>> guy >> cute baby. >> super cute. >> you can't tell how big the baby is. >> 19 1/2 inches long. you don' 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. what the bulls need right now more than anything else is for the federal reserve to be proven wrong

the dow declined nasdaq lost. the bull thesis is very simple you have to bet the fed tightens in december. and we may be winning the battle against inflation. let's wait to see what happens instead of committing to three more rate hikes. if they do that, we will get a huge rally to end the year it might be too painful to stick around while we wait for the feds to change course. who the heck has that kind of crystal ball anyway. those are typically not what causes you to tighten. historically betting on the federal reserve to do the right thing when the economy starts slowing. i came out here in the summer of 2007, and ranted that the fed knew nothing i argued that things were going

to get very bad if they didn't cut rates and cut rates aggressively do you know what they did the next time they met, they laughed at me. i have seen those embarrassing transcripts for them i am not okay with our central bankers snickering as they obviously send us over the precipice. again, the current situation is nothing like 2007, where we had just gigantic systemic risk. i think we are looking at a small fed mandated slow down it sure feels like the fed is making the same mistakes he is not going over the data with a fine tooth comb he is not talking to the professionals. he was a private equity guy.

let me tell what you powell would hear if he listened to the buzz he would hear people say we are late in the cycle of economic expansion. late in the cycle. i heard that all day today and week last week it is code for this is as good as it gets i loved the quarter. the growing new deposit base average deposit balances rose $45 billion or 4%. to 1.3 trillion, that is a gigantic number. that is a 6% boost $11.9 billion. the terrific mobile app, there is spin tech for you that is fabulous credit losses are incredibly low. darn thing sells for 11 times this year's earnings what did the stock do in this news

fell nearly 2% because everyone is terrified that the fed is going to slow the economy too fast to the point where any additional money bank of america makes would be offset by a slow down for loans i know people don't believe there won't be a slowdown. i say the economy was so strong. instead of rallying, their stocks have been punished. that is the stock market saying things are going to get worse. i think there is a unanimous verdict on the bank. got completely obliterated and the most international bank, gro citigroup is the one to rally.

you absolutely had to buy, buy i threw boot camp teaching to the treat and we heard many positive ideas we heard things from everything from canopy growth, cannabis is going to legalize this week, wednesday. to facebook, that stock hangs in there. hasn't lost too much advertising. we talk about the cloud kings, including adobe. i think that is going to send up the cloud kings tomorrow i like that the market took the bankruptcy of sears in stride. whirlpool rallied. the price of oil didn't spike despite the stern words for sawed e

saudi arabia i think the chinese market is going to open down again the pain deposit spread to our market you can argue that any of these issues could have caused american stocks to do gown the selling occurred in the closing minutes of the session on the other hand the nasdaq remains right for selling. makes sense. normally a decline of this magnitude would wipe out that whole gain i expect nasdaq to get more of a haircut especially when people are worried about apples business this may be day one of a roll over trust isn't taking action. worst of all is the stocks that went up today. the best performers were the kinds of names you buy if you believe we are indeed headed into a downturn. my number one fear when i looked

at today's action is the rally of the stock of clorox you know i like clorox a lot management is doing a terrific job. but when these kind of packaged goods. that is the market telling you to look out. not just clorox, proctor and gamble rallying. kimberly clark up a buck and a change 1998 and 2007, the fed has made a judgment that its stock is not just to prop up stock. no one, at least not me is saying the fed's job is to put a bid underneath or make stocks go higher if the fed would just listen to what the stock market is saying, should i say screaming, merely in developing data

when you have quality banks like jpmorgan saying they expect housing to decline 10% in 2019, i think you can argue the economy is too hot with a straight face. if i am right that we are late in the business cycle, many stocks will be late to the banks. why not sell everything now? because the bottom line is that people have been selling for weeks. you weren't early if you sell here and the moment the fed changes its view, you will be scrambling to buy stock at prices much higher than they were right now and that's because we may not have that thesis that we're going to have at the end of the cycle. i'm cancelling patience here, oh sure, if you want to raise cash, that's fine, and take gains. i am recommending that members do buying in the weakness as the trust did today.

