>> dan. >> the near testimony could be rocky but july long call sfreds. >> check us next friday at 5:30 p.m. eastern opheim "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 cramer. i'm trying to make you money my job is not just to entertain but to educate and teach you tweet me at jim cramer patient. patient. as in the fed will be patient as we see how the economy evolves those sweet words from fed chair

jerome powell were all we needed to ignite a rally that almost no one saw coming dow up 737 points. nasdaq pulling more than 4%. this is literally what we have been begging for on the show since the first week of october. begging. almost since powell outlined his rash, dogmatic view on the need for four more rate increases, i have asked repeatedly that it not be done. that the fed simply tighten one more time in december and wait and see what the day that tells us somehow, this was regarded by many commentators as a radical position radical. how about reasoned bizarrely, no matter what i said about the weakening data, powell could not be shaken from the data the economy was red hot and we needed more inflexible rate hikes. he was inflexible. like many people, i began to feel powell wasn't targeting some weird model

he was targeting you you. that's right targeting employment itself. trying to drive down demand for workers. like you create some slack in the labor market for you yeah slack. that's what you were but when powell spoke today, he seemed to recognize while employment is robust, and we just gat an employment number that was terrific, more than 300,000 jobs added, the fact alone does not mean the fed needs to tighten nor does 3% and change wage inflation mean that we're entering some kind of republic situation where we'll all be paying for bread with wheelbarrows full of 100 dollar deutschemarks. this left us with a possibility of a save for 2019 just when so many investors had already written off the whole year the whole year, after the first week of trading. you heard it, so did i today is a day to celebrate the flexibility and the pivot that

jay powell took this morning it takes a lot of guts to go from saying we need these rate hikes no matter what or maybe even more than we thought in 2019, to saying this >> we're listening carefully to that we're listening sensitively to the message that markets are sending. >> i like that i like that. contradicted the very dubious words that the uber hawk cleveland fed loretta mester told cnbc this morning when she said the data was just one or two more rate hikes, but then again, maybe we should see the data can't make this stuff up but that argument makes no sense whatsoever you know what we call that circular reasoning with these tempered, thoughtful comments from towel, we're on terra firma. if the economy gets hot, we genuinely deserve more rate hikes. i ain't no negative rate hike guy. i just want it to be in sync with the economy if it gets cooler, fed holds

off. you know what that's called? rationality. i applaud rationality. i'm glad powell invoked it something that happens all too infrequently for washington. first on monday, the trade talks restart in beijing, and they're happening add exactly the same time china seems to be, i think, panicking. cutting reserve requirements to spur more lending. to what avail? more vacant apartments more factories to make things that won't be sold on the market anymore? i don't know, what are they going to do with the extra $218 billion in spending now that you can't dump it on us. if the chinese government wants to jump start their economy, they should cut a deal with president trump. they need to make some concrete commitments to let's say them to come in without these bogus shackles they need to say that they embrace all the efforts made by apple to keep people employed.

and china needs to agree to stronger intellectual property protection to the point where they're prosecuting people who steal our best ideas maybe make it a capital crime. i don't believe in the death penalty for theft, but then again, i don't run a communist dictatorship monday is also the kickoff of the most important health care conference of the year we'll be there i think it's going to be an amaze look atwhat's happening in pharma. this conference is so important that i think bristol myers and cell jean hgene had to merge bee yesterday, people are so negative it did well today. walgreens is the first big name we'll be interested in i want to know how they plan to stay relative in a year where everyone believes amazon can destroy them i keep hearing all these regional fed officials that say they're in touch with business in their area saying great things well, we're in touch with a lot of people here on "mad money." theyerant nearly as sanguine as the people the fed heads seem to

be talking to. on tuesday, we'll do this survey stuff. we're going to get the small business optimism index numbers and where bet they'll show a decided downturn as the banks are making a tiny bit more than they were making in cbs. i can't believe how great powell was today. hey, listen, when i dump on him, it's tough but when he does a good thing, i like to praise him wednesday morning, we have stz this stock has become one of the nastiest out here because of concerns about the slowing sells of modella and corona. that's not looking at the numbers here but maybe this is too small a sample and as well as billions of dollars they borrowed. the only canadian cannabis company with the money to go for the jugular. if they don't materialize, you know what. that was invisible ink $10 gain

