>> i'm fine. i'm rock solid. >> carter makes clothes? >> that's right. >> final trade please, sir. >> nuance and i'm going to laugh at all of you when somebody buys them a week from now. >> my mission is sile, 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 hepeople 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. pause. yup, today, the fed hit the pause button on the rally,

making it clear they favor more rate hikes than expected we come to believe only trade war could derail the economy is too hot the feds feel compel to take more action. ral reserve is doing the prudent thing, raising rates that made buyers more cautious what did you do? recognize that owning stocks just got harder. sure we have been rallying despite the increase in rates. but with each additional rate hikes, it makes lending more expensive. zero reason for panic, the market plummeted and then

bounced back and then it gave up the ghost near the bell as it is just a fact of life that higher interest rates translate into more investors wanting to swap out stocks and go to bonds we had a red hot price effects this morning when the fed says the economy accelerated that makes many investors assume that inflation could be around the corner digitized thomy that produces lower prices for everything that we talk about all the time for "mad money. or whether the fed will recognize the deflationary power of theernet, another story for none of that matters. higher rates trigger rotation out of stocks than they do into ks it meagerly moved into the

banks, mortgage rates are going up as thee money on your deposits even though most of the market got hit, we did see a reversal in a few bank stocks that acted miserably. jpmorgan up for most of the session and goldman going into this meeting, there was a consensus that the fed would rate before it got more aggressive and that was wrong. jpmorgan is the world's premier commercial bank. the analysts will fall all over themselves to recommend them tomorrow time warner court decision is going to unleash a wave of new mergers. come cast just bid $65 billion for the fox assets, cash

goldman is by the way representing fox in the negotiations fox is going to have to deal co the otheron the one hand and goldman will get a clean bill of th builders have been lousy performers for ages. only going to get worse. we don't grow enough trees in this country to keep lumber prices low retailers are going to stop getting the benefit of the doubt at least for a few weeks that they have a big run. these purchases are made at thes and higher rates are going to make credit card debt more expensive. we are in the fed blast zone for a moment i think this could eventually could be a good buying opportunity but the group needs to go lower first.

the consumer packaged goods stock tend to sell off when the feds get hawkish as they did on top of, that e cos have seen their margins get squeez two issues that came up, i expect profit taking in the consumer product stocks because they have been creeping up i told members of the action members.com. we like pepsico. not going to work anymore. tech industries could get hit because of worries of trade and concerns of a worldwide slow down you will hear chatter of emerging market woes i say woe is me, it is such a staple of journalism talk and

people freak out remember the way the market can easily craft a scenario that says things are going to slow down because of tariffs or interest rates. no one is going to disagree with you, that is too dangerous commentators never get called out for being too negative this was a negative development today. you can't be as bullh abt the market as you did yesterday. you can't. positive point of view, yes, you got it, f.a.n.g. and i know these stocks may not be up your ally, but remember how f.a.n.g became f.a.n.g these companies don't need strong growth to propel their earnings facebook and alphabet are taking share in advertising from traditional media. and that is accelerated. even though that wasn't enough from keeping alphabet from being

dragged down amazon just a horse. advertising business on fire amazon is at the heart of di digitization rates will be low by historical standards, so it is a pause. some stocks can go higher in pays mode but not the same stocks that were going up before the pause. and in the end, let's face it, this whole game just got harder. michael in florida >> caller: that's lantanna, flo. i like you and delivery i am talking about adms.

a pharmaceutical company works on neurological problems and deveped a drug that has been approved by fda and i am behind in that stock about eight points wondering if you >> so that is really a speculative small cap stock. that may not be what you wt toos been taking those to the wood shed and they do poorly in an overly inflation environment. i am going to take a pass on that one thank you for the kind words justin from south dakota. >> caller: booyah from south question is about h & r stock plummeted and fell almost 20%. >> it was a bad conference call and they kept saying how great things were.

