you don't want to play a single name sell into next friday. >> the name of the book mike. >> ongss edge. >> that does it for us on "options action. check us back here next friday "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 is 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 make you some money. my job is not just to entertain but now educate, teach, put it in context call me at 1-800-743-cnbc or tweet me #madtweets. it was a tumultuous week, people. >> sell, sell, sell, sell, sell, sell, sell, sell, sell >> and that's what happens when the chairman of the federal reserve tells us he may need to

overshoot with his rate hikes. [ gunshot >> to make sure inflation is kept in check, basically, the economic version of we need to destroy the village in order to save it. it's as though jerome powell wanted to send stocks lower. the nasdaq still taking the brunt of it sank 1.6%. look, it's going to be hard for stocks to stabilize until he walks back those comments, or at least clarifies that he is going to make his decisions based on the data rather than giving us a series of lockstep autopilot rate hikes that the economy, as strong as it is with these employment report mace not be able to handle don't get me wrong we were due for a sell-off we were straight up. but this is still a man-made decline. while the fed is worry that business is running too hot, today we did get a strong employment report that nevertheless wasn't all that inflationary that's what i care about they don't need to tighten aggressively just because workers are making a dime more than di they did last year yeah, that's about it.

it's not going to turn us into the buy more republic if we let it go unchecked. we want the federal reserve to be what janet yellen taught us, to make decisions based on what's happening in the economy. it may sound obvious to you, but they didn't really start doing that until after the financial crisis, which is a major reason we had a financial crisis in the first place. data dependency is what made janet yellen so successful as a fed chair. powell would bo doh well to follow her playbook. let's see what the data says and otherwise talk about something else when pressed on his 2019 game plan. now it's not the fed's job to ensure higher stock prices i'm not saying that. but investors are right to be concerned when the head of our central bank starts talks about the need, perhaps, to overshoot with rate hikes. maybe he could try to shoot just the right amount of course, it's not just the fed. the strong dollar is hammering our companies that do a lot of business overseas. it would be nice if powell would

acknowledge how inflationary that is, though. long-term interest rates keep rising, something that tends to crush dividend stocks because bonds become more attractive while also hurting housing because mortgages are getting more expensive and let's not forget the tariffs. now i see housing, autos, and now after this week maybe even retail slowing so it's entirely possible the fed is ahead of the curve already when it comes to stamping out inflation, despite near full employment, the lowest since 1969 in the end, there is only so much they can control, and these three industries really tell us that the rate likes already working like they're supposed to so let's give it a break, and that's a good place to start our game plan for next week. as soon as monday, i know no one is talk about this, but this is my insight as soon as monday i expect president trump to announce his next set of sanctions or tariffs against china. this is a problem. now this weekend very little notice story, the pentagon revealed that the chinese are selling products well below cost

in order to bankrupt certain key american companies that are suppliers to the military. it's an escalation of the trade war, and i bet the president escalates right back with some massive retaliation to protect the pentagon be prepared for some tough talk when we come in monday that should send many of the industrials that rallied earlier this week on hopes that china could capitulate to trump the same way mexico and canada have, send those back down now, that's the industrials. let's talk about what's going to happen with some of the softer good stocks, because tuesday jm smucker, the food company holds its analyst day. this matters because it will help us figure fought people really believe the fed is going to send the economy into a recession, a major theme we got at the end of the week the stock was up today along with the other packaged good plays because people expect the fed is going to send us into a recession, or at least a severe slowdown we need to know if this fine company is going to get back on track. something that many people say is not going to happen any time

soon smuckers had a rough go of things the stock is down 17% for the year let's see if management has a plan to reenergize the business. what that says is a money manager afraid of recession. now that same day there is another important analyst meeting being held by octa, an online security play this is one of the high-flying tech stocks that is having a real rough go of it right now. when the sell-off stops, i think it could be worth owning but okta could go a lot lower before it starts going higher again. these are with the t two key stocks in order to get a sense where the market is going. on wednesday, cramer fav hon honeywell holds an analyst meeting. i like this company for its restructuring, hence why we own it for charitable trust. you can follow along by joining the actionalerts.com club. honeywell is going to talk about the spin-off of the residential heating, ventilation and air

