nasdaq also dipped 3.2%. first let me just say the single biggest buzz on wall street today, the most salient gut wrenching story is this shocking decline in the business in the stock of the iconic retailer that is macy's. while few people actually expected macy's to do well in an environment where the globe seems to be warming right in front of our very eyes, today's sharp selloff on some really bad earnings kind of took our breaths collectively away. as the chairman and ceo said at the very beginning of his really i think very disconcerting conference c cl, we had a very tough quarter. we are clearly disappointed with the 3.6% decline in comp store sales of owned and licensed businesses. and the 8% drop in earnings per share. we believe that the retail industry's going through a tough period that we seem to experience something like this every five to seven years or so. and this one feels familiar in that regard.

here's the rub. it may feel familiar in terms of the magnitude of the decline to mr. lundgren, but it isn't familiar when it comes to the reasons for the dropoff. the last time we had such a sharp decline in sales as lundgren talks about later in his conference call was after the fall of lehman brothers. sales just stopped back then. that was the recessisi and then morphed inin the greatest recession. we're not experiencing anything like that cataclysmic systemic event right now. in fact, this is what's so hard to understand. it's just the opposite. last friday we had the best employment report in ages. less than a week ago. we're seeing meaningful wage growth, again a first. unemployment belowow%. if you didn't know a a better you'd think it's time for the band to strike up happy days are here again. things abe so strong on the job front we can fully expect federal reserve to raise rates when they meet in december. how can they not?

a victory lap can be justified, even if i think it's unnecessary. plus, disposable i iome is on the rise and the stock market is not too far from its highs. lots of money's been made and taken off the table too. sure health care costs go up, but the out of pocket gasoline and heating bills are dramatically lower than a year ago. and that's l le a gigantic tax cut. also, let's not fofoet for all the talk that the fed has to raise interest rates, they haven't gogo up just yet. credit's'setting a little more plentiful according to all of the banking sectors i've spoken to lately. and i've spoken to a great deal of them. so given all the bountiful pocketbook positives, what the heck has happened here? how is a company like macy's, the country's largest department store chain, doing so badly in such a benign environment? come on, you g g to admit that's kind of paradoxical.

why do we care so much? that's simple. two-thirds of our economy is based on consumers spending. two-thirds of the dollars in our gigantic growing economy are going somewhere, and we if you and i, we, can figure out where since we know that money's not being spent at macy's at least the incremental dollars, we ght be able to nail l wn excellent investment opportunities. think positive. remember what i said last night, be an optimist and you'll make more money. let's start drilling down. figure out is the problem is it only macy's? has management lost it? is there something totally awry with the ceo terry lundgren and his team? i have to say unequivocally no. but terry was dispointed this morning on squawk and in the conference call, but it's not like this great merchant done so much to revitalize macy's over time has checked out. i can testify he's working harder than ever. second it's true that the weather's awful. way too hot for department stores like macy's filled with cold weather gear as you'd expect. it is november.

company was abject about the ed to discount aggrereively before the holiday to clclr this ventory. at's horrendous. it could leave the next quarter terrible too. t as bad as the weather is for retail, there is definitely something else at work here. i think the consumer habits have changed. and they've changed not glacially as they typically do, but with lightning speed. two years ago howard schultz, visionary runs starbucks famously opined what could be called the death of them all, , the end of shopping as we know itd. he talked about time constraints, technological breakthroughs, cheaper prices at more convenient venues and cravings magnified of course by social media were drilling nails into the coffin of the traditional mall shopper. the conference call was a total show stopper. i've listened to it three times because the numbers while soft that year didn't seem to fit th the dire thesis s sultz laid out. i wasn't sure if the man was right. turns out he was just a couple seasons too early because i

think every single one of predictions, every one is now coming true. here's what i want to do. i want you to take a look at these shoes. all right. i know they need a shine. but it's raining. these are your basic rockport oxford w wg tips which i've worn ever sinin i was a spokesman for rockport back in the late '90s when i could still do those kinds of things. i go through these shoes like leather chowed down by the hapless doon donner party in the winter of 1986. that's the headliner of the birthday party we all celebrate of course in absentia this very evening. and went to macy's to buy ththe wing tips. i'm flooding here if you don't mind. they were 120 smackers, but once they wore out i wentnline to find replacements. macy's, which has a decent website, featured them for $109. but then i went to amazon where i'm surely a member of amazon prime thanks to my executive producer who told me what a

