>> that was pretty creepy. >> see, listen >> oh, my gosh, you're right. >> of course i'm right >> xilinx. >> that does it for us see you back here tomorrow at 5:00 jim cramer starts right now. 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 in summer, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. people want to make friends, i'm trying to make some money. my job is not just to educate but to teach and put it in context. tweet me@jim cramer. if you want to understand this market, the s&p falls and the nasdaq 1.71% wow. let me ask you a question, how

much would you be willing to pay per month for the best entertainment out there? the answer, more than you're currently paying, and that's why when netflix raised its fees the ignited the stock market and the unnerving news from the u.k. where the prime minister's brexit deal went down in flames wasn't enough to stop this rally. netflix's announcement they're raising their fees 13 to 18% is huge according to rbc capital a terrific piece of instant research titled flexing pricing muscles we know that netflix was generating about 11.44 per sub in the third quarter if you slap a 15% increase on the average customer you get 1.18 billion in incremental revenues and all that flows straight to the bottom line. wow, instant riches. even though netflix had seen the stock surge 25% since the beginning of 2016, the stock

packed on 25% today. the darn thing is now up more than 50% from its december lows. and why not? all the research we got this morning shows that there won't be much pushback here. netflix has been underpricing its streaming service for ages in order to hook subscribers on terrific content if people try it, they will get addi addicted netflix is only going to be charging little more than some of the other paid services that have a lot less content. i'm thinking about hbo and hulhu consider this insight from piper jaffray report this morning, we believe the primary determi in content quality. in november of 2018 we surveyed more than 1,100 subscribers and found that 71% of them feel netflix content has improved in the last year. we believe as long as the vast majority perceive that the service is improving, netflix

will be positioned to periodically raise prices. in short, everyone knows that netflix provides a great service that represents incredible value. if they can get away with raising prices and they will, it's just a huge boost to the bottom line. that's great for netflix why did this positive action end up boosting the rest of the market what was the deal with the pin action for starters, the acronym for facebook, apple google and alphabet because of the etfs linked to faang, any move in netflix can move the entire cohort, and that's exactly what happened the etfs lifted the whole faang complex. i know it seems crazy. the idea that the tail could wag the dog like this, but it's true you can't underestimate the power of etfs to move certain groups second, netflix serves as a powerful reminder that the subscriber business model is incredibly strong here

a recurring revenue stream is very, very lucrative, which brings us to two other bargains, two companies with service revenue streams that could easily get away with raising their prices, amazon and apple amazon prime may be the single greatest bargain around. they told me i have to pay $150 for the privilege of getting the lowest prices for products, not to mention free shipping, i wouldn't even blink. fine, i don't care prime is wort worth it last year amazon put a 20% price increase, we do know that amazon hit 100 million subs not long after which makes you believe there was little or no resistan resistance on top of prime they also got that red hot web service, and rapidly growing advertising business i'm a big fan of amazon here the only thing that may be more of a bargain than amazon prime the stock of apple which sells for a measly 11 times earnings estimates, despite its fabulous

rapidly growing surface stream every month i pay apple to back up my photos, insure my phones, how about you? don't you? every month i pay apple music. like many subscribers i don't pay any attention to the bill. they come from sender, my e-mail to sender apple, and they're automatically charged to my account. what else are you going to do? all this stuff is a bargain. you never need to worry about losing your pictures, and you don't get that panic attack when your wife -- when my wife throws my dirty garden pants in the washing machine with the iphone 7 still in my left pocket. what are you doing that's what i said, and she goes you know what? don't worry we're going to put the phone in a bag of rice a bag of rice. yeah, uncle ben's rice is going to save my $800 phone, i got an idea for you, apple care is more reliable there's been a lot of complaining about apple lately i heard they cut production on the new iphone nobody's talking about what

happens when they raise the price for services i think the stock will explode higher there's something else apple can do to get its mojo back. that's called a tease in the business two research firms are saying the estimates could be too low barclays saying -- and citi group is now telling us he's going all in faang that's the smaller version, the one with just one a, amazon, which adding yet more fuel to the fear i don't want to miss the forest for the trees here we had a number of companys that reminded us how cheap stocks have become. i want you to -- let's talk about jpmorgan for a second, largest bank when i reported this morning the stock quickly fell more than three bucks because the headline numbers were clear misses, but the stock ended up turning around, and anyone who sold it for under three bucks feels like a moron for not listening to the conference call before they pulled the trigger united health, for some reason they were initially viewed as

