it. >> use that as your cell stop. mcdonald's. >> that does it for us see you back here tomorrow at 5:00 meantime, ad"m money," jim cramer begins right now. ♪money," jim cramer starts right now. field for all investors. there is always homework and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cray america want to make friends my job to educate and teach you. call me at 1-8 00-cnbc or tweet at jim cramer. even a small selloff, how do you tell the difference between a stock that's too cheap and a

stock that is totally radioactive? you know we see this battle play out every day in individual stocks sometimes they set the backdrop for the session like they did today. dow lost 44 points, s&p up let me give you some examples. it's so stark today. you need to be able to tell the difference between value and a value trap i want to get a bear trap here it goes like this. all right. take fedex now, today a major research firm cut their estimates from fedex and lowered the price target the analysts implied there is nothing new, just the same old slowdown story that they need to be baked into the share price. i read the piece as incredibly negative and figured fedex would get steamrolled. the stock didn't get hit at all. it powered higher. it caused it up $1.93.

the darn thing plummeted from 199 in mid-april to 150 and change last week before rebounding to, you know, yesterday at 159 i expected this number cut to set the stock back i figured retest, come back there. no, not at all instead, it managed to work its way higher for me that's what i call a file away file it away the worst may be over for fedex because the stock is able to bounce on bad news if an analyst is cutting numbers and that cut can't knock the stock down, that means you won't get hurt. >> hallelujah! >> wow that does look like it could be a bottom pretty amazing, huh? if you believe the president can work out a deal with china, this makes a lot of sense here. even if the estimates are too high an end to the trade war will send the stock into the stratosphere if the trade war continues i have to start thinking the bad news after this piece today is baked in and that is fabulous.

that's what i want in a stock. all right. let's try another. how about sales force? man they said they are buying tableau software and the stock plummeted in response, all right. here we go boom all right. that's the buy 161 in a single day. just today i spoke with a tech guy who was raving about how easy it is to use tableau's platform i said salesforce has a treasure trove of data from clients combine that with tableau and you have a potentially unbleatable combination. at the best i bet they will be able to beat microsoft which is the largest competitor in the enterprise software space. nobody cares whether it's a good idea or not. there could be a huge number of clients they will pick up. investors fled the stock en masse because of worries about dilution they took a look how much it was going to cost, it was going to

cost too much in their eyes. that's normal in these big old stock transactions the solvent at salesforce was extreme. the thing that drives me crazy is that we have been through this in general but in specific with the stock of salesforce they bought mule soft last year. the stock got hammered in the news the decline lasted a couple weeks and salesforce stock came roaring back i think you may look at this latest single merger induced pullback and say, you know what? i think the worst is over. i think that the stock up today means -- >> bye, bye, bye >> it would not shock me it can be that easy. now, maybe it's too soon to buy this one that said, ever since the news broke i have been waiting for the stock to have a day of bounce with salesforce up $1.13 today it looks interesting

i am endorsing it. half position now, half position later. another one in the news that i had a brush with on "squawk on the street" on monday. united technologies. over the weekend we learned they are merging with raytheon, the defense contractor it's a confusing deal. if it happens it will create a fantastic aerospace and defense company. what makes it confusing? united technologies is breaking up into three entities, climate control, aerospace and defense play the latter business will be merging with raytheon. there are a lot of moving parts here it's hard to figure out what the combined entity might be worth it's a complicated story defense contractors reporting a series of suboptimal quartersing in part because of problems with the missile manufacturing business that's another complication. last night a hedge fund manager who has position in united technologies says ceo gray hayes in a letter that he may have to

fight the transaction. the stock falls from $132 friday to 122 at these prices kwuonceagain i think united technologies has had enough in other words, it's a buy be careful with what i call sentiment-based bottom calls like here is the best one. whe i will give you ones i screwed up on. facebook if you thought the bad news about the company's privacy practices was baked in, today you got a rude awakening we found out today mark zuckerberg knew about things while it was happening people didn't regard it as sailed old same old. facebook shed three bucks today. you could barely believe my eyes who are these people who own fedexcup believing that mark zuckerberg's hands were totally clean? incredibly, this story has legs. i am not throwing this creepy

dystopian arrow ware privacy thing is of the past i remember what privacy was like it was great facebook didn't kill priveacy. we did it collectively when we decided to post every detail of our lives on the internet. that horse left the barn one of these days facebook's stock is going stop going down on this kind of story. i believe it's worth buying and add more if the stock gets hit because i believe this level if hit again, all right, is the i've had enough selling facebook level. here is one more they're not done, but it's really bad today the semiconductor equipment maker got hit a downgrade. orders are being pushed out. when i read that i said tell me something i don't know of course they are this business is hideous right now. no surprise to anyone. i figure it would be like fedex. i did. i thought it would be like fedex.

