but the lyrics it's like jace. >> tony a regular watcher of the show. >> he is the one. >> gdx held one and a half a couple of zbliems "mad money" with jim cramer starts right now. starts right now ♪ my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica my job is to educate, teach, put it in context. call me at 1-800-743-cnbc or tweet me @jim cramer why is it just so darn hard in this market to make money?

after a rough day where the dow tumbled 314 points, s&p plunged 1.56%, and the nasdaq plummeted 1.67%, i think the problem's simple a list of stocks that are working seems to grow smaller by the day. isn't that what it feels like? we have fewer stocks that are safe to own and more that are down right toxic as we saw near the end of the day when the bears crushed the bulls toward anti-china fueled trading. today felt like a vicious pro football game where the quarterback was under pressure all day and succumbed in the fourth quarter in football, a quarterback tries to do a check down, looking to receivers for the best opportunities down field sometimes the wide receivers are wide open. sometimes the qb has to thread the needle to hit a receiver, a slant pattern. other times, times like today, the bears are swarming, and it's like a jailbreak as they head

toward the quarterback if he doesn't get rid of the ball in time, he's likely to be sacked, perhaps for a big loss or a fumble or even an interception that could rulesul in a touchdown we used to have the receivers wild open wide open in this market sometimes it feels like there's no one left to throw the ball to, and you're going to have to throw the ball away or perhaps just absorb the hit. today the bears went helmet to helmet and the investors got concussed into the close, not reassuring could be out for many weeks. maybe come back soon i don't know there's a protocol what does that look like in stock market terms for today's trading? okay last night right on the eve of the big trade talks with china, what we got, yeah, some hopeful comments from the president, just like you'd expect aren't you used to that? this time we got an interview where trump said lots of positive things about what might happen if the negotiations go well for a moment it looked like we

were going to get the green light to buy some company's major china exposure i saw receivers that were wide open for a moment it looked like you might be able to hit the best wide receiver, get a td. then completely out of nowhere, the commerce department steps in with a list of 28 chinese enterprises that it doesn't want american companies doing business with. according to wilbur ross, the commerce secretary, these companies are complicit in the brutal suppression of minorities in china hmm, the white house slapped visa bans on the chinese officials who were responsible for orchestrating the same human rights abuses. it's hard to argue with that, but the timing couldn't have been worse, especially when it was right when fed chief powell was doing what he wanted him to do the offensive line broke down, and the qb, you the investor was gang tackled, unless you listened to us when we said the

talks would not go well and you shouldn't hold your breath waiting for a deal while these particular chinese companies are not that well-known, the analysts were quick to suggest this news could hurt the likes of intel and nvidia we know the trump administration is eager to limit china's access to facial recognition technology that helps the communist party identify enemies of the state. unfortunately, the company that's identified with that technology is none other than nvidia nvidia's stock have been climbing relentlessly thanks to strong demand for its graphics and data center chips. there is a widespread belief that the chinese regulators might finally give the thumbs up for it to buy medical lanox. suddenly that seems less likely. if you threw the ball to nvidia, you got picked off that's just the tip of the iceberg. the other day the general manager of the nba houston rockets, he got hit by like a

under the bo -- bout of conscious. he tweeted his support for the protesters in hong kong. the problem, american basketball is huge in china they love the rockets, but the chinese government hates any sort of criticism, let alone support for its enemies. the reaction was swift it's not a democracy the reaction was swift, even though many team owners sided with the people's republic for business reasons craven, the nba commissioner adam silver expressed his support for free speech. there's no way that made beijing happy. a admissioncommissioner coming saying things like jefferson and washington believed in is there really room for that in a society that -- they're more likely to start boycotting our biggest brands, maybe they go after nike or starbucks or apple. these stocks have been very

