case on valuation. the stock has troughed in my opinion. >> don't go anywhere "mad money" with jim cramer 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 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. all day, all day we heard this market just has to ge tariffs ds

to the fire. this is much bigger deal, much bigger deal than the ten-year treasury if you listen to most commentators, the ten. according to the experts when that happens the market must go lower. in a great interview last week, the ten-year rates have been heavily influenced by central banks which means they tell us less about growth inflation than they used to before the great recession. quantitative ease and quantitative pricing i think lloyd is right, that doesn't mean we will be just fine when the ten-year crosses the three year rubicon what it means is this sell off

will likely be a buying opportunity. so many experts tell this story about the dangers of the ten-year going over three, i think this could be, a tale told by an idiot full of sound and fury signifying nothing. brian jordan, the ceo of first horizon, he explained business is excellent terrific loan demand at this level. things a things are great and economies tend to build ahead of steam rates are still extraordinarily low. and 3% isn't enough to derail squat. perhaps we are too old to be too worried here because in our lifetime we have seen great loan demand when the yield was twice.

i am not dismissing concerns of younger money managers but we know the algorithms may turn out to be wrong you will want that week to do some buying. while i am not particularly worried about interest rates here, there is something else that makes me a lot less sanguine about the stock market. president trump says he is going to impose tariffs on chinese exports and we don't know when products those tariffs will hit, i don't see a way tor trump to impose them without causing pain the american consumer will get hurt most people in this country depend on cheap merchandise made in china slap tariffs and that cost will be passed on any way you slice it, the cost of living here in america is going to be more expensive

bad for the economy, and bad for stocks the president's team says it will have to take short-term pain economically and that includes the recent decline of the stock market it is entirely possible this economy is strong it can keep chugging along but we know economy will slow down that leaves american consumers will less disposable income to spend. they need the spending that comes from people feeling wealthier. the trade war is on three fronts after years of leaders ignoring the repatriation ways. tariffs on raw materials can crimp the profits.

and intellectual property, take a look at the carnage. the big chinese smartphone maker, and china hit us back with qualcomm and bog gus anti trust concerns there have been fantastic eras when the stock market just soared as rates go higher as it went higher. now, initially, ultimately if we go to seven, or eight, no, the market roared. not many times that the stock market performed well during the trade wars love them or hate him, trump is incredibly flexible when it comes to policy. what if the chinese bend their behavior off of real

concessions. stop some of its most egregious trade practice what if trump's -- the art of the deal and nothing more. things are so fluid that selling a huge amount of stock when our tariffs haven't been put into place, may 1st is the day. of course, i think we could see some selling into this deadline. of course already been some tariffs but i am talking about the big one. wow, if nothing gets done, let's just say, you know what, the best thing you can do, is raise some cash into the modicum strength we are going to get periodically as we did this opening, as we did the end of the day we have to do that ultimately we can go down big on this tariffs raise some cash. we have been raising cash. leave something on the table so

you are ready when the market comes to its senses when it comes to the ten-year. and you need to stay the course. i think it is worth taking pain here for the chance to participate in that rally. as most people aren't nimble enough to swap out and swap back in at a lower level. here is the bottom line. i don't want you fretting every single second about interest rates. the worry here, is don't confuse things that will absolutely hurt your portfolio. as your investing coach, it is of paramount concern lonnie in new york >> caller: boo-boo-booyah. >> what's happening. >> caller: i called you years ago regarding a speculative biotech stock.

i bought it $3.59 cents. i sold a thousand shares at $32.50 it took off. therapy drug in renal carcinoma. xel. my question is they have nothing but positive news. earnings came out and they met earnings, they surpassed on revenue, but the stock went way down for no reason maybe tariffs, i don't know. i bought more. i bought 3,000 shares at 26. and it is now 21 earnings should come in. and they should blow it out of the park. >> you know the staock better than most and i do know the cohorts.

be aware the speculation in that particular end of the stock market is speculating down amir in california. >> caller: booyah. nov artis bought avexis. yet the stock is trading around $210 why wouldn't anyone buy this stock. >> it is too risky the upside is capped the downside is unlimited. those are different industries but same possible concept. walter in florida. >> caller: hi, jim, looking for your inputs and thoughts for a stock i have owned for about a

year and one that i would like to buy for my grandchildren they own disney. jim, the stock is discovery communications which has wonderful programs for all ages. top sports programming in europe with all the emerges and acquisitions going on for the hunt in media content, as well as sports content, to me, i think discovery communications is a great take-over candidate. >> i don't i think it is a good earning john -- i don't like it on a take-over basis. listen, raise some cash over periodic strength. when the market comes to its

senses about the ten-year, then i think you want to do buying. and remember the real issue is tariff on "mad money," i am going to sit down with ceo of hasbro. i will tell you why it actually could be a game changer. and light them if you got them i am looking at ecigarettes looking at how they are disrupting the tradition of tobacco stocks 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.

