>> torn up that's what we want. so we're hitting 2-1 going into tomorrow you're happy about that. >> absolutely. >> you know what else you should be happy about the stealth rally in bst ariolnd bmy. >> that does it for us "mad money" with jim 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. okay, what the heck is going on here? how did the market manage a rebound after being down so dramatically dow gaining 40 points.

it was huge. and s&p dropped. and nasdaq still shed. at any given time, there are many camps on wall street. right now we two major camps the first believes the feds are going to overshoot with rate hikes. if they are right, you need to rotate out of the industrials and move into the slow down stocks that's what i call the consumer packaged stocks with high yields rotation was in full force today. and i like to pick individual stocks that you all know to demonstrate it let's look at pepsico. buyers wanted cyclical stocks. didn't matter what pepsico was doing.

didn't matter that it was going well later in the week, fed chief decided that the economy was so strong, he needed to raise interest rates wasn't thinking about anything else other than moving them up lock step. the decision should be based on what is actually happening went out the window now we have a fed that wants to tame rates as soon as possible it doesn't matter the fed had spoken and when you combine pal's view, we have a new narrative. the fed is going to cause a slow down and in a slow down, you want to buy the soft stocks like

pepsico. and it was up even during the bad parts of today let's talk about kimberly clark. it would have been down huge they pay you about a 3.5% yield. if there is a slow down, that means interest rates will go lower making these dividend stocks more attractive to investors. if you want to know why these recession proof stocks roared today, it was the slow down camp working its magic betting on lower interest rates then there is the second camp, the people who have genuine run away inflation fears every day thisgets something new to stoke the world view. ppg you announced a 10% hike the company cited unprecedented in raw materials freight,

distribution and labor across every region that's mighty negative it makes you feel like inflation is raging and the fed might be behind the curve when it comes to slowing it down the opposite much the other camp, right? what do you do if you think inflations are out of control and interest rates must go higher you sell the high growth stocks. each the purchasing power out in out years. these growth stocks will keep climbing now these stocks are collapsing and they didn't even bounce much it is amazing to see how the super growth stocks like the cloud kings and the medical devices collapsed. amazon got clocked

my trust owns it and wants to buy more the stock is in silly death mode alphabet gets hit of course because are worried about high growth security stocks the only f.a.n.g stock that held up is facebook because it sells less than 20 times than last year's earnings. it does represent value here didn't we just interview john don donna dehoe. the big institutional investors won't pay as much for these future prospects because there is a lot of

inflation. and they won't be worth as much. that is what inflation does, it erodes the value of high growth. they just want to sell before anyone else realizes the scope of the problem because they think these stocks are going a lot lower. that whole saw when you and your friends are being attacked by the bear, you don't need to outrun the bear, you need to outrun your fellow shareholders. the airliners hurt by oil prices alcoa gets simply annihilated. a possible recession makes you sell those growth stocks, makes you sell the economy sense stocks it is a negative scenario for starters, it was a federal holiday and we had no bond

market europe because of battalion worries and asia because italian markets got obliterated. those who don't know anything except they like to trade-off overseas markets, they sold, sold that worked until the afternoon when other buyers came in. and instead these people wanted to get bargains in oversold markets. we are in the grip of the cloud kings, they are trading together in a basket when is set you wup advantage. there is a group of stock that can be bought and sold together. that is what the etf do. this is a minority view, the fed has insisted these camp

followers are wrong. if long-term rate stabilizes, guess what, you could see a mongo rally and these managers want to capture the major gains. that is what helped us in the afternoon. last but not least, we are oversold, and we have been going d down to the point, where people who wanted to do buying did come in money managers think the fed has lost control and inflation will keep rising sold the turbo stock growth stock and they did that all day. everything went off kilter and hopefully magnified because today was a bank holiday you to have be careful from extrapolating from the actual

federal holiday. we will know more when the bond market opens tomorrow. kyle in delaware >> caller: booyah from the first state. >> what's going on >> caller: not much, my parents and i watch your show every night. >> thank you. >> caller: my question is about pzza how do you feel about papa johns in the long-term >> i think they are doing well in the long-term domino is doing well and pizza hut is doing good. peter in texas. >> caller: i am currently a junior at the university of texas. i have a question about

starbucks. as we head into the pumpkin spice and holiday season, i notice starbucks has been trading inversely. >> i like the background, here is the thing you need to know. i don't think this is a turn around quarter, but the company has been buying back stock left and right. i think the stock only has a couple of points downside and many points upside i think kj is doing a good job. >> this market boils down to three ps, rates, inflation and the fed. on "mad money" tonight, inflate gate i think this may be a case of a much ado about nothing then power rankings are no longer just for football how watching wall street's

rankings can make you money. zillow, a real winner for investors, has the story changed? i am eyeing the company after its recent drop. so 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. something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year.

