>> and lip trends for the fall. see you tomorrow, everybody. >> tomorrow's thirsty thursday. 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 cramerica. other people want to make friends, i want to make you some money. call me at 1-800-743-cnbc or tweet me @jimcramer. remember oil? remember how it drags down stocks when it gets hammered? that linkage came back today. the dow losing 53 points.

we've got inventory numbers that indicate we have oil coming out of our eyeballs. how much? total petroleum rose to 2.1 billion barrels. we're being flooded with crude from overseas and still pumping here. we've found a triple off the bottom. they've found out how to get more out of the ground than they could two years ago. in the last 18 months it should dazzle silicon valley. the reduction of oil consumption because of newer and more

investors must presume there must be slackening in demand due to a weakening of the economy. they never stop to think about innovation, technology. i get that. one of the things we've experienced this summer is the resurgence of things like housing, all because of job growth. however, in order for the stock market to absorb the rate hike, we've got to feel confident the economy's firing on all cylinders, don't we? there's no way we can fuel that if our best thermometer of the economy, oil, is falling out of bed. now i think the preoccupation with oil is positively insane. it doesn't take into consideration all the

while it's true you've had success in non-fossil fuel turners, they've been meager, and not the reason why the country's using 1 million barrels less than it did. it has dramatically cut energy consumption for buildings. how with innovations in airspace. airlines use an ind speak with oscar munoz about. amazing innovation has the ability to cut airplane consumption by 20%. or the lightweight ford and alcoa product which will amount in a decrease in fuel consumed by the pickup.

would have taken off those fuel consumption levels. that means fuel's going back to $40, and morselling will materialize in the stock market. i'm regarding this as an opportunity for some stocks, because i realize that technical down. where are these oil-induced pull backs create the most opportunities? the cyclicals. those are what got sold down the hardest today. and when we think oil weakness leads to economic weakness, that's what we sell. the oils in particular can not be bought at this moment, though, not after this remarkable run because the hot

it's incredible we have enough storage space in this country, right? what else is driving stocks down? lots of managers are doing badly. they want to change their fortunes, take matters into their own hands, but not too into their only hands. the sec doesn't like marking up. that's where money managers come in guns blazing. if you own the stocks, you can make it look as if your fund is performing a lot better, that's why the sec is all over the last

inflating before the bell. the markup happens three days before the end of the month. the sec scrutiny doesn't seem to go that far back. three days later, the jig is up, money managers are anxious to get out of these stocks. so they call to drill the marked up stocks down. they get a good opportunity. i know many of you don't believe this stuff happens. they saw them being marked up two days before and use that

than they could otherwise expect. finally, there's high multiplitis, that's my term for what happens when a high earnings multiple disappointments. that's what happened with palo alto get works. they reported a stellar quarter, 33% growth, dramatic increase in billings. the market loved it at first, however, if you were foolish enough to take action on that release as many were because the stock traded up $6 in after-hours trading, you got stuffed on palo alto's coer guidance in a way that implied a genuine deceleration. now that might have been okay if it wasn't trading at such a stratospheric level, average stock sells 19 times earnings. anything with a high multiple needs to beat and then raise its

they slashed the guidance, leaving analysts to cut their numbers. hence the 7% decline. i think we'll see the same thing happen tomorrow so the stock of salesforce.com, as it, too mixed projections. we will speak to the ceo later in the show and get answers to why they produced shortfalls in several key metrics that i follow. the whole day could have been a lot worse, but i've seen many of hit. at one point it looked like a pretty darn nasty day, nevertheless, giving the hammering of salesforce, and the expectation of lower oil price i think the selling could continue tomorrow. steven in new york. steven? >> caller: hi, jim. first time caller.

what's going on? >> caller: well, i own alcoa, they announced a one for three reverse split. how is that going to affect the anticipated splitoff? >> here's the deal. alcoa did that reverse split so the stocks stay above what they hope. and they're betting that the s&p, which keeps the s&p 500 will not kick them out because the stock pr i propensity to eliminate stocks that sell below $5 on the s&p. kyle in texas. >> caller: dr. cramer, love your show. under armour. love the company. little worried about the downgrade. i saw it's all about profit margins.

