wilmington, they are floating around in the back unc wilmington i'm not 62 >> we know. >> and karen power pitched target she got me thinking tgt. >> see you back here tomorrow 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, and i promise to help you find it. "mad money" now. hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want the make friends. i'm just trying to make you some money. my job is not just to entertain, but to educate, teach you, put it in context. so call me at 1-800-743-cnbc or tweet me @jimcramer. hey, this market, at least it can bounce, even if it's only temporary. the averages opened strongly this morning and then rolled

over and then rebounded near the close. dow only closing up 83 points. t while the nosedive was indeed gut-wrenching, i find the comeback refresh, especially since this market is op track for the worst december since 1931 ooh. other than focusing why we came back down, the worries about economic slowdown, the fed is likely to raise interest rates one more time, it seems a little counterintuitive, doesn't it i think it's more helpful to look at this morning's rally and the late afternoon rebound why? because it gives us a taste of what might happen if the fed does the right thing tomorrow. ♪ hallelujah >> and wait the see how the economy is doing before they continue to put the screws to it so what drove the bounce last night i laid out a list of things that needed to happen before the market can bottom we have positive developments in some of these. first, i said we needed to see

some movement towards a trade deal we didn't get anything from the chinese. president xi pointedly said no one tells china what to do however, we did get some from the outside. treasury secretary steve mnuchin says he expects trade talks in january. that helps especially since the talks haven't done much good so far. still, this market is desperate for any good news about china. secondly, wanted the stock of johnson & johnson to stop getting hammered after the baby powder asbestos allegations that caused the company to lose roughly $50 billion in value you never want to be accused of hiding asbestos in your products, especially not baby powder but last night ceo alex gorsky came on our show and offered what i thought was a serious rebuttal i did my best to bring up every single major allegation from reuters and "the wall street journal. investors liked it at the same time he announced a buyback on the show.

plus, it sure didn't hurt that the lead plaintiffs came on "squawk box" and said investors might be overreacting. telling them the losses would be contained. third, we needed to see a bounce in goldman sachs after the endless press onslaught about its association with this corruption scandal in malaysia that spurred criminal charges against the firm in malaysia now there has been a tremendous drumbeat of negativity, most of it deserving, frankly, with people wonderingwhether goldman's culture was corrupt and whether the company should have known the former prime minister was siphoning money from deals how would they have known? the argument is that something must have been fishy because the fees were so outside 10% of the more than $6 billion that goldman sachs raised for the fund but i know for a fact that the malaysian gave goldman written notice that the money would be used for legitimate purposes and huge fees aren't totally

unheard of they had to know these deals are dirty. the company has been able to defend itself. if the justice department is involved, but the stock was finally able to bounce today, and it created more of a positive backdrop for the broader market, even though the banks remain one of the worst places to be, save for the oil companies. fourth, even some fang, got that there, some fang had some bounce i mean, this was amazing that's the faang, not the fang facebook, apple, netbook and google nothing good from apple. story in the journal about how iphone sales in india have dropped 40% year-over-year ouch apple's stock went higher. amazon, today we learned a key retail executive is leaving the business after a hiatus. i read some research that this was a big negative but the stock rallied anyway

i saw a good ad for alphabet in the paper. i couldn't find anything else. what matters is that these stocks actually can bounce, which i think many people had given up on. we also got some terrific news from boeing last night they announced a 20% dividend boost and a $20 billion repurchase authorization we're going speak to boeing ceo greg smith after the break so why the heck did the averages roll over this afternoon, at least until they started bouncing again right before the close? remember, if we're going to get a sustained bounce, we need one thing above all others after the rate hike everyone's expecting tomorrow, the fed needs to make it clear to wait and see rather than continue hikesing without that it's hard to get a sustained a vance. let's go over the possibilities heading into the fed meeting maybe the fed raises interest rates and stands by its earlier assertion that we need three more hikes next year to stamp