we have two home builders reporting for duty lunaur before the open and kb home before the close. i think that'll try to put a good face on it, but the home builders were why powell chose patience over prudence today powell's speech today was such a game changer context, context keep an eye on home depot. they have a lot more thank you, stephanie might be worth positive news for home buyers. after close, we get results from bed, bath, and beyond. when people talk about businesses that will blink and start closing underperforming stores, they're thinking about bed bath, i wish they had a game plan besides buying back stock it's been the worst buy back in the history of following stocks, shoveling money into a raging fire inside a chimney. kind of like the guy with got junk you know

delta airlines preannounced numbers yesterday that scared the heck out of people that was wrong i don't believe they intended to be nearly as negative as it came across i bet they tell a much better story when the do the story on thursday the airline stocks have become ridiculously cheap again, and lower jet fuel makes them much too cheap to avoid delta is a good one to pick up i have been doing work on jetblue, and friday, we'll get our consumer price index i believe it will be negative and we'll praise jay powell for recognizing we have something special going on in this country. growth without inflation that's producing jobs galore for people who have previously thought to be unemployment and putting an end to the lost decade of real wage. the end of a lost decade where people made no more money than when it started. i call that actual wage declines glad that's over the bottom line, congratulations to you, jay powell you recognized the rational nature of waiting. the prudence of patience and the need to try to keep a

business cycle alive that many investors had already written off and left for dead. and to everyone else, here's my hope you can finally buy stocks again without fighting the fed daniel in ohio, daniel >> caller: hey, jim. dan from cleveland, ohio >> how are you doing >> caller: good. how are you doing? >> good thanks >> caller: i'm calling about ford motor company's stock today. i see it's at a five-year low currently. they also just marked their f-series truck as best selling in america again, 42 years now >> right >> caller: i also see it looks like today they just released a recall on several of their vehicles >> yes >> caller: now, as a young investor, could this possibly be a good entry point for a possible long-term value stock that also pays a dividend? >> for a young investor, i want you to go for growth i want you to go for stocks that could be -- where it could go to hundreds, maybe thousands of

dollars. ford's not going to do that. you need to think bigger you need to remember you have your whole life ahead of you go for something like -- a biotech stock that we discover next week. listen for one of those. or go for something that's a cloud-based company. but ford doesn't have the aggressive nature of what i'm looking for. brian in washington, brian >> caller: boo-yah how is it going, jim >> fabulous. how about you? >> caller: excellent thanks for having me i love you shore >> thanks a lot, buddy beyond that? >> caller: my question today is about square square pay i know they have a new cfo down about 40% off their highs from last year where do you see this thing going in 2019? and how much of your charitable trust do you put towards this thing? >> i'm not in square look, was i a huge fan of sarah friar. she's at next door, a product we

use at home. it's terrific. i would love to meet with the square people, because i think square does a darn good job. but then again, in full disclosure, we're a client of square and that's one of the reasons why i like them so much. congrats, mr. pal. thanks for recognizing what you needed to do to keep the cycle up, and i'm not being cynical. i'm proud of you you know, you made some mistakes you're back. "mad money" tonight, with two years into the trump economy, major reset last quarter where do stocks really stand now? maybe it's time to be a little less negative. then, new year, new buys i'm looking at the best and worst of the dow 2018, telling you which stocks are still buys and i'm going to out to san francisco next week. tonight, i'm giving you a preview of what to expect. 19 years doing this one. you do not want to miss it 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 ss setmiomhing head to madmoney.cnbc.com. [knocking] ♪ ♪ memories.

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click, call or visit a store today. this market is so volatile it can really make your head spin one day we're in freefall. the next day, we get incredibly bullish employment report. along with some very positive commentary from jay powell, and suddenly, we're rebounding like nobody's business. >> that was easy >> the averages have been seesawing like crazy, which is why tonight i want you to use this moment of strength to take stock of where we are right now. see, this move is so big, we can't just do a little game plan and ignore it. we have to put this one in context. you need the context specifically, let's talk about the whole trump era. like it or not, this president

has done more than any of his predecessors to associate the stock market with his presidency he likes it. so where do we stand two years into the trump economy by the end of last year, the s&p 500 was up 16%, up 10% from trump's inauguration in january of 2017. however, it had come down dramatically from its highs at that point it got derailed by two things. first, by trump himself in the form of the trade war with china. remember, i think he's just fighting back. they have been fighting us forever. i support him, even as it's bad for business in the short tem. then derailed by a hawkish federal reserve who wanted to raise interest rates too aggressively a one-two peunch and it turned the trump rally into the trump slump. these are both manmade everything here is manmade okay that's important keep that in mind. because anything that's manmade can be unmade.