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regarded as terrible quarter then something funny happened. management put something in perspective. and ten bucks swing. anticipation of liquidation of toys r us. this was going to be a real ugly quarter. shouldn't have been a surprise so sure, the company reported a 23 earning miss. sales came out about 100 million less than expected once the toys "r" us liquidation was behind them, management. let's take a look at the chairman ceo of hasbro welcome back to "mad money." >> hi, jim. >> were you surprised that the ten point swing was up three

today? >> we were focused on communicating to our audience what is really going on and we had to get through the toys "r" us liquidation and we will move on cleanly in the third and fourth quarter retailers are incredibly interested in growing with us and our business great pos in our brands. we need to kocontinue to grow or profit in business. >> i know we have a small outfit, and talking about the huge amount of toys that were in the channel, how do you know you can clear it up in one-quarter coming >> we only shipped a little bit of product in this first quarter. the rest of the product was from remainder of fourth quarter last year held back inventory across the

retail channels in order to ensure our new wasn't caught up in the liquidation we have the avenger movie, our black panther home entertainment window and solo movie coming in new innovations and initiatives for a number of our brands and gaming >> big dividends, i was surprised to bought back so little stock if the stock stays down here, in this next quarter, is that an opportunity to buy stock given so little you purchased. >> first and foremost invest in our business and we continue to do that. we did buy back about $40 million worth of stock on track to buy back 150 million and our board just approved another dividend increase which

will take place in may >> so let's talk about "black panther. i would have thought that you would have had a little more product out when you first came out, can you catch up with the home entertainment >> we built the most robust line than we ever built for marvel skews. the popularity is amazing. we hope to catch up which comes this may and the third and fourth quarter, a lot of new product that will come to the market including "black panther" role play and action figure marvel is having a great year with us. and avenger should add to that six great films this year and go into 2019 with additional marvel strength. >> should we be worried about some sort of ennui fatigue with

the "star wars" line >> it will be the new high level that goes forward. we do have new entertainment every year and it gives us the certainty and visibility to the brand that i think is fantastic and continuing to put more innovation >> how did you do other places other channels and are you excited about them, including the direct to consumer channel. >> we are very excited and the fact over the last three years, our u.s. team has added more than $21,000 of retail we continue to develop new product and innovation for every price point. this is giving us the opportunity to get great toys and games in the hands of our kids who enjoy the private characters and enjoy the entertainment that is coming

we need to modernize our retail organization and add new capabilities and more content to commerce this is all about that omni channel sales experience we want the consumer to move from any for mat to any format. >> i want to thank you for being clear the whole time you said it was going to be tough. you said it was going to be tough because of toys "r" us how are you able to handle what i regard of seven months of distraction. this was one of the oddest i have ever seen. >> it did come on relatively suddenly as a liquidation. we thought they were going to reduce the number of stores and recognize while the bulk of the distraction will be behind us. the u.s. business represents two thirds of the global business for us we have regions around the world where we don't have perfect

clarity. we are waiting to hear about the asian business parts of europe will be sold to a european specialty retailer that is fantastic. once that gets resolved, with he can move forward and i am certain a year from now we will not be talking about toys "r" us in a negative light. >> great to see you sir. the worst is over. you know what, buying some hasbro ahead of what could be a great second half may be the way you should focus on the stock. stick with cramer.

mad, what a difference a week makes last year i told you you have to

stay away from newell brands creating a house of rutterless unrelated consumer brands that don't necessarily belong in the same roof. causing the stock to lose half of its values versus its highs last year. no executive changes very little accountability more importantly, newell will become the ultimate battleground in the midst of a three way proxy fight. the activist investors playing the role of blondie. starboard wanted to start over with a new board of investors. and only got more complicated from there

both carl psyicahn and the guys starboard, this seems like a new win situation to me. split board. every day management spends on this board room drama is another day they are not focused on turning around the business. he had a plan to turn the company around and now i think it can work with the help from the board. i didn't see it happening. but a lot can happen in seven-days what's that? i now believe there is something worth owning yeah because the facts have change. when the facts change, i change my mind. this morning newell brand announced an agreement with starboard. and also nominating one of starboard's candidates the stock market didn't seem to

care about this development. i don't know why i think it is a game changer brought in and friendly consensual way without the ranker and the drama the stock might be worth buying. last week i told you that i am a big believer in starboard. the problem is some of the board nominees dropped out so even if starboard had won the proxy fight, still only control four seats out of 11 that would have been a pure victory. given the contentious nature they would be frozen out however, now that the proxy fight has been revolved amicably, i like it. and when starboard is in position to do such a thing, their track record is darn good.

