six straight days down for the dow now, starbucks down after hours. that discuss it for the "closing bell, everybody" "fast money starts right now >> "fast money" start right now the traders are pete najerian, steve grasso, guy adami. both are reporting earnings, those conferences are kick off right now. check out the big after hours movers, starbucks, it is dialing back its gross prospects pete here says the name is a screaming buy. he will explain why. we start with those trade wars in today's sell-offs

stocks getting slammed as the rhetoric with china, the dow turning negative for the year, in fact it was so bad at one point we reached back in time bing >> is that the one with the big tee shirts with the letters? >> exactly >> but as the trade wars take the mark, prisoners that want to difference chayet the stocks and which ones unpunished on fears of a trade war so we start with boeing down nearly 4%. this is our game for tonight game right at the top. trade war stock or not a trade war stock. very straight forward, one would think. tim. >> nothing straight forward. i can play this game not a trade war stock. here's why that's right i think the market is unjustly punishing boeing if you look alt what's going on, especially as it relates to china. boeing is mostly shifting 737s

they're ultimately doing something that i think these are low margin jets. if you wipe china's deliveries completely off of boeing this is probably $5 to the share price watch are your choices are you going with an abus the neo a 320? they're professional seven, eight years behind >> tim, it's over 12% of their revenue is derived from china. how can it be unjustly in 2017, they had a 300 plane contract for $37 billion >> it's about 9% of their order book my understanding, listening to the street, you take added livery, it's five bucks off the share price. bottom line here, airlines are not purchased at whim. i don't think china is in a position also the deal they have means a lot of the small body airplanes are being made in china. >> that is what insulating for boeing here the bottom line is

boeing had a miraculous run on the way up a lot of this is air out of the sales. >> eastern the market is beating this down, the poster child of the trade war. it's a fundamental am. it will not be hit >> i don't know. was i not clear? i knows way nervous about this game i want to get you on record >> the calendar of like if you did the calendar of trade war stocks, boeing would be like mr. january. caterpillar right behind >> i think you are wrong what is the choice are they going to an airbus plane correctly. >> you don't have any china-related stocks at all? >> of course, i do we'll wade for that. >> this did, boeing. >> apple, trade war stocks or not a trade war stock? guy adami, are you up. >> one would think the logical answer it is a trade war stock.

a significant percentage of the revenues, most of the components are built there. oh my god, apple will get decimated. i would say, however, not a trade war. >> wow another guy getting skin in the game. >> i think i'm playing the game right. if you look and this is my -- i think tim cook is, i think his relationship with china is such that they will not be harmed i think they have some sort of hands shake agreement with the trump administration and probably the administration in china. listen, don't come after us. you want to do ancillary stuff, that's fine. my sense is this stock will not get hit if there is a full blown trade war. >> here's the thing, if it's a full blown trade war, though what does that mean? >> i don't think it will be. >> the growth you are getting right now, this will make you happy. >> thank you >> the growth you are getting right now out of china and japan, china we are focusing on right now, it's something we all lean on all the time it is spectacular. 21% growth right? that is something to look at and

go, oh my goodness, this is a huge number. if you are right the hands shake agrooemd griem is there. then i think you are right i think this is not a trade war. >> it doesn't matter if it's a hands shake agreement. it matters if it's a trade war stock or not >> there has to be a trade war stock. >> what are you saying it is a trade war stock? >> no, i think it's a trade war stock. however, i do think so but that's as long as that hands shake agreement is a part of that >> it's trade war time >> there was a great article about how the iphone components basically $370 of a $1,000 iphone are actually made from overseas if you think every one of those countries in line to get a piece of the component, it's a part of the iphone manufacturing process, absolutely, it's a trade war stock. no question it will be impacted. >> that to me is -