$109 shoes for $101. click. and not just click on a desktop, click on a cell phone. round the clock shopping`right from this. and i sure wasn't going to go to any dreary mall for it. i'm shopping like a banshee. is it wonder amazon traded at an all-time high when macy fell back to where e was in february 2013? i don't think so. bricks and mortars ain't working. and macy's -- delivering alpha conference just this summer when macy's was a 72 that they monetized some of the company's real estate into a real estate investment trust, which caused further downside pressure when they gave up on that idea. physical plants still can't effectively monetize versus s amazon where i'm shopping right now. just ordering and ordering. second, the differentiation just isn't there. almost nothing in macy's is so

can't be bought somewhere else. it's a house of brands with brands too many places. many of them discounted hence the big declines in all the apparel stocks today. we have too many stores selling too many of the same product when you can get i iall on this thing any way. we know homes are rising in value. if the consumer's going to spend at retail very clear spending will be directed at spending their house. people view this stuff as an investment rather than expense. think home depot as the department store for this moment if not home goods especially with the faltering being endless source of customers. fourth, when consumers feel like splurging, they do it on a trip, not at the ball, a budget trip. we know for example cruises are booked solid, so are theme parks. consumer takes the show on the road not the mall. making matters worse for macy's. the strong dollar discouraged -- what you have is what's known as a secular shift away from the browsing mall shopper toward the

user of the browowr and cell phone who chooses among the most convenient offerings. it happened fast. it's happening now. and sadly at least for the moment it's not happening at macy's. or pretty much any other old line department store in the united states. my own personal mall in my back pocket. bill in ohio. bill. >> caller: bengal bears have buck eye but not browns. >> what's going on? >> sun ed son, recently missed quarterly earnings in a big, big way, but up on revenue and margins. given taken 85% haircut and they're actually up on -- do you think the selling's overdonene >> that's not a hahacut. that's a buzz cut. i think you're going to be calling that one sunset edison when this thing is through.

and that means it's a red flag. reggie in new york. reggie. >> caller: hey, jim. i wanted to ask yoyoabout cigna and all the health care insurers. they were doing great up until around june. and now all of them seem to be going down. and i don't understand cigna anthem promised to buy cigna out for $183 a share. >> right. >> and i bought somewhere around 163. now it's around 130 -- >> reggigi i got to tell you, , these are all in the grips of this fear about health care re-regulation and the democratic party and what they will do whether they'll block these deals or not. by the way, bruce, the technician for realmoney.com he has said this is a truly horrible chart. now, i know that we're not all charters, but i always like to be awarerehen you see a bad chart coming. and that one says sell, sell,

tom. >> caller: yes, jim. how does the stock market effect the price of silver bouillon. >> silver is uniquely levered to industrial uses, not just the precious metal that is gold where it's other than jewelry kind of a more ornamental and silver with thatatndustrial bent therefore comes under much more of the -- it shouldn't, i know, iron and copper, rubric, in other words being pulled down by the colex that is china. okay. is macy's losing its magic? it's losing it to this. the consumer is changing. the retailer isn't changing with her fast enough. just a sec let m morder five pairs of rockfkfds for nothing at amazon. "mad money" tonight, the name joss & main become a battleground lately. should you shop or drop wayfair right now? controversial. and you know who's single loving it besides me? not true.

chinese consumers. alibaba reported record numbers duringnghe the biggest online opping event. is there more to the story? and going beyond the bar code to help businesses stay on top of things. a hint, it looks like a zebra. stick 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 to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. laundry can wreak havoc on our clothehe ruining them foreveve sweaters stretch into muumuus. and pilled cdigans become pets.