attractive if boycotts are on the table they got a lot less enticing they're too dangerous to throw to it's not just the trade war. let's say you decided to stay domestic to protect yourself, especially since fed chairman powell says he favors additional types of easing. normally that would cut towards the retailers, right however, if the trade talks are going to be stalled by this latest move from commerce, that means we're almost certainly getting the previously scheduled bump up in tariffs in a week it's hard to imagine anyone wanting to buy a retail stock in the face of higher tariffs unless it's to offset the damage target, walmart, costco. costco is barely down. as for everyone else they don't have the scale to strong arm their suppliers into eating the cost of those new import duties. bad news health care? you'd think it'd be immune to china. the strongest part of the health care cohort has been the medical device makers. this morning we got a shocking negative announcement from qiagen a diagnostic company that tends

to be liable these medical device makers weren't supposed to have any economic sensitivity maybe that's not true anymore. as for the drug stocks and the hmos they are immune to the gyrations, but it doesn't matter right now. these companies are smack in the cross hairs of none other than democratic leader senator elizabeth warren what about tech companies with zero china exposure? she wants to break up big tech, so the stocks get hammered whenever she makes a stump speech i think people overreact to this stuff. something like alphabet with his its search, waymo, youtube, what might be worth even more if we're broken up. market disagrees with me well covered receivers how about potential bargains the railroads have been down relentlessly, wait a second, they may not bounce back at all. i mean, that's a seemingly endless strike at gm autos are a major cargo for

rails. that cargo is going to be lousy this quarter what else? banks on the -- unless you know something about that boeing 737 max woes that i don't know, there's a lot of totally well covered receivers. frankly, it doesn't leave too many stocks that are safe to own at the moment. you can take a shot at homebuilders kind of a hail mary play you can buy consumer package goods, it's doing okay however, over the last 24 hours the trade tensions have ratcheted up so much that you've got to wonder if they'll even bother to hold the talks tomorrow if you're the quarterback, what do you do? i think you try to protect the football right now don't do anything outrageous, don't try anything fancy wait for a better moment when it no longer feels like china's in the balance or next week's upcoming tariff hikes have been baked into the average i don't think we're there. i can't fault the commerce department for cracking down on chinese companies that enable horrific human rights violations, but they did kind of pick a worst possible time to do

it, right before the big trade talks. i think you need to be careful as this market readjusts and recalibrates its expectations. you don't want to throw a pick six interception, and you don't want to be sacked for a loss, deep in your own territory let's go to steve in texas, steve. >> caller: hey, jim. how are you? >> i am good, steve. how about you? >> caller: unbooyah leavable. >> i've only been washing you since the late fisher payne ordained you reverend, and i want to thank you for going a positive influence or investors, especially young investors. >> that's what i want to do, i love that. we're going to have tough times but we're going to get through them together. >> reporter: -- blaui took up a small position a month ago, and at that time the price targets were averaging in the low 70s, then they suddenly jumped up into the mid-80s, and even

though they've eased a bit as of late, are you a believer >> i am a believer speculative stocks have been taken to the wood shop here. i think this is attractive we've got to leave a little room you know, clearly this market hates speculation and tandem is a speculative stock. real estate investment trust and utilities k. the market is readjusting its expectations so you need to tread carefully and protect the football on "mad money" tonight, domino's just delivered something its investors aren't used to digesting, an earnings miss. the stock took a hit early in the morning, but then it rallied. is it a buying opportunity i've got the ceo, just wondering what your next move should be? i'm going off the charts to find out what's next for this market and could the breakup of another unbelievable industrial icon be come somethiing? i'm talking to the ceo of emerson electric to find out options for the 129-year-old

company with a fabulous dividend record 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 at cnbc.com or give us a call 1-800-743-cnbc. miss something head to madmoney.cnbc.com. devices are like doorways

that could allow hackers into your home. and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today.

did you see the action in the stock at domino's pizza today? over the past year this company has reported a series of not as good as we would have hoped for quarters and people have disappointed in them and the stock's been pulverized. thanks to the proliferation of the delivery food platforms, domino's facing more competition than every today something different happened, domino's reports a seemingly difficult quarter. the stock ends up roaring higher, glad i told you to buy it when i was at "squawk on the street" this morning they deliver a $0.02 earnings