conditioning business called residio, combination of presidio and residential. this is not the time to own a housing stock, even though they have the best thermostats in the world. i have one the honeywell spin-offs have worked thursday walgreen reports. amazon is still putting enormous pressure on everybody's margins, though they're raising the wages for people, and costs keep rising thanks to tariffs and rising gasoline prices however, like what its rival cvs has been up to with the aetna merger more importantly, right now we're in the grips of a serious inflation scare. you know i think the worries are overblown, but trying to fight this inflation narrative is like jumping in the front of a speeding train what could change my mind? well, it could be thursday's cp ireport. if this one does come in hotter than expected, we're going to hear a lot of chatter how about the fed is right to overshoot because that's how you stop inflation in its tracks. but i'm thinking this.

on the other hand, we have a tame cpi number that would be exactly what you would need, and you would expect the market to bottom on that report. if it hasn't bottomed already. finally, on friday we get earnings from three of the largest banks on earth, jpmorgan, citi and wells fargo yoblg the banks can blow away the numbers because long-term interest rates haven't kept pace with short-term interest rates however, those long-term rates surged this week the ten-year treasure have i now at 3.2%. and that means the future for all these financials is brighter than it was a week ago i bet jpmorgan will talk about how the economy is so strong that it is driving good loan growth, something ceo jamie dimon told us a few weeks ago when we spoke to him in philadelphia i think wells fargo will be upbeat about how its customers are starting to return now that they've gotten distance between now and the scandals that plagued them i want them to explain what the new trade deal does for the

substantial operations in mexico which the law forces them to keep separate from their business here in the u.s any consolidation could be terrific for citi's bottom line. we also get to hear from pnc this regional bank supported a severely disappointing number last quarter unusual. it would be really, really very strange and not like them to have two bad quarters in a row bottom line, we're going try to put in a bottom next week with an oversold market and hopefully tame our interest rates and cool our inflation. that said, the federal reserve has gone from a tailwind to a full-on tsunami of a headwind for the stock market, and the market won't give us a sustained comeback unless they get a little less hawkish and more data-dependent, like the fed of recent yore. eric in new mexico, eric >> caller: first off, to paraphrase the ef hutton commercials from the '70s, when jim cramer talks, i listen. >> well, holy cow. >> thanks for all you do. >> thank you what's up?

>> caller: the trade war with the u.s. and demand for copper expected to rise over the next five years, what is your outlook for freeport mcmoran >> i don't like it china is the biggest buyer of copper and i think the chinese economy is slowing because of actions we're taking in this country. let's go to don in massachusetts, please, don >> caller: how are you doing, jim? >> i am doing well, don. how with you >> caller: i'm doing great, thanks jim, the stock i'd like your opinion on is symbol lsdc. >> latta semi? no, no, no, no, no lati semi is not where you want to be right now. not with the sell-off in semis i'd rather go with a lower valuation semi i even prefer intel, which is finally having a day in the sun. ahmadinejad at 23, 24 would be better how about scott in texas scott? >> caller: hey, jim. good afternoon. >> scott, what's happening >> caller: hey, i own jd and i'm down 40% with the china trade

war and the ceo scandal. do you think i should dump it out or ride it out >> no. i don't see any sense owning it. take a look at the vip i think the chinese stocks are all toxic right here and they deserve what they get. okay after a pretty horrible week week, going to try to put in a bottom next week especially if we get a decent cpi number on thursday but if you want a sustained comeback, we've got to bring back the data-dependent fed. on "mad" tonight, ready to soar to the clouds? boy it did well when they announced the deal i'm going to talk with the ceo and i'll tell you how eli lilly offered a master class and the s&p 500 is heading a double-digit gain so far this year there still some opportunities to be had? i'm buying an under the radar play that nobody is thinking about. so stay with cramer.