and then lowered the boom. it was a miserable call. i prefer intwit to them any day of the week. they did not do a good job dan in newk. ler: long time fan love watching at 9:00 a.m. and is 6:00 p.m. cgc. legalize recreational. with expansive international operations from africa, germany and australia. not to mention big pharma operations, when can we expect to see major itrial, and nd it to the moon. >> this is a tough one the only one that i have been second, we know consolation has

a big investment which if it is go, it is good for m i like the way the company oke. up 30% for the year and i am not going to pound the table just after everybody knows what happened in canada we are in a pause. and courtesy of fed trying to do the right thing. plenty of stocks can go , but a lot lower too. hottest clubs wall streets billion dollar club. you can invest in the names. ahead. one of the hottesttocks in the market and the ceo is here with me tonight ceo of rh. a promise that trump made on the campaign trail >> at&t was to buy time

warner it is a deal we will not approve. >> you can't win them all. how will the decision impact other telecom and media giants i'm investigating. >> 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 head to madmoney.cnbc.com.

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stunning rebuke. honestly the stunning rebuke is putting it likely. this is more like a thermal nuc. and the fallout will be incredible this nuclear assault will unleash more mergers and higher bids most likely will be met with

friendlier arms than the justice department gave at&t the judge seemed helbent in showing that the justice department doesn't hava clue about it it calls into question their viewing habits and for once, i'm not even exaggerating listen to the snippet from the actual ruling. and i quote after all, you don't need a weather man to know which way the wind blows explain how much the world has changed. and in a world where facebook and google control so much of the advertising department the old school untargeted advertising model has been totally left behind, and nothing about this merger changes that

if you read closely, it may make this a failed merger at&t and time warner will keep losing market share every day. many people saw this ruling as a subtle rebuke of president trump. and in the huge amount of legal amounts it dgenerated but i thin this is a side show. this is a brief that says the justice department doesn't understand it is a clarion call for companies like disney and co comcast. and they need to do everything they can to stave off the threat of f.a.n.g all about to -- the whole industry is on a collision

course with f.a.n.g. that is already set in stone to borrow another quote from bob dylan, the answer my friend isi. makes so much sense to me. let's go to joel in viinia. >> caller: thanks for takiy call, i have been a fan since the kudlow andmer days so glad to hear that kudlow is out of the house. >> great news. >> caller: it sounded like an interesting candidate for my establishing a media position in my portfolio, i didn't have one. and itlike good revenue growth and good dividend and they were buying the cbs radio asset which was a lot of sports and the news and everything. and i did my research and

started buying it in the fall on down days. and i listened to the first conference call in the winter and mario gabeli highlighted it as a favorite. >> but the problem is that the may quarter was not good i thought they would have better quarters than it did that was a bad miss and i was quite surprised. i thought they could have done better mark in maryland. >> caller: hi, professor cramer, big booyah from out here in baltimore. >> how are you doing >> i would like to talk to you about marathon petroleum i have owned it since it spun off from marathon oil and with this endeavor thing, i am feeling like i am in the hou

of pain. >> this is just a pit stop these guys know exactly what they are doing, the spread is terrific i say stay the course. steven in florida. >> caller: a warm central florida booyah, m. >> thank you, very much. what's up? >> caller: i have been following tivo since late last year when the international trade communication -- infringed on some of their patents. and my thought is that since tivo has a market cap of less than 2 billion, this company or maybe another company would buy them out >> we don't want to recommend stock on basis of a take-over. i don't think there is enough to say.

so i am going this way don't buy, don't buy >> it is a true blast to the government what can i s times are achangin'. s taking it to the world of design and wall street by storm for that matter. should you furnish your portfolio with the stock talking to the ceo wall street's hottest club of $100 billion members and tonight's edition of the "lightning round."