miss with slightly weaker than expected revenue up 4.4% year-over-year sales numbers foreign and domestic were lower than anticipated. management cut their long-term outlook. over the next two to three years domi domino's is looking for 78 to 10 -- trimmed guidance by 1%, international guidance by 2% the stock caught fire. why? because what i said would happen finally has happened they've reset expectations, and the numbers were better than feared looks like the kind of big washout you get when a stock finally bomtttoms when you get that reset the ceo of domino's pizza had a better sense of the quarter. welcome back to "mad money." >> good to be with you again i was down right excited when i read your earnings call because of one thing it is very clear that you think the days are numbered where the venture capitalists will continue to be able to support

the other guys in delivery they're going to run out of money. do i read it right >> well, you know, jim, we do think there's some irrational pricing out there in the marketplace right now funded by venture capital. we don't know how long that will last, but as we look out over the next two to three years, you know, at the revised guidance that we've given, we've got a terrific business model. you know, this domino's pizza business model can deliver terrific revenue and earnings growth over that window of time. >> i was -- your free cash flow is magnificent, even with the so-called revised down numbers, the free cash flow is hanging in there pretty well, isn't it? >> yeah, jim, this is a terrific cash flow model. we generate over a million dollars in free cash flow a day, and we also shared on our call earlier today that we've tightened up a bit around g&a and also on capex as well which is going to give an opportunity for more free cash flow to fall

to the bottom line and ultimately as you know we're pretty thoughtful about returning that to our shareholders over time. >> it seems like despite the fact these other guys do have these delivery systems, if you have 6% growth, that means you are gaining share against the other companies? >> no doubt. 6% retail sales growth in the u.s. is significantly faster than the growth of the pizza segment and faster than the growth of the restaurant category overall international business when you normalize for currency up 9.1% retail sales growth, also significantly faster than the category jim, we're gaining share, you know, in the u.s. and across the globe. >> a lot of companies i deal with are retrenching got away from china you just added 20 new stores in china. you've got a lot of room to grow why now? >> it's a great time for us in china right now, jim we've spent a good bit of the last ten years refining our business model there we have a terrific master

franchise partner. the four wall economics are terrific, and so we're putting our foot on the accelerator to get more stores open. >> you used the term throughout the transcript of the fortress dominos. now, we're familiar with fortress when it comes to jpmorgan what's fortress domino >> so fortress for us is getting our stores closer and closer to our customers, and that really helps us for both businesses that we run, both the carryout business and the delivery business for carryout, the number one criteria for our customers is being close to the store they don't want to take a lot of their time out of their day to go pick their food up. the more stores we build, the more incrementalty we get there, and then on delivery, you know, the two key elements of making that business model work are number one, you know, getting to the customer fast because that drives repeat purchase, but two, the closer we are to the customer, the lower the cost is per delivery because our drivers can deliver more orders per hour so it really -- it is a cycle

that just gets better and better and better the closer we get to those customers. >> you have 85 million customers, 23 million loyalty people now, and i see your ad campaign for insurance you know why i've been one of your 83 million, i've been consistent it has never come anything other than piping hot. why do i need this insurance guarantee? have people been complaining >> no, jim, you know when we look at the market out there today and we talk to customers and do our research, you know, one of the things that they talk about is that they can really ruin an experience if that product shows up too late or if it's not hot, and we have franchisees that dedicate their lives to making sure customers get great experiences. so we featured a couple of those wonderful franchisees in our commercial, and we decided to make it much easier for customers to let us know if we got something wrong because when you deliver millions of pizzas, as good as we are we're going to get a few wrong, and when we do,

we want to make it right for those customers. >> last thing, something that bothered me in your call you talked and teased about menu innovation, but you gave us not even a bigger than a bread box is there something that we are going to love that is in your pipe >> well, i was just back in the test kitchen again on friday tasting some fantastic product, and you know, jim, we don't launch any ltos. we don't play that game in the business, so we're really thoughtful about making sure that the products that we put out there have staying power, but we've got a lot of great things in the pipeline, and i'm excited that we'll be able to bring some of those out to you and our other customers in 2020. >> i've got to tell you, i am very antithe ipo market. i think you're dead right, there may not be the pot of gold at the end of the rainbow for some of these delivery companies. i think they run out of money before they come public. that is great for you. you're doing great, rich allison of dominos >> thanks, jim. >> this is what it looks like when a stock has bottom.

