picture you buy some gld >> gold. >> serious logic apple reporting a lot of things going on >> nice job. >> thank you very much tune in to watch worldwide exchange, starts in about thre "mad money" with jim cramer begins 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 the cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbcor tweet me @jimcramer. somebody, somebody panicked today. >> no, no, no!

>> some simply couldn't take it anymore. too much pain. >> the house of pain >> and there was too much risk and too much uncertainty so this manager dumped the tech. >> sell, sell, sell, sell, sell, sell. >> yeah, it was tech holdings that did it, and they executed a ton of collateral damage that's what you have to understand on days like today. that's when you get a vicious day where the dow lost 144 points s&p dropped .58%, and the nasdaq in particular got crushed, a victim of indiscriminate selling that caused it to shed 1.39%, although i should tell you that was a nice and important rally from the low, and that could figure in tomorrow's session now, as regular viewers already know, i'm a big believer in the idea that no one ever made a dime panicking >> no, no, agh >> there is always a better time to sale than right into the maelstrom of fear.

but for most people, panic is what comes naturally that's why i'm always warning you about it when you see a big sell or dumping, we figure that that seller must know more than we do, so we join in that's human nature sometimes i am trying to just get you to rein in your human nature of course, history tells us that buying interest percolates over time but panics, on the other hand, are like a life in the state of nature, nasty, brutish, short. in the old day weakness in a couple of stocks would bring out selling and it would spill over to maybe a sector, maybe two sectors. these days with so many groups connect you'd get wildfire sell-offs that can't be put out. you just need to let them run their course so what started the fire what triggered today's panic let's start with facebook, which set off the stock market equivalent of an atomic bomb last week. i went to the oldest fishing derby in the united states it's off of grand isle in louisiana where we caught

hundreds of fish, next to 99 baker. that's a gigantic hulking mass of a decommissioned oil rig for the gulf yes, we brought home the key white trout, category first place. there is no self-service on board the sherrice, our ship but i could swear, i could swear, i could swear i felt a big tremor it was the equivalent to us of another deepwater horizon. it was when facebook reported. i won't mince words here facebook put up one of the worst quarter estimates this year and complicated it with a nonchalant conference call, almost like they were proud of how they had done but the truth is facebook saw a dramatic slowdown in the growth rate coupled with a dramatic increase in the rate of spending as the company needs to comply with rules they thought they were already complying with, or maybe they thought they were immune from, who knows judging from the pitiful guidance, things are only going to get worse it felt like facebook transformed itself from a social media maserati to a greyhound

bus. meanwhile, they paddled on during the call. they sounded borderline sane, frankly. memo to mark zuckerberg, you can be as arrogant as you want when you're winning, but when you're losing, could you at least pretend to have some humility? tried to find one good thing to talk about tonight, going over it, i got to find something. but no it was ghastly at one point, i actually questioned whether the whole darn thing is a house of cards now in all honesty, i believe that facebook was being overly negative, underpromising so they could eventually overdeliver down the road. the narrative was so darn negative, i have to wonder what the heck were they thinking. rather than management's con seated self-congratulatory riff, i think they should have preannounced that things had slowed, maybe a month ago. perhaps right during the middle of the quarter when zuckerberg was selling billion worth of stock. oh, yeah, there is that. the lack of preannouncement makes it seem like those guys have lost touch with reality

maybe they're just too rich. i don't know now the thermonuclear explosion was so potent and so shocking that it sent facebook stock down 19%. they're this big company on friday we saw a wave of radiation emanating from that blast. today looked like we might get some stabilization, but that turned out to be overly optimistic it felt like some key large cap tech names ventured outside their bunkers and probably got radiation poisoning, which, yeah, triggered the awful panic which crushed the nasdaq today companies like service now, which i like so much, they just reported a fine quarter. it hit alphabet, adobe even microsoft got slammed despite reporting what are arguably one of the best results in tech this year. the lengthy tfs sent the fellow traveling stocks cascading to the red are. that kind of undisciplined selling is how you know you're looking at a panic now, for once the guilt by association thesis made some sense. facebook is just that important.

