bought caterpillar, cat >> you know it is a kicking game it is an important part of the nfl. >> obviously >> i am going to give you a field goal >> "mad money" starts right now. my in addition 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 cramerica other people want to make friends, just trying to make you some money my job is not to entertain but to educate you and teach call me at 1-800-743-cnbc or tweet me at jim cramer early last week when the market was getting hammered before i went on vacation, yes, indeed i was on vacation, i don't do that

usually, but i had to take one i kept reminding you that good things can still happen. sure enough today we got a confluence of great news that made people want to buy hand over fist. >> buy, buy, buy, buy, buy, buy. >> s&p up 1.3% and the nasdaq pulled 1.75% >> hallelujah. >> what happened what happened? remember the consensus on wall street we were headed for recession, right well, then we learned that the white house has restarted trade talks with china we got some strong economic data terrific jobless claims number wrap it up i should have gotten a bow, wrap up a box and you have all the ingredients for a spectacular rally. so where do we go from here? isn't that what matters? that was history before i break down my current world view let me give you some anecdotal evidence about where we are or at least where we thought we were until today. i'm walking down the street going over to my small --

mexican place san miguel, you know what i'm talking about. a very nice neighbor stopped me and said, will there be a recession? i said no, i don't think so. but then she tells me how everyone is saying there will be a recession. i explained i'm not one of those people and warned her you have to be careful when everyone in the crowd expecting the same thing. she just walks on. then this morning while i was on the way to "squawk on the street," construction worker reached out and fist bumped me after saying he's an avid watcher. but then he looked at me with a bit of a fury, he was shaking. we're about to go in recession, aren't we? shouldn't i be worried about my stocks i told him, listen to me i don't see a recession coming he wanted to know whether he should dump his stocks if we do get the slow down. i reiterated i don't think it's happening. he didn't buy it either way i told him to stay the course i bet you he sold today. why are so many people terrified right now? frankly i think it's a one-two punch.

they're worried about the president's tariffs because trade wars have sometimes been very v he bad for the business and they're worried about the bond market because the media keeps telling them to worry about the bond market. it is difficult to explain the inner workings of the bond mark. it's 500 pages on the yield curve. the president has a bad habit of oversimplifying the yield curve. you should be really worried because that's the dreaded yield curve and something you should be worried about they always stress this happens right before a recession, and they scary and they scary you and they scare you and they scare you. i totally get it the reimpact of tariffs is hard to assess. just difficult the president tells you the chinese are paying for it. media says you're paying for it. somebody's paying for it hey, this inverted yield curve, having both of these negatives on the table makes it easy for commentator to predict a recession especially since no one ever holds the bears accountable for being wrong, except me. and, look, there is a visible slow down versus lease last

year there's no doubt the trend is down, tax cuts and stuff a reversal of that trend, reacceleration, so to speak, is almost never in the kartds the negativity does become self-fulfilling. which is why random people on the street keep asking about a recession and they want to sell their stocks then you get a day like today and the bulls finally have some ammo, and the bears are on the run. first, in the never-ending saga of the trade talks with china, we learned there will be some -- china's commerce ministry issued a statement that serious mid-level discussions will start later this month to prepare for the visit. remember i told you the media trust the chinese more than they trust the president. whatever hey, remember when everyone was fretting about whether or not the president told the truth when he said the chinese had called him i told you it didn't matter either way because true/false is signaling a willingness to deal. twitter hitters, thatwas right

these talks are enough to ignite the cyclicals today. it's been lagging the overall market pretty badly because people are worried about a trade war in commodities we got payroll data from adp largest processor in america, pretty low jobless claims neither of which were expected tomorrow we see the labor department's employment number things can get ugly if they're disappointing. after what we learned today, i suspect they'll be solid third, after the market opened we got more bullish data the commerce department noted orders were up 4.4% in july, when they were expecting 1% gain i heard someone say manufacturing is in a recession already. it's hard to reverse these negative perceptions i do my best, but i'm one guy. consider in june manufacturing was up .5% these numbers are accelerating does na sound like a recession to you fourth, combination data points allow interest rates to shoot higher everyone is worried long rates are too low.