i was wrong. they got clobbered today always i got to think that the bad news it bake into inb this baby the problem with tech is there is always somebody that doesn't know business is week. my belief is that the industry is bottomless. i was too early. wall street speak early, wrong bottom line. look at the end of the day spotting bottoms is it easy you have to figure out how bad news is in in terms of the actual numbers how much of that is already baked in the stock price how clueless are your fellow shareholders you typically don't get a real bottom until the estimate cuts are made, the stocks are softened and the clueless have abandoned it that's a bottom. anything less than that and you are probably too early, which means you are going to get hurt! >> the house of pain. >> stephen steve! >> caller: hi, jim a double booyah to you. >> i like that what's up?

>> caller: my question, it's about amd. they have been in the news a lot lately, up 98% in the past year. do you think it's a lot of hype or more because of its new relationships with google, microsoft and the rising kmips >> i got to tell you this is no hype this is pure hard work and great execution, right chips, right markets, right ceo. amd is terrific. can i go to chris in texas, please chris. >> caller: cramer, booyah. >> booyah, chris >> caller: well, i'd like this take this time for thanking you for calling out the fed in the fourth quarter for their shenanigans. >> they had no game, the fed. >> caller: no. definitely blackberry, now that crowdstrike is public, is it reasonable to compare d it compare it to its valuation. >> i don't like blackberry this crowdstrike is pretty darn good it's had a big obvious day but crowdstrike is good all the

time. you know i like cyber art, too. somebody downgraded cisco. cisco has great cybersecurity. sorry, chuck robbins spot ago bottom isn't an easy task iconic candy company her sshey, should i stay away or could it have a portfolio with something sweet? then millennial fashion revolver revolve is trending on wall street this week could the fashion focused company be a trend and there were two million families w families financed their homes. quicken loans. the industry trends and what he is up to so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets send jim an email to "mad money"

at cnbc.com. or give us a call at 1800747 cnbc miss something head to madmoney.cnbc.com. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, ble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

no matter how the economy

looks, consumers will always have an appetite for something sweet. but when a company known for stability gets a big kiss from investors, can the stocks still be as smooth as chocolate? >> okay. how does a formerly placid stock catch fire look at hershey, a household name, a candy company that makes reese's, kitkats, almond joy, twizzlers and a host of other brands, including cadbury. isn't that incredible? for years this stock felt like dead money to me it was trading sideways around the $100 level it paid a decent yield but not much in the way of share appreciation as you can see a little wilderness here, okay however, in the past few months it's taken off i mean, every day it goes up 105 at the beginning of the year to 138 today it's a rocket ship that is a large cap stock move that's hard to believe

this is a placid stock you don't get this kind of moment what the hell is going on? obviously, it had to do with slowdown worries investors moved their money into safe consistent stocks like this one. that is part of the story. there are plenty of packaged goods stocks that haven't moved at all hey, heinz, kraft heinz, there is one isn't that incredible? and they put these etfs together these stocks are so different. that's incredible. hershey has something else going for it the company is relatively new management team has been executing in a smart turnaround plan the last couple years and their moves are paying off i think this is important for you to understand, how did that stock get somewhere. i am not sure it's necessarily these levels. >> this is an instructional piece. there is a level where i'd be a buyer. i need you to understand the context of why stocks like this

move so why would hershey's be on your shopping list in the turn around started in march of 2017 when michelle bach was made ceo. they hit a pfew speed bumps. rising cocoa prices, holy cow, to a general sense that the company was rudderless all of which conspired to keep a lid on the stock. those fears were not groundless. but the past year hershey has made a spectacular recovery with the stock 48% over the past few months how did she do before she was promoted to ceo hershey had been diversifying away from the business they made a couple of acquisitions like krave, jerky, and bark things. it looks like one of those kind

