>> nvidia. >> grasso? >> sell micron, locket in profits, time to go down. >> guy. >> to tim i say dime, and then i say amd. thanks for watching. see you ckba here at 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 save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. >> how does a market go from dismal and dejected on friday to

beyond exuberant on monday how do we trigger such an incredible rally with the dow surging 669 points. most since 2008. the s&p roaring. and the nasdaq we left the office thinking china was going to slap tariffs on the u.s. exports that would severely weaken the stock market yes, not the economy but the stock market maybe even cause the s&p to break down below its moving average. you laugh but the chinese communist party has learned a lot from manipulating. they knew exactly what they were doing. when china announced $3 billion

in largely agricultural tariffs, that signaled leaders that they were afraid of us. no they took it as a sign that the chinese were slapping $60 billion tariffs on their own goods. no initially there was a sense of relief there china was so compliant. maybe china is a paper tiger after all. this weekend the chinese governments let known that they are ready to put the hammer to apple, to intel, and to boeing if the president puts in those 60 billions in new tariffs apple ceo was over there talking about the benefits of free trade. any cut back would be

devastating. bell is the pc, the data center. boeing more complicated. the stock would get pummelled for certain. in other words, you are talking about far more than just wine, pigs and assorted fruits you're talking about huge publicly traded companies. if you are the president of the united states, you want to crack down on china, you need to be willing to say, bring it on, that is exactly what investors were afraid of we were terrified trump would get more aggressive with the chinese, and it still could happen and talked about the progress in trade talks. progress, we didn't know there was any trade talks. saying perhaps the chinese would

show more respect for intellectual properties. hey, we will take it sure it could be a fig leaf, or it could be the real deal. what really matters, though, is it showed up the other side of the trade saber rattling it made us think there is a plan here and the president may be able to negotiate his way to a good outcome. u.s. made a good deal with the south koreans over the weekend a total win for the industry that the president supports aggressively an extremely negative story on friday becomes a hopeful story on monday. especially if we dodge the apple, intel, and boeing bullets. too many traders got caught out

of position. what did they do they panicked. do they have to do it again? do i have to tell you that panic is not a strategy? that is not the whole story. we need to account for for stormy daniels i know, it is ridiculous that i am even talking about her. all last week, the bears, were talking about how ""60 minutes, has a tape of the president of stormy daniels but when the piece ran, there was no tape. maybe one of the president's lawyers made a campaign contribution that wasn't kosher, but this -- the bears needed a

tape and they didn't get one the interview did keep us watching the duke kansas game which had a surprising finish. maybe that was the real shocker. but we dodged not one but two bullets. every chart looks back and all of that nonsense i had to hear all weekend. the stock market was incredibly oversold and let me put it in context, back in february, we got the minus ten in the oscillator. you always buy at minus ten unless there was a huge systemic risk this time a minus six. anything below minus five means you have to cover your short position as least. remember though, all rallies begin with short coverings

the worst acting stocks were able to stabilize. the worst acting stocks is facebook facebook, i mean, this thing, this was like five pianos landing on you walking down the street causing to fall today. target eventually came back and wells is yet to recover. facebook tested in the green stock is now factoring almost no growth the trade is at a discount and nearly every stock that sells for below average has little to no growth. last year facebook grew more than 40%

advertisers still love it, good return on investment washington has set its fangs on facebook and the stock dutook a big dive we already know something is happening and still goes down when it is reported again. i love the apologies from those two. facebook needs to bring in an outside investigators to derm what went wrong and tell them what they need to change doing that would bring the stock up ten bucks and why don't they just make the ten bucks. bottom line, my advice here is to go over your portfolio, if you own a stock that didn't go up today, you have a real problem on your hand if you have stocks that did go up, maybe let them run again, but don't get greedy

even so, if things look a heck of a lot better than they did a few days ago and the short covering, even up here, is not over. ryan in florida. >> caller: hi, jim, how are you? >> very good how about you? >> caller: i'm good. i i am wondering about activism blizzard is now a good time to buy again? >> we trim some for i told club members in our call today, we take a little profit here because it was so big and i am not crazy about the market yeah, crazy about today, but today already happened john in pennsylvania >> caller: hey, jim, long time, first time. >> all right. >> caller: thank you first of all for all the guidance and perspective you have given us.