it is. whether fewer people are going online or facebook ads are just less effective, what they can't do, whatever they want with your -- when they can't do whatever they want with your data, people figured that every stock in the social media periphery deserved to be down too. think about it like this well, if it's bad for facebook, it's got to be bad for everybody. facebook is so big, okay i'm not buying it. social media is simply not a huge driver of the cloud which is what these companies are a member the cloud kings. amazon and microsoft all posted extraordinarily strong results in the web service business. all right. twitter delivered much slower growth it was kind of shocking, real bad again today. so you can understand why so many people pan fwhingd they saw the cloud names rolling over again. who wants to own expensive tech stocks when they can be safer, more value-oriented tech stocks, broadcom comes to mind with a big buyback. intel, who i didn't like that quarter. ibm who had good quarter when money comes out of the

stocks, it tends to go back into other stocks in a different sector for instance, scattered buying in the drugs, the bags, the industrials. that theme buying is indicative of a pure panic. kind of like every man for himself buying the banks go up because the ten-year treasury yield is climbing the drug stocks, they've come down to levels where they're too tantalizing/value oriented to ignore the industrials, that's about cooling intentions with europe as well as the 4% gdp growth we got on friday. the retailers, look, i can foment something, but there is really nothing to say here expect if you believe the trade war with china is staying hot, especially with the collapse of the semiconductor deal, more on that later, then you want the stay domestic. is there anything more domestic than retailers so what next i'm going to give you an outlier forecast you didn't hear this today from anyone i think the kind of panic we got today is often a cleansing action, like a big rainstorm that washes away the detritus.

if you pick the stocks down only down as collateral damage, the ones that don't have anything to do with social media. >> buy, buy, buy >> why because i think the same trends that were so important before facebook -- let me give you some cybersecurity, video games, internet, cloud on boarding. they're still important. but the related stocks have been reset in price that's what many would-be buyers have been waiting. now that we finally got to pullback, don't move the goalpost don't say i'll wait for them to go lower because there is more panic ahead. there probably isn't the bottom line is when we get this kind of action, you to say to yourself, hey, i was waiting for a break in prices. now it's time to put money to work, scooping up high quality stocks at much lower levels. remember, after the panic, it doesn't stay it gets calm and you have to take advantage of the prices before everyone

else realizes that the panics are temporary. and the opportunity to buy is now over michael in nevada. michael? >> caller: long time follower, a second time caller chairman club member long time eagles fan from cherry hill new jersey, fly, eagles, fly. >> go birds! >> caller: jim, my question concerns cvs >> cvs the health care or cbs the les moonves? >> cvs >> they think group, i was looking at walgreen's. that's coming all the way back cvs has a good acquisition they're doing. i think you got a real buy going here i think that the worst is over remember, amazon doesn't destroy everybody. jim in wisconsin, jim? >> caller: jim, from wisconsin >> all right, partner. >> caller: i'm interested in making an investment in hclp because the dividend is pushing 8% what do you think of it, and do

you think the dividend is safe what do you think of fracking in the peermian because of the lack of pipeline there's, and hglp just opened a sand mine there. >> i got to tell you at 19%, i'm going to say that's a red flag even though it's been acting well, i do think that, in the end, this stock has moved too much, and that dividend is not safe bill in illinois, bill >> caller: hi, jim thanks for taking my call. >> of course >> caller: long time action alert member. >> thank you >> caller: this company reported two weeks ago, top and bottom line beat, gross margins were up 39%, and they raised for the year the company is about 88% in the u.s. and only 12 in canada so really not impacted by china tariffs. united rentals is in the house of pain, down 10 points since reporting 15% year to date, and no pin action off a cap. >> no, none.

and first of all, thank you for subscribing to actionalertsplus.com and being a club member because we were going to buy this stock. i sat down with the quarter. i sat down with the conference calls. i sat down with analysts who know it really well and portfolio managers none of us can figure out what's wrong. and you know what? that means there could be something and we haven't figured it out and i'm uncomfortable pushing that stock here. someone panicked someone panicked today, and you have to remember, after the panic, it doesn't storm, it gets calm and therefore it could be the time to put your money to work on "mad money" tonight, yes in the midst of a confusing earnings season. but i am revealing the stars telephone show they may be the best place to go then, the sag has ended. i'm chipping away at nxpi after the qualcomm merger collapse and amazon's latest quarter likely marked the bottom, or at least that's what the ceo says

i have got the exclusive, so stick with cramer. >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #matt tweets 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. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory.