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what the heck are we supposed to do with stock of wayfair? at's the online per r er of furniture and home brandnd of course wayfair brand which we will see in all the places i live or go to the beach at. here's a company that became public a little over a year ago and been one of the most contentious and at times visually hated stocks out there to the point short interest represents more than half of the shares trade in the open market. that's insane. of course ovov the summer wayfair hit with a very damaging report from this now noted short seller citron research caused

stock to plunge from 53 down to 33. plus the stock noted hedge fund manager largest short position he thinks it's going to ten within a year. earlier this week "new york times" reported brutal story with mention wayfair has been selling formaldehyde. wayfair keeps crususng the timates. despite the big decline the stock had been rebounding in recent months to point where it's more than 100% year-to-day. bears say wayfair has a terrible business model, they want to know if online retailer can compete with the om any channel plays where you can see how the furniture looks and return it in rson if you don't like it. wayfair responds by calling sales crazy. delivered some fabulously higher than expected revenues up 77% year over year. substantially more than anticipated loss than earnings per share side of the ledger. then management gave conservative earnings br interest taxes in part because

versus last year. instead of rallyingngn its totoand bottom, stock wawahurt 1313fall. today the market seems to be saying the stock's been pushed enough wayfair rebounded by little more than 5%. that formaldehyde issue seems minor i'm only going to mention so management can explain how small it really is in relation to the short seller case. who's right? the bulls who believe in this company's growth or the larger bears contingent who say it's hyped and overvalued. let's dig deeper with the co-founder, co-chairman and ceo of wayfair find out more about the quarter. welcome to "mad money." good to see you, sir. >> thanks, jim. thanks for having me. >> all right. have a seat. it's extraordinary that you could have such incredible success in the sales line and yet i know you've attracted attention from this fellow whitney tillson. first, let's just say give people t t growth here. because growth is the elixir of a market. >> absolutely. the growth is because customers love what we're doing and keep

customers. in the quarter we just talked about yesterday, the q-3 quarter we grew sales 90.9% in our direct retail business up to a $2.4 billion run ratat >> fastest growth of anyny retailer on our offline? >> i think so. >> no, that's my word. >> yeah. and it's on the back of repeat. repeat has accelerated. we keep getting new customers, more than we've ever gotten before. but repeat growth is really off the charts. that's what's making it all work. >> that matters because those customers are kind of bought and paid for so to speak. you don't have to spend money to find the new ones because they're already there. >> yeah. two thingsgsso one absolutely. that's wherehe advertising leverage comes from which was a big question people had about our model, does it work. now they're seeing it does work. and we knew that. now everyone knows that. but the second thing is honestly a retailer does well if customers love what it does for them. and the repeat whether they come back or not is the whole key to the whole thing. you can get them the first time with marketing. you can't get them t t second me. you u t them only if they really

valued what they did. >> that's why we use you, frankly, this is personal experience anecdotal versus impeer kal. many products you can find cheaper on amazon, who can live against amazon's dynamic price. >> so, the thing about amazon is amazon's an incredibly good retailer, but when you get into home -- and you know t ts. in home products are found through visual browse. there's the emotive piece, you want a unique item, environmental photography, the keyword search box doesn't really work because these are nonbranded goods. you can't type in duracell or bounty. how fulfillment works, logistics, all of this is different in home. this is all we do in home. and i think the thing about these short sellers like citron i think to be honest to a high degree they look for stocks they can knock around and make a quick buck or two. >> they know short position expecting a big secondary, expecting guys blow out of it

and make a profit. >> i don't even know if it's that. my belief because they basically open up a short position, they publish -- the research they've published to be honest i think if you try to get a job at a a respectable financial institution with this type of research i don't know you'd last very long. >> but they'reaying it's not profitable. you've been in business for a long time and not showing profit. >> i'll remind you, jim, we're 13 years on. not only were we ebitda profit nl, we raised money to launch the wayfair brand. for two years cash flow neg fif, 2013 back to free cash flow positive. in '14 we leaned in on the marketing proven worked in '13. went back and now all of a sudden in '15 right now we're free cash flow. we had 33 million of free cash flow last year. >> but you gave what i regard conservative guidance. said really it's the highlight. so it's entirely pososble this could be a year over yeaeabetter than you think. you're just a conservative guy. >> if you're in a $2.4 billion

run rate and direct from 64 to 81% then up to 91%, you know, you're going to have to give some range on guidance. and to, look, folks would love you to nail it down and tell them exactly what's going to happen. what we said is the quarter up and through the earnings call had been growiwi at a rate similar to last ququter, is what we said. >> right. >> but the quarter's back ended and we had a great holiday last year. so how are you going to predict it exactly? you're talking big numbers. >> right. but at the same time some of these guys are saying, listen, if you cut down the spin, the keyword spin, it will be overstock, which is not necessarily a bad thing and the company does well. it just doesn't grow like it used to when they decide to spend less. >> you know, i understand folks are gogog to take shots at our business. that's fine. they can stand and watch how it plays out. we're very confident. overstock spent more in advertising and growth decelerated to 11%. we spent less and percentage drop and growth accelerated to 91.

concerted choice there. >> formaldehyde thing i wanted to mentiononbut tilson will be out telling this story, this is not lumber liquidators. as soon as you heard one of your suppliers had some sort of laminate problem you pulled it. how many customers were actually effected? >> ten orders. >> we do a million in a quarter. >> ten million. >> ten orders. it's 0.02%. fact, we had already pulled the product even before the "new york times" who whitney tilson naged to get to write the story for him. >> i hear you. look, i don't blame you. it was when i read it i said how could more responsible could a company be than what you did. >> absolutely. we care a lot about safety. we have a lot of safeguards to mama sure all products m mt all feferal, all state, all cal laws. and we actually collect all this product safety data. so i think we're actually a

>> well, i mean, again personal experience says yes. but i think that does matter. but i want viewers to know both sides. it's really important when you see that biggest short position understand what the bears are saying and the bulls are saying. ceo and co-chairmamaand co-founder of wayfair, stick with cramer. is the consumer in the people's republic shopping more than ever? alibaba's ceo delivered some big news today. >> yesterday evening we crossed 86,000 transactions per second. >> what do thehe numbers mean for your money? amer declares the winners. 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 saucee

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what exactly do we want from china? do we want the chinese to buy steel? or do we want them to buy nikes? do we want them to buy coal or lattes from starbucks? would we rather have china consuming iron or iphones? is it better for us if they purchase aluminum or huggies and pampers. if you're hoping c cna will buy metals and renewable, we're in worse trouble. chinese production growing at 5% to 6%. and there are companies that can't survive unless that number goes back to the high single digits where it used to be, not the 5% or 6% level we sold

during the great recession. but if we want china to buy nikes and starbucks ananiphones, then the 11% growth in chinese retail sales that we heard about last night blows the record breaking singles day that totally made up consumption holiday blessed by the government that we're having right now. is the chinese equivalent of nirvana for american style exports. there's a lot of hammering about what it means for the global economy. but i think a loloof the fretting is let's say stupid if you're an american stock picker. no, it's not dumb if you work at freept which is in many ways a natural resource conglomerate hostage to chinese industrial growth. nightmare if you're running a u.s. steel producer because appears chinese are allowed to dump all the steel they want in this country. is there any other information for the pathetic stock prices for ak s sel and u.s. steel, have you seen those?e? you need this to see them. the coal stocks aren't just going to oblivion because of our government's war against fossil fuels. the chinese communist party has

also pivoted and is trying to wean its country off coal now that a million people are dying of respiratory illnesses every year over there. and while we hear about a deficit in aluminum, china is making more than they can use and keep trying to selelthe rest overseas. these are all bad signs for some of our basic industries. these companies have now lost their best market. but unlike say brazil, which is pretty much all basic industries, our economy is not about the basics. the other side of the coin though is that if you're in the business of making retail goods, remember two-thirds of our economy is based on coumption and service. the chinese let you sell them. and they actually enforce your intellectual property rights when you're a win ner this new environment, not a loser. that's why i'm heartened when i see chinese consumption. i don't live in brazil. i don't live in switzerland, which is another no-fly zone because while the communist party is indeed encouraging consumption to the p pnt where it's putting an end to the one-child policy, something seemed to come just in time for

