>> lions gate. he bought i buy. >> boom. >> bank of america be in heaven. >> friday the banks can't rl ay sell the xlf. >> the twitter quiet us. see you back here at 5:00. "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. 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 trying to make you some money my job is not only to entertain but to teach and educate you so call me at 1800-300 cnbc or tweet me @jimcramer. you have to search far and wise as someone who was as bullish as i was. sometimes we need to step back

after day that the dow lost 56 points, the s&p declined and the nasdaq inched up 0.03% i'm starting to get a tad concerned about the health of more and more industries here the universe of potential winners feels like it's getting smaller. now do not get me wrong. i'm saying this right up front i am not saying you should sell everything the only time i ever did thauz with in early october of 2008. sell sell sell when i told you to sell everything that you needed in the next five years because the financial crisis was going to get worse before it got better what's happening now is nothing like what happened back then if you have been saving up for your retirement by putting money in the s&p 500 index fund something that everybody should do, you don't need to touch that position keep putting money in over time. that's not something you try to trade. extremely long term investment when it comes to a number of individual stocks things have gotten a lot more risky. what's the problem we have been talking about the fed and interest rates a lot

lately on "mad money" and with good reason. for many years, you didn't really need to worry that much about the federal reserve particularly under janet yellen. back then when it came to admittedly much needed rate hikes, because rates were too low versus the health of the any you knew they wouldn't be raised willy-nilly. it wouldn't go up with your eyes closed if the economy slowed down too much they put the rate hikes on hold what's called -- that's called reasonable that policy was great also for the stock market that's not why i liked it, but it was great interest rates were appreciably lower back then so stocks had much less competition for the bond market. last week jerome powell threw away the data dependent playbook and started to explain how it was important for the fed to keep raising rates regardless because the economy was so strong and to overshoot in order to cool down the economy that's not the talk endearing him to the president, and he

didn't like how quickly the fed was raising rates. he said the rate hikes are coming too fast. something i have been saying for a week now i know keeping inflation contained is part of powell's job. but when he talks about overshooting that's like saying he wants to slam the brakes on the economy rather than gently tapping the brakes because it doesn't matter how strong the economy is. it will -- it can handle anything it doesn't matter. that's wrong i don't like this view i don't like it any more than the president does when i hear the fed will tighten until the cows come home it makes me think the cows are headed to the slaughterhouse so i grow concerned. powell's game plan sounds like what ben bernanke did up to the great recession. tightening on autopilot with no regard for the reality of the situation. it's not just the financial crisis you have seen this story over and over again, lock step rate hikes causes an economic

slowdown it almost never has a happy ending, something that the business side of president trump knows all too well now, all day today i got the vibe that i'm supposed to be dead wrong on this, that the economy is so strong that i'm totally off the reservation. but let me say this about the reservation. i don't take my cue from the fed or the data. i don't actually have that much regard for top down macro data about the whole economy and even including the fed's data i'm known as a bottoms up guy, i listen to the individual companies and sop up what they tell me like a sponge. i speak to the ceos more than anyone else in the media world i take what they tell me and i piece it together into the mosaic about the whole country that's my job. here's what i know what i hear. these ceos have gotten worried they weren't earlier now they are they see many things slowing, some rather dramatically we heard from biggest home builder there's a slowdown in

the housing. i don't like what i'm hearing about loan growth. i bet we'll be even more concerned about it when the banks start reporting on friday. that could impact the whole construction industry. which is a lot of jobs i don't like how the airline stocks are trading because they're being squeezed by higher fuel costs and looks like they can't pass them on there's a sense that the data center may actually be slowing now something i disagree with, but i can't ignore the chatter one of my favorite bellwethers the stock of fedex is down another 2% today i'm appalled at how terribly the liner board stocks trade because there's too much supply and not enough demand. if you have something to ship put it in the corrugated stock they take out their 52 weeks in violent fashion and many chemical stocks are getting annihilated here chemicals and liner board are