and that's what's happened that's what happened today when jerome powell said he would be patient about raising interest rates, a big change from the previous plan for at least two more hikes this year no matter what, he gave the market a huge and justifiable boost, the powell pop. suddenly, the biggest negative had been removed and remember, i think that the fed is responsible for a lot of this okay the october 3rd outburst by jerome powell. and on monday, we have the trade talks with china who knows, maybe we get progress there too. i think the chinese had better be ready for representatives who know we have the strong hand and because if powell actually is no longer at war with the u.s. economy, we're in stronger footing when we go to china. i think the chinese are ready to deal i do moreover, i think they're ready to cave. their economy is not teetering, but it's alarming. for any government, even a

communist dictatorship how would the situation look if we no longer need the fight the fed and the trade war. one word wow. remember back in january of 2018 when the conventional wisdom was we were in the midst of the fabulous trump rally one that started when he scored a surprise victory in 2016 between the tax cut and the focus on deregulation, it did seem like nirvana for the stock market we had a roaring economy that was accelerating thanks to a business friendly administration at the same time we were enjoying tremendous worldwide expansion. it seemed crystal clear, crystal clear, that trump was a real boon to your 401(k) or ira i studied that in college. karl marx would tell you a government run by the buj waw zee is going to benefit them and something almost unprecedented was happening.

we had a rapidly growing economy without much in the way of inflation. that allowed the federal reserve to hold off on tightening too aggressively this is the context. for stock pickers, first year of the trump administration, it was the promise land from the night of the election to the peek pack on december 21st, it gave you a monster 38% gain pretty much anyone who could afford to invest in the market was winning. maybe they got tired of winning. more accurately, the federal reserve got tired of you winning. the sentiment about the stock market was dismal, a total switch that caught so many hedge funds leaning the wrong way, and so many sellers feeling downright stupid now, by now you know the ending. early last year, the president started cracking down on unfair trade practices in china i think the chinese communists are really bad bullies

and i think the tariffs are totally justified, but there's no denying this kind of thing is bad for business, at least in the short term if we get a favorable trade deal with the chinese that stops them from looting technology, i'm betting it will be worth it and we can actually have another leg up for now, though, the tariffs hurt all sorts of cheap stuff is suddenly 10% more expensive, and china has begun to scorn american products. apple's shortfall, they're doing well just about everywhere in the world, except in china and maybe india. in china, the sudden precipitous slowdown, it raises eyebrows we're talking about communist china. if the party suggests their citizens should buy home-grown smartphones, you don't want to be the guy shelling out money for the iphone maybe you're encouraged the chinese state doesn't encourage anything but huawei phones even though it's like picking a

sans abelt suit. worst of all, as i mentioned many times, in october, jay powell came out and warned us he was planning to aggressively raise interest rates something that caused a huge panning in the stock market that we're trying to recover from just as powell was telling us that business was really scorching, and we needed maybe four tightenings to cool it down, we started seeing signs that the economy was slowing real weakness in housing, autos, construction, chemicals, all the industries that tend to peak first. between the president's trade war and the government shutdown, the market kept getting slams. from the highs in september to the intra day nader, it had plujed 26% since then, we have been bouncing, including today's move, aided by a strong employment number and a fed chairman who has suddenly seen the light when it comes to what's happening in the economy. the s&p is up8% from the boxing

day lows the mark was up nearly 3.3%, 3.3% from president trutresidens inaugurati inauguration like we rolled back the entire trump rally. i think that's crazy at the same time, everybody was worried about a hostile federal reserve that doesn't listen to the president. after today, gratefully and thankfully, we can take that off the table. a bet a ton of money actually flows back into the market given powell's come around why wait until it's another 5% i think we can go back to trying to figure out this market in the old fashioned way. i think we're going to start thinking about how to value the earnings while some will not be so hot, there will be ones not constrained by china, because the others could be viewed positively through a prism of lower rates to make them more palatable, or to put it another way, in context, the end of the cycle chatter might be just that if we get a trade deal and powell is true to his word,