suboptimal at one point shedding more than four bucks however, you would have heard that every line item was much better than expected turns out unh is doing incredibly well. the result, another blast off, unh closing up more than 3%. after the bell, united continental crushing the revenue estimates. you could argue that the british parliament overwhelming brexit deal should have done a lot more damage than it did even though it's so boring, the dow dip almost into the red on the news anybody who's paying attention knew that the brexit deal was dead on arrival. it's not like this was an unexpected development the bottom line, what matters are the expectations and so far they're being exceeded by the companies reporting earnings and the likes of netflix that are raising prices because there's no resistance to doing so. that is positive in a market

where people are still negative. so negative that it staggers the mind mark in south carolina, mark. >> caller: hello, mr. cramer. >> yeah, what's happening? >> caller: you know, i'm considering a position in precious metals. it seems to be a possible investment there in today's world of volatile political, the fed financial direction, interest rates, huge debts, dollar direction. >> i'm with you. >> caller: and all this uncertainty. what's your thoughts of precious metals and that precious metals sector >> you know, it's interesting. it's a streaming company i have said that we want to buy -- i've identified my favorite, which is this combination that's g-o-l-d, and that's mark bristow. he's been on the show so often it's got the same kind of yield. it's a really good situation let's go to damien in california damien. >> caller: booyah jim. >> booyah. hey, i'm sorry about your

eagles. >> yeah, yeah. >> caller: listen, i just want to thank you for your rep on lightweight foods. i did really good on that one. >> that was a good one that was an action alert. >> and another organic power house, ames celestial, the stock has been hammered. what is your thoughts on it getting back to its former self, there's been a change in the c suite. the last quarter had decreasing sales and margin. >> that quarter was not good i can't find a reason to own the stock. i think they'll take out premiums over. i think frankly their season might have ended, too. let's go to vincent in new jersey, vincent. >> caller: hey, jim, big booyah from another heartbroken eagles fan out there. question for you about td bank stock, currently at $52 with a pe of about 11 been floating around 50 to 60 bucks all last year.

>> yeah. >> caller: earnings coming out this week on all the banks, jpmorgan missing big the fed turning back their ranks. do you think it's still a good play even though they're not reporting until march? >> i think you're making it too hard for yourself. i think what you should do is go buy citi, which is real cheap even up 3, and i like it and thank you for the condolences. i tried not to focus on the eagles because i watched it with my daughter, my wife, and we all comfort each other, and i'm trying to get past it. and i'm not past it yet. but you know what? thank you for all the kind words about how much it hurt all right, now, i know you expected the -- we should never have been there. i'm thrilled about it. the market was really ugly, but expectations matter, and right now they are being exceeded, and the stocks are so low that they can't seem to disappoint i'm mad tonight, smoke has finally cleared, and we've entered a new more positive environment. could the new year bring new volatility we've got to go up the charts to find out.

last week apple's tim cook told me the greatest contribution to his company's new demand decline is in the health business. tonight i'm consulting on the case for free and tell you how to make a big splash in the health care space. if they do it, i am not asking for anything. and we've got royalty on the set, no, not prince harry. the m wear i'm sitting down with the cloud king to see what's ahead for the company. stay 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 head to mad money.cnbc.com

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you'this january 18th-24th, would like to say, "thank you." enjoy a free week of movies on us- from networks like epix, lifetime movie club, hallmark movies now, and history vault. just say, "show me movie week."

that's a full week of your favorite hit movies on your tv, online, or on the go with the xfinity stream app. [shouting] it's all on us, and it's all coming soon. you've got some serious watching to do. now that the smoke has cleared, and we've entered a new more positive environment, it's time to take stock of which tools worked during the selloff and which ones didn't behave as expected tonight we're going off the charts with the help of mark

sebastian, who's the founder of option pit, to get a better sense of what's been happening with the cboe volatility index or the vicx. another name for the volatility is -- in a normal environment it tends to have an inverse correlation to the market. it goes up when the s&p 500 goes down, and it goes down when the s&p goes up. when you reach important levels, the vix starts to behave differently. normally when stocks go down but the vix also goes down indicating traders are less afraid that means a bottom may be at hand what's incredible is the pattern didn't quite play out as expected during the selloff. sebastian says the fourth quarter decline was different from anything else we've seen in the last decade. since 2008 when the stock market experienced a major selloff, that's always been accompanied by a huge spike in the vix