so i have to share that with you. mike in vermont. >> caller: booyah, professor cramer. >> thank you for giving me ten your >> caller: calling from southern vermont. i want you to know that i watch your show daily. >> thank you very much >> caller: the other day you suggested that square should be elevated to a f.a.n.g stock. i am wondering how you feel about square now that the cfo is leaving. >> first of all, sara is going to a terrific company next door. it is called next door and my wife is on it all the time i think it is fantastic. so yes, i root for her, because she is amazing and second, they have a big bench there. square is doing a lot of interesting things at the

register the stocks come down a lot. is it going to be a f.a.n.g stock, no. i like sara too much she is a good ceo. michael in florida. >> caller: you have been recommending spotify and it is down 20% is this thing going to run from here >> i like spotify. i like spotify i am not deter that they at least paused its offer but spotify is a long-term situation. if you look at it overnight, it is going to drive you crazy. that thing trades so radically i like that subscription business model so much, that i am saying take the pain. if you listen to the stock market, it is saying that might be further long that ain't even

realizes sell now and wait for the fed to change its mind. it is very hard to be that good. i say patience on "mad money" tonight, i am going to tell you which energy company could draft up dollars in an uncertain market the brand behind taco bell and pizza hut is gradually making itself higher year after year. i am going to tell you if young brands has found the strategy of success. don't miss my exclusive with med men. did you see canopy today stick 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

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as far as the stock market is concerned, the world has changed for the worst. ever since the fed made it clear that they are taking away the proverbial punch bowl. as a result stocks have come down hard. with the averages giving up the bulk of the gains for a year the s&p was up more than 10% it is still soggy, that close was bad. we finally had a sedate session today. last week i started rolling out a new series, we looked at stocks in the same way that people look at the nfl power ranking. thanks to my beloved philadelphia eagles, i stupidly played goth over wentz

i want to do the same thing with the stock market we are going over spector by spector. consumer discretion airy ink and discretionary staples. what is next energy even after last week's pullback, crude is up 8% for the year. now, while natural gas has only gained 10% year-to-date, it has caught fire in the past few weeks. and short after multiyear downturn, energy, we have to say it is back crude was selling for $28 a

barrel what is driving this rally, on the one hand the growth has accelerated. and on the other hand, supply hasn't been keeping pace libya is a failed state. nigeria is going through a strike venezuela is falling apart at the same time the president reinstated sanctions on iran and that took production off the table. and while there is a lot of crude sitting in the ground here in the u.s., it is landlocked. and then the saudi arabia. possible assassination of a journalist at the embassy in turkey it has been hammered because of the controversy. if saudi arabia faces sanctions that is good news. as for natural gases, it marches

at its own beat. a month ago natural gases started picking up again in part because of all the infrastructure we have been building to export this stuff has started to come online remember what the guy tells us, he was shannier, he got sacked by carl icahn. hess, used to be a down and outer. up 30% con conco gained and anadarko gained. the refiners have been killing it here. what about going forward what are the best energy stocks according to the power rankings? and yes, we will keep you up on

the power rankings just like they do on the nfl my favorite here is marathon pete when we spoke to ceo gary hemming, he expect his company made a fortune a few months later marathon announced it was an endeavor. making marathon the largest refiner in america and that is huge, people while wall street was skeptical, they have come around. because this industry is on fire the deal closed two weeks ago. and marathon is the undisputed king of the refiners and we will hear more about the newly combined business of marathon's investment day in december you should buy this stock ahead of it. at a time when oil is trending

higher, you want to own the largest refiner in america it sells for ten times the earnings ten times the numbers. that is pretty cheap which should come up because marathon is benefitting from this refinery lands locked oil that it buys and the low prices that really, i don't with aant to say it scrs these guys but that is what happens numbers are too low for marathon pete next up is conocophillips. it is the world's largest pure play as the company has a diverse wide quality of assets with major emphasis on the united states. c conco is well run. and it runs for about $35 a

barrel the last time the company reported management raised its full year capital by half a billion dollars. that is obvious confidence while the stock is running, it is down 10% in the last two weeks. conco right here, a buy. third place, another refiner, valero i prefer marathon, the fact that valero is the second place manufacturing in the industry. basically, we don't have enough refinery capacity worldwide and because these things takes ages to build, do you want a refinery in your backyard, so the refinery shortage could last until 2020 or longer i think it is a bargain. the market has been horrendous and people think it is still going to be horrendous how about eog.