that's the big warning signal a recession is supposed to be inevitable when records go up, it tamps the slow down chatter and allows stocks to rail what happens with the stock market in general? you do get a c change with what's happening, what's working. let me give you a classic example, a stocky like very much you know it, union pacific big railroad, right? yesterday the company slashed its outlook based on single digit decline in rail carloads because we're no longer exporting much soybean to china and the trade war is starting to hurt their inter modal traffic that's 15,000 on those ships and they come off and go on railroads. union pacific stock refused to go down. today it rallied hard, up nearly 4% why? well, thanks to the better economic news and the possibility of the trade truce, maybe we're at the bottom. of course, all the china stocks, 3m, honeywell caught fire. i like caterpillar even though they have less exposure in china than people think. despite copper and oil was far

more important to cat than china, i know lots of people are worried about the tariffs leading to higher prices at retail one look at the action -- j. powell, take a break from your screen or whatever you're doing and look at watch. watch, watch, watch. watch is my acronym for walmart, amazon, target, costco and home depot. the action in those stocks tells you everything aside from amazon, all these stocks are within spitting distance of new highs or we're there. big change in great management, business is strong we learned target is sticking to the suppliers, telling them to eat the cost of their tariff hikes. target is the smallest of the watch. they have the cloud to strong arm their suppliers. don't own the suppliers. the big five retailers have too much power for the tariffs to cause them serious problems. it's where we all shop sure, most of the strength in retalgz is concentrated on watch, but strengthened nonetheless. we get a fabulous bifurcation in tech tech economies need it to accelerate we had a fabulous day. meanwhile, the sector of the

growth tech companies that don't need a strong economy saw their stocks get clocked even as they were ultimately able to rally back some from big losses. how long can this last bottom line is nothing much has changed. all the trade talks so far have been ridiculous failures every positive data point has been followed by a weaker one. there is one big difference. maybe some, please, commentators will ease up on the desire to endlessly call for a recession, at least for a couple days unless the nonfarm payroll point extinction up the joint tomorrow in which case here we go again and my neighbor and my construction worker friend, yeah, the fist pumper, will once again be needlessly scared out of their wits and more important at least to the show, their stocks let's go to joe in new jersey joe! >> caller: hello, cramer >> hello, joe. >> caller: i want to thank you for all your great advice and helping my portfolio grow. >> thank you, partner.

good to hear what's up? >> caller: my question is on canada goose i bought them on your recommendation and i want to know how will the trade deal with china affect them and is the animal rights organization peta going to be a concern? >> i am worried about peta you always remember peta a long time, i'm reupped just because i'm off of it. i think canada goose is fine it's just not great. why? it's a supplier. i'm trying to get to the bottom of this and recommend watch these days, which is walmart, amazon, target, costco and home depot. that's the way we have to go we have to go with the companies that have the power. anyway, i know there's lots of worries about an impending recession. but i'm feeling a bit like it's much ado about nothing right now. hey, shakespeare still has game. on "mad money" tonight, it's that time of year again. i'm getting ready for some football and with kickoff a few hours away, i'm reviewing my dream

stock draft for you and your portfolio so you'll understand the stocks better. then then carvana is car buying to the critical masses but how long can it walk the growth tight rope? i'm going to speak with the c.e.o. and high fed ratsz, tariffs and chinese trade wars are all just distractions in this market. i'll tell you what's really pulling the strings. so stay with cramer. >> announcer: don't miss a second of "mad money." follow jim cramer on twitter have a question? tweet cramer #mad tweets send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.

