>> electronic, underperformed and will outperform the next two months. >> guy >> bitcoin being sort of the beta tell. >> "mad money" starts right now. higher "mad money" starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. saved. the bulls got saved again. ever since the market bottoms over a decade ago, good things came out of nowhere.

dow surging 193 points last week, i was worried beyond belief frankly about what looked like the disillusion between the relationship between united states and canada. i know they didn't show up for vietnam, but we have had a good relationship for ages. and last week it seemed to be fr fraying when the president took pot shots at justin trudeau. so believing that we had a solid deal lined up with mexico, it was a possibility that we were about to blow up our relationship then, right in the middle of a sunday afternoon spent watching football, the news broke that

canada folded. and the u.s. got a much better deal than we had if you were worried that the president was going to tear up nafta, this was a win. a w. sectors like the rails, they catch bids c auto parts makers many which were stuck in the middle, exploded higher. leer and magna took off. it was a radical change narrative. something that caught many bulls by surprise and left bears stunned as they were set to pounce on tech and transports alike. there is a newfound belief that

china may be ready to fold too we thought that the chinese were taking the long view or hoping to run out the midterm elections, but the stocks of companies that would benefit the most from china, saw their stocks go higher if you had told me that boeing was going to reach an all time high, i would have you get your head examined. there it was going right through to $283. there is no deal with china. it seems things are frosty between our governments but things were tense between u.s. and canada on friday and everything worked out. still, we have more leverage than they do if only because china exports $500 million worth

of goods to our markets. there wasn't much reason to think that they would compromise i would be of an opinion that china is a bit of a paper tiger. the fact that canada got shamed into making a deal, making those supposed experts to change their calculus on china. the trade deal wasn't the only thing that was saved let's look at tesla. i mean, both for him and for the shareholders directors and chairmans, getting a slap on the mess risk the wrath of the federal government sure enough this weekend agreed to the board changes and exceeded to a ruling that his

tweets need adult supervision. tesla made 80,000 model three cars in the third quarter. we come in on monday and he is safer than ever with much better safer numbers. finally, there is general electric, now this company had been let's call it an achilles heel for the market. thanks to terrible decisions, by former ceo the company turned into an unmitigated disaster 13 months ago, ge picks an insider to turn the business around today flanery got fired for moving too slowly.

i found it astounding. the situation was so bad, it was hard to fathom what was needed to turn things around. we learned once again that ge was doing much worse than we thought. and at the same time the company appointed board member larry kulp a brilliant manager to replace flannery and put an end to the negative chatter. the response, the stock surged more than 7% today now the skeptical analyst remain skeptical. and when you boot the ceo after 13 months, the presumption is the company is doing far worse than you think it was a brutal move but wall street loved it. maybe they will become more positive once the full story is

known. a bunch of tech stock that rallied last week and then they reversed in what was called an island reversal. social media got she woullled, facebook went right back down. what matters is the bulls once again snatched victory from the jaws of defeat it remains the story as we turn the corner on a brand new quarter. andy in new york. >> caller: what's up, jim, go fliers. >> yeah, absolutely. >> caller: i wanted to talk about wwe. i started to buy in at $18 a share when i saw them pack 100,000 people the stock price has been recently flirting with triple digits it has an international appeal

and the summer slam weekend will be in toronto next year. at the same time all sorts of mergers happening. comcast recently won the bidding war, so with wwe network sub vibers on the rise, how high can it go? >> i can't come out on 200% move and say there is a lot less. i cannot bless it up here. it is too high and i liked it for a long time let's go to ken in michigan. >> caller: ba-booyah i bought cintas last week and they gave great guidance, but the stock is down 8% now, what is your opinion on this. >> i thought it was fine