>> 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. 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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and two-hour appointment windows. click, call or visit a store today. we got some major technology news on wednesday night that you may have missed a pair of enterprise software companies caldera and kortan works are combining and sticking with the cloudera name it's not clear what they do to a layman their platform helps companies get the most out of their data, especially working across multiple different cloud infrastructure providers this remains a great growth business and the merge were horton works could be a game changer. let's check in with tom riley, the ceo of cloudera who will be staying on as the ceo of the combined company to get a better idea what it means for the future of the

company, welcome to "mad money." >> jim, it's great to be on your show thank you for having me. >> i'm so glad you're here you'll be able to explain to our viewers why both stocks went up on this merger announcement when typically it's not the case. >> well, this is a wonderful merger basically, bringing these two companies together, we are creating immense shareholder value. so our plans are that by 2020, just around the corner, our combined company, cloudera plus horton works, our new company cloudera will be better than a billion dollars in annual revenues rkd and we'll have greater than 15% operating margins. the amount of shareholder value we'll create by bringing us together is immense. >> a lot of analysts said not only will there be great snerng synergies, but together they're going to be better than separate and the actual possibility of profitability for both companies could be pulled forward.

do you agree >> that is our goal, and i do agree. this has ban rivalry that's been going on for nearly ten years. we've been going at it really hard against each other, but that has made us both better competition is wonderful but now there is a new set of competitors that we can combine ourselves, be a much stronger company, a greater scale, and we can take on a new set of competitors. and a lot of it are these cloud guys where we are extremely well positioned to win in a different market >> well, you gave in your september 5th conference call a couple of examples of what you've done. i know everyone in our country is familiar with samsung electronics america, one of the world's largest i.t. and consumer electronics companies in order to be able to explain what cloudera does, maybe you could use that example which is already public about what you do so people at home can understand why this merger can be so exciting >> so samsung electronics, like all other manufacturers, are instrumenting and connecting the

devices they create to the internet it's called the internet of things so every car, every cell phone, everything through a supply chain is being instrumented. autonomous vehicles. and we are a company that we sell technology for our customers to collect all that data and use machine learning and artificial intelligence to understand better how products are being used and to make them more efficient or to build autonomous vehicles. and that is what we do, together with horton works, allow us to deliver an enterprise data cloud from the edge where data comes from all the way to ai, getting insight out of that data >> all right i was looking. some of your partnerships are actually a little antithetical candidly you have a partner, large partners, they've got large partners how do you reconcile that without actually upsetting -- how do you not upset ibm, for instance? how do you keep everybody at peace? >> well, here is our view. this merger is a win-win for

everyone all of our customers are happy all of our partners are happy, and yes, our partner system is going to get larger because cloudera had some unique partnerships and relationships as did horton works. so you called out the ibm partnership. horton works and ibm have had a wonderful strategic partnership. cloudera, the new cloudera is going to embrace that partnership much like we've, cloudera have had a wonderful relationship with intel. and now we're going bring the horton works customer base and they're going get the benefits of our relationship with intel we intend this to be a win-win not only for our shareholders, our partners and our customers and all our employees. >> okay. i detect when i made my calls to some customer, they say look, here's what's going to happen. these guys have been going head to head, and a lot of them are trying to take business away from an incumbent. it typically is oracle will this make you more effective versus a competitor like oracle which tends to be known as an on premise company

>> yes so a lot of the excitement about this merger is people expect us to be the next oracle. that doesn't mean we're replacing oracle legacy business with their traditional business. no the world has changed in this internet of things data is much more volume and people want to do artificial intelligence machine learning against that data. that's where we're going to compete, and that's how we become the next oracle of the future the fact of the matter is oracle is a good partner of ours. oracle has resold cloudera software for a long time we're excited about what oracle is doing in the cloud. we intend to work with them there. cloudera plus horton works, we're together will be the only provider delivering our software across all the major cloud guys. we work on amazon, microsoft, google, the ibm cloud, and that's our value proposition enterprises. they can work across all the cloud providers. >> well, look, the market obviously gave it a two thumbs-up. it's very clear that the combined companies can stop

going at each other, and start making some money, which will be great. i want to thank you, tom reilly for putting the deal together and explaining to our viewers about why it's so good. >> thank you, jim. >> all right guys, don't give up on the cloud. embrace companies that combine to take out costs and become profitable where it would be not a situation where you would expect to see profit any time soon "mad money" is back after the break.

at a time when the whole market is clearly rolling over, can we take a moment to appreciate that the stock with the very old-fashioned eli lilly just won't click the big pharma has rallied another 1.8%, after vaulting % yesterday when the averages were getting slaughtered.

in fact, lilly hahn has been running for nine straight session. it's the best acting stock in thes&p 500 in the middle of a horrific sell-off, this is downright stunning ♪ hallelujah we have to explore how that can be the case because it wasn't that long ago investors had given up it looked as bad as the colts at the beatdown of the patriots there were endless worries about its most important franchise, the diabetes market. lilly put those worries to rest, and that's allowed the stock to go from $74 in march up to 115 today. that is an incredible move for a $123 billion drug company. owe hardly ever see such a resurrection it's a reminder that when analysts write off a franchise that is this high quality, you might want to take the other side of the trade.