bars things or something once she was sworn in as ceo she increased the pace of these deals. in december 2017 they announced the acquisition of amplify remember that? the maker of skinny pop. last fall she stocked up pirate's bootie, okay? actually, i like both of these these deals were small, but all of these modest acquisitions returned hershey to modest low-single digit growth. that may not sound like much a few years ago people would have been shocked to get low-single digit growth from this company she told a conference in february she bought amplify and pirate brands because they were solid margins and mid-to-high growth she said, quote, these brands add additional depth to our amazing portfolio of brands, end quote. when you look at this, you know she is right in other words, hershey's a diversified snacking company it's no longer this, okay? sweet an savory rather than just

a pure candy play. that is how you grow a business. bach has been cutting unnecessary costs. as cocoa prices rose, hershey's operating margins increased from under 120% in 2016 to 22% now, nearly 22. the company used the savings to reinvest including bulking up their digital advertising. that's called a flywheel or virtuous circle. they get 89% of sales from north america. their international segment has been a problem as recently as 2017, the overseas business was losing money. buck has turned international around by focusing on the right markets, allowing the farm division to deliver solid growth and better earnings. the fact that they are domestically focused is one reason the stock roared higher last month when everybody else was afraid of the trade war. this is not a trade war stock. the opposite at the end of the day, hershey's most important business is

indeed candy as younger generations focus on health and wellness, hershey doesn't need to take tons of market share in candy. it just need to defend what it already has. remember this is a house of beloved brands not only hershey's, but also reese's and kitkat and icebreakers i didn't know why these would be beloved. people tell me they are beloved. oh, my executive producer's daughter loves them. what a life. i guess we do 3,000 shows, this stuff happens. almost 3,000 shows anyway, so how does hershey's stay on top? with invasion. take reese's peanut butter, which was my mom's favorite, even though i hate them. number one in the category they come up with new variations of an old thing. recently reese's things, which is 40% thinner than a normal

peanut butter cup. by the way, it only comes in individual wrapped pieces as opposed to these mass produced things and bus consumers love the brand, they begin upgin up a loe advertising. social media millennial. a lot of people gave up waiting. now the stock is getting credit for everything that michelle buck has done right. when hershey reported in april the company delivered a top bottom line beef, 2% organic sales growth, 12.8% earnings growth the reason because they executed better than predicted and they had a strong easter which matters because they own the distribution rights for cadbury. now this is one of my faves. do you know that dark chocolate is good for you? someone told me. i'm not kidding. sure right? it's true. what >> antioxidants.

>> it's anti-oxidant. how about the skinny pop, all right? 11% clip taking about a percentage point worth of mark share thanks to improved distribution and better shelf placement, conagra, remember they got the big bag. this gigantic candy company has more bargaining power versus the supermarket than skinmy pop hnyd on its own the only piece of hair on the quarter was that hershey decided not to raise the full-year guidance i think they were being conservative out of abundance of caution. it went from 117 to 122. it's been a rocket ship since then even though hershey has great management there is a large element of right place, right time here. all the company's purchases and investors have given them a portfolio of snacks that's perfect for the particular moment i want you to listen to what fellow snacking executive dirk

mandaput had to say two weeks ago on our show. >> i think the world rediscovered indulgence and mindfulness and enjoying what you eat and relaxing while doing it, and chocolate is a perfect product for that. >> that was long. >> it's important to get this caught in your tooth when you are doing tof. when everyone was worried, it was a domestically focused company with a solid yield 2.1%. cocoa prices have just plummeted and packaging costs have come down, too. so has freight my one concern with hershey is we are no longer worried about a recession. that gives the fed an excuse to step on the gas by cutting interest rates if the fed is your friend, you

don't need the stock, particularly after a big run, especially now that it's trading 24 times next year's earning estimates. more than mondlize and necessarily but also than alphabet and facebook. bottom line, i salute ceo michelle buck for masterminding this tremendous turnaround with hershey at 138 and investors no longer craving safety, i think you should wait for a pullback before you pull the trigger. if you already own it, even though i just described the love affair, ring the register on your position after this magnificent run. stick with cramer. >> announcer: coming up, this company wants to help consumers achieve the dream of home ownership. but what can their business tell home gamers about the economy at large? cramer talks with the ceo of quicken loans when "mad money" returns.