out wage employment. call it the grizzly man scenario because it ends with us getting devoured by the bears. i want to be a diplomat here if the fed goes this way or even if it doesn't repudiate it, i think there will be ill-advised. on the other hand, maybe the fed hits us with one more rate hike and says it wants to wait and see to gauge the impact and it's going to be data dependent they can cite the collapse of oil prices, pretty horrific as a reason to hold off is oil going down because the economy is collapsing or are oil-related loans going to crush the banks? i think we should find out before the fed slams the brakes again. i mean, this is the rational approach and if the fed takes it, we could neutralize the bear among us the fed can simply say it's not going to tighten because its work is done with the economy stalling for a variety of reasons, we really don't need another rate hike here we saw a huge decline in single family housing starts this morning. after the close, fedex talked about slowing worldwide gross,

hideous. semiconductor, horrendous. those stocks get hammered after the close. i know fed chief jay powell wants to maintain his independence, so it will be tough to pause here, given that the president keeps trying to brow beat him into doing just that but i got a way out for jay. that's my job, to come up with this stuff here we go he can blame the slowdown on the president's trade war. maybe he can get away with that. i heard a lot of stories like that this morning, even though frankly i don't believe them but bizarrely enough, this is a tough outcome to parse while no rate hike would be the best result for the economy and a lot of investors would be appeased, thing would be a cohort of money managers who panic because they take their cue from the fed, and no rate hike means things are much worse than many of these guys seem to believe. bottom line, today was a dress rehearsal for the kind of rally we can get if the fed does the right thing tomorrow and repudiates the idea that we need a series of rate hikes in 2019, not just one tomorrow. if we get the fed on board, expect more positive action like we had this morning.

but if the fed does the wrong thing, expect another nosedive like today, except we will not be saved by the bell let's go to martin in new york martin >> caller: boo-yah, jim. boo-yah. >> boo-yah >> caller: jim, merger pending with ocean wide financial. trading at a substantial discount to the deal what do you think? >> you know, too low quality i just think that one is too low quality. we actually reviewed it once i just don't feel any -- i don't have comfort i don't have comfort in recommending a low quality insurer like that. sorry. how about holly in wisconsin, please holly? >> caller: holly, hi, jim. dear jim thank you so much for teaching me about the stock market. >> you're welcome. >> caller: i would like to know if the many companies who are buying back their stock are using profits to do so or are they borrowing and going into debt >> well, i got to tell you,

holly, i'm sorry, but that is a great question and my answer is at the beginning of the year, many of them were borrowing. as interest rates went up, they've stopped doing that i would be wrong to tell you i'm not concerned. i wish the companies hadn't borrowed so much money to buy back stock i think borrowing to buy any stock, whether you're a company or an individual is just stupid, okay i don't like to mince words. i don't like margin and i don't like borrowing to buy a stock. you can't live in a stock, for heaven's sake. let's go to dave in michigan dave >> caller: hey, jim. >> hey, dave >> caller: i was very fortunate. the last week in september i went to all cash in the brokerage cds. and i guess my market -- my question to you is do you feel that there is a segment of the market where it might be a good time to start buying back in >> well, look, i think this is more of an index fund question i think that would be committing some money to index. i like where you're positioned, though, so i'm not going to tell you, listen, it's time to get. in there are individual stocks

that are reaching levels, but i was surprised when i went over how many stocks are now 5% yield there are only a few that i felt would really be ones i'd like were oversold. we did some buying for my charitable trust today after doing a huge amount of selling, but it was small and what we bought was i would say not that much of consequence. i want to see oil stock going down i want to see some of these big cap stocks going down, and i want to see what the fed says. there we go. today was a better day than we've seen over the past few days, low bar. but it just won't hold until we get that rate hike and an indication that the fed is willing to wait and see. it may be prudent not to be rash on "mad money" tonight, boeing just announced a quarterly dividend and buyback the stock is reaching higher altitudes. did it also help change the flight path of this market i'm talking to one of the company's top executives and then made its mark offline as the cheapest store in town. but could its online growth grab a bigger piece of the pie?

i'm talking to walmart's ecommerce biz. how its reexamining its retail nah. and it might already be the middle of winter, but i'm lying under the radar housing play that is disruptive and can help you bank on warmer days outside. 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 at 1-800-743-cnbc miss something miss somet[leaf blower] you should bat leaf blower.

[beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

don't get mad. ♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ ♪ let me set the scene here. yesterday we were lost in the depths of despair after yet another multiday meltdown. then this morning we come in and the averages were higher at the open, in large part because boeing, a market bellwether announced some very positive news for shareholders. the titans give you 20% dividend boost on top of the 20% boost you got last year, bringing the yield up to 2.6% that is a sign of confidence

second, a $20 billion buyback which is huge event for a company with $179 billion market cap. in short, boeing showed you that its business is good not with words, but with cold hard cash, which is high the stock folded only 3.8%, $12 with 3.8% can it keep climbing let's take a closer look with the executive vice president of enterprise performance and strategy at boeing learn why the company is returning so much capital to investors and what it means for the futures. mr. smith, welcome to "mad money." >> thank you, jim. >> okay. so what gives you the confidence with a trade war, with an uncertain time to do this gigantic buyback >> yeah, well, you got to look at the foundation we have today with our strong back guard we have about 5,800 airplanes in backlog, which is about seven years production as we look beyond that, there is a need for 43,000 aircraft over the next 20 years. so we see a continued growing market and part of that growing market

is a replacement element and this is about having the right products and services in the marketplace to win, and we've been making at the same time deploying cash back to shareholders, we've been making significant investments in the business around productivity and innovation to ensure that we've got the right products and services in the market not just for today, but in that 43,000 aircraft market combined with the growth market and the defense market to win. that's giving us the confidence. >> let's drill down on this 43,000 a lot of people say wait a second, boeing one out of four planes goes to china. we're in a trade war with china. we're fighting back. president xi making tough comments today if they cancel all their orders would that make it so you shouldn't be buying back stock and boosting dividend? >> i think, jim, you have to step back and look at the diversity of not just the backlog, but of the market going forward and just look at the fundamentals within china. and there is a need there for about 7,700 aircraft over the next 20 years.

and we've been working in china for about 50 years, and just drilling down on the fundamentals within the country, the growth in the middle class and the 10% of the population has a passport we see continued, you know, great opportunities there, and a portfolio that could meet those needs within that market over the long-term. >> would you have other airlines want those planes if china were to pull back >> well, we certainly got strong demand, in particular on the wide body, jim -- or on the narrow body we have strong demand but we've also seen good demand on the wide body not just on the passenger side, but we've seen freight coming back and the outlook for freight even stronger. so things like the 787, we booked 109 orders this year. and we just delivered our 787th 787. and as you know, it's game-changing technology we're putting into the market, and that's what's really allowing us to position to win and deploy

our capital efficiently. >> okay, speaking of deployment of capital, a lot of people are pretty gloomy, greg. they think the stock market, they can't make money. how about what would have happened if you on the other hand boeing the last six years both repurchase and dividend >> well, we've been big focus obviously on cash generation at the core of the company, cash generation and i'll say efficient and effective deployment so we bought back about 230 million shares over the last five years and increased the dividend by about 325% at the same time, we put about $40 billion into the business through really innovation as well as capital and overall productivity tools that we put in place so a balanced -- i'd say deployment but very consistent with our deployment efforts and very much doing what we said we'd do, which first and foremost starts with executing to our plan and

delivering strong cash flow and deploying that cash flow in a very efficient manner. >> okay. you repurchase program, new $20 billion authorization up from $18 billion approved last september. but the stock is higher. why would you increase the amount >> yeah, as we just look at our free cash flow opportunities going forward, jim, in the year-over-year growth profile that we see, we thought $20 billion matched that continued growth that we see going forward. and we asked our board for that authorization, which they gave us, as well as that 20% increase in the dividend. >> looking at on boeing saying the lyon air tragedy, and it's a terrible thing, the fallout continues to weigh on the stock. there anything new you can tell us about the lionair tragedy and any impact on the company? >> no, jim obviously, we're deeply saddened by the tragedy of lionair, and it weighs heavily on the whole boeing family here as you know, safety is at the