highly accurate forecasters of the future and then last night we got the real punch to the kisser ppg preannounced it's going to miss the quarter big time because this company that makes so many paints and coatings for luxury cars sees softening demand everywhere. i was assuaged a bit that phil lebeau said as long as consumer confidence is high we should put up good car numbers or vehicles. but the stocks fell apart today off that ppg preannouncement in situations like this portfolio managers here's what they do, and then they ask questions later. ford and gm hit new 52 week lows, not reassuring many saw their stocks get pummelled from dawn to dusk which means full circle back to the fed. if all of these industries are having issues, if ppg which we learned is a big position of the nelson partners, if they are to be believed is there's no reason

not to, then what the heck is the fed doing with the autopilot nonsense how can the central bankers talk about the strength of the any without you know actually getting their hands dirty and talking to ceos across a host of different industries i can tell you these executives are plenty worried that the fed has stopped doing its own checks again, this is not a -- they know nothing -- moment like 11 years ago where the fed was dead wrong. they know nothing! about the economy. i had to shout it from the rooftops when bernanke got it wrong, it almost destroyed the financial system and powell is making the same mistake we won't get an actual recession but the universe of the companies doing well are growing smaller. i'm not here to be an economist but here to help you make some money and preserve your capital. i wouldn't be concerned if not for the trade war against china. i think the president is justified to governor at the chinese for years and years of trading abuse. but context matters. it's one thing to have a trade

war when the world economy is on fire, something different if the world economy is slowing something the imf told us last night when it cut the global forecast down from this year to next i thought that was a wake-up call what's strong now, employment, may not be quite so strong six months from now. oh, i'm worried. again, i'm not turning against the whole stock market there's still plenty of areas to make money and starbucks rallied off the news that bill ackman took a major stake in the company. mcdonald's doing well. as for many of the drug company stocks but that plays to my fears. those are the stocks that do well when the fed overshoots and the economy slows down something that chairman powell says is a real possibility the overshooting that is the bottom line -- call me a little cautious. i think we can go higher but the stocks taking us higher are the wrong stocks if you believe the economy is in good shape. they're the right stocks if you believe that right and we could have a fed mandated slowdown i sure hope i'm wrong but on a

day like this where we get some dire news from ppg, i'm feeling right as rain. brian in texas, brian. >> caller: booyah, jim. >> booyah, brian >> caller: my question is about gg doll corps, there were some protesters that blocked the mine and could have hurt production the stock dropped by almost 30% and with the market going the way it is, could this be where the stock turns around >> you know what i'm so fed up with the gold stocks i like gold. i like gld i'm a believer in gold i think it's a good diversifications but they have let me down and i feel awful about recommending them. the stocks that leading us higher aren't the stocks that should be going higher if the economy is really as strong as the fed and its acolytes are telling us so right now, i want to be a little more cautious it's okay. "mad money" tonight, my power rankings have gotten started how does amazon stock up

hey, there's one i like. is there ways to rate proof your portfolio? and it's considered posture -- and the shares developed the most but it recovered after hours. what does the move in ppg mean i'm giving you my take so stick 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 miss something, head to madmoney.cnbc.com.

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the competition right now at the very moment. in stock market terms it's like your record. it's great to own something for the first nine months of the year so in the cramer power rankings we judge them by where we think they're going, not where they have been. last time we started with the communications services cohort phone carriers, media plays so i'm going to rank a couple more starting with the consumer discretionary sector that's just wall street's speak for the restaurants, retailers and many of the suppliers like the power companies. now the consumer discretionary group has had a good year in 2018 when the government's cutting taxes and the economy is booming, at least on corporations on people that live in red states the retailers around the restaurants are going to outperform. some got hard hit in the sell-off so as we head into the end of the year which the

discretionary names can hold up that includes some discretionaries? why don't we look up the top performers even if they want to necessarily keep working bizarrely enough the top performer isn't amazon, but advanced auto parts up 69% amazon is in second, up 60%. resurgent chipotle not too distant third. then tjx, o'reilly automotive, under armour, target, macy's, kohl's nordstrom, nike, ralph lauren some restaurants, some chains a lot of department stores off price plays, the usual so where do these winners stand for the consumer discretionary space? we have to think bigger and longer term. amazon may be the second best performer it is number one in the power rankings how could the retail be anything

