the future nike here. >> guy adami >> way to go, lucy and your classmates and lockheed martin take a look at that one, melissa. >> i will. thanks for watching "fast money," everybody. 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 other people want to make friends. i'm just trying to make you some money. my job is not just to entertain you, but to educate, teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer the stock market is is supposed to be a forecasting machine what the economy will look like in six months. as an investor you have to

anticipate what will work in that time frame and what won't but after another shocking day, particularly for the sell in may and go away crowd, where the recovery stocks roared, the dow gaining 533 points, nasdaq advancing 7.7%, the market does not lend itself to that easy divining right now the future is too binary the market feels much more like a horse race where there can be only one winner in a very crowded field of contenders. but it's a long race and we're still far from the homestretch so it could go either way. who is running in this race? the first group is the subset of the cramer covid index the storks that enable the stay-at-home economy think everything from zoom, video, papa john's, dominos. papa john's 33% sales, that's good news for that horse second group, the recession-proof stocks, mainly the food and consumer package

goods plays especially ones that make hygiene supplies. during the lockdown, worries about covid, hey, but covid may be waning, lockdown is ending. third, you have the industrials. they manufacture everything from chemicals to paper boxes to steel to airplanes they went to scratch for weeks and now they're back on track. how about the 737-max. they restarted that lineup at boeing fourth there's the beaten down nag the cohort including the airlines, all things tourism many thought these needed to be put down because of the pandemic turns out they're not even lame. fifth horse the drug stocks. especially the ones work on a cure or vaccine for covid-19 they're lathered, they're ready. sixth, retail, restaurants maiden claimers. 7th is tech. the cyber securities they're stalwarts. the 8th horse, home improvement.

didn't know it would make it into this derby. 9th, the financials, especially the banks. didn't know they could still run until yesterday. and again today, i thought they had pulled up lame finally there's 10th, there's fang facebook, amazon, apple, netflix, alphabet. high tech companies because they're in the same ets. first place finishers, triple crown's all. what's incredible is that this is a long race, people it's longer even than the belmont stakes so long it's a multi-quarter affair there can only be one winner that pays big, but there are place and show stocks that are going to give you a good return. remember, i say the stocks predict six months out in the future this is a gigantic number of furloughs. get to the far turn let alone the homestretch. sure, you can make a field bet on every horse, that's called the s&p 500. you want to capture returns from good and bad horses. all groups traded up today i'm talking about a winner take all race the s&p simply won't make as much money as picking the win,

place and show of this group picking winners is hard. there are horses that are in the lead right now, but they could finish dead last when this race is over. right after that, first, who is in the lead? at the moment, believe it or not, industrials in first. bank second, retail third. technology coming in hard fifth. helped by premidday announcement by micron. toll brothers. that makes sense because this track belongs to all the companies that thrive in a low interest rate environment where the future looks better than the past because we're opening america. we heard from industrials things aren't as dire just a few weeks ago, as for the banks jpmorgan's jamie diamond came out yesterday, it was an amazing speech he said we could be in for a quick recovery, something that would have seemed borderline impossible if not loony tune when you hear about beaches are packed it makes sense these

stocks would catch fire. doug parker from american airlines said the worst is over. same this afternoon. no wonder we learned boeing is starting up the max lines. the cruise lines, unsinkable numbers, numbers that wouldn't exist if the fed hadn't backed with credit. this is complicated. most of the companies have been shutdown since march when covid-19 turned into a's genuine pandemic macy's, nordstrom, kohl's shined again today. why not? they're allowed to be open tech, it isn't going anywhere until micron announced midday. investment oriented tech stocks. we will speak to the c.e.o. in a few moments about why that number was so strong finally, housing is soaring because interest rates are low and people who live in cities are eager to flee to the suburbs in response to the virus this is actually got a name. it's called the counter urban trade. housing is moving away from the pack with these numbers. again, toll brothers after the close. what makes this race so hard to

figure out is the stay-at-home stocks are very much in the pack, these incredible numbers from dominos, papa john's, recession-proof hanging in there, health care, here's curious. after all the vaccine hubbub, this is a bad group. finally fang is biding its time. maybe it's become a bitter disappointment something wrong? everyone seems to want to know i know how it looks. for the most part the lead horses are recovery plays. they're fueled by a great start. you have to abandon safety, go all in maybe we have a vaccine sooner than expected. fauci is talking about november, december maybe we can reopen safely as long as people wear a mask a lot of people are betting we can go back to normal sooner than expected. the laggards are losing because who needs steady eddy stocks when the economy is blasting off? papa john's dismissed the last good numbers funny thing, though. i'm betting the field will be spread out by the time we get to the homestretch. many of the current winners will fall behind.