i am calling about dow dupont. with dow due to report next month, should i pound on this up sale >> yes here is the problem. and i said this to club members, this is the deal, cloud protection is a big business for dow dupont if the brazilians decide to retaliate, they will kick them out. you take it down three from here and maybe you get 20 i think that is right. that is an opening bid laurel in new york laurel. >> caller: mr. cramer, thanks for taking my call. >> of course. >> caller: i'm interested in your opinion on reality

holdings rlgy a company integrated residential real estate services i purchased the stock in the ipo in 2012 in the low 30s and another in the low 20s do you think this stock is volatility or opportunity for long-term up side. >> only a few national players, but i see real estate slowing in the country. i think enough to make it so that it is going to be difficult to be able to repeat big numbers. i think that is fair to say. i like home boaters better than the real estate. use this time to review your portfolio. on "mad money" tonight, can wendy's satisfy for growth

and trade tensions may e, but eyeing the next worry that you are going to have to have on your radar screen. so 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. if you'd have told me three years ago... that we'd be downloading in seconds, what used to take... minutes. that guests would compliment our wifi. that we could video conference... and do it like that. (snaps) if you'd have told me that i could afford... a gig-speed. a gig-speed network.

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♪ >> we'll explain that in a minute consider the case of wendy's the world's third largest quick burger chain phenomenal gains the all star activist in vestor. seems as though the company has

implemented most of the strategy what is the next leg of growth let's take a closer look with the ceo of wendy's company i think you got a little heads up about where my questioning is going. welcome back to "mad money." >> good to see you >> we are thinking about next leg and i am looking at some of your snarky social media you came right back and i am listening to music that is apparently doing well. >> on friday we dropped a mix tape all about fresh peak on the weekend on itunes. but it is about telling our food story. we are fresh and never frozen. and called out a few competitors along the way. we want to make sure that people understand that we are fresh.

>> now let me ask you something, you have had a phenomenal run and when i say that, the same store sales growth has been so great for so long, todd, i wonder, how do you maintain. >> we have 20 straight quarters. and the opportunity is really to leverage a couple of things. talk about our fresh messaging fresh is still on trend. really talking about you know the next generation of our designs. how do we make sure we have food forward and how do we connect to next generation of consumer. we got 2.5 million twitter followers where we talk about our difference and how we stand apart from the competition. >> you ought to explain to people how fresh is what people want even more than natural

organic. >> we have been serving fresh never frozen on all of our hamburgers but bringing in whole heads of lettuce and spinning and chopping our tomatoes. we have been elevating the awareness of fresh beef and elevating the new organization >> i want to go over the technology in a second, speed, convenience and affordability will make quick service always popular. >> technology will pay a big role that is why qsr continues to steal more of the restaurant space meals. technology can complement it all. if you think about customer self

ordering kiosk mobile pay that can work pass the slowest point in the whole process you get more orders to the kitchen and complements our operating model. anyone can take an order faster, can you take that order out the door accurate and fast. >> two things that you highlight. balanced high low calendar and buy and flip i need you to explain to people what they mean. >> balanced high low making sure we have fresh beef all the time. we also have a value message going full time. things like our four for four which we just expanded eight items for $4 >> it is a big hit. >> it is a big hit but also the dollar double stack to drive

folks into the restaurant. >> and the buy and flip? >> it is really about how do we build a stronger system. if you think about our system over the last four years, 40% of our restaurants are in the hands of new operators some existing, and some new to the system we have got about 30 new franchisees new to the system. also new franchisees with next generation what is really important is that we have them that are focused in our business in the long run they are investing in new restaurants and new imaging and technology and that is important to drive the transformation of the wendy's brand. the long-term plan is to have 7,050 stores your slowing down, your growth