we've got a lousy market i don't have to tell you that, because you see it yourself. when a stock goes up, on down numbers, what happens when the numbers turn out to be great "mad money"'s back after the break. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view

is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information.

high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine. wow, after a hideous day we need to take a step back, try and assess things objectively which is very hard to do when you get this kind of emotional selloff. you don't want emotions to dictate what you're going to do. that's why tonight we're going off the charts with the help of rob marino he happens to be my colleague at realmoney.com where i blog, as well as being the publisher, rightviewtrading.com get a better read on this market this guy's got a perfect track record his chart work allowed him to call the bottom last december, how great was that, and he

predicted that stocks had much more room to run right in february when the s&p was already up 16% from its lows a lot of people argued maybe it'd run out of steam. he nailed it when marino predicted more upside eight months ago, he also gave us warnings i want you to take a look at this monthly chart of the nasdaq this is a log rhythmic chart where each tip represents 1%, rather than 1 point. tacticians like them because they'rebetter at defining tren lines. in february marino argued we were facing a consolidated period, not unlike what happened in 2011 and 2015 where the averages trade sideways in a fairly wide range. in both cases the nasdaq traded in a 21% range each of those periods lasted for 15 months. back in february that meant we still had more room to run before the nasdaq hit the ceiling because the consolidation period going on for seven months we had eight more months to go before he expected the pattern

to end, which brings us to right now. well, the nasdaq has made new all-time highs during this period we're now hitting that 15-month mark we're supposed to be worried about. now he expects not a breakup, but a breakdown. that's right this is a top call, perfect on a day like today not just for the nasdaq, for the dow and for the entire s&p 500 so listen up especially if you saw the action today and you're concerned, what makes marino so pessimistic, check out the s&p 500's weekly chart. we're going to go over it. the s&p started making a pattern of higher highs and higher lows. we love that, right? that's typically the kind of thing that is great to see so it was bad news when that pattern got disrupted last month when the s&p started making a lower high, okay so this is when we all started to get in trouble. this reflects a complete loss of momentum sure enough, it also coincides

with a pull back in the slow oscillator, the tool that tells you when securities have gotten overbroad or over sold that's the ssto. there's also the bandwidth, bulger bandwidth which measures the s&p's volatility you normally see them as two lines that represent the stock's standard deviations over the last 20 periods. the bollinger bandwidth shows you the percentage different basically this is a measure of volatility that's a problem for marino. volatile till tends to be cyclical and expands and contracts and expands again. right now the s&p's bollinger bands have contracted to where they were a year ago right before the horrific market wide breakdown. the weekly chart isn't too ugly, but it's standing on a precipice, and we were talking about right here, okay, this is a precipice. in other words, marino thinks that setup has the potential to

result not just in a decline, but a sharp decline. how sharp? why don't we zoom in on the s&p 500's daily chart so you get a real sense of how we're kind of in a danger zone here. when you look at the daily, you can see that the s&p has formed kind of horizontal channel pattern over the the last three months we've got a firm ceiling of resistance, s&p's new high over the summer, a little over 3,000. marino thinks the highs in july and august may mark. yes, this is what you really don't want to see, that is called a double top. it means we peaked at the same time, though, we've got a powerful floor of support at around 2825, hope, right? that's where the s&p repeatedly bottomed when it sold off in august no sooner or later the s&p's going to break out of this box, either to the upside or the downside. he's betting that it's going to be the downside that's more likely now, marino believes the s&p is

going to test the floor of support. only this time the floor is the 2825, okay, but if it fails and he thinks it will, another floor at 2725. that's for the s&p bottom in june got me so far? he's thinking it could go down to where it was in march and june all right, garden variety selloff, wait a second he doesn't see that trading floor. that floor won't hold either if the s&p breaks down from the current consolidation pattern, we could have not a little but a lot more downside. we look at the trading range the index has been stuck in. then subtract that range from the floor support, that is what tacticians call a measured move, you end up with 2,600, and it's been a while since we've been there, huh remember that period wow. okay sure enough, the 2,600 level happens to be the intersection with the s&p's long-term trend line from the monthly chart almost exactly what we would do is we wouldn't