hence this amazing outburst of buying fabulous employment number, growth with no inflation, and a fed that gets it the cycle might live again you're going to hear that talk next week, my prediction thanks to the hideous fourth quarter selloff, the stock market is live behind its historical average to me, that means we should have more up side the companies in the s&p 500 saw their earnings growth by 70% 17 in 2018. these estimates might need to go higher the 10% gains i do not think captures the earning growth we have seen over the same period a move higher is justifiable here's the bottom line remember the terrific days of the trump rally when the market couldn't stop roaring higher i'm not saying they're back, but the fed's new path, on december 24th, the day before christmas, and today might not be the last

day where we roar higher stick with me. halftime report, weekdays noon eastern on cnbc

want to know why fed chief jeromepowell finally did the right thing today, spurring a phenomenal run after he told us he would exercise some patience when it comes to raising interest rates i have been telling you that the fed would eventually blink we just didn't know when how did i know simple i do the homework. the homework was painting a much bleaker picture than what we heard from the fed basically, they got slapped in the face by reality. powell said he's listening to the markets. consider the five best and worst performing stocks in the dow jones industrial average in the fourth quarter the quarter that began with powell lowering the boon on the market when he suggested the fed might need to overshoot with its rate

hikes to cool down a red hot economy. the biggest winner in the dow during the fourth quarter, how telling is this? this is what powell needed to listen to. proctor & gamble p&g up 10% when they're the best performer, you know something's wrong you're going to keep buying shampoo and razor blades, right? don't get me wrong, this is a high quality company, and ever since the big time investor landed a seat on the board, proctor has gotten belligerent when it comes to self improvement. their raw costs are coming down thanks to much lower oil prices. they use tons of petroleum to make the plastic packaging, and the company is figuring out how to compete better in emerging markets. mainly, proctor led the pack because it's a recession play, mr. powell

throw in the stock's 3.1% yield. treasuries going down, and interest rate, and its fabulous balance sheet and this is exactly the kind of stock you want to own if you're concerned about a slowing economy. after today's terrific jobs number, well, i don't know probably be less concerned, but you could at least understand why if you're jay powell, you say uh-oh, p&g next up, well, another uh-oh i think merck can repeat its 8% gain going forward why? because its main competitor, bristol myers. just shelled out $74 million to by celgene, and they wouldn't have done something so radical if merck weren't winning head to head trials against them yut cetruda is taking names. you'll hear it's got a rock solid balance sheet, and like proctor & gamble, it's a fabulous slowdown stock. you have my blessing to buy this in weakness even though we have the powell pow rally mcdonald's up in the fourth quarter. i'm loving it. i believe mcdonald's is about to

become a terrific technology company now that they can pick and choose what works in locations all around the world it's like a giant laboratory for him. before this guy took the reins mcdonald's struggles he's a compelling figure and once again, this is exactly the kind of company that is thrive in a softer economy so you now keep thinking about powell keep thinking about powell he should have been thinking, uh-oh, p&g, uh-oh, merck, and uh-oh, mcdonald's. but this was the real tell verizon. okay, i personally am tired of verizon going higher it gained 5% last quarter. i bet it has more upside it has a 4.3% dividend yield i expect the stock to rally. think of this as a one stop shop for investors who want a recession-proof equity with zero china exposure i still think it's a buy of the 30 stocks in the dow, only one more rallied in the fourth quarter, coca-cola. i would like to give the award to coke because it's a cheap

stock. this stock is hardly ever cheap, that shouldn't have been hit at all. with a 3.3% yield, accelerating growth, and their ceo, coca-cola is practically the perfect stock for this environment quincy is a smart guy. he's so right for the job. how about the five biggest losers in the dow last quarter well, apple is the worst, down 30%. what hasn't been said about apple that still needs to be said how about the fact its products are the envy of the world and even the people who bash the stock tend to do it via their iphones. is the stock right 93, it has china issues. it has so called innovation issues it has price point issues. despite all that, the company has something great going for it, a customer loving satisfaction ratio that's centered on its ecosystem. it's almost impossible to divorce itself, especially once you're trapped it in or loving it as i do supply constraint, earbuds, which were universally dissed at

first and are now one of their most popular items and they don't get enough respect for this business. oh, and you naysayers who think apple isn't innovative, other than samazon, do something this weekend. name me three or four companies that are doing anything electrifying anything i'm going to name one. yeah right? still, that negative means you need to wait at least 30 days before you buy the stock because no company bothers to preannounce to the down side if they think things are getting better goldman sachs, this has become ridiculous up more than 25% last quarter. this is universally low. i scream, you scream, we all scream about how much we hate goldman sachs. i think even my kids hate goldman sachs. the truth is goldman is one of the greatest wealth creators of