why? because right now the bulls are focused on the wrong problem i think they're confused it's one thing to believe we're going to conquer covid and that will allow the economy come roaring back if you open up the economy and things are better but plagued by horrific levels of unemployment that's what you have to focus on it's not enough to wheat the virus, people. economy gets so strong that we beat sky high unemployment neither of these things is a sure thing the triple v horses, that's what i'm calling them, triple v, that's the v-shaped recovery the vaccine vetted, v for victory. might not even show let alone place if unemployment stays in double digits. that's why i'm betting on the stay-at-home tech stocks even though we'll be able to go back to work at the office, it will never be the same now that the companies see how much money they can save with remote work fang thrives in a slow economy a slow economy is more than a rapid recovery this market is ignoring what happens when the bountiful

unemployment checks over the summer bottom line, listen. i wouldn't believe an amazing rebound the recovery stocks will lead us all the way to the finish line. it would make a great cinderella story, but there is only one secretariat, people and i think that's fang. even though the maiden caps, it could be a photo finish. it's on the homestretch. vince in new jersey, vince >> caller: hey, jim. how are you doing? thanks for taking my call and making me money. >> let's go to work. >> caller: jim, i recently picked up some planet fitness. do you see some up side to the stock and could i add to it? >> i was a skeptic, okay and then we had chris rondo on, the c.e.o. and i became a believer. and i think you're going to make

money with that. let's go to ryan in texas. ryan >> caller: booyah, jim, how's it going? >> pretty good day how about you, ryan? when the averages are up people are happy. how can i help >> caller: so, today costco came out with an auto he will program incentive for chevy, allowing a purchase or lease of 2019 vehicles costco reports tomorrow after close. is now a good time to buy or -- >> i'm going to tell you, my charitable trust owns costco i think the world of these guys. went out to see them this is the quarter they instituted -- remember, they are a mask-only place now. there are people who hate that i think it's great, but people hate it. i think the quarter may not be what you think let's wait until thursday. let's go to brian in north carolina brian! >> caller: hey, jim! it's brian from huntersville, north carolina how are you doing? >> doing good. how are you? >> caller: doing good.

jim, a huge fan. i want to thank you. you've done so much for so many. we've been watching for years. >> i appreciate that, thank you very much. >> caller: here's my question. so, the sector recently hit a 52-week low, a huge bounce in the last two weeks you're a fan of the new c.e.o. charlie sharp. is it time to buywells fargo >> charlie would tell me because he's a tough guy, jim, the time to buy was last week when the stock was at in. that's charlie with that dry sense of humor i would say that you have to wait for it to pull back because it just went up four straight points i'd rather bet with charlie than against him. it's daunting because put bank stocks are so bad, but charlie sharp is that good i want to believe we'll have a terrific rebournd and recover stocks will soar i don't care fang will own the homestretch on "mad money" tonight. at&t reported after the close. is it bringing profits

i have the c.e.o then i'm pointing out two stocks that are not as they seem. i'll reveal the names and what it means for your money. and i'm talking to the c.e.o. of workday after earnings that look fabulous 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 madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something heado dmeynbco tmaon.cc.m. i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor,

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now that wall street is going all-in on the prospect of a rapid v-shape recovery, what does it mean for beaten down tech hardware use? h-p, we spent a lot of time talking about tech winners in the stay-at-home economy it's hard to imagine h-p thriving when an office is going out of style a sizeable revenue miss, down 11% year over year they put up a solid set beat off of 44% basis their cash flow came in well below expectations management guidance, i'm calling it light still i think we need a clear picture. let's drill down with the president and c.e.o. of h-p, inc., to get a better read on the quarter and what he sees going forward. welcome back to "mad money." >> hi, jim how are you? >> oh, i'm good, enrique good to see you. >> very good to see you. >> thank you i want to understand this quarter. this one was a little hard for me >> okay. >> the earnings beat