>> probably short term there's a hiccup. but, you know what? i think you have to take a longer term perspective with under armour. i believe in kevin plank. he's a very, very good proselytizer for the stock. >> now from som if you understand the inner workings, waiting for a red hot economy might work. oscar munoz is coming up. then, changes in buffalo wild wings. but before you slide in under the wing, you won't want to miss

ceo to decode and explain. stay with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail at cnbc.com. or give us a call at 1-800-743-cnbc.

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yesterday was a pretty crazy day for the airline contingent. some played musical chairs with their management teams. and was let go. investors lapped up this move sending you all stock 8%. it has spent most of 2016 being treated as a punching bagby the market and two activist firms that have been hounding these guys. so with its new management team

what it takes to send its stock higher? let's talk with oscar munoz who's closing in on his one-year anniversary at the helm. the other day, scott kirby came from american to you. he was let go by american, and your stock went up $1.2 billion. is that a metaphor for what people think he can bring to it? how can one guy move the needle that much. >> there's probably less than a handful of folks that have that level of intellect and understanding of the puzzle that networks are in the airline industry, and he's a great addition to the team, and we're glad to have him. >> some people feel he was brought on because there are still issues in terms of logistics and how the airline is run. you've been there for a year. there are metrics that have improved, but everybody can do more improvement?

transforming. grant card, our operations leader has done a wonderful, terrific job on time, baggage. you go down the list. we've taken a step upwards. the addition of scott and levy and heywood. linda jojo's new. he is the icing on the cake. >> what i find interesting, this is supposed to be the halcyon days. i don't know why the stocks sell at the low multiples, it's the lowest of any stock i follow. i have if to believe that the issue is we've seen capacity grow faster than demand, how can that change? >> well, it changes in many ways.

that we're doing at united. i think from my perspective, not coming from the industry, solving that particular solution is going to take someone that's had a lot of experience, with regard to things we've been doing in labor and the rest. >> if american comes in and cuts your price or spirit comes in, i thought we were done with price wars, oscar, how can we have price wars again? >> i'm going to stay away from the entire pricing angle. i think if you hearken back to the days of csx, i thought the market discipline that all the market players brought to the industry, i think that's a great example of what we have and will continue to do in the airline industry. >> let's talk about capacity increase. we get the feeling that at any given time the capacity can go

our viewers don't want that, but the shareholders want higher shares. >> we are market based, by and large and have to differentiate our product in many ways. pricing isn't the only one. >> how do you allocate your capital? market capital is $16 billion. would you be satisfied if you bought it $2 billion worth of planesor buyback the stock? it really hasn't done anything. the buyback has not worked so to speak. >> capital allocation is something that people there rise about all the time. what do we need? assets, resources, planes, we need to satisfy part of our shareholdeeholder gr at some point in time we get to a healthy place where we can announce a dividend.

strategic view of the world, i think you'll see a disciplined form of allocation the company's going to do going forward. >> we have too strong a dollar, people who are scared. there's a lot of fear in the world about going to europe. we have a competitive dynamic, that makes it so it's hard to have better numbers year-over-year. we have seen nothing but year-over-year declines. when n it works. it's a cyclical world. our job is to prepare for all sorts of the ups and downs, and right now we're facing a little bit of head wind with regards to the economy and fuel and those issues. that's why you put a great team together, a strategy that takes care of all the different cyclical events. when it pops up you're ready to go. >> you had activists come in. you had health issues, congratulations.

the new heart, but are they, are they satisfied with the metrics in the group or are they giving you a hard time on the board? >> listen, the board is still in their forming board. our new board members, preexisting board members. we may have the best board in the industry along with the best management team. so we're ready to go. >> from the standpoint of knowledge of the business, plus, other board members, a great mentor with regard to the things we're trying to do in the business. as we've recruited our folks, he has a level of insight and knowledge about the technical acumen, so we have the good fortune to have him help me interview some of these folks to make sure that beyond the leadership, they have the technical ability. >> what's difference between the

capital matters a lot. you have fractious labor situations. give me the idea on csx. >> it is indeed a very competitive industry over in the rail space. listen, i think at the end of the day, the difference is it is more of a people business at the airline. every day, over the course of the year, 140 million customers. and i need to absolutely inch gauge and create that. >> worried about zika? >> the miami thing has been a little concerning but contained.