the thing had such a big run, it would not surprise me if we look back and say that was the time to buy cintas. i am not backing away from that one no way mo how about madeline in tennessee. >> caller: hey, jim, thanks for taking my call. >> of course. >> caller: my question is about kraft heinz, the single worst performer in my account. i know that kraft is trying to diversify and recently purchased a coffee bean company. should i sell this stock or should i hold it >> i think you should hold it. but if it goes back to 60 where it has been flirting, then sell it i do not like the company. i don't like the business, it is slowing. i say no thank you the bulls got saved again, sure,

they won't win at all, but wow, what a way to start the quarter. on "mad money" tonight, survey says it is family feud i will show you how to play survey monkey's ipo. i am going to point out the stocks that have been able to thrive despite action from the death star and i am explaining why i am apprehensive going into the fourth quarter stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.

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♪ hey, hey, we're the monkey >> while out in silicon valley, i kept hearing one word over and over again, personalization. think about all the data they f

have on you. coming up with new ways for products to tailor them to you on wednesday a little company called svmk. better known as survey monkey came public with a bag the stock was supposed to price $9 to $10. and then it immediately spiked to $18.75. while the stock ended up pulling back closing at $17.24 cents a mag nnificent 44% gains and so which move is telling the move in the profit taking we have seen since then or the

initial strike you need to understand the business model for those of you who aren't hopelessly addictedto the internet, survey monkey makes it easy to conduct online surveys the company has a more limited free version of its software, if you want all the bells and whistles, security, brandsing, analysis, you need to pay up for the enterprise version when it comes to online surveys, i don't think anyone is close to these guys let's take a look at the financial. up 5.5% in 2017. they increased by nearly more than 19% but here is the thing, when svkm became public, investors were clamoring for it

the problem it is going slowly than those companies 14%, that is not the stuff that dreams are made of now this would be one thing if svmk was still a start up that was still establishing itself. they invest and they can expand their business in the future, but nothing fresh faced about survey monkey, this was a creation of the dot com era. it is more than 20 years olds. the fact that it is not yet profitable is less than ideal had i been back here, i would have gone. how about -- that's actually down by 3% last year big pick up versus 2017. these are not the numbers you

would expect from a turbo growth stock. it is a cloud commoner so the company get its business growing fast enough to justify survey monkey has a plan something that seems to be working based on the higher average revenue user the company thinks they can make a lot of money by converting those individual users into corporate level contracts with larger organizations at the same time survey monkey is investing largely in international growth where do i come down on this one? consider me skeptical. survey monkey has a well-known brand, but i worry it could be a dinosaur do they really need surveys to

know what you think? i don't think so already give companies an incredible read on what their companies want is there a place, a need for survey monkey? salesforce seems to think so this is the most positive i can think about the ipo. at the same time salesforce bought $40 million worth of stock. 12,000 shares, typically, they know what they are doing, but maybe it is not as bad survey monkey has a lot of financial red flags. the meager 3% increase in paid users is anemic. all of that could be forgiven if the company was profitable but the losses are getting wider. lost 24 million last year. widening losses are not what you

want to see from a tech ipo. even after the company used the majority of its ipo proceeds to pay off a third of its debt. these guys have a simple premium model. hey, listen, we have seen this model, it is the same thing as dropbox, but dropbox has a faster growth and much larger user base. but survey monkey is no drop box. and google has thrown their own hat in the survey ring survey monkey will tell you they have a superior product. but the real problem is the valuation. making it more expensive than box or dropbox and marginally cheaper than a cloud king like

splunk much slower growth than any of these companies. at $12 where it came public, valuation came closer. the bottom line, look, i like survey monkey, i like the product, but i can't justify buying the stock they did it at $12 a share if survey monkey pulls back to those levels, we can revisit it. for now, i say steer clear of survey monkey. charles in florida. >> caller: booyah. i have a question of pivotal ticker despite a good quarter but it still got killed in the, and still getting killed is that representative in the

cloud? >> yeah, to some degree, but i disagree with you about the quarter. i did not think the quarter was as great as you are describing there weren't flies on this quarter. but i want to steer clear of pivotal. i like vm ware i say no to pivotal. too dangerous. since amazon launched, it is continuing to disrupt injury i'm eyeing the amazon effect and then it is a company that works with some of the largest technologies and digital media cos. could it be worth owning plus the fed played a key role in our comeback, actions also cause sectors like the home builders to take a beating i am digging in to tell you why