sensational, but some of the lines, including say free cash flow and how you're doing in printers seemed suboptimal to me with this work at home, i would have thought everyone would have to recreate their office work. maybe you can walk me through the quarter and what i'm missing. >> sure. first of all, as you said, i am extremely proud of what we posted we beat earnings by 6 cents which we believe is a very solid result and especially for how the whole company responded to the situation. and by the fact, as you were saying, we have now an opportunity of making this brand even more essential than before. if i talk about the specific result, we saw very strong results, very strong demand on pcs, but we also saw a disruption in supply chain that impacted both pcs and also print. but we talked in our earnings in

february, china opened a few weeks later after chinese new year and this had an impact both in printers and in pcs. so we saw demand for home printers, but we couldn't ship because we had supply chain issues >> oh, i know your inventory went up substantially. for this quarter, are you now set, in better shape than you were when you were kind of caught by china and covid? >> actually, the team has done a fantastic job getting the factories back to work at the beginning of may we were almost at full capacity. and i say almost because given the current environment, there could be always a process from us or some of our suppliers. but we have really addressed the supply chain problems and we have now -- we will be addressing them in q3. >> okay. now, when our show introduced the concept i like for business

subscription, inc., you said that was strong in your relation is there a way to quantify that so i know whether that is going to be something to look forward to since inc used to be a good part of the business >> this was one of the key specific trends we saw in this situation. we saw a very significant increase of the demand for subscriptions. do you remember when we were talking in february, i was sharing we had 6 million subscribers? >> yes >> we surpassed 7 million subscribers late in april, which is 1 million additional in less than a quarter and even more important, we have seen 30% growth year on year on subscribers. and as you know, this is very important for us because this is how we want to drive the business going forward so it's a significant support for the study we have put in place. >> your strategic and financial plan for value creation in response to the xerox bid, we

did talk about doing a lot more buy backs. but i guess because of covid you have to be more conservative on that in terms of how much stock you'll buy back? >> so, first of all, we still think that buying back stocks is good because we think it's under valued what we have shared today is that we are going to stay committed to the principles that we share in the value plan we think we have an opportunity of raising that. we also will be giving back to shareholders 100% of free cash flow and as the situation will get more table, we will become more aggressive in buying shares back, and returning capital to shareholders >> okay, good. now, the strength in notebooks was notable. the dragonfly, is that the concept you have that is a lighter, faster notebook that i know is quicker than anybody else's >> actually the demand for notebooks has been driven across the full portfolio dragonfly has been helping because it's a fantastic product. but we have innovation from

chrome books to elite books to the top of the pcs we have seen strong demand across the board we have also seen strong demand in education, kids learning from home this gives us even more confidence about the future than what we had last time we talked in february. >> one of the great debates we have right now on wall street is whether people are going to continue to stay at home and work at home now, a lot of their new work offices are hp is it your view that after all the money that's been sunk into doing that, that we're not just going to give up those home offices and that a lot of people are going to stay home going forward? >> we think that for some particular jobs, people will still continue working from home and this will be happening in many different industries. and actually we see this as an opportunity. an opportunity for personal

assistant pc accessories, but also an opportunity for print because we have a strong position in office printing and in home printing and we have the ability of connecting both for our customers. a >> okay. now 3-d printing is something i've been -- ever since it was rolled out in 2016, i've been fascinated by it it looks like you had the 3-d printers going overtime for ppe. i think you should talk about that it's a great thing you did from what i can tell, the biggest donator. >> we actually probably are, and we are extremely proud of what we did with 3-d printing this quarter. it was a key milestone for the category we proved the flexibility that this technology has, how important it is to be able to produce locally, and so you know, we produced more than 2 billion parts. when i say parts, let me do justice to it. we produced face shields, respirators, ventilators that went to hospitals to help doctors work in this very difficult situation. >> all right and then last question, from

your experience, if your stock stays here, do you think you're going to have to hear from xerox again? do you think they realize it's not the right time and not the right bet, so to speak >> i think, jim, it doesn't make sense for me to speculate on what others will do. let me tell you what we are doing. we are very focused on execution -- in executing our strategy we are now more confident than ever in our ability to create value for shareholders we think this brand is an essential brand for people this will help us to continue to create value in the future >> all right, great, enrique i'm glad you're safe and sound thank you so much for coming on "mad money." great to see you, sir. >> thank you >> okay, that's enrique, the president and c.e.o. of h-p, inc. "mad money" is back after the break.

