not taiwan semi. tencent, thank you. >> dan. >> i actually see no reason to buy netflix especially up 80% on the year look at this. >> take the final trade appear shove it. >> pmy that does it fo 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. for weeks now, i have been telling you we are in bizarro world. where good news is bad news. every time we see something

good, it gives the feds a chance to slam the brakes on the economy. what we really want to see is mixed data that gives the fed's reason to put its rate hikes on hold that is what we got today. s&p dropping nasdaq remember, what is it stake here. we are in the midst of earning season where we can piece together a mosaic of what is going on in the economy. one rate hike in december followed by three next otherwise inflation starts getting out of control the fed doesn't need to tighten four more times, that is crazy, maybe businesses already start to cool. the point here is that we don't

know enough. it is possible the fed is right, it is possible the fed is wrong. the own way to know for sure is to wait and look at the day tachl on the one happened, there is real signs of strength. last night csx, the giant railroad reported a blowout quarter, the company keeps track of lines only one fertilizer was negative, the rest were up sales increase by 14% year after year agriculture and food products plus 13% and automotive, great, up 12%. stars there, north american trucks and suvs. forest products jumped 23% thanks to new building in

ecommerce. intermodal, the big containers that goes from ships to railroad gained 12% even lowly coal soared 14% holy cow, that is a lot of strength quizzically, and perhaps despotsive, the stock went down today. i mean, come on, shouldn't csx been up huge i think so it is easy to see how powell tightened. when you assemble the rest of the economy pastishe you find areas that are startling give me a break, that is a

shocking and terrible number pervasive housing weakness is why downgraded kb homes to a sell unbelievable out right sell we got a lot of exposure in california makes sense. on jpmorgan tells us, housing could be down by 10% they also downgraded home depot and lows and both stocks got obliterated. stocks feel like falling knives to me. the company that i like to call home despot fell eight and a half dollars that is the slow down calling. the pin action crushed retail. you never want to see a retail slow down ahead of the holidays

and i am saying all of retail. one from trinseo, and ppg. how about steel? last week we spoke to the ceo of starwood property trust, and he said steel prices are now too high to be economic. imagine that too high to construct things many regions where it was doubled that not that long ago our economy runs on credit we will find out more later in the show when we interview the ceo of power house first horizon. no wonder vulcan materials hit a

52 high. the reason, they are worried about week new project numbers you don't build roads when there is no demand for them. basic building blocks tend to be indicators of what to come and then there is the trade war with china, the tariffs are just now reaching mainstream and while retailers will pass, the rest they have to eat. now there were some major one offs but they don't belong in this mosaic. ibm took a step back in its transition with a strategic imperative set back by surprising slow downs. i think maybe they lost business you need to put yourself in the shoes of the fed they are determined to raise

interest rates no matter what. powell stated he is willing to overshoot in order to stamp out inflation. yellen called this method data dependency i called it common sense now though, the fed seems to want to ignore anything negative instead, they just want to lay down on the tracks of csx. i'm calling them out as lazy and irresponsible. worst than that, it is a real problem. this is supposed to be a market where good news is bad news and that only works if the fed is paying attention to day tacta let me give you the bottom line here, i am not saying the fed gone crazy i am not saying they need to

stop tightening because of the stock market i am begging powell to take rates one hike at a time they need to look at the data. it might make sense to put next year's three plan rate hike on hold if we know the nation's strength is dissipating before our very eyes. at least in we keep them open. let's go to nick in illinois. >> caller: this is nick from chatham, illinois. thanks for having me on. >> quite welcome. >> caller: i wanted to talk about active vision blizzard atvi they are the company responsible for the new call of duty which is smashing records >> crushing it. >> it is a higher price market for them streamers, including ninja have

been promoting it. i want to know have we missed this trade >> i would say yes, and you should focus on take two interactive. but this group has got a little bit too hot. let them come in take two is the one i like john in new jersey. >> caller: i am calling in reference to opk health. >> after that halt, i gave up on it phil frost hasn't come on the show, i don't like what i saw there. if he had come on, i would have felt better about it, but he didn't, so i don't like go to ideen in washington.