else you're getting a rare buying opportunity here amazon dominates every retail market they get into their prime subscription service is essential the web service division is unparalleled they're making more and more from selling online advertising. did you know that amazon is the number three player in internet advertising, just like web services did a few years ago the ad business snuck up on investors. you can place an ad where and when the customer is looking to make a purchase. hard to beat yet the stock has pulled back $180 from the recent highs and historically when amazon sells off it's turned out to be a buying opportunity every single time. now, maybe this time will be different. but i doubt it not only is amazon continuing to have terrific sales growth but the company has finally started to deliver earnings per share too. for the last four quarters in a row, they have earned much more than anybody expected. last time it was five bucks and

chain and it was always that amazon could turn on the profitability spigot whenever they wanted to it just made more sense for the company to continue to spend the money it needs for growth opportunities. that strategy worked i'm calling it a gift. second in the consumer discretionary power rankings txj. the parent of marshall's and home goods although i like them all. i was just in tj maxx the other day. i recommended this stock last week i like it more than it's pulled back from the recent highs for those of you who don't remember it belongs to the one retail category that's immunized against amazon that's why i have liked it for so long when department stores are so desperate to get rid of the seasonable inventory, they sell it to tjx for a pittance and sells it to you. the whole model ends up creating

a bit of a treasure hunt experience like the simpson's when marge finds the suit at the discount store. in the latest quarter, tjx had a 6% increase in the same store sales. they're coining money here and i bet the premier off price chain will have a good holiday season. how about, kohl's, the second best performing department store stock. up 31% for the year. why kohl's over macy's or nordstrom? we have been buying this for the charitable trust you can join the club and i'll tell you what, you want some traditional department store exposure going into the holidays this year. between the strong job market and the job cuts, i think retail is about to have a merry christmas. but again, why kohl's? because the value based chain has been making major self-improvement efforts for example, they have gotten better at inventory management,

bolstering the growth margin and they have a bunch of new initiatives like an actual partnership with amazon with the death star they have a pilot pilot that you can buy from the online behemoth and return via kohl's. you can generate traffic given you need to walk through what's known as the racetrack of the store to reach the place where you can return your unboxed amazon wares the analyst are forecasting flat same store sales and the stock has pulled back 11 bucks from the highs. remember, we're worried about a slowdown in the economy. i think you should call me a buyer. next up, fourth, vf corps, yes, the parent of jan sports as i said before i think fans alone is a huge opportunity for it at the same time, the company is about to spin off the not so hot jeans business early next year

and last week they announced the sale of the reef sandal business here's what i'm thinking vf corps is pairing back and focusing on the best brands creating a lean mean earnings machine. the transformation will really start to kick in early next year which is why i think vf corp makes so much sense at the beginning of the fourth quarter. i know it's run a lot but changing the stripes in a positive direction number five finally is nike. until last week's big sell-off, they had been on fire. the reason they figured out how to fend off under armour and aski das by rolling out new products and selling them personalizing them even directly to the consumer. business is booming. i like nike's last quarter but the stock has pulled back 5% since then because of the overall market turmoil. i think the dip is worth buying. one more thing it doesn't show up in the power rankings ald at all, but we find out that bill ackman is taking a big position at starbucks i think it would be a mistake to

chase -- after the announcement, but they're a well-run company i think it will have a good fourth quarter but that means you have to look through the uneven third quarter the bottom line -- if you want exposure to the consumer discretionary space going into the end of the year, this is if you're bullish on the economy, my favorites are amazon, which works well in the slowdown tjd and kohl's, vf and then nike in that order. let's go to brandon in pennsylvania brandon. >> caller: booyah from philadelphia, jim. >> good to see you, man. we'll be down there again. we keep going to philadelphia, i love that. how can i help >> caller: i wanted to diversify my meteorologist -- portfolio and i lack any consumer discretionary. as a 22-year-old college student many of my friends are going to casinos now and i figured instead of blowing my money at a casino on roulette or craps that

i could invest in casinos instead. so i wanted your opinion on red rock resort ticker rr and whether you thought it was buy given it has experience with an 8% pull back in the last few days and it's seemingly insulated from the trade war issues going on. >> i can't talk you out of that one. the stock is down a lot. i do and i have been recommending pinnacle entertainment. i'd share with you the antipathy toward owning a casino stock that has a major position in macao. yours doesn't, but red rock is not as good as pinnacle. knowledge is power if you're looking for the best of breed and the consumer discretionary group which is under pressure, look at these picks for the long term. much more "mad money." out of the 32 consumer staple names on the s&p roughly two-thirds are negative territory year to date but are they still winners in the space? something worth owning my power rankings continue plus everyone is worried

about what's next for interest rates, so how should you protect your portfolios because rates are on the line right now. and ppg just painted an ugly picture in the third quarter i'm breaking down their forecast and i'm not happy. stick with cramer. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you...