core value of what we do and have done and will continue to do going forward we're working with our customer and working with the investigation team and the authorities, and really, again, really working with them to determine the root cause, and we'll continue to do that until the investigation is complete. >> okay, greg. we had jim mcnearney on a couple of times, the former ceo >> yeah. >>ed a one time i said like yale versus harvard he said no, it's not like that at all where is the rivalry right now >> well, i'd say we have a competitive edge, and, look, it's a competitive marketplace and we're mindful of what the competition is doing, not just today, but i think where we think they're investing going forward and the services they're going to offer but, look, it's a big market it's wide bodies alone, 9,000 aircraft will be needed over the next 20 years. but we welcome the competition,

jim. i think it makes us better but the competition is fierce, and we're playing to win but, again, we're trying to make sure we're making the right investments to continue to have that competitive edge as we look at the markets going forward >> so, greg, you mentioned this evening fedex report, it's clear they have to spend a little more than anyone thought. i think all these companies have to spend more. is that good news for boeing >> well, like i said, the fundamentals around the freight market have definitely improved. we've got a pretty incredible portfolio of offerings, you know, whether it's the 767, the 777 or the 747 and as well as converted passenger to freighter in our services business. we've got a great portfolio, and we're certainly, you know, engaged with the customer to ensure that we're meeting their needs. so certainly strong growth there. really gets to more demand, and we're focused on getting --

winning that demand and getting them these game-changing products and services and the time frame that they need them that's going to continue again to be a big focus for us >> last question oil prices have collapsed here typically, would oil prices go up the airlines have to hold back purchasing are you getting any feelers from airlines saying hey, something great, oil prices have really come down. this is good news for us we're going rethink our orders and maybe put in more orders >> yeah, no, jim, i can't tell you we've seen any shift in the marketplace. certainly as you looked over time, there is not a strong correlation between oil price and orders, because i think the customers look at these assets, their long-term purchased assets they don't look at spot price. they look at the overall long-term operating cost to the airplanes. and like i said before, things like the 787 are delivering incredible efficiency to our customers and position us to win. so as oil moves and interest rates move around the value

proposition of the airplane still remains very strong. so we're on solid ground here, but we continue to monitor it going forward. >> excellent greg smith, cfo and executive vice president announcing a dividend boost of 20% and a increase in share of purchases of $20 billion definitely the most bullish thing that's happened since this market swooned "mad money" is back after the break.

at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react... lies beyond the tech sector.

it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential. okay now the market catches its breath a little bit. we need to search for high quality stocks that got dumped curring the sell-off that might not be donegoing down, but at least you can confidently buy them take walmart, one we really like the rest of the market was collapsing in october and early november, walmart's stock actually rallied but a weekend in november it started getting clobbered, along with everything else thanks to worries about the trade war with china, fears of

retail slowdown. the stock is down 13% in less than six weeks, even though the latest quarter was incredibly good i think people don't understand this company investor cease walmart as a boring brick and mortar retailer with an okay 2.3 yield and to them it's a value stock that's not what i see. i think walmart is a transformation story in recent years this store has made acquisitions jet come, they're becoming an online powerhouse omni channel is the key to this new walmart, how it's competing versus others in the space let's check with mark lauries, who cofounded jet.com, became the president of walmart ecommerce after they beauty his company in 2016. this is an exciting story. welcome to "mad money." >> good to see you this is exciting, mark thank you. >> you too >> my wife and i are watching a football game this weekend and it shows all the different things that walmart has online that you get delivered

why don't we use walmart.com and i said i didn't even know they did this stuffment they do it. >> we do, yeah >> tell us about it, because this is big from even a year ago. >> this is very exciting this is one of the reasons i was so excited to come to walmart. 4700 stores within ten miles of 90% of the population. fresh and frozen in every one of the stores just about, and we're doing pickup now, free pickup on groceries in 2100 stores and started rolling out same-day delivery as well we should be 40% of the population covered by the end of this year and 60% of the population covered by the end of next year. >> so you're using the stores as warehouses >> yeah. they're hybrid warehouses. but what's really interesting, we're moving stuff in full truckload quantities so if you think about it, these stores that are doubling as warehouses were already profitable before the first pick so you have a lot of good turning inventory. the food is fresh. >> this is important, because a lot of people told me they're losing a fortune on this that can't be the case you're the man. >> we're charging for delivery, and customers are paying for it.