i just need to get an answer if that is really the case. >> not really, just a slippage of a year. we had a target and a goal for 2020 in north america we slowed a little bit we are asking our franchisees a whole lot. they have to pace that sequence. >> there is a lot of competition in this segment, oversupply and rising labor costs. >> the restaurants with scale are growing. when you have scale you can invest in technology and invest in things of the consumer technology in the front of the house. and automation in the back of the house. how do you optimize your labor guide to mitigate inflation impacts. those are important things to

help you differentiate you can't pass along the wage inflation. you have to find efficiency to off set those pressures. >> millennials love social media and they like delivery i don't know who would possibly take out but they want take-out. >> they do want it and when you think about convenience, how do you bring it to them and where they are at, we have a great partnership with door dash. 20% of our restaurants being serviced by deliveries 4.5 out of five stars our highest satisfaction is delivered. so we get the most credit for

delivery. >> from my business, that is highly unusual ceo of wendy's company, a lot in the hopper, allot ahead. stick with cramer. you always pay

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call for a free quote today. liberty stands with you™ liberty mutual insurance. after weeks when this market seemed hostage to washington, the news that our government is in negotiation with chinese over trade, meant that we could roar higher start thinking of secular trade again. with that in mind, we need to talk about a group that has been getting annihilated lately the new hate on natural gas.

crude oils rebounded back in the mid-60s and natural gas is another story. everybody was touting this stuff as a cleaner, safer, clean energies future. lately there has been backlash and their negative attitudes seems to have spread to investors. i am not just talking about natural gas commodity although that has been a real dog i am talking about the entire complex. anything that touches natural gas. the producers, transporters, storage providers. makers of the turbines that were supposed to profit from this why is natural gas going out of style and what you need to know to protect your portfolio. just like oil, natural gas

peaked in 2014 plummeting a little over two years ago. however, unlike oil, where the recovery is continued, natural gas stalled out. over the past 12 months prices down more than 15% and plunged nearly 3 % from their eyehighs. extreme weather increases demand for all kinds of energy and people, use gas to heat their homes in the country biggest percentage use it is the biggest percentage of all heating mechanisms in the country. so you expect a winner with tons of wide spread cold weather, multiple bomb cyclones, nor'easte nor'easters galore

maybe perhaps the best in years. dream on and while the roar in january getting crushed. if you have exposure to this stuff, this should scare you if a brutal winter cannot sustain a natural gas rally, can anything last week "wall street journal" published a terrific piece entitlesed natural gas under assault in some states after brief reign at the top she painted a grim picture after years of steady growth, documents held that fuel became quickly under fire for example, arizona just put a nine-month moratorium on

building gas power plants. massachusetts legislators considered a bill to mandate a 3% california wants to get 50% of their energy from renewals from 2030 and if they were to hit that target, that means phasing out a lot of gas fired facilities. in fact quotes the head of the state at some point soon would be permitting the last gas plants in california they are shutting down older facilities that are less efficient. in order to place three of their older natural gas plates this was not supposed to happen. states like ohio and pennsylvania continue to embrace

natural gas. calls into question one of the most powerful components of the bull features. if that thesis changes to natural gas is going to stay about a third of the power generation space it may lose ground in renewables if the natural gas movement has peaked here, then the decline in these stocks is verified i have got to tell you, natural gas procedures has been a victim of their own decent. we have so much of this stuff in america and for so cheap to get it out of the ground according to energy information administration u.s. is going to

be produce already a huge number. this year we are going to see the largest increase in natural gas production in nearly a century. and we already have a glut put it together and you can understand why whole swaths of this is not produceable. lagging behind the averaging by a mile this is a lesson we had to learn about the hard way we own apache and that stock has been punished as we realize that the company's recent find contains more natural gas than oil. time to go take a loss. these companies are gigantic producers of natural gas and

that hurts them too. the group has been horrendous of late i mean, really bad the problem, natural gas may be reaching levels of extreme oversupply simply burn off their excess production. the mass limited partnerships have been hard hit after the federal energy commission put the kibosh with the shockingly unfavorable ruling that no one was looking for. i feel bad about bringing this up, but natural gas is yet another problem area for general electric their flag ship gas tur-bin