a fracking pioneer they have terrific acres in south texas. and thanks to last week's sell off. i think it is absurd that its stock trades this cheap. especially when it is expected to go at a 29% clip. that is like a tech company. and anadarko would have been my number one pick here except for one thorny issue the problem, on election day colorado is holding a referendum that would ban new drilling in the state. i like the stock enough, you can follow long by joining action owners.com club. the world is a mess and that is great for oil producers and

refiners, i like marathon pete, conocophillips, valero, e off g. and anadarko in that order jack >> caller: so what i am saying i bought the transocean on the slope. are we holding until 19? what do you say? >> it is ridiculous they are not drilling the only place where there are big fines left, is offshore. when are they going to take action i think very, very soon. if you are looking for the best in breed in the energy sector, i got them here are our power rankings. these are all investable, okay much more "mad money" ahead. i am taking a closer look at yum brands to see if they still plump up

your portfolio with cannabis sets to legalize what happens when a manufacturing gets stuck with a triple whammy. stay with cramer who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market!

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now that the dust has started to settle on last week's brutal breakdown, what can you buy at weakness? how about yum brands here is a chain we have liked for ages i have been a big backer of yum. i certainly didn't want anything to do with that. and the stack has worked its way

higher the resilience of yum has been incredible the darn thing keeps chugging. a nice entry point in a stock that is hot. ever since the break up in 2016, i have told you to stick with yum brands over yum china. while the heard in yum has consistently done very well for itself, but that call has been very right in july of last year, i told you yum brands was the better buy. yum china lost 16% we are getting into an honest to good trade war, i doubled down our government is slapping tariffs. sure enough yum brands rallied 5% and yum china down 20% now i am saying they have very

little to do with each other yum brand wins on points end of story an american company that gets 100% of the sales from the prc, i say no thank you the comparison obscures more than it illuminates. at this point, yum is judged on its own merits it is one of the best restaurant chains i follow. look at it like this when yum reported latest resulted in early august, the numbers seem disappointing and that is, the day went on wall street reassessed and realized the company is doing fabulously and that is when the stock has exploded higher. it has not looked back since

what happened? it looked solid. it is hard to find solid analysts were looking for 2%, that is what caused the initial drop downs thanks to the surging margins, the company managed to post a robust eight cent earning beat up off a 74 earning basis. yum has been selling off company owned locations to franchisees in truth, it really wasn't a bad quarter, but it wasn't exactly a great year and it didn't help that yum's guidance for the full year was less than stellar as i mentioned, the stock got hit. by the time the conference call wrapped up, it turned positive and the quarter ended up kick

starting a 10% rally in less than three months. right before the market widely meltdown what was so encouraging? if you looked under the hood, management proved that its plan was working many more of a cash flow in earning story. the company's franchise growth accelerated in the quarter even better, while the same-store sales forecast, it was strong yum added new franchisees. i thought it was supposed to be the slow and steady year ender investors understand the story has new changed. yum has embraced a business

model, and we love that model. remember, we had it with p popeye's too that's why the same-store sales number are more important than the sales force. we expect net new unit growth to be at the high end of our guidance at three or 4%. management expressed confidence in the long-term earning forecast this past quarter makes it early to believe in yum's numbers. i think they can do it the company has multiple ways to win. they will make it up by adding new franchisees. and if for the same reason they become less enthusiastic, they will push a monster buy back