so that's sort of a wash and we're picking product in the stores that already has a really good sort of marginal profit because the stores already profitable, fixed overhead coverage >> this is something big competitors amazon does not have and theoretically, amazon cannot really do food the way you guys can. >> yeah, i think this is a big advantage, and one of the reasons why i'm so excited to be at walmart. >> you could have gone anywhere. your company was a success why did you go to a company in bentonville that a lot of people feel is pretty stayed and not that inventive >> two reasons one, doug mcmillon. >> ceo. >> ceo of walmart. met him and immediately started to build a connection and a lot of trust there he said that he really wanted to empower me and the team to help, and he's lived up to exactly what he said that was the first reason. >> okay. >> and the second reason is the sheer mike magnitude of the opportunity. again, based on the stores the stores give walmart a huge advantage in this sort of omni approach to retail >> give me a view of what could

happen a couple of years and what you could possibly do with that store base and some of your ingenuity, which i've known for years, because i followed your storied career. >> so i think same-day delivery, like i said by the end of next year within 60% of the population think about the next level from that delivery right into the fridge, okay so basically, a one-time code. they come in with a camera on their chest. you can watch it on your iphone and see them come in, put it in your fridge and leave to build confidence and trust and these are walmart associates doing it i think imagine going out to work, coming home and the stuff is in your fridge already. that's the next step take it a step further not even having to order it. how about just being able to keep you in stock on everything that you need and not have to think about it that's the future. >> okay. how about these brands shoes.com, moose jaw, hay needle, where do these fit in the game plan? >> we have a two-prong strategy. shoes, moose jaw, hay needle, we just bought bare necessities,

and those are really to extend the long store, once we get them coming back every week, then we want to sell them the long tail. this helps aksccelerate our ent into the long tail we're getting merchandise an expertise. and the other is the digital lay live native vertical brands. these are brands that are really unique they have soul they connect with millennial shoppers, and they give us unique content going forward we're looking at building a portfolio of that. >> competitive prices versus amazon >> very competitive. very competitive >> and amazon got this alexa in my house i figure one day it's going to be advertised and she is going to talk to me. i can say i want this, i want that what does walmart got? voice is really important. >> one of the things we're trying right now is jet black which is conversational commerce you text or use voice to order anything you want in new york city and it's -- >> really? >> it's amazing.

it's a game-changer. we've got of,06,000 people on t waitless to get on this. >> where do you think all of the things you're talking about are in the consciousness of the american people? we don't go to the supermarket we order from amazon and she is asking me walmart.com. it was revelatory. >> it's only in the last few years now. so this pickup and delivery of groceries, this is really just the beginning. it's starting to accelerate. but if you fast forward a few years, you can have 90% of the population with access to same-day delivery or fresh and frozen food at walmart prices. >> okay. someone who -- the great people in this business have taught me what i really want to measure is not just same-day, but same store? will this count towards same store sales which are already pretty darn good for walmart >> that's definitely part of the growth story going forward. >> and i want to be absolutely sure again people said you got to ask him a lot of times amazon loses stuff on certain products you got to ask him to be sure,

is it really profitable? can it be as additive or is it just a good story? >> no. we can make money on fresh and frozen delivered to your door. right now we're charging enough for same-day delivery to cover our cost of delivery through crowd source partners. and like i said, before that first pick in the store, you've already got a really fat marginal profitability you are working from a great base because of the store traffic which gives you the turns on the inventory and allows you to pay for your fixed overhead thats the big advantage. >> store traffic 140 million customers visit a walmart. you got a lot of people that work at walmart. 90% of the population within ten miles. these are all offensive abilities for you. >> absolutely. and this is why i'm so excited to be at walmart having a lot of fun. and it's just amazing. >> one last question what was it like when you went to bentonville for the first time i think it could be a cultural clash. >> yeah, well, it's funny. i was there years ago with diapers.com talking. >> oh, right.