tremendous success with darden, marvel technology and integrative technology we own shares in darden and we have been recommending to you marvel and iti we like starboard. for starters remember that deal management made with carl psyic that we didn't like. and the final one went to his son's friend from college. seriously, i thought the deal entrenched management. i was so angry about it made it so polk's job was safe the new deal the three starboard picks coming

in they are all good additions for example, bridget won four years running victoria secret. gerardo lopez leads starbucks. third, unresolved corporate government issues. the old boarder of directors had an executive committee that acted like a board within a board. they were secret working on a huge asset sales program. when three formers left. when newell made its first deal with psych -- being replaced by a starboard guy. perhaps the most important now that newell brand is no longer embroiled in the proxy fight,

they can turn things around. this company still has problems. newell still has a ragged mix of under managed brands they still need to unload many of them. the balance sheet is still pretty good. still need to do everything they can to improve efficiency. they can actually focus on doing those things that with some assistance of very smart people. a week ago this story was about starboard clashing with carl icahn. that is the wall street's version of the avenger or justice league last week i was critical of ceo mike polk. now with starboard's directors coming in, there is accountability if polk can't deliver, that means he is finished

he does need to feel like his job is on the line he has been lucky so far but that may be baked into the stock. if he can't turn it around, then the board is spared by starboard can bring in someone new and polk seems to wielcome this new level of accountability. put it all together and overnight newell brand has become a turn around story that is worth speculating now baun bottom line, i had no interest in newell when it was stuck in a proxy flight i guess they were paying attention because now newell has made peace with the activist investors of starboard now you have my blessing to buy the stock.

starboard is that good with the understanding that he is most -- if he doesn't, he is most likely gone arnold in florida. >> caller: how are you, jim? your thoughts on j & j both short and long-term recently legal challenge with one of their products. i heard an excellent interview with their ceo >> i think that alex scoreskey is going to be the guy that you want to invest in. buy some buy some j & j if you are a long-term shareholder. short-term, i would buy a little bit. and if the ten-year goes above

three, i would buy more. this is now a very different newell story because of this change on the board. it's become a win-win. you have my blessing to buy the stock. looking for a hot trend with momentum, i will tell you how electronic cigarettes continue to smoke cottonel is probably in your home, it is in mind. should it be in your portfolio and then tonight edition of the "lightning round." stick with cramer.

every now and then you can watch the stock market and realize the world has changed in real time. moments where investors suddenly understand powerful new trend and it blows up the landscape in an industry that used to be considered safe. overnight stocks get obliterated as sentiment turns on a dime and goes negative very fast. for example last week we saw the market sudden recognition that

the cigarette industry seems to be in serious trouble. disrupted by the rise of vaping. you see people with vape pens all over the place they are effacing their own public health backlash for years investors realize they would be able to profit from vaping just like they profit from smoking last week came and over the course of three short days, the tobacco stocks were bent, they were speindled and mutilated by the realization that electronic cigarettes has become a serious

threat brutal down great of altria on wednesday. the whole industry blew up in the wake of philip morris international hideous earnings and believe me, this was stunning until last week both altria and philip morris which owns the international rights of these brands were terrific performers. these stocks had been running and then it fell apart on wednesday, adam spielman at citigroup published a chilling takedown pointing out these companies used to be consistent. fewer and fewer people want to buy cancer sticks. because things were predictable, tobacco companies could off set by shrinking prices.

the big boys know the tobacco laws protect them from competition. how the heck can you get the word out when it is illegal to advertise in most forms of media. spielman noted that model is under threat no longer falling at a slow and steady pace. it recently developed its killer app. juul it looks more like a piece of technology than a vape pen and delivers more nicotine than the competition. sadly, popular with teenagers. the sales grew in eight fold

it is a great growth story in a perfect world, no one would inhale this stuff. but we don't live in a perfect world. reality aside, work with me, this thing is selling like crazy and eating into a tobacco industry in the way other ecigs never could. spielman describes the difference to juul some cigarette companies have announced knock offs landscape has changed and -- make it is much more difficult for anyone in the industry to generate earnings growth while the tobacco companies can get into vaping, they become money losers he worries about their earnings.