fun fact: 1 in 4 of us millennials have debt we might die with. and most of that debt is actually from credit cards. it's just not right. but with sofi, you can get your credit cards right - by consolidating your credit card debt into one monthly payment. you can get your interest rate right - by locking in a fixed low rate today. and you can get your money right. with sofi. check your rate in 2 minutes or less. get a no-fee personal loan up to $100k.

the red hot ipos just keep coming i thought they might peter out after the uber fiasco, but we keep getting new deals and some are even good. just last week we got an incredible one i should have known this it's called revolve group, rvlv, an online passion play $18 a share, opened at 25 alphabet and finished the first day of trading $24 i got to tell you something, when i see that going up, big institutional buying it keeps roaring revolve today $36 and change before we write it off as a sign of a frothy market, it's worth getting our heads around what revolve actually does because maybe there is something real here don't forget beyond meat works it just shot out of the gate

but that was because it was a fabulous story the deal was very underpriced. i was gun shy on that one. i told you to ring the register too soon now it's too late. i don't want to make the same mistake with revolve the real interesting thing about revolve group is that it's making a killing in an environment where most retailers are getting killed other than walmart, costco, target, throw in tjx, they are having a very hard time. especially in department stores in high-fashion businesses. >> bu! >> revolve sells the same stuff and they are crushing at department stores. you might say they have become the retailer of choice for millennials who can afford it. how does revolve work? it's an online store actually, three stores the high-end revolve, the even higher end forward and the lower price point. super down now, the company was founded in

2003 with the idea that traditional retailer was either too mass or neech. they wanted a digital platform that would be more targeted than department stores but with a broader selection than specialty stores they will built their own technology platform with automated pricing and trend casting algorithms they take data to predict how fashions are going to change that enables revolve to pick the right merchandise. don't you wonder if they use the tableau? taking that data and making nice charts about it, tells you what to do. the fashion business is more of an art than science, right revolve is trying to change that yes, they launch 1,000 new styles every week in small volumes and double down on whatever works i think this is brilliant idea we know it's working how do we know that? if you are a department store, inventory is the business. when you bet on merchandise and it doesn't sell you end up

marking it down until the customers are willing to take it off your hands that's right rough lie last year 79% of revolve's sale were at full price. that means no promotion. that's amazing that's up from 75, which was good in 2017 yes doing very little discounting at revolve because they know what the customers want and they are not just selling other people's clothing. revolve has 21 company-owned brands the company markets them as independent. that gets more traction with consumers. in the past year revolve's brands made up eight of the top ten best sellers accounting for nearly a third of the company's total sales. obviously, it's more profitable to sell your own merchandise than someone else's. and this is -- look, guys, this is not cheap stuff the average order was $279 that's how revolve could have a gross margin that -- that is that money after the cost of goods sold -- of 51%, which is spectacular for a retailer you'd think they were in the

jewelry business for heaven's sakes, not the apparel business. at the same time they are using social media yeah, they have 2,000 -- they have thousands of influencers, the people who say good things, and brand partners helping them move merchandise that's how they get 56% of its traffic from free or low-cost sources. revolve's now getting 9.8 million unique visitors per month. they have room to grow they have only got 3% market share in their demographic right now. that is ridiculous this has so much runway. i really like this story how about let's get with the numbers for a second in the first quarter revolve had 21.2% revenue growth driven by 40% increase in the number of active customers total orders up 39%. cash flow from operations grew by 31% and the company is profitable. you heard me profitable in fact, they have been consistently been profitable for five years now

it's not about no concern for earnings revolve's pristine balance sheet, i love it the only negative is that their margins took a little hit in the first quarter. that's because they rolled out their new lower priced concept, super down when you look at those numbers it's easy to see why the stock exploded out of the gate an analyst came out with a positive piece on revolve. where to i come out on this one? as a company i think revolve group is fantastic lots of startups like to tell you they have discovered the business model of the future, but in this case there is strong evidence that revolve has figured out the right formula for an online department store we know it will work because it's already working the numbers are that good. plus, i think that the timing of this deal couldn't be better this ipo cycle,we have seen company after company too late

in the life span that was the problem with lyft and uber their growth peaked years ago. oh, well, in the case of uber you could say last year. but, you know, you'll come ba back -- public with rapid revenue growth but in profits. then there is a painful period where your growth slows and you don't pick up enough to offset the revenue softness however, revolve has already made it through that awkward phase and the company is still young enough to keep delivering excellent numbers. in short, revolve the company has a lot going for it revolve the stock, that's more of an open question. at these levels it sells for 90 times last year's earnings estimates. 5.5 times sales. it's expensive of course, investors don't care about valuation when it comes to red hot ipos right now granted the company quintupled its earnings last year they not book much more cheaper in retrospect.