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whenever stocks make extreme moves, money managers love to play games called mean version something they learn on trading desks. extreme moves tend to roll back. an average stocks are drawn to really it's a fancy way of saying that a big rally or big decline has gone overboard things are good but not this good things are bad but not this bad. that's a useful flavor for this market let me give you some examples starting with one many investors got too good, take 2 interactive. i followed this video game company for ages and i've been recommending the stock since it traded at $15 years and years ago. it's at $134 now take 2 knows how to make hit games. red dead redemption. it must have been a typo even though knowing millions of people were being forced to stay home, they had nothing to do but

play video games, stalz were stunning the stock spikes to 150, then on the conference call management makes what i thought was an obvious point. this kind of strength probably isn't sustainable. people go back to work, in response, stock makes a sickening pirouette lower. suddenly the so-called smart money is out of take 2 leaving reit maining shareholders frightened what the heck is wrong with this company? the truth is there's nothing wrong. take 2 had a spectacular quarter and pointed out the grand reopening of the economy, people may not play as much bounced 4 points today a run on the up side on the other hand let's talk about the mean reversion equation of southwest air. symbol ouv southwest is easily the best-run airline out there. the past few months that meant they were the best house in a real bad neighborhood. who cares if the company is well run when the planes are grounded southwest was so bad they had to

sell 78 million shares they had to take federal government money, the horror unlike many other groups, the airlines didn't bottom in march, they kept getting hit. southwest traded all the way down to 22 earlier this month. off more than 60% where it peaked in february that's where it stopped. warren buffett had a 10% position then the economy starts reopening and a few more people booked flights still not great, but better than nobody flying. the terrific c.e.o. gary kelly told us on "squawk on the street" it doesn't matter if you're allowed to fly if there is nowhere to go hold it, theme parks open, travel bans lifted, beaches wide open next thing you know southwest stock catches fire, up 12% yesterday. it's down dramatically from the highs. it could have more up side if it keeps getting good news from the economy. you are now up nicely. yeah, it's bad, but not that

bad. stocks like this or the retailers like the macy's of the world, the kohl's, the restaurants, the cruise ships, carnival, royal, norwegian which i like, they keep running until they reach the other end of the spectrum people realize, yeah, it's good, but not that good. dan in maryland. dan. >> caller: jim, i've been staking out bomn is that onion going to make me weep tears of joy? >> i like bloomin. there are mom and pop shops that won't make it in this new environment. you're still going to have social distance. bloomin will make it i'm saying buy, buy, buy let's go to jeff in new york >> caller: hi, jim, this is jim in western new york by the great -- >> good to have you. what's up? >> caller: my son william wants to know about a company he thinks is doing well it was downgraded by citi before

earnings and upgraded after earnings the stock is up 10% after reporting. here's my son. >> caller: hi, mr. cramer. i'm 12 years old i hear monster is doing well you'll need a drink to get through the hot summer days. what do you think of monster >> the kid has horse sense a lot of monster is sold at convenience stores people are driving again, they're going to be buying them at those kinds of stores i think you are dead right i like your call i like mnst. all right. sometimes things just aren't how they seem. case in point, southwest and take two there's much more "mad money" ahead including my exclusive with workday fresh off that strong report. then i'm taking the pulse of the airline industry with air lease and all your calls rapid fire in tonight be's edition of the lightning round. so stay with cramer.

♪ ♪ what do we do with these cloud-based software stocks now that the economy is reopening? workday, a software service company that helps with back office jobs, especially human resources and finance. and the numbers, we have to dig deep here. workday delivered a slight revenue beat coupled with a revenue miss in a topsy-turvy where they're missing a mile, especially whispering there could be a big whiff here just the opposite. much better than fear. let's take a closer look with the straight shooting co-founder and c.e.o. of workday to hear more about the quarter and his company's prospects. welcome back to "mad money." >> jim, great to hear your voice. it's been a long time. >> it's been too long.

there are times when everything seems to go kurfluey in the world and i expect a lot of numbers to be down you hit everything not only that, but i think you also got a couple of deals, one with microsoft and one with salesforce that will just accelerate your -- both earnings and revenue. how were you able to do these kinds of numbers in this environment? >> well, first of all, i just want to say our hearts go out to all the folks affected by covid-19 it's been a really challenging environment. i'm very proud of our team you know, we executed really well in this environment workday's products are mission critical to businesses, essential businesses, all kinds of businesses. they're dependent on us foreclosing their books, for paying their people, for tracking their employees people are doing a lot of work force planning to adjust for the environment, and our team really, really stepped up in this last quarter. >> now, i know -- i'm sorry. >> go ahead.