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because there's always another team looking to punch one in. a spectacular touchdown grab with nfl redzone from nfl network on xfinity, you get every touchdown from every game on sunday afternoons, all season long. watch every breakout star, every heart-pounding running attack, and every big time defensive stop. sundays were made for football on xfinity. that's simple, easy, awesome. add the sports entertainment package for nfl redzone. click, call, or visit a store today to learn more. this market may be so volatile it gives you vertigo. after another day of ans, one thing has become crystal clear you've got to find a way to stick with stocks. especially when the situation seems grim like it was just the other day. what was that, like tuesday? every time the market sells off

like it did earlier this week, people panicked. and every time what does that turnout to be? a mistake. that's why i want to make it easier for you to stay the course in what is a chaotic market so how about this? because tonight's the official beginning of the football season with the packers facing off against the bears and chicago on nbc, it's one of our annual traditions around here, yes, i can't believe how many years we've done this. this is the "mad money" fantasy stock football draft show. it's not just that i love fantasy football, though, i completely do. in fact, i just launched a new site, bull market fantasy where i work with fantasy experts to navigate the nfl season if you needs a doctor in the house, we've got them like i tell you every year, managing and diversifying a portfolio of stocks has a lot to do with putting together a fantasy football team.

different companies fill different roles. the qualities you value in a kicker differ from the values you want in a quarterback. i love doing this draft. because it puts the stuff we talk about every night into context tla know you'll understand so let's go position by position starting with our running backs. if you're a fantasy aficionado, you can never have enough runings backs. unless they get injured you can rely on your top running backs to get a certain number of carries per game giving your fantasy team a steady stream of points per week. the best running backs you draft in the first few rounds, and then start every week, i like core tech holdings in your portfolio. the kinds of names you buy and you hold rather than trying to buy and trade. can you guess where i'm going? in this year's fantasy draft, my very first pick, fourth overall, by the way, was zeke, ezekiel elliott, the cowboys running

back last year he was the top rusher in the league. he would have been a top pick for anybody. he was holding out for a new contract from the cowboys and for weeks it wasn't clear where he'd be playing, when he'd be playing, i don't know. when i drafted him, it took a lot of risk. it was two weeks ago i made the bet the cowboys would give him an extension. happened yesterday who does zeke elliott remind me of yeah, exactly, apple classic running back for your portfolio. normally it's easy for me to say own apple don't trade it last year was a bit of a roller coaster because of the trade thing with china air pods are my favorite things. hard to get them and the apple watch which i swear by which now even knew that i was on a new kind of machine at home. absolutely, when i was working out this morning at 3:00 a.m. these went into effect -- well, it kicked in and there's going to be more come december and they could do some real damage i know that. but i think investors who buy apple in the weakness will be

rewarded you just need to have faith in tim cook and the company's service revenue stream the same way i have confidence in zeke. the owner of the cowboys on the floor of the new york stock exchange yesterday said i was a real smart fella for picking zeke, and that i would be rewarded even as all philadelphia seems mad at me for breaking ranks what can you do? can't please everybody who else is out there? okay, the most sought after player in fantasy football saquon barclay, the new york giants they have an easy schedule who burst onto the scene with an incredible rookie year in 2018 so what's a good analog? it's going to sound a little crazy, but barclay reminds me of mister softee, microsoft the reason the microsoft today is not the microsoft of five or ten years ago. this company has totally reinvented itself under leadership of c.e.o. sacha nadella and become a computing power house. azure, every heard that of

it's up 30%. it is at only one on earth with a $3 billion market cap. you don't hear much about either of them off the field and isn't that a relief? isn't it great just to have a player who is a player antonio? ha ha. anyway, one more quick running back christian mccaffery. i drafted him a couple years ago to put me in the superbowl with the panthers who had a break out sophomore year last year mccaffery can rush, he can catch. he had a mind blowing 107 receptions to me that sounds a lot like amazon which, by the way, fip queen says it's going to go to 2100 2100, straight line. look out anyway, this guy is great at both the slow and steady retail biz and the super sexy cloud infrastructure biz just like mccaffery. wish i had him, too. can't have everybody next up, you need some wide receivers, you need splashy

players to give you chunks of yardage ought at once. they are boom or bust from week to week which is why i draft them much lower. some people don't like my wide receivers. they're wrong. this reminds me of speculative cloud based stocks which are good, but get hid hard when the going gets tough i like d'andre hopkins from the houston texans he destroyed me last year. one of the most consistent in the league reminds me of cramer family fave octa they handle all your log-in information for website services it's red hot, up 100% for the year just like hopkins who didn't drop a single catchable pass last season. beating the numbers every time they reported since the i.p.o. in 2017. the stock got hammered today and i like it in the weakness, weakness caused in part by competitor palo alto networks. their c.e.o. talked about beating opta to the cyber punch this very morning on "squawk on the street" and said, by the way, that i liked octa way too