>> you are right >> you already talked about boeing you got that point in before >> boeing can make history at this point now we're talking apples >> here's that same method >> the components, that's an interesting argument because they will probably have to pay tariffs on the components going into china into those factories in order to be assembled. the bigger problem -- if the chinese government hampars them being delivered or manufactured - >> if that happens - >> so now he's backtracking. >> trade war stock >> absolutely a trade war stock. >> right >> nike. >> trade war stock >> thank you, why? >> trade war, 12% of revenues. when you take above 10%, it's a trade war stock. >> revenues or china >> ref newers coming out of china, 12%

few hook at the performance, few look at under armour, i know we've had a rebound, under armour, not a trade war stock. >> we've had trade war chatter for four months. nike is near an all time high. >> it doesn't matter whether or not there is an impact of it the market tries to discount whatever they have you are thinking two dominos removed. that's why you don't get the game boeing is a trade war stock. >> i don't know what you are saying right now >> i know, that's just don't get the game >> again, similar to apple this is where the growth is for nike >> they're getting growth everywhere internationally. 17% of the growth, the recovery of nike stock is north american - >> no, it's not. no, no, no, you didn't like nike because they were getting weak in north america >> i think the competitive landscape is such that they're taking market share back from adidas that's a more important dynamic. >> can i ask a question, under what -- i know a formality here,

under what circumstance are you actually concerned about the revenues from china for a nike are you concerned -- is eight social boycotted , social -- is it a social boycott area >> you want to see brands boycotted there i think you will see the mcdonald's of the world the yuns the nikes, i think will you see the apples >> people in china will stop going to the mcdonald's because -- >> we are looking for our next stop mcdonald's, frayed war stocks. >> go ahead. >> mcdonald's? >> yes here's the biggest problem trade war stock. here's why if many think it's an all american company, it's not 35% of the revenue is coming from north america when you look at china and the rest of the globe, 22 is the revenue growth of what you are seeing that went on right now here in the united states. >> have you ever heard of the big mac index, mel >> the big mac costs around the

world 12k3w4r by the way, big mac costs more than here people are over paying for mcdonald's in china. they are going out of the golden arches, it's a goebel iconic brand. they will not stop >> it's an all time high >> domino's, pizza, not. >> how did dom nos get in this >> we have a much more important. >> do you understand >> the best relationship in china. i would suggest it's apple which is why apple, when i answered the question is not a trade war stock. did i say that >> not a trade war stock all right. >> confusing game. >> for you >> waking up, it's confusing >> for more on what a trade war means for the mark let's bring in bob nardelli. former ge transportation ceo, he's got a lot of former roles

bob, welcome to the show >> thank you >> you have a great perspective on what these stores disputes can mean for businesses, where do you see the big impact, if at all? >> i couldn't help listening to is this a discussion or a brawl there? sure i may not be invited back, sam, i'm with you >> that's what i'm talking about, my man. >> we are assuming we already have a trade war i think that's where the mark was today. it was trading on rumors any on fact and so i don't think boeing is a trade war stock i think jim mcner nierney, where are they going to do airbus in i don't think so they need aircraft to grow the economy. they put $60 billion back into the chinese economy to make sure they could stimulate it and i think what wha we are missing here is this president has been in office a year you kind of see, you kind of can

predict outrageous you know recommendations or take an outrageous condition and pull back i saw this in space when we were at ge together jack would always set an outrageous goal. of course, he'd bring you to his side of the table. he testimony get what he was asking for he got the off we are seeing the sausage being made the last administration, you didn't hear anything, you didn't see anything. so you didn't have the insight we have through the benefit of everything being tweeted out in the process. one time it's a rocketman. hey buddy, good to see you so i'm not as concerned about this i think we over reacted. i think the algorithms took charge i don't think there was a lot of intervention we'll see tomorrow we got a little pullback from the depth of 200