what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

dn as the mall declines, this home retailer found itself that's serious about service

the stock has been rewarded has the company been restored? yesterday, we watched in awe as rh, the company behind restoration hardware saw stock soar more than 30% a lot of it was simply because restoration is making a killing here strong economys great for super high end furnishing em porium let's check in with gary friedman welcome back to "mad money." >> good to see you. >>et's go right to it. this one should not have sused people at the bottom, what did you do >> i started buying rh stock at $20 a share and bought it four times all the way up to $97 a share. and i think we were the seventh

most shorted stock >> what did people miss? >> exactly what we told them okay, i mean, now, what we told them, things that we were doing haven't been done before we moved from a promotional model to a membership model. most people are shrinking the size of retail stores or closing them and we are building the biggest one anybody has ever built most arenating catalogs and we are mailing the biggest you've seen. and completely rebuilding the operational infrastructure in the company in a unique way. and so everything is a little different. and everyone wants to put us in a box and the fact i are building new boxes all the time. so hard to figure us out. >> people doubted you, but as

you said in the call, when you came in, the average store volume was $2.9 million. and we have stores doing 60 plus million a store? >> we do even the small, and our new designleries, we have stores in excess of 60 million. and we are going to open one here in new york city which we believe will do in excs of $100 million. >> i remember one in chicago people were like, this is ridiculous now you are intoty e are in t home business we tryo ur the lines and create spaces that were more home than store and the next logical step is to blur the line between home and hospitality

if you go to someone's home, they offer you food and something to d so we are not the first retailer to put a restaurant in the store. bloomingdale's, the big e, most of them were a bolt on a department store, i won't say their name, they just opened a big new store in marin county and i heard they are opening the restaurant and i go down and see the store and i look all around and i can't see the restaurant i go to e second floor and i ask someone and i said i heard you have aan we do,hrough children's department and through the porthole and there it is and it had nothing to do with the retail store so just having the restaurant is not the key, it is how it is integrated into the store. with ours, it is centrally located and part of the

experience and we are doing our first guest house in new york city right around the corner from our big gallery, and we are going to try to re-define hospitality so people say you are going to have your restaurant a showroom. no, we already have a showroom it is 90 feet away we try to innovate and try to look beyond today's reality and see tomorrow's future. so spring of '19, when the guest house opens, we will talk about that. >> very few people have the vision and the taste and the financial smarts you did a convertible bond and you bought a huge amount of stock when the stock was lower and that is to advantage of the shareholders. >> we got smart.

we were lucky enough to go private with smart people. and first time, look, i grew u s a stock boy at the gap i didn't know a lot about financing, but i had an opportunity to work for smart people, and i studied warren buffett, and i watched in 2008, and 2009, and it seemed like those with capital, are those that were capitalized. and when the capital markets were ripe, we thought can we access capital markets and we were able to do two convertible deals at zero coupons. and someone told me, it is like free money and we didn'ed the money and that is the good time to get the money, 600 million plus of convertible bonds and when we

went through the transformation, and we werpublic -- and the question is when you blow a tire, do you pull your car into the pits and change the tire or go right back out. we decided to rebuild in the pits so we articulated plan to rearchitect the back business. it looks like all the cars were going buy us and people thought oh my gosh, and the stock went down to 25 and we said, look, if they don't want to bet o, we will bet on ourselves so we took the money on the balance sheet and raised other capital and bought back half the company. >> it was brilliant. i applaud you and your team. >> my team is here i have my grateful t-shirt here because i am grateful to them. >> i like that sharee

credit with the team it is not done going higher guys, stick with cr. >> ancer: do these $100 billion club members belong in your portfolio? cramer breaks it down when "mad money" returns

this market doesn't get nearly enough credit for its strength so many positives. we are constantly worrying about the next big bad event that is going to derail everything for all we know, people will be crying wolf tomorrow about today's fed rate hike. i think that is a mistake. tonight i want to give you a new way of looking at the stock intring the $100 billion club it is pretty self explanatory. why should we care about these mega cap stock as soon s?

there is no nominating economy the only company that gets their names on this list is by producing years and years of gain tonight we are going tcus on the newest members companies that have reached this level in the past year fantastic place to search for winners even in a down take like today. this club has seen 15 new members. this list is a whose who of what is working we talk about these every single night. but haven't put it in the context. let's kick it off with the members that joined in the second of last year. >> bcom, and united parcel they all have $100 billion in market capitalization and they have stayed above that level to this day

dow dupont, the company merged its way. and it is not going to stay there. last year the old dow chemical and dupont completed their monster combination. but the whole idea of this merger was that it would only be the prelude to a three-way break up dow and dupont would combine forces and then split up and those spin outs are coming next year. given the trdous amount of value being created by breaking up the tyco company, i am a believer in this story i would be a buyer right here. second, you've got nvidia, which now is $159 billion valuation. i like the semiconductor so much that i renamed my dog after it and my travel trust.