>> caller: get your take on vicor. >> i remember these guys >> caller: do you agree with the analysis and what your thoughts are. >> they just reported, wow, it has moved up too much much we a -- we are going to have to hold off on that. i am going to say, should have done it yesterday. the data is mixed. and that is possible i say press pause. netflix is crushing after earnings and has become the content king after last week's market shake up, power rankings are more important than ever. tonight i am tackling the industrial sector. i will tell you if veeva can

take the throne. when i talk to the ceo 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. people tell me all the time i have the craziest job,

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don't blame netflix if f.a.n.g doesn't bounce back, the streaming video kingpin reported spectacular numbers last night with new sign ups coming up better than expected continuing to take the word by storm, they added 1.9 million domestic subscribers, internationally they picked up 5.87 subscribers netflix has now 130 million paid

subscribers around the world those are incredible numbers the services are so good, they can raise prices if they want to with some price hikes, netflix could make it much more profitable over night. i can say, look, let's take a look at what they are producing here that's what matters. you should be focused on the benefit of the scale as netflix picks up more subscribers, it makes it harder for anyone to compete with them. the more customers, the deeper, wider the mote netflix reminds me of amazon the wallton family wants to compete worldwide. so they are giving ceo dough m m mcmillan a blank check which brings me to the rest of

f.a.n.g. you know i think apple is doing incredibly well. amazon's three businesses retail, web services and advertising are doing well i bet their earnings will be just fine even though they are paying workers $15 an hour how about apple, i am worried the chinese parent company will cut off its nose to spite its face i think the service revenue stream will go robust and the stock power higher alphabet stock getting ridiculous i don't know a soul who believes there is a problem with the numbers. i hear uber wants to spin off its self-driving car business. in short, the stock is under valued i listened to the great leon

cooperman, and his large position is alphabet finally facebook, the stock has managed to hang in there in the 50s. the more i dig, the more i get the sense of the advertisers who have not -- and yes, the margins are not as great on insta as they are on regular facebook don't get me wrong, i am very disappointed with the management there. i wanted them to bring in an outsider to examine the company's rules and practices and they wouldn't do it. they really need to do something to clean house with that said, with the stock trading at 19 times the potential earnings, the rewardoreward out weighs the risk. this group is resilient for a

reason the company behind the acronym never stops innovating i think alphabet and amazon have come down enough that they can be purchased at these levels emily in new jersey. >> caller: hi, jim, i am new to investing and my dad recommended a stock, shopify >> i would go with amazon before i go with amazon amazon has three revenue streams all which are very good. f.a.n.g is not dead. it is truly alive. why can't the haters see this is one resilient group of stocks. the market may have soured the industrial sectors, i am seeing winners in the space

i am going to reveal tonight's power ranking. veeva, i have the ceo. what are the regional players saying maybe they are more important as they are engaged in the economy. i am talking with ceo first horizon. stick with cramer.

in the wake of yesterday's brutal sell off and today's rebound. we need to reassess. tell you how each team compared to the other right at this very moment tonight we are going to address what may be the most fraught cohort in this entire market we are going to address the industrials. if there is one group that has been called into question is this one the industrials came into 2018, with a full head of steam. as the cohort contains many cyclical companies then investors started worrying about the trade war and the industrials got slammed. since then, the group has made a

terrific comeback. then the feds told us they may need to overshoot with the rate hikes. industrials become tough to own when interest rates are rising they do much worse in a colder economy. and sure enough, the group is showing signs of weakness, remember last week ppg a major shortfall. in an industry that has clearly peaked the trade war in china, you want to be wary of the industrials in this point in the business cycle. so we need to be extra careful when ranking our power rankings. hey, you got transports like cxs

up 25% of the year boeing not far general electric are down 30%. so which industrials come out ahead in the cramer power rankings for the industrials in first place, little contrary, union pacific. the west coast railroads that are up year-to-date. since then, the whole group has been body slammed including the best of union pacific. even if we get the fed mandated slow down, i think the stock might be worth owning. transportation costs are out of control. thanks to new safety regulations that prevent truckers from spending too many hours on the road every time you hear about rising transportation costs that is good news for the rails. no wonder csx came out with encouraging numbers.