i can't bring myself to recommend the stock that's a little more than doubled in the past week. feels too much to me like chasing. i like revolve, but i think you need to wait for a better entry point if you want to buy the bottom line. department stores keep losing vast amounts of business you've got to wonder where that business is going. at least in some of its cases it's going to end up at revolve group which is why i think you should put this stock on your shopping list and wait for a pull back. it gets to the low 30s, just go buy some if that never happens, you know what you've got to say you missed it. marvin in new york >> caller: how you doing, mr. cramer >> good. how are you? >> caller: the question i have on macy's. macy's has 19 billion to $21 billion worth of real estate one piece of property in manhattan alone is worth $8 billion macy's market cap is $6 billion,

$8 million that one piece of property could buy all the stock. the net income at macy's, eps 358. >> right. >> caller: with a pe of 20, the stocks should be 70 on it. hedge fund, somebody comes in, and buy a lot of stock and force their hand. >> you know, store board did a good analysis, an okay analysis of the real estate, and they got nowhere near those numbers i think those numbers are wild high the growth is suspect. that's why it sells for seven times earnings i am not buying into this one. i am sorry i like the company very much, but not as a real estate play. more as a get paid to wait before cash is on fire all right. some retail businesses ending up like the revolve group wait for a pullback before you pull the trigger much more "mad money" ahead. 50 million residential properties and ten trillion are

in mass debt tonight i'm talking to the number one mortgage lender, find out what's happening don't miss my interview sw quicken loans. and why eli lilly and jon fortt johnson & johnson are undermarket. stay with cramer experience the style, craftsmanship and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399/month for 36 months. experience amazing at your lexus dealer. man: stand up if you are a first generation college student.

stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent. but it doesn't equally distribute opportunity, and paths are not always the same. i'm so proud of you, dad! man: i will tell you this, southern new hampshire university can change the whole trajectory of your life.

earlier we learned mortgage applications surged last week, up 27% versus the week before. decline on long-term interest rates led to a wave of financing events that's what happens when people are worried about a slowing economy. bond yields come down, lending is less expensive. could the housing market be ready to make a comeback we want to check in with one of my favorite companies, the largest mortgage lender in america, the privately held quicken loans. jay farner is the ceo of quicken loans. a better sense of what's happening in the mortgage market and his own company, mr. farner, welcome to "mad money." >> good to see you. >> before we get started i just want to ask, one of my heroes, not just because of all the things he has done with sports teams. you know, that's nice. but of the rebuild of detroit,

which he probably i think is single-handedly doing. how is his health? >> he suffered from a stroke a week and a half ago or so. he is on the road to kreefrry, and if there is a guy that has the passion and energy to accelerate whatever timelines they are giving him, it's dan's. we are root fing for him. >> he is a special man. >> i'll tell him. >> i know detroit wouldn't be -- everyone tells me, my wife was saying we should get a house in detroit. the guy is dan gilbert. >> we are happy to help but a mortgage, too. >> let me ask you about mortgages. i want people to understand while there may be gloom that causes rates it come down, there are some team ringing the phone off the hook right now snrjts as you said, mitch mcconnell application are up big time. i think the awareness level is up and we are just having record months this quarter will be the largest in the company's history skrun will be the biggest we

have ever had. it's on the purchase side and refinance side. >> that's huge you are the largest. >> we are the largest. we are getting larger. most important thing, while we do it the turn times are remaining low, the client service remains good that's the critical piece. we have to take care of every client no matter how many loans we are doing. >> i should have started by saying i owe you and dan an apology. i try to do as much homework as i can. i was under the impression from some brick and mortar bankers that you were doing things that were not as good in lending as they did, and then dan sent me the facts. the actual statistics. you are much better lender i'm just going to say it. >> thank you. >> i feel bad and i apologize to you personally tell me how you do it because at love people say not a deposit bank, i don't know, is quicken too quick? >> i think it's important to understand that there is probably not a connection between an fdic insured deposit and the quality of mortgage that you write. so for us it's about technology.

