eddie murphy said in the face. that's what courtney did she didn't acknowledge it. it was beautiful. >> i think devon comes out bottomed last week worth a look. >> thanks for watching "fast money. "mad money" with jim cramer starts right now my miegs is simple to make you money. i'm here to level the playing field for all investors. there is 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 save you some money my job is not just to entertain but put things in prospective is call me at 800-743-cnbc or tweet me @jimcramer. today, the market through a

presidents' day sale, you just didn't know it almost everything got marked down and potential buyers ran from the sale rather than embracing it dow plunging 697 points. the s&p plummeting 2%. the nasdaq nosediving. i don't blame anyone for fleeing. we have so many things going wrong. we heard from two of the largest retailers in the country, home depot and walmart. tonight, both companies made it clear there is no end to inflation. it's eroding the american consumer interest rates keep going higher making stocks less valuable in comparison to bonds. that's a terrible combination. off center in the fact that no matter what the fed does, it doesn't matter it can keep raising rates and nothing seems to stop inflation.

when the market cascades lower like this, you have to recognize we're going through what wall street calls a reset a reset. plain english means all stocks have gone up too much since the beginning of the year and they have to repeal some of that move remember, the 2023 rally has been all about the idea that the federal reserve will soon be finished raising interest rates because it seems to be winning the war against inflation. now, it doesn't even seem to matter to people it doesn't matter that jay powell, the federal reserve chief never said that he was about to win he was not about to declare victory. he made encouraging comments about disinflation but he also made it clear that we've got a long way to go it doesn't matter he said there is persistent inflation in wages, the thing the fed worries the most about the real big trigger pull, just assume we were in a doctor paying glass market. all is for the best and the best of a possible market so they bought the industrials they bought the banks.

and most important a small tech stock and work what they paid for. now that we're getting discouraging data on the inflation front, most of the buying needs to be on wow. that's why the selling is so aggressive, so torrid. constitutional money managers simply got the market wrong. amazingly, the big bond traders got it wrong too those who bought ten-year bonds thinking the economy would cool and inflation goes down also got banked and selling bonds aggressively that causes long-term interest rates to rise more competition to stocks so what does this have to do with you with your portfolio? it means this darn presidents' day sale might not be over it might be a sale that lasts a couple days longer to keep marking them down. maybe today was just the beginning which brings me to the big questions, how long will the sale last? how do you know if it's even worth taking this opportunity to do some buying should you be joining the sale

rather than buying into it >> sell, sell, sell, sell! >> let's take them one at a time should you join the sale depends. if you own stocks that are up huge for the year, it's definitely not too late. the s&p 500 is up low single digits a stock 25, 30% more, recognize that the saell off here is probably far from over for you want to. >> jeff: -- join, take it off the table. not a bad idea however, if you own stocks up as much as the averages and not much more, no, no, i wouldn't sul them here. not worth it you can swap back in and out you can figure out what to do and get back which brings me to the point of tonight's show. how do you know when this presidents' day sale is about to end? now that the mark downs are just

hideous. first, longer term interest rates have to stop going higher or stop going higher so rapidly. this is the ten-year treasury is yielding 4% but the two-year treasury is yielding 4.75% i've been saying that's ridiculous that you aren't getting enough interest on the ten-year long rates are simply too low. they have to go at least as high as the short rates you're being compensated well enough for ten years worth of risk so there is a lot of wood to chop here, real tough we need rates to come down the journey higher seems inevitable but we need it to happen more gradually. if rates keep going up aggressively, they don't need to go down. the sale may be nearing the end. we need to see last year's biggest losers that made huge comebacks this year. we need to go back down. i'm talking about the companies that are losing money and the stocks that are trading at high multiples to sales, not earnings so many stocks mostly these tech stocks really aren't worthy of

their current bounce back valu valuations third, we got a sea of resu resurgence, recession resistant stocks the pepsi coco, the merck. we need to see the bank stabilize. why? they are unsung heroes of the market because buyers believe they can peacefully co-exist with higher rates as long as the fed doesn't tighten too rapidly. if rates sore we have a problem with bad loans but if rates go upwards, the banks represent tremendous value here. remember, every time the fed tightens, they instantly become more profitable. fifth, now that the retailer is reporting we got to see the weedw weeds separated and not be trashed at once. for example today, home depot reported an okay number. stock got crushed. makes sense. home depot's earnings are tied to housing and the fed is doing its best to level housing. on the other hand, walmart