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stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ♪ midway through earnings season, and we've already seen some very clear winners. among the losers but now that we've been burned by facebook and twitter, i want to focus on the standouts, the companies that have managed to deliver the biggest beats versus what wall street was expecting, because their stocks have worth buying into this market wide weaks than we're having. let's start with the obvious didn't get weak today. amd. when i was fishing in the gulf of mexico, i caught a seven-foot -- bigger than my wingspan, black-tipped shark we immediately named it el

monstro. this quarter amd reported it was an el monstro quarter. for the first time they jumped ahe aahead of intel. this may be the beginning of the leap over intel. and the growth margin is so crucial in the semiconductor industry are starting to go higher a remarkable turnaround here she took over as ceo in 2014 get this, when amd stock was at 3. first she fixed the tattered balance sheet, then she began bringing in talent i remember for the first few years i was a skeptic, but you can't say skeptical after a string of fabulous quarters and a stock that touched 20 today. 3, 20. as she told news the call, and i quote, we ended the first half of 2018 strong, delivering our fourth consecutive quarter of

double-digit year-over-year revenue growth driven by increased demand for our high performance products amd grew by 53% last year. its gross margins were up 300 basis points which translated into the company's highest quarterly net income in seven years. what can you say to those numbers other than bravo next up there is microsoft, which reported fantastic top and bottom line. gaming, personal computers, standard operating systems and linkedin, tremendous but the star of this show was azure, microsoft's cloud business while it's tough playing catch-up to amazon, this company has totally reinvented itself. not too long ago everyone assumed microsoft's best days were behind it nope, not anymore. now honeywell, united technologies honeywell, which is breaking itself up revealed that amazon had become an incredibly important client for warehouse automation who knew of course it's aerospace and climate controls were much

better than expected same goes for united technologies, which also could split itself up when a new deal that's to be close happens these companies are claiming money with rising margins. ingersoll saw rand blew through organic growth remarkable numbers also for climate controls what a terrific business and remember, these numbers were all before the big worldwide heatwave who else gave us a huge win? i got to explode expedia it's allowed the company to become the closest publicly equivalent to airbnb hats off to closing bell contributor stretch any link who urged people to get long expedia ahead of the quarter not last but not least, i would be remiss to mention amazon and alphabet we've been seeing wall to wall coverage of the death of fang. can we stop that

and facebook was really terrible but these two companies are doing incredibly well. amazon is making so much money, it can't even hide it by spending aggressively to bolster growth that had been the amazon way. it's like they actively try not to show a profit, but the earnings are so huge, they can't help it anymore. alphab alphabet's got religion again with better than expected advertising numbers and the prospect that its autonomous driving section could generate profits this year. and finally, if facebook is having trouble, you expect more ad dollars to flow to alphabet look, there are lots of other winners that i'm really slighting them here. but the ones i mention have had been the stars of the show so far. they're the best places to go as the market tumbles in confusion over who is guilty and who is innocent in this rapidly eroding earnings season. we're going to go to sameet in illinois >> caller: hi, jim thanks for taking my phone call. >> of course >> caller: i have a couple of

quick questions about mercado libre. for a while around 290 and rallied to 385 now down to 340. i can't seem to time my entry into this. and a couple of questions i have, it's being touted as the amazon of latin america. one, do you see potential in it? and two, with the strengthening u.s. dollar, how do you think it will affect the profits? >> okay, look, it's a great question i remember when this company came public and it was a very, very long time ago i think it is doing quite well but sometimes you got to know what you don't know. and i think that mercado libre has become hard for me to predict. look, i'm perfectly willing to go out there and predict even alibaba and baidu, but this buenos aires company is too hard for me steve in kansas, steve >>. >> caller: hi, jim thanks for taking my call. my son's 401(k) are invested in