all time there are a ton of smart people there, and the franchise is unassailable, though the scandal needs to run its course and that's an embarrassment. anyone who touched that thing should be fired, if, well, except for the ones already being prosecuted goldman is a finance company, and those don't do well now because no one knows what tangible book value means these days right now, you get about $12 more than the stock currently sells for if they close the doors. i think it's incredibly cheap. you need to buy it and then be patient. the malaysian nightmare will end, and again, i emphasize that was horrendous but i think that you'll wish you owned some goldman stocks when it's done. third, there's ibm, down nearly 25%. this is tough. how about we declare them to be a 5.4% yielding bond i don't know how else to put it. ibm is basically a good bond and you know what. i like bonds in a world where the tenure yield is a little

more than 2.6% for years buying ibm has been a mistake, but maybe the right acquisition could turn things around my view for now, on the fence. next, i think another downright ridiculous stock that everyone hates so much. technology fourth worst performing stock. it lost 24% last quarter that's crazy united techis about to break itself into three different businesses i see as i see it, the company is worth 30% more than its currently selling for, but fair warning, i did say the same thing about dupont because of its breakup, and that's been a nightmare of underperformance thanks to the trade war and the work that needs to be done to get the thing split up this is difficult, especially in the wake of a huge merger, whether it's dow combining with dupont or united technologies. but i'm a stalwart in favor of this deal. finally, here's one i never recommend on the show. exxon. down 20% if you told me a few months ago we would be able to buy one of the best, most conservatively

managed companies on earth, i would have laughed in your face, but it's now a accidentally high yielder in a group that can't be given away i think oil is bottoming here. i said that at the $44 level it was topping in the $60s, and if that's the case, you can buy exxon. put it all together. and you can understand why we rocketed higher today. many of these dow stocks have already been humbled many of them are buys. bottom line, every time i hear some commentator predict that 2019 will be a disaster, i think about how the end of 2018 was so horrific, it brought the averages down to tempting levels, provided you're looking to own stocks for the long term and you're willing to be patient, like fed chair jerome powell maybe after today, we can finally accept that patience can be a virtue. doug in louisiana, doug. >> caller: buyeah, jim i'm in the oil business now for 37 years and i have a question about the midstream oil companies. >> yeah. >> caller: why are their prices

so depressed >> okay, this is such a great question i was trying to do a whole piece about it, but i feel like one, people don't think that furyk has, the federal energy regulatory commission has been negative for them. second, there's a huge belief that the demand is slowing down. that demand is untrue. but there's not enough new money coming into the sector, and then finally, i have to tell you, it's just so linked with oil, and oil is so hated that even though we need pipes more than ever coming out of the permian, the group is despised and a lot of pipes are in the wrong place. so i have not been recommending any of the stocks. can we go to amy in nevada amy. >> caller: hi, jim how are you? thank you for taking my call today. >> you're welcome. >> caller: i appreciate your advice i need your help >> what do you need? >> caller: i'm calling today i have shares in both microsoft and apple. and with everything going on today, i'm thinking maybe i should switch everything to

microsoft. i want your advice on this please >> look, first of all, my travel trust owns both microsoft and apple. i think they can co-exist. second, sacha nadella is doing a wonderful job at microsoft third, apple is so low, it's so low, and i know it can probably go like 15 points lower maybe, but i got to tell you, i think it shows tremendous panache in the stock today that it bounced. i expect more downgrades, but it's cheap and you're getting the service revenue stream for nothing. >> all right, 2018 was so horrific, it put some stocks at pretty tempting levels if you own for the long view, want to buy these for the long term, you could get some pretty neat opportunities tonight on "mad money," i'm getting a sneak peek into one of the most essential conferences in the health care industry taking place neck week in san francisco. before i head out to the west coast, you don't want to miss lisa gill's preview. she's been there 19 years. then, is the fed finally listening? i'm going to give you my take on

