. >> and this was a feisty show. did it feel feisty to you? and the fact you knew what going to the mattresses was tremendous. >> i read the book. >> i'm in the chicago americaen tile exchange across the street. >> comes out cme. >> back here 5:00, "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. i promise to help you find it, "mad money" starts now hey, i'm cramer. welcome to "mad money. i'm just trying to preserve some capital. my job is not just to entertain but to educate, teach, call me at 1-800-743-cnbc or tweet me at jim cramer if you're buying stocks, it's okay you just need to know you're fighting the fed, okay and that's not a fight many people can win

it's as simple as that down plunging, down 500 like i said it would be the s&p plummeting 1.5%, nasdaq nose diving 2.17%. fed chairman jay powell doesn't care about appeasing investors in the stock market. he doesn't think it's his job. i get that he wants to slow down the economy so we can avoid a lot of inflation. i sat there like many of you and listened to how he talked in the press conference he made it crystal clear we need more rate hikes, at least two more that's what he said. there are a lot of mistakes in judgment about what powell's quarter point hike and his plans for two more mean for the stock market i said the stock market, that's my bailey wok. i know it. i'm not here to opine about what would be the perfect monetary policy from the perspective of the economy or not the ivory tower academic i care what it means for your

portfolio. i care what it means for how much money you're about to lose. i care what it means for how we proceed from here. first, i heard a lot of people say that powell struck a perfect balance, a well thought out plan good for stocks, perfect thread of the needle. what plan are these people on? remember october when the economy was just peaking, powell told us that business was so strong we needed one additional hike this year and three more next year? he said he might need to overshoot with the tightening in order to maintain inflation. he could not have been more wrong. what happened? the stock market got killed. they know nothing! now, though, inflation is a lot more subdued than it was in early october. the economy's obviously slowing on many fronts, and even the fed is cutting its forecast for the gdp. so what does powell do he hikes rates

thanks he didn't drop the idea of more rate hikes with a how about we do one and wait strategy, he made it clear he thinks there's too much growth in the economy there's still too many jobs, too few people to fill them, so the wages are going to go higher sure, he sopped that labor participation could be higher than he believed, something i believe in, but that's not something he's banking on. let me put it simply, powell wants a slower economy than we have he wants one that hurts main street that's his plan. he has his reasons, but please don't go into denial here. the fed is perfectly happy to gradually strangle the u.s. economy in order to stamp out inflation, and that's bad news for corporate earnings, which means it's bad news for you. if anything, you know what i was surprised at how well the averages held up today you could argue that we should have been down a thousand dow points would have made sense. would have made a ton of sense given what i heard and all the

thread the needle pathetic justification nonsense that was hap heaped on powell because the market was so oversold, the downside was more limited. lots of people have already sold their stocks because they fear the fed's rate hikes and the economic slowdown they've created as well as the president's trade policies and some of the global slowdown he's created. i can't blame anyone for se selling. the rate of return for risk free assets, certificates of deposits, cds keep going higher. you can earn 3.5% for five years without doing anything count me in. that's a lot more satisfying than trying to play this treacherous market, at least for your retirement money like i'm dealing with only the fact that so many people have already bailed cushioned us from a huge fall. people are saying that powell has become more dated than he was before the meeting you know what? that's untrue. it's untrue if you actually listen to what he said, maybe you have to get some q tips, maybe you have a problem with listening. powell's saying that inflation is more subdued, yet he still

needs to raise interest rates. that's not data dependence it's data indifference powell's saying that those of us who are worried about a cooling economy should recognize that employment is very strong. he's saying that people like me who are very concerned about job losses caused by fed induced slowdowns in housing, construction, oil and gas, manufacturing, freights, autos, paper, chemicals, christmas retail sales, apparently don't know what we're doing. he's saying his homework is better than mine sorry. got the grades today, they're called the averages. man, oh, man, are they ever kas ka cascading. i sincerely hope he is right, i'm not rooting against you. i would love it if this economy's doing much better than i believe, but sadly i think powell's the one who's wrong and his apologists they must have no sense or empathy for what's ability to happen to the working person in this country know that. president trump picked a man who