>> buy, buy, buy >> that's why tonight i want to walk you through the animate any so you can see how the whole process plays out, how a stock goesing from from being loathed to loved and while i think the stock has gotten a little overheated, if we get a market suv that includes lilly next week, i'm telling you -- >> buy, buy, buy >> how did lilly shape the bear case here? how did it convince the nonbelievers before i can explain how lilly got its groove back, you need to understand how it lost its groove in the first place. coming into 2018 pretty bull initiative the stock most had ratings on it even if it was just 10% higher than writ traded in january, lilly got hit with two detective safetying downgrades in the span of a few weeks. >> sell, sell, sell, sell, sell, sell >> first goldman sachs took it from buy to neutral arguing that wall street was underestimating the risk to trulicity thanks to

competition. then the cow degra from credit suisse credits that would take a lot of market share with the diabetes drug everyone was scared of novo. that would be deadly for eli lilly if it were true. over the next few years they expect to get 40% of the franchise from trulicity if the company can't keep delivering, you could argue they were in trouble. they blew away the estimates they raised their full-year guidance but it didn't matter to these bears. the stock actually went lower. the bears were hung up on the trulicity fears and spread the fear wow, i mean, talk about trashing great american institution now lilly did talk about some pricing pressure on the diabetes business, but that was, let's just say way overexaggerated by the bears. in the following days, more analysts jumped on the bears'

bandwagon, arguing that novo was poised to beat lilly to a pulp the bears envisioned this is a multiwave of assault first novo's drug victoza. then novo's new drug which launched in february after multiple delays, by the way, would become the new standard of care for the industry. then they told us that lilly's new trulicity study would be a disappointment finally, long-term novo has another claim that the bears claim would dominate the diabetes business for years to come they painted the grimmest picture of the indianapolis wonder it's obviously the stock melted down it fell from 87 to 74 at the lows and stayed stuck in the 70s through much of the spring as the same analysts kept pounding and pounding and pounding. they need to get out of eli

lilly. they were totally wrong and they cost you a fortune in lost opportunity. how did lilly turn things around even when the company reported a solid beat and raised quarter in the late april, most of the analysts were focused on how the future remained bleak. but they should have been focussed on the fact that trulicity was better than expected, up 80% in the first quarter. it wasn't until the summer that the stock really took off thanks to a stream of positive developments that the bears could not de. it's not like the bears came out of nowhere i've been recommending eli lilly since its sell-off in may barclay's came out with a great note encapsulating both t thesis the pipeline that none of the bears talked about and a span of terrific new products that was the reality but the bears were caught in that fevered dream where novo was running circles around eli lilly. it took a lot to rouse them. the bears started going wrong in the first week of june when the fda approved the company's

rheumatoid arthritis drug and approved a new application for their nonsmall cell lung cancer application. these came out of nowhere. on june 22nd, lilly completed the acquisition of armo biosciences. but the real game changer came in late july when the company delivered a fabulous quarter basically beating the bears over the head with the fact that business was really great. a monster 20-cent earnings beat, much higher than expected sales. management raised the full-year guidance once again numbers for the threatened franchise, well, they were fabulous. a lot higher than expected wall street was looking for 731 million from trulicty. it's up 62%. on top of that, lilly was trying to make sure that the grizzlies and kodiaks got the message. they announced they'd be spinning off their animal health business as a separate company in order to unlock value, something that wall street went crazy for. we did tell you recently it's