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♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. as we go through each sector laying out the cramer power rankings to show you which stocks i like most, as we head into the end of the year some groups will look a lot better than others. the cohort had been on fire until the economy seemed to let's say run into the wall i think because rates are going high too fast. but then the next sector, the consumer staple space is different. we're talking about packaged

goods, stuff that's a necessity. think of toothpaste to toilet paper and food and beverage. two-thirds of the consumer staple stocks are down for the year they have been hit with head wind after head wind, stronger dollar and now higher interest rates. which makes their bountiful dividends look a lot less enticing compared to bonds a theme i'll hit on your -- over your head again and again so you know what's going on underneath the market as i keep tilling you the tape -- telling you the staples tend to get crushed when the rates are rising more on that later but this is a mighty big but if the fed tips the economy into the slowdown, what i'm concerned about, well, you will feel very foolish if you don't own any of the stocks the staples are the one of the few groups that tends to outperform when the economy gets weaker because the companies do not need a healthy economy to make their numbers you don't stop eats because the unemployment rate ticks higher,

do you it's a very real possibility given the fed's recent language about overshooting when it's trying to stop inflation this is why i'm preaching the virtues of diversification al even if you don't believe in the slowdown thesis you should own one stock that can work if that thesis proves to be true. that means you might want some exposure to a group that nobody likes. to the consumer staples. so what are the power rankings for this beaten down group when you look at the names that have been going higher it's a short list only seven of them have double digit gains with mccormick leading the pack up 33% thanks to very smart acquisition. next there's adm arthur daniels mid land, they make tons of corn syrup, then we have costco and staples are most of what they sell. followed by the first soft goods name, church and dwight which is up 18% rounding of it the top five is

cisco, which makes more -- much more exposed to the restaurant in the space a lot of the strength comes from the fact that trian is working to make it better. that's nelson pell is a's fund which ones do we like the most my top ranked staple stock didn't make the top ten in terms of the year to date performance. remember, these are power rankings i'm talking about consolation brands, best known as the u.s. distributor of corona and victoria is hot lately consolation have been a volatile trader ever since they decided to make a major stake in the canadian growth and that's repeal of the prohibition in canada. in fact, the stock is down slightly year to date. how the heck does constellation end up at the number one spot of my power rankings? these rankings are supposed to reflect where they're going, not where it'sbeen after they doubled down on canopy, a lot said this was a

bad sign why would they put so much into marijuana if the beer business was in good shape? it didn't help when the company reported a couple of less than stellar quarters however, they put their concerns to rest and the stock exploded higher turns out corona is doing great and while the marijuana stocks have been frothy and too hot for this guy, the farm bill could legalize cbd of oil at the federal level and constellation would instantly be able to get into that business i think the stock is ridiculously cheap given that kicker now i'm speaking at constellation's president about the can thats by -- cannabis business i'll report back on monday before canada officially legalizes pot later on in the week it may be a once in a lifetime opportunity but remember most of the things that are in there are way too risky. we're trying to stay with the high end second, costco costco is one of my favorite

places to shop but it's not like many of the other consumer staples names. this is a big box retail we are the terrific business model. you pay a fee to join the club and get the best deals basically, it's a subscription service. we are in a subscription economy and as i have said repeatedly joining costco is one of the few spending decisions that i regard as a total no brainer. lisa and i have been fighting about taking a big costco trip this weekend because the eagles play thursday and that means i have sunday to go to costco. the stock has powered 20% higher this year, thanks to the string of strong sales numbers. however, lately costco has become a bit of a battleground again with the stock pulling back in recent weeks and then costco reported last week this the -- and the stock got clobbered, why because the company said they when they file their annual report, they expect to report on weakness related to information technology controls. basically, they're having a tech