>> i'm familiar with bentonville. it's changed a lot over the years. the walton family especially has invested a lot there are some great hotels and restaurants. i love going there >> we're going to keep talking to you, because i think you're the most inventive man in retail today. and i'm a proud jersey, lie like me you've done great stuff. texas has mark lore. president of walmart ecommerce this is the exciting part of a terrific, terrific story, especially since it's pulled back walmart. "mad money" returns after the break.

if you open stocks, you know that everything housing-related has been obliterated here because higher mortgage rates are bad for businesses

but what if some of these stocks are less levered to new building than people believe? look at trex, tr-r-e-x the world's largest maker of railing products they make products that look a lot like wood but require far less maintenance because it's housing related, the stock has gone from $90 to 58 bucks that's after catching a nice bounce today trex is a disrupter in this industry their products are superior alternatives to wood, and there are a lot of wooden fences and decks that could potentially be replaced the company still generated 19% sales growth, 47% earnings growth as long as you belief they're sustainable. can the company keep this up or will it be dragged down by the home builders? let's check with jim klein mr. klein, welcome back to "mad money. >> good to see you >> how you been? thank you. have a seat. okay so here's the deal we know that housing has gotten weak in this country and yet at the same time, we have saying that you're a

disrupter, as you heard, and really, you aren't as levered to housing starts as you are to repair and remodel >> that's exactly right. we're a 95% repair and remodeling play. only about 5% is new construction. >> so if that's the case, then even though i know you had some inventory changes in september and october, reduction and distributor demand related to rebalancing of the inventory, i imagine things have snapped back terrifically since your report. >> this is the time of the year when normal deck building starts to slow down a little bit. >> right. >> so it's a normal seasonal slowdown and we start our early buy where we start to stock in the distributors and dealers beginning in december. >> one of the things i really liked about your deck is that you say the sun never sets on a trex deck. you're not just a u.s. housing play >> that's correct. we're in about 46 countries around the world, heavily levered into europe and australia. >> now you also have other uses. we tend to think of you

directly but market and stadium railing a bank of california stadium football club, little caesars arena. this could be a great business that people aren't thinking about when they're only thinking about decking. >> absolutely right. we do about 90% of the major stadiums and arenas in north america. >> 90% >> 90% >> i don't think people know that that well i think they're just thinking that we go to home depot and we get trex and that's not your only distribution. >> that's correct. we're sold in over 6700 outlets around the world professional lumberyards, as well as home depot and lowe's who are very good customers. >> why should we use it over wood >> best performing product we just introduced new products that are focused on wood, converting pressure-treated wood to wood alternative. >> walk me through that. i don't understand >> we have two new products, one priced at $1.75.

pressure treated comes in at 80 cents to $1.10 it's a great alternative to convert people using pressure-treated to using trex. >> i know oil has come down a great deal natural gas started rolling over any impact >> virtually no impact on trex because trex is manufactured from 95% recycled material plastic bagser, for example, stretch wrap to stabilize pallets, those interest poly we use. we recycle we aren't using virgin polyethylene >> there is a lot who watch this show i'm sure they immediately perked up when you said that, because they're worried about landfills and waste. how do you get the raw product >> we go to a variety of distribution locations for example, a walmart would be a distribution location we would target grocery store chains we would target distributors of any type, boeing, for example, a lot of their parts come in plastic.

>> okay. >> so we get that plastic from them recycle it, put it into a deck board. >> i know you said seasonally, obviously when construction slows down, a lot of people are worried about the decline of the consumer related to housing because of higher interest rates. how do you feel about higher interest rates do you think the fed is done or does it need to keep doing? because maybe you hope to find more workers if they slow the economy. >> well, number one, i don't think that the fed is going to continue to reduce or increase the interest rates i just don't believe they're going to i think they're seeing the impact of what they've done thus far. i think we'll probably get a rate increase momentarily, but i think they're going to slow that increase from our standpoint, it really doesn't affect us that much. we're basically a consumer product. so consumer confidence is the primary driver for our business. >> okay, last question there are a series of other companies that have come into this business. i know one fellow who left 3m to

work on one, and we know there is some that has just been acquired how about the competition? what market share do you have in this kind of material? >> well, based on reports from our top two competitors, they're growing about mid single digit this year trex will grow at about 12 to 13%. we've been doing that consistently over the past four or five years. so the trajectory and market share is expanding quite significantly. we're approaching 50% market sheraton wood alternative. that's not what we're focused on we're focused on wood. wood, all the composite manufacturers only represent about 17% of the market. 83 is what we're doing after >> you got your eye on the prize. that's jim cline, president and ceo of trex. a very interesting stock for those who own homes or don't or thinking about buying one. i use the stuff. saving me a lot of money "mad money" is back after the break.

