maybe 3.5%, 4% up 20% for the year. apple, buy. >> explain the quarter, and then itgoes higher for her. >> do not miss our special market selloff "mad money" with jim cramer starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica and of course, welcome to be the city of brotherly love philadelphia 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 try to put this in some sort of context. so call me at 1-800-743-cnbc or tweet me @jimcramer. how did everything go so bad so fast is this the horrific new normal? after the day, where the dow tumbled. nasdaq plummeted 4.3%. i'm worried that the answer is yes. between the fed and the trade war, we're in rough shape. let me start by saying this market is not behaving all that rationally moving at the speed of light mowing down stocks and taking no prisoners. today was the first day in ages where the market not only ignored positive earning surprises, it actually punished them many companies who reported spectacular quarters saw their stock like they missed numbers

in a bear market, it sure felt like one today this action is insanely emotional. during the terrifying moments of the session, we could have heard that a company was getting a take over bid, and the stock would have still gone down it is that bad out there if it disappointed, it was disastrous no matter how they put a positive spin on the numbers bad results always hurt. but the post earnings pain hasn't been this severe since the lead up to the great recession. it gets worse. if you were hoping earning seasons would arrive like the cavalry, this is not that kind of western companies are missing left and right. incredible how bad the ratio is of good earnings to bad and even when they make the quarter, it

means nothing. the printed numbers, the beat and raises, have little to do with how stock trades. you get something like texas instruments issued a horrendous forecast the stock fall apart and thatis a great american company. you get a minor miss look out below so why is all this happening at once how can companies report terrific results and have such trepidation about the future if you have been watching the show, there is nothing new there. tariffs and interest rates are the culprits and now they are intertwined that are now indeed nightmares for the market. i cannot recall the moment more convoluted than this one

two men with the most influence over the stock market in the world, the president and the fed chief are engaged in a destructive tug of war both sides are wrong that's right, staking out opposite of the economy and the real loser is you, the investor. you need to understand how tense the situation is a lot of it is behind why it got so bad today the president has been so adamant that the biggest risk to the economy is that fed's desire they believe the economy is accelerating they want to ensure that inflation doesn't get out of control. wages could spiral higher. now ironically, both the fed and the president are wrong here and they are wrong about the same thing

they both thing the economy is red hot. but the data that we have gotten over the last few weeks and the earnings report paint a different picture. we already knew that housing has been weak. we knew that auto is slowing now we have a whole new wave of worry stemming from the white house's trade war with china especially the ones related to supply problems. keep hearing about the supply chain being interrupted by the tariffs. no matter what happens, someone will have to pay the cost of these tariffs, either the consumer, manufacturer or retailer all three options are bad for business yeah for example, last night we heard

from an outfit, irobot a company that makes roomba, the robot vacuum a high end roomba might cost 700 bucks. the company is telling us they will eat the cost of china cost rather than put them on the consumer every company that is caught in the trade war cross fire finds themselves in a heads i win, tails you lose situation if the consumer reaches it, the sales go down since higher prices drive people away in short, it is a roomba market. what a world now there are ways out of this mess i don't want to present this thing as a neolistic nightmare, maybe china blinks

it has become increasing unlikely things have gotten worse as it drives on. it is kind of like we are in a full-blown cold war. a cold war with china. if you remember the prc didn't do much business with us during the cold war and unless china blinks soon, we are going to have to start expecting number cuts from companies that have any kind of chinese exposure and that is why this market is going down, ratcheted down then there is the fed. maybe the fed blinks and puts next year's three rate hikes on hold but powell is in a tough spot now. last night trump openly provoked powell by saying raising rates

makes him happy. it is almost surreal and the president appointed powell you never want to see the head of state go to war with your central bank every time the president bashes him, it makes it harder for him to back down on the other hand if powell don't blink, powell could crush the economy. [ the house of pain especially when you hear new home sales announced this morning were horrendous. the worst in a couple of years higher rates have made many homes unaffordable things can work out for the better it is possible almost a bull market somewhere the consumer packaged goods names are in bull market mode.