singles day i might add, still doesn't encourage conspicuous consumption, like expensive swiss watches. but the united states i think we're net winner in a world the chinese are buying more finished product where they're going on websites and buying u.s. merchandise, where they're letting apple and nike and starbucks sell unlimited goods. who knows next y yr they'll probabab want everything sololin cvs or kroger or home depot. you think we're a loser in that case? hardly. we're the winner. now to be sure there are plenty of capital goods companies that won't do as well even though they're not basic industries, united technologies, they sell otis elevators, but they're not going to sell as many. caterpillars there in the crosshairs of the new china. truck engines and enennes themselves that just ant needed as much. what is china doing to american technology? we don't know where the government stands on a day-to-day basis. looking better because of a change in tax policy? case by case. we have to face facts our

consumption. if the chinese government wants to recreate their version of our economy, who can do it better than we can? bottom line look at it at a net-net basis. i can easily declare us the big winner in the global trade war except the us is a different set of winners this time than the early 2000s when chinese commodity peaked and may be downhill for years to come. ve in illinois. dave. >> caller: dr. cramer, the only city on the planet where bulls and bears play each seon. >> that's a very good point. and maybe i'll start cutler some day, but right now i'm starting cam. what's going on? >> caller: jim, my question is about yahoo on the alibaba component where yahoo holds a 15% stake. now completing $3.3.billion acquisition on the remaining 82% cf chinese video streaming

company, the youtube of china. jim, with jack ma's appearance on "today's squawk on the street" addressing future growth potential of the company and compelling single day sales at $14.3 billion nearly double the $8 billion last yeararmight these be important catalyst for the stock higher? >> no. it's interesting. thank you for the doctorate. yahoo and alibaba have very little to do with each other. they own a slug and they're going to sell the slug and rest of yahoo being valued at less than zero. which is why i ihink you cannot own alibaba, which is not the same as shorting, but you can't own yahoo if you know what i mean. kurt in minnesota. >> caller: jim, how are you? >> i'm all right. how about you, kurt? >> caller: good. let's talk ibm. >> sure. let's do that. >> caller: i bought ibm in the middle of october this year at about a buck fifty because it was at significant lows, off its all-time highs. sincncthen it's continued to get

and i'm wondering what the outlook is in your opinion. i'm looking at this as a long-term investment ten years and want to know what you think about it. >> well, ibm now -- unfortunately the stock with interest rates going higher because of the fed, this is my view a 4% yield won't protect you. it's like a 3% yielder when rates are low. here's the problem with ibm. they twice suggested that this might be a breakout quarter where some of the faster stuff is growing much better and not -- and able to offset the bleeding stuff. it hasn't happened yet. ibm is a show me stock and i can't get behind it until the good part crosses over and bad part diminishes. and that has not indeed occurred yet. and thth will tell you that that's the case. joan in new york. joan. >> calalr: hi, cramer. yes, i had a question. my financial adviser recommended i purchase wdc, he said for the long-term. i wanted to know what you think? >> what is he doing that for? does he know -- it's a disk

drive company for even sake. i mean, what does he know about it? what do you know about it? it's a commodity -- i once went to a toy store, guy selling toys, i said why don't you buy hasbro, a ten and went to 60. western digital was 60 and went to 10. you don't know western digital, how about like disney. any way, in this global trade where we're the winners, it's just a different set of winners than the 2000s and the ones winning then are losing now. much more "mad money" ahead. zebra techchlogies might be exotic to you but no stranger to the world'd'biggest companies, amazon, walmart, but the company just reported disappointing quarter. i'm going to take a look. then, i'm making sure portfolio is in check. companies i hope you know what they do, and the storm of stocks is headed your way.