"lightning round" is sponsored by td ameritrade it is time it's time for the "lightning

round. >> buy, buy, buy. >> sell, sell, sell. >> buy, buy, buy. >> sell, sell, sell. [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round. brock in ohio. brock? >> caller: hi, jim boo-yah from the buckeye state >> love it what's up? >> caller: i'm interesting in going defensive with warren buffett's favorite and 5% dividend yielder kraft heinz what's your take on khc? >> look, i am a guy that believes if you're going to own stocks, you've got to have some growth to them and that one doesn't have a lot of growth. yes, warren does it like it. i'd rather own berkshire hathaway let's go to alex in florida. alex >> caller: hey, jim. how are you? boo-yah. >> boo-yah what's up? >> caller: i wanted to get your take on ibrk, interactive brokers. i really like the company's platform i think they got a good thing going on. >> yeah, they do i think you would like to see more trading and i'm not recommending many financials right now because

there isn't enough trading but, yeah, it's a good -- it's a very good company. let's go to brenda in north carolina brenda >> caller: yes, boo-yah, jim. >> boo-yah >> caller: i just want to take a minute to thank you. you made us a lot of money on at&t stock in the past. >> well, thank you very much >> caller: you're welcome. but my question is with the stock kmi, kinder morgan, our cost basis is about 34,000 and it stayed about 23,000 now we lost about 11,000 on this should we sell kinder morgan when it goes up a little >> i'm sorry and thank you for the kind words. 5% yield, yield safe, but i just don't really like the pipeline companies because they have been a huge disappointment. for instance, i like enbridge. enbridge is a% yielder i think it's better than kmi let's go to jack in new jersey jack >> caller: jim, you're my

financial idol my stock today is stitch fix i own large quantity >> oh, boy, that was a bad quarter. >> caller: sell or hold? >> jack, that was a bad quarter. it was bad eni don't see why i recommend it i was a bad quarter. plain and simple let's go to david in illinois. david? >> a big boo-yah to you. >> all right >> caller: i want to thank you all you have down for me as well as all your other investor. >> thank you >> caller: and i would like your opinion on seven energy -- >> no, it's just okay. i had a big conference call for actionalerts.com club members. let's just put it aside right now. let's just put it aside. let's go to david in oregon. david? >> caller: hey, jim. hey, thank you so much for all that you do for your listeners >> quite welcome >> caller: today my question today is about zto express of

china, zulu tango oscar. >> yes >> caller: they're the ups of china. is this a buy, a watch or a walk away >> i want to walk away from that i don't need any china exposure with our countries really going at it hammer and tongs let's go to don in massachusetts. don? >> caller: hi, jim how you doing? >> i'm good. how about you? >> caller: pretty good, thanks hey, jim, i just wanted to say, i like david do see a resemblance to tom brady [ laughter ] >> that is good, man that is good >> caller: i thought you would get a kick out of it >> i like that how can i help >> caller: all right what are your thought on t dock? >> teladoc is speculative. younger people might want to be in it. but it is very speculative

because let's say it ain't no merck. let's go to rick in wisconsin. rick >> caller: how's it going? boo-yah, cramer. i'm from milwaukee. >> all right >> caller: appreciate what you do for the little guy. >> thank you, man. >> caller: hbi >> no. >> caller: hbi >> look, it's got the yield. but i need growth. guys, you have to understand i look at the at&t yield and think there is some growth there is no growth, and i don't want to be in the power business right now. it's too hard. let's go to brian in new york. brian? >> caller: ba-ba-ba-boo-yah from brooklyn, jim. >> there you go. brooklyn strong. see you at the longshoreman tonight. what's up? >> caller: fall is looking good. bringing you a little magic again this year i hope. >> oh, yeah. nine is back nine is back what's up? >> caller: my stock has been behaving like the new york football giants. it seems to go down and down can you help me out with dow dupont, jim? >> hey, i met pat sherman the other day. he is a great guy.