problem that impacts the financial reporting. but when you drill down and look at the numbers, you'll find a nice uptick in membership renewal rates and sales per member all of which were up versus the previous quarter i don't think the i.t. issue which didn't cause a restatement which is what i most fear will be a big deal and now they're down 9% from the september highs. some people think it's a big head and shoulders pattern now i point it out bought it's the chatter. third, mccormick, the best performer in the group they're a top dog in the condiment business and last year they bought frapg's hot sauce. the stock has given you some monster gains since the ceo has paid us a visit last year to explain the acquisition, convincing us of its worth i bet it's got more room to run. number four, many people will be familiar with this from our

constant interviews with this fantastic ceo and that's clorox. this is the only typical staples player on the list they're a good company with a solid 2.6% yield this is the kind of stock you buy when you're worried about the fed mandated economic slowdown that i am so concerned about that i have talked about for the last week. but why clorox rather than say two others that are bigger, procter & gamble or kimberly-clark call it the survival of the fittest, they have cut the costs and as a result the stock has held up better than the other consumer package goods plays and they're trying to raise the price and that will give them nascent growth for 2018. if you want to protect against the slowdown, i think you can consider owning some clorox. fifth and finally we've got one that i have tried to proselytize

about it because it's so well run, estee lauder. this is an outlier for a lot of us, makeup is a necessity these days, while the stock is up 10% for the year it's held back by worries about a major distributor bon-ton stores and the fact they get 12% of the sales from slowing china. even as estee lauder led by the fantastic frieda delivers the fantastic results the stock hasn't been getting the credit it deserves. maybe that's the opportunity it's been weak of late because the last quarter was not the usual blowout. bottom line, you need some exposure to the staples because of the sake of diversification however, stick with the atypical one like constellation brands, costco, mccormick and estee lauder rather than the standard bond market alternative like clorox "mad money" is back after the break.

last week the federal reserve made it very clear that they're willing to overshoot when it comes to raising interest rates basically telling the world that they're going to tame inflation, whatever the cost.

in response we got that hideous sell-off that lasted until yesterday's intraday bounce and then resumed with the industrials today. where do we go from here look, there's no doubt that long term interest rates the ones that the fed doesn't really control are in the driver's seat here the question is where are those rates actually headed? like i told you last night this market has three camps three different money managers with different world views and they put money behind it you believe that powell is doing the right thing and thinking the lock step tightening will push rates back down. then you have the inflation niece thats who believe that inflation is too low and in their view the fed hasn't done enough then the third group, that believes the rates have peaked already and they're ready to go back down. so i think you need a plan for each camp which is why tonight we're taking more of an empirical approach here on "mad money. we are going off the charts with bob moreno he happens to be my colleague at

real money.com, the paid site of street.com we want to get a sense of what can happen under the three different scenarios so you know what the camp followers are thinking first, what if the recessionistas are right and the economy is about to go into the rut. that's what i'm worried about. check out the weekly chart that plots the yield of 20 year treasury bonds against the performance of the s&p consumer staples etf. the xlp. now, if you zoom out you can see over the last 20 years long term treasury yields have gone steadily lower so you can see this is the 20 year that's the long term treasury yields of at the same time, the consumer staples have been perfect inverse, in other words, opposite, inverse correlation when the soft goods stocks go higher soft goods, there's the treasuries especially since the great recession got going this is

really been definitely, definitely -- let's just say stark. this is why i'm always telling you that the consumer package good players are bond market equivalents. their high dividends means that the bonds are the competition. some want a nice, steady yield with relatively low risk they would rather get that from bonds right, because they don't have a lot of risk and treasuries by the way are risk free but for years now bonds haven't paid out enough to be an option. so the staples and treasuries have been in opposition. but moreno points out the negative correlation really accelerated in 20111 when the yield dropped below 3% suddenly the consumer staples caught fire in a major way the staples index has more than doubled in the last seven years because for more most of the time the bond market competition was nonexistent. i have told you how this dynamic works before but it's still kind of stunning to see it laid out in visual form like this, isn't it