what are we at 280 or something? these are industrial stocks. >> right >> they will get hit the hardest. >> industrials are the sectors if correction territory right now. what would you had advise the president? i mean having had a front row seat through the negotiation with donald trump seems to have adopted. at what point do you pull back and say it's gone too far? the market is reacting pretty dramatically when it comes to certain sectors and stocks >> i think again the president is going to do what he's going to do. >> sure. >> but i think he's a very reasonable individual andese going to let an outrageous expectation. he will pull him to his side of the table. i think when he sees movement in a positive direction, he will come back over to a more reasonable decision point. >> so you two were football players. you have to study film you look at the tendencies of other teams, it's sort of easy to study for my point, president trump, this

is his game plan his tendencies are such, den you think other people are on to him now at this point? you know he puts the worst possible deal forward and works it back. at some point it may not work anywhere we are at that point >> you never know if he will walk it back or not. he has on self occasions he may not you look at he's always talked about fair trade you were talking earlier today about the auto industry. i heard about the bmws and soft. you look at having been in the auto industry, i'm not sure we had fair trade when i was running ge powered systems, we saw this administration help us on corporate tax, now we're getting a little better level playing field when i was having to compete when i was exporting what they were importing so if you look at the recent ceo survey, over half of them think the next 12 months will be better than the last 12.

over half think they will add more three quarters say we are where we are because of corporate tax rollback repatriatation and what we've seen in government regulation. all very, very positive. now the repatriation, i think we got a good hit on the market because of that. it was immediate i don't think we've seen a good corporate tax cut. we're only into it for a quarter, almost two-quarters right, steve i think we will continue to see that i think earnings are very positive through the first half of the year. i think the market reacts more violently on a rumor than positive performance >> always great to see you in person bob nardelli >> handsome man. >> among other things. >> i'm just saying that. it's true. >> let's say the market is over reacting, you have not a trade war stock like boeing. although i think it is a trade war stock. okay right, but - >> it takes three to understand

the game >> are you willing to buy this weakness or do you say, you know what, the mark no matter what i believe, the market is perceiving this to be a trade war stock and is selling it? >> one of the things that concernse, despite the negotiation stance being just that, i who irthis administration doesn't understand the bakes of trade finance or understanding where the trade deficit, how it is measured and what it looks like, i also think the global manufacturing chain is such now that we are in a different place than we were 20 years ago. ultimately, there is a number of products that are truly globally created. i think this brings in more. confidence is a leading indicator. some of the confidence we are hearing, whether it was the housing numbers, lumber price, regional fed surveys, people aren't happy >> i think when it comes down to it to clarify the game in my mine, i did not think today's action was officially trade war. if we get to the point of trade wars, i agree with you boeing is getting hit wrong, 95% of their

income comes from the united states those are the numbers. you actually have revenue coming from china they don't macrevenue off of it they're at their lowers margin >> because of that i agree, i'm sailing there are names out there, some of the names on this desk that absolutely have enough exposure to china, if there is a full blown trade war, they deserve to be sold off >> right now they're weak. what are you doing with them >> absolutely. i'm of the belief president trump is negotiation again and any weakness i see in nike, i'd be a buy coming up, if today's selloff has you worried, the perfect hideout spot it's not technology. plus, tesla could be the next big tradeoff for the trade wars. later starbucks getting slammed after the company dialled back its growth prospectles giddy up, he is buying the stock. what does he see others don't? he'll break it dn.ow you are watching "fast money"

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electric in the dow jones industrials average. major news a big change in the dow adding walgreens, which will replace gem electric of course, ge has been under immense pressure, down 26% and lower here in after hours trade by 1%. take a look at how walgreens is trading right now. last time i checked, slightly higher on this big move, going to the dow replacing ge. >> thank you so much. pete, something tipped you off earlier today. >> yeah, it was earlier in the day, 10:30, 11:00 in the morning, east coast time may 23rd, they bought 42,000 the july 14 put. stock was trading 14 point 50. those were sold for a double a little more than double. today 85,000 the july 12 put bought so really aggressive 12-and-a-half put.