they are flying. they are flying because they offer good dividends and then again bond yield is declining because business is not so good. the bottom line, even after today's pacing, i don't think we are out of the woods prices are just adjusting. i don't want you to be a hero, the worst may not be over. they need to stop fighting over what is a hot economy. until that happens, you need to stay cautious. we'll get through this as a lot of it is man made. but the people who made it, have to change their minds before we can be too positive even with these now dramatically lower stock prices sunny in texas >> caller: hi, jim, thank you for taking my call and for your

authenticity. >> i got authenticity today. >> caller: talking about a stock that is on your ranking. am i missing something information? >> what people are saying is the spread between where the really inexpensive permian and what the refining it at is getting narrower, but it is not. i think this one is a victim of circumstance gary heminger is doing a good job. sunny there, is nothing wrong. but it is in the oil cohort. and everything related to oil is getting crushed. bill in florida. >> caller: hi, jim, first time caller, long time viewer my question is on blackberry, because it had decent earnings, and patent litigation. continues to falter.

i have 3700 shares average cost 825, should i buy more, sell or hold. >> it is an inexpensive stock. understand right now, even the best of the text stocks are coming down. that stock is going to go lower before it bottoms. there is a lot to get through. join me tonight for cnbc special report with melissa lee. we are not out of the woods yet. this may be the sub optical normal for some time i am telling you how to spot the clear divergence the dow closed down more than 600 points call me or tweet me, i got your

back 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. >> caller: thank you for helping us not panic in times like this. the average investor which we all know and love, you cater to us >> i am not going anywhere you shouldn't either we will get through this together. >> announcer: cramer has your t'ck les take on the market

together. >> we are going to figure it out, and puzzle it over and make it so we are all smarter show me movies a grinch would love.

[ bark ] nu uh, i'm picking the movie tonight. [ whimpers ] be sad, i enjoy it. show me grinchy movies. oh, goody. [ whimpers ] mmm, fine! show me movies max would like. see the grinch in theaters by saying... "get grinch tickets" into your xfinity x1 voice remote. [ laughing ] uh oh. something in my throat.

only when the tide goes out do you discover who is swimming naked. we are seeing a lot of naked ceos along with plenty of good ones in swimming trunks. and often they are in the same sector who is swimming naked? first the big one from me is at&t versus verizon. i can't believe how solid verizon's numbers are. subscribers that revealed yesterday, verizon is firing on all cylinders. it is a buy if it comes down again. at and t missed badly. earning 90 cents there is a lot of noise, i am not saying the dividend isn't down, although the stock is

disturbi disturbingly high. there becomes a lack of predictability and paltry subscriber gains that need to be addressed. lose this address. who else has no clothes? i was crushed by 3m's stunningly bad results that it reported the other day. we had picked 3m position for our travel trust fortunately we sold a big chunk of it. what we didn't expect is a decline in their health care and consumer businesses. and didn't expect managers to slash its forecast just an unacceptable from a great american company the worst thing is that 3m has no one to blame but itself

honeywell delivered terrific numbers. it has a mosaic of business that thrived over the old ceo now, ever since mike has taken the helm, he has led 3m into the dust how about illinois tools a fabulous mix not dependent on any one sector today they told us that they sold auto specialty products and polymers and fluid stock lost nearly $7 today along. we hear from bristol meyers tomorrow, but it looks like bristol meyers has fallen behind the rest group. however, merck still keeps

getting stronger i am used to all of these form of stocks trading together eli lilly has become unstoppable not to mention its spin off. maybe bristol meyers will surprise me to the positive tomorrow, but if not this is all about poor execution boeing, keeps performing amazingly welling. which is why the stock roared today. even as the rest of the market got slammed again. terrible aerospace sometimes these divergences are hard to see. what you buy, worried by a slow down let alone a recession in terms of ex cushioecution.

proctor took market sale even as it raised products for many products kimberly had the exact opposite. i think kimberly stock is kept aflu afloat by its dividend yield even this rotation, staples -- we now recognize how fabulous last quarter at pepsico really was. that's been my thesis despite all the happy talk by the president and the fed. about some companies are managing the tide better than others and when the tide stops, and i am talking about the tide of selling, the swimmers with trunks will get bought and the ones that are naked, all i can say is hide your eyes.