however, csx has run dramatically for the year and even sold off in the news. i think union pacific is a better by. thanks to last week's meltdown come on, isn't that a bullish sign let's talk about boeing. you know i have loved this one for ages even after last week's sell off, boeing up 24% up for the year. the stock has been a juggernaut. this story is all about the long-term rise of the global middle class, as people in developing countries start to become wealthier, they start spending money including air travel demand for these planes vastly

out it shall most importantly the company has 5,900 planes in its back lot ever since the trade wars have been heating up, people falling over with consternation that boeing could be hit. let's think about this if the chinese decide to cancel their orders, they will have to go to the back of the line to buy planes from air bus. inshort, aerospace is hot -- when i say weakness, i say down, ten, 12 points because the stock trades wildly third is textron

tomorrow i will be addressing the weakness in textron. it has four main tuitions, company makes jets you know them as cessna. they have a business that includes anything from drones, simulation, and training products the company looks to be a major beneficiary of the armies new spending priorities. then on monday, this is a high quality company. textron stock is down 11% from its highs. the company reports tomorrow morning. this stock go clobbered on a good quarter last time but then quickly bounced back. that will allow you to get a better price than you got it right now. number four is kind of a cheat united continental

many of these names have been clobbered this year, ual has surged higher. these guys are doing well because the company has worked relentlessly to understand and connect with its investors those vinvestments are paying off. raised the quarter forecast. third earning boost in a row help of course by today's plunge in oil making it the number one performer in this sector and when a stock is up that much on a down day like this, they have incredible strength a big worry for the airline is capacity the airlines what do they do, they compete in price, wrecking their profit margins, as we learned the last time we spoke with ceo oscar munoz, the

company won't be paying this game this time the stock has more upside. the darn thing sells for more. finally, i am giving the fifth spot to harris corp. they told us they are combining with l three technologies in a merger of equals and that makes it a very attractive play. and the combined company will be a major supplier for all companies of major components. it makes a lot of sense for these companies to join forces bottom line, if you want exposure to the industrial sector, stick with companies like union pacific, boeing,

textron and united and harris. let's go to rick in connecticut. >> caller: hey, jim, how are you doing? >> well, how are you >> caller: i have a question about electric boat. they are building up manufacturing facilities and hiring hundreds of people, and what do you think of general dynamics for a stock. >> i think it is okay, it is not my favorite, i like raytheon but i never going to quibble anyone who buys general dynamics you have that interest in it and i am going to endorse it as a great buy. tim in maryland. >> caller: big booyah from maryland i am a young investor. and i have learned so much from your show. i am calling about symbol hei.

i like the industry, they are in replacement parts for planes and what not i consider that positive they have a nice earnings report at the end of august and selling off ever since is this still a buy here >> i like the company very much. boeing has a good service business too by the way. this is a company that i always felt was going to get acquired it is up a lot but i do like it and let me say thank you for those kind comments my goal is to demystify and i am succeeding when i hear great things from you. greg in my home state of new jersey. >> caller: mr. cramer, how are you? >> not bad, how are you? >> caller: i am good my question is about ctas,

cintas stock has gotten hammered since then >> here is what is happening it is exactly what i have been talking about the top of the show how good it has been, it can't be that good again it is a forward looking company making making uniforms. it is reflecting like granger a slow down and that is what seems to be alluding the fed understand and respect that it is too late in the cycle to own cintas this market's volatility is an opportunity to see what is working and upgrade your portfolio. is it a prince without a crown i am eyeing veeva systems. with interest rates rising, much of the market has been focused on the big banks i am sitting down with first

horizon's ceo. and then tonight's edition of the "lightning round" stick with cramer state of the art technology, makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $339 a month for 36 months. experience amazing, at your lexus dealer.