who would want to swap out of an incredibly profit business and lose money profitable over time allowing them to sell more high margin consumables as spielman explains the moment juul is eating everyone's lunch. before the downgrade last wednesday, i haven't seen anyone make this case pretty much everybody loves them philip morris international imploded the rest of the world was supposed to be stronger, the stronger side of the tobacco business headline numbers looked okay, they actually gave you a nice earnings beat the underlying trends were terrifying the problem, philip morris saw volumes decline by 2.3% with 5

pe5% decline. ma marlboro was down 7% across the board. european region, 10.4% latin america and canada down 1.5% the only region still growing is south and south east asia. that is devastating. the global tobacco industry was supposed to be robust. philip morris quarter tells us vaping isn't just crushing tock b back coin the u.s. iqos platform which plateaued years before management expected

to you can understand why the stocks went literally free fall. tumbled from 181 to 85 in a single session and the pin action devastated the rest of the group. altria reports on thursday and we will be watching them like a hawk if you have been on the tobacco stocks, you are trying to fight the tide you need to bring in new users or you are toast but millennials would rather vape than smoke. the margins on ecigs are so much lower than on real cigs. what if you wanted to invest in vaping instead no publicly traded vap

companies. but if juul talks about becoming public, i will let you know. threat from its vaporized competitive. it could even have more downside "mad money" back after the break. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - 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?

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>> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." i tell you to buy, buy, buy or sell, sell, sell 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." let's start with john in new jersey. >> caller: booyah. thank you for taking may call and i appreciate all that you do for us investors my question is on

ingersoll-rand. >> works well. scott in florida. >> caller: booyah, pleasure to speak with you accumulated a small position in blackstone i wanted to get your opinion of that particular company. >> i have been a backer of that one for ten years. i think he is real good. don't know the gent myself though nancy in florida. >> caller: hi, dr. cramer. my stock is tmo thermofisher. >> great stock we ended up making 50 points on the table. this thing is a horse. bob in pennsylvania. >> reporter: booyah from pa in the heart of the cold region my question is about new tek

newt. >> i am not going to recommend an opaque stock. bill in new york. >> caller: booyah. thank you for all that you do for us home gamers i have made some very good money from your suggestion. >> i love to hear that long days. what can i do to help. >> caller: totally committed to this lithium and batteries and nibbling away from alb. >> i prefer fmc that is my favorite. i need to go to christian in new jersey. >> caller: what are your thoughts on nike >> nike has had such huge executive turnover and the stock doesn't come down.

what happens when the turnover stops? [ buy, buy, buy >> caller: my stock is zebra >> that stock is up 30 points since we recommended it last chris in california. >> caller: hey, this is chris calling from the city of roses what is your opinion in aim mun therapeutics. >> i like this company and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise.

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i am reeling just reeling from the results we got this morning from kimberly clark and proctor and gamble results we got. company talking about 2% growth. positive developments in huggies diapers. company organic growth twice as good as proctor. i was mesmerized about the

weakness consider how worry some the future is for kimberly clark they need to fret about challenging and competitive pricing and devastating diaper numbers in china where they saw mid single digit decline. they are losing a lot of chinese market share and it might not come back because ceo told the analyst, the local chinese brands that have picked it up through ecommerce. get, that a trade down when you consider their inferiority to kimberly's products. it would be one thing if these were company specific issues unique to kimberly clark but proctor and gamble said the same thing, quote it was a challenging quarter in a tough environment, end quote

we have synchronized global growth this is the moment when people should be trading up to solid brand products not going down to private labels both companies are losing share online as faulk told us it could be just beginning it was so bad on the p and g called that it almost descended to bewilderment. bark lays talked about how ways the company is being hurt. perhaps from morgan stanley said it best, when she asked do you think there has been a material change for the profit growth outlook for the categories that

p & g -- negative pricing in every single division in quart er that is despite a commodity and that is really the issue here there are structural changes bringing down prices at the same time raw krocosts a rising to me this is exactly what is happening with the food stock. can you imagine if the commodity spikes continue? sure, both stocks have nice dividends. but the environment where it is rushing 3%, those dividends are not going to protect you historically, i like this stock, but that con sis sency is being undermined by the private label goo goods and the commodity issue that is going away no one cares the stocks these stocks are

going out of style in the wall street fashion show on top of their bad, bad prospects so while anything can bounce, i can't in good conscience recommend either of these stocks as far as i know, at least with these managements no exit for them stick with cramer.

to reiterate what i have been saying at the top of the show and for many months it is the tariff issues that is important. hate him or like him, president trump must he feels bend the will of the chinese. and you don't have to worry about the ten-year

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 it's simple. easy. awesome. the