delivered a set of magnificent numbers. this is no longer your grandfather's coal mine. it got value, price. i think it's competitive with amazon and encouraging that walmart stock finished the day in the black again we'll hear from the ceo later in the show finally, we really need to see the oscillator i'm talking about especially with members of the cnbc investing club. not over sold. how about minus five take a look at it. before we get in front of this freight train that is this selloff. bottom line, oh, it's a tall order here i don't know if we can get all six of these unfortunately, this presidents' day sale doesn't feel like it over but the checklist, this checklist will give us a real good feel. until more of these boxes get checked, respect the sellers in fact, you might want to. >> jeff: them. they got most likely say a lot more to fall let's take questions let's go to john in pennsylvania, john

>> caller: mr. cramer, how are you doing? hope you had a good birthday. >> it was fabulous thank you for asking seems like ages ago. how can i help you >> caller: the last quarter, yetti had a lot of good things to say and i belong to the investment club and truly love it and the information -- >> great hope i see you saturday. what's going on? >> caller: exactly last quarter yeti had a lot of good stuff to say i thought so we waited for it to come down over tight and bought in at we thought was a good price here in a couple days and couple days, a week or so ago -- >> okay. >> caller: solved the problem, you know. >> yeah, i know. >> caller: today is the crush day for everybody. >> right >> caller: what is your thoughts >> look, they just changed cfo want to give them a chance i think the stock can trade 10% lower and then i think john we'll be in good shape you know what? don't get itching to buy here.

it's too hard. unfortunately this presidents' day sale doesn't feel over yet until more of these boxes get checked on our exclusive list, respect the sellers. on "mad money" tonight, starbucks had a product that howard schultz will disrupt and maybe add to earnings. learning more about the latest innovation and walmart as i mentioned reported a quarter that received a mixed reaction on wall street initially but went up. i'm running through the numbers with the company ceo and does palo alto networks have what it takes to defend with the bears on the street? it looks like it we'll talk to the company's top brass so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to "mad money" at cnbc.com or give us a call at

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tonight starbucks announced a new line of products called oretto and it's launching in italy tomorrow before coming to southern california this spring and additional markets later this year. they sound incredibly confident about this but don't take it from me. earlier today we got a chance to check in with howard schultz the interim ceo. take a look. howard, i have not heard you this excited about something at starbucks. this transformational for years and years. tell us about this new drink and why you think it's going to be big. >> thanks so much, jim first off, from italy with love,

jim. you know, as you know, i discovered expresso and italian coffee bars in 1983, 40 years ago and this summer 40 years later in sicily, i had another epiphany and i discovered partana extra virgin oliver oil and the discovery is a spoon full of olive oil mixed perfectly with cold and hot expresso starbucks beverages i'll bring a couple onset so you can see it, unfortunately, you can't taste it this say transformational moment in history creating a new category, a new platform and a sense of discovery for our customers. olive oil and coffee have been around for thousands of years and here at the heritage of italy we discovered it and bringing it to america and tomorrow we open in italy. it will be an extraordinary event. the name of the beverages and the category is ololiotto and ts

is the first beverage, jim this is golden foam gold brew. oleato golden foam cold brew you would love it. >> if i put a spoon full of my olive oil into coffee, it may not be special what do you do to make sure this is different than dumping a spoon full in. >> i'm glad you asked that all of the customized beverages that the starbucks innovation beverage team created at the center of starbucks' business, once again, we created secret formula of infusing the oleato olive oil with starbucks coffee and creating a beverage that produce as velvet, very lu luscious, almost creamy butterly flavor and ex ttends the coffee flavor and you get the taste on your lips extending the coffee

everyone that tasted it in italy in preparation for tomorrow has gone wild because nobody could expect that we would do something like this and once again, it is disruptive innovation that only starbucks could do. >> now, howard, we know when we watched you do that that we say when can we get it in america and where? how soon >> okay. so we open in italy tomorrow and our 25 italian stores. i'm sitting in our roastry that opened five years ago. we opened in california early spring, starting in southern california we'll go to japan, as well the u.k., the middle east. this will be a new category and platform all over the world for starbucks. it will enhance our business but most importantly, provide a sense of surprise and delight for our customers and what we know about our customers and we've shared this with you over the years is that they customize beverages. so even though we're creating core beverages for oleato, our

customers will put a spoon full of the pertana olive oil into their beverage and customize it and have the same luscious butter flavor we've created on our own. jim, this is the next beverage, this is very simply oleato iced shaken expresso. and you're right, i haven't been this excited in years because i know instinctively that we have created a completely new platform transforming both the coffee business and i'm sure we'll transform the olive oil business the hero of the story, though is partana. a family owned business and not just any olive oil olive oil, this family has been growing olives for 10 years in the -- 100 years in the valley unique similar to how we grow coffee and the symmetry is

perfect. once again, jim, the proof is not what i saw or marketing and p.r. the proof is always in the cup that's why i'm so happy, so proud and instinctively know this will be a great success for our company. >> okay. howard, you are handing over the reigns in april. it sounds like to me that you will stay on, i know you're a member of the board, as an ambassador of the new drink. is that possible >> that's correct. i will interdeuc introduce it i late april and i will carry the starbucks flag and american flag all over the world for oleato. the ceo at the annual meeting o march 23rd, only one leader at starbucks. it will be him i'll stay on the board helping m melody and him but come april 1, the ceo role for howard schultz is over. >> this is a great model for you. you have had to step back at times and come in.

you will have a role that's operating from the point of view of partana and oleata and this will not be your baby but what kind of baby are you giving him? >> wow, the momentum in our business is strong we're serving more customers in the world than ever before china is going to bounce back just like we predicted and i think we got a new category and a new platform for the company and our customers and i think the win will be at laxman and our leadership team's back the year for me is over. i feel really gratified about what we've been able to do as you know, we've added $40 billion in market caps since i came back april 40th and i feel really good about the position we're in. the equity of the brand and starbucks' position not only in america but around the world and very happy to see that our chinese customers are coming back. >> we know that the federal reserve here is worried about inflation. how much inflation including wage inflation have you had to

deal with? is it nominal or substantive and are you worried about it going forward? >> i'm not worried about inflation going forward. i might be the only ceo in america that feels like we might have a soft landing and not worried about what people are saying about recession our business is quite strong we had 10% docomps in the last quarter in the u.s. and double around the world we had inflation we raised prices about 5% or so. we don't anticipate any more raises and we're in very good shape as we look at the balance of our fiscal year. >> you know on wall street we care about earnings. you have a new drink is it your estimation that this is a needle mover for those who are invested in starbucks, which includes my charitable trust. >> here is what i believe. i believe we are introducing a product in a category that will be disruptive in terms of innovation and starbucks will be a market maker with olealto.

i believe it will be increate mental over time and change behavior and enhance the value of our customer experience and always mindful of really the fa douche yarry responsibility in enhancing the experience and i believe it will do that over time. >> i could not avoid my favorite drink, frankly, which is expresso martimartini. are you talking about some day putting what goes into a martini into this drink? >> i'm glad you asked that in the roastries in china and u.s. and milan, we've been sampling it to italian customers and people around the roastry and the line is out the door to get one of them and people will be able to get that tomorrow in our seattle roastery you'll be able to get that when we introduce it in the spring. >> final words from howard schultz about this drink and

starbucks. >> the wind is at our back we're certainly sensitive to the pressure on our customers. want to do everything we can to exceed their expectations and we think oleato is em emblem of i. >> fantastic, howard schultz, thank you. interim ceo of starbucks and yes, soon to be full time ambassador for partana great to see you again. >> thanks, jim thanks very much. >> announcer: coming up, walmart has warned of stiff winds ahead. should home gamers heed the caution or stick with the stock? cramer has the ceo, next.

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this morning retail giant reported better than expected results and defied the grav na -- gravitational pull let's find out how it happened welcome back to "mad money" mr. mcmullin. >> thanks for having us. >> i have to tell you something, doug when you have 600 billion, $600 million in sales and you expect to add, i don't know, 38 billion more, how can a company grow that fast that is so big >> it's a team effort. q 3 was better and q 4 was stronger they did a great job working through inventory challenges and dealing with inflation that got us to an all-time record of $611 billion. >> i want to step back

the analysts were very concerned about every nitty gritty thing i want to look wholistically you are representative of what the country needs. you offer great value and whatever people want, brick and mortar or online, you're the on one to pull it off that's the real secret sauce for walmart. >> jim, we would agree it turns out that stores and clubs are a real advantage and over the last few years, we made a lot of changes to grow commerce it about 80 billion-dollar around the world we're in 20 countries that growth enabled us to serve customers in ways that many other people can't we're really close to them you can pick up and order, have it delivered in some markets into your home into the refrigerator if you want to. we're positioned to be able to continue to grow the company because we're serving customers and members how they want to be served >> i'm trying to describe you.

you're a great retailer and also a tech company you're hiring a lot of tech people you told me you would do that five year aars ago. everything you said came true. there is another company called amazon and amazon does not have 5,000 brick and mortar fulfillment centers so therefore can't bring it as fast and cheap as walmart as a long-time disadvantage you're great advantage versus others. >> they are an advantage if you take the u.s., the super center is a fantastic format what you saw as we got towards a period of pandemic where people could come back is they did come back and shop in stores and sam's clubs and we've been able to use them with a great assortment of merchandise including fresh food, perishable food at a great price. walmart and sam's club to do pickup orders and delivery in a way that's driven our e commerce business at the same time we've been

building e commerce capability and growing the marketplace, adding fulfillment services, selling ads and building a business that enables us to grow the profitability over time while still offering a great value and the stores and clubs are a foundation of that. >> the federal reserve is trying to keep down prices. when i go down my aisles, i see cookies $2.88 versus the actual oreos $4.58. great value yellow mustard cheaper. i can go on sand on isn't this not your grand grandfather's walmart but prices genx knows and millennials know and see real value under your fantastic brands and they recognize you're a better value and your stuff is every bit as good as the brand is >> first of all, thanks for

shopping in our stores. >> no problem. >> it's great you've been in there. you're right, everybody needs value. whether you're old or young or rich or less rich, you need to be able to shop for value and private brands if they're the right quality are a great way for us to grow our business and as we try to fight inflation, our pourpose as you've called ou to help people save money and live better. to do that, we try to find ways to bring them the value and private brand plays a big role in food or general merchandise. >> when i look at your private brands seeing who is represented, guatemala, jordan, el salvador, cambodia, pakistan, india, is this a concerned attempt to do the best value and go to the countries or a way to diversify away from china? is it a way to create worldwide value? these people -- probably the best jobs are a job making fresh

assembly and wonder nation easy pe peasy and celebrate. >> we want to buy more here in the u.s. for our u.s. business that's an objective of ours forever and we continue to set the bar higher and try -- high in terms of trying to grow our volume made in the usa regardless of the category today about two-thirds of what we sell here in the united states is either grown or manufactured here. that other third is imported and we have a capability of looking around the world to find the best value, quality and price for our customers and members but we'll keep working to try to get as much as we can made here. >> at the same time, what i see when i look at branded prices, i have to believe that the branded guys have to be worried. they have to think about bringing down their price. something that the federal reserve can't do simply because your high quality house brands make it so they shouldn't be able to charge what they did and think they can get away with it. >> over time, the market works

and customers and members are really sharp they know value. and they find the best price so we believe branded manufacturers and all of our suppliers of all types will have to respond to the market in time no doubt, a lot of us including our business has been put under pressure from various forms of inflation in the last year in particular and we're working with our suppliers to try to get rid of as much of that inflation as fast as we can to get prices down every meeting we have with supplier, we're advocating on behalf of the customer trying to make that happen and where we can with private brands, we'll keep showing that value and giving our customers an alternative that's what they want and need from us. >> i want to go back to the notion it's not your grandfather's walmart. when i walked into my walmart, there were foods not necessarily good for me. i see fruit and vegetable but organic fruit and vegetable. that says doug mcmillan is trying to get the genx