too high but understand the spin-off was fantastic. it was high quality play on the humanization of pets i think lilly is much more attractive, though it's a much more compelling story than alanco. after the quarter, the stock popped 8 bucks rising to 96. it has not looked back since lilly continued to levitate through august and september despite a lack of real news, in part because wall street had gotten too negative. stock should never have been in the 70s in the first place lilly drove a stake through the heart of the bear thesis novo was supposed to be eating them alive forget about it. they're nowhere. which brings us to the past week lilly is starting to get a wave, now, now, of analyst upgrades. the same people who warned you to stay away from the stock in february like alex fare and bmo have been grudgingly forced to raise numbers. and every time the bears analyst turns into a bull like this morning, it propels the stock higher yesterday lilly gave us still one more fantastic piece of news

with some very positive clinical trial results for a type 2 diabetes drug they've got in the works. not only does the drug reduce blood sugar, it also helps patients lose weight, something many diabetics struggle with it could be the holy grail it's the possibility of one of the biggest drugs of all time. we should get phase 3 results perhaps as early as next year. but the key here is lilly's diabetes business is the best there is the core of the bears was the diabetes business was doomed these skeptical analysts are going to eat crow right here right now. it's been terrific for the stock. bears simply underestimated this great american institution and they should have to pay for it and be called out. the bottom line. the next time someone tells you a scary story about how a high quality company is going to get pole axed by the competition, remember what i just described about eli lilly. the bears freaked you out. nightmare tales of market share losses, but it had nothing to do with reality they just hadn't done their homework even after that run, i would not be surprised if eli lilly turns

out to be an amazing stock after a couple of points down. and that's when i want you to pull the trigger denise minnesota, denise >> caller: hey, jim, thanks for giving me the cool kit to manage our own money. >> that's what i want, thank you! you've got to be good. manage your own money be great being a client of brokers if you can't let's go to work what do you have >> caller: all right i got a double in biotelemetry, beat, and it consolidated a month, it spiked and now it's dropping like a rock along with the rest of its sector. >> right >>. >> caller: and i'm wondering is this a buying opportunity? >> cardiac arrhythmia detection is a very, very good business. i think people were worried about the apple watch, believe it or not, and how it might be able to detect things one day. i would be careful you got a double take out -- i want you to take all the money, the capital that you put in, out. play with the house's money for the rest

that's fantastic and congratulations. let's go to blaze in new york. blaze? >> caller: boo-yah, jim. how you doing? >> i am doing well how you be >> caller: i am good jim, my question is portola pharmaceutical. >> oh, boy. >> caller: a roller coaster. so most of portola has two approved blockbuster drugs, but i feel the roll-out was poorly executed by management they have a new ceo starting monday so what is your feeling? >> i want you to wait a full quarter. i didn't like the last quarter i didn't like the guidance i think you got to wait. and then when we find out more or they want to come on we will do our best to put it to work, but not here, not now. once again the bears tried to wreak havoc and they failed with a great american institution even in this ugly market, eli lilly has more upside after a couple of points down. much more "mad money" ahead, including my take on the under the radar outperformer you may be missing in the secret cloud play i'll reveal the name just ahead. and getting dunked is hard

why some profile managers are dropping retailers and a special friday edition of the "lightning round." so stay with cramer. i was on the fence about changing from a manual to an electric toothbrush. but my hygienist said going electric could lead to way cleaner teeth. she said, get the one inspired by dentists,

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♪ i told you last night, i don't want you to be here yet in this market. take it from a grizzled veteran who has seen many cycles, when people start selling stocks because they suddenly become worried about higher interest rates caused by inflation, it takes more than a couple of days or week to work its way through the system that said, it's not too soon to start thinking about what to buy in this weakness you know that the cloud stocks suddenly lost their mojo they've been crushed these are all turbocharged growth stories, and the thing about growth is it becomes less attractive when people start fretting about inflation the whole point of the cloud names is their earnings will be enormous three, four, five, ten years from now, not now. but inflation erodes the purchasing power of those earnings a dollar today is going to be worth than a dollar five years from now but you know what? if people are worried about inflation, they think maybe a dollar today is worth a lot more than a stock in the future i'm not that worried i believe that the fed will,

even though i don't want them, strangle any nascent inflation in its crib, just like it always does, even though the worker may not make as much money that's what i'm worried about. but today's employment report was too strong when you account for the hurricane, what made the fed back off i wish they would. but if you think the fed is going to keep tightening like jerome powell told us they would, cloud investlers start circling back. why? these companies can keep growing even if the economy slows down or is halted it's not too late to start adding to your shopping list, looking for high quality companies with stocks that obe worth buying into weakness that will probably continue next week just remember that there is no hurry here you can take your time and let the sell-off unfold. but i got one that we worked on this weekend it really seems interesting to me right now i want to introduce you to guide wire software, gwre.