much well, give me a break. who else all right. there's julio jones from atlantic falcons high risk/hirie ward pick. by the end of last says on he had the highest yardage in the league he looked to be -- he was playing near full speed in practice earlier this week the other thing, jones who is two years left on his current contract is waiting on an extension with atlanta if he gets it that might give him an incentive to crush it this season. but maybe he doesn't get it. you know what this reminds me of i was going to say cisco the reason i have this is because i promised to wear it on air in a bet that i made with, yes, chuck robbins of cisco fame but, you know what he lost. forget about it. you know what this stock -- what he reminds me of reminds me of service down, a cloud-based software company that helps automated back office jobs now it's been a huge long term winner just like jones when they reported in july, they gave technical guidance. since then it's been clobbered

they both represent opportunities here, but you have to be a believer if you're going to bet on either one i think the consistency of service now and the consistency of this man julio say take service now. let's not forget odell beckham, jr. i think he has a lingering injury he was traded to the cleveland browns in the offseason. he's a phenomenal receiver he has been hobbled by the injuries i think he makes a comeback this year similar to salesforce, cloud computing pioneer that slowed lately, up 17% even though they had the best quarter of my cloud kings. there should always be a place in your roster for a player like o.b.j. or salesforce.com when you're building a diversified portfolio, you need to balance mix of consistent winners like a great running back in fantasy football, growth names like wide receivers, zeke, saquon, christian, dopple

gangers, microsoft and amazon. for wide receivers you can't go wrong with d'andre hopkins, julio jones, or odell beckham, jr., with their stock equivalents. salesforce how about the rest of the team you're going to have to stick with cramer. it was sophie's big day. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut.

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we're back with our annual stocks i've gone over my favorite running backs and wide receivers. but there's a lot more to a balanced fantasy team and a balanced stock portfolio for example, you might want a quarterback. this is one of the weird things about fantasy. in actual, the quarterback is the most important player on the field. in fantasy football, it's a much lower priority that's because in most leagues there's only one quarterback spot on your roster. you can only play one quarterback in the league. there are many great players who can fill that role let me put it this way last year the difference between the 5th best quarterback in the

nfl and the best, tom brady, might have fallen, less than 50 points the entire year, roughly 3 points per week. there's not a lot of daylight between somebody darn good and increasingly mediocre when it comes to football. if you do draft a top playing quarterback, mahomes, for instance, the chiefs, who racked up 52 touchdown last year and more than 5,000 passing yards, it can give your team a major boost. mahomes was the single best scoring player in all fantasy football last season there is a vast difference between the number one guy and number three or four guy when you think about it like that, drafting a quarterback for your fantasy team is a lot like picking a retail stock for your portfolio. but retails are incredibly important to the actual economy. retail stocks are often neglected by the market because there are so many mid performers who don't stand out. in fact right now we have a ton of chains that are really struggling, and major players in question in the competition. those in question i call them

watch. walmart, amazon, target, costco and home depot they have the scale to mop the floor with their rivals and, of course, to even crush their suppliers. so what's about patrick mahomes? who was snapped up by our executive producer regina. we dined in the third round of the not your average -- how did i let him go by? how did i let her, who is -- >> it's very -- >> how did you do last year? >> i didn't beat you >> there you go. >> i beat you the year before. >> that was yesterday. reminds me of target frankly she doesn't, although i tell you she can use a change of clothes that would be better at target if target is having -- target is having a break that year, up more than 60% for 2019 why? sorry, i didn't mean that. i could have said walmart.