millennial people don't realize are going to walmart because it has quality, value and price. >> no doubt. and then we changed a lot and we'll keep changing. i think it shows up jim in the products we're selling as you described and also in the way we go to market with thes today we highlighted the fact we have a voice and text capability within our app that is scaling new technology will play a role that will help us attract younger customers, younger families and there is this one inflection point, jim, that matters an awful lot and that is when you have your first child suddenly things look a little different. you become more value conscious and in some cases you reassess where you shop and we want to win our customers and families' businesses at that particular time in their life. >> all right so let's bring it all together your guidance was conservative i felt and your cfo i've known for years does a very good job of explaining look, we won't over promise here but what i look at walmart at this particular time

and a lot of people concerned about the country and value and where to shop, somehow you have now captured what i regard as the actual site geist. people are worried people are trying to save. people are looking to walmart the way they used to look to amazon amazon is competitive, obviously. walmart plus i think is the best deal around. >> we're obviously bullish on walmart. the annual guidance is just that it's annual. it hard to know exactly what the back half of the year will look like we have moe mentum headed into e year we made changes in the business with things like pickup and delivery with walmart plus that enables us to serve people better and attract all income levels, all age groups to our company. we'll keep working to try to earn their business and we think we got a great opportunity this year and as we start the year. >> you still talked about stubborn inflation and dry goods and consumables but when i go through the stores, this is

exactly what you're attacking with your private label head-to-head scott paper, scottish shoe versus your own. aren't you or am i attributing too much strength capable of bringing some of these prices down yourself? >> i think we have historically shown we can bring prices down and private brand is sometimes the easiest way to do it we want to have a great relationship with branded suppliers and do it with them, too. it our preference branded suppliers step forward with what customers and members are looking for so we don't have as much pressure on private brands but we'll be there with private brands where we need to. we need to get prices down that's what we've historically done around here in our hallways and meetings we talk about not participating in a recession if there is one that we can win in any environment. if people are looking to save money, we're the place to come if people have more money, we're the place to come with our combination of products and services these days, we just see

that we've got an opportunity given our position now to continue to grow the top line and also, change the business model to operating about changing the actual composition of the pnl we've done that with marketplace, ad income and those are starting to scale and you're seeing that and as we talked about guidance today and talked about the company with investors, that was one of the things we stressed. >> excellent your stock was down five at one point. everything you said now is why it going higher and it's because people are recognizing that maybe walmart is not the old walmart. it's the doug mcmillon walmart. appreciate your success. great to talk to you. >> thank you, jim. >> that's doug mcmillon president and ceo of walmart i was blown away by the numbers this morning wall street didn't figure it out until later.

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today was hideous from tech stocks we got results from palo alto. they shot the lights out a 27 cent earnings beat off the basis higher than expected sales and guidance excellent for the current quarter future to top it off management raised the full year forecast which is why the stock is soaring in after hours. let take a closer look with the chairman and ceo of palo alto networks to learn more about the quarter. welcome back to "mad money."

>> thank you, jim. thank you for having me. >> okay. these numbers versus what you said you could do even three months ago are extraordinary the businesses pouring in, what is -- what is the spur for all of this amazing quarter? >> well, jim, you and i talked about this and we talk about this every quarter the challenge as we all saw that scrutiny was increasing and people paying more attention, now, that i said to you, these quarters are creations of our financial market so we -- there is no concept where customer haves to get a deal done by a certain day we told our sales team to get ahead of the problem they got ahead of the problem. we reviewed deals early in the life cycle we have to make sure every customer had what they needed. that allowed us to implore execution capability that's delivering on the plan set out 12 months ago and make sure customers get what they need and staying down heads down

execution. >> we'll talk about two things you got right. one is artificial intelligence but you told me and you told our viewers and you told my charitable trust that you have to start pivoting. it's no longer good enough to have growth. you need profitable growth other haves imitated that but you saw it coming. how did you know to switch >> well, jim, i have to give credit to a very long-term investors that came to visit me eight or nine months ago they looked at the number and growth and said this is great. start showing scale and leverage and just so happened it co-sign eve -- coincided with the fed to increase interest rates to start making real changes in the business we have scrutinized our growth margin and head count and processes to make sure that we run this business efficiently. what we've been able to do is we've been improving operating margins by 440 basis points in the last 12 months or 440 basis points ahead of same quarter last year and we think this is a new basis. we have given guidance that