a fabulous niche the property and casualty insurance base the platform gives insurers everything they need to run their business they handle policies, underwriting, billing, pricing claims, data analysis. with guidewire, companies can save themselves a fortune by automating many of these functions, and yes, cutting out people and letting the machines do it. but the reason i'm mentioning this company now is it just started transitioning to a cloud-based software as a service model. as we've seen over and over again, this is a fabulous -- ultimately a fabulous move if you bought adobe or autodesk when they started embracing the cloud, you made a killing. remember, those have been two of our favorites, even though it's a bumpy road when you transfer to the cloud, a and you need conviction to stick with them when things get messy. well, things have gotten messy for guidewire. you probably never heard of this company, but it gave you a 644% gain just since it came public in the beginning of 2012 30% for 2018 lately the stock has been

pulling back it's down 11 points from its highs over the last few week, in part because management's guidance was seen as being pretty suboptimal when the company reported in september, really the kind of first miss. so what's the issue here coming into the new year, the bulls were all exuberant guidewire had accelerating growth you know how much we like that it was at the beginning of a multi-year transition to the cloud. last year 95% of the sales still came from old-fashioned on premise software that we always talk about is a dead duck. however, this year the bulls expected that to grow to 30 to 40%, and guidewire's new subscription based service as software as a service model is a lot more lucrative than the old model of making customers pay upfont for software license and then never getting another penny out of them until they need to upgrade to next version. for a while this transition was smooth sailing guidewire reported strong quarters and developed a reputation for underpromising and overdelivering

the cloud transition seemed to be going perfectly everything playing out ahead of schedule business was roaring and then in august we got some very positive analyst coverage and it catapulted the stock still higher plus, it didn't hurt that guidewire is turning itself into a cloud name at a time when wall street is desperate for two new cloud names. sick of the old cloud names. but last month things started going off the rails. first, guidewire reported on september 5th. while it was strong, the guidance for next year came in weaker than expect, and that freaked people out because it's an expensive stock so in response, the stock got dinged they fell 4% the problem, the company saw some slippage with their cloud offering for large clients, meaning the deals didn't close as quickly as they planned this is not the first time we've heard this from a cloud-based software company or one transitioning to the cloud like adobe or like autodesk then on the conference call management indicate they'd needed to wait until 2020 or beyond before the cloud adoption story really went into high

gear now the next day the analyst community stepped in to defend guidewire, it's been such a winner, arguing that a couple of deals slipping in the next quarter wasn't the end of the world. the cheerleading definitely worked guidewire surged, climbing from the 90s to 107 in the middle of september. well, then a couple of weeks ago, guidewire unveiled new long-term forecasts at its annual analyst day management believes they kneierly double their revenue over the next five years subscriptions going from 36% of the new sales to 80% that's what we want. while margins rise and cash flow explodes higher. this was a very bullish plan, and i liked it but then we got a classic sign of a peak, one i've got to emphasize more and more as the year goes on the analysts went to work pushing the stock after that meeting, but nothing happened. oh, it rallied a little bit. but ever since that little bump, guidewire's stock has gone down practically in a straight line when wall street price targets boost, when they make their boost, stop pushing a stock higher, that's a sign that a

once beloved stock may be ready to roll over sure enough, not only has guide wire been rolling over, the past week weakness has spread to the whole cloud cohort it's now down to 96. it's far from cheap and this is what happens when momentum stocks fall out of favor with the wall street fashion show guidewire trades at nine times next year's sales, not earnings. sales. yet it's only expected to deliver revenue growth in the mid teens over the next few years. basically it's trading like a cloud king but didn't have if growth why am i telling you you should think about it let alone buy if it comes down? because it has great long-term story. this is exactly the kind of stock that actually gets cheaper as it goes lower at the end of the day, these guys still dominate this one business, the property casualty insurance software business. they have limited competition. no one seems to want this market other than them. the transition to the cloud is inevitable, and it's going to make them a fortune, but i wouldn't buy it for this moment. you got to let it in, because the cloud stocks are all coming down