they're both taking calculated risk mahomes isn't your typical pocket passer. he'll scramble in the back field, no problem tossing it in the air and letting receivers make a play, tyree kill. he had 12 interceptions last year that's a lot everyone is okay with it when he takes risk, they need the out sized rewards. target's the same. shift to e-commerce, target c.e.o. brian cornell decided to double down on locations including the in-store experience rolling out smaller for matt stores, putting them in urban areas and college campuses is smart now it's paying off and the stock is on fire if we're comparing quarterbacks to watch names, russell wilson with the seattle seahawks, he's kind of like costco. neither flashy, but consistently strong year? and year out home depot and walmart are

increditi incredible walmart is the phenomenal drew brees who gets passed over way too often. man, he burned us last year. we've got running backs, receivers and quarterbacks, but how about a tight end? this doesn't have a position that's often -- it's disrespect ed in fantasy football or is unrespected. just a few highly sought after guys at the top, not interested in anybody lower there's a good reason for that a title eght end is a hybrid bl who makes the same splashy impact as a wide receiver. take kelsey with the kansas city chiefs he's really a receiver kelsey has become the ultimate situation for fantasy football players after posting incredible numbers in his first season as a go-to target for the great pat mahomes. i think he does it again this year which is why i picked him in the second round for my own fantasy team, the ski daddy. if you want a similar situation in the stock market look no

further than -- get this -- t-mobile the wireless company waiting on the acquisition of sprint. like kelsey, t-mobile was good on its own but with the sprint deal could be fan tact. while they still need to get some state attorney general on board, the chairman gave the deal its blessing last month i'm a big believer in c.e.o. john ledger and if the merger is going -- allowed to happen, all i can say is investors are going to make a fortunate with kelsey -- t-mobile next, how about flex the flex position has become a staple in fantasy football, a space on your roster that can be filled by several players from different groups running back, wide receiver or tight end. you want to fill it with someone who has a chance to deliver a break-out performance, somebody who can -- take this down because nobody believes me dee bow samuel he's a rookie the san francisco 49ers drafted in the second round. a wide receiver with spectacular nca track record with the

university of north carolina this is a speculative pick i am benching valdez, marques -- exxon valdez, to play samuel even as i fear watching tonight's game on nbc, this green bay packer might have a break out game against the bears. so who is the samuels stock market equivalent? you know what, how about another rookie, roku, the streaming video technology company with a stock that's been red hot. when roku came public two years ago, we didn't really know what we were getting, all right sophomore slump, i don't know. was it a hardware maker selling little boxes that let you stream online video on your tv? it was a subscription service. completely mystified a lot of us assumed roku was another gadget maker then they started licensing their technology to everyone in the industry if your tv can stream directly from the web it's powered by roku this is the pure play on cord cutting, which is why the stock has been such a winner i'm getting we see something

similar from tebow roku had a down day as investors rotated toward the sickly kalz out of the growth stocks like roku i did say wide receivers were boom/bust, didn't i? finally we need a defense and kicker these are typically -- you don't want to take these too high. when you need a defense you want a team that wants grub that's why i like tonight's bears. they were the defense by wide margin last season while the legendary defense went to the broncos, that he have khaleel mack why did i pick the vikings i don't know stock market equivalent, how about the gold miners, symbol gold as the stock market got volatile, it's under 1200 a year to more than 1500 today. think of the precious metal as your insurance against economic chaos. it defends your portfolio when everything else is on shaky ground isn't that what we want? and my favorite gold liner is

back that's right, formerly known in the old days barack. they're led by the great dr. mark bristow this is a merger of barrack and land gold, and that's what you want for defense as for a quicker this year, i opted for a hometown boy, jake elliott, beloved youth he was the 5th best last season in terms of points it helps retailers make sales at a distance via their web sietsz. that's why the stock is such a fantastic winner elliott kicks from my own ski daddy. bottom line, the next time you're picking stocks, remember, a group of portfolio looks a lot like a good fantasy football team, and i hope that reminds you how investing can be rewarding, interesting, and lucrative. glenn in indiana, glenn. >> caller: jim, i wanted to thank you for all you do for us home gamers.