turned out to be very independent. independent federal reserve chairman that is terrific for the institution of the federal reserve. it's not so terrific for the economy, and the president is really right to worry about a possible recession this year he's spot on the president's spot on because as i see it, powell's pretty much saying he may need to take rates higher to slow down hiring, a hiring slowdown is going to lead to a recession pretty easily. if i were running trump's re-election campaign, you know what jay powell would be my worst nightmare. he's an old school inflation hawk who's as confident in the economy as he was back in the beginning of october but he's now mindful that others, others think differently, not him that's what changed. there's some real cosmic irony in the fact that if president trump had kept janet yellen in place as fed chief she's be taking a much less aggressive approach here. i believe she would have said it's time to pause when you consider the more

subdued inflation including the total collapse of oil prices, it won't hurt to wait and see powell says that he sees moderate growth in the future. let's tighten two more times, not three more times i know you all want to criticize her successor, that's not in her dna, but i think she would have been a lot more prudent and a lot less reckless with these plans. reckless oh, and news flash, powell may not sound reckless he may sound reasoned. oh, does he look the part? yeah, but the only people who should be really happy about his statements are the rich. their wealth will be preserved if you work for a living, you're finally getting a raise after a lost decade of wage growth, powell wants to put a stop to that i think that's his goal. again, yay, the rich don't have to worry don't have to worry about a slowdown because you know why? you only need to get rich once but the not so rich, sorry,

sorry, sorry in jay powell's dogmatic world you're making too much money as it is. here's what stocks will typically do for the next few tas, on day one all stocks go lower. on day two the stocks that do better in a recession start to rally, as long as the yield and the benchmark has plummeted to 2.7% signaling a severe clorox strong economy to grow their earnings jay powell assured us we won't have a strong economy. thank you. health care bounces, that's about it bottom line, i am disappointed in mr. powell because he was so darn bullish about the global growth at the beginning of october he couldn't say that he was too optd optimistic and now he needs to be more concerned about the downside than the upside the result is bad news for the economy and the stock market oh, and for you. sorry my friends, that's really all there is to it let's go to mark in ohio, mark. >> caller: yeah, jim, thank you for everything you do for us all

us investors. >> thank you. >> caller: i greatly appreciate it. >> i have other forces against me that are more powerful than i am, but thank you. >> >> caller: we've been watching since 2000. you do a good job. i can't thank you enough. >> i need it today today was just -- i was steamed today. >> caller: i have a two-part question i'd like to ask you if that's okay. i've been following along with the canopy growth stock, and the tilray now getting involved with two other companies, i think it's novartis and enbev, would that be a good investment? >> not in this market. i thought the stock would be up 10 this market's it's barely up i like canopy. they've got more money than tilray i've got to hand it to tilray, this was good, and yet the stock is all the way down. it's still a $6 billion company. tilray is okay if you can get it for below 82 that's good news i didn't see enbev coming.

i changed, not the fed, me this is what fighting the fed looks like welcome to ver dud, what a wild one i'm sitting down with the ceo to find out what the has to say could pessimism be peaking i'm going to find out, and all eyes on eli lilly with the stock moving higher after updating its 2019 guidance, dividend boost, wow. i've got the ceo all i can say is please stay with cramer. >> don't miss a second of "mad money" follow @jim cramer on twitter. send jim an e-mail to m madmoney@cnbc.com. or give us a call at 1-873-cnbc.