i mean, to me when i saw this we have to do this off the charts this is really, really cool. anyway, now moreno is a concern because the 20 year cost back above the 3% line. you can see that sure enough when that happens the staples started to get slammed. although in the past few days they have rebounded somewhat if you think rates are headed higher moreno's chart should leave you in no doubt that the consumer staples will get poleaxed but what if they're right about the slowdown which pushes the rates back down? if long term rates go back below 3% then the consumer staples and the utilities all the slow and steady bond market alternative stocks can go higher again and when it comes to the staples, moreno thinks you should look at the daily chart of a stock that i won't recommend because it's a tobacco stock. phillip morris which sells marlboros and other brands overseas this is pm

philip morris has 5.4% yield so it's exactly the kind of bond market alternative stock we're talking about here moreno said that it's been stuck between 74 and 76 for the past few months kind of in a range phillip morris has been forming a -- it's forming a an inverse head and shoulders formation like an upside down person this is one of the most reliably bullish pattern in the chart book well, then there's the moving average convergence to divergence, the oscillator up top. it's a powerful momentum indicator that helps technicians detect the changes in the trajectory before they happen. if it's coincidence what good would it do? it's made a bullish crossover, last month it's been roaring higher and now a positive development

plus we talked to the chacon money flow which measures the buying and selling pressure. it was very positive in august you can see this and stayed that way for a while and moreno thinks there's a lot of buying interest in phillip morris international we have this, we do this and we get a positive story. now, back in april the stock gap down from 96 to 90 you can see this it's currently trading at just under 85 right here. if long term interest rates start going lower, moreno believes that phillip morris can rebound back to 90 and fill in this gap fill in the gap that would take it up to here. and perhaps even higher. but remember that's a mighty big if by the way the same goes for most of the other bond market equivalents from the consumer package good stocks to the utilities. these will catch fire if the economy slows and the bond yields go back down. that's what i was afraid of today when saw mcdonald's going higher

they're not the right kind of stocks but what if they're right and long term rates keep rising? well, then the banks are one of the few groups that wins because when longer term rates go higher, the financials can charge you more for the loans. which they have to determine what the bank pays you for your deposits so check out the daily chart of citigroup, letter "c." citi has been making higher highs and higher lows since june, so you see this pattern. with the action forming a rising channel and at the same time, the short term 50 day moving average which is the red just crossed above the long term 200 day moving average, the blue this is like the holy grail of technical analysis they call it the golden cross. it's a sign that the stock is headed higher. still, it's currently cooling the heels in the low 70s it got up here and then it's marking time right there

but if long term rates keep climbing, resistance will be broken and the stock will roar the only real concern -- the accumulation distribution line which tells you whether big institutions are buying or selling. it's gone lower. moreno thinks that will change if rates continue to go higher i don't have that level of conviction frankly what if long term rates stabilize here if that's the case, moreno says that the home builders wow, talk about a down and out group they can make a comeback. the stocks have been stinking up the joint. they're down 20% for the year because housing gets crushed when mortgage rates are too expensive. you have lin ard talking about a pause last week. denver once the hottest market in the country is freezing over. if rates stabilize, moreno

thinks that wall street can circle back to the home builders because it means the worst fees may not materialize. in that case which one does he like well, he takes and looks at the weekly chart of dr horton. which has been one of the better performing groups. it's right above the floor of support. this is amazing because i couldn't find a single good thing about this it was retested last week and if it stabilized he can see horton rallying back to 46. here's the bottom line the charts as interpreted by bob moreno suggest to buy the phillip morris stocks if bond yields go higher and buy the banks like citi if they go higher and consider owning a home builder if they stabilize right here remember, we own citi for my charitable trust which you can follow along by joining the club and the big bank reports on friday morning "mad money" is back after the break.

>> announcer: lightning round is sponsored by td ameritrade >> it is time. it is time for the lightning round.

sell sell sell sell sell sell sell - [ buzzer ] then it's over are you ready, skeedaddy kim? >> caller: hi, jim, kim from arizona. i was just calling to see what your thoughts are on - >> if you remember cigna 30 points came on the show and just explained that and i said buy buy buy buy. well, it -- oh, come on. let's go to carmen in connecticut. carmen >> caller: hey, jim, how are you? >> i'm good. how about you? >> caller: good. thank you for taking my call here's my question my grandson is graduating high school in june and we were thinking -- my husband and i were thinking about starting a stock portfolio as our gift to him. i had lockheed martin in mine -- >> don't do lockheed martin but do raytheon.