go back to where we were in december we would certainly give up a lot of what we gained, right i found this very worrisome and it's pretty grim basically predicting a 10% decline from these levels. what makes him so bearish? for startersconvergence. it's a tool that helps detect changes in the securities trajectory before they happen. the mac d recently made what is known as a bearish crossover we've seen so many bullish ones. this is a bearish one. that's where the black line chops the red one. it's a pretty reliable negative, too. see that right there okay, that's very bad. plus, it's below the center line here's the center line that reflects the s&p 500's on going loss of momentum another sign of reversal let's go back tomark jenkins this is the oscillator, a momentum gauge developed by the great mark changen from

philadelphia his oscillators are driven above the accumulation distribution line which means it measures money flow, think supply and demand are investors eager to buy the s&p 500 or are they desperate to sell or are the two sides roughly even with the buyers and sellers bouncing about given it's dropping below the center line, i guess i don't have to tell you what that means. yeah, negative money flow. put it all together, marino believes we're really cruising for a bruising here. he's hoping the s&p 500 can find a floor at the 2,600 level don't you hate that hope, right? that's still a long way from a retest of last december's lows, but it's pretty horrible if the floor at 2,600 fails, then -- i don't even know. he did say when we talked to him, that if this fails, we could revisit this level i mean, i'm sorry to be such a negativist, it's not me. it's marino. on twitter people often say

that's jim's chart it's not mine. it's marino's. i know it's not what you wanted to hear today on an ugly day when a technician with -- tells us to be aware of a 10% decline, you better believe we take him seriously. it pays to be aware of what the people who have been right are saying, doesn't it bottom line. back in february the charts as interpreted by rob marino told us the s&p 500 had more room to run, about 200 points more it was closer to 300 then the market did what marino predicted, it peaked and spent months bouncing back and forth those same charts we're approaching an important moment, and he's predicting a major selloff from these levels, a 10% decline in the s&p do i agree marino's views echo my own for vast swaths of the markets for certain. as someone who likes individual stocks, i'm looking for the chance to buy best of breed names at bargain basement prices look, when a guy calls it here and he calls it here who am i to

say that he's not going to call it right there let's go to steve in new hampshire, please. ste steve. >> caller: jim, like you i'm from brooklyn, queens and jersey, so triple booyah to you. >> holy cow, man, we are just kindred. i really feel it i'm really feeling it now, steve. what's up? >> caller: thank you, please, as you've taught me to do my homework getting ready for corrections, if i have my premade list of about a half a dozen growth stocks, small, mid, and large cap, and about a half a dozen value stocks small, mid and large, what would i go with when there is a broad major correction the growth, the value or a combination of all and at approximately what percentage in number would i do that in as a correction when the market's down 5%, 6%, what would you recommend? >> the most important thing is do you like the companies, not

the size of the companies. way too many people got caught up in the mum bow jumbo of the ru russell 2000 or the s&p or the dow. i need you to like the companies and buy the stocks of those companies on the way down regardless of the size let's not get caught up in the terminology. let's get -- become students of the companies themselves, and i agree that the market is going down, but i do think that as i said at the top, there's some things to buy but they're few and far between. tonight's chart is pessimistic i hope he's wrong, but hope should never be part of the equation much more "mad money" ahead. it seems as if breaking up is quite easy to do, at least for wall street, and the industrial sector seems particularly eager to break up. tonight i'm sitting down with the ceo of emerson electric, a formidable ceo who understands business and has been around for

a long time to figure off something to spin or something to keep whole. i'll tell you which companies could be worth buy in on certain markets. rapid fire in tonight's edition of the lightning round stay with cramer f through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

filmgate is growing really staffing a small bquickly and... is challenging. ...i needed to fill a production coordinator role. i was looking for someone with specific skills. so i posted a job on linkedin. maribel had all the skills i was looking for... and looking at her profile... . ...i saw shared connections. that was a plus. but the most important thing... ...is the ability to connect to people and she had it. and i knew... ...she was the one. post a job today at linkedin.com/grow