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what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments

in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. when you break down last fridays unemployment report, there is not a lot that should scare the inflationistas the big came in white collar jobs in the past year, this sector created 560,000 jobs

next is health care. th that represents a slow down in health care hiring maybe this means we are starting to get health care cost under control. we keep hearing about rising transmissi transportation cost. when you look at the numbers here, you see little new employment year after year i think the truck industry got caught flatfooted with the safety rules that dramatically reduced the number of hours that they can drive here is the thing, this transportation number should have been up much more we need more drivers pronto. if it doesn't start going higher, we can start with

inflation. that's why ppg has to raise prices by 10%. i say only because this number is a sure sign that either lending for new building is slowing or housing is slowing. maybe both what does it mean for the stock market i think it sends stock plummeting, maybe a little to do with wage inflation. i think it means that the bond markets has serious sellers in it sellers that are not related to the numbers. hardly that additive was supposed to generate the better wages. perception is everything we have been way down by a belief that retailers will be crushed by a combination of tariffs and trucking companies

haven't adjusted to the new world. the rails after cutting back hasn't adjusted either they can't find workers because they spent years firing people and it is not like those former employees are waiting around autos once robust industry is endless pain obviously retail hasn't made up for it amazon only needs to hire so many people thanks wage inflation isn't much of a problem, why are we so worried about it we are afraid of the federal reserve. fed chief jerome pal told us we

need to start worrying when i look at these numbers, the only conclusions is that the feds need to cool it with the rhetoric and the rate hikes. look if the fed could create new truckers out of thin air the same way they can create money, we would have little inflation these numbers make me think he could send us into a severe slow down maybe that's what he wants but if that is the case, people are right to be worried. we could be in for decent fourth quarter, if not, the fed mandated slow down will soon be upon us. how about steve in washington?

. >> caller: thank you for all you do my question is on new residential. i was worried because the dividend yield is pretty high. kind of in the red zone that you worry about. i was wondering if that is safe. >> when i see that 11%, that tends to be that you will make as much, you will make in the dividend in what you lose in the capital stream no, i don't want to be in that one. i don't like the ones where i understand understand what they are doing with the money lou in florida. >> caller: mr. jim, thanks for taking my call. >> thank you for calling. >> caller: this is the greatest show on earth. it is barnum and bailey circus only the baby boomers remember that one >> i get you. >> caller: my stock is petmed

express. it has been cut in half. i don't know if it is small cap, interest rate hikes or just out of favor i don't know what is going on. >> it is out of favor, but remember, we favor others that are much higher quality. at this stage, it is key you have to have quality going for you. if you don't, you are going to end up losing in multiple ways if rates have peaked here, then we could fair okay in the fourth quarter. if not, i worry the feds are the ones sending us into a recession. instead of scrolling power rankings, why not rack up dollars. zillow, helping its users to find a place to call home.

but down is a medical marijuana company helping 80,000 patients in florida. what it can tell us about the overall cannabis space that continues to heat up so stay with cramer.

as much as it pains to me, talking about the nfl after the eagles lost. investors could learn a lot in the way we analyze sports in this country if you want to make a bet on a football game, you don't look at the standings, you look at the power rankings the power rankings are dynamic,

live, who is playing the best at any given time it is a useful tool and worth applying it to the stock market too. the standings at the minute may have standing powers we are doing this all week, analyzing the best performers in each group and doing it for reality let's start with the communication services power rankings first i need to explain what the heck it means. last year, they decided to create a new industry standard the change only went into effect a week and a half ago. includes everything from phone companies, to the cable companies to tv companies. who are the best performers in

this hodgepodge sector netflix is up 82%. discovery in second. trip advisor in third. and century league breaking up and getting a bid. they are followed by a fair of video game companies with twitter in the middle. facebook is one of the worst performers these numbers are more like a football team's records after a couple of games. so what do the cramer power rankings look like for the communication sector i don't mind doing it. number one is not netflix, it is

disney even though it is only up 8% for the year you need to remember this company is in the midst of a major transformation they won the bidding war for fox entertainment assets and then lost it for sky. stock will be selling its minority steak in sky. now that all of the deal makings distractions are behind them, i love the way things are set up for disney disney the king of kings the company will need to take on a lot less debt to seal the deal for ages, this stock has been held back. disney has made a major push

into subscription based online streaming. i think that he is directed consumer offerings could be huge here let's not forget between star wars and marvel comics, they have incredibly lucrative film properties i have been recommending disney from the beginning of the show you can join along by joining the actual owners.com club very rare that you see this stock down this much notice how it held up this tay in the onslaught one of the big turn arounds today. number two is alphabet now alphabet is only up nearly 10% for the year it sold off so hard in the last