they're 32 cents that's big it makes you wonder. i said this for a while, is it going to be a single dim it stock? i don't know it will sometimes the dow is a boost for some of these different, but it will be an interesting thing to watch over the next couple of days that put buying was absolutely massive today. >> what happens? this is not the same sort of impact in terms of indexing that s&p 500 removal, of course, it's not going to be. are you concerned about it here? >> i tell you what, i think the story for ge revolves around the div. they did notrule out cutting the div. frankly i think the market will reward them. people do not want to see the rates. continuing to divest is important. the div's most important. >> i remain long it has been trading poorly it's always in the name when you

see these moves. this could be the reason why it's trading poorly to pete's point, once it gets behind them, i think the stock can move higher >> this is an original dow component. 110 years the dow. >> mickey. >> listen, i would imagine management saw it come, you don't want to lose that, that's pretty cool thing to have on your mant him to take that away is significant i don't think it means anything in terms of the business, to tim's pointed, you will be reading at this in the paper tomorrow >> this is still a 120 company, when you think of how the indices are constructed. a market cap versus a price weighted s&p which is market cap weightedt to me makes lot more sense. it may have a hands him on stock, but it's a $120 billion company i think that will get

lost here. >> one of the famthors is the preference by the committee that creates the index to keep the ratio no more than 10-1. the lowest dow component to the smallest dow component we saw boeing's rise, that is throwing that raishio out of whack -- ratio out of whack. >> it's been out of whack for a long time. >> in terms of the stock, they said dividends remain the same they will address it for short term, at least at what point does it flush itself out i go back to cowan, seven, eight months ago, they put a price target on it >> that's in the crosshairs. >> i think the time frame it will take, get rid of the debt be able to sell off the assets, energy is starting to be a boone for them it takes time, it's the one thing, it's how patient do you want to be with this stock

the time frame so the debt ratio they got >> it's not like they haven't. >> it makes some progress. it's a massive >> that's a huge number, still go ahead >> you are right i think it's all about transparency, essentially, what kind of loan provisions they have to put up against ge tap? it's in the health care business you get more transparency, the assets are there, there is a value. i don't care about the earnings, i know they will be a buck for plus or minus. >> are you that confident in the dividend >> i think at this point the dividend needs to go in 2019 2018 it's intact 2019, why labor over this? it's already a big day in the history of the capital markets >> as a shareholder, i'd be more concerned about it being drastically cut, that eliminates ge from funds, right there are certain mandates, increase obs or main tag dividends or having dividends.

>> at&t is a fundamental ly company. why don't they say we're going in a different direction that to me would make it worth more than less ge might be saying, we realize what we have to deal wind chill you talk about transparency. >> that would be the ul mat form of transparency. >> we want to bring in bab nardelli bob, a historic day for general electric what is your reaction here >> well, it's just another bit of heart breaking news for those of us that spent 30-some years there, right hello. >> yes, we got you >> i thought i dropped, i'm sorry. it's a exit of heart breaking news, it's been rumored for a while so it's not surprising that it got drochltd i think it was the only one or one of only two original dow-listed companies after 125 years.

so it's a sad day i think for ge and all of us that worked there for such a long time i was listening to some of the comments i think john flannery has his work put out for him he's been there a year now i think time is not a friend when you are dealing with the challenges that he is facing i hope you are right the dividend is solid for this year. i mean, if you read some of the analyst reports, there was a point of view that might has to be impanged again. i think you know let's face it, it was weighting the dow down. when these people use that as a barometer for investment, i'm not surprised that they decided to, you know, transition ge out and i'm not aware of who they put in this yet. but you know maybe tim's right, they'll put boeing in, right it's already right so i don't know who they'll put

in there it's a sat sad day for all of us at ge. not surprising that they'll put somebody in there. >> that will buoy the dow index up a bit >> walgreens alliance will replace general electric in the index. do you think the worst is over for general elect rick do you think the dividend is safe >> well, i don't think the worst is over. i mean, john mentioned he's got $20 become of assets he has to monetize and, quite honestly, they've had a little slow start in doing that. they put the transportation deal together, but that isn't realized until 2019 at least from a cash flow standpoint. they've got some of the affordable power business on the line i think they're in negotiations on the lighting business so i just think they've got to you know move more quickly