here's a conundrum, what do you do when a fabulous company is out of style on the wall street fashion show picks up a positive catalyst. look at emerson electric, maybe one of the best we have in it this country it's a manufacturer's manufacturer exactly the kind of stock you do have to expect will get hurt during a global slowdown d.e. shaw, a major hedge fund has taken a position on emerson. they may be pushing for big changes possibly including a breakup. i think emerson is well run. this tends to light a fire under even the best executives last week management announced a comprehensive review of the company's operational capital allocation to enhance shareholder value. that's a quote as emerson will tell you they expect a challenging geopolitical and economic landscape over the next couple of years ouch how do we weigh de shaw's activist intervention against a

slowdown earnings swoon no matter what. david farr is the chairman and ceo of emerson electric. he had a better read on how the company's doing and what's going on with this activist challenge. welcome back to "mad money." >> thank you. >> good to see you david. >> good to see you again, jim, thank you very much for having me. >> this has got to be for you and a couple of real industrialists in this country, got to be one of the hardest times. it seems like if it weren't for governments you would be hitting it out of the park. >> emerson is performing well right now. we just finished our fiscal year, we're going to grow sales 5.5%, our ebit margin is going to be up cash flow is going to be up. we paid back $2 billion to the shareholder. clearly the market dynamics are very difficult, and last june or this june i talked to the board about some major restructuring because what i saw as a slowdown in the cycle, which is a little premature between dhoochina,ss united states, a very weak europe i told the board like i did in '16 we need to take a hard look

at the company, what are we going to do to generate high returns in a no growth market. >> before this de shaw decision you questioned the makeup of the company, whether the divisions go with each other, but it's been historically a great way to do business. >> yeah, and when we put the company together like we did right now on those two platforms, we did this back in '16. i believe it's the right structure today, however at some point in time as i tell all shareholders i meet with, we take a look at this constantly the company i inherited back in 2000, i've sold off close to 60% of that company. we do actions necessary to create value for our shareholder, position the company for the long-term, but right now we have a very difficult macroeconomic environment as you well know. >> if an outfit, very smart guys come to you, why can't you just say it's not a good time we're doing better than almost every other company. why don't you give us a break. >> i listen to all shareholders, jim. i listen to all shareholders,

short-term, medium term, long-term. this board knows how to react. last week we made the decision to announce so i could go out publicly and start talking to our shareholders i wanted to hear what they said. they made it very clear. you guys know what to do you know how to generate the cash you know how to pay money back to the shareholder we've paid back since i've been ceo, close to $35 billion in cash to our shareholders dividends, we're going to be approaching 63 years of increased dividends per share and we know what to do as a management team. the board knows what to do we'll take a look at all the pieces cost actions to try to grow earnings and create value and a market place i think we're looking at for the next two years, potentially zero low growth environment for a global industrial company like emerson. >> one of the things that you did you were far for versus every other industrial when it came to china. you understood that had to be a huge part of your growth. >> correct. >> it's been a fabulous place for you to do business what do you do when suddenly the president has decided he doesn't want you to do business? >> it's a lot more difficult it's our second largest market

>> the growth. >> it's been very good we've been growing this year. >> tell people how many plants you have, how much exposure. >> i have over 25 facilities in china, ten engineering facilities in china. it's our second largest market we grew this year this china we'll continue to grow the products that we sell the industry, they need it the big issue for us is the trade war between the u.s. and china. no leadership in europe right now. no growth going on in europe my decision is, okay, as i told the board back in june, we're looking at no growth we've got to look at how do we drive profitability, how do we drive cash flow? our shareholders expect us to perform both in profit, returns, and cash, and turn that back to the shareholder. >> there's a note here from deutsche bank on the 27th. it says ceo david farr has publicly admitted that there are no real synergies between automation solutions and commercial residence solutions and it probably makes sense to split the two. timing needs to be considered. farr has announced he plans to retire in 2021