then the vix makes a lower high itself the s&p 500 with the volatility index over the course of 2018. in february and march we got exactly the kind of action sebastian is describing. when the s&p plunged, the vix popped then, when the stock market plunged again, second leg, okay, and made a lower high, the vix made a lower high. in other words this goes down, and vix does not exceed what it was. that's what we're looking for to call a bottom. and that exactly turned out to be the bottom. the fear gauge told you that even as stocks were -- this time the pattern played out differently. take a look at this. this is really fascinating sure, when the s&p started plummeting in october, the vix spiked that should happen then we fell some more, okay, still good, and the vix spiked back to the same levels. so far so good very normal, but then over the course of november sebastian

points out that the s&p 500 collapsed, and the volatility index barely seemed to notice. normally when the stock market goes lower and the vix does nothing that's supposed to assume we reached the bottom it has been a very reliable signal, and we did get a nice rally, okay, at the end of november, but that was a sucker's rally didn't last. when the next chart we see that come december the s&p started breaking down yet again, totally falling off a cliff, and at least initially there was zero fear in the index. it is really tough here. in fact, the vix couldn't get any lift at all until the s&p 500 sold off 400 points. even then when the vix started surging in september, the volatility in the index failed to spike above 40. that's lower than where the vix peaked in january. it seemed to be saying that the garden variety selloff at the beginning of last year was worse than the total meltdown at the

end of last year how wrong was that so what changed? okay, why does sebastian think the volatility index failed to capture the tremendous amount of fear and panic during the fourth quarter bear market? simple sebastian says all these inverse products, term exchange trade note, the xiv, they blew up. remember we used to profile this all the time the xiv was a retail instrument that took on insurance risk from the general marketplace. if you remember back in february, several of these vix related products imploded. this process represents the c change and how volatility is going to work going forward. the crazy price action from a year ago left a bad taste in traders' mouth you had tons of money managers who were using vix options to hedge their positions. now it looks like these traders took their ball and went home in this new environment hedge funds will no longer be racing to cover the short positions, which means the vix is probably going to signal that there's less volatility going forward.

does that mean that the volatility index has become useless to us? sebastian says now the charts from late last year seem to bear this out. when the s&p 500 bottomed around christmas and exploded higher, look at what the vix was doing, it got crushed that makes sense that makes sense there even on the first trading day of 2019 when we got a decent selloff in the s&p, the vix did nothing. as the stock market has surged back to life, the vix has been falling much more than the s&p has been rallying. that tells us something very important. i want you to take a look at this next pair of charts the first is the volatility index. and the second is the vvix the cboe vix volatility index which measures the vix volatility itself. the vvix peaked at 110 on december 24th. take a look at this, this is where it peaked, and since then it's moved straight down while the vix was making a new

high on christmas eve, the vvix was not. and to sebastian this hole looks like the unwinding of the risk off trade. both back away from the hedging at the same time remember, the vix works by measuring the implied volatility of these options when sebastian looks at these charts he thinks listed hedges are being unwound at a much faster rate than the s&p 500 is rallying what does all of this mean i don't want it to be mum bow jumbo. this was the bottom. sebastian thinks signals this earnings season may be a bit of a snoozer with a bullish bias as the market pushes higher the charts suggest that the volatility index may not be working exactly like it used to. doesn't mean it's useless, and based on the current action here, he thinks the stock market has more room to run, and even though i'm a little kind of flummoxed that the vix didn't work, i agree with sebastian i think it can go higher

apple has big plans for health care in 2019. i'm offering the company an idea of my own. can cloud play drive your portfolio higher and i'm getting real in retail and breaking down what's really happening in the space, so stay with cramer f.

