that stock down by 50% buffett says right now the biggest problem facing kraft heinz is that heinz overpaidhen merging with kraft back in july of 2015 he said he paid too much and it will take time to whittle down $31 billion in debt at the company. >> you could reasonably be frustrated by under-performance and not have tension >> yeah. you can have disagreements with people or -- he said he's been a partner with charlie for 60 years. not that they agree on everything, but they never had an argument. there's been under-performance at kraft heinz as charlie munger pointed out in the may meeting, there were a series of deals. it was just the last partnership that was rougher at the time buffett said he could imagine another partnership with 3g. >>> let's talk about some news this morning iran slamming the trump administration over new u.s. sanctions targeting the islamic republ republic's people leader and other top officials. iran's foreign ministry says it amounts to permanent closure of talks. rouhani called the sanctions idiotic and accusing the white housefflicted by mental illness washi

buffett expressed sort for the incoming ceo of kraft heinz, miguel patