banks, i would sell some bank of america. >> dan. >> meta. >> and i love exercise pinterest on the arpu. >> thanks for watching "fast." "mad money" with jim cramer 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 other people want to make friends. i'm just trying to help you save money. my job is not just to entertain but to educate, teach and put crazy days like this into some context. so call me at 1-800-743-cnbc or tweet me @jimcramer look, this market is actually starting to remind me of the old days

when i got in the business when companies valued in the tens of billions could report great numbers and see their stock soar rather than being ignored as they have been for the last decade. meanwhile, the big cap tech stocks, those that are worth hundreds of billions of dollars, that have captivated the market and investors for is long, for so many years, are now fading into the background or plummeting back to earth giving sellers the cash they need to buy something better and, yes, more consistent. fund managers are now buying stocks of reasonably valued companies that make things turn a profit and return those profits to shareholders via dividends or buybacks. they've gone to the endodontist and had faang pulled, sadly without novocain, and replaced them with something maybe longer lasting? witness today's action the dow full of those prosaic solid companies that make things do stuff, pay dividends, buy back stock gained 194 points. s&p 500 shed .61%.

but the nasdaq, which has the least exposure to the shareholder-friendly contingent, it tumbled 1.63% as someone who has been uncomfortable since november of last year with the endless amount of stock-based compensation from these tech firms and their often reckless disregard for shareholders' money, you know what i'm kind of delighted by the market's new attitude. for roughly a decade this market was dominated by faang facebook, amazon, netflix and google now we're no longer hostage to this group and honestly it's a huge improvement even as i will tell you my trust still owns some of these because now at this point it sure seems too late to sell the high growth concept stocks work great as long as interest rates stay low and dreams soared high they worked when they could beat the estimates and because numbers would rise we're willing to overlook all sorts of quirks and shenanigans to say nothing of their hubris

why not? their stocks kept winning to the point where they became the puppet masters, the averages were just dolls dancing on the end of their strings well, that is over too now that microsoft and alphabet have stalled while meta platforms, the old facebook flames out in spectacular fashion. amazon reported some dismal results, missing estimates on nearly every line item including amazon web services, their cloud business we were just there seemed pretty good worse they gave a horrible forecast for the next quarter. if anyone was wondering whether the cloud was in its fifth or sixth inning of growth, these results say it may be in the seventh inning stretch let's just hope they're low lowblow lowballing us with their forecast even apple had some issues and is giving a forecast that is noting perfect we'll assess that in a moment. but that one kind of felt like old home week, a virtual family reunion for former brethren. now that the tech titans have

been overthrown, what's replacing them are people throwing up their hands and saying i don't know what to do without my alphabet our new leaders are companies that genuinely regard their shareholders as owners novel. very unlike silicon valley these companies have taken out endless layers of costs over the years and they've still got plenty of organic demand they can wrench profits from. why don't we start with the most counterintuitive, also most obvious winning group so far in the quarter? fossil fuels while the price of crude's down more than 30 bucks from its highs it's also more than doubled over the past couple years. more important the oils have become some of the most value-oriented companies on eating earth they now hate spending money and love sending the cash to you, its shareholders and that's why chevron, exxon, devon energy, pioneer, they offer extraordinary dividends along with often generous buybacks now, of course the antithesis of faang. and by the way, they are valued clients of caterpillar, another winner who we will speak to

later in the show. meanwhile, guess what, the coal stocks okay, you don't want them. i don't even want coal to be winning. you about the coal stocks are booming. why? because so many european environmentalists got their -- shut their nuclear plants. they shut their natural gas plants now there's an energy short paige so what do they have to go back to? the worst of the worst the dirtiest of fuel coal that's why we get these upside surprises from norfolk southern, the railroad that had great things to say about the coal business console, energy, peabody energy, archer resources i haven't looked at these things in years but of they've exploded to the up side i don't want them to but that doesn't matter, does it second leadership group is health care. have you ever had the good fortune to reach medicare edge, i can tell you it's not as good as top notch employer sponsored insurance. that mains need a supplement like the ones provide bid united health group or humana, my provider that's become a semi-pefrmt denizen of the new high list. the dow's having its best month