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look at micron, it makes all the rams and flash memory. two basic building blocks found in all sorts of devices from pcs to smartphones the stock's been going lower and lower as investors worry about pricing for rams and flash chips. turns out those worries were well founded while the actual results were fine, no surprise, the guidance was hideous. wall street was looking for $73 billion in sales next quarter. it's probably more like 5.7 to $6 billion a buck 65, a buck 85 analysts were expecting 244, why because of an imbalance between supply and demand. this has always been the stock's downfall chip prices rise even though micron's stock was down nearly 50% from its late may highs, the darn thing lost another $2.70 or 8% today. is all the negativity been baked into the share price or could there be more downside

let's take a closer look with s sanjay rocha to get a better sense of where his company is headed and after this brutal forecast what's next welcome back to "mad money." >> hi, jim, good to be back on your show. >> we've got a deal with the notion of something that you call an air pocket you say that this can end and that people basically should be willing to ride through it as you keep buying back stock give me a bull case which says that the stock may already be bottoming and pricing in a turn in the second half of 2019 >> so, jim, what i would like to point out to you is that the end market demand drivers for memory and storage continue to be strong when you look at some of the recent reports from enterprise customers of ours, their reports continue to show solid growth. you look at hyper scale cloud operators, they continue to show

us solid growth in cloud as well in memory and storage are very much at the heart of these trends what we have experienced as you mentioned earlier and i mentioned in the call yesterday, air pocket built up by our customers, and what we anticipate is this -- might be cleared wup with our customers y the end of first half of this year within couple of quarters and at the same time we have taken decisive actions to contain supply others in the industry have also announced actions related to supply cutbacks. those effects on the supply side will result in supply coming into better balance with respect to demand and a second half of calendar year to be improved compared to the first half the most important thing is that the end market demand drivers for memory and storage continue to be vibrant. our customers' demand is strong. our customers' demand from us is

impacted in fiscal second quarter because of the inventory buildup, and then supply cutbacks will kick in. >> let's talk about the inventory buildup. when you were here last and it was after a great analyst day, i know that you kind of felt this would be a little bit different, that there wouldn't be this double ordering and a surge of supply, and then you'd go back down it seemed like it was a little bit more like the way it used to be what can mitigate that, sir? >> i think what you have to look at is over the last couple of years, the dram demand has gone up substantially as d ram really has built strong value in the end market applications such as cloud, such as automotive markets. this demand has gone up over a couple of years, unprecedented levels of pricing and unprecedented level of demand over a couple of years, and that led some of our customers to build up some inventory because they were fearing shortages. so yes, we are in that air

pocket where this inventory has to be cleared from the customers, but, again, the main point is that the end market demand drivers continue to be more diverse than they have ever been in the past because now you've got cloud you've got data centers, you've got graphics applications, mobile, pcs and of course automotive industry, all of these need more memory in order to ultimately deliver the value in their applications, in their end markets. so that's very different from times in the past. >> you have been buying back stock. maybe it's okay to pull back, let the stocks go under the 2750 book value, get a little bit better value why stand there and get your head beaten in like you have for the last 30 points >> well, we plan to be disciplined in terms of managing our share buyback. we have announced our intention that 50%, at least 50% of our free cash flow will be putting

towards share buyback. in our fiscal q1, we bought almost 80% of our free cash flow and put it towards share buyback. we plan to continue to do so on a disciplined basis, at least 50% of free cash flow going toward share buyback because we believe that in the long-term the market for our products are strong micron is in a very different place. we continue to gain on cost competitiveness, narrowing the gap with competitors on the cost side as well as building a portfolio of high value solutions, which really assures us of strong profitability in the future, and we are confident about our future, therefore we'll continue to investigation because we think from a long-term point of view micron stock is a great value >> one last question, is there any way, sir, that everybody cuts back pretty much at the same time? you guys been cutting back, and we get an earlier bottom than the second half of 2019? we had an earlier top, is it possible to get an earlier bottom >> you know, jim, it's always

possible, and typically the second half of the calendar year tends to be seasonally stronger for our industry that's why we are saying by second half we expect industry fundamentals to be improved compared to the first half. >> excellent okay, look, buying back stock, believing in the situation, definitely much better than it used to be i will say that. it's been a big decline, and we're mindful of that. thank you to sanjay, the president and ceo of micron. "mad money" is back after the break.