let's take a caller. bob in new jersey. >> caller: thank you for taking my call. i want to talk about the former v v v va valea valeant pharmaceutical working with the ibm cloud can they surge beyond their target of 26 or is this a no profit sort of thing >> well, bob, i have to tell you, that actual partnership won't matter that much and a lot of the drug stocks are coming down here. as much as i think that joe papa is doing a good job. let's say merck comes down or eli lilly comes down, i think

those are going to be better particularly merck we can ungrade to the highest quality, and i think merck might be right all right, earnings season is in full force and a clear divergence between the best and the worst. much more "mad money" ahead. the dow has turned negative for the year what is your next move i am going to open the phone lines. and giving you a plan of attack. during rob's ten your at consolation brands, 950% compared with 140% of the s&p 500. i am sitting down with the man himself and his successor. stay with cramer

your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

there is a chance that's the last time. 300 miles per hour, that's where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me retirement is protected. annuities can provide protected income for life.

learn more at retireyourrisk.org look, i'm not in denial. i know where we live [ the house of pain this is an interactive show that helps you get through difficult moment just as difficult as 2007 and 2009 what i like to do is open the phone lines and speak to you talk to you. get some input from you so i can help and let's start with tim in california, tim. >> caller: hey, sir, quick

question for you, so i am a millennial that has a lot of tech stocks. on a day like this, i get scared, should i hold or should i start researching more >> look, we always want to do buy and homework and not buy and hold you are a millennial, and you have many years to make the money back if i were in your shoes, i would say we get more oversold and put money in an index fund maybe you save for retirement. so don't cut and run here, but you to have continue to do the homework good tech earnings are happening and nobody cares even in 2009, they started caring once the selling let up

ronnie in florida. >> caller: i got an earnings question, and everything is calling me like amd today, the earnings was expected whatever, 12.6 billion and it was only 12.4 why is everything selling amd. >> okay, this is a great point and what happens is that there are several businesses in amd. there is a pc business and that was absolutely excellent there are businesses that are involved with data center. and they are strong. they have a graphical service business, and it was not so good the same thing happened with nvidia two quarters ago. it is going to take a couple of quarters to work through and then amd will be fine. don't forget how fabulous that

stock came from. it got wtoo heated and there was a line that was long you have one line which is the graphical user bit, that one line is enough to send the thing lower but i bet there is another day where you want to own amd. how about robert in florida. >> caller: jim, hi there, what i want to talk to you about today is what any mature retail investor who has been a student of the market would want to speak to you about i come from the age of leon cooperman, peter lynch and you to invest you want to get experienced management, look for 15% growth and have proprietary as possible. what we have now are algorithms

made by mathematicians and program trading by the big guys the retail investor is gone, has lost his confidence. and when you see how the market behaves, we're for a few days it is drastically up in the a.m., and goes down in the p.m and when you see like a day like today where the market was driven, and i mean driven very low at the very end where these big shots know the earnings that came out today are going to be good and you can be sure that tomorrow morning the market will be up. >> okay. well, robert, we're not sure what it will do. and very much appreciate you putting me in a good camp. i am not that. i had a good record. i'm on tv.

i appreciate your confidence in me there is way too much program trading as there was in 1987 in another october. there are alg rhythms that are doing crazy things good stocks can beat that. we just have to find them and hold them and can hold the s&p if we can't find them leike that and look at how wonderful we have done regardless of what goes on with our programs. it is a volatile and tough market but we are going to get through this together. don't we always? more "mad money" ahead a private sports player that roots for everyone as long as you root for everyone. my sit down with fanatics. and get your cheesesteaks ready, a very special philly edition of

the lightning round. stay with cramer

(beeping) experience the lexus rx with advanced safety, standard. lease the 2018 rx 350 for $439 a month for 36 months. experience amazing at your lexus dealer.