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[ding] ♪ ♪ i'm a survivor whenever amazon announces its plan to dominate a new corner of the retail a whole swabs of the market get mowed down like infantry, we are done that is why we call amazon the death star in practice, amazon is a lot lest less terrifying than it seems. as i have told you before, these

amazon sell offs do turn out to be terrific buying opportunities. because the reality isn't as bad aspeople expect it to be some companies are expected to survive and even thrive. i want to check in on the amazon survivors. the stocks that stood to withstand the death star rays. amazon bought whole foods, whole grocery foods got obliterated. costco, kroger, sprouts. if you circle back a couple of months later, some of the most badly damaged stocks rallied let's see, it has been roughly 15 months since amazon bought

whole foods. costco talking high single digits a digits can costco keep running, the company reports on thursday night, and it might be priced for perfection let's see what they have to say. how about kroger, this stock has been tougher to own that costco. rough earnings, pretty volatile. but the darn thing has rallied more than 46% since last october. when kroger reported latest quarter, the stock lost 10% in a single session because the numbers were just so darn ugly kroger is still one of the best grocery chains in the world. the stock is a wild trader i wouldn't buy it unless you are prepared for whip lash

as for sprouts it is up 55%. stocks went up so dramatically, it would be reckless not to take some profits that is a high quality profit when you think about it. even supervalue took a take over bid in july. lately, the analyst had started fretting that the supermarket could see serious erosion of already major thin market. although the fact that the president made a deal with canada, it is good news for the deal i like costco. it has something the others don't have, a membership model you pay them for a fantastic deal and that's where they make all their money. the rest of the supermarkets they went up too dramatically, and nothing wrong with ringing

the register who else counts as an amazon survivor the retail death stars were setting its sights on the auto price market auto zone lost 33% o'riley plunged. the stocks coming down too far too fast all three look incredibly cheap to me. o riley up is 33%. and i didn't even nail the bottom if you caught them a few months earlier, your gains would be even more fantastic. o'riley is doing great auto zone is the value name of the group. sells for 6.2 times latest

earnings equal to about 6% of the share count and the stock is now above where it was trading when the so-called botched quarter was reported i think this group has a lot going for it we know people are buying more and more used cars these days and used cars need more maintenance. i think o'riley and auto zone are good next day home day delivery service. look at cramer fave etsy, the online brooklyn marketplace for hand crafted goods amazon was supposed to crush them with amazon handmade. last year, amazon tried it again, launching a handmade gift

shop, again, etsy stock got dig and that turned out to be a buying terrific opportunity. the fact is sellers love using etsy's platform. they have given thousands of business platforms amazon had real trouble displacing them. we found handmade aprons for our restaurant in brooklyn, where did we buy them? etsy amazon was getting into the drinking business. but now the stocks rallied more than 24% from its lows i think cvs health has a bright tradition. i adore amazon not evenly an issue. but that doesn't mean every industry is trying to fold like

a house of cards the next time you see them entering a new market think twice before you sell. it might be a terrific buying opportunity. let's go to aaron in texas. >> caller: i am a huge fan started with your book and on your new one now. thanks for all the knowledge, sir. >> thank you >> caller: i am calling about copart just bought it back last week. really like it because i think it is different from all the other automotive stocks out there. restoring restoring vehicles from insurance companies. >> they did miss the quarter and therefore they are in the penalty box with "mad money. we talked about this stock about

ten years ago. because they missed the quarter, i cannot recommend the stock, i'm sorry let's go to doug -- oops, that's it. i'm sorry. we will get doug next time some companies are able to survive and even thrive the destruction. what a great group of stock. much more "mad money" ahead. an update for the market explaining why a weak jobs market could ratchet up fear for the r word, recession. if the dog ate your homework, di-it for you. and tonight's edition of the "lightning round." stick with cramer.