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last week we learned an awful lot about apple. the company now that everybody loves to hate. when we sat down with eo tim cook at his cupertino hb headquarters there's one part of that interview that stuck with me it's when he talked about apple's ambitions in the health care space listen to this >> if you zoom out into the future, and you look back and you ask the question what was apple's greatest contribution to mankind, it will be about health. >> they have all these apps on the apple watch. i usethem. you can monitor a ton of things. you can monitor your health, put your medical records on the iphone put all together, and this stuff represents a major

democratization of health care as much as we might love the service revenue stream for all these apps, most investors treat apple like it's some kind of hardware company, and it doesn't get credit for all these great things like the health thing that i love, loading my data right now, and you know, won't they think the hardware is kind of on the verge of becoming obsolete they see the slowdown in the iphone sales and assume apple is about to go the way of polaroid, the walkman, palm pilot. they highlight the core issue here apple is too reliant on iphone sales. the iphone accounted for 63% of the company's revenue last year. everybody's writing apple off, which is why this stock sales for 11 times next year's earnings estimates regular viewers know what i think about this apple's the greatest consumer products company on earth, and that service revenue stream

represents the company 1.4 billion users. all kinds of apps and services too. however, you know what the stock indeed has been a dog here because the service business is just a tiny fraction, right now at least of iphone sales, not because it isn't big, but because iphone sales are so large so i got to thinking about this because it's really bugging the heck out of me i kept thinking what can apple do to get out of this rut? i think it's time for them to make a big splashy acquisition they got to do it in the software space the idea here is that this would make the service revenue stream a larger piece of the pie. that's what would end up -- our main goal is to improve the health care experience perhaps more important it would force investors and analysts to re-evaluate apple as more than a hardware company i would love for it to be switched to the consumer product grown up or software group when i put my investment bapgnkn hat on, i never did sales and

trading, but the answer seems obvious. i got it, apple should acquire epic systems that's a privately held provider of electronic health records not only would this be good for the company, i think it's exactly what apple's stock needs to get its mojo back because it'd be buying the best of the best why epic first you need to understand something about the electronic health rorecords market. for years we've been hearing about what can happen when -- electronic records should be a lot more efficient, and best of all, they should be able to speak with each other. if your primary care doctor notes you have an allergy to penicillin, every other doctor should easily be able to see that information in theory now there are a bunch of players in the space, epic's one of them some of them have a strong position in hospitals. some of them cater to specialized private practices. at this point two players have emerged as the dominant players. epic and cerna

epic focuses on smaller hospitals, larger physician practices. the electronic health records, boy have they ever failed to live up to the hype? they should be revolutionizing the way we practice medicine that's just not happening. the problem is known as information blocking or data interopera ability you end wup with a situation where your records don't get shared the way they should be. say your doctor gets epic, and you're take tonn to a hospital t uses cerna currently no one in the industry has a reason to solve the problem. neither cerna or epic want to make it easier enter apple health care. see, we know they've already started dipping their toes into electronic health records. this space is important to them.

a year ago they rolled out a service that will allow anyone with an iphone to view their labs, charts, immunizations and more so far it seems to be pretty possible with patients if electronic health records are going to achieve their full potential you need something to act as a universal repository for all this data, and the iphone and apple could easily do it it's a jgigantic opportunity if apple wants to become the universal electronic health records provider, to be the handshake between the watches data and the system, they're going to need to break into this market big the best way to do that is by acquiring the best, epic why them they're going to want a player with scale which means cerna or epic epic has been named number one software suite by class research for eight years in a row there's no reason apple should go with an inferior provider that's not their style they might as well buy the best. third, integrating epic would be

a simple process than integrating cerna. epic is is privately held. they've built their whole system from the ground up if apple buys them, there will be some degree of consistency during the integration process i have no idea whether epic wants to be a seller or apple wants to be a buyer, but apple has $123 billion in net cash which means they can afford it frankly, apple could buy anything so would epic sell listen to me on this epic -- and again, this is a private company. epic's founder and ceo is judy faulkner she owns 43% of the company. she's now 75 years old in the past she very matter of factually said epic was not going to do an ipo if she wants to retire with a bang, selling her company to apple would be a good way to do it a deal like this one could be revolutionary for the health care sector. she wants to do that, and so does tim sooner or later somebody is going to do this i'd much rather have apple take control of our health records

than any other gigantic health company. apple cares about protecting your privacy they would go to the end of the earth to do so they're the perfect fit. with iphone sales slowing, apple needs to do something to jump start its stock price in the service revenue stream a big acquisition that bolsters its service business would do the job, and buying epic systems to double down on health care and give the handshake between this and all of the health care system, well, i think buying epic dould epic could do it come on tim cook, and judy faulkner, make this one happen let's go to don in massachusetts. >> caller: hey, jim how are you doing? >> i'm doing well. how are you? >> caller: i'm doing great, thanks as you know teledoc provides telehealth services worldwide. there are a total of 12,000 plus clients and 125 plus countries fortune 500 companies participate in this service.