we're here in philadelphia today for the disruptor 50 road

show where we try to identify the start ups with the potential to revolutionize the industries. it is a theme to focus on especially a day like today. with we need to speak to companies that have a chance to make it for tomorrow i got a chance to talk reuben sold his company gsi to ebay they sold the consumer facing brands back to reuben and this includes f includes fanatics. reuben is the founder and ceo of connective take a look. >> i have a million things i

want to talk about i am so proud of you you are great. you just got back from china, a lot of the weakness in the stock market is that there is going to be an endless economic war but you have a different message. >> what i see as an entrepreneur, of how opportunity there is in china. it is one of those things that you had to see to believe it 45 million people watched our pre season basketball game that's like half of a super bowl rating that is how rabid the fans are in china we just launched fanatics. >> there is an amazing company one of several that you control. i would love to hear about supports because you are involved, you own teams,

fanatics, and nike, you are a free range guy. >> so what do you want to talk about? let's start. >> let's start with fanatics. >> i will break this down simply for you. i had a belief that amazon and alibaba were going to control ecommerce. i am not a guy that wants to go out of business, so i have to differentiate yourself again, we built this differentiated business markets. we are about vertical commerce most of the products that we have so it is a different business. thank about an h & m or zara but mostly online. >> so i get a jersey at the

super bowl, is that yours? >> it is ours. in the case of the jersey, nike design it. just over the super bowl specifically, we sold 2.5 units of eagles merchandise within a few weeks after the super bowl and we designed those products, manufactured and because of the verticality, the consumer gets a wider assortment of merchandise, anything they want, and more quickly. and the leagues and teams are making more money and acble to communicate with the fans. >> two teams i don't want to go against, and one is amazon, and the other is nike, and you partnered with nike. >> if you think about the sports license business, what a league wants and what a team wants is to have the best marketing brand

in the world and nike, what the leagues did, they said let's split this with one set of rights and two sets of rights. and use nike to drive the nfl brand and work with fanatics to drive transaction. so now you have two companies rather than one to grow the business. >> you bought back from ebay that is a $27 billion company. if i were to buy shares in con nettics, i think it would be more than ebay. >> certainly one day. and for us, the truth be told and people say this all the time, was ebay smart for selling the business first ebay was focused

number two, these were teeny companies. when i bought fanatics it was a $200 million business. it is going to do next year three or $4 billion in transactions, so we took these businesses and developed the strategies and evolved them and we are just getting going. >> one last thing, you have a stake in the devils, and in the sixers, but you are thinking about buying the panthers. >> that's easy other than the sixers, for me, my loyalty is all about who makes us the most money. so i am easy to swap team. if i own the panthers, i would have been rooting to destroy the team you are there for one reason and that is to win

i laugh when people say good luck before the game i hope for the next three hours, i hope you die i love you before the game, but no love during the game. >> i love the way you think. michael reuben, co-owner of the 76 ers

>> 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 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 darrell in texas. >> caller: thank you for taking my call. >> the problem is that everything in the bio tech is coming down at once. there is nothing individually

wrong with cell gene versus the others and just ride your way ray, in new jersey >> caller: apple, i have had it for two and a half years, two years where it went public. >> it is a solid read. it has a good yield. it is fine let's go to robert in texas. >> caller: yes, hi, jim, this is robert in houston saying hello first time caller. i have been watching your show for three years and appreciate all you do for investors i want to ask about lululemon. >> terrific quarter. we got an upgrade today. and i think it was right believe it or not, i think retait wi retail will be good. you will do okay in lulu

bill in florida. >> caller: big booyah from st. augustine, florida red robin. >> and ladies and gentleman concludes the "lightning round"" >> announcer: lightning round is >> announcer: lightning round is sponsored by td ameritrade 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 a lot of work.ut that e no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. 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, is technology with the power to change your life. life. to the fullest.

on a day where the dow sinks a whopping 600 plus points, it is important to remember to see the trees between the forest individual companies might still matter and one that we are a big believer in had a big changing of the guard what do we do with the recently announced change that we are seeing at consolation brands three weeks ago, we sat down with rob sands, the ceo of consolations after he delivered a terrific quarter that sent the surge higher and they also got a bunch of other alcoholic brands since then, though, oh boy,

consolation had an eventful weeks and that put this stock under pressure we are hearing the company might want to sell some of its wine brands and we learned sands may be retiring. the stock has sold off hard to the point where you are getting the last quarter, a great one for free i still like it. earlier i got a chance to check in with sands and his successor to get a better read rob, great to see you here, and bill, great to have you. rob, you are a young man, why are you retiring and is this the right time. >> succession planning is one of