it's about people. it's about the client. and as you -- and i think dan sent you, when you look at our compare rocatios, they are top notch. i have been at the company 24 years. we are a 34-year-old company we care about where we are at in detroit, care about our team members. we are thinking big picture, long-term. are we goidoing the right thingt make the best decisions, lend to the right people that's important, too, jim we have fannie, freddy, fha. it's or responsibility to follow the guidelines properly -- >> even though you are not a brick and mortar, you are not under-regulated. that's another rap they told me. >> yes we have got to folly that regulation and make sure that the that the police officer, the teacher in your community, that they goat tet the loans doing everything properly and right and reaching out to everybody that deserves to get

financing here in the revolve. >> what's the relationship between this low unemployment rate and default for you >> any time we have unemployment low, the defaults are less that's a beautiful thing it's all too important that you take this time and invest in your services platform because it won't always be this way. are you making the right technology investments, people investments. as we see defaults tick up, even on the best portfolios, you handle them properly, which means taking care of the client first. >> people say, jim, i know you are enamored with this guy gill bert the quicken loans, they do no doc loans. i say that's completely untrue. >> absolutely. as you probably know, we sidestep the crisis of decadent -- we focus on conformi conforming conventional loans. that allowed us to make the investment in technology coming out of the recession that i think others weren't able to do and gave us at the stability to be the largest lender in the country. we stay on that path we are thinking about the quality of the loan. we can watch how our loans are

performing that guides us in every decision that we are making. >> i am acutely aware that whatever rules you follow could be tightened if a democrat wins the -- senator warren is not really a friend of the bake. i know senator warren. there are levels of reasonableable that could be occurring. does someone in your position have to be concerned we could reregulate again if some of the democrats who are running now in the white house? >> i think regulation focused the right way is important what you -- you know this better than anybody when you change regulation, the impact it has on a business, right, it just doesn't happen. docs have to be changed, technology it takes the people that could be innovating and helping clients, they redirect the attention to working on the new regulation. >> right. >> it better be great regulation that's the right step forward for the housing market whoever is thinking about it, republican or democrat, the

shame is when we reregulate for the sake of doing it and it actually hurts the consumer. now you are focusing efforts on something else besides developing great products for them. >> that's totally true we want people face to face with as many customers as they can. >> yeah. >> i think that things are fine in the country that's what i have been saying some people think things have deteriorated because of the trade war. do you feel okay about no rate cut next week? do you want to wait? how do -- what's your temperature? because you are doing all that business i don't know. >> it's a great question so probably two things i have been telling people the last few days the uncertainty around what is going to happen with interest rates is probably at a high we have we have not seen in a while. words and tweets can change the direction. we are both surprised of the talk of two rate cuts coming here, right? >> right. >> when you see what's happening on main streets, the clients we are talking to, it feels like the economy is very, very

strong we think about a scalable platform a lot of lenders sometimes ramp up when rates tick down. what what has when they tick up? we are focused on the long haul. that's the most valuable resource we need them here for the long haul we don't play that cyclical game. >> once again, best wishes to dan. you are welcome on the show anytime. you are a delightful guest jay farner, ceo of quicken loans. a lot of good things to say. "mad money" is back after the break.

lightning round is sponsored by td ameritrade it is time ♪ and then "the lightning round," are you ready? i am going to start right now with penkenny in tennessee. >> caller: how are you, jim? >> i am doing well, kenny. i'm doing well, kenny. >> caller: about a year and a half ago you recommended suntrust the financials were great and the most important thing you mentioned was the fact that their net asset value was $5

more than the selling price of the stock. so i bought it sure enough, it went right up. >> yeah, that was a good one. >> caller: as a matter of fact, it went up above today we have citizens financial group. they are now selling at $12 below the net asset value. >> yeah, i got to tell you, citizens financial is just too cheap. i am going to say you should buy the stock. i don't understand the valuation. i really don't let's go to don in virginia. don. >> caller: yeah, xcc sim rex energy. >> no, no, no we're done joe in new jersey. joe. >> caller: pays, pay sign. >> i think we missed that one. that's up 200% stefano in new york. >> caller: i watch you every night. we love you, jim my ticker symbol is amtx. >> no.

