plus kate spade helps the company expand into jewelry and apparel. coach believes they can generate 50 million in synergies after the deal closes and do many of the same things to kate spade, develop diluting the brand by participating in so many flash sales. coach's stock has continued to roof since the announcement, which tells you all you need to know about how the market sees this deal. still the stock is up more than 30% year to date but do you think it has run too much i don't think so coach's stock sells at 19 times next year's estimates. might seem a tad expensive but you need to understand that coach is a rarity in this business a company is rising same-store sales, rising margins and growth opportunities. coach deserves every penny of its premium. here's the bottom line, not only is the turn around in coach still very much on track the company is taking the come back it made, the expertise and applying it to kate spade, and i think that acquisition can fuel still another leg of this phenomenal rally you want to wait for a pull back before y

the other stocks like kate spade and ralph lauren are also up, but not as much as coach is.learly someone is saying out there that coach is going to outperform i think i may have said that kate spade, it's getting acquired, but kors is another one. clearly it looks like coach is going to outperform on a fashion basis. i've got told you, i don't know if that's the case, but if you have an ax to grind and you think that coach's handbags are better than the competition, it's in the stock, you can go ahead and buy it >> josh, what do you think of the handbags >> oh, my, i don't even know where to begin wait, did you just recommend a handbag? >> very conditional. i said, if you have an axe grind and you think coach is -- >> you know i'm all toomey, right? like, head to toe. >> now i do. micror microron, worst performing stock in the s&p 500 today despite strong earnings. >> it's remarkable when you look at where it found buyers today, literally a millimeter above that 50 day. from $10 to $30 since last may if you're still long this name, and you want to be long it, that would be

of a buy a $59 price target there they say the kate spade deal is a game changer this might be a little bit late of a call because coach has already implemented quite a turn around story but they say there's a lot of synergy between the kate spade and coach companies in terms of saving cost and not a lot of overlap in terms of customers and not a lot of runway. something coach has done for its own name sake brand which is also turn around and hit on when it comes to style and fashion trends coach is get a boost. >> the market already has endorsed that deal. >> it's a late call but still how many winners are there in retail and specialty products right now. >> seeing some additional buying in financials despite that weak pce number we got. we did get the tenure cracking 2-3 today. >> everybody was fixated on the yield curve and hovering in that 0.8% type range. it's up to 0.9 nobody's idea but it's definitely helped and it's no longer being squeezed down toward zero. >> right. >> i would argue that 90 basis points is fatter than 90 basis points when the ten career was at 4.5 or something

caller: hi, bubba, i'd like to know what it is on michael kors i think the combination of coach and kate spadeer and makes me think kors is a total loser. to tarn in new jersey. >> caller: hi, this is tarn in new jersey, how are you? >> great how are you? >> caller: great thank you for taking my call i had a question on cloudera >> i have to tell you, i didn't think the quarter wasn't that bad. a lot of people were stunned at the guidance i thought they were being conservative and already at a 52-week low. i'm tempted. a lot of negative involved reminds me of '12 and '13 we stuck our hand in the oven and we made a souffle. to chuck >> caller: hello, cramer, i have it on authority this company will have much stronger margins when they report out tuesday but over the last two weeks they rallied a bit. what do you think about fedex call options >> i like it but i, too, am worried. i thought we're going right into the quarter and won't quit i like your strategy rob in connecticut rob. rob? >> caller: hey, jim, how's it going? >> going well. hour about you >> caller: doing really well i absolutely

we have carera and we have some kate spade, what is this one i forget. >> this is tommy hillfigure. > >> we have some nice, options for men and women. you will see closer to fall that these styles will get a little bit smaller but right now they are big, bold, fun. >> we're talking about summer. you always think about light, airy and color white. >> yes. >> is that on trend. >> yes, so on trend. >> as you can see white sun glass options here this one is from bobby brown. we have one here from smith. if you don't want to completely commit to white if it is not something that makes you feel comfortable you can go with the brown here. we have a time hillfigure pair here where brown and whiteys integrated in the frame. you can still get a touch of the white and be on trend. >> right, because white want be intimidate to go do all white but just a touch of white. >> yes. >> really cool. >> i saw you try these on earlier and they are amazing. you have to try them on again. >> is this what would you suggest for me this type of shape. >> yeah, this is great because you know, again you don't ha

. >> you're referring to coach buying kate spade. >> it will be great.we break, i don't want to break, david -- >> we have -- >> illinois tool works. goldman goes from sell to buy. mea culpa. we didn't know the company was this good. had they watched us on "mad money" -- i rest my case. the prosecution rests. >> let's get to dom chu to see what he thinks is moving on the floor. >> good morning. as you talk about the idea that maybe some of the traders down here want some of that hawaiian punch or want some of the kool-aid guy busting through the wall to get some activity in the markets the dow is floating around the unchanged level. gains in the nasdaq composite a third of 1%. and the early sector movers again the day is still young. started off with financials, showing a little bit of sign of life. bouncing back from yesterday's losses. and you can see now we're back to flat again. health care though still showing some healthy gains up by half a percent overall and technology stocks to jim's point showing some relative strength. utility and reits so far

i think the coach/kate spade deal is fantastic. coach is doing so many right moves.ople in the industry i talk to cannot believe how shrewd that acquisition was. i think coach is an up stock accessories, you know, remember, we're seeing pretty good numbers from a lot of the companies that sell in to department stores even though i don't want to own the department stores. but i'm remaining convinced -- i'm going out on a limb here a nordstrom deal gets done and gets done in the 50s there was a note this morning, very interesting, inevitably going to be wrong. but still interesting about dick's that dick's should go private. look, they have lat of capital, they have a really good balance sheet. i can say that about kroger, i remember when that company -- well, that company has done a lot of good stuff for their balance sheet. i do not think that dick's going private. but i do think this was a stifel note very aggressive but i think nordstrom will do the job. if i'm a kroger people, we're not that bad. >> do you know how hard a business this is >> yeah. i mean, the boar