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i'm lucky to get through a shift without a disaster. my bargain detergent couldn't keep up. so i switched to tide pods. they're super concentrated so i get a better clean. 15% cleaning ingredients or 90%. don't pay for water, pay for clean. that's my tide. we got to talk about this because the market's become absolutely merciless to the formerly high flying stocks come

optimal numbers, i don't think they are. ra, maker of specialal printers including thermal, label and repeat printers. ones with radiofrequency solutions and motorola, closed a bit more than a year ago. this acquisition was supposed to be game changer because made zebra game changer in mobile leading and bar code and data capture location motion management sololions, cloud based device management, the internet of things. now, initially zebra was on fire with stock roaring as high as 117 over the summer. but then in augustebra reported what people called a disappointing quarter and pretty much downhill since then. at the time management one-time problems but then zebra reported again yesterday. while the company delivered a strong 16 cent earnings beat off of a buck 23 basis, came in a tiny bit light. whwh matters is the guididce for the next quarter which was lower

8.7% yet. at these levels 12 times next year's earning estimates. at certain point you have to wonder if this has become a value play or too soon to start bottom fishing. let's take a closer look with the ceo of zebra technology. hear more about the quarter. welcome back to "mad money." >> thank you. >> we've got to solve this puzzle. i went over the conference call, listened to the conference call. i think there's a disconnect. not that i can get you to do a doover on "mad money," but i think there was some confusion on the call about exactly the synergies that you were talking about and the growth rate. because i can't get to 12 times earning. and i just want you to walk throroh, you're the heart internet of things. >> yep. >> i want you to walk through what happened in the transaction versus what the analysts seem to think is happening. >> so so far we've held the same long-term model in tact. so when we announced the deal we

said we expect to be able to get the $150 million of synergies by the end of 2016. and we'll get to an earnings model of 4% to 5% revenue growth and ebitdadaargin. and we've upped our synergy target but have not changed the model per se. >> that's where the confusion is. i mean, for instance when i was looking at what the incremental acquisition costs were, some people felt that you guided incremental acquisition costs you said the firm expects total $216 million but $180 to $200 million, now is that right? because e at confused me. >> yeah, so what we decided we wanted to do is give a sense from today what's left. >> what's left -- >> to have to happen. so it's not from the beginning. it's from today. so we said $180 million to $200 million including cap x to complete the integration of all the companies. so that is somewhat incremental to t t original target, but as part of that we also announced

basically 50 million of incremental synergies and we said that after we're done with integration we will also be able to gain greater efficiencies. we would have an i.t. system that's much cost effective and efficient, drive less annual ongoing cap x. and we will be able to drive an increasese5,200 basis point ofof gross mamain and 250 basis points of ebitda -- i'm sorry. >> okay. i typically don't go into this on the show because i think you're right in the middle. everyone knows you are bar codes, there's a fabulous video the website. it's a two-minute video tells you exactly how they're in the center of everything. i know it looked like to me one point on the conference call say on the negative side the complexity of the information technology systems had been greater than expected. it made me think, look, as interesting and as important as

the motorola acquisition was, maybe it was a little more difficult than you thought. >> well, i think we still feel very good about the overall transaction. >> you do. but obviously you have reservations in retrospect. >> only retrospect to the complexity of the i.t. integration. apart from that revenue is running very strong. the customers are liking the story. they are -- we are winning in the marketplace. and our profitability's good. >> we're lookiki at this nfl football thing b bind you. w, just want to back up get ththugh the forest from the indivivial trees. it really is true, y y are the market leader. there's really no one -- i know you mentioned some chinese competition or something. who are you really up against? >> well, obviously competitive market. there's many different players, but we are the market leader in three main product categories. >> right. and you're also, i think, when you look at the legacy business growing at 8%, enterprise 5%, then you got a 12 times earninin multiple, again, i'm trying to