in ages. think about that dow best month in ages, nasdaq terrible health care also includes the drug stocks some of the best performers out there merck now reminds me of the old saint merck is what we called it in the 1990s when it could do no wrong. this time its strength is its cancer franchise led by keytruda which may go down as one of the best-selling drugs of all time bristol-myers feels implacable again with its cardio and onk logical specialties. johnson & johnson is breaking up but we own it for the trust. pfizer's a covid infused juggernaut and our favorite trust stock eli lilly is best in show with its terrific diabetes franchise and by the way doubles as the world's safest i think but hasn't been approved for full use weight loss drug yeah that's going to be an amazing drug given how obesity is among the biggest killers. drug's a godsend how about the leadership group we don't spend a lot of time pondering the lasting psychological damage from the

pandemic which kept us locked up doing nothing. now that covid's receded everybody's eager to travel again, see the world, catch up with friends, go to weddings and we've got more time to travel thanks to so many businesses embracing a work from home model. and that's why i like united air and delta. it's why i think they got a raw deal the other day that's why i said boeing last night is going to work these are misunderstood worth buying stocks. fourth a huge conventional war going in ukraine you can't fight a war without, yes, weapons that means the strength in lockheed martin, northrop grumman and my favorite l-3 harris every time one of these defensive contractors reports there's skepticism yet the skeptics get their leads handed to them because they don't understand a conventional land war requires a lot more hardware than fighting poor r. poorly armed insurnts in the middle east if the biden administration wants to play for a win, not a tie you've got to own raytheon

fifth leadership group the food and beverage base. remember them? they have been fantastic this season pepsico told us the commodity headwinds will turn into tailwinds next year. and the interim i'm impressed with both coke and pepsi for putting up double-digit growth the best of breed of the group is general mills reported earlier in the quarter was a thing of beauty with real strength in its cereal line and also in blue buffalo pet food. by the way we have unilever later in the show. that's a good one too. and you know i think procter & gamble, one of my favorite stocks in the trust-s going to have a great 2023. of course not everything in tech is untouchable when apple reported at the close their technological prowess delivered -- allowed them to deliver a nice top and bottom line beat, strength even in china. we were constantly told that nobody cared about the iphone 14 yet the new phones are supply constrained all over the world almost every single line item was better than expected we discover that once an iphone buyer always an iphone buyer wall the accouterments and

services that come with it there are -- it makes every other subscription service look pitiful including met flix with 223 million members. plus apple's component costs are coming down makes for better times ahead although nothing would be more beneficial than a weaker dollar something that i think looks like could happen. some will say the iphone was weaker i can get that and by the way remember it was high capacity constrained. some will definitely grumble about service slowdown all right. niggling i think net picking. there could be some relation to china lockdowns. and the cfo of course threw some cold water on next quarter but you know what? that's what they do. you see, they're cautious and they have no hubris. why was apple able to buck the gloom of silicon valley? because unlike the other big tech outfits that are in cyclical decline either from the moribund pc business or the advertising meltdown apple's superior technology attracts new people with each iphone iteration. meanwhile, their management team has a much better understanding of what customers actually want

than many of the others in its former cohort. that's why i always say own apple don't trade it, go ahead trade, it see if you can get in and get back good luck to you the bottom line is that big tech stocks are getting crushed because the underlying companies are struggling the market's finally in fed mandated slowdown mode where what works are the recession-resistant stocks of profitable companies that tend to be pretty generous with their shareholders these are the new leaders for now. and i don't see that changing anytime soon the new leadership group can get us through this. but faang tech, well, right now i prefer a root canal or maybe two or three until they've sorted out the mess in this new world where you have to fire people, you have to have discipline, and you have to lose the hubris entirely. let's go to claire in utah clair. >> caller: yeah, jim-i want to increase my holdings in john deere. is now a good time to do that? >> absolutely. deere's going to have a

remarkable quarter we're in a feed the world moment deere's last quarter people didn't like, they don't know what they're doing this is a secular growth story this is the way tech used to be. and by the way, do they ever have a lot of tech in deere. i think it's terrific. second only to caterpillar, which is on the show later tonight. big tech stocks keep getting crushed. all because the underlying companies are struggling here. it makes sense haif, hey, it can change what works in the recession resistant stocks of profitable companies tend to be pretty generous with their shareholders and yes, the resource stocks if it has to do with oil. on "mad money" tonight unilever is behind some of your faft brands and after earnings could it become one of your favorite investments? i'm checking in with the ceo then with tech seemingly out of favor on the street is it time to turn to an industrial like caterpillar? i'm talking to the ceo t-mobile reported after the bell so is it time to dial into that stock? i'm digging into the report with the company's top brass. and not all technology is bad. so stay with cramer.

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as i said at the top of the show, we may be headed for the golden age of the consumer packaged goods stocks. these are companies with great brands that can maintain market share in a fed-mandated slowdown and they also become a lot more profitable when commodity costs

inevitably come down take unilever. this morning the powerhouse reported what i thought was a magnificent quarter. 18% revenue growth organic sales growth up more than 10% they've raised prices by 12.5% and these higher prices they're sticking because these are premium brands plus management raised their full year organic sales growth forecast substantially we know the insanely strong dollar is terrible for american companies but it's fabulous for a british company like unilever. in the end its stock still got dinged because management talked about volume contraction in the current quarter and cost pressures could continue into next year. the revenue growth was very encourag encouraging, though. i bet the costs are going in the right direction. and by the way-i sure like that dividend do not take it from me earlier today we had a chance to speak with alan jope he's the ceo of unilever take a look at this. >> mr. jope, thank you so much for coming on "mad money." i'll say from the very beginning, your brands, your powerhouse brands, your billion-dollar brands seem to be on fire. what is determining why you have such great strength in your

major products >> hi, jim please call me alan. yeah, unilever's posted another good quarter of double-digit growth and we've raised our guidance to above 8% you're quite right half our sales now come from our billion-euro brands. and those grew at 14%. and i think we're discovering that in inflationary times brands that have invested in product quality, have invested in marketing, you've concentrated your innovation no n. those brands, they hold up really well because the volumes are pretty solid too >> now, alan, historically we were taught in economics class that people trade down what i've seen this quarter, and you kind of mentioned it briefly, but that when you have these brands that have great trust there's really very little tradedown. and that's important because it's counterintuitive. >> you're on to something here it's so counterintuitive people

have a hard time to believing it but let me give you some data. 35% of unilever's portfolio is in premium segments. 50% in the middle of the market. and 15% is in the more affordable offerings and we are seeing zero trade-down in fact, the premium parts of our business are growing faster than the rest of the portfolio things like our luxury beauty, health and well-being, and i think part of the reason is this is an economic slowdown that is accompanied by high employment, unlike low of-employment slowdowns that we've seen in the past things have to get pretty bad before families stop using soap and shampoo. >> i want to just drill down to smug sa something you said about china i think when you ywear a mask al the time your skin care needs to get better and yet i was surprised. the only down side i saw in your

portfolio was china. can you explain that when your products are so good when you're looked up and trying to keep yourself clean >> let's put it in context our business in china still grew in the last quarter just under 2% maybe the best way to illustrate it is one of our major customers has 4,000 stores in china. at any point in time they're telling me that 400 of them are locked down or closed. it's never the same. so if you think about that, customer mobility is low people are not out and about so we still grew but not by as much as we could, and i think if that 400 stores all reopen there's another 10% of growth to be had in china. >> excellent now, you go to great lengths to talk about how next year may not be a great year for commodities. pepsico disagrees. procter disagrees. talking about maybe 2023 where things that are headwinds go to tailwinds. are you being conservative on that given the fact that others in your industry think that 2023

could be a fulcrum year when it comes to some of these commodities? >> jim, early in 2021 we started to call inflation. we started acting on it sooner than our peers and we've been well served by that we are very sure there will be inflationary pressures into early 2023 for our basket of commodities that we buy, about 2 billion euros, it is not kind of conservatism it's based on the fundamental structural movement of things like agricultural markets. and so we are very sure that we are quite some way from deflationary pressures emerging. >> understood. your categories, the way i read through how unilever works, it's always been a great mystery. i used to get up at 2:30 to listen to the conference call. and i did that because you had so many different divisions, so many different line items, even smaller brands, you talked about

things that were $100 million. you've decided to simplify i now find i can get up at 4:00 and understand your company. why did you do this? did you recognize that it was just too darn hard to understand >> you know, yes, that is partly true we operated in a matrix structure for a couple of decades. matric echl s have some advantages but they are not known for their nimbleness and with the clock speed of the world we wanted to simplify the organization five business groups we think it will make us faster. it will make us quicker the deploying resources with strategy and it makes accountability crystal clear. i've got five throats to choke and very clear who's accountable for what >> the reason is because there's another one who understood the five throats to choke. nelson peltz he is very instrumental i think when he was at procter has he been helpful to you in

trying to get more accountability >> nelson's turning out to be a great board member i'm thoroughly enjoying working with him he tells me he's thoroughly enjoying working with me he's pushing on us -- we designed the organization we move to before he arrived but he's pushing us hard to make sure we get the maximum benefit from it. he likes this type of structure. and he also is encouraging us to stay focused on growth and to make sure we have a strong premium component in our portfolio. those are some of the -- that he's giving us but great board member. >> and then finally, you do have some incredible numbers in personal care, in beauty and well-being but it's this home care increase that is astounding to me what products are you producing in home care that clearly are taking share >> home care comprises our laundry cleaning products, our laundry care products and household cleaning and they've been particularly hit by the increase in

petrochemical commodities. so we had to price along a very high amount of pricing in that division it's a category where we enjoy very, very strong market leadership positions in the emerging markets of the world. we're not particularly strong in the u.s. or europe but we're very strong in our positions in emerging markets and we have strong woefrlz and we're able to use those portfolios to pass along price and so far the health of our big brands like omo are good enough. and we've invested in product quality. and at the end of the day she can tell when the product is of high quality and remember, value is a function of price times quality, not just price >> well, mr. jope, i've got to tell you, i wish we had more time together. we didn't get to discuss hellman's, my absolute favor alan jope, ceo of unilever really great to meet you, sir. thanks so much for coming on "mad money." >> thanks, jim >> he's changing this company. thank you, sir "mad money's" back after the

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you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire this earnings season we have seen a huge disparity between the classic industrials, the real economy plays i talked about at the top of the show, and the mega cap tech stocks that once dominated the market for so long. the industrials know how to handle a downturn. he they know how to tighten their belts and stay focused on delivering the best earnings possible even in tough situations the big tech firms thought they were immune to downturns and once they realized that was no longer the case it was too late well, big tech has been crushed this week. caterpillar, iconic machinery maker, saw its stock soar nearly 8% today in response to a tremendous quarter just a monster top and bottom line beat.

on top of that management said next quarter would be even better with demand staying strong across all segments and margin improvement on the way as price hikes will more than offset any price pressures they face frankly simply stunning. so let's think deeper with jim umpleby, the chairman and ceo of caterpillar to find out more about the quarter and where his company's headed mr. umpleby, i'm so glad you're on today welcome to "mad money. >> thanks, jim, great to see you again. >> all right, jim-i want to be philosophic right at the top you once told me who owned your company. you told me it was the shareholders you told me you work for them. you told me you were done with the episodic good and bad, that you were going to give consistent returns, you were going to do it over time and you weren't even going to be levered just to china, you had other markets. everything you said has come true how's it possible? >> well, thank you, jim. i'm very proud of our global caterpillar team and our dealers around the world as wp well as they worked in the third quarter

to meet strong customer demand our top line was up 21%, and we saw double-digit increases in all three of our primary business segments. sales were up in all regions of the world. even though we're still dealing with some pockets of supply chain challenge. >> now, in your release and in your great conference call i kept waiting for someone to say it's going to be the end of caterpillar when they start raising rates too much it just seems like a combination of smarts, of technology and knowing your customer has made it so that that's no longer the kind of sink or swim thing we're going to get from caterpillar. >> well, thanks, jim certainly we're not immune from global macro economic conditions and we monitor it closely. but one of the things that was a key element of our strategy that we introduced in 2017 was the competitive and flexible cost structure. and our team has demonstrated the ability to produce much more consistent free cash flows and 2020's a great example even though we saw more than a 20% decline in our top line that

year due to the pandemic, we still produced very healthy free cash flow. so as you say, as we look forward to the fourth quarter, we're expecting sales growth again in all three of our primary segments and we're also expecting that the sales growth compared to its year over year sales growth and also sequential sales growth again, we're very excited about what we see happening. >> i'm not impressed anymore with technology companies out west a lot of them just seem to be interested in stock-based compensation for themselves. when i look at what you're doing, you're the house of technology i actually think that cater caterpillar, your machines are technologically superior to others which allows you to maintain price despite the strong dollar. >> well, we are investing significantly in technology in a whole variety of areas one of the things we told our investors in may at our investor day is we have an area called ace which includes autonomy, aufshlt fuels, digitization, electrification. we're investing in those areas

and a great example is our autonomous mining trucks which you and i had an opportunity to speak about before we're very pleased at the traction we're getting there we believe we reached a tipping point with mining customers. at the moment mining customers only need about 10 to 15 trucks for it to make sense to make the capital investment to have an autonomous mining site so we're very excited about that opportunity. our customers have told us that it increases productivity in their mines by as much as 30% compared to the best manned site so again, very excited about the investments we're making in digital, connectivity, a. sxi all the rest so you're right, investing in technology really is a key to our future success and it all comes down to providing more value to our customers we know that's how we earn our keep and so again we're investing heavily for the future >> i know all the oil folks love you. i've been dealing with the railroads of late because i happen to think they're just great american companies coal has come back now, coal i wrote off a long time ago, jim, because of the

environment. but if you're going to mine coal and be in coal, you have to be with caterpillar, don't you? >> well, we provide mining equipment for a whole variety of commodities, and one of the things we're very excited about looking forward is the opportunities presented by the energy transition. we believe the energy transition is actually expanding our total addressable market so you stop to think about ev, it requires six times as many minerals as a conventional internal combustion engine automobile and of course we provide the equipment that allows our mining customers to produce that increased commodity. so if you look at the projections by the automobile companies in terms of the shift from internal combustion engines to evs, that will require a massive increase in basic commodities, of course, which we're very well positioned to provide to our customers, that capability >> i think there's a misperception in washington, particularly among democrats, that the oil companies don't care about the environment i really feel that and i wish it weren't the case but if they're going to be

better citizens for the environment they need caterpillar. tell me what you're doing with resources in the oil and gas area to make them so that they're more compliant and better about the environment >> we've been investing heavily both organically and product development and also through acquisitions to help our oil and gas customers reduce their carbon footprint as they produce oil and gas. i'll give you a number of examples there we've done things like we have e-fracking now we invested in technology that allows our customers to more efficiently operate, which reduces the amount of fuel they use as they produce oil and gas, which of course reduces oil emissions. there's a lot of focus now on natural gas, particularly lng, and caterpillar plays across a wide portion of that natural gas chain. our engines are used for drilling our reciprocating engines, reciprocating gas compressors for gas gathering near the well head we're involved more than ever in well servicing and again, added

technology there to allow our customers to reduce their carbon footprint in that activity and also our solar gas turbines driving solar centrifugal natural gas compressors, compress gas down the pipelines. again, we believe we're part of the solution -- >> i want people to know that. final question, the federal government out of nowhere has decided to create caterpillar bills, so to speak are you able to meet demand of even some of these federal programs that very much need caterpillar earth movers, kind of just the basic caterpillar? are you able to meet the demand that we're going to be having? >> well, we're very focused at working with our suppliers to meet that demand and we are excited about the opportunities we see in what we call non-residential construction we expect that activity to strengthen in the fourth quarter and we think there's great opportunities there. as you say, those government investments will occur regardless i believe of what happens with interest rates. so again, we're working very hard to position ourselves to

meet that future demand. >> jim, congratulations. i love it when a guy comes on, makes promises and then overdelivers on things i never thought you could do jim umpleby, caterpillar chairman and ceo sir, so great to see you congratulations. >> thank you, jim. >> "mad money's" back after the break. >> announcer: coming up -- when it comes to your money, is it time to think pink? coverage continues with t-mobile on "mad money. - oh, the stock market is doing that fun thing again. news from the future: you're going to live through that about 10 more times! (laughs) no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - [narrator] yieldstreet: private market investing.

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look at the stock of t-mobile go. tonight the wireless carrier reported a robust quarter, a modest revenue miss coupled with a tencent earnings beat off a

30-cent base more importantly like just lyle v like att they're running circles around verizon adding subscribers a key metric when the analysts were looking for 739,000. it's more than att and verizon combined extra impressive when you remember that t-mobile's got the smallest customer base even better they're getting costs under control and they've raised their full-year subscriber forecast. plus they've got this mammoth $14 billion buyback. so let's check in with mike seibert, the president and ceo of t-mobile u.s., to learn more. mr. seibert, welcome to "mad money. >> it's a pleasure to be here, jim. >> so mike, both of your competitors went on their calls and they said that price increases helped them raise revenues and that the churn that resulted was only temporary. are you missing an opportunity here by keeping your prices loy? >> you know, it's interesting. we saw all this unfolding over the summer and just it looked to us like a total repeat of the carrier uncarrier story we've been seeing for so long

you know, the bottom line is that every time our competitors over the last year have seen an opportunity to grab some money they've done that and they've used inflation as an excuse to jack price increases on their customers while they're stuck in device contracts and could do nothing about that now, what's interesting, you look at it and say churn will be elevated for a minute and then it will be all fine is sort of the sentiment. but our mindset is just different about that when they carrier, with you uncarrier. and our two cents on it is what's at stake here is the brand. the long-term covenant that you have with your customers and what we believe in is that if he with put customers first and treat them right and change the rules in this industry in their favor they'll trust us and they'll pick us. and to your point, this quarter they picked us on post-paid more than at&t and verizon combined >> also, i want to be sure about this but my understanding of post-paid phone churn .88, you may be the only operator to improve over what i think is an

incredibly important metric this year >> we are the only one improving. and by the way, 0.88 is eight basis points lower than a year ago, the only year over year improvement. and it's lower than verizon for the second quarter in a row. and jim, notably that blended post-paid churn includes sprint. years ago, you know, people asked us are you catching a falling knife? those guys are losing hundreds of thousands of customers every half year. how's that ever going to work out? highest churn in the industry. and it turns out sprint customers are no different if you just love them and give them a great value and a great network, they'll stick around. >> i want to understand, in the conference call there's been some little i think nuance i've got to get right the report, the way i read it is not true but you were saying phone subscriber growth is moderating i read thats anot your growth is moderating but for some it's moderating fill me in on this will you >> well, you sum up all the net adds in the industry

and it's a vibrant growing industry but it's a little bit more muted than this sort of exuberance that people had and what we've been telling people for quarters and quarters is when it moderates who's going to come out on top will be t-mobile because unlike our competitors we have a viable sustainable growth strategy with all kinds of unpenetrated segments we're only a 10% 11% share in business in smaller markets we're only a 15 share the only reason we're number two nationwide is smaller markets in & rural areas. we're number one in new york, l.a., chicago, houston, miami, et cetera. so we have huge underpenetrated segments to get after. and by the way, even in those big markets where we're the leader we got here by not being able to win the network seekers. a lot of people still wonder if we've got the best network because brands are stubborn. so we're actually starting now to win network seekers and prime customers in the big markets where we're already the leader >> but what are you seeing about

inflation and the economy? lots of companies are guiding down, showing a lot of caution people are getting very worried. a lot of seattle companies starting to not do so well give me a feel for the economy and what can and can't be charged, and if you want to you can also throw in what you're doing with high-speed internet customers. >> well, i'll tell you what. customers are concerned. and inflation is on the rise and a lot of companies are obviously changing their outlooks as a result we're not. you know, obviously we're here to meet the moment where customers need us most, and we're competent at dealing with customers with variable economic circumstances. we always have been. and we will help them work through if they can't pay their bills. so far we're not seeing it in fact, bad debt levels are on par with pre-pandemic levels in '19 and '19 was our best year in a long time. so we're not seeing it we're watching for it. we're not seeing it. what we are seeing is the beginnings of a flight to value.