cern they report earnings on august 2. historically they drop on earnings what are your thoughts on cerner. >> they drop and then they seem to go higher so to me, the case if you want the buy more, just get ready to buy itwhen they drop on earnings, otherwise ride it through. it is a very successful company that does reduce the costs of health care to the american people, including the actual federal company. all right. this earnings season has quickly turned into a confusing one. notice i didn't say bad. confusing. sure, there are more winners out there. but these interest stars that i think are placed to go they're all remarkable, and this one, dr. lisa su, congratulations. i'm digging into nxpi's decline. you don't want to miss this. them lam research spiked after earnings it is down 2% today.

i'm going to bring into focus what lam is saying by talking to the ceo. and for the past year, insurance was not where yo wanted to be, but jobs up nearly 10% in the last month, and maybe it is the best of the best it is time to reexamine the space? i'm going to sit down to a great interview with the ceo so stick with cramer

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simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com what the heck do you do with nxp semiconductors if you weren't lucky enough to sell the darn thing i mean this thing has really gotten crushed we were able to sell it for our charitable trust maybe it's better to be lucky than good. qualcomm spent nearly two years trying to buy nxp. last week they finally gave up after the latest missed deadline for the deal ace approval. thank china, causing the stock to just get slammed.

less than two months ago nxp was trading at 120 now it's at 95 ouch but you know what? at these levels i think the semiconductor company is pretty attractive i'm going to go against what everybody is saying here, and i'm going to say that it's attractive even without a takeover why is that? let me explain years ago nxp was one of the sexiest growth stocks in the whole semiconductor industry 2018 they acquired free scale that transformed into it the fourth largest chip maker on earth with a ton of exposure to the automobile market and the iop, the internet of things. back then i figured nxp would make a terrific stand-alone company. that's why we ordered it for my charitable trust which you can follow at actionalerts.com by joining the club but then qualcomm stepped in with a bountiful takeover. then last year the activists at elliott management, really smart firm, stepped in successfully they advocated to boost nxp's price tag. they backed qualcomm into a corner, ultimately pushing it up

to $127.50 a share everything was looking good until the president decided to get medieval on china with his trade dispute. so far i think it's safe to say that qualcomm and nxp have become the biggest casualties of the trade war, at least here in america. what happened? in april the chinese minister of commerce every regular on earth amoved the deal china wouldn't sign on they kept saying there were antitrust issues david faber and i look add it. we couldn't find one the chinese did drag their feet long enough to cut typical transaction. finally last wednesday, the two companies blew past yet another internal deadline and qualcomm gave up, sending nxp's stock tumbling back to the single digits the very next day xp reported quarterly earnings and the numbers not so hot the company delivered a top line miss the problem, some of it came down to the ban on selling components to zte.

and that's that big chinese cell phone maker which fortunately has been now lifted, right there is no more ban anymore part of it also had to do with supply chain components in the auto division. once again the stock got slammed. but then something funny happened pretty much overnight five different analysts decided to upgrade nxp which stopped the stock's decline in its tracks. then the ceo sat down with my partner on squawk. fabulous interview i almost wish i wasn't on vacation because the interview was so bullish i would have ripped up my show friday so let me lay out the bull thesis here as presented by klemmer, who i know and like and respect on the conference call, because i think he makes some compelling arguments first, klemmer tells us not to worry, and i quote, while the organization has experienced a level of deal fatigue, the core basics of the business have actually strengthened, and our position in auto and internet of things is now stronger than we announced the transaction 21 months ago, end quote. how strong he believes the company can achieve a three-year compound growth rate of 5 to 7% which is