i've said this several times already, having lived through this at chrysler, you know, relative to cost out, monetizing non-wereing assets you know getting rid of some of the $20 become assets he's identify if you look at inventory, what are you doing to get working capital in line with the revenue. if you go down, you know the income balance statement you will see a lot of opportunities that just need decisions >> sure. for investors part of it is perception and getting kicked out of the dow jones industrial average probably doesn't enhance the perception of general electric what do you think john flannery has to do to calm investors? we see stock down 2% in the afternoon session on this, when really ge as a company hasn't changed an hour ago, having gotten kicked out of the dow

jones average. what do investors need to hear from your point? >> i think we talked on air the perception of a tariff war er know, with china and my comment was i think we're trading on speculation here on rumors i think for the average investor, hearing that it was transitioned out of the dow, you know, they're going to react to that that something must be worse than is publicized i think he needs to come on, get out there and be very positive about what he is going to do and check, don't confuse hard work with success and it's not a matter of working harder, it's a mat of delivering performance. it's not in the bottom line, at least you are monetizing assets and getting more pre-cash flow to cover you know pension deficits to be able to hands him $4.2 billion of dividends and you

know certainly don't put yourself further in the ditch with $130 billion in debt, which is already on the books. i just think there is a lot of specifics that john an gene can do >> you mentioned jack welsh. what do you think he would say about this >> i think jack is probably heart broken about it. to find a company he spent 20 years at as the ceo. the curlture he developed the performance. i mentioned jim mcnierney, jim cote, a tremendous amount of individuals that have gone on to successfully run xaenls. so i think he's probably disappointed that post-jack, the company started to somewhat of a downward spiral. we talkled earlier about selling nbc and then, you know, nbc

having record performance with the olympics, with the election, with the super bowl. you know, i think it's important to see they've lost that momentum and that opportunity to drive earnings and to drive pre-cash flow. >> all right bob, thanks so much for phoning in we appreciate it >> okay. thank you. >> bob nardelli, he's spent a portion of time this evening with us here that's an interesting notion bob brought up there are many, i don't want to say offerings, sort of not tiger cubs, the underlings of jack welsh that have gone on to run other companies, very successfully, did well stock wise for investors and someone else was chosen instead, we're here >> his coaching tree like phil parcel's had a coaching tree. >> it's interesting, bill belichick, now we are talking football, his first job with the

cleveland browns, he failed miserably. i'm not going to apologize, we can talk about ge the next four shows, he probably walked into a more differently situation than he realized, quite frankly, i don't think he made it better, but things weren't as they appeared for a long time >> there were major commitments and investments made in power and energy at the top of the cycle. >> that not the first company to have done that the other thing i want to say we've had companies kicked out of the dow before and have gone on and done great things look at bank of america in 2013. alcoa, they rocked near all time highs if not at it we had companies put in a kind of language. this is a market cap type thing. i don't care whether a company is in the dow or not frankly, back to our trade discussion industrials are under performing there is a reason for it >> you brought us the fundamental also that's what concerns me still is i bring up the debt all the

time bob nardelli brought it up as well >> iemptimes, when it came to ge under the dremel, noah lived in my time. great guy. but reactive, not proactive. always sort of chasing you brought up the energy portion. that's the points i look at. you get energy it's $110 oichl it flips out >> right now, down 1.something percent after a decline, a 25% decline the year date. it is into the buy because of the debt >> i own the put so that tells you what i think >> as the buy. >> it is a buy >> if you google search ge coming out of the dow, it goes back quite some time some this has been sort of in those numbers right now. we made this point already, if you buy the one going out and

sell the one going in, you usually fair better than knee jerk reaction. >> if there was another shoe to drop, i would be worried about the dividends. >> that would have a bicker impact of being pulled out of i think that will be a relief. i think that's transparency, maybe not what we want but i think stocks that are owned just for the div whether they sit in those types of mutual funds or index funds, that's not a reason to own it. >> i agree, i think it will be a short-term push. push is strong then people come to their senses, fundament ally that's what had to be done. >> on the flipside of this so ge is out walgreens alliance is in if you had to pick a stock to add to the dow, would it be wak? or wack is the old ticker. >> what should it have been? i don't know the answer. that's question i was absolutely not prepared i capitals tell you.