decontamination of our aircraft. we hope it doesn't spread. >> traffic down in those routes? >> you have brazil and the olympics. but central america has been relatively soft, not necessarily zika oriented. >> oil going down, but a lot of times you get hedged, and you don't do as well as we think. >> oil is going to do its thing. it's volatile, and we will act accordingly. >> how about cuba? >> we've got daily flightst that's a great frequency. >> and business travel? we want to get a sense from you about how well this country's doing. >> the energy sector is hurting big. the banking world and consulting world continues at a fairly moderate pace, a little slower. it's summer, but coming back in september we hope to see the uptick we normally see when people get back to work.

coming up. >> on the top and bottom line it was an absolutely great quarter. >> cramer's got the newest data from salesforce after earnings. technology... say, have you seen all the amazing technology in geico's mobile app? look. electronic id cards, emergency roadside service, i can even submit a claim. wow... yep, geico's mobile app works like a charm. geico.

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after getting the stuffings beaten out of it for the better part of a year, buff row wild wings finally seems to have found its footing last month. the beer and wing stock has plunged from $200 at its peak down to $134. they started reporting a series of disappointing quarters.

it got to the point where it seemed like every time buffalo wild wings reported, its stock would get slammed because the numbers kept getting worse. the insurgence in the stock price as been remarkable. stock trading $162 as of today. some of the move is because of the company did indeed report better than the end of july. the main reason, an activist investor got involved. mercato capital announced that it owned stock. over the past couple weeks, mercato has been saber rattling. the activist firm appeared lack

what are we supposed to make of buffalo wild wings now that they have activists at the gate. more skilled activists do their best to try to unlock value. think of the tri ad partners. it can be a distraction for a company trying to get back on track. at mercato. after joining a coalition of investors, they took large stakes if sotheby's. they've advocated several strategies. sotheby's was trading in the mid-30s when mercato got

mercato's largest stake, their performance has been decidedly mixed as the fund sold off 40% of its position in the bank of new york earlier this year likely at a loss. part of the problem is that mercato tried to oust the ceo at a time when nelson peltz was defending him. i don't know, it seems like hitting single, not a home run. mercato owns 10% of good year tire and rubber. good year wasn't a good activist

it is a pretty big ask. so far i'm not seeing much that would make me think anything would be a buy just because you saw the name mercato involved. we learned of the 5.1% stake in the company. then it was reported that mercato had been having constructive talks with the company. then buffalo wild wings reported a mixed quarter. the results weren't as expected because the rise of chicken wing prices.

act together or mercato would make them or force a sale. they held the annual analyst day where the company increases buyback. and they also talked about multiple initiatives. still, the activists were not impressed and in response published a letter that they'd already sent to buffalo wild wings chairman. they called for the company to make substantial changes to its business practices, end quote. y talent at both the board and management levels. they want their own seat on the board and called for a greater focus on operational excellence, an urgency in follow through and accountability and managerial tools. and rolling out new restaurant concepts.

mercato's suggestions are a lot more vague. a focus on excellence? those aren't plans. they are getting companies to buyback huge slugs of their own stock. it is a small price to pay to get an activist off your back, ain't it? they did announce that $300 they have rallied 15%, 1-5, even though the company hasn't given us any reason to believe -- until we see some evidence of a turn around, i really don't care that there's an activist at the gate. let's go to robert in new jersey. robert, it's jim.

you got your lines crossed. this is cramer from that show "mad money." >> caller: i want to know about mcdonald's, i want to know if it's a buy, a sell or hold. i bought it with my grandkids to grow with them. >> i like the yield, i like what they're doing, i'm putting it in the hold category because the stock is in a holding pattern having a lot of easing jobs. let's go to tom in ohio. tom. >> caller: hey, jim, love your show. few questions. what's your outlook on domino's pizza, do you see it splitting? and i bought it at under $10. should i sell some of it off? >> you bought it when patty doyle came in. anytime somebody sells dominoes,

ought to sell a lot. and then you don't have to worry if the pizza comes with no cheese or banana peppers. eat the pizza, drink the beers. i don't care if there's an activist knocking on the door, i say sidelines. find out what a ceo reveals about a tough quarter. and maybe you heard september can be unkind to the stock markets. i'll reveal the reality. the lightning round. bring your best questions and stick with cramer. you're choosing more complete allergy relief and all the enjoyment that comes along with it. when we breathe in allergens, our bodies react by overproducing 6 key inflammatory substances. most allergy pills only control 1. flonase controls 6.