if you are worried that the cloud stocks are going to keep falling over, guidewire is one, maybe you should buy at the $85 level. that's my new price level where show you've should pull the trigger. bottom line, when software companies transition to the cloud, it is an inherently bumpy process, but eventually the gains tend to be enormous. well stepped right into the breach in adobe and autodesk, and i'm thinking guidewire could be the breach here but for heaven's sake, the whole market is getting crushed right now, especially the cloud stocks so please, let it come in. if it keeps getting hit, you can buy it if it never pulls back enough, just say you missed it and move on, but remember, the cloud is still the place to be, and "mad still the place to be, and "mad money" is back after the break what's critical thinking like? a basketball costs $14.

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♪ it is time it's time for "lightning round." >> buy, buy, buy, buy, buy, buy! >> sell, sell, sell, sell, sell, sell, sell, sell, sell [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round. let's start with fred in maine, fred >> caller: hey, jim, a big boo-yah from the beautiful state of maine first time caller. and dedicated listener.

>> thank you >> caller: my question for you is for the stock camping world, cwh, with marcus at the helm and the seeming low price evaluation, i want to know what you think of the stock. >> caller: i thi >> i think it trades with fore so i'm going to say not yet, not yet, not yet let's go to angelo in new york angelo >> caller: hey, jim. how are you doing? >> i am doing well, angelo how about you? >> caller: hey, thank you so much for sharing all your market wisdom on a daily embassy sis. >> you're very kind of thank you. >> caller: okay. so i'm thinking about getting some biotech for my portfolio. what do you think about spectrum pharmaceuticals? >>, no man, if you're going to do that, you want to go high-end even 30s got a 100 -- well two, hundred dollars, amgen, which my charitable trust owns, amgen has this drug that is taking the world by storm it's an anti-migraine drug amgen is the one you want. cynthia in massachusetts cynthia? >> caller: hi. my question today is about

avengrid it's going down. >> yeah, all the utility stocks are going down the two i'm recommending are dominion now it's finishing the south carolina situation, but more important, aep. werner in florida. werner >> caller: mr. cramer, thank you for taking my call before we start, though, my wife just mentioned that she had heard you had recently lost a pet. >> yeah, yeah, we did. >> caller: and i just lost two beautiful dogs so we have your heartfelt sympathy. >> thank you we had to put bug down because of a tumor and everybody who owns -- who knows animals or has one knows that this is far more painful than you ever thought before you ever owned one so thank you so much and i'll certainly tell that to louisa i'll pass that on. how can i help >> caller: okay. my wife got some information from her investment business daily first part of the year on a company called crispr. >> investors business does a

very good job. that's a momentum stock, and right now momentum is out of favor. so i cannot necessarily recommend that crispr is the place to be. and that, ladies and gentlemen, is the conclusion of the "lightning round"! [ buzzer ] >> "lightning round" "lightning round" is sponsored by td ameritrade ♪ >> survey says, it's family feud "mad money" style. repeat after me. they were doing upd. they underpromised and overdelivered. exactly what i told the eagles to do last year during summer camp and they won the super bowl >> let's get them! ♪ >> oh. ♪ all right. well, not buying anything this show

stay with cramer ♪ hallelujah i don't like peanuts and chocolate. i don't like the combination of the two. it's absurd. reese's should be used as road kill it's alive do you know almost 50,000 people watched my video of taking out the seltzer. >> what's wrong? >> it's a terrible rat like the end of my stomach line. cheers >> let me do that again. i didn't like it i didn't like it let me do it again? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. 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. ♪

♪ when i first came to ocean bay, what i saw was despair. i knew something had to be done. hurricane sandy really woke people up, to showing that we need to invest in this community. i knew having the right partner we could turn this place around. it was only one bank that could finance

a project this difficult and this large, and that was citi. preserving affordable housing preserves communities. so we are doing their kitchens and their flooring and their lobbies and the grounds. and the beautification of their homes, giving them pride in where they live, will make this a thriving community once again. ♪