it's pretty obvious why ge went out. >> all right so it's a $65 billion company sidelined over the past years it's essential people are starting to the existential questions. i don't think it's a great time to be fired up about this company. it's not cheap >> peer ahead of the committee >> it's not going to be the facebooks of the world i think there are names in there it's probably not netflix. they don't seem like they feel like dow stocks. but maybe google there is names in there that make you think, it sounds like a great name. >> walgreen's a buy? >> going on the premise i made, i would say it's a sell. >> sell. >> does it fit the dow >> i'm sure it fits the dow the dow is not something that, i

think it's antiquated to begin with professional traders watch the s&p. they watch the res em. we don't look at the dow as much and everyone at this desk probably gets that >> coming up, big changes, ge getting the boot, warm greens replacing it we'll have more. i'm melissa lee. first on business world wide, in the meantime, here's what else is coming up on "fast. request itself >> that's what pok pot stocks are doing today. tim see more says now could be the time to buy. hemobreak it down. plus, starbucks shares are scolding investors after hours pete says. >> giddy up. >> yeah. giddy up he'll tell you why he is buying this stock right now when "fast money" returns 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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we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. with pg&e in the sierras. and i'm an arborist crowne plaza. since the onset of the drought, more than 129 million trees have died in california. pg&e prunes and removes over a million trees every year to ensure that hazardous trees can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly

it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future. welcome back to "fast money" we have a news alert on starbucks. >> reporter: that's right, starbucks ceo kevin johnson presenting at a conference this afternoon. the company breaking quite a bit of news, first lowering their guidance for the first quarter of 2018 to 1% to 3%. he says his shareholders deserve better he is going to fix it. starbucks will be closing 150 under performing stores in the densely penetrated market in 2018 this is up from a historical

average of 50 stores in the past beyond that the company announced it will be slowing the licensed store growth and hiring an outside consultant and to help identify areas of opportunity for growth they plan to return approximately $25 billion in cash to shareholders via buyback in dividends through 2020. this is a $10 billion in guidance here's what johnson had to say about returning capital to shareholders after april earnings >> we will stay focused on driving the growth agenda we've outlined and at the same time returning more and more cash to shareholders in the form of dividends and buybacks we think that formula is a good long-term formula for shareholder value creation we've demonstrate thad over the last three years i anticipate we will continue to focus on it from that perspective. >> on top of all that they approved a dividend of 36 cents per share the stock down over

2% back over to you >> thank you very much so is starbalks growth company, guy? >> i don't think it is a growth company. >> does the valuation reflect that >> it trades at 20 times foreign earnings >> that to me is too expensive given the landscape we find ourselves in, given the earnings growth they, themselves are talking about the stock is too rich for me. >> look at the fast space, fast food, fast casual. these multimillions have gone up significantly in the last four or five years. i don't think it's a growth company here >> still higher than 1%? >> absolutely. i think they will grow in that nature and the big issue has been margins. but china, they will double the store count by 2020. i think that's growth to me. >> i think dunkin' donuts, you compare apples to apples they are up basically 7%

technically it looks like it is breaking out, it hasn't been down surrounding starbucks i think people are staying clear for a host of reasons other than just this. >> the starbucks news makes it even more. he will head over to the plasma for the fast pitch pete >> and today it will be starbucks, kevin johnson outstanding. mr. oleman as well i think it's what they need, they continue to go forward, already working on deals since being there. when you look at being in front of things right now, mr. johnson. has done an absolutely fantastic job of being in front of news stories that have happened over team guy mentioned the fact he trades there 20 times forward 18 times, 20 times, somewhere this that range. when you look at this pristine