look, this category is essential. it's not like the '08-09 recession. no one's going to want to live without their mobile phone but they might start asking themselves do i have the right provider like on broadband where we charge $50 and zero cents this quarter we will racked up more ads than at&t, verizon, comcast and charter combined >> we're going to leave it right there. mike, once again, congratulations on a good quarter. always will have when you come on "mad money. mike sievert's president and ceo of t-mobile. tmus great to see you, sir. >> you bet good to see you. >> "mad money's" back after the break. >> caller: coming up, cramer takes your calls and the sky is the limit. it's a fast firearm lightning round. next - oh, the stock market is doing that fun thing again. news from the future: you're going to live through that about 10 more times! (laughs)

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it is time it's time for the "lightning round" and then the lightning vound over are you ready, skee-skee-daddy let's start with bob in michigan bob. >> caller: hi. i bought warner brothers for 13.80 later this spring and i got disillusioned with managed so i sold my shares the day before yesterday at 13.61 at a loss of 19 cents a share what's your opinion of warner brothers discovery long-term >> okay, i need to see them make some money as i've said over and over and it's really helped our viewers, i'm not recommending stocks that are losing money i recommend stocks that are like

amazon, i can't recommend money losers darryl in louisiana. darryl >> caller: boo-yah and who dat, jim. how's it going >> it's going well how about you? >> caller: good, sir i have a question about -- shoot, i done forgot now >> that's all right. i don't know maybe it's about jamar chase and wrecking my fantasy team probably off base there. >> caller: getty holdings. >> getty holdings is very hard to understand because it came public, there was a big short squeeze, it went up way too high and now it's all the way too low and it's not a bad company i think down here. i'm not a spac guy but this one may be actually worth looking at holy cow i can't believe i just said that about a spac let's go to jason in illinois. jason. >> caller: hey, jim. long-time viewer, first-time caller

appreciate everything you do and congrats on the phillies >> thanks a lot. >> caller: but anyway, wanted to talk to you about clf. >> the quarter wasn't that good. the company tried to say it wasn't as cyclical as it turned out to be. as far as i'm concerned, once you get to the 13 level you're not going to stop right there. it's going to go even lower. that's why i continue to prefer nucor. better company i'm not done we're taking piroz in california >> caller: hi, jim thanks for taking my call. really appreciate it >> of course >> caller: as a garp and momentum investor i wanted to get your opinion on a health care stock that is showing great technical momentum and a fantastic pipeline for drugs in the diabetes, kidney disease and sickle cell disease space. it has currently a p/e ratio of 25 and it has a great balance sheet. what are your thoughts on vrtx, vertex pharmaceuticals >> ever since what they've done

for cystic fibrosis i've been that company sometimes it's painful to be behind them but i say stay with it it's a really, really well-run company. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: coming up, fortune favors the brands. the home and security story that can help secure your residence and your financial future. next

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is there anything that's worth owning in the housing-related space? look, the whole group's been hit hard, but eventually the fed will declare victory in its war on inflation and these stocks will come roaring back take fortune brands innovations. new name for the supplier of cabinets, plumbing products and security systems that used to be known as fortune brands home and security they're changing the name as part of their broader restructuring because they plan -- they -- this is such a great idea they're going to spin off their cabinet business as an independent company.