50% faster than the bull market is growing he also adds that the company sales in september tends do to go up. that's when we'll get to the nitty-gritty of the forecast then what he is doing to get the stock moving right now they suspend their capital return program well, now that's coming back with a vengeance, fuelled in part by qualcomm's $2 billion termination fee. nxp just announced a $5 billion buyback which is huge when you consider it's only a $32 billion company. they're going to repurchase 15% of the share at these levels, and they've got more than enough cash to make it happen according to jpmorgan, if nxp does this quickly, repurchasing $5 billion worth of stock in the next six months, the company could earn more than eight bucks a share next year. eight bucks. they can deliver on that, then this stock will be trading at less than 12 times next year's earns, making it the cheapest large cap semiconductor that i

follow i think that's a pretty compelling argument. okay, we could argue micron, but micron is a little more commodity. this is a little higher end. i got a couple more points here. let's not forget while nxp is a $95 stock, qualcomm was willing to pay $127.50 per share for the whole enchilada. the folks who run qualcomm, real smart people thought nxp was worth $32 more than where it's currently trading. there is value here. why were they willing to pay so much they wanted to diversify away from cell phones nxp's bread and butter, the connected car and the internet of things, that's where you want to be. let's talk about the autos for a second nxp is the number one chip maker there and a lot of people are skeptical about owning anything connected to autos we keep putting more and more semiconductor content in our dmoorks matter how many car wessel we do that for info entertainment and security and autonomous driving and electric vehicles well, who do you think makes the chips that handle collision avoidance and radar and all the

technologies that will ultimately help us get to self-driving cars? nxp. just listen to what klemmer had to say about this business on "squawk on the street" last friday >> we actually see, you know, $75 billion connected devices by the year 2025. three times what it is today. >> right. >> so being able -- those factors play right into our sweet spot so we're well positioned to take advantage of that. being the leading semiconductor supplier into automotive, now moving into autonomous driving we also now have developed technology where we can be a significant player in the electric vehicle market, especially as china has set aggressive targets on electric vehicle deployment >> i like everything i just heard. by the way, it's not just autos. nxp helped pioneer field communication. it still has a ton of potential. it's what lets you use your smartphone as a credit card. think apple pay, or exchange contacts with your friends just by sticking your phones next to each other

now when nxp reported, they mentioned they had lost some business in mobile well, that got people down on the call, klemmer told us that the company saw, quote, some our strategic mobile customers disengaging our new expanded opportunities in plain english, i think this means that nxp lost some apple business because apple didn't want to deal with a qualcomm subsidiary they've been engaged with a major ongoing spat with qualcomm we can't know for sure because apple suppliers aren't allowed to talk about their business directly but hey, now that the qualcomm deal has been called off, this won't be a problem anymore obviously, apple can't just slot nxp's chips into the current generation of iphones, but long-term, i bet that they can win this business back as nxp makes the best near field communication chips from what my sources say. in short, this deal falling apart could actually be a positive, a major positive for a big part of their business so i like the fundamental picture, even after a couple of soft quarters in a row, because the tie-up with qualcomm was

weighing on nxp sales. what about the technicals? we decide stodd check in with bob lange, the founder of explosive options.net, a brilliant technician the three men started a team buying the street.com's trifecta newsletter and the author of "know your options." as far as lange's concerned, it's a bearish picture however, he says that if the stock can hold above the low 90s, there is a chance it could quickly bounce up to 105 here is the bottom line. i think last week the big washout in nxp semis has given you a big buying opportunity now we know the qualcomm deal is not happening, we can focus on nxp's prospects again, and i like what i see. add to your position if you like what the company has to say at their analyst day in september it's a washed out derisked tech story in a market filled with very risky dynamics. let's go to bill in florida. bill >> caller: hey, jim. how are you doing? >> i am doing well, bill how with you

>> caller: not too bad recently, jim, are while back, i bought some stock called oled, o-l-e-d. and the stock actually hit a high of 200, and then it started really following however, recently it started to climb back and one of my brokers said to get back in because it's going to be -- it's going to be really dynamic and super. what's your opinion oled, jim? >> it's a supplier to cell phones, and i have been staying away from the pure suppliers to cell phones because what i do fear is that cell phones are going to continue to be in the doldrums i like more internet of things all these companies have a little bit of internet in their things but i think if cell phones are going to stay as flat as i believe, even with the new style oled panels, i don't want to be there. nxpi's decline is an opportunity of all sorts it's an opportunity to focus on

the company's prospects after the fall of the qualcomm deal. it's an opportunity to do some buying. >> buy, buy, buy >> coming up, is lam research ready to go on buying like a lion i'm faulking to the ceo. and then looking for a fat profit i'm finding out in chubb, one of our best insurers, can weather any storm when i sit down with the company's top brass. and rapid-fire in tonight's edition of the "lightning round. so stick with cramer