when ever someone asks me about a stock and i can't give an answer on the spot, i circle back back in july 19, lenny from new york called in to ask about switch that's swch for you home gamers, so what does switch do this is a company that builds and operated what are known as hyperscaled data owners, switch is plugged into the great secular stories of our era rather than using old fashion on premise software, stuff that is located in your business, it is where you need to store

everything on your own servers and very uneconomic way to do things versus the could. the cloud you store everything on data store servers. you need massive amounts of electricity. you need to keep all of those servers cool the air-conditioning built for these places would give you an heart attack this is where switch comes in. a lot of this comes down technology invented by switch's founder rob roy. there is a fourth being built in atlanta. at the end of the day, even the best designed best managed data center on earth is still a bunch

of computers in a warehouse. i told you it was too expensive. stay clear since then, the stock has plunged to ten bucks and change. almost cut in half my only regret was that i won't even more negative company is slashing its earning estimates. the culprit, management blamed and i get this, several deals closing later than anticipated taking additional times to evaluate the time of long-term developments translation, customers aren't biting like they used to yikes. we learned that intel venture capital arm was going to sell its shares in switch with no

explanation. and look, even after being cut in half, switch, the stock is still expensive, sells for 51 times. rich valuation long story short, yeah, there is a lot of demand for data centers but that doesn't mean you want to own a stock like switch this has been a house of pain. avoid it next up on august 7th, james in california wanted to know about grand canyon university. earlier this year, grand canyon which at the time was a for profit college and they announced a break up plan. they would turn the actual university into a nonprofit with the services business sticking

around the business is all about selling these same services to other colleges and university. how do we feel about the new grand canyon this stock has been on fire. putting on another 26% year-to-date the company is profitable. now, the stock has come down about ten bucks from its highs over the summer. and i think it is attractive here the for-profit education tends to thrive under republican presidents so i think you can put on a small speculative position in grand canyon the stocks may sell off if the democrats take congress. i was asked about green sky, a financial company that helps

people buy things on credit. they make it easy for merchants to hook up with bankers to give them loans on the spot one of the reasons is the rise of nontraditional lenders. now this company became public in the spring, but since then, the stock has come down more than 21% because when green stock reported out of the gate, it was reported as dispointing. my view, this is a fin tech company selling for 20 times next year's earnings estimates you have my blessing to buy it, but only for speculation "mad money" is back after the break.

♪ a moment of joy. a source of inspiration. an act of kindness. an old friend. a new beginning. some welcome relief... or a cause for celebration. ♪ what's inside? ♪ [laughter] possibilities. what we deliver by delivering.

>> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire i tell you to buy, buy, buy or sell, sell, sell we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy?

it's time for the lightning let's start with doug in new york >> caller: how are you >> i am good how are you? >> caller: thanks for taking my call, i am a first time caller here, booyah recently saw that snap and amazon had a collaboration do you think this is going to be a disrupter for the market >> no. snap is just drifting lower. don't feel like you can buy it don't see a lot of good. >> chris in new york. >> caller: calling out of buffalo, new york. we love you. me, my mom, and little sister, watch your show every night. we have been looking at a stock, called blackstone >> the answer is absolutely, smart guys and doing a terrific

job. i need to go to randy in ohio. >> caller: how are you question about nova cure should i hold it. >> we have been behind this stock since the teens and we believe in the technology. still amazed that it hasn't been acquired i like the stock but i would do a little snipping. ricky in california. >> caller: hey, mr. cramer, booyah from san francisco. how are you? >> i like that we were just out there what's up? >> caller: nice. i wanted to ask about lululemon. >> okay, hit a 52-week high today. i still believe just like ollies, thank you so much for great picks. lulu, ollis and burlington