they are also involved in the 35 plus health plans and 290 plus hospitals and health systems starting in 2017 and into 2018, teledoc required growing and innovative businesses. >> right >> caller: subscriptions make up most of told revenues with the segment growing 60% since last year total sales are expected to skyrocket to 1.1 -- >> look, i agree with you sir. i think teledoc is too cheap it's part of the broader selloff we had in the market i think teledoc is a buy how about cynthia in massachusetts? >> caller: hi, jim my question is about the aetna cvs merge, and i owned etna. now i own cvs and some cash due to the merge, and i'm wondering, number one about the merging court issue and number two, if i should hold, sell or invest more >> i have a conference call on thursday for members -- at

11:30. i'm going to be talking about cvs. i think this has become one of the cheapest stocks in the market it was down again today. the walmart's having a fight with them. they're going up against walgreen's they're going up against everybody because they bought this etna, and they gave a very not great presentation recently that really made people feel like wait a second, numbers have to come down i am telling you i've never seen cvs this cheap i would love to buy more we bought a ton at this level. this is one you want to buy tomorrow after people cut numbers because it could be $0.06 when they announce this walmart thing. i urge larry merlot to come on air and talk about this combination. apple's got ambitious in the health care segment. the company, let's say the stock's -- i don't think the company is i think it should make a big acquisition. i think it should buy the

privately held epic systems to own the medical records business much more ahead. how is the company positioning itself then i am breaking down what's really happening with retail telling you if winter still exists in the space. tonight's edition of the lightning round, stay with cramer

the cloud stocks rocketed higher the whole group was very much in style. then the fourth quarter we got a rude awakening, as investors start worrying about a slowing economy, they dumped everything related to the crowd now the federal reserve has backed off its plan to raise interest rates this year the cloud names have been rebounding take the m wear, the company that pioneered the virtual software that makes data centers so powerful. vm ware would be one of the first companies to know about it when the company reported in november, wow, the results were excellent. that didn't stop the stock from getting obliterated last month, although it bounced dramatically off its lows since the beginning of 2019. let's take a closer look with

san jay, customer operations, get a better sense of how his company is doing and where the industry is headed welcome back to "mad money." how are you? >> great, thank you. >> i like that t-shirt. >> you liked our little designer shirt just for your show. >> if you add back the dividend, you are the number one cloud, so congratulations. >> we focus on the long-term it's nice that obviously people recognize part of the story of the stock prices very well the last two years we focus on innovation, disruptive innovation, and customers. there is probably very few companies that have that combo you can go a long distance and fire on all cylinders. >> we often hear about amazon's web services you don't call amazon and say hey, i want to be hooked up. but you would call vm ware. >> part of the reason is we are the de facto standard on the on premise world. all private data centers,

private clouds run on vm ware, and as anton looked at how they would build a bridge, sort of a highway into the cloud, they needed vm ware and every company from maximizing -- there's about 100 million workloads today in the on premise world a smaller number in the public cloud but growing really fast. that 100 million workloads is not going away, and the 30, 40 million the public cloud are growing, growing very fast both of these worlds are going to exist as you think about edge and iot, the world of on premise is going to grow. we think a multicloud world is here to stay, multiserver, multistorage, and edge is here to stay. who is that company that's going to build this de facto bridge to bridge both worlds that's where we enter in with a very special story. >> in some of your notes recently, i've noticed that people talk about the maybe cloud spend had peaked, we're just talking about scratching the surface in the rest of the

world. >> we think we're only in the second inning. the private cloud is going to continue to grow in the multicloud world, you're going to have three or four market scalers the suazure, google, alibaba if you go to germany, deutsch teleco telecom. we have 4,000 of those cloud providers that have built their stack on vm ware the big hyper scales get a lot of attention, those multiclouds exist, we think that those cloud providers are in their first or second inning of growth, and we have got to build partnerships by which we can optimize the world for this multicloud world. >> we do not talk enough about those, so thank you. we also have not talked enough because it was kind of something that was in process. dell and the industry, can yo y youyoud youdy -- michael dell is a visionary. i have always loved him. the companies are now separated. de what's your relationship with dell, and speak to what it means