bringing the total repurchase authorization just over 2.3 billion. and they already retired 2% of the shares in the second quarter. to buyback 10% of the shares that is fantastic. the bottom line, yum stocks screamed higher as management made investors believe in the franchise story. i think you are getting a rare pullback in a stock that has been marching steadily higher for years. i would be a buyer remember what i am trying to do in the show. put the light on companies that are doing very, very well. okay, let's go to charles in my home state of new jersey charles. >> caller: great to talk to you. thanks for taking my call. >> thank you. >> caller: i have an observation and a question. >> okay. >> caller: an observation is thank you for mentioning cgc a

week and a half ago. i got into it pretty well, and i enjoyed the ride i got it in the 40s. >> thank you >> caller: thank you i have been invested in the cracker barrel for a long time now. and it seems to be lying around and i read negative things saying they don't expect too much improvement what is your take on that. >> i think they were hurt by labor cost going up and also gasoline i don't have a catalyst and there are other restauranteurs that i really prefer so i don't want to endorse cracker barrel it is too hard a call. but congratulations and thank you for these kind words you made a lot of money. >> i would be a buyer of yum on any additional weakness. that is a sign of strength

this is a rare entry point into a winner that is what i like, buying winner at the apple store weed just bake the biggest i am talking to the ceo of med men. how a little company could offer a key example of what the fed is up against and tonight's edition of the lightning round. stay with cramer

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with canada officially legalizing marijuana, there has been a lot of focused on companies who did well for themselves here in the u.s. we have seen legalization pass state into state. these days nobody bats an eye lash in medical marijuana. which brings me to med men enterprises. these guys have realized there is a market for a high end marijuana experience they have a gorgeous showroom. y it is working. in california where they have a full state level legalization. they exceed those of the apple store. they want to be known as the apple store of marijuana even with the big acquisition of

pharmacan, i think it may be too hot to own i got a chance to check in with adam bierman take a look. adam, huge deal, stock for stock, tell us what it means for med men now that you are much bigger than you were last time you were on. >> we couldn't be more excited about it we look at everything from three buckets. we have the business that we are building which is med men, the industry that we are building which is cannabis and the asset class we are building. we are trying to build an asset class that is accessible. >> they are buying pharmacan

>> what states will you be in after the deal closes versus where you are now. >> 12 states total 66 licensed retail store 13 factories and we have been focused on california, nevada, and new york, and those are the markets where brands will be built. and as we look into expanding our footprint, this allows us to leapfrog the next stage of our growth. >> which are the best markets to be in in this country? >> california, nevada, and negotiatinew york >> talk about california >> it is $11 billion cannabis market you know, california is where brands are built, trends are made california exports its culture, its politics, it exports

everything all over the world. and to be married to an $11 billion opportunity, for it to be in our backyard, that has been our focus at the end of kwcq two. >> will you start reporting same extort sales so we have an idea how each store is doing? >> we have our first earnings call coming in maybe you will call in. >> i will call in. and you are confidence that trajectory is strong. >> it is strong. retail is the place to be because of the defensibility due to the zoning restrictions and the limited numbers of licenses. retail is the permanent note opportunity. >> why does it take so long from when a state votes to have

cannabis legal, and then you start seeing dispensary, what is the hold up? it always seems they just voted and they don't turn on the switch. >> progress takes time what you have seen is that gap between let's go to it working is decreasing exponentially. but look, i wouldn't expect anything to be overnight that is not how our country works. >> maybe we should try to temper the optimism by all the people trying to buy canadian pot companies ahead of october 17. that might not be the wise strategy it might not be the be all and end all day. >> i am not focused on anything short-term and i don't think as the ceo of this company, that would be good form we look at everything in regards to you know, four real

categories and for us, it is team and infrastructure. its assets, balance sheets and investability. we know we will be in the spot we will be in. there are a lot of traders out there buying things ahead. we don't get involved with that. we are in the early innings. and he whe and we are watching, we are watching the birth of an industry. >> i ask everybody in this industry, size of the markets that are disrupted globally by cannabis, what do you think? >> you would know better than me all i know is cannabis, the legalization of cannabis makes the world a safer, happier place. other things that they use to make themselves feel better, they will replace it with

cannabis over time. >> i agree with you. that is adam bierman ceo of medmen "mad money" is back in a minute. every call is different, so the only thing that we can do to make sure that we get there safely, and that we leave that scene safely and go home at night, is train. and we train all the time in the fire service. no matter how much we train, the last thing you want in a disaster is to lose communications. without communications, we have nothing-- people get hurt. when disaster strikes, that is when your communication service can really become your lifeline. ♪ (nicki palmer) we are constantly innovating. from a dedicated lane on our network