we spent the last few months gnashing our teeth and tearing out our hair as this market induced vertigo whips us back and forth. today was no exception as the fed's hawkish stance turned a nice rally into a horrific selloff, and as i said at the

top of the show it was hawkish people panic, and the pessimism becomes palpable panic is not a strategy. that's why tonight we're going off the charts with the help of carly garner, a brilliant technician who's the cofounder and the awe tuthor of higher probability trading to get her emp empirical take two weeks ago when everyone was exuberant about a potential breakout on the upside, now we're testing the low end of that range. that makes sense we're pretty oversold garner thinks the pessimism is peaking. we're down dramatically and sentiment is incredibly negative for example, the cnn fear and greet index, this index runs from 0 to 100 with 0% representing extreme fear, 100 extreme greed. right now it's at 6.

that was before the fed meeting. the investor intelligence survey is hugely bearish. is this the most negative the cnn index has been since the markets sold off at the beginning of the year. both those declines were temporary and great buying opportunities. you've got to wonder if maybe the selling is going to exhaust itself it would be easy to tell you the sky is falling after that fed conference, and honestly, the fed calling for two more rate hikes when it knows the gdp is slowing. that's a serious problem come on. remembers investors get incredibly pessimistic, just like they peak when investors have too much optimism when everyone hates the market, that means there's no one left to sell. have we finally gotten to that point? as garner sees it, the latest decline is breaking the spirit of the complacent bulls, and that's the stuff bottoms are made of. the price of oil stabilized for the moment, and long-term treasury yields have pulled back substantially from the highs it's fallen from 3.75 down to

2.76% yield. that was incredible. those are both positive for the stock market eventually. you know what really has garnered feelings optimistic, this is an odd one, the dollar, which has been the bane of existence to many of the international companies that are headquartered here a strong currency is just horrible for domestic companies that rely on exports and ever since april the green back's been on the rise, not good when the dollar goes up our stocks tend to go down and vice versa. when garner tells us that the dollar could be rolling over here, i don't know a soul who feels this way other than garner, i don't. it would be good news. take a look at the weekly chart of the dollar index futures traded on the intercontinental exchange, which measures the vl of the dollar against the basket of foreign currency. the williams percentage r oscillator, two really important momentum indicators suggest the dollar is overbought i get that, at least it's

overheats meaning it's come up too far, too fast and it's due for a pullback the green back has been bumping against the ceiling of resistance it's kept a lid on it since last year a legitimate roof. a weaker dollar could be on the rise giving a real boost that would be welcomed how about the stock market itself check out this chart which shows the historical pattern in the s&p 500 over 30 years. this is an amalgam, of historical patterns. right now the seasonal patterns are so in your favor this is the end. this is where we are, okay i know it doesn't feel like that, does it? this s&p tends to rally in late december that doesn't mean it will happen again. all else equal, you want seasonality on your side the other day i said seasonality hasn't worked at all gridlock hasn't worked at all. maybe this doesn't work at all, but it's important to see. now take a gander at the daily chart of the s&p 500, technically the s&p 500 mini futures that trade 23 hours a

day including sunday night when i'm watching football. as far as garner's concerned th action paints a picture of a confused market. the s&p has been trading violently between 2570 and 2820, as money managers frantically readjust their portfolios, she points out that even at today's lows, the market is only down 15%. it's pretty much in line with most other corrections since the great recession. okay, so it's kind of garden variety. now, the s&p 500 melted below its floor support today, 2570. it fell to 2507, some people think that 2,400 here we come. we ended up making a new low for the year garner says that could be a positive development, positive because it likely wiped out many of the lingering stop loss orders floating around as long as we rebound from these levels back above 25, 30, we go back up here, take out -- go back from what she think ss an