i was going to say on the two announcements, salesforce announcement is really critical. we want be to work with them mark and i are close friends bringing our companies closer together to make it easier for people to have one view into how they're going to bring people back to work, into the office. >> but also i remember you telling me watch this tom bogan. he's really smart. he's going to stay -- after you bought adaptive. i look at workday. those who know the product, no more toggle back and forth it's one page, right >> it 's one page. tom was really the architect of our partnership with microsoft where microsoft becoming an adaptive planning customer and we're going to move adaptive onto the azure cloud that's also a really great partnership we get to announce today. >> when i saw you on the street in san francisco last, which seems like years ago because it was a beautiful sunny day. aneel really has that human

capital thing down but the financial part that he's been trying to do is stalling out. you can't do those numbers if that's the case. they must both be accelerated. >> we had a very strong quarter for financials you know, everything is -- given the current environment, which is a challenging environment, but we signed up a fortune 50 company, fannie mae, a financials customer. we had many great wins on the planning side. our procurement applications did really well, which really is a part of finance in many cases. our new friends at scout landed lowe's and albert son's really exciting wins for them for companies that are not in the cloud, i think they're struggling to run their systems. either whether it's having -- or lack of agility in the legacy systems. so when the world does get back to normal, i think the cloud companies, salesforce, are going

to continue to thrive and probably see an acceleration in a move to the cloud. >> i know you do a lot of work with universities. i know that they are really struggling so, a struggling university is more likely to order workday in order to save money, or less likely to order workday because they're in disarray? >> i would say specifically for higher ed, i think you take it university by university some of the smaller universities probably not able to take on a bigger project some of the larger universities, well-funded universities, they're still active in the market place >> when i took -- when i look at what you're doing in terms of the actual number -- money you take in, you started out, and i think it's important -- i don't do enough of it, how horrible covid has been for families for things but i also know -- and you can never put a dollar amount on these things but i want to point out you had $79 million in additional expenses for covid which these analysts don't seem to

understand do actually hurt your bottom line. >> just for that quarter you know, i think we were fortunate to get out early in front of covid we shut our offices down early we had insight into what was happening in china and korea and other locations, italy we shut our office down and we thought about our employees. and very early on we decided to give them a two-week bonus basically because everybody is struggling in this environment it might be a significant other has lost a job or parents are struggling or child care, so we just wanted to get ahead of that it was a one-time bonus payment we did in q1 to get ahead, make sure our employees were well taken care of. >> last question, i've been working with mark to learn all about his return to safety, return -- the return back, the reopening. are you part of that because the initiative is extraordinary for companies that are really trying to figure out

how to get back in the world >> that's a big part of the partnership between work.com and workday is to make sure the systems are there. and a collection of c.e.o.s are talking about this topic regularly to make sure we do it in a safe way, make sure that there are real set of standards on how to go back. when you're doing business with other companies, how do you make sure the companies adhere to the same hygiene standards and sanitation standards there's a lot to think through mark has been at the forefront of that. he's fantastic we talk fairly regularly talk more to mark in the last couple weeks than the last couple quarters. really enjoyed that friendship it's great to talk about things to do once we get back into the office >> an incredibly difficult environment in the quarter and best of luck to you, sir >> thank you, jim. good to hear your voice. >> absolutely sane c.e.o. of workday, company i

like a very long time, wday. headlines, they deliver or not deliver. i'm telling you in this environment this is an amazing quarter. stick with cramer. - [narrator] at southern new hampshire university,

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♪ ♪ >> it is time! it's time for the lightning round. rapid fire calls >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> and then the lightning round is over. are you ready, ski daddy let's start with j.c. in virginia j.c. >> caller: hey, jim, how's it going? >> good. what's up? >> caller: my question, given the current climate in china and the u.s., the new bill that passed the senate around last week or so, should i trust baba and their word they're ready to deal with whatever it is -- >> baba the whole way. they have american financial that's why i never liked most of the other stocks that's the one to stick with denise in minnesota. denise >> caller: hey, jim, thanks to you and your staff for staying

on the job and guiding us through this crisis. >> they are good they're good what's going on? >> caller: so, with an updated product line and packed campgrounds and the covid crisis, what do you think of winnebego? >> just heard them on air. i think this is a terrific story. glamping is back by the way, camping world, cwa, is really good okay, let's go -- polaris, ryan had them on this morning. they sounded good. let's go to greg in virginia greg >> caller: philadelphia eagles, jimmy chill. >> what's going on >> caller: i want your opinion on waste management. >> it's come down enough, it's paid its dues. >> buy, buy, buy >> i'm not worried about the recycling trade. let's go to rene in texas. rene >> caller: how are you doing, jimmy? >> i'm doing good, how are you >> caller: doing good, sir just wanted to know your