puzzle ovevewhy your stock is where it is. and i've come to the conclusion, tell me if i'm wrong. >> yeah. >> that next year at this time a lot of what we're talking about now will be history and you'll be looking at the market leader in the internet of things that really is able to handle all of the mobile and -- all the mobile technology and cloud technology on a wand. >> yeah. i certainly hope that you're right. we feel very confident and very enthusiastic about being ablblto execute on the plan that we have laid out. and eventually i think the market will come around. >> do you think that the expectations are finally wrenched out? i know there were some people who got ahead of themselves because they saw this combination as being so perfect. do you think that's all gone now and everyone's pretty realistic about what you can do? >> i believe so. >> that's very important. and do you think that there's a possibility -- when i look over one of thehelides that you have e about all the different things you said chief synergies, execute integration, identify key areas for growth and delever will you be generating enough cash that i can see a much better balance sheet at this

>> yes. so this year we paid off $150 million principle. we said we're going to pay off another $300 million next year. >> you think you can do that? >> we believe we can do that. >> geez, a fast growing stock -- >> and $650 million the next two years. >> all right. i hope so. ceo zebra technologies. i urge you before you think about buying this you click on that video. you will see exactly what they do. you can't believe how at the heart of the internet of things this company really is. "mad money" is back after the break. wow mary, is like, every mom from the neighborhood here? look at them all... ...'judgie'. see? you are looking good! using bounce dryerheets is paying off. your clothes have fer wrinkles, and static cling... ...ain't bringing you down. oh! and look, it's that ms.brooke-thinks-she's-all-that- and-a-bag-of-chips. good thing you brought your a-game. your a-game.

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before we get to the

lightning round i want to take a moment to say how much i appreciated the chance to shake the hands of some american heroes yesterday. for those who missed it our studio was filild with cadets from the u.s. military academy at west point and veterans from other ends of the armed forces. pretty much everybody was represented. we were humbled by their presence. it's a highlight for me and our entire team each year. and to all those who have served, thank you. and once again, i'm going to suggest that people go to the world war ii museum in new orleans. it is maybe the most exhilarating museum i have ever been to. and we honor all of you vets out there tonight. and d w it is time for the lightning round on cramer "mad money." what's that abt? and lightning round is over. are you ready? it's time for the lightning round. cramer's "mad money," start with mike in illinois. mike. >> caller: boo ya from chicago.

>> what's going on? caller: will berkshire hathaway stock price rise? >> well, what we're going to do is we're not going to think short-term about berkshire hath ai way. we're going to own it. we like the stock. is it going up tomorrow? no, that's not the point when we invest with warren buffett. let's think years not quarters and months. let's think luke in washington. luke. >> caller: boo ya, jimim >> boo ya, luke. >> caller: s srit airlines. >> that was a tough one. remember that last time when stock was down 50 straight points and here i am still telling you to be in delta and if not delta then southwest air. they have better growth prospects. go to brian in new jersey. brian. >> caller: hey, jim. acp, buy, sell or hold.

other day. cut back, here's why, they raised the distribution, which is what made me encouraged enough to tell you to buy the stock, and then they didn't cover the distribution when they announced their quarter. and that is not what you do. still own some for the trust but it was very disappointing. please kel si come on the show and tell us how that could happen. it threw me for a loop. mark in kentucky, mark. >> caller: hello, jim. mark from kentucky. >> how are you doing? you must be lucky from kentucky. >> caller: blast our system -- >> no, we're not going to be. the trucking right now we're going to stay away from the truckers. this is part of the complex i don't like. by the way that expo just went up a great deal from when gentleman was on recently. let's go to mike in florida. mike. >> caller: first time caller. >> excellent. . >> caller: nice florida boo ya

to you. sin kronny financial. >> i think underowned and i think by the way a two-for. ge is not stopping at 30. it's one of the better active stocks in this market. maybe the kind of rolling bear market will end, and that ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade.le-action support for your joints, cartilage and bones in one tiny pill. move free ultra. get your move on. and now try move free night. the first and only 2-in-1 joint and slsupplement. americans. 83% try... ...to eat healthy. yet up to 90% fall short in getting... ...key nutrients from food alone. let's do more. add one a day men's. complete with key nutrients we may need. plus it helps support healthy blood pressure with vitamin d and magnesium. one a day men's. wait till you see what i've been doing. (laughs) i know, i, it just came to me. manscaping husband? get scrubbing bubbles.