businesses they completely misread this market as america over produces natural gas and makes less of it, they may create natural -- stock is down 40% it will be years before their facility becomes operational and i think a more established player, it has held up better so maybe that works the new hate on natural gas is here to stay don't try to bet on this group don't speculate on it. it is too risky. in a world where everyone loves renew energy and the younger generation despises fossil fuel i know it is tough to take losses but these stocks may not

come back. mike in minnesota. >> caller: hey, jim, booyah from the home of the minnesota wild, the best hockey team. >> that is a brave group of people who continue to live in sub zero temperature. >> caller: your take on the deal that is going on what is your take on con conocophillips >> better than most. you know what, just like jamie diamond said about the whale, hey, well, let's say we were stupid and dumb. clark in california. >> caller: hello, professor cramer. >> i like that what's going on? >> caller: thanks for lending your expertise to us regular

folk i bought enbridge, enb i know it is not a pure oil play, but now that oil is in the mid-60s, it is hard to understand why it is down so much down 20% since the last year. >> this group is hated and lots of rules that have come out. we want to find out from al. you know, everyone of these is horrible hate towards natural gas i would steer clear of this group. and if it bounces, anything can bounce, and that is when you can sell don't let today's rally make you complacent with another rate height in the

books what does one of the largest payroll operator have to say. one-on-one with the ceo of paychecks. stick with cramer.

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after a terrific day, i want to use this moment of jubilation to address a new worry i am talking about the proliferation of exchange traded funds. in the terms of sell orders could cascade into yes, i keep hearing this word, so i am going to use it, a crash and the market will therefore have to come tumbling down the truth is we saw something like this happen in the great recession. even though the fcc put through rules of shorting bank stocks. the banks deserved to get crush in time and much of the weakness came from traders who were shorting the bank.

we now remember that moment as a great buying opportunity which brings me to my next point the next time that socks get crushed by etf pressure, you know what is likely to happen, not a crash but buyers swooping in because there is nothing fundamentally wrong with the economy or the stocks themselves consider the big decline in february of course they didn't. more important a few days into the rally, a lot of the selling came from the vix pick too many traders were using this vix pick when things stopped being calm they got crushed had to be unwound. billions and billions of dollars of stock had to be sold. we have been living with that ever since once we recognize that the under pinnings of the market has been

compromised, the s&p bounced the failure to take out those highs from that run has indeed doomed this market and i get that it is hard to make money when the prevailing sentiment is everything is going to get crushed in the end if you sold stocks on friday and seen sold them at the high at the end of the day, you made a fortune. we bounced once we realized the white house is negotiating with the chinese. being nimble when stocks get oversold can be a terrific way to get money what really matters is that as long as there is no systemic risk, okay, any kind of monster pull back related to etf selling

is going to create buying opportunities that people are going to take advantage. we need to address the issue of facebook, ten traded exchanges if you think facebook will go lower, you need to decide if you can use that weakness to buy netflix and amazon i say yes you can. can facebook pull down the whole group? anything is possible if something that they have nothing to fear from if they are telling the truth. the rest of fang is great fundamentals if you want to worry about something, fret about trade wars or real wars the truth is while etfs can cause a landslide on selling, that systemic risk is a reason to buy stocks not bail on them "mad money" back after the break. i'm very proud of the fact

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♪ ♪ my ambition? helping people get what they want, understanding we're not in this alone, and teaching my kids that no ambition's out of reach. ambitions live everywhere. synchrony helps make them happen with data, insights, financing and technologies. ♪ ♪ synchrony. what are you working forward to? >> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money."

that's where i take your calls rapid fire [ 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." let's start with joseph in new york. >> caller: jbt and bought the stock. is it worth keeping? >> i like it we like that business. pretty darn good that is a mistake that worked in your favor let's go to brian in texas >> caller: how are you your phillies are going in the right direction. tell me you can make me "mad money" in walmart? >> i think it fell too much.

i think it is okay for a buy let's go to john in ohio >> caller: how you doin? i want your prediction in at &t >> i think they win the lawsuit and it is a buy. cameron in illinois. >> caller: thank you for taking my car century aluminum for the long haul, are you with me? >> i am with you on alcoa for the long haul. that is better. >> christian >> caller: i am calling about

pgi. >> i got to find out if that 9% is real. it can maintain. paul in california. >> caller: jim cramer, you are awesome and a booyah for you. >> thank you. >> caller: i know you mentioned this stock before, so i got in a few weeks ago. wanted to know if i should put a couple of more bears in black berry? >> i think it is great great intellectual property. and john chen is for real. and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade t kno. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing.