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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." starting with jacob in florida. >> caller: what's going on, how with you doing let's get down to it microsoft has been resilient during the sell off. but do we have a stamp of approval to go long? >> this stock has had a monster run. telling members it is fine i have a conference call coming up manuel in illinois.

>> caller: i am talking about utx. >> we need to see the deal closed if they are able to buy it, the stock is going to roar 15 points. how about dave in illinois. >> caller: professor cramer. >> dave. >> caller: hey everett, lisa and i welcome marly. >> he is a real sleeper. what's up? >> caller: recently, medtronics acquired mazar >> i like that deal. what does it tell you, it tells you to buy it, not sell it jason in michigan. >> caller: jimmy c, i am calling from the motor city. honored to speak with you.

ba ba booyah >> i got to get back there what's happening >> caller: i want to give a shout out to my wife amy she is becoming a pilot. >> thank you for serving. >> caller: my stock is raytheon. >> that includes raytheon mentioned by name in the 60-minute interview. anthony in new york. >> caller: hi, jim, thank you for taking my call thank you for all the sanity you bring to an insane market. my question is about xlnx. >> i like it they had a good quarter. a couple of stocks are being hit, amazon being hit after the

bell, apple being hit. there is a big sell in the nasdaq be aware, it is going to be included jeffrey in illinois. >> caller: hi, jim, for all the family pets. >> thank you >> caller: my question is about cisco systems. you had the ceo on a couple weeks ago. and he gave a positive outlook. >> totally. >> caller: and i was wondering ahead of their earnings, would you buy, sell? >> it doesn't make a lot of sense to me, i think it is a buy. and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade yeah, that too. i don't want any trade minimums.

yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

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as much as i have been criticizing the fed lately, i agree they are in a tough spot so let me put it if perspective. we will talk about the story of swab bash national the demand for trucks has been off the charts

26 at the peak this last january. but then trump started getting tough on our trading partners. and wabash went through the roof as we learned when for industries came onto the show. they were adamant that the labor shortage and the tariffs have hurt their bottom line and it is not going to get any better. while demand for wabash has been getting strong, it is not so great if you own the stock as for the tariffs, there is no end in sight last week we spoke to the ceo of starwood property truck. it provides financing for all

buildings. the price of steel has made it uneconomic to build. when the government raised the price of steel, businesses buy a lot less steel they were down terribly today. put yourself in the shoes of the fed. they want to cool the economy. to save the wabash of the worlds the fed can't create more workers. all they can do is make it harder to borrow money it could be worse for the construction companies those rate hikes won't roll back the president's 25% tariff on steel. here is how i see this playing out after this vicious pre announcement on friday that's because they won't need to make as many trucks it is like cutting off your nose

to spite your face you will see the same thing for thor industries. doesn't help that thor is already being plagued by high gasoline prices. and as far as construction clients more rate hikes make it less economical. i say it is a small price to pay for a strong economy that is called a consequence of full employment. companies like wabash and thor will sort it out the fed may not need to take much more action anyway. we are left with the situation where just when a down and out manufacturer finally has hope for a big year, it has gotten hit with a triple whammy higher steel cost, high interest

rates. mostly government made to begin with stick with cramer.

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learn more at retire your risk dot org. a lot of selling at the end of the day was related to this, it was related to apple and a call that goldman that said china is slowing the chinese government is putting a damper on apple sales and that sent down a lot of the f.a.n.g stocks after the close i do think that apple is an inexpensive stock, just be ready when you see some downgrades because that is what i think we are going to get 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 ..

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