for the rest of the industry >> michael dell is an incredible business leader and obviously his story is well-documented and unparalleled they own a controlling interest in vm ware the beauty of the setup is the economic interests of dell and vm are perfectly aligned they are a public company. we're a public company he has said i think on your show that vm ware will be independent, and we will stay that way because we've got to serve customers who many of them have dell enc, but some of them have hp servers and emc storage or dell servers and net app storage, and vm ware is this switzerland company that serves any hardware structure on premise, any cloud in the world skpr , and what's good for vm ware is good for dell. we think these economic interests will really align us, and the more important thing is our customers are aligned. >> we've heard very big deals in the last few days with microsoft. you could be involved with those, it's likely that you are involved in those? >> we are. in fact, in many cases we've

done certain thin things with azure. we've designed our desktop virtualization to run on azure, we do think there's a multicloud world. what we started to do in the data center, what we've done with amazon is further ahead largely because amazon's number one and we're hearing more customer appeal for that we'll make appropriate investments far multicloud world as we progress. >> how do you stay humble? the company's remarkably successful i saw a terrific video on youtube about you talking about servant leadership i think it's important to talk about the things you are thinking you're a very big picture guy. >> i came as an immigrant to this country, 50 bucks in my pocket listen, part of my narrative, that is what was on linkedin, the leaders i admire the most, jensen, wang, there are others

these are immigrants like me who have come in with very little, and they represent a leadership that's not top down. as you're looking at a pyramid, imagine these are birds sitting on various different rungs if you're a bird sitting at the lowest rung, and you're looking at and you're seeing crap flow down, that's the usual command and control culture. it's our job to invert that pyram pyramid. if you are an engineer or sales rep at vm ware, our job is to serve them, get the obstacles out of the way or help a customer be successful it doesn't mean you're a door mat. a servant leader can be strong, a hard negotiator. you approach it with humility. >> it's been a remarkable success story. i do love that shirt because you are a fantastic cloud king this is how money is really made long-term. i want to thank sanjay, chief operating officer of customer operations you've got to go to his video because this servant leadership idea is something we're going to explore on our show. all new lexus es.

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it is time buy buy sell sell sell and then the lightning round is over are you ready? time for the lightning round, we want to start with mike in pennsylvania mike. >> caller: mr. cramer, thanks for taking my call. >> my pleasure >> caller: i believe -- besides bullion i also own newmont mini mining. >> i don't like the deal as much the one you want to be in is coming in, and it's good, is baric gold i want to go to cesar in californ california. >> caller: how are you doing >> i think oil stock at this level, i don't want to be there. if you want to play that buy union pacific. i need to go to ed in new york

ed. >> caller: booyah, jim cramer. >> booyah, ed. >> a pleasure talking to you my stock is arena pharmaceuticals. you had the ceo on approximately a year ago, and they got -- they're developing a lupus drug. >> yeah, didn't you think that's impressive >> caller: what is your thought? >> i remember saying it's going to be a great spec, but it's only a spec, please. let's go to jim in california. >> caller: hey, jim, hi, booyah. >> booy booyah. >> caller: how are you doing calling you by away of pennsylvania, springfield high school >> get out of town, go spartans, springfield in the championship. let's get them >> caller: and eagles obvious, i bought some century link at 16 today. >> oh, really? >> it's down from 21 >> it's really pricing in a dividend cut at this point i don't like the non-bell.

they've all been bad in the end. i like verizon i'm a very big traditionist. i like at&t, too why don't we go to mimi in arizona. oh, i'm sorry, marty in ohio marty. >> caller: how you doing jim >> fabulous, how about you >> caller: okay. especially on "mad money," jim, what i'm calling on is dominion. >> letter d, okay, that stock is down merging with south carolina utility that a lot of people don't like i think they're wrong. i think you buy five, now i go to mimi in arizona, mimi >> caller: hey, cramer, thanks for taking my call. >> it's all about me, mimi. >> caller: i'm looking for a less volatile long-term play investment, looking at ibm down