chris in minnesota >> caller: hey, i have a high margin/high growth stock called am arivet. >> i don't know it i have to come back. it is a small cap company i'm not sure about let's take one more. let's go to michael in florida michael. >> caller: jimbo, big booyah from naples, florida. >> good place. what's up? >> caller: hey, jim, i'm calling about ticker symbol -- >> we have loved the guys since the beginning of the show. i think that device business they're good and that, ladies and gentlemen, is the conclusion of the lightning round. >> lightning round is sponsored by td ameritrade what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool?

eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade monitor their blood glucose every day. which means they have to stop. and stick their fingers. repeatedly. today, life-changing technology from abbott makes it possible to track glucose levels. without drawing a drop of blood, again and again. the most personal technology,

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we need to talk about ppg. especially chemical company, a huge maker of coatings really bush whacked us last night boo! which is why the stock plunged 10% today in regular trading ppg is important first there's the obvious thing. the company put out a note yesterday morning that talked about escalating costs for materials, freight and labor not so hot i know. but then it released the whole thing under the simple headline, quote, ppg announces global price increase for automotive oem coatings end quote that headline in the company press release never talked about demand except in the following

phrase quote, this price increase is vital to sustaining our history of innovating these next generation solutions and enhancing our ability to continue to meet demand. the implication of that statement seemed very clear to me the company could put through all the price increases it needs because the demand for the product is strong. the stock rallied nicely on the news others felt the same way i did but boy, was that ever wrong after the close ppg told us a different story. management says we'll earn 141 to a buck 45 and then for the next quarter they're forecasting a $1.3 and ppg told us that and i quote we saw overall demand in china soften and we're experiencing weaker automotive refinish levels as several of the u.s. and european customers are carrying high inventory levels due to lower end use demand, end quote. oh, man, that's brutal

remember, just that morningnese guys have been talking about the need to continue and meet demand what happened between 8:08 a.m. and 4:49 p.m. when it preannounced that nasty downside view last night, ppg hadn't been hurt as badly as a lot of the other auto suppliers but what's more stunning is how wrong they were about what lay ahead it's been three months since they gave us insight on the last conference call and in wall street terms that's a lifetime ago. still though, that call management expressed a lot of optimism about the auto industry here's what ceo michael mcgarry had to say surprisingly, the oem automotive had a good first half of the year slightly better than expectations and we see no reason why the second half won't continue the only negative there of course is whether or not people were trying to buy ahead of the tariffs so we won't know that just yet, end quote.

could they have been buying ahead and mcgarry didn't know? was his crystal ball that bad question after the tone in the press release and the preannouncement nothing would surprise me about guys one thing is for certain, any company with any exposure to the price of oil not to mention the strong dollar and the rising cost of transportation will be considered to be something that should be held for sale unless proven innocent. that's what these numbers mean it turned whole swathes of the market toxic today and it can be traced back to ppg. the saving grace -- they didn't blame housing or aero space, although the former was dinged when lowe's dropped the olympic brand paints and stains just last february. that was terrible. this week this seems to be about the autos. it's also terrible but that's the really only saving grace that it was about the autos, especially the tariff situation with china has gotten worse. in other words, if you think these numbers are bad just you wait because it can get worse.

i bet a whole host of industrials turn out to be a lot more like ppg than we want which is why i'm so worried about what the fed is doing oh, yes, after the close we found out that nelson peltz took a stake in ppg so let's not think that much is going to change but i don't know what will happen here with pelts and ppg they look forward to a healthy dialogue but i wish its business were healthier stick with cramer. real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. (guard) whacontrolled fury.... freakish intelligence. wicked seduction. these endeavors will rattle your soul... and challenge the contents of your stomach. if that sounds dramatic...

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ally. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. okay, i hope it rallies but hope shouldn't be part of the investing equation i want the fed to not be lock step come on, guys, give us a break the economy is not that strong to be able to handle all of those rate hikes hey, what can i say? there's always a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer i will see you tomorrow!

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ with a product inspired by his daughter. ♪ my name is travis perry. i'm from dothan, alabama, and i have invented a product that allows you to play the guitar instantly. put that finger there, okay. now strum the bottom four. ooh. that hurt your fingers, didn't it?