outlier thing, garner thinks we will have more upside. it doesn't hurt that the williams r percentage oscillator index, now they're deeply oversold let's see, that's oversold there, oversold there. good-bye opportunities and it's indicating we're due for a bounce if we get that bounce, garner could see the s&p climbing back to 2820. woul would that be welcomed. she could see the s&p breaking out to new all-time highs in the first quarter of next year as crazy as many of you think that sounds. then again, if you come out three months ago and told people the s&p 500 would plunge by the end of the year, they would have called you a nut job, too. okay monthly, okay. for garner, this chart is a revelation, okay it's all booker revelations.

it suggests the s&p has been trading at a fairly wide channel since the financial crisis with the floor at 2325, and the ceiling around 2950 to 3,000 okay it's a channel now that the s&p has fallen below 2530, she says the 2325 is the new floor down another 7% from here. ouch that's a lot more downside it turns out this is a very binary moment. either stocks bounce tomorrow and we can maybe make a recovery or we keep falling which way will it go when you look at the relevant strength index, these indicators are flashing the most oversold reading since 2008 remember, we didn't bottom in 2008, but that's a nice comparison, ten years, huh in short she thinks the 2017 rally got a little ahead of itself so we need it spend 2018 digesting these enormous gains maybe we need another pullback

to finish the process. from a technical perspective, garner believes the recent declines are unremarkable. you could make the case the stock market's uptrend is skbint and they'll potentially get back on track sooner or later if she's wrong we could easily see another 7% decline from here, and that would be horrific if the s&p does pull back to 2325, garner says you want to be a buyer, not a seller. wow. bottom line, the fed just committed us to two more rate hikes next year borrowing, i don't know what, thermal nuclear war it sounded like. if they stick to that plan i am not optimistic about what it means for the stock market garner suggests the pessimists may have gotten overblown here, and there's a case to be made that the markets could be ready to rebound, although she could just as easy see a further 7% decline here perhaps you should keep your head down.

where am i i know that markets really oversold i kind of want to split the difference i think we can rally and i think we get slammed again why? because the fed is not on your side james in new jersey, james. >> caller: yes, on your 9:00 a.m. segment, a screen shows the direction of the dow implied opening dow futures and dow fair value what is dow fair value how is it determined, and how can it help me in stock picking? >> it really can't it's just a formula where the futures should be. there's a time value of money that's involved. all you want to do is the direction, okay? if you see the direction down a lot, what that means is the market's going to open down a lot. i find it silly to look at frankly. i think you should be looking at the stock market and individual stocks, not the futures because boy have they ever been dead wrong the entire 2018, the entire 2018. all right, today was brutal, but predictable because the fed stuck to its plan. i expect more pain

the charts say there could be a bounce, though maybe not for a while. hmm. "mad money" ahead, my exclusive with eli lilly there's a stock in this lousy market could the drug maker deliver in the year then there's earnings and losses, how is the latter impacting the average plenty and rapid fire, the lightning round. stay with us cramer.

you know what managed to go higher today eli lilly, the big pharmaceutical company with a stock that's been a huge winner this year. today eli lilly held its investor meeting and the company gave a very bullish forecast for 2019 it doesn't hurt this is exactly the kind of stock that works during a fed-mandated slowdown, including the dividend boost this morning we got a chance to speak with david rich. he's the chairman and ceo of eli lilly. we were at the new york stock exchange this morning, take a look >> big day, big day because not only have you given us a

pipeline and an outlook that is far better than expected, but i think people are going to love the fact that you boosted the dividend a lot >> it's an exciting day for us, we're announcing our capital markets, an increase in the dividend 15%, our biggest increase in a long time. that reflects our confidence in the growth of the company. we updated guidance and putout guidance for next year, which is despite the cialis patent expiration. >> one of the things i like about lily is you put the headwinds out immediately. i want to talk about the tail winds, migraines, ra, diabetes, cancer, these are things that are extraordinary. can you point out some of the things that will be real step functions that will make it so that while lilly is growing well, it could grow even faster? >> this is a great time to invest in science. we've launched ten new medicines in the last five years we expect ten more in the next five years you touched on the key categories, starting with diabetes, our biggest business the key driver of a product,