okay what are we supposed to do with cloud based software stock this was one of the hardest hit groups in last week's hideous sell offs. because in a panic, people ring the register even as the actual cloud companies are doing well could they be worth picking here consider the case of veeva systems. helps pharmaceutical reps become more effective and they make it easier to compile government regulations the company told a very compelling story but that didn't matter once the cloud play started selling off is it a buy? let's take a closer like with peter gassner.

>> thanks for having me back. >> you topped the fortune 50 list for future cos. one of the fastest growth companies out there. can you be a billion dollar in sales company in a couple of years. >> we can. actually, we laid out a goal to be a billion dollar revenue company. in 2015, we laid out the goal and said we will get there in 2020 we let people know we are a year ahead of schedule. i am proud of the veeva team they executed so well and they are headed a year ahead of schedule >> it is easy to see why you expanded a lot of different parts of the company you got a development cloud, the commercial cloud and this reminds me of what salesforce has done and adobe has done.

>> that is a hallmark of veeva if you look at the progress in those five years, we almost tripled the number of products we have, you are right, that makes a great company. people who can reinvent themselves a team that can create new products and keep customers happy and use success to grow the business veeva has done that. >> what has caught me by surprise, i think life science industry as the most forward industry there is. you write digital has finally become a reality in life science. >> life science is a serious business it is a big business, $1. trillion in business and doing amazing things

we are so proud to be part of. that with that comes when you are dealing with human lives, there are certain regulations. mainly to deal with safety for the patients we are just helping people be more efficient and the people inside those companies are enjoying their jobs slightly better because they get to use their modern technology. making medicines for patients. >> they are such a committed group, i hate to see them bogged down with stuff that is very 1950s, '60s. you got a moment in the call when you talk about some of the things you have will work for cosmetic companies, consumer product company. you have bigger than $9 billion total adjustment in your market.

if you are testing perfume on rabbits, i don't like to admit to that, but some people do. that you need to be able to have veeva. you can't do it better than the life sciences. you have got to have the technology this team can accomplish so much we moved into the r & d, the clinical trial area. that is our second big act now, we are taking it outside of life sciences with a product we call quality one which is, you' you're exactly right, you have to be careful when you are manufacturing a chemical, cosmetics, laundry detergent they have been burdened with the client server processes and paper processes and we want to modernize that that's a big frontier for veeva.

>> they haven't migrated to aws? >> they are still on paper which you have a few steps to go sometimes in these industries, you will be doing a complex manufacturing process and you want to change that process. a lot of that is done on paper and spread sheet still they haven't automated because there hasn't been a good cloud based system. >> i want to congratulate you. you are selling where you are. fantastic work, peter gassner founder and ceo of veeva i like this stock. they are doing a great job stick with cramer.

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>> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire 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 dave in

connecticut. >> caller: big booyah to you from connecticut thank you for taking my call my stock is keycorp. >> you know, the stock is acting hideously. you know that i think they do a terrific job at 4%, i think it is okay. but right now it is for sale big time and that is part of what i am talking about, which is the slow down in the economy walter in california. >> caller: hi, jim up here in san francisco long time listener i am calling about ventas. >> i think the glut of nursing home is gone i think they are doing a terrific job and i would buy, buy, buy.

let's go to chenhhil in arizona. >> caller: what do you think about weight watchers? >> too wild a trader it is too crazy for me richard in new york. >> caller: hi, cramer, love your show thank you for taking my call you suggested that del taco restaurants was a stock worth considering. you thought it could rise to $20 a share by december. lately it seems to be stuck. >> it did not deliver. i was quite surprised because it is very good i said listen, you got to stick with chipotle. i am surprised that the poor execution of del taco. maybe if they come on, we could hear otherwise let's hear from john in ohio.