♪ has lam research, the big semiconductor equipment maker finally gotten its groove back last year it was on fire, climbing 5%. then the industry's growth slowed and the darn thing stalled out. now just 2% for 2018 last thursday something really kind of funny happened lam research reported a better than expected quarter with some disappointing guidance the stock comes back with a vengeance on friday, ultimately gang 7% as investors like what they heard on the conference call while lam delivered a solid earnings beat with higher than expected sales, up 8% sequentially, the forecast for next quarter was light what turned things around?

on the conference call, ceo martin ancis called the bottom in semiconductor equipment, predicting that this current quarter would mark the end of temporary weakness that would soon be a thing of the past. that's why the stock surged. could this be the beginning of a larger run or could it be taken down like the rest of texas? let's take a look with the ceo of lam research, get a better sense of the quarter welcome back to "mad money." >> jim, it's a pleasure to be with you again thank you. >> okay, martin, i've gone through the conference call and all the analyst notes. i have to admit, i always have to ask a ceo, when things are declining and they call a bottom, give me a couple of pieces of evidence why you're willing to stick your neck out because no one has asked you to do it, martin you. didn't need to do it >> well, you know, i think one of the responsibilities you have as a ceo is to tell it as you see it and we spent a lot of time dialoguing with our customers, understanding their plans for

investments. as i have opined many times now, today's industry is different in many respects. one of them is the cycle of adjustment and the relative stability and sustainability i felt like it was an important headline to communicate in the mix of several in the quarter. we just completed our strongest fiscal year in history, $11 billion of revenues, 40% growth. our most recent completed quarter the strong nest the history of the company in revenues and profits a lot to be proud of and the future is something we're really optimistic about. >> well, i think you're doing something that your predecessor rick hill did periodically, which is he used the downturn to buy back a monster amount of stock. and then when things turned, he said, look, i told you it was going to turn. you had a chance to get in this seems very cut from the cloth of that playbook >> well, you know, i've been pretty consistent now for the last six or seven years around the relative priorities for company. first and foremost, invest in

our growth, positioning of product services portfolio to but unique in its offering to the success of our customers i feel like the company has performed well in that regard. and swlen cash that is excess to that need, to return to it our shareholders, via repurchase and dividend and we've been super disciplined about that and the guidance we've just given is incorporating about a 10 million share counts reduction which is part of what you've just spoken to. >> now, we do know there has still been weakness in some of the -- in some pricing in drams. are you saying that the word "sustainability" means that these companies, your customers see it, they're unwilling to go down the path of just total destruction of margins they're going to be considered about their buying, and one of the reasons this september could be the bottom? >> i think we've been in that world for a long time, if i'm honest with you, jim we live in a world where profitable market share the

objective, not just market share for our industry and for the industry of our customers as well today we live in a world where memory customers are all reporting in the range of 40 to 50% operating income memory revenue growth has been at an all-time high, and that's a by-product, you know, of the fundamental value proposition that exists today in the realm of the evergreen verticals, as we talked about last time. the infrastructure needs of the world, the health care needs of the world, the agriculture needs of the world redefining connectivity and cloud memory and storage and computation. and that's a fundamental message that i think is relevant for understanding value of the entire semiconductor ecosystem >> in the time that you've been in this industry, you've been in it a long time, tell me how long it takes to build a greenfield dram plant now versus 20 years ago. >> well, it's -- everything is faster the speed of which people build clean rooms today and install

equipments can run a year to two. but i think what's important is just because people have a clean room doesn't mean they fill it with equipment just because they can. the investments, the discipline from our customers today mean they invest in capacity when they have demand for chips and i think that's a commentary on health and sustainability in our industry i mean, let's not forget that the semiconductor revenues in the last four or five years have increased by about $120 billion, and that's .2% of global gdp and that reflects the increased value proposition of the industry in the broader data economy. and it's a terrific commentary on the opportunity for silicon, for equipment companies and specifically for lam research. >> all right, look, you did say that there was going to be a couple quarters of weakness, and now i understand that you're saying there can be a trough so you're money good on the downturn i'm betting you're money good on the upturn martin an stice, ceo of lam

research i'm not going against this guy stick with cramer.