thoughts on carvana. >> people tell me there's no way they can make money. sure enough, i thought when they were on air they acquitted themselves very well i have to go with the trend here people tell me, jim, you're not being enough, it's good. tom in florida, tom. >> caller: booyah, jim >> booyah. >> caller: my stock is the chinese online k-12 tutoring provider in china. the new york stock exchange symbol is gsx. >> no, chgg. i think you should sell that and be in ching. i don't trust that company one bit. let's go to jared in washington jared. >> caller: love your show, man, watch you every day. >> thank you what's going on? >> caller: so, jim, with earnings coming up and so many companies realizing the benefits of work from home, what are your

thoughts on slack? >> everyone keeps thinking that microsoft is going to wipe out slack. i think that slack -- i like slack all the way down i take a lot of heat for liking it when it got below 20. i like it now. i think it's still a buy >> buy, buy, buy >> good company. how about chris in florida chris. >> caller: jimster >> yo. >> caller: i have citi at 42, now it's up to 52. should i hold on or tap out? >> which one >> caller: citi. >> here's the thing about citi it's expensive, but it's a buy-back stock remember, it's bad for buy back stock. that's what made it so special for me let's go to joe in pennsylvania joe. >> caller: jimmy chill >> yo. >> caller: i wanted to ask you about data center demand, more specifically switch went over a 52-week high this week >> that's a hot stock. it's a hot stock it has many things going for it. i want you to hold onto it let's go to judith in

maryland judith >> caller: hi, jim >> judith. >> caller: how are you >> i'm good, how are you >> caller: i'm good. i'm thinking of my granddaughters 5 and 7, i'm starting to invest for them. i'd like they have to buy a house when they grow up. what do you think of zynga >> it's making a comeback. maybe buy zynga. they actually have games they're getting it together and the gaming industry is very strong despite the fact that people feel once this stay-at-home is over, it won't do well. i think you're okay. person [ buzzer ] let's go to tim in florida tim. >> caller: what's happening, jim? >> not much. >> caller: a company good, glad stone commercial they are offering 10% dividend -- >> don't trust it. don't trust it no we don't buy -- there are a bunch of stocks in the same business we have no idea what they really own. i don't want you to own that

stock. let's go to karen in new york karen. >> caller: hi, jim, thanks for taking my call >> of course >> caller: i'm calling to find out what you think about coty. >> why own a second rate company when you can have procter & gamble down big from its highs having a good quarter. and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade ♪ ♪ ♪ ♪

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♪ another day, another rally in the recovery stocks i keep telling you this market is trying to look past the current recession. with wall street currently betting on a v-shape recovery where everything gets back to normal air travel is likely to stay depressed a long time. might take years to recover to precovid levels. c.e.o. worried about potential bankruptcy among the major airlines yet the airline stocks spent the last couple of days soaring. we need to take the pulse of this industry, the best way to do that is with air lease, one of the largest aircraft leasing companies on earth they own 400 planes and lease them to the airlines in february and march falling

from the mid 40s to 8 bucks at the lows $30 today, the recent quarter was somewhat disappointing where is it going? let's check in with the founder and executive chairman of air lease who is a legend in the industry get a better read on what's happening. welcome back to "mad money." >> hey, jim, it's great to be back >> all right, steve. late breaking news here. we just found out that boeing is restarting the 737-max building in renton, washington. would they do that if they didn't think there was maybe good news coming from the faa or the airlines >> yeah, they're working very closely with the faa, the airlines and the regulators. they restarted production today. i was in seattle yesterday with boeing management. they're making progress on certification activities, working very closely with the regulators and our hope is by the end of the third quarter or early part

of the fourth quarter, the airplane will get certified in the u.s. and then hopefully shortly thereafter in the foreign jurisdictions. and the goal is to get some airplanes delivered before the end of the year. >> i think one of the reasons it's a good day on wall street, people got a little too negative i was reading your financials the other day and it's pretty clear that it's not like every airline is going bankrupt or going out of business. >> that's true i mean, jim, in the last 20 years, the airline business has become the mode of local mass transportation just to give you an example, last year 4.5 billion airline passengers flew on the global airlines that's a big percentage of the population of the earth. not only in terms of passenger traffic, but cargo and small packages and logistics it's really a very important