trulicity which helps patients control their diabetes and lose weight 20 plus %, that's a key driver in helping millions of patients. in immunology, two key products, we have one for spsoriasis, whih is off to a great start. it should exceed over a billion dollars and lumia for ra which just launched in the u.s. and last year in europe. the u.s., the label we had some trouble with the fda in europe we have the full label, off to a great start. >> let me stop you for one second standard of care right now is a drug called meth el trek sate. it's been the same for 50 years. people aren't that happy for it. there are many people clamoring for the same dosage they have in europe to get off of metho and change people's lives dramatically how long do you think it will take that we might be able to get that drug dose bumped? >> it's difficult to speculate on the time line we need the food and drug

administration to agree with us. we've been consistent through time that the totality of the data -- that's not the state today, only 2 milligrams for use by doctors and patients burks but we're in conversations with the fda. we'll continue to create more data to make our case to have the highest dose available for ra patients as well. in some types of that disease it was shown to be more effective. >> i want people to know that a -- conceivably could be the biggest drug, this could be a gigantic drug. >> we're optimistic about it i think in the long-term we'll win that argument. there's also new indications for lumia coming we expect data for atopic dermatit dermatitis this is an itchy skin condition where there's been new breakthroughs. it's very common, otherwise known as eczema, and we're looking forward to that data,

too. >> we got to talk about your migraine drug, and the reason why i talk about it is because it's terrific, but tev is already out there. what is the superior profile you have otherwise i think doctors are going to say it's tolerated. we're not going to switch over to lilly's drug. >> these three drugs, they work in similar ways. that's true, but we've had decades where there's been nothing new for migraine 30 million americans suffer from migraines. about half of those have moderate to severe, which these drugs are indicated for. our drug cuts the number of migraines per month roughly in half if you have what's called moderate migraines, in our study you have nine a month. nine out of 30 days a migraine some patients had complete migraine free months, which is dramatic these drugs are changing the lives of a lot of women, middle aged women in the middle of their life it's an exciting time. how will we win? we're three or four months

behind it's a horse race between three great companies. we have some skills that we think will come into play. we're good at reaching consumers. we built that capability around cialis. >> and you're much better frankly than the other two i know. >> and we also think we have the best delivery system, the same device we use with trulicity we're using for these migraine patients this is a primary care, you want an easy to use device pabtients can use at home. >> 30 million people say it. diabetes, that's one of the things i love about lilly. it was a few years ago where people said it's a failing diabetes franchise how did you energize things? you can't take credit for all of this stuff, but i think that you have created a growth stock out of something people just say, oh, that's a good stable company. >> ten years ago i think we had really lost our way in diabetes, and over invested in other

areas. the core of the company has been serving patients with diabetes almost 100 years my predecessor made a decision to invest in that, enrique runs that business for us he deserves credit for that turn around it's a combination of investing in the science, the right science, and our recent data on terzipitide which we put into phase three studies. it could be a breakthrough for type 2 diekts. we' -- diabetes. connected delivery systems using the power of digital technology to enhance their experience. that's coming next year as well as just execution on the ground, communicating bet we ater with patients and doctors, running a good organization with our payors so we have the right access for the products diabetes up more than 30% last year in the u.s. >> accelerated from the beginning to end to market, you're talking about making it fast tore get a drug to market than anybody else. >> exactly this has been a program we've been under for five years.

we did some benchmarking at that time and said we're one of the slower companies we have to be fast patients are waiting for new medicines and it drives tremendous value for our stakeholders if we can move more quickly. we've undertaken a successful program to go from roughly ten years from first human dose to market to something like seven and we think we're among the best we're not stopping there our end goal is to get to as short as five, which is cutting in half the time to market, i think every patient wants that. >> do you think the regulators understand how much money is lost before a drug comes to market and how many years you have to put in of hard work before it can reach fruition >> i think regulators do i'm not sure our critics in payor community or the pricing debate understand that it's a risky business, enormous amount of kaptd, and there's a high failure rate. you have to be on your game to r run this successfully and produce new medicines for pashtss. >> -- patients.