♪

it's going to take a moment to thank all the amazing new friends we met down in grand isle, louisiana at the tarpon rodeo. yes, oldest fishing derby in the country where our boat the charisse brought it home ashton is the one who really got the thing. let's make that clear. okay it is time it is time for the "lightning round" on cramer's "mad money. that's where i pick calls -- >> buy, buy, buy, sell, sell, sell. >> buy, buy, buy, buy, buy, buy. [ buzzer ] >> and then the "lightning round" is over are you ready, skee-daddy? it's time for "lightning round" on cramer's "mad money." will you look at that? yeah let's start with cecil in nevada cecil? >> caller: yes, jim. hi, how are you? >> i am good okay good what's up? >> caller: yeah, i'm looking at six flags. >> yeah, i like six flags.

they had a better quarter than people thought i'm going the endorse them as a buy. let's go to betty in michigan, betty? >> caller: hi, jim boo-yah. thanks for taking my call. >> boo-yah. >> caller: western digital i'm in at 80 what are your thoughts >> well, it doesn't matter where your stock came from as to where it's going to, but now it's all the way down to 69 it yields almost 3%. i think it could fall four or five more points and then i want to buy it. let's go to mike in maryland mike >> caller: hey, jim. good to talk to you. would you buy allergan right here >> i don't know. it just was up almost five points today it was at 170 not long ago it's having a real run they're starting to straighten the story out, but it has had a big run. i think i would wait until under 1820 o to get that thing done. let's go to paul in illinois paul >> caller: hi, jim because of your wisdom, i'm able to help send my boy who is my best friend to georgetown university. >> yes

with will who happened to be on with us for the tarpon rodeo go ahead >> caller: he wants to be the next jim cramer. >> really? >> caller: my question is -- oh, yes. my portfolio is overweighted with procter & gamble. i need to get back to 84 to be even what should i do >> we don't care where it's come from we care where it's going to. we got that real good yield. but what i think you ought to do is pick among the rubble, use the weakness to buy some of the tech stocks that i've been talking about. that's the way to go to diversify away from just all proctor. how about david in california. david? >> caller: boo-yah too you from carpent carpentryia, california. >> all right what's going on? >> caller: i want to find out pfg. >> i think it should be following the way of cramerica it's got a good yield, coming back i think it's a good buy. and, that ladies and gentlemen, is the conclusion of the special

tarpon rodeo edition of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪

♪ is it time to circle back to the insurance space in this group spent most of 2018, say, in the doghouse because pnc, or property and casualty insurance companies are levered to interest rates

insurers don't just take your premiums and lock that money up in a vault they invest it which means when rates are rising, they can generate a better risk return that means the insurance stocks did go out of style when the yield on the benchmark ten-year treasury started falling earlier this year. but now that yield on the ten-year is climbing again, the group has gotten a whole new lease on life. plus pricing had been very competitive, now seems to have gotten less cutthroat. take chubb unlimited created by the merger of the old chubb with ace limited in 2018. the stock was down 13% since then it's rallied more than 10% just in july alone. oh, and last week chubb reported a darn good quarter. a nice earnings beat driven by, and i quote, excellent underwriting and investment results. so can chubb keep climbing here? even with it the lacey movethe stock remains down roughly 4% for the entire year. >> which mean it has catching up to do. let's check in with evan greenberg. mr. greenberg, welcome back to "mad money." good to see you, sir.