balance sheet. i think that starts to make you question whether or not maybe this company is doing things right. the in fact that the balance sheet looks so good, take a look at what they're doing with their cash they had a dividend before the announcement right now these buybacks are kraechlz they've shruchg the share counter7%. that will be 18, 19 and 20, we're talking 20 plus billion dollars in buybacks. so fundamentally i like that side of the story. we talked about growth a little bit. last quarter, that earnings growth at 20-plus%, interesting. revenue as well, 14 performance. that's pretty strong i like what's going on i look at that company i think they're being very proactive, not reactive. they are closing the stores they should be closing. that's exactly the way they should be.

50 in the past they are doing the right thing i like this company a lot. >> time to 1r0e9 tim. >> i'm buying pete's pitch i own the stock. actually they're growing i like the se of the product stuff. it's a good thing, i like starbucks. >> the seller of starbucks, always a buyer of pete seller of trucks >> i love you, pete. >> hawk is too rich. valuation too rich i think it trades to last year's 52-and-a-half. >> pete i will ask you the question >> yeah. >> do you think starbucks is a growth stock >> yes >> you still do have faith even though it will have 1% comp store sales? >> yeah, that obviously wasn't an issue last quarter when they reported they just barely beat the analysts, which was very low >> that part has been a headache you know, what i think they're doing is a right thing they're closing the stores, tim is looking at china and other areas. i think the growth we are seeing

internationally will be huge for starbucks. >> david will be sitting do one starbucks ceo kevin johnson tomorrow at 9:00 a.m you can vote on our twitter poll are you buying while online head to charitybuzz.com to meet all of us here in time's square you will get a one of a kind glimpse of all the behind the scenes action. maybe a drink with guy >> what? >> if it makes you drink more. >> you bid on this thing come dinner we'll debt dan, mason, brian, kelly, go to dinner with you and your group it's a lot of fun, bid on it. >> we have a great time every single year. please check it out. chari charitybuzz.com. the bidding will close in 15

minutes. >> stay on it. it will be cpeti oomtionut there. >> so go ahead and bid much more "fast money" right after this.

welcome back to ""fast money." the big story of the hour, general electric getting booting from the dow jones industrials, walgreens, we have cramer alert, mad man himself jim cramer joining us with his take well, jim, what do you think >> obviously, the mighty have fallen you are talking about an icon, i

think a lot of people who don't follow it well will be shocked at this. they know from 27 down to 13 it's been, frankly, a really kind of a national corporate tragedy. i think the rest of the world will discover, say what happened to ge? the answer is it was very poorly managed. as much as john flannery is trying to turn it around it's more of a battleship. there are a lot of divisions that are leaky i think john will try to fix things and it can be fixable but i understand that the balance sheet not as great as i'd like it to be steve says the dividend has to be cut >> we're at a 52-week low. do you think the worst is over there might be problems to be dealt with, jim. the stock was put in the bottom well before that do you think that we are close to it?

>> i do, mellissa. i think when oil and gas was going back up. i thought there was a lot of option the power division is the black home, long-term care, they tell me they've got their arms around it. there are pension issues do they need to cut the dividend again? they have not said that's necessary. however, there was a convoluted conference call, it seemed like it was on the table. but to go against steve here is a big thing. j.p. morgan's guy. i'm sure he recognizes this guy have very, very powerful until he goes into the hole, i am willing to still e sell the stock. she that good. he was long to ge, on it to, meaning there was a lot that you needed to be on to in most people, including me, i believe. that's why i was wrong >> so walgreens is going to the

dow to replace general electric, was that a surprise choice >> no i think they have been leaning towards health care. they like these kind of, look, remember they went with unh, there is a lot of health care in the dow. i think that that's because it's a reflection of what happened in the gdp growth as we know from warren buffet and besos. i thought amazon would have been a more likely one. the health care takes up a huge amount on the gdp. i like a lot of things walgreens is doing >> if mr. cramer were ahead of the committee, would it have been a fang stock? >> yes, definitely it did not have it in amazon in there i think it's a very big mistake. that was natural >> a lost opportunity on their part >> completely. >> 4,000