we're not going there. we've got so many -- you know what, bye-bye! let's go to max. max! max? >> caller: hey, jim, can you hear me? >> i hear you, max what's up. >> caller: my question about bio therapeutics, ioba. >> uh-oh i'm stumped. i don't know that. sorry. let's go to mike in north carolina mike, mike, mike >> caller: booyah, mr. cramer, csco, cisco. >> i wanted to fly in chuck robinson and defend yourself lightning round! >> announcer: "the lightning round" is sponsored by td mayor round" is sponsored by td mayor trade. i want to know what i'm paying upfront. yes, absolutely.

do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems lt of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

you want to know why this market seems so difficult to navigate let me tell you a tale of two stocks two famous stocks you all know eli lilly and johnson & johnson. last week's game plan i told you lilly will be making a presentation at the diabetes conference this week the company is locked in this war with nova. for this particular part of the market, at first their data looked pretty darn good. when people parsed the results

critics argued that lilly was furious. based on what we have seen so far, we believe the data are in line with expectations while lilly's data has been in line to disappointing leading us to expect novo's shares to rise that's what happened lilly's stock plunged from 118 to 112 in a two-day pummelling pretty straightforward, right? then macroeconomic numbers, numbers that show tame inflation, could be about to experience a slowdown. throw in the fact that the price of oil last another two bucks today, another bad sign for the economy. you are witnessing a whel sale rotation into the stocks rather than selling you eli lilly's stock, people are buying it hand over fist because it's a recession stock and it's a rotation, for heaven's sake. you are erasing a big chunk of the decline but on no specific company news

that is confusing. it's not just one stock. we're seeing the exact same thing from johnson & johnson just a few weeks ago j&j's stock plumted from # 139 to 131. why? because the state of oklahoma is taking them to court in the role of the opioid epidemic a star witness said inflammatory things, saying everything they could do to get at doctors to prescribe more and more opioids, end quote. the testimony devastating. on top of that, today j&j lost a talc cancer case in california which is bad news for the class-action lawsuits over the same thing this should have been dubbed a win, right what happens the stock continues its winning streak finishing up 1.36% today. the stocks set up to challenge the old high that high had been reached before the reuters and "new york times" articles that accused them of covering up the asbestos and baby powder story. that is just really alleged. all right.

these two instances would have laid to waste j&j stock a few weeks ago. now they don't even matter yeah so the next time you are ready to dump a stock because of company-specific bad news, remember there is more to the action when your sector comes back in style on the wall street fashion show, it can cancel out an enormous amount of bad news. that happens when people are worried about a slowing economy. the rotation trumps the news flow oh, but there is a problem traders will take back out of these safe consistent slowdown stocks the moment the federal reserve decides to cut rates it will be the opposite. no amount of good news will make it exciting. stick with cramer.

last-minute mad is sponsored by webull.

zero commission. zero compromise. you know i have been saying a couple major retailers have been able to do well in this environment. i said that costco is doing well, walmart and target are doing well add two more rh, the restoration hardware, reported a terrific number and a guide up and they said that they are dealing with these tariffs okay and then lululemon once again, i told you this would be a good one with a spectacular number and again saying we are going to triumph over the tariffs it looks like these retailers have learned how to be able to state their case to you. i wish there were more retailers i could recommend right now, but you know what? we are going to keep the list short because so many that are in the mall are doing so badly, i really thought that dave and busters would be good. let's be careful very few retailers are working i like to say there is always a market somewhere i promise to find it for you here on "mad money."

i'm jim cramer and i will see you tomorrow an exclusive summit for financial leaders shaping the workplace of the future. bold innovations, increased productivity, new opportunities. to register visit cnbcevents.com/atwork. than we've ever done before. announcer: and she's got a secret weapon... - pick another case. - number ten, ♪ yeah-ea - whoo! - come on, girl, and give it to me. announcer: to help her reach her $1 million goal. - the board has flipped in your favor. - i got a lot going on on that board, and i'm gonna give it a try. ♪ no deal, no deal - this is great. it's "deal or no deal" the musical. announcer: but the banker has her own surprise... - oh, come on. oh, my gosh. announcer: that'll knock her off her feet.