>> one of my favorite companies is a company called alanco can you -- i know you want to capitalize, i know you want to sell eventually the 80%, but we also know that it's an unbelievable company can you scale out of it, or is it just better to raise that money now? >> we've said we expect to spin out the 80% ownership we retained, and that's a normal thing to do in the ipo process. >> you're so good. >> it's a great business the fundamentals are amazing, built on food and pets, but it's not as similar as you may think to human pharma. i believe in the power of focus, so does jeff simmons and we think we'll retain relationships on technology transfer and other things, but we'll be better to focus on our individual missions, which are distinct, humans and animals, as separate companies and create some value for shareholders. >> you have. the fran chaise, best in class what you guys are doing for r.a., best this class, what

you're doing with cancer, just amazing. look, congratulations. >> thank you, jim. >> thank you for all the things you do for shareholders. dave ricks, chairman and ceo of dave ricks, chairman and ceo of eli lilly. ♪ dave ricks, chairman and ceo of eli lilly. not long ago, ronda started here. and then, more jobs began to appear. these techs in a lab. this builder in a hardhat... ...the welders and electricians who do all of that. the diner staffed up 'cause they all needed lunch. teachers... doctors... jobs grew a bunch. what started with one job spread all around. because each job in energy creates many more in this town. energy lives here.

it is time it's time for the -- and then the lightning round is over. are you ready? i'm going to start with matt in indiana. matt. >> caller: jim, go colts. >> oh, man, go frank the best. what's up? what was that? i was too busy making stupid noise. >> never takes a vacation. let's go to kevin in new york, kevin. >> caller: hey, jim, how are you doing? >> i am doing quite well thank you for asking how about you? >> caller: not bad jim, my stock is teva

pharmaceuticals. last quarter they blew out earnings, specifically they're projected to blow out earnings again this call. they have a huge pipeline of drugs and the stock is dirty. >> well, i think the problem here is they've got a huge amount of debt, and in this environment debt is not king sell sell sell let's go to david in -- no no, i got to take my aggression out. let's go to david in california. david! >> caller: booyah from cambria, california how are you, jim >> good, i'd like to move there. what's up? >> caller: hey, my question is on ford's stock. i've owned it for many years i like the dividends and i'm wondering if it's worth getting -- >> everyone keeps saying the next year is going to drop i have to tell you, i don't want to reach for 7% yield. i got enough problems on my mind

right now, right here at this mome moment when is my wife going to come home from work before 11:30 at night? just trying to get the whole litany out there let's take one more, let's go to mar mario in california. >> caller: it's mario from su sy california i'm calling about washington prime group. >> 20% yield, what does that tell you if that's not a red flag what's a red flag? that's worse than having a touchdown called back when you're playing dallas. i don't trust it i don't trust it yeah, it's a little stock, but you could still lose everything and that one's scary to me i don't think you'll lose everything, but i don't like a 20% yield. am i done? and that, ladies and gentlemen, the lightning round. >> the lightning round is >> the lightning round is sponsored by t.d. ameritradedea.