30%. i wanted your thoughts on the company. >> i'm with you. there's a very good note out today with a 5% yield and white hurst more involved with management, remember, they're buying red hat it's going to be a good deal i am with you on that. i need to go to daniel my brother in north carolina. daniel. >> caller: yes, sir. >> what's up >> caller: booyah. i want to ask you a question about exxon mobil. >> well, look, you know what exxon mobil has finally gotten cheap. it's an incredibly well-run company. it is never been wrong to buy it here at 4.5 dividend yield, so i'm with you, and i don't like to recommend the oils right now because they've been really bad. let's go to davy in new jersey >> caller: thank you for taking my call, i'm calling at bota phone, bop. >> this thing is a house of pain i'm not going to let you go to move into that address it's just not fair can we go to brian in my home

state of pennsylvania, please? brian. >> caller: hey, how's it going, jim? >> couldn't be better. thank you, how about you >> caller: i'm doing pretty good pretty good. my business teacher out there watching, and i was wondering what your thoughts are on nike stock? >> i think nike's doing incredibly well. i think it's a good situation. i would continue to buy nike, ask that ladies and gentlemen, the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

we've learned a lot about retail since macy slashed its forecast last week everybody ebs traplated from those numbers to assume the whole group was in trouble there's a reason i always tell you not to take your cue from the weakest player in the industry and the department store business model is the weakest part of retail macy's cut numbers, the ceo told us there wasn't good follow through from black friday. women's sportswear, fashion jewelry, fashion watches and cosmetics. it gave the impression of a broad based slowdown in consumer spending consumer confidence eroded after black friday for a host of reasons, everything from a slumping stock market to the government shutdown, but mostly if you took your cue from macy's you were led astray. consider that we've heard since then, how about yesterday, lululemon, spectacular numbers we know that women are still buying sportswear, they're just

not buying it from macy's. lulu had same store sales growth in the mid-15s lulu's combination of strong online business and a terrific in store business is a winning formula. we know there were a problem weakness in sleep wear i do feel confident that the fashion watch category is being obliterated by the apple watch, which will supply -- for christmas. that's something that's been lost in the discussion about the iphone slowdown. i think that apple doing a lot many to make the watch more fashion forward. the collaboration is really worth following. it's selling incredibly well the largest watch by revenue in the world, i say underestimate at your own peril, i don't really have a line on fashion jewelry, but you know that this cosmetics business has suffered from the same malady that crushed the electronic hardware business it's called price discovery. if you go to amazon or ulta beauty you know you'll get the

lowest prices. the rest of the industry has caved to ulta, which means they've caved to amazon. few companies resist because cosmetics are sold in the same outlet as the cheaper mass market stuff that was unthinkable a few years ago. put it all together, and it makes me think that macy's has some unique issues that don't reflect what's going on in the rest of retail last week pvh, the parent of calvin klein and tommy hilfiger, that wasn't enough to save the venerable department store chain. i still don't understand why target and kohl's stocks got killed, except that they reported non-blowout numbers on the same day that macy's truly disappointed i guess people expected stupendous same store sales and that didn't happen kohl's and target are being hurt by a resurgent walmart which is coming in under them in many cases. watch this walmart stock i think it's going to continue to go higher kohl's's unique brand pricing and remember we visited that, they've got the best brands for

less target's got great house brands. plus let's not forget that kohl's guided up, not down why else might a big department store like macy's being having trouble attracting customers maybe it's about fun retailers are doing well, and we try to draw conclusions about what that means. i think it's about giving people a chance to have fun in a non-extravagant setting. to me the real take away is that you've got to go category by category when you do that, you realize that retail isn't a losing etf it's a sector with both winners and losers you want to try to make money by picking stocks, you need to be able to tell the difference. stick with cramer. is number one in the nation? sure, they probably know what they're talking about. or the one that j.d. power says is highest in network quality by people who use it every day? this is a tough one. well, not really, because verizon won both. so you don't even have to choose. why didn't you just lead with that? it's like a fun thing. (vo) chosen by experts. chosen by you.

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from capital one.nd i switched to the spark cash card i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet? netflix, no problem. i'll pay like i said, there's always a bull market somewhere. i promise to find it for you i'm jim crammer, and i will see you tomorrow er, and i will 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." ♪ and we are from the eagle rock neighborhood in los angeles, california. ray and i grew up in the same neighborhood, never really hung out until i married my wife, who happened to have gone to the same high school with ray. now we're close friends and business partners, too. oh, that looks like fun. i came up with the idea for this business while working at a treatment facility for children, and one of the more difficult times was bath time. there was one kid in particular