few months, it has been almost in oblivion. the whole online media group has been hammered relentlessly i think that is a mistake in judgment by the marketplace. alphabet has done a better job in preventing its platform from being abused by bad actors and alphabet's core system is in better shape people seem to have forgotten that fact. if google were just search and youtube, the stock would still be up 20% earnings good growth, of course you have got this other bet division,

collection now you are basically getting these for free in short, the pull backs and alphabet giving you a terrific buying opportunity third, you know we have to have a video game and i am picking 12 take two interactive software. take two has always been driven by huge releases like grand theft auto one of the most anticipated games of the year. they are great at squeezing values of these titles all of these other sport franchises and of course the stock got clobbered today. nearly, 25 times next year's earning's estimates. i think this one is a steal. especially ahead of this western red dead

using a lot of meg i understand. fourth is via com. has been a real bow wow long-term. the stock has been rebounding and up more than 20% from the june lows. the latest mission impossible and the low budget blockbuster a quiet place. took over less than a two years ago, he has been a cost cutter and doing everything in his power to monetize the company's most valuable franchises i am talking about the new jack ry ryan at this point, viacom can do fine on its own.

finally, i think netflix longs inco -- belongs in the top five. still down 80 points from the highs. i love the business model. i believe management can get the subscriber growth back on track. netflix is in the show me mode which is why it is number five despite being the best performer. these are power rankings when it comes to the communication, my top five players, disney, alphabet, take two, viacom and netflix. nate in pennsylvania >> caller: hey, professor camer, this is nate from philadelphia i am calling about the company

ordc they do machine communication. they are going to do satellite services i want to see your take on the company. >> it is wireless messaging, when i see how little facebook can make on wireless messaging, i am not going to go down the food chain and recommend it. i'm sorry. the take away is these are my top five players and they are worth a second look even though they are not in the order of who has been winning this year much more "mad money" this year. what is happening with zillow. the man for cannabis place heating up i am talking to a speculative company.

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i'm going to let you in on a little secret. you know why i am always stressing the importance of good management, 80% of running a company is just not screwing up.

if they just sat on their hands, they would be fine how hard is it to do nothing apparently it is harder than it looks mu looks. i want you to consider the case of zillow. market darling to total dog in a matter of months they provide users with all kinds of information about home values and then sell ads to real estate agents. firing on all cylinders. zillow and its ram bunk shous

ceo. it only takes one big mistake in selling your stock in free fall. in april, zillow decided to get into the business of buying and selling homes. they figured this was the moment to bet big on housing. right when interest rates are rising right when the housing stocks keep getting hammered because wall street believes the industry is doomed it didn't help that lennar just caught a pause in the housing market just last year. in this environment, zillow got the idea that it is a good time to start flipping houses in retrospect, it was pure uberous. the consensus was the business had a lot of room to grow.

seems very low given that zillow is more than 60% of where consumers go to research real estate at least from the outside, it seemed the company had no reason to change. with more markets to come in the future, it was a radical shift in the business model. running an online marketplace to actually buying homes and participating in that marketplace. as deutsche bank figured out, the timing is terrible in april, the housing market was still doing fine raskoff was confident in his

strategy he says they only plan to sit on the homes for naineties days at time in response, the stock got decked losing 7% of its value in a single day but zillow had just pre announced a spectacular its results. the stock rebounded. and when we last spoke with spencer raskoff back in may, he argued or amazon move into the web services business. i see where he is coming from. i felt he was dismissive the stock continued to rally over the summer we got new announcements, telling us they would be expanding its flipping home business. it was a bit of a disaster

the company delivered a modest revenue. they slashed their full year forecast for sales and earnings projections. this looks especially bad as zillow just boastfully raised numbers in april not looking good the company also bought mortgage lenders of america not only are they flipping houses they are going to be mortgage originator. the stock dropped 16%. it has been going down ever since. now even if this was the perfect time to start flipping houses, it still would have caused a sell off investors don't want an interest rate company to own homes. in short, it is not what the

shareholder base signed up for if they wanted direct housing exposure, they would have bought a home builder the real tragedy here, the thing i can barely get my head around is this is a terrible time to start flipping houses. just last week, the ceo of lennar talked about a pause. it would be money management malpractice. the coo -- saying the local housing market froze remember, zillow is about to start flipping houses in denver. this had been the hottest housing market maybe in the country for years?

but been cooling rapidly in the next few months. denver could becoming the worst housing markets in the country that make it is hard to take management seriously zillow announced it was going to flip houses in denver on august 1 that sure doesn't look like a great call let me give you the bottom line. it drives me nuts when a great company makes an unforced error. zillow was in fantastic shape six months ago then they decided to move into a totally new, totally risky business in what may be the worst possible time. and the stock cratered i like spencer raskoff, but i can't recommend the stock here

uberous is not investable. "mad money" is back after the break. i think we should do that meeting tomorrow. well wait. what did you think 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 lead with digital. get ready, because we're helping leading companies ♪ to err is human. to anticipate is lexus. experience the lexus rx with advanced safety standard.