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great day for the market got some pure joy coming next week, though, because we're heading out to san francisco for jpmorgan's 37th annual health care conference. i'm so excited about this. it's a huge confrab. we'll be speaking to all sorts of movers and shakers. it's especially important this year if you're worried about a slowing economy, the health care stocks are exactly what you want to be in let's check in with, and i usually don't have analysts on, lisa gill, jpmorgan's managing director, to get a read on the industry and what's happening that we're going to see next week welcome to "mad money. >> thank you for having me, jim. i'm so excited to be here today. >> lisa, first, i need you to -- i can tell people it's a big conference they say cramer is given to hyperbole. explain what happens at this one and why you have to be there >> it's my 19th conference there's almost 8,000 institutional investors who come every year we have 300 companies that will present, and there's a lot of news that happens, whether it's

m&a activity we saw this week, there will be a lot of talk. great pricing panels around pharmaceutical pricing we'll talk to the biggest companies on the street really about what they're thinking about as we get into 2019. >> it seemed to me, we felt that bristol myers felt compelled to announce this deal with celgene ahead of the conference because you can't go to the conference and kind of avoid the elephant in the room. >> it's interesting because either you announce it before the conference or you have the initial meetings that lead to the m&a at our conference. so that's been the case for a number of years. every time you read the proxy statement, and they talk about where they started the discussion, it was at jpmorgan >> it does seem this is a great format i happen to think this bristol deal is amazing. this could be one plus one is three. am i being too bullish >> i don't follow the pharma biosector. >> but you do recognize that big pharma has left. >> what i would tell you is that when you think about consolidation within health

care, you look on the services side things that i follow, cigna and express scripts coming together, cvs and aetna. you have to think that others have to come together as well, because size matters >> right >> so you're going to see more of these companies in my opinion, come together because they're going to need to have a broader portfolio >> i have certain analysts who are go to, and lisa has always explained -- she understands this business, the distributors. but you understand the models. and the cvs deal is one that is not being talked about, where people feel it could be derailed by a judge and yet, i know you think it is the way of the future. >> i do. i think that consumerism is where we're at when you think about the biggest destructers in health care, you have talked about amazon and others it's not amazon, in my opinion, it's really going to be where the consumer wants their services it's going to be about value, it's going to be about quality, and it's going to be about convenience. if you think about those that can deliver that, absolutely cvs is deliver those you think about the store

locations, you think about the combination of pharmacy plus health plan with aetna, we think we're at the corner of where health care is going to happen >> we're speaking of walgreens on monday. does walgreens feel threatened by what cvs is doing >> i think that walgreens has taken a different tactic in trying to go the route of jbs rather than make a big acquisition. that's the biggest question i get and we'll hear at our conference next week >> who by the way, don't speak anywhere else. that's why i like this conference >> we'll do a fireside chat with them the only fireside chat in my universe, but people really want to know what their strategy is stefano is a really well known investor and has done well, but the stock hasn't done so well in the last year and a half or so. i think that investors would like to see them make an acquisition, do something big, maybe buy a health plan. he feels they're too expensive right now, but maybe he would get an opportunity at some point. in the meantime, he looks to do jbs, whether it's with lab corp or united health care or other

players. >> one last question do you expect anything blockbuster? who are you looking to really dazzle next week >> i look for cvs to dazzle a little bit it's our favorite name going into 2019. a few things i would highlight there is, one, they haven't really laid out the strategy completely i think it's a great opportunity for larry to really lay this out. and second, they're going to participate on a panel for us with david ricks from eli lilly. it's going to be a great opportunity for them to talk about how pharma and these new entities can work more closely together to solve this problem around pharmaceutical pricing, access, quality, et cetera >> i want to congratulate you on the franchise you built. can't wait to get there next week and you'll help us learn that's lisa gill, jpmorgan's senior director. "mad money" is back after the break.

it is time for the lightning

round. and then the lightning round is over are you ready? let's start with paul in california paul >> caller: hello, jim. how are you? >> i'm good. how about you? >> caller: great, fantastic. qualcomm is my question. i have a huge amount of it >> look, it yields 4%. i think they have the money. they can't lose the lawsuit to apple. the problem is, man, you are in cell phone hell. and i don't want you there because that is -- >> the house of pain >> let's not -- as it rallies and it can, i would do trimming. how about dan in illinois? dan. >> caller: hi, jim i'm interested in momow and your thoughts about trade tensions, iphone issues, and exchange rates over the next six to 12 months >> momo, no no that is exactly the kind of stock i don't want you in. chinese stock. hey, listen, we're like having a trade war to end all trade wars with the chinese and you want some momo.