why not. three years ago nvidia was a $15 billion business now 30th largest company in the s&p 500. the ceo is the man with a plan he started laying the groundwork for nvidia transformation a decade ago you see that cohort, video game stocks on fire now that the gaming space is so big, nvidia has found other sources of new uses for its product. from the data center to artificial intelligence, yes, all of the same tips that you use for gaming, turn out to be fabulous even better than traditional semiconductors and that is how nvidia has been able to accelerate its revenue growth and the latest quarter, plus 65%, always been delivering

staggering earnings. it is a fabulous story and nvidia does get pull backs and someone links it to cryptocurrency and you don't have to wait too long, you will get your chance third, nike broke through the barrier last year. it is a welcome back to the club moment after spending a couple of years in the wilderness, nike got its groove back late last year stock is up almost 50% you know we have a red hot bull market in apparel. and nike reported last month that might be your moment to pounce fourth, texas instruments it lacks the sex appeal of something like nvidia, but it is

remarkably consistent. making things like analog chips and they make tons of micro controllers for the internet of things this company iracious repurchaser of its own stock when they get slammed, you know they are in there buying it with you. fifth, my personal fave is union pacific. now is $145 billion valuation. this past earning system company after company kept telling us about all of these problemwith controlling transportation cost. and that is basically money in the banke market's w of saying shouldn't be too worried about trade war with china also have an unbelievable position to mexico possible that we worry too much about nafta. and we heard from ceo.

next time the stock pulls back, you might want to consider buying union pacific six is broadcom, made it to into the club via a series of monster applications and before that, buying the old broadcom the ceo is fabulous of making these take-overs now that their domiciled in the u.s. again, easy for tan to get back to wheeling and dling investors are constantly fretting about reduced iphone production and they are in there everyday number search, is united technologies, it joined the club last year but hanging on by the skin of their teeth. people have been worried about

industrials will fair if the trade war with china gets hotter than it is united technologies is firing on all cylinders he and the company may break itself up to unlockue whatever they decide and i think they will indeed breakp after the rockwell collins deals closes i trust them to do the right thing. and finally, it is united parcel which joined last year and then got booted and rejoined in the last few weeks as much as i like the transportaon companies that benefit from the rise of ecommerce. here is the bottom line, when you look at the companies that reac$100 billion valuation last year, you will find high quality group of stocks. not all of them are worth owning but most are worth putting on your shopping list these are the ones that joined late last year and are doing

good but stay tune for the most rese recent additions this is coming after the "lightning round." madd money is coming back after the break. benjamin franklin captured lightning in a bottle. over 260 years later as the nation's leader in energy storage we're ensuring americans have the energy they need, whenever they need it nextera energy.

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sponsored by td ameritrade it is time it is time for the lning round on cramer's "mad money." that's where i take your calls 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." mike in new york >> caller: one quick thing, eagles to repeat quick thing i wanted to ask you what is going on wite stock xylem? >> i am going to reiterate the buy. rob in virginia. >> caller: jim, ktpi -- kpti

>> that is a very speculative situation and i can'e it here pete in maryland. >> caller: jimmy, happy wednesday. >> almost through with wednesday. what's up? >> i have nrz is what i am talking about. >> very high yield don't know if it can be backed up because i don't know what they own they have mortgages and i can't figure out if they are good or not. i'm taking a pass. kathy in arizona. >> how are you >> doing good. >> well, 106 degrees >> caller: i want to talk about ticker system kem. >> it is worth buying. it is speculative but it is a good one

brian in new york. >> caller: booyah. iova >> we are willing to accept as long as you understand they arks d nothing more chris in massachusetts. >> caller: big bay stay summer time booyah to you. >> caller: calling about a mid size player. cassela. >> i think you should be in waste management i need tyler in minnesota. >> caller: i had bought boston scientific when it was five bucks and now it is $31.60 should i buy more of it? >> take out your cost base tomorrow and play with the house's money.

it is an earnings story and they are a remarkable company dan in california. >> caller: hey, jim, thanks for taking my call how are you today? >> good. how about you? >> caller:leexcellent. i own shares of magellan >> it is going higher. listen, i thought ferc was going to derail this stock and that ladies and gentleman is the conclusion of the "lightning round" >> announcer: lightning round is sponsored by td ameritrade why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! u know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills.