>> thanks a lot, buddy what's going on? >> caller: i was wondering what you think of twitter it's moving up -- >> i think twitter is good i'm reading benioff's book it's not out yet, but it's real good he talks about how he got talked out of buying twitter. and i haven't talked to mark about this, but the way i see twitter, the stock doing, i kind of wish he had bought it i bet you his stock would be doing better all right. managing diversified portfolio is a lot like putting together a winning fantasy team so look for the overlap between your killer players and your winning stock picks and do not miss the big kickoff on nbc tonight. bears, packers, 7:30, nbc. much more "mad money" and sticker price for a new vehicle reached 40,000 in the first half of 2019. looking for a way to profit off that trend i'm talking the c.e.o. of carvana to see if it's worth considering. then there are certainly moments that are momentous in the stock market but now isn't one of them. i'll explain why and all your calls rapid fire in

tonight's edition of the lightning round. so stay with cramer. ♪ keeping the night interesting, is all about setting the right tone. ♪ lower carbs. lower calories. higher expectations. ♪ the light beer you've been waiting for has arrived. corona premier.

it's no secret car shoppers could use a little less time hassling and more time behind the wheel. this company wants you to skip the dealership and make the car-buying process run like a well-oiled machine is there a traffic jamb ahead, or will this big idea be nirvana for investors? >> with that open, you have to ask yourselves, what do we do with carvana some stocks don't know when to quit, and this is one of them. the web-based used car dealership that shapes up the entire industry, viewers know i'm a big fan of used cars because consumers want bargains, these days cars last longer than ever the whole complex has been doing well carvana is something else not tirely here's a company trying to revolutionize the way we buy vehicles no dealerships, no strong arm tactics. go to the website, pick up your car from one of the giant vending machine style garages or have it delivered straight to your house there are a lot of skeptics here people fretting about how

quickly carvana is burning through its cash, how much debt it's taking on these are all legitimate worries. but every time i listen to bears the stock powered higher anyway. carvana sales more than doubled the first half of the year the stock is up more than 150% for 2019 a major move after the company reported some really incredible numbers next month can it keep climbing let's take a closer look first time with ernie garcia iii, chairman and c.e.o. of carvana mr. garcia, welcome to "mad money. >> thank you >> good to see you have a seat. >> good to be here >> as i say to people on the first time, i want you to walk through what you do because it is, indeed, revolutionary and it is, indeed, disrupting one of the largest markets on earth >> sure. so we sell cars online our mission is to change the way people buy cars, so customers come to our website. we have 18 to 20,000 cars in inventory. they can search through all those cars, get approved for it and select financing they can ged a trade-in value for their car, sign contracts

online we deliver the car to their door as soon as the next day. they get a 7-day return policy doing it a different way we can save them a significant amount of money >> this is opposite of everything that's currently done >> it is >> from the return to the idea they can come to your house to the number of cars you have. isn't that quite different from a typical dealer >> so, something i think is great about our business model is because we have a national inventory that's available to customers everywhere, all the cars anywhere in the country can be bought and brought to them at their door at a dealership that's maybe 200 cars in the lot. >> people who question your model say it's too good to be true at this pace it's too good a deal for the consumer, which i always like. what do you say to people who say in the end you really can't get profitable -- and also the trajectory of what you are losing and what you're not. >> we're growing very fast start with that. last quarter we grew by 95% in units, 108% in revenue

we grew by 134% in customers interacted with. 188% in cars we bought from customers. so that does require some investment that said, despite all that growth over the last three years, we've gone from losing about 23 cents on every dollar of revenue to 3 cents last quarter. that's a big move in just three years. and we did that while increasing the size of the company roughly ten fold >> let's say tomorrow you wanted to be profitable you could be, i think, judging by that trajectory is that really the goal of the disrupter? >> so, you know, here's an interesting stat last quarter we were about 40 basis points in the market for every thousand cars sold in the u.s. we were approximately four i think when you're that small relative to the opportunity to a trillion dollar opportunity, i think it's hard to say now is the time to take your foot off the gas. we're definitely accelerating into this opportunity because it is so big. despite all that acceleration, all that investment in growth, we're still making a ton of progress financially >> we talked with you about your company, very fond of it and the vending machine model, i think that's very exciting we got some graphics that shows what it means.