and i like under armour. jeff in wisconsin. >> caller: granite construction. >> i was looking, i don't like this group it is too hard they need infrastructure built and they don't have it trent in california. >> caller: how are you doing >> i'm doing well. >> caller: thanks for taking my call starbucks. >> stock acted weak today. buying back stock left and right. i don't want to buy it until i see this quarter being booked, because i think it is just going to be okay how about brian in texas. >> caller: brian, in texas,

always surreal talking to you, my first question comes with love, how many seconds on the clock before the cowboys won >> good for you. detro detroit snaked it. what's up? >> caller: last wednesday, my utilities were down so much. i was terribly in the house of pain but i raised some cash and that covered some sins buti have what i think the bes utility out there. why do you think the utility etf is outperforming. >> what stock? >> caller: con ed. >> it is really good let's go to dan in new york. >> caller: jim, how are you doing? >> i am good how are you jim?

>> caller: weight watchers >> no edge stock has moved a lot. bob in california. >> caller: booyah, cramer. >> what's up >> uaa. >> i think it could go higher. i like the stock very much kevin in california. >> booyah. calling about ak steel >> no. no how about we go to joe in texas. >> caller: booyah from the great state of texas first time caller, thanks for taking my call. >> what's up >> caller: my question is about ibm. trading at 12.5 times next year's earnings. what are your thoughts.

>> i agree exactly for the reason you say i think ibm is a buy. and that is the conclusion of the "lightning round >> announcer: lightning round is sponsored by td ameritrade they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

i'm a big believer in using fabulous days like today to go over what we are worried about and the one thing that worries me is, and this is a new

position, but what worries me is the fed. so far an excellent track record from this comeback of the great recession. the fact that we have gotten here without much of a pick up on inflation tells you the feds have done a magnificent job. however, i feel trepidation in the wake of the recent hikes since banks make money on the difference between the short rates and the long rates, their margins are going to get crushed here now we need the banks to keep lending and we are hearing too many tales of slowing regional slow in growth you can't turn a blind eye to the lousy action of the housing stocks we have a series of strong quarters for home builders

as the ceo of kb homes said, i have seen all the coverage in the media on where we are at, the cycle and i keep getting back to the current inventory levels which are low and while the national numbers are low months, many are two months and then price point, it is even less in other words, the home building business is terrific. but wall street is terrified that it can't stay terrific. the real culprit is the federal reserve. when the fed tightened last week, it immediately said they will give us a rate hike this year and then three more next year no wonder the people can believe the home building renaissance.

it is down right unnerving every one of those stocks are in bear market territory. third, how can you not worry about the auto cycle even after the trade agreements florence should give them a lift as insurance payments let people buy new cars yet no one seems to care even though the company seems certain that it doesn't want or need to cut the dividend, i think you have to be concerned here meanwhile, auto nation, hits another 52-week low. the best you can say for them, is it might be something secular. the whole american auto industry got a nice boost from the president's trade deal with canada finally, discouraging statistics out of china this weekend,

definitive slowing out of manufacturing. and it means more likely to give the presence on the straed this bull market is not just about america. it is about sinynchronized no growth italy, so many problems and now china is slowing do. what make this is important is simple, we get the labor departments payroll numbers. if it is weak, the drum beat will be too loud to ignore i am not saying that is going to happen but it is an ugly possibility that we at least have to look out for. stick with cramer. people tell me all the time i have the craziest job,

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to one-touch conference calls. beyond traditional tv. to tv on any device. beyond low-res surveillance video. to crystal clear hd video monitoring from anywhere. ♪ ♪ gig-fueled apps that exceed expectations. comcast business. beyond fast. tonight at 10:00, on american greed, it is the gold standard of fraud. convinces believers to sink their savings into his $26 million scheme watch so you don't get taken 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 of "american greed"... epie

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