>> jim, good see you. >> i have to tell you, i know that rates are important, but for your company, but i see every single line with the exception of small anythithingsl right to the bottom line >> well, you know, some of it falls to the bottom line but remember, lost costs rise. >> right. >> every year. you have a certain amount of inflation whether it's on property related or it's casualty related so just to stand in place, you have to get rate >> but you are generating a lot of cash. and i know these analysts are all trying to figure out whether you're going to do another big deal it sounds like you're going to use the cash to expand around the world. that sounds like pretty good business. >> we have operations in 54 countries around the world if you look at this quarter, which i think is evidence of our future, we're firing on all cylinders. asia, latin america, the u.s., we've had growth in our commercial business, in our

consumer oriented businesses, and i just see that momentum building in the company. >> okay. so for our audience, rates overall were up 3% versus 1.9% last quarter that's actually a monumental amount of money for you, isn't it >> i don't think it's monument when you imagine that loss costs are rising between 4% and 6% so, you know, you're still not keeping pace with lost costs, but it's better than it has been. >> okay. >> and by the way, for the last number of years, rates have been going down. >> right i'm looking at inflection point here. >> that's the point. and so rates have been going down on one hand and on the other hand, you have inflation. so you do need price increase to maintain a healthy -- to maintain a healthy risk-adjusted return >> i think a lot of our viewers think look, i haven't had anything go up in value. where is the inflation that you see? >> it's on the liability side.

imagine mergers and acquisitions, liability directors and officer s liability. almost every single merger or acquisition has a shareholder suit and by the way, most of them around 80% of them no money goes to the shareholders. it goes to the trial bar now so you have inflation there. most liability you see the loss costs rising and then by the way, in property, whether it's the cost of repairs, the cost of parts, the cost of labor, of materials, costs are rising >> okay. now one thing that you're doing to combat costs, you've been the visionary in the industry. digitally. you're finally getting digitized. it seemed like the industry itself was just ledgers. what does it mean? you emphasize what it means to spend that money on digital. >> you know we spend over a billion dollars a year on technology and let's imagine this i see it differently it's we're in a world that's

going from analog to digital everything is. if you remain analog, you're history. so, of course, you're going to digit advertis digiti digitize people want any time, anywhere service. about repairing or replacing it, it's going to move towards predict and prevent which is about using data and using internet of things, iot. and then imagine our ability to service you in claims and in underwriting right now if you're a small business, to underwrite you, we ask you about a 30 questions for chubb, over the next 18 months, that will come down to about seven questions. because we can just scrape the answers from data that is publicly available don't need to bother you with that eventually going have to ask you two questions. what's your name, what's your address, and we'll be able to figure out the rest. >> in full disclosure, i've been

a chubb customer for close to 30 years. and i only get to ask those questions now. it's not favoritism. you just have my complete record but i want to congratulate you thing is the inflection and chubb is the best in the industry thank you so much. >> jim, thank you so much. >> absolutely, my friend. >> that's evan greenberg, chairman and ceo of chubb cb the rates are going higher the opportunity to invest are getting better, and digitization is going to save them a fortune. "mad money" is back after this introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals. you'll know what you're invested in and how it's performing. so you can spend more time floating about on your inflatable swan. [ding]

is this at&t innovations? yeah, wow..this must be for one of our new unlimited wireless plans. it comes with a ton of entertainment options. great, can you sign for this? yeah. hey, uh.. what's in that one? that's a shark. new and only with at&t, you can get unlimited data, 30+ channels of live tv, and your choice of things like hbo or amazon music. more for your thing. that's our thing. visit att dot com. i thwell wait. what did you meetthink about her? it's definitely a new idea, but there's no business track record. well, have you seen her work?

no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital. all right. i talked so much tech tonight, we didn't talk caterpillar the main lesson from caterpillar is once again, if you did not wait for the conference call, you bought the stock up four to five points, and the stock ended up down. that has been a continual theme of this earnings season. so shame on you if you buy before you hear. i like to say there is 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'll see you tomorrow

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ is a low-calorie version of a favorite breakfast treat. hi, sharks. i am ashley drummonds. and i am josh mcclelland, and we are from tampa, florida. our company is abs, and we are seeking $120,000 in exchange for 40% of our company.