♪ it is brutal out there negative story lines popping up all over the place leonard talked about a pause in housing, their word, not mine. and it decked a slew of stocks we've been learning that china has been hacking chips in all sorts of devices you better believe that's going to cause an escalation in retaliati retaliation. but that's not what really zaires me, no. the thing that keeps me awake at night is this new narrative the death of retail. a story that can't be defeated, even by good numbers or decent employment report which gives nice job growth with very little inflation. that's exactly what the stock market wants to see. according to this new negative theory, the retail stocks are being hit with a perfect storm of negativity, which makes them far too dangerous to own and remember, the story doesn't need to be true for it to do a

lot of damage. take a look at the stock at costco, down 5.5% today on a pretty decent quarter, for heaven's sake. let me trace out this bear case for you so you know what's going on first there is the fed by laying out a path of multiple rate hikes regardless of the data which is essentially what jerome powell did earlier this week, the fed is saying we can't have people make more money than they are because wage inflation must be stopped in its tracks. retail has been aided by the tax cuts and corporations as well as individuals in about half the country, which gave people more money to spend but if the fed's going to keep tightening on autopilot, that's more than enough to counteract tax reform >> the house of pain >> second, the price of oil has become too visible so even though cars have gotten a lot more fuel efficient in recent years, people assume that the price of the pump will really start crimping their spending your heating fuel bill likely lower thanks to cheap natural gas in the country it's far more important than your gasoline bill but it's also much less than you're faced than the price of

crude so people don't notice third, retailers have tough comparisons coming up. the numbers for the industry started improving pretty dramatically at this point last year, which means it's going to be harder for them to show decent year-over-year growth going forward. for money managers who chase growth and thirst for it wherever they find it, tougher comparisons mean one thing. >> sell, sell, sell! >> fourth, retail workers wages are on the rierksz crimping margins. ever since amazon raised its pay to $15 an hour this week, investors have worried that retailers, all over the country are going to have to follow suit now it is true that amazon's hourly workers may not live anywhere near where, say, a target might be, but wall street likes to paint in broad strokes. money managers just say okay, everyone's going to have to pay wages that are like amazon's, as if amazon somehow sets the minimum wage, and that's all she wrote. fifth, retailers can't get out of china fast enough to save money, particularly on private label merchandise they have made there. sure, vietnam is open for business and it's cheaper than

china. but you can't put up new factories overnight. so thanks to the president's tariffs, the consumer mace have some sticker shock this holiday season as costco told us last night, retailers can either eat the cost themselves, bad for business, or they can squeeze suppliers. ultimately, though, the consumer could suffer some as the tariff costs will have to go to the shopper, at least until alternate sources develop outside of china taken together, these five factors make it logical to sell nearly every retailer under the sun. the only real exceptions are maybe the offprice change. thanks tjx and olis, both selling goods cheaper than amazon can sell them and perhaps a couple of positive situations like a lulu i don't believe retail will be weak, but that's not the issue what matters is the perception, the perception that portfolio managers believe these stocks can't be as good as they were last year tlat time. and that means the retail stocks are going to be dumped no matter what and that's a very big problem for anyone who owns target or pbh or best buy or macy's,

though the latter is obviously in the grips of this whole thinking already or otherwise would be a lot higher. in short, it's going to be a good season for all these chains but probably not good enough to make a difference now that wall street believes retail is about to fall off a cliff. remember, on wall street, the story doesn't have to come true to crush these stocks ahead of time stick with cramer.

♪ not long ago, ronda started here. and then, more jobs began to appear. these techs in a lab. this builder in a hardhat...

...the welders and electricians who do all of that. the diner staffed up 'cause they all needed lunch. teachers... doctors... jobs grew a bunch. what started with one job spread all around. because each job in energy creates many more in this town. energy lives here. ♪ i came out here to praise full employment and the idea that you should be able to make ten cents an hour more than you were last year at this time, but everybody else decided no, we've got to slam on the brake i'm telling you not to be as fearful, but we have not bottomed yet well need to go a little lower and then we'll take a look at some stocks. i recommended some tonight that i like very much let's not quit let's stay in the game let's not panic. i always 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 am jim cramer, and i will see

you monday >> welcome to the shark tank, where entrepreneurs seeking an if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ with a new way to serve an old-fashioned dessert. are you guys ready for something good? are you guys ready for something new? [ laughs ]