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after the close salesforce.com reported better than expected earnings but failed to meet some metrics i follow. projection, its forecast was indeed beyond expectations. let's talk with the ceo to find out why it missed projections. >> it's great to be with you. >> we've got to dig through the numbers. there's something unusual here. you have a, basically what i regard as being a top-line guidance raise, which is

but in the interim, some of the numbers that we see before we get the full year are not what wall street was looking for. they're a little disappointing versus what wall street is looking for. but is it 4x headwinds? >> number one, jim, let's look at the top and bottom line, where we have beat and, you know, on the top and bottom line, it was an absolutely great quarter, but, as you've pointed out, foreign exchange was just brutain not only did we have brexit, but the precipitous fall of the great british pound, and that dramatically affected our revenue. we've lost $150 million in revenue through this foreign exchange change. >> you don't necessarily want to

it is what it is. but when you say that next quarter non-gap is 2021. i see a lot of people looking for 24 cents, 3 cents would be more than what you lost in the currency. >> i think that what you see is that we have had a number of issues that we are working on inside the company that have been very exciting. you saw the m&a activity that we have done this quarter. that of course has weighted on our numbers, and yet, of course, we are delivering these great quarterly numbers. number two, we did have the foreign exchange situation that we just talked about.

second quarter. and these three things are giving us an appropriately conservative view for the third and fourth quarters. >> a lot of companies had not seen that in the hardware business. we haven't seen that in the software, you're the first to report it in this area. is it across industries or because some particular customers went elsewhere? >> no, i really think it's very specific to the very end of our second quarter in the united states, specifically, we saw a bit of softness. there's probably a number of reasons why we saw that softness, none of the reasons t significant. they aren't competitive. they aren't regards to other types of macro situations. it really has to do with our own execution in the united states, in the quarter at the end. and that is where we are right now. >> could that be related to the new acquisitions? because those are new, and it's not necessarily the same team. i'm trying to pin it down. >> they're not, yeah. >> it's an unusual situation toh ask you about softness in the u.s. because i'm only used to seeing

>> the numbers have been phenomenal this year, and, as we look at all of our regions throughout the world, you know, we saw europe really had great performance, asia pacific had great performance in the quarter. japan had a record quarter. and it was really just a bit of softness at the end of the quarter in the united states that is reflected in those numbers. going to come back or you wouldn't be raising the full year. what gives you confidence that the softness is going to, let's say, dissipate? >> well, we really just have had incredible through-put for the whole year, and, you know, i mean, jim, we should be raising a lot more than we are. it's really this foreign exchange situation that's holding us back, otherwise we would be blowing our numbers back for the second quarter, but we're not able to do that, because we have had such a significant depreciation of our revenue with foreign exchange.

close? or is it just a general weakness in certain industries? because you know we're getting a little more robust economy in the u.s. >> i really believe we see this now and then. it would have been in the software industry. but in a specific geography, i think it has to do with us and our own sales process in the united states, and i have a lot of confidence in the second half, our pipelines are really full of our competitive one rates are excellent, across the board, we just have had so much success. i mean, i look at, you know, one of these deals that we closed in the second quarter with uhg united health group, an incredible transaction, a nine-figure transaction, it's the third quarter in a row that we had a nine-figure

>> there's an amazing piece about you in "forbes". you're doing artificial intelligence. i look forward to hearing about that. linked in, social, artificial intelligence, what would you do with twitter? >> well, i have to tell you something amazing, jim, whicis what you said about the forbes article. we are going to start talking about artificial intelligence, the major driver for all of our products going forward. and we're going to reveal dream force, salesforce einstein, you're going to see it built into salesforce einstein and service einstein, and marketing cloud einstein and analytics

it is amazing what is now possible, whether it's machine learning, deep learning, machine intelligence that we're able to do today that we weren't able to do a couple years ago, and our customers are going to get that for the first time in october. >> it sounds like you do not need to do an acquisition. now you're moving and focussing on einstein and your new, well, platform so to speak. >> well, number one, you know, if you look at our m&a strategy, it's really been incredibly disciplined and focussed and specifically with regards to artificial intelligence, you know that we acquired a number of companies, spent about $650 million, put them together with 175 data scientists and created this salesforce einstein platform, amazing companies, whether it was relate i.q. or meta mined or implicity or others.