>>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. you ok there, kurt? we're about to move. karate helps... relieve some of the house-buying... stress. at least you don't have to worry about homeowners insurance. call geico. geico... helps with... homeowners insurance? been doing it for years. i'm calling geico right now. good idea! get to know geico. and see how easy homeowners and renters insurance can be.

on such a fabulous day for the market best since 2008, you expect that when company reports, it should go higher. look at paychex. this morning it delivered some robust numbers inline earnings with higher than expected revenue this is when the stock popped 4% on the headline news then management started taking on questions biggest day of ten years

what the heck happened i didn't see anything alarming on that call we have strong job growth and rising interest rates. did the market make a mistake? let's check in with marty mucci. welcome back to the show. >> good to be here. >> is it just not enough to be able to do 9% and have the usually 1% to 2% growth. >> well, jim, i think what happened, this third quarter because of tax reform, we had one time items on the expense side and one time item on positive from the tax perspective and probably confusion from the quarter we also said we are going to invest some of less than half of

the tax return benefit to us and i think maybe the models are being adjusted or something. i am not sure what happened. this was a solid quarter for us. >> you gave that one example of how much funds you had available for fed funds rate three point fine billion in may quarter and 3.4 -- i'm sorry, it was down a little bit from last year do you think people are bothered by that? >> i don't think so. interest rates are rising. we are up 37% on interest from our client funds this quarter. heading towards probably 60 some million dollars up from interest up from 45 range two years ago i think that is all positive our revenue growth top line helped by an acquisition we did at the end of the first quarter.

still up from the highest we have been in six quarters. and we are feeling strong about the results. we will just have to see what happens in the market. >> what is the growth in this country for small to medium size businesses are they opening or are you surprised they are not >> we are back to a steady state of business formation. i think that is a good thing job growth in small businesses is right there where it was in our base year of 2004 for our index. we are seeing job growth not increasing so much but it is steady and wage growth around 2.7% come down from almost three we saw. but still a 2.7% wage increase these two things are positive for us. >> how about wage inflation? should we be concerned as a country? >> i don't think so. you are seeing a scarcity of

resource and that is pushing the wages up i think if we can stay in the 3% range, that is a good thing. spurs more small business growth because of the growth and demand for services i think that is a positive thing. >> can you put in perspective, the difference between a paychex and say a workday. i mean workday is growing at 30%, cloud base human capital management are these apples to oranges? >> well i think so, workday has a larger client base, much larger clients in their base they are really in that 5,000, 10,000 and more employees per business and the job growth is stronger in those businesses and they are also outsourcing faster right

now. what you are seeing for us is that small business growth is continuing and with the level of regulations and compliance requirements, you are going to see continued growth from us minimum wage increases, family leave act, health care changes that is driving small businesses to outsource. >> the investment is great because you want to grow, but you have been a tremendous returner of capital. will that continue >> yeah, it will we have got a great dividend yield. highest in the industry by far we set our operator margins and we are going to decrease a little bit when you look at the bottom line, expecting next year to grow high single digits if not double and we are giving the best dividend yield, the best in the industry i think it is going to continue. and we are excited about taking some of these dollars and investing in additional product

enhancements and i think this is going to be good for our top line revenue growth in a few years to come >> couldn't agree with you more. i think the analysts were way too down to me, the pre market story was the right one. thank marty mucci ceo of paychex. too good a story to leave. stick with cramer. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

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cloud king red hats soaring after a great quarter. tonight on an all new american greed, lives large on hundreds of thousands of government benefits he scores a purple heart a stolen valor scam caught on tape don't miss it. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you tomorrow

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