part of the global economy, the global network of commerce >> and it does seem -- a lot of people must be they're deadbeat airlines i was shocked at how well you handle -- even some say a little forbearance. you make it clear, no, you have to pay and almost every does, correct >> that's true these are very short-term help that we gave primarily march, april, some into may, and a quick pay back obviously the summer season coming with greater scheduling, more frequency of flights, airlines will begin to generate a much higher volume of revenues we believe the recovery will be a little quicker than some of these so-called experts have pronounced >> there is a so-called expert, the guy is a c.e.o. of boeing. i was getting pretty bullish about things then i saw him on the today show

and he made they think, my prediction all the airlines would make it was wrong and one of them was going to go under. does he have a book of business that's as large as yours or maybe he's a neophyte? >> he had a bad day, he had aircraft cancellations, orders from a few airlines, a couple of leasing companies, you now, moved back some of their order positions. dave must have had a bad day and he was a little bit pessimistic. but i was up in seattle yesterday with boeing management, and the mood is much more positive today than it was a week or two ago. >> oh, that's good they should take some stabilizeers there if there is that kind of issue before going on tv. in good times airlines need our aircraft, in bad times they need our balance sheet. tell me if i'm wrong you're a $50 billion aircraft. how many people work at your company? >> 116

>> how is that possible? >> well, we're very efficient. we have wonderful long-term multi-decade relationships with the airlines, with wall street and once the aircraft are leased, then the airline takes delivery it's a triple transaction. they take care of the maintenance, the insurance, the operations we sit back and collect the money every month. >> periodically people try to go up against you there is always some guy who tries to crack it, and always somebody who goes under. you have an amazing relationship both with the manufacturers and with the airlines. >> well, in my career, i bought more than 3,000 commercial jets from air bus and boeing and douglas and lockheed, all these companies. some are not even around today so we have a tremendous amount of experience. our team is seasoned most of our executives have been doing this 20 years. we built solid long-term

relationships with the manufacturers, with the supply chain, with wall street. i think that makes a difference. in tough times, the airlines congregate to a reliable partner like air lease >> i find the other -- this is not like a car buy versus a car lease. i don't really understand, why would anyone buy a plane if they could lease it >> well, particularly now with airlines' balance sheets, it's easier to release an airplane. a $50 million airplane, normally if an airline buys it, they have to put up as much as payments before taking delivery we take cash deposits, the first months' advance, and it's a much easier way for an airline to get a modern brand-new airplane. >> last thing i wanted to touch on

your optimism -- you're a hard nose business person your optimism isn't based on, hey, i think the world is going to get better. you must be looking at specific things that the order books need to be fulfilled. the planes need to be bought because traffic is coming back >> well, absolutely. traffic is coming back and we expect the recovery to be regionally distributed we see asia is recovering fairly quickly. so things are going in the right direction. >> you know, i'm glad i spoke with you the executives -- sometimes i get the executives who are too downbeat it is a pleasure to have you back you know more than everybody phil lebeau with me be sure that i knew that, but i kind of knew air lease and you are legendary. i want to thank you.

the executive chairman of air lease. thank you, sir great to see you >> thanks, jim take care. good luck to you >> thank you, you, too "mad money" is back after the break.

♪ tonight on "markets in turmoil," what the nation's recruiters are telling us about when hiring might pick up. plus the commissioner and his plan to get his lead back on the ice, and the challenges facing local business owners and how they're dealing with the uncertainty. all that is coming up next with

scott wapner okay, workday may be the most important quarter that we've seen other than toll brothers in the after hours. toll brothers will move all the housing stocks, but i think the cloud kings could have a very good day do not forget, salesforce reports tomorrow so it could be a nice bridge i think the cloud kings are back and just because they had a couple days off doesn't mean they're finished, okay workday, excellent quarter i like to say there's always 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!

"markets in tull mi-- turmoil." good evening, i'm scott wapner, day 150 of the coronavirus crisis the death toll tops 100,000. but tonight there is optimism for the future of jobs in america. >> announcer: tonight, new signs of a comeback. >> it's another step in the return to some degree of normalcy. >> announcer: from the world of sports to the great american job market, plus disney makes its pitch. it's ready to open the magic kingdom. >> we'll slowly but surely make