he's given an upcoming ceo transition the new guy should do it is it worth waiting? >> i'm a ceo in action as you well know. from my perspective the pieces do fit well together there's always timing relative to when you create value in these pieces as we just sold off three years ago, we sold a third of the company off. from my perspective, we see value in these pieces. at some point in time everything sort of matures in valuation you then make that decision and take that, sell that business off, and then invest in something else the last cycle i grot to buy th pentair business we have a lot of room to fix that business right now as i do, as i look forward the next couple of years, i see a lot of restructuring opportunity in a no growth environment where we could drive margins back up to peak levels of performance, drive strong cash flow and invest that money for growth and maintain the franchises. >> if we get a trade deal, i don't want that emerson. i want this emerson. >> exactly right and if we do get a trade deal

we'll be ready we can flip back and forth from my perspective right now, we're dealing in an environment where it's a tough environment you need to get your costs in line you need to take the actions you can comie off that and grow. 2002, 2003, you used to follow us. >> yes, i remember mr. knight, are you kidding me we made that huge investment in china. with he huge growth rate out of that we grew 7, 8, 9% for four straight years we leveraged the heck out of the company. i look at this to set that cost platform, to look at all the assets when i turn the company back over to the next generation in two years they'll have a good run. and just like chuck did for me in 2000. that's from my perspective. >> i'm always looking for the great industrial was ge, and suddenly e see all these problems, including pension problems you have a great balance sheet you are the industrial immaterial to tell people to buy, but now i'm nervous that even you see slow growth, and while the pension's good, the

balance sheet's good, maybe i should hold off? >> from my standpoint, i'm a big believer in industrial assets and you have to buy them because we are a cyclical business you have to keep that balance sheet very strong from the standpoint, you don't want to overleverage your balance sheet. we want the unique opportunity to pick up assets. from my perspective i see in 12 months there r going to be assets in the marketplace. leverage that investments from that standpoint. in the meantime we're going to operate in a different market. >> shaw, they're talking about levering up, that's not the right answer. >> that's the wrong answer for a company like emerson someone told ge to lever up. i think there was an activist involved in that, bought a bunch of stock baa and did not invest in the franchises. you have to invest in the franchises buying back 7 or $8 billion of stock is the wrong thing to do in a company like emerson right now. we can do different capital allocations. we can invest for the long-term. i like where we sit right now.

we grew this year. i think we're going to have a growth period next year. i'm looking at a different environment where you really need to focus on hard cost structures to make sure you can get that growth and leverage when you come out of it. that's what we've done in the past. >> if you want an industrial stock, and i know most people don't because they're out of favorite now, mr. farr and emerson, great way to go "mad money" is back after the break. but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium.

lightning round is sponsored by td ameritrade >> it is time, bye bye bye, and then the lightning round is over are you ready? we're going to start with bill in new york. >> caller: i'd appreciate your thoughts on roku, down 40% september. >> i don't think it should ever have spiked as high as it did. i think it's regarded as being a play on what i would call the cord cut and that story is getting a little long in the tooth. that's how i feel about it let's go to evan in pennsylvania >> caller: cramer, eagles, booyah. >> very informative. what can i help you with >> caller: gilead, what do you

think? >> i'd rather go to chinos than gill & gee know's is better nelson in new jersey >> caller: big tiger booyah from princeton, university for you jim. i'm here with my friend brad we've got a question about a marijuana stock, hexo corp. >> that is speculative the canopy growth because it's almost like half cash. i'm putting the hex on hexo let's go to martin in new york >> caller: hi jim, booyah. >> oh, man, really >> high speed chip interface i'm going to tell you to buy nvidia on the way down rather than now when i think it's just a better stock and it's worth it to take a shot it's not a shot. i would invest in nvidia john in washington >> caller: yes, sir, tell me wonderful things about kroger. >> i'd rather tell you wonderful

things about costco, which is crushing kroger. ladies and gentlemen, lightning round. >> lightning round is sponsored by td ameritrade take control of your financial future, cramer's exclusive ceo interviews, full episodes, analysis, even your own sound board. plus, special access to "mad money" 101 with rules and techniques to break down the market for all investors. >> the red flag that makes you drop a stock immediately is -- >> it's everything you need right when you need it the new madmoney.cnbc.com. ♪ ♪