the most important things we do at the company to make sure that we have the best and the brightest and i have been ceo for 11 years and the company has great momentum and we are in a great position of strength at the moment so i simply felt that now is the time to retire as ceo. certainly, i will be moving to the chairman position. so i will still be involvedwit the company quite considerably and in the strategic direction of the company so it seemed like the right time always good to do these things from a position of strength as opposed to when you are on your back foot. i believe it was the right decision to make. >> all right now you are still running the company, so i have to tell you, bank of america and merril lynch said you might sell off some of

your wine. you have such great cash flow, you don't need to do that, but is this something that you are pondering. >> we believe strongly in the wine business. we have invested a lot in the last few years on high end properties but we also recognize there are times when with you need to look at what you are doing at the lower end of the business. and we said on our last earnings call, that we are considering strategic alternatives for some of our tail wine brands and we are going to do that but don't mistake the fact that we believe strongly in the wine business it is a high margin business and one that has good growth compared to most cpg areas if you did sell some of the wines, particularly some of the lower end wines, would you use that money to pay down some of the debt that you took to buy a big stake in canopy. >> this is all conjecture, but

it would give us opportunity to invest in the high end or pay down debt. >> now that canada has repealed. we saw bruce in earlier. he said it is going better than he thought are you surprised for the demand. >> i can't say i am surprised. bruce has been telling us the same thing and what we are observing in canada is there is tremendous demand. people have been lining up to purchase the product so i'm not surprised because this is exactly what we predicted was going to occur and so far it's playing out pretty much exactly how we predicted. so we are incredibly enthusiastic about our investment in canopy and feel even better after the first few days that it is going

to be an unbelievable investment and unbelievable market. this is only the beginning only two days in and it is going gang busters so we are incredibly excited about it. >> recently, bill, we heard bill say he bought a huge constellation stock. are we there already >> that would be good for the shareholders if he was right but i don't know that we are there yet. our core business continues to perform extremely well and our beer business is a tremendous asset it wouldn't upset any of us if this bet that we made proves itself out in the way that bruce thinks it might. >> when i listened to bruce this morning, he is focused on the

medical site and what are some of the things that you are doing with cannabis right now in terms of using all of the skill sets that constellation has that is going to make it popular >> a lot of medical testing is going on and exploring how you do things like emussfications. a lot of work being done to make sure that you have the right understanding of dosage, and how people want to use it. and be prepared for the future as legalization occurs around the world. rob, i think there is a whole scan of thought that has been killed by that last quarter. people thought you are taking a defensive move in canopy but i see your ads on the nfl and i have to believe that nfl

ratings being better than expected means that constellation has a better run than expected for corona and modelo is there some correlation that we have to watch for? >> the iri numbers which is consumer take away and grocery store measured by scans. and the business is better than ever the corona family performing extremely well the modelo family continues to be the biggest growth driver in the entire beer business we have seen no deacceleration even though the comps we are against our large double digit comps. but again, no deceleration nfl picking up is certainly a positive and that also is

indicative of very positive trend with consumers and the industry in general no less for our brands which are the fastest growing and best beer brands in the united states right now. and that is only great news when televised sports which is an important advertising area for us, when they are doing good, we'll do even better but, you know, we did well last year when the nfl wasn't doing so great and it is doing better this year and that is going to be a tremendous positive for us even on top of the momentum that we already have. we are extremely enthusiastic about that. >> all right, gentlemen, thank you so much. thank you so much to both of you gentlemen, great to see you. >> thanks, jim. >> thanks jim.

don't go anywhere. i am joining my friend melissa lee for a cnbc special report. we will have every angle of this volatility covered this is like no market we have seen in a decade but a decade ago we had something like this. right now balance sheets are good, back then they were terrible right now we have man made problems whether they be tariffs or interest rates that were too tight. back then cataclysmic. a federal reserve that was even tighter than this one. as long as it is man made, it can be undone by the people who did it they just have to realize what they are doing 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 smack down on the street, the dow tumbling more than 600 points in the final hour of trading today. the nasdaq suffering its worse one day slide now down 12% from it's all time high this is a cnb special report market sell-off, i am melissa lee.

we are her