that business is doing surprisingly well. now, last night fortune brands reported a difficult quarter slight revenue miss coupled with a 7% earnings beat off 1.72 ds basis. management cut their full-year forecast yet the stock actually rallied today. which makes me wonder if the negativity isn't all baked in. let's take a closer look with nick fink the ceo of fortune brands innovations to learn more about the quarter and what comes next mr. fink, welcome to "mad money. >> thanks for having me. >> i've got to tell you, this is an exciting time for your company. you are splitting up and i don't want to spend too much time on the actual macro of our country because what you're doing may actually transcend some of the macro because there's so much science here >> as you said, we've got the separation coming up and the reason for the separation is we've got a couple great businesses it's really operational excellence those guys will be here hopefully sometime this year getting the thing off to a great start. and the rest of the business is

really going to focus on brands and innovation hence the evolution of the name to fortune brands innovation so some of the things here are the products we're bringing to life in this world >> let's take a look they're not prosaic anymore. they're technological. and that's important because that can make it so it transcends the raw business cycle. >> if you think about how we'r going to gear the whole business, fortune brands innovations, it's really going to be focused on the supercharged parts of the business so things like connected products material science outdoor living these are trends -- to your point, they transcend the everyday cycle and the things consumers are getting really, really excited about, things they want to replace in their homes, upgrade, expand those are the areas where we're going to drive >> how much will be do it yourself how much will be professional renovation how much is right to toll brothers and lennar? >> you know, we've got a big builder business, but we're 2/3 to 75%, depending on the year,

r&r. still a big r&r business a fair chunk of it's do it yourself some things like that include the pro. the pro has to come in and help you install that >> it's almost impossible to buck the business cycle. we all read about what's happened with mortgages, and we know the fed wants very much to slow the economy i actually thought that your numbers bucked a lot of that but maybe these quarters themselves were just not as important as what's ahead. because these two companies look very different >> the fundamental backdrop's the same housing's underbuilt in the u.s. long run people are going to need homes because of interest rates there are many downcycles. we pride ourselves in managing the business through the many down cycles for investors. the management team has to know how to do that so we can give people exposure on the up side that's what you saw in the quarter. >> we all know moen. we know it's a great brand

but it's more than that. i myself am negligent to realize there's more to it, a lot more i want you to tell us about it >> moen, historically number one plumbing brand in the country. faucets, shower heads. >> sure. >> we've completely updated that it's really about residential water management the biggest evolution in plumbing in a couple thousand years, since the romans put it in, is adding power and a.i. and tech to plumbing and so that device there is the brain of your house. it can algorithmically read what's happening in the home, understand water patterns, and if you're going to have a catastrophic leak, jim, it will shut off the main. right? water damage is more expensive to insure than fire and burglary combined >> right because of mold. and mold is the end. when you have mold in your house, if this can stop mold i want this. i want it tonight. >> it will instantaneously take a read, let you know, give you an alert, and if you don't respond shut it off. you've got a fire alarm?

>> yes >> you've got a burglar alarm? >> yes >> but people haven't had a water alarm. and that's the big change. >> a lot of people think the cabinets are all created equal that can't be. or else you wouldn't have such share. >> no. cabinets is about understanding how to drive scale and manufacturing excellence we've completely simplified the business so we're able to bring products to the heart of the market you saw the numbers yesterday. 20% growth for the cabinets business some of the best margins ever. and that's going to continue because we're doing cabinets in a way it hasn't been done before >> i was surprised at decking. everyone else looks bad. your decking looks good. >> we've got pretty awesome decks. you look at the star rating, best in the business the colors, the innovation and bringing that business into fortune brands is really a difference maker because we've got to focus on brands, innovation, we focus on the material science and that's what you're seeing in the decking space and we're just really getting started. >> i'm focusing on how much your company has done for many, many years to help shareholders i robe bemember back in '92 whei

first bought my share of the previous iteration congratulations on the split it's really exciting nick, it's exciting. that's nick fink he's the ceo of fortune brands lots of new things here you've got to know about. there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer see you tomorrow "the "the news with shepard smith" starts now a surprise upset to the economy, but will it do anything to shake up the political landscape. i'm kayla tausche in for shepard smith. this is "the news" on cnbc. the u.s. economy still expanding. even as gdp grows -- >> up 2.7%, better than expected. >> a better policy for america first responders defend their actions th