so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪

how do you model a lawsuit right now we've good five situations where lawsuits are or could be front and center, qualcomm versus apple, johnson & johnson versus myriad users, the prosecution of goldman sachs for fraud, the district of columbia has announced a case against facebook over the cambridge analytica scandal and the serious possibility of litigation against -- let's take

them one by one starting with qualcomm versus apple. this patent dispute has devastated apple's stock more than anything else qualcomm's got a chinese judge in some low level court to rule in their favor banning sales of every iphone frts 6s to the x or the 10 as they call it why does that matter if you look at the chinese chart, if the party wants to crack down on apple, which is certainly a possibility given the trade war, that's bad news that's why this lawsuit is more important than the federal suit that's going to be tried early next year in san diego apple doesn't want to settle the potential for bad news just lingers. if this case goes against them, apple could have more downside the stock got crushed today off 3% if they come to a settlement with qualcomm, you know what i now think stockholders would benefit. johnson & johnson is being sued by about 12,000 women who claim to have gotten cancer from

asbestos in the talc two articles directly accuse j and j of knowingly selling a product that contained asbestos, a serious carcinogen allen carson denied these charges vociferously, okay said there is no asbestos in talc and never has been and therefore this whole thing about a carcinogen is wrong. the court that ruled against j and j rejected the company's motion to reverse that jury verdict. it's the same judge that did it that awarded the women 4. $4.69 billion. this is a real issue this one will go to an appellate court in missouri, not federal then come next summer a missouri federal court will consider the science and the facts and the way to making a ruling that could stick, and it could really hurt j and j if it losesment i know they don't want to settle, but i know that that's not their m.o. in missouri i think they can overturn the

missouri verdict on appeal, but it's not certain my take, the stock is already collapsed losing nearly $55 billion of value, but even the lead plaintiff's lawyer thought was excessive. this one seems like a buy, wait a week, see if the story dies down. the stock of goldman sachs has been way down where the government's going after the firm in this scandal it's also being investigated by the u.s. government justice department goldman helped set up the state investment fund which the -- gon the "new york times. i do bet it ends there it will be an issue for months, not weeks before we hear a cogent defense from the company. the stock's changing the discould wadi discount

facebook, what took so long. the district of columbia attorney general is bringing suit for violations of d.c.'s consumer protection procedures act. i predict that many more of these suits will be filed, and there's some great reputation risk if the smoke clears i will doubt once you see this stuff all in print, i doubt the advertisers will stay away facebook is too valuable for them respect the outside law firm to investigate the situation means there will be many more suits, not good but while this will cost facebook money, i don't see it derailing the business value. can we stipulate that as smart as these people at this company are supposed to be i question how stupid they really are as the customer is, by the way, guys, always right many are panicking that all allergen the danger was well-known. the bad news you're going to read many more articles about the sadness and the liability including what analysts say, get

this, could be negative legal exposure that could be on for a while because allergen's balance sheet is less than perceived the stock lost almost 7% of its value. and yes, once again settlements. every one of these lawsuits is serious. the stocks have already been hammered it's more headline risk going forward. if you can handle the negative headlines and be very patients i actually think you're getting nice long-term buying opportunities, but the operative term, please, is indeed long-term. long-term. tick with cramer ...& 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. vides 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...

you should be mad at leaf blowers.

[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. aller okay, listen, what do you do you need to stop inflation the way to do that is you stop the economy. that's what's happening. you know what's a little side car of that, you stop the stock market, and that's what happened today. i just want to be little more graphic. i promise i'd find it just for you right here on "mad money." i'm jim cramer

i'm jim cramer see you tomorrow maleannouncer: artis jackson has a chance for redemption. - let's go! my mother was on the very first season of "deal or no deal." she walked away with $5. - i see a familiar fate. - i took it too far in my game. - this is a different game. - this is a whole new game. - we breaking that curse today, baby. announcer: he's on a quest to reclaim his family's honor. - is it repeat? is it redemption? all: redemption! redemption! announcer: can he break the $5 curse? - this is kind of weird. you're kind of replaying your mom's game. - no! don't do it! don't do it! don't do it! - wait, wait, wait. announcer: or will history repeat itself? - what? what? what? [dramatic music]