this fabric. that needs to be looked at independently with what is going on with linked in. you now what happened in the first quarter. their equity fell by 50%. it became a screaming buy, it really triggered our m&a committee on the board to look at that. we got excited. we made our bid for linked in. else that made a linked in bid higher than ours, so we did not win linked in, but those are really independent of what we're doing in terms of acquisition for innovation. and that was a very unique and special opportunity, obviously, it would have been extraordinary in terms of size and scale. >> all right, we've got to leave it there. thank you so much for coming on. we look forward to seeing you at force. >> look forward to see you at force.

"mad money's" back after the break. i take prilosec otc each morning for my frequent heartburn because you can't beat zero heartburn!

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and then the lightning round is over, are you ready, ski daddy! talk being about the lightning round, starting with jack in massachusetts. jake. >> caller: hey, jim, how's it going, big fan of the show. >> thank you. consider i'm just wondering, potash is talking about a merger. >> let's stay with that one. >> caller: looking for an a little insight on incyte. >> i think i would hold off for now. i think september could be a dicey month for stocks like that. stan in florida. >> caller: jim, i have a speculative position in a small

>> because you framed it like that, will i bless that idea, because that is ever speculative. let's go to mark in utah. >> caller: booyah from behind the curtain. it seems like it would be a good investment, because they're set up to export liquid natural gas. >> i can't go with it. the man who built the company is reason we got involved in it. no go back. glen in new york, glen. >> yeah, big booyah to you. i wanted to ask you about a company that deals with the shortages, international shortages of freshwater.

need to work on it. john in texas. >> caller: my stock is yelp. >> i like yelp's quarter. i think the stock delivered. when they deliver, they tend not to deliver only for one. and that is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. e my new but the rent is outrageous. good thing geico offers affordable renters insurance. with great coverage it protects my personal belongings should they get damaged, stolen or destroyed. [doorbell] uh, excuse me. delivery. hey. lo mein, szechwan chicken, chopsticks, soy sauce and you got some fortune cookies. have a good one. ah, these small new york apartments... protect your belongings. let geico help you

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why is september historically a weak month? average of 1% since the 1890s is a reason to be concerned, right? maybe not. let's start by asking ourselves whether 1%'s even a big deal. the answer is no. the down 1% is subjective in its own way, i don't think it's enough to warrant fear it seems to generate. the first thing, tech.

the months of july and august. this is called seasonality. there's not as much business being done over the summer. september's when we get confirmation that that's the case. but there's really two things in play. the stocks going into september tend not to reflect the seasonal slow down. in a year like this one presumes some positive bias. right now there's a wide-spread bef amount of business going on in tech. social, cloud, so these stocks run up going into september and enjoying a nice summer rally, they enjoy that. however, the facts don't support what the tech stocks have done during the summer months.

announcements that occur in the first week of september. i think it's a false sense of security that's not commensurate with reality. it could be harbingers of the coming months. so expect shortfalls. the second reason, we go down in and that's because while october's historically been a good month, there have been crashes in october. we have a disproportionate fear of a big, bad event. finally is when the big players come back from the beach, the hedge fund managers. you look at your books, see how you've done and where you are

we used to call september "locking in month." none of us would second guess. this is a pattern. the lock-in factor all show why the market often goes down in september. keep them in mind when we turn the page on the calendar tomorrow. they won't be mentioned in the stats even though they're really what drives it to negative numbers. particularly the annual tech disappointments that we see playing out already before september even ends. stick with cramer. the decision to ride on and save money. he decided to save money by switching his motorcycle insurance to geico.

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all right, a little jarring tonight about salesforce.com, i am so used to them beating raising and raising and beating and they didn't do that. so even though the stock has done nothing for the year it's

there's always a bull market somewhere. i promise to find it right here on "mad money." i'm jim cramer, and i will see you tomorrow! oh, my gosh. i am pet fied. >> we have up to 9 feet of storm surge. >> hermine is expect sunshine state tonight. i am going to create a new special deportation task force focused on identifying and quickly removing the most dangerous criminal illegal immigrants in the america who