walk us through that and how that's doing >> i think the vending machine is really interesting. a view that i have is one of the ways the world has changed in the last 10 or 15 years, interacting has changed through social media and other channels. it's important to build your marketing dollars to the experience with their customers. they'll talk to their friends and they'll say what is that that serves as marketing dollars as well which is more efficient overall. the vending machine serves that purpose. >> you have been in atlanta. it dozen credibly well >> we have 20 vending machines now. we have 140 markets overall, so, yeah, we don't have vending machines in every market, but we're working on that. >> now, you mentioned cars you buy from people. that's also integral to your business model >> it is so an interesting thing about buying cars from customers, the car buying market in general is really all used car transactions are just trades between people it just goes through this elaborate mechanism of a customer goes to one dealership, sells it to an auction to

another dealer and to a customer if we can collapse all that, buy from a customer and sell directly to a customer there is a lot of savings with that we can share with the customers >> the auction houses seem to like you >> we're a big -- in the market. we are the fastest growing automotive retailer. we have great relationships with them as well >> some say we never have enough noni to get profitable in the end they have to keep raising capital. i saw you did a capital raise, hopefully you're not going to do one after the show >> well, so we ended last quarter with a little less than 8 50 million in liquidity resources. that's pretty small compared to the capital resource we've got so we feel really good about our capital position >> if the fed were to cut rates dramatically you'd make even more money, wouldn't you >> you know what, i think the direct impact would likely be na because we do have a finance operation associated -- >> i think it's a good one >> it is it's a great part of the business it makes customer experiences simpler because they can get

approved for financing in seconds and we don't have to check with any third parties our credit scoring engine, our pricing engines, all of that goes into driving what they're able to do they can click a button and get finance right there. >> lot of people are watching the show thinking, why didn't i think of this? what can i do to think like ernie garcia i need to you go back in time. what made you think you could do it -- really kind much disrupt the industry by the way auto nation and carmax thought they disrupted. >> i suppose i'm a curious person you always try to think through what you can do. i was probably -- i was probably too vain thinking we could make a change but had a bunch of friends willing to take the leap with me and be just as vain as i was >> working with you, lent you money? keeping in mind there are people watching saying i want to be ernie garcia >> you should reach higher to all those people out there, but yeah, so i've got several really close friends that i was lucky enough to start the company

with and then we've hired, you know, thousands of people since that have brought the same passion to it that we've brought to it and i think we've been extremely lucky to have the success we've had so far >> i'm glad you said luck because it does play a role. but skill and hard work, you have that going for you. that's ernie garcia, 6 carvana fascinating company. "mad money" is back after the break. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

>> announcer: lightning round is sponsored by td ameritrade >> it is time! it's time for the lightning round. and then the lightning round is over are you ready ski daddy! time for the lightning round start with steve in california steve. >> caller: are you ready, ski daddy, jimmy >> you bet i am. so are the team, ski daddies what's going on? >> caller: jimmy, i'm all broke, i i've got no dividend and i want to ask you right now with the volatility, should i be getting into a dividend stock like starwood and holding it and letting it -- >> yes now, i've been recommending starwood now for about 15% and i

am not done. i think it can still go higher anyone who bets against barry stern bets against me. let's go to adam in virginia adam >> caller: hey, jim, my father-in-law and i were talking about beyond meat and i wonder what you think about it and yum brands >> it's a great buy, yum brands. a new c.e.o. let's go to richard in new york >> caller: hello, mr. cramer i know it can't be said enough times, but thank you kindly for all you do >> appreciate it, appreciate it. >> caller: you know, it gets me all pumped up just watching your show, but -- >> >> thank you >> caller: because you're right so many times. listen, i'm retired now, looking to draw down on my bank stocks, netflix in particular. do i hang in there -- >> it's my least favorite bank stock basically. it's my least favorite because