would improve by 50 to 100 basis points we're three years ahead for the guy dense on operating margin now. >> three years ahead of guidance is extraordinary how much of that is because you recognize these are not just simple security breaches anymore? these are breaches that require artificial intelligence, machine learning to get ahead of the bad guys >> well, jim, two things happen. early in our life cycle we invest in building to scale, that allows us to get better margins from these categories. that's three years ahead that's one part of it. other thor part in a partial we got lucky and worked hard and identified the cloud as a big opportunity and a.i. as a big opportunity. i've been talking to -- went back and saw the clips we've made together and went back and talked about a.i. five years ago and automation then. we talked about a.i. last year when i said we'll take what we've done at palo alto, taken the response under minutes and replicate that and make that a

commercial product literally two months before chat gdp came out and started telling people a.i. is important sometimes better lucky than good. >> i think your more than lucky. one thing i noticed is a lot of companies, competitors have fallen by the wayside. are you in a position to consolidate or don't need anybody? >> you know, jim, security is a very interesting space security you have to innovate. we shared something this quarter called the constant innovation and i'll talk to you about this and remind you about this in a few years. in security, if you want to leave you have to constantly innovate many consolidation opportunities are legacy opportunities that haven't kept base of the market seeing them suffer top line or margins and that's not a good look for us. that would put us back we're better off inknow varietying for the market, delivering then using cloud and a.i. and going out and taking share from the people with legacy products. for us, going out and

consolidating legacy markets is not what is interesting. you've seen us make 17 accusations. they've always been top of the stock top one or two in the category and something we believe the customers will need and will be huge in the future. >> that's disruptive to everybody else how could this stock be soaring when we're not looking every day in the news about hacks and not seeing what state sponsored terrorists are doing and not seeing what people just say listen, i need all of your bitcoin. what happened to the big hacks i don't want to say they're stuck. i don't want to knock wood is there something at work right now that -- are we stopping them, stopping them quicker because of a.i.? >> well, jim, we haven't seen big but there is constant cyber activity going on. there is cyber activity in the state level and corporation level. we're seeing that. we're getting ahead of it. we're helping customers. at the same time, you are getting plummeted by the fed chasing inflation, cutting

interest rates at the end of the day, companies are operating. ceos 0 op are operating nimble there is depth not created yet it's paid and an opportunity to consolidate. the reason you're seeing us do well is customers are saying i want security. i want it to be good i'm cost conscious and make sure you deliver at the right price say listen, we have leadership in certain categories by us and our stuff is not only good but works together that's the reason we're getting in with many customers driving the consolidation compensation hopefully able to get market share in our industry i have. >> it's very important because of macro conditions, customers are holding back when you're hearing and telling me is that not holding back, they have to do it but have to do it in a value oriented way, which is what palo alto offers. >> well, they're doing it in a

way i said on the earnings call. customers say i need help making payments i don't want to pay up front i want to pay on the basis and get financing. we have $6.2 billion on the balance sheet, jim i can afford to finance my customers. we'll generate 2.5 billion in the cash flow despite running financing for some key customers. so we have the firepower we have the muscle to be able to help customers in this market. not every competitor who is smaller has that capacity. >> that's what it is okay look, i got to stop you here because we got to go and do the rest of the show congratulations on an amazing quarter and on this amazing year where you're separating from everybody else good to see you, sir >> thank you, jim. >> chairman and ceo of palo alto networks which will probably be the biggest winner tomorrow. "mad money" is back after the break. >> announcer: coming up, cramer takes your calls and the sky is the limit. it's a fast fire lightenning

round, next.

