you are going to have to sell -- >> what is that?

caterpillar? >> i like caterpillar. >> i do too. but screamed to the upside. >> one to buy is clorox because -- >> because i am going to have them on next week. >> armour all, because of charcoal and bert's bees. >> and because it was down so much 1% organic growth. people think that sector is horrible clarks is isn't going to away. >> both quarterbacks are using under armour. >> i am going to give you one. it is so darn cold here.

>> goose >> the goose is going higher. >> no. 3m. >> you are selling local. >> yes because the buyback is real. the kind of company that is not screaming. you get to lean, it is the best in show. and one other buy but not necessarily open on monday it is going to open on sunday. does anybody mind if i go out with a bang. how much do i love this team and how much does my wife wish i wouldn't go. if they lose, i don't know if i can may on monday. >> still been a great year. >> fantastic special minneapolis "mad money." thank you so much for having our viewer's backs defensive line go birds

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