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earlier i spoke about china and how it's effecting stocks here at home. it's really days like today when i want to make sure your portfolio's as diversified as possible so you don't run into any big problems. as china moves more toward a

consumer economy, the industrials are really getting slammed, which means you don't want your portfolio made up of just the industrials. as tempting as that was just a few weeks ago. that's why we play am i diversified. the object to be as diversified as possible so you can protect yourself from things like this in the market. tweet me, sorry absent today tweeting and tell you whether your portfolio is diversified enough. let's get the ball rolling here. first up to bat, we've got j. childers who says@jimcramer am i diversified, apple, twitter, sonic and at&t. well, no, the answer's no. okay. at&t is telco, sonic is restaurant chain, no one likes restaurants right now but when they do that will come back in vogue. apple's tech, intel's tech and twitter's tech. keep apple, but i want you to own apple, don't trade it.

put bristol miers in and then we're going to add a defense play that's my new thing because we're not the world's policemen anymore. make those changes we add. i'll feel much more comfortable with this portfolio. let's go to jeff in texas. jeff. >> caller: hey, jim. >> hey, jeff. >> caller: first thanks today. >> it's a big day. i'm going to be celebrated yesterday with our cadets, but today we celebrate everybody in the armed forces. my daughter went to the world war ii museum and that's a great idea too in new orleans. go ahead. >> caller: excellent. stocks in my account i've got apple, costco, ford, microsoft, exxon mobil, is that a good mix? or should i reallocate -- >> let's take a look at this. we could make some changes here. costco, man, my costco was good

this weekend. holy cow. they got those giant bears. very fitting for a fed rate increase. we've got exxon mobil which is the largest oil company. apple, well, you know own apple, don't trade it. microsoft, can't have them both. don't take this personally, i wear a black t-shirt anyway, but we'll keep the apple, keep ford automobile and what you really need place hold with the proverbial brisal myers so you get a sense you need a little health care. i like that portfolio. let's go to my home state. let's go to patricia in new jersey. patricia. >> caller: hi, how are you? >> all right. how are you? >> caller: good. >> excellent. go ahead, give me some stocks. >> caller: okay. disney, should i give you all five? >> yeah, i would give us all five. >> caller: okay. disney, starbucks, diamond rock hospitality, apple and alibaba. >> alibaba. okay. here we go. we got a lot of work to do here. boy, we got a lot of work today. that's what we're paid for. we're paid the big bucks because

disney, i like disney. i've mentioned it in passing the other day. bob iger going to get that team. alibaba is a retailer in china and apple this time we have no conflicts. apple's technology, that portfolio works. the only overlap is igor on the board of apple. that's not much overlap, i can handle that. i like that portfolio. well done. well played. wow, the game is getting harder than ever. take the points. stick with cramer. aleve pm. the only one to combine a sleep aid... plus the 12 hour pain relieving strength of aleve. be a morning person again with aleve pm. jill and kate use the same dishwasher. same detergent. but only jill ends up with wet, spotty glasses. kate adds finish jet-dry with five power actions that dry dishes and prprent spots and film, so all that's left is the shine. for better results, use finish jet-dry.

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i've been coming out here every night telling you retail's bad, apparel's bad. but i did not know it was this bad. at macy's quarter was a wakeup call. this is just not going to be a good holiday season until we get a cold snap. and right now there isn't one. say there's always a bull market somewhere. i promise i'd find it just for you right here on "mad money."

tomorrow. it's thursday, november 12th. coming up on "early today," the witch of november and this weather system is packing quite a punch. mother nature is also hitting hard init other ways, had including this fast moving brush fire. and then ann investigation into howti a man lost his life after officers discharged their tazers 20 times. fantasy sports websites fight back against the government. rn and one dad spent $77 millions on these gems for thiz 7-year-old daughter. "early today" starts right now.no good morning everybody. thanks for being with us. meteorologists call it the witch