i say ixnay, momo. let's go to alex in california alex >> caller: boo-yah >> go ahead. >> caller: my question is on a stock hovering around a 52-week high despite a sell off in the last two months. dr. cramer, what makes the - >> gary smith used to come on the show, and i so enjoyed it. he's doing such a good job sienna is really kicking put here i think that gary should come back on. ciena had a monster good quarter. i need it go to arlene in illinois arlene >> caller: hi, jim i wanted to know what you thought about avv. >> they have to do what bristol myers did because they have too much money in one drug i will say this, it's a well run company. so is bristol, but they need to do a deal. i bet you we talk about that next week. i'm going out to san francisco for the jpmorgan conference. let's go to mike in the illini

mike, mike, mike >> caller: hey, jim. >> huh >> caller: go bears! >> go bears. >> huh >> caller: ericson >> it should be kicking butt and they're not. they should be the big beneficiary of the chinese turmoil, huawei, but they're not. that's because they're not that good of a company. a lot of judgment. and that is the end of the lightning round. >> the lightened round is sponsored by td ameritrade monday, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> this is the greatest -- this is like 42 different things. >> it is a lot of things going on here. >> somehow, it's regarded as being a nonevent

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i cannot overemphasize the importance of what jay powell, our valued fed chief, did today. it's not just that he suddenly embraced the policy of patience. maybe his heart grew two sizes over the holidays like the grinch, or he got some visitation from the ghost, like

dickens. the timing of his speech was also huge. this morning, cleveland fed president loretta mester came on cnbc, and his interview was, say, a fiasco. she did a two-faced dance. how can you claim to be data dependent if you have made up your mind before you see the data that you need one or two more rate hikes to get back to normal and that begs the question, what is normal anyway that's where the data says you should go. normal is the natural progression of jobs created without a lot of inflation it's not ap percent that's the old fashioned way of looking at things, and it's based on incredibly outdated understanding of inflation these days, our economy has a lot of natural armor against inflation. we didn't have walmart versus amazon those guys are going out, all the way to get you to pay less every device is also designed to lay people up. every software program you have is designed to let people hire

fewer people every investigation of any note is about taking a job done by ten people and making it so it's two people and they can do it better the fed doesn't understand this because they have a major version of inflation if wages get too high and banks don't want to lend, we have a pickup in unemployment, but this morning's employment number shows there's jobs to entice people back into the labor force. it's amazing at a moment like this, we want the fed to be patient, wait, see what the last rate hike brings, because other than health care, i don't see a need for hiring in most industries. home building, manufacturing, assembly, auto assembly, plastic, plywood, oil rigs, pipelines, those are businesses we don't need more people in the fact is the fear is the fed may have tightened too much. the trade war with china could help slow the economy if we can't make a deal with the chinese communists you dent get growth if you're just worrying about a market

demand apple had fabulous numbers in america. it's about what could happen if china doesn't play ball. how about the domestic side? let's pick a bank. let's pick keycorp, which is based in cleveland loretta nester's base of operations it had $1.6 billion in revenues. the previous quarter, $1.647 billion. it had $44 million in commercial industrial loans previous quarter was $45 million the past was better than the present. no wonder the stock has fallen from $20 to as low as $13 in the christmas massacre it's bounced back to $15 and change, but that decline, despite a huge boost in the dividend, is what made me worried about not waiting and not being patient before hiking. oh, boy, would i love to ask nester about those numbers what would she say memo to powell, keep listening, be patient, enjoy the employment

gains. let's not be too judgmental about the rate hikes you'll be known as the fed chief who prolonged the expansion, not the one who ended it that's a worthy legacy that's one worth shooting for. stick around this round's on me . hey, can you spot me? come on in! find your place, today, with silver sneakers... included with many medicare advantage plans. call the number on the screen now or visit getsilversneakers.com

i've been saying it ever since october 3rd. i thought the fed was being too dogmatic and irrational and rash wacky and imprudent. jay powell proved to us today he understands that perhaps he was a little bit too on auto pilot and he's gotten a little bit more rational, and today, you saw the results. the stock market went up i am not against rate hikes. i am in favor of rate hikes when the economy is overheating so jay, today we saw what happens when it doesn't overheat and we create a lot of jobs. just for you, right here on "mad money. i'm jim cramer see you monday

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