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with two max-strength pain relievers. ♪ so you can rise from pain like a pro. icy hot pro. it is time, it is time for the lightening round, buy, buy, play the sound and then the lightening round is over are you ready ski daddy? time for the lielghtening round start with robert. >> caller: boo-yah. >> boo-yah, robert. >> caller: hope you're doing great. appreciate all your help you give us. that's for sure. >> thank you, what's shaking

>> caller: calling about impinge. >> it is a great company the problem is it's not a great stock. the stock is very over valued but versus business, you have to wait until it comes down before you buy. clinton in florida, clinton? >> caller: jim hey, does ast space mobile look promising to you they successfully launched the first satellite. i'm interested. >> i saw a launch. incredible doesn't mean i want to buy it. let's go to nico in illinois, nico >> caller: jimmy chill big boo-yah from chicago, pal. wondering about -- >> oh, man >> caller: petco. >> unbelievable things going for it inexpensive. you can buy in bulk. at the same time, it is, man, $10 which tells me, believe it or not, something is wrong and i say don't buy petco. unbelievable you know what is wrong it's up against chewy and walmart.

tyler in california? >> caller: big boo-yah from california, how are you doing, jim? >> love a familiar boo-yah puts me in the mood. it's tuesday, why not? what's going on. >> caller: zoom in or zoom out for z.i. zoom info? >> i have enough in my charitable trust with salesforce zoom info xnay tom? >> caller: jim, thanks for taking my call. >> quite welcome >> caller: hey, listen, i'm calling about pfizer it seems to been neglected by everyone. >> that's why we have to buy pfizers seven times earnings tells a good story that's what we want if there is a slowdown i want to buy pfizer and that ladies and gentlemen is the conclusion of the lightening round. >> announcer: the lightening round is sponsored by t.d. ameritrade coming up, why diversification matters now more than ever cramer meets the moment next

what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪

why am i always going on and on about diversification it's because of days like today where the market is drenched in red ink but if you had exposure to the food and drug stocks, your portfolio had a few bright spots. wall street has a mechan manic s sieve mood right now everybody is once again afraid, afraid that the fed may have to destroy the economy to save it from out of control prices in a possible fed mandated recession, the best performing stocks of 2023 become garbage and the slowdown stocks, well, they suddenly become hot case in point. general mills the stock up more than 4% today alone. chairman and ceo jeff gave a talk today he traced out how mills is a leader not only in

cereal but pet food, snack bars, ice cream and makes up 50% of the business these categories have huge growth and blue buffalo is crushing it. customers are willing to spend more on pets than themselves that's what we're looking for. the foot category can absolutely keep up. it's one of the major causes of it and general mills said it will be up an astounding 14% this year. that's the last thing fed chief jay powell wants to hear but music to your ears and plus it got cost under control but digitalization let zoom out for a second. since the beginning of the year i investors chased down profitable and unprofitable they're expensive. at the same time they dump food and drug stocks because those are recession plays. they were confident the fed could prevent the full blown recession but home depot and walmart provided cautious times

ahead. over the night slowdown stocks came back on the fashion show. it's been agonizing for something like general mills or drug stocks until today. and that's what makes diversification so darn difficult. at any given time, you need to own stocks that aren't working but that's because what is working can change in the blink of an eye and it's moments like these where diversified portfolio proves its worth remember, diversification is the only free lengtunch in the busis we'll spend more time on this issue when the club meets in person in new york this weekend for an annual meeting because putting the other diversified portfolio requires the bravery to buy what is thrown out when it's at its most hated just this morning we had the charitable trust buy shares in johnson & johnson as part of today. got a good dividend and one of the least economically sensitive policies on earth. that's the playbook. that's what you need

as i said at the top of the show this isn't a great moment for the market it a difficult moment. that's exactly what diversification shines it's what you need when things get ugly diversification and a dallop of cash will get you through this it always does there is always a bull market somewhere and i promise to find it here for you on "mad money. i'm jim cramer see you tomorrow a trail for those who take their fate into their own hands by working hard... introducing batbnb. -blood-sucking bats. -[ gasps ] ...by working smart... this is called the coyotezapper. [ dog barks ] grr. aah! [ laughter ] ...by thinking big... armenti: not only do we serve your favorite foods, but we do it all on one sandwich. -no! -yes! ...and chasing their dreams. all i need are my black-belt business partners. greiner: my god. oh, my god. [ laughter ] so, sharks, who's ready to dig in? i feel the big one! i feel the big one coming! -- captions by vitac -- ♪♪