♪ ...owning and running the biggesta small business is finding the right people. in hiring our first recruiter, we decided to post a job on linkedin. they had to have worked... ...at a recruiter firm and be bilingual. when we saw ana maria's profile... ...she had a ton of experience in hr. the interview went really well. and she seemed like someone who could really sell mckenzie to perspective employees. we found the best person to find the best person for us.

post a job today at linkedin.com/grow

all dividends are not created equal. at a time when the ten-year treasury pays out 1.5% yield, you might think every dividend stop might be a winner that's not true. in reality this market has gotten very picky about high yielders some dividends are considered a lot more trustworthy than others for example, the non-retail real estate investment trusts and the utilities with high yields have generally been terrific perchlerperchl performers if you look at the data center reits or the logistics reits they've got spectacular gains. even a controversial reit like ventas has a stock up 25%. they have a 4.3% yield, income seeking investors love it, and they should.

same goes for most of the utilities. anything that's name brand has been nothing short of basic, even if there's operating issues like southern company. southern's actually up 40% for the year people can't get enough of that 4% yield even con ed, we had them on last week, a stock that can't seem to catch a break despite its excellent operating performance has rallied 22%. it's run so much that the stock only yields 3 pnts.2%. if you're a utility or a non-retail reit, this market can be very forgiving. but outside of those two trusted sectors, it a's whole different story for high yielders. consider the case of macy's, an iconic retailer that should be able to earn $3 per share with a stock that sells for five times earnings s at these levels macy's has -- macy's has a lot of debt and its business has been struggling that huge yield is viewed as a sign that the dividend may need to be cut. i think that could be wrong. even though the forecast has been slashed the company still

should be able to throw up more than a billion dollars in free cash flow this year, and management is essentially retiring that debt doesn't matter, the yield offers you no protection to speak of from the declining stock now this is a huge oil company with a stock we own, unfortunately all it does is seem to go down. now it does have a bountiful 6.7% yield, and it is more than enough fire power to even raise that dividend. man, if you had told me that bp would ever yield north of 6%, an environment with declining interest rates my trust would never have bought it that dividend is not enticing anybody. the price of crude stock in the 50s because we have too much supply and younger money managements increasingly want nothing to do with the oil industry i thought it would stop at 40 is bounce then there's dow chemical. i thought the stock would bottom when its yield hit 5%. the company has strong cash flow dow's also a cyclical company that makes plastics. a lot of millennials feel like plastics are the new coal.

you aren't sustainable anywhere except they think a landfill now i know the ceos and i know he's trying to change dow chemicals stripes. he's been at the forefront of trying to clean up plastics. no wonder that dividend now yields north of 6.4% no protection. we're seeing something similar from carnival, the huge cruise line last night i got a question about carnival which had a widely panned conference call because the company is adding new capacity at a time when demand for cruises is being scaled back, especially in europe carniv carnival's always had a generous yield. question whether they'd be able to keep paying the dividend with all these major capacity dishes. they assured it will be fine it hasn't helped the stock finally the master limited partnership pipeline companies that transport oil and natural gas. these stocks are just plain

disastrous energy transfers supports a 9% yield. how about mplx, 9.9% yield it is really well run. they blasted through six, seven, eight, nine hot knife through butter if you want an mlb go for cedar fair, an amusement park chain. don't go for oil and gas pipeline you'd be in the house of pain. this market loves high dividends if you've got a consistent business like utilities in the non-retail real estate investments trusts those spectacularly high yields they don't mean a thing. stick with cramer. oach to manag. that for over 85 years has focused on keeping confidence up when markets are down. an approach where portfolio managers work well independently. and even better together. who don't just invest, but are personally invested. can i find a proven approach designed to deliver results? with capital group, i can. talk to your advisor or consultant

for investment risks and information. to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy.

not time to do anything reckless play this one safe and don't give up the ball the inclination here is maybe to take a one that's a big shot i'm saying no. like i said, there's always a bull market somewhere. i promise i'll find it just for you here on "mad money." i am 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." ♪ jared joyce, a serial inventor who's hoping to sell the sharks on one of his many ideas. this is going to be fun. my name is jared joyce. i'm an inventor/entrepreneur, and today, in exchange for $250,000, i'm offering you 25% equity