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♪ money make no mistake,his is still a bull market. that is why tonight we are going over the newest members of the hundred billion dollar club. the latest companies to reach $100 billion of capitalization let's get to the seven companies that have joined the club in 2018 and most importantly, what you should consider being a buy here first we have netflix. after the stock caught another terrific 4.4% rally. up 95% for the year.

what can i say that hasn't been before, one of few must have subscriptions in the world that said, people love to about the valuation every time netflix surpasses another old school media titan, you hear it is too expensive this argument leads you astray every single time. they are up ending the entire industry, they are a disrupter however, i hate to chase them. netflix is about to make a ton of money i don't blame anyone for hesitating buying netflix at these levels, ideally i would wait for a pull back before buying more. the technical term is that they are about to inflect into the territory. and that would be amazing. second, we have adobe.

always been in a league of their own. under the leadership of ceo, friend of the show, the company has reinvented itself. new adobe is the go-to guys if you want to build a website to keep customers coming back for more and more. we pay them subscription over time rather than buying the software up front has totally supercharged the numbers adobe reports tomorrow night the expectations have been elevated as of late but that is not new. tune in tomorrow and we will go over the quarter which i bet will be a great one. it has to be a super great after this one abbot labs crossed the threshold this year. abbott ceo miles white, we

profiled him a couple of times what put abbott labs over the top. the deal closed early last year and since then, abbott stock has been off to the races. it has been trading sideways my view, i like abbott labs a lot. comps a bunch of new products in the works and consistent track record. abbott has either met or exceeded every quarter for more than ten years you can't make it up the stock is only up a couple of points this year, only off a couple of points from its high i would buy some right here and buy more if it drops to say, 58.

fourth is accenture, acn helps other companies get th most out of their technologies and incredibly well-run. i wasn't surprised when they joined the club this year. these guys make it easy for their clients to upgrade their systems in order to embrace the cloud or mobile or advance data analytics. okay, you rarely hear it being touted a except on the shstock has a tendency to sell off after earnings even when the numbers are excellent. plunged from 162 to 14 search on the news and that is the best moment to buy. you might get a better buying opportunity. every time it comes in after the quarter, we tell you to buy.

fifth is booki holdings, formerly known as priceline. the investors were worried that the online travel space was crowded and turned out to be unjustified. i don't dislike this one, but i do think there are better opportunities out there. opportunities like number six, salesforce.com thats another recent edition to the club. second cloud king to join the group. ove have watched while the ceo has built the greatest in history. generation of smaller software of developers. keeps generating snning revenue growth charging towards 20 billion

which analysts believe they will hit within four years. wouldn't shock me if they do it in three years or even two my advice, pray for a pullback it is a terrific stock to own on a multiday fed inspired sell off where people come on and say the sky is falling paypal has joined the club i have been a fan of this company even before it spun off in 2018. being a bull on al is not at easy. nay sayers saying the company didn't stand a chance. but thanks to the leadership of daschulman, it has been proved wrong. and i think the stock has more room to run. paypal comes the way to bet now

that organized gambling online l here is the bottom line, when it comes to the newest members of the hundred billion dollar clubs dance with the one that brung you. these executives created tremendous value here. it may seem like ailly way to pick stocks but in a bul market, winners keep winning and nothing says success by joining the hundred billion dollar market capitalization club welcome to the club and stick with cramer. experience the 2018 lexus nx

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now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. nding your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. comcast versus disney, an epic battle. and i got to tell you, i look at these all the times and i don't know who will win this one but it will be costly for whoever does 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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