>> you the man, jim. >> 4,000 right here right now. 4gs right zbleer a great cause >> part of jim's restaurants >> absolutely. thank you, always great speaking with you jim will have much more on ge and one under the radar energy company, he is calling a top play right now that's at the top of the hour on ""mad money"." all right. so what do we think here ge >> i'm with jim i mean he sounded fairly bearish amazon i'm not so sure of in terms of the dow stock or not. but he talked about poorly managed and some of the% takes along the way, that's hurt him. >> what do we have to do and see to become more confident in buying ge around here? >> we feed transparency in the sheet. john flannery is doing what he has to do. this is a guy a part of the last

regime i think at some point they need a clean slate, investors need transparency now >> more asset sales. you need to get a tail winds of asset sales behind you he is making these levels, he once said a year ago, whatever the time line was. he has to start gaining consideration, momentum. the last days will be tough for ge earn that doesn't watch the stock market on a daily basis knows that ge was a part of the dow. i think it will be tough i am staying long. i do think you see it pop. >> it has been in the dow continuously >> we've had that conversation that's true. but the main street the dow is a stock. >> exactly >> it's -- >> by the way, we've got about seven minutes left to bid for your chance to win an opportunity to meet all of us here at the nasdaq so go to charitybuzz right now please, it's for a great cause

much more "fast" in just a minute.

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that sort of quarter for us. >> so mark hurd trying to send a confident tone on the quarter. we should mention they change how they report here a bit they used to have a separate cloud revenue number now cloud services they combine that with software support. one analyst was on the call and asked, are you trying to hide some potential cloud business weakness the ceo saying there is no hiding we're at where we said we would be strong cloud billings. strong margins this is the better what i to understand the business. she did, though, get disappointing news on eps, she got it from 67 to 69 cents the street was at 72 >> guys, what's the trade? >> can you say oracle is interesting on valuation but the guide wasn't good. in my penalties, you see the is that correct that oracle continues to lose the sales hurd

nobody had a stop watch on him my point is this, sales force wins, oracle seems to be losing. at a certain point it becomes compelling on valuation. >> did you know that charity buzz >> two minutes left to bid last chance out there. >> by the way, this is a massive discount this thing has gone for ten times this or more right now. >> it's at a,000 dollars >> we're going in at after after dinner drink >> jim is out now. >> you can go to jim's place >> to shore, why not if it means a higher bid, we won't go to jim's place. i'm very flexible. all i want to do is raise money for a great cause here you have a minute-and-a-half left for this. >> it is a great cause, dinner with all of us we did it last year, it was a lot of fun it went for 11 times what it's

being bid right now. >> of course you have to ask, is that indeed valued in the last couple months? >> i feel this is a disappointing show >> we will do exguy, dinner night out. >> it's something i want to do >> a different kind of show here time for the final trade one more minute to bid final trade. >> talking about this cloud stuff, microsoft, my fate, giddy up this is going higher >> less than a minute to bid >> check out the twitter poll. i think you will find, he always does, he wins. this is a company that's winning. i don't care if it's a growth or a staple company it's a well-run company a dividend, i'm in it. i'm staying long. >> 30 seconds the big guy. >> norah, unfairly punished in the market place yesterday based on a builder sentiment data point based on a wrong lumber sales. >> don't feel devaed

who is outbidding? >> chaertybuzz, how much time, mel? >> count it down >> a stressed guy right now. >> i'm 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. do not say i didn't warn you i've been telling you for months that president trump wants t