millennials and gen x, they're all cheap. they don't have student debt they're probably not going to pick as many sites might cut the netflix quarter. might be wrong how about we go to sue in minnesota. sue. >> caller: well, jim, hi in 2015 i bought a small position in gw pharmaceutical because of their investment in the medical uses of cannabis i understand they have one drug that has been approved by the fda and many more in the pipeline it's been a wonderful investment to me until the last two months when it's fallen about 20% >> right >> caller: here's my question. is it now time for me to double up or should i be happy with the -- >> i would keep your position. i don't even know if you need to double up. you know, we had justin grover on reecently

i think it's a really good company. in the cannabis space it is the best because it's actually cannabis that's been approved. how about audrey in new york, audrey >> caller: thank you for taking my call. i'm interested in finding out about beyond meat. what's your opinion? >> this is a really, really hard i saw the impossible burger on burger king. it's hard. i'll tell you why it's hard. ethan brown is great the stock is expensive and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by t.d. ameritrade what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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what if the true tale of the tape here is the tale signifying nothing? what if we're agonizing over seemingly chaotic situation that's a lot more stable than it looked what if we need to take a page from the stock sage's cheechan chong and chill out, man maybe it's time we took the pressure off ourselves, whether we're stressing about the president's speech, federal reserve or brexit or any other irritant de jure step back for a moment, please, and recognize there's not that much happening in honor of my 45th anniversary coming up, he said jim don't sweat the program. needless to say, i had a lot of trouble taking that advice while

i was away but i'm thinking about it now because i just took a rare break from the markets staying with my family at our place in tuscany it's got zero reception for anything it's the only way to pry me away from the p.c., the phone, whatever and i got to say it was really an enlightening experience in the time between when i left and came back, it rallied 2%, not a lot, not a little. while we got some nice lift today, the averages are still off their highs from early summer i didn't check my email while i was away either. that's another rarity. the only place with consistent perception was my daughter's room she's tougher on me than my wife is i waited and spent all day yesterday going through maybe a thousand emails. what earth shaking developments did i miss well, most were concentrated in a couple days last week. first we got the three broad quarters, dollar tree, dollar general, three trade down plays.

look, i knew what was going to happen because i read matt boss. then ulta beauty, a preemptive obituary what can i say we saw a fabulous run in the semiconductor and the semiconductor equipment names. they reported weaker quarters and also trying to get ahead of the potential bottom there was the usual relentless decline in interest rates. everyone talks about this like it means we're headed for an inevitable recession weak buying yields a sign investors have no confidence in the future normally when rates plummet the economy is the culprit the economy is an ironclad alibi. it was the european central bank in the bill yard room with central rates. of course, money is flowing from overseas into our bond market pushing down yields. it's actually arithmetic, people good thing there is an easy

solution fed needs to cut rates more aggressively than they'd like and then we're golden, stop worrying the new trade war and the tariffs, we've been over this repeatedly think watch can force suppliers to eat the cost and everybody else well, they have to, you know, everybody else benefits. look, the retail market is really doing quite well. you know what? the problems are really in the mall, not in the stores. last week the president told us china wanted to negotiate, then china said the president was lying, and most of the media agreed with the chinese against the president. i think it was a stupid thing to worry about it who cares who made the call. all that matters was they got the ball rolling and that's what we saw in today's trade news in other words, what did i miss while i was on vacation? not much don't sweat the program. look, i know there are momentous

markets, momentous moments in the market there are momentous moments. it could be right around the corner but this moment is not one of them every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information.

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last night a stocky own for my charitable trust, you can follow along at acti action alerts.com. the number looked good there was a projection that didn't look so good. so the stock fell from 200 to 180. and then the one on with me and david on "squawk on the street" this morning started telling a fantastic story. you know what happened from 180? the stock then gained 35 straight points. what's the lesson? it's stop trading after hours. please i always like to say there's a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer 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." ♪ i'm dallas robinson... and i'm mike buonomo... (both) and we're from salt lake city, utah. we first met in college, and we just kinda clicked. some ideas just percolate up. we've created something that creates a chemistry between two people that's absolutely amazing. yeah? yeah, i think that's right. we grew up with a very strong moral background, and we always walk, uh... (chuckles)