>> caller: big booyah to you i am a first time caller what do you think about hbi, hanes brand? >> vf is the play. rich in new york. >> caller: greetings and a big booyah from long island. >> good to have you. >> caller: thank you for all you do for us. approaching 60-years old and plan to retire solid dividend company, my strategy is to dollar cost average in and then one of my newer holdings is khc kraft heinz. >> i prefer verizon. got better growth than kraft heinz. i have to disagree with that pick jim in new york. >> caller: booyah.

from rochester, new york. >> okay. >> caller: thank you for what you do for individual investors. your opinion if i should buy, hold, or sell. the stock i am interested in is crane. >> that is a terrific company. no flies on it i like crane and let's go to sulliman in new york. >> caller: booyah, cramer. my question is rbs royal bank of scotland they are terrible. no, we are not touching that one. it is a fail to deliver, fail to deliver situation. i need to go to john in california >> caller: booyah, jim haven't talked to you in a while. we love you out here.

>> from san francisco. good to have you on the show. >> caller: my old buddy. you know i had gilead for a while. hold on to it? what too you think. >> i think you should hold on to and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade 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. ♪

so far this earning season, we have encouraging things from the big money saving bank. consumer earning has become tepid. we saw this on pnc on friday really hammered and we saw it yesterday when first horizon national, a tennessee bank with more than 350 locations. the company delivered a modest earnings the revenue came in a tad light. now, if consumer lending is slowing down, either because there is something wrong with the economy, or because nonbank lending is taking more of the market share, this stock is going to be for sale what happened? the stock got slammed yesterday. and while it bounced today, it

is barely made back its losses this is one of my favorite banks so less check in with bryan jordan, president and ceo. welcome back to "mad money." >> good afternoon, thank you for having me back why is the fed so convinced that it needs to do a december hike and three more hikes in 2019 and if they talked to bryan jordan of what that might mean to the terrific growth of your region. >> yeah. economy is growing well. it is a sign that the economy continues to be healthy. i think you see a tremendous amount of confidence in both consumers and business, small business in particular i think the economy continues to grow at a healthy rate and whether fed raises or not, i think we are getting closer to the end of the cycle, but i

believe like you, the market indicates it is purely priced in i don't think it has had a big impact on customer sentiment in a negative sense. >> how come you were able to make more money on your interest margin you guys are one of the most consistent banks that i follow. >> right our net interest income continues to be strong we have a couple of anomalies. and the yield and the loan portfolio. over all, we saw continued rise in interest rates and asset benefits we did see rates go up in late june and saw that flow through the margin it was less than it had been in

previous quarters. we saw deposits go up. they went up at a slightly slower rate. and the underlying net interest margin, we did continue to get improvement and we see that outlook for the remainder of this year and into 2000. >> there were a couple of times in the call when you talked about pricing to the point where we decided that we can't be competitive in certain levels. talk about nonbanking come pet tic -- competition. that is going to come back and haunt them >> it is a consistent theme. i heard that or read that in other financial systems and bankers bankers. it is still a lot of individuals and investors, institutions and otherwise looking for yield and

it is putting pressure on the marketplace. and i did comment. we do see more pressure on pricing and to some extent on structure. people putting covenant light transaction in place all of that said, i think it is still a healthy lending market and my sense is particularly light in the third quarter that loan demand started to pick up a little bit having a good splupply and more demand will be good that hopefully stabilizes the yield pressure. >> you have had in your area particularly nashville maybe one of the hottest housing markets, will 5% cool nashville >> i think it has had some impact we have a very big mortgage w r

warehouse lending business higher rate has had an impact. it hasn't had as much as an impact as it has on the refinance. so that piece significantly. purchase activity continues to be still okay. but it does seem to be impacted from rate increases. and i would expect that housing sales, housing transactions would continue to become under pressure simply because of the underlying mortgage rate. >> thank you so much for very inexpensive stock you are giving us right now bryan jordan it is a good situation stick with cramer. 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth...

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