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it is time it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire you tell me the name of the stock. 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 round on cramer's "mad money." let's start with joe. >> caller: booyah jimmy. i have a question on resorts i feel like i am in a holding pattern. >> the stock isn't that bad. let's get to phil in new jersey. >> caller: booyah. how are you my friend. calling on mastercard. i bought the stock about two years ago and i am going to have to pain with it. >> let's not be too hard on

ourselves stock up 32% there is a program, out of fin tech and into the banks this is money sloshing around. i wanted to go to travel trust and tell the club members we should be talking about mastercard joe in new york. >> caller: booyah. i am wondering about bybr. >> i look the cyber security stocks i think you are picking up at a good level let's go to efron in california. >> caller: booyah. how are you? >> how can i help? >> caller: expecting on down days for today i have three dogs and i don't

know what i would do. >> we are going to get another rescue dogs. because it is unbelievable how can i help >> caller: i am calling about irobot. >> it could a big downgrade today. i thank you about your comments today. scott in florida. >> caller: i am calling on a timeshare company vac. >> as rates go up, people buy fewer timeshare. i think the stock is oversold. if it is a rate play, and rates go higher, you are not going to make any money here. george in new york. >> caller: booyah to you thanks for the advice and taking my call. i am wondering how you feel

about therapeutics md. >> i have always liked them. this is a hormone replacement therapy for women. candidly, it has done nothing. i continue to like it because it is a good spec susan in north carolina. >> caller: hi. how are you? >> good. how are you? >> caller: fine, thanks. trying to get information on dell stock i understand it is supposed to be going public again. >> it is true. and i have to defer to my colleague that did a very good report that included rosy p projections. if you could buy five points down, it would be an exceptional buy. barbra in new york. >> caller: thank you for taking my car i have a question on edwards

life science i notice it is going steadily down. >> it doesn't matter all of these high growth device stocks that have been so hot are now cooling. that's an opportunity. don't run from, go towards and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade td ameritrade lets you trade 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. ♪

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you know if the marijuana stock -- i think it is worth formalizing ourselves with this stuff. which brings me to the first and largest medical license company in the state of florida. trulieve this is the courses the pure speculative stock. use your discretionary mad money. it is important to understand the power of the industry. we need companies like this one to explain it. let's check in with ms. rivers

i want to understand why do your companies come in. how is it helping. >> we service more than 80,000 patients in the state of florida. we are required to cultivate, to produce, and manufacture and also to distribute across the state of florida so we offer 90 different products everything from oils, tinctures, flower and vapable formats. >> doctors may send patients to your store, for back pain, for head pain, for sleep medical uses are big. >> so in florida there are ten identifiable conditions. ptsd is a large category for us.

especially in florida because we have a large veteran population. in addition you have aids, cancer, seizure conditions and so forth and there is light kinder class if you have a severe anxiety disorder, you are able to be a patient in florida. >> these are all indications that some people in this country, some doctors, have been given opioids too. >> we are seeing a huge transition that is one of our initiatives in front of the legislature to introduce policy, instead of only having opioids as an option, why not legal cannabis the number of opioid prescription reduces dramatically we know from first hand true stories which we have on our website every tuesday, a number

of our patients are transitions from opioids very effectively. it is a safer alternative. >> can you go elsewhere? >> absolutely. we are looking to go elsewhere >> i saw your corporate structure, you have truleive cannabis that parent company can host other states. >> absolutely. and one last thing you can't be a reverse take-over with a penny stock which was a mining company that makes me nervous because you are not a mainiining compan. >> we mine for better health. >> as you know, there are complications with being a cannabis company in the united

states and having primary ongs in the united states, so an rto was the way to go. and we needed to make sure that company was clean and limited liabilities and we are comfortable that is a clean shell. >> that is kim river, ceo of trulieve "mad money" back after the break. the meeting of the executive finance committee is now in session. and... adjourned. business loans for eligible card members up to fifty thousand dollars, decided in as little as 60 seconds.

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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] tonight an all new "american greed" a group of teens starting bringing in huge amounts of cash ppg after the close, an incredibly bad 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

narrator: in this episode of "american greed"... vitaly borker rules an $18 million eyewear empire hawking fake luxury designs online. there is no crime that i've ever come across where you can make this much money and face such little risk. everybody wants something designer, something name brand for cheap. he had ray-ban, prada, gucci, chanel. narrator: customers think they're scoring high-end bargains. instead, they're getting hustled with bogus brands and violent threats when they dare to question vitaly borker. he just went nuts --