it's an action alerts club name. i think it's going to break up next year and make you a lot of money. you should be a buyer. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is >> the "lightning round" is sponsored by td ameritraderee, 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. ♪

who should be blamed for the slowdown here in the u.s., which grows more pronounced by the day? is the president more at fault or the federal reserve in other words, what's doing

more damage, the trade wars or the talks of more rate hikes i keep hearing people debate this question, but honestly, how is it even a question? the fed is the problem it's when the whole thing started rolling over, for heaven's sakes when powell started saying negative things about what he had to do to stop inflation. i know trade war is bad news for our family, at least short-term and the stock market absolutely hates it this is a small price to pay to keep china in check. china has been engaging in economic warfare against the rest of the world for decades, outright stealing intellectual property i think we need to do what is necessary to put a stop to the stuff. it's not like china is some friendly bastion of democracy. we're talking about a communistic dictator standing up is going to cost something. the president just gave our countries one of the largest tax cuts in history. sure, it may be that tariffs hurt some companies, but business just got a huge windfall trump has an excuse.

what the heck is the fed's excuse from piling on with the rate hikes i'm constantly talking to ceos who do business here and abroad. i always ask them about tariffs because tariffs do matter. the executives are so much more concerned about the federate hikes, they always change the conversation that's top of mind that made them pull in their horns. in fact, the myriad execs i speak to, only one, greg hayes, the ceo of united technologies said he is more worried about the consequences of full employment that he can't find all the workers he needs than he is about rate hikes. on the other hand, most of the execs i talk to understand why the tariffs are necessary even if they don't like them. to borrow a line from miller's crossing, you do things for a reason love or hate him, he has a reason to crack down on china. the policy didn't come out of nowhere. so what's the reason for the fed's policy of continuing to tighten? i heard people say the banks will get hurt if we don't get more rate hikes, but the bankers i talked to no longer feel that way because they aren't able to

charge enough for loans to make up for what they need to pay depositors money how much the bank pays you not long-term rates which control how much they can charge for say a mortgage plus, the bankers have seen inverted yield curve developing if the fed keeps tightening next year they're worried about heading into a recession next year because the fed is willing to overshoot in order to stop wage inflation, although the fed seems to have backed away from that some little bit and that caused the market to get -- remember, he crushed the market by talking about overshooting. they are also worried about loans to the oil patch after this nasty clash it's true the price of oil could give consumer morse spending money and more money chasing fewer goods, well, that could cause inflation. but the companies that use oil and gas as a feed stock or for energy, they should be able to pass on to some of their customers which would be deflationary of course, if the higher prices stick, that's pure inflation they should lower the prices i'm okay with min w unmore rate hike tomorrow. that's all right but believe me, if the business

people i deal with thought the president's trade wars were at the heart of this slowdown that i started predicting by the way in october, i'd be shouting from the darn rooftops. believe me so, would they. but they're simply not saying that i only know what they tell me. it's almost all in the fed yep. the fed can make or break the economy. and the stock market that's why tomorrow's meeting is so darn important. the wrong decision could be disastrous for stocks. but the right decision would get let's say a more positive backdrop and perhaps even an oversold rally that lasts into 2019 stick with cramer.

a huge cut in numbers. fedex, huge cut in numbers fedex, huge weakness in europe this is what i'm talking about there is weakness all over the globe. and what are we doing? we're tightening i accept we have to do one, just because i don't want any panic like i always say, there is always a bull market somewhere i promise to try to find it just

for you. i'm jim cramer 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." ♪ is a low-calorie version of a favorite breakfast treat. hi, sharks. i am ashley drummonds. and i am josh mcclelland, and we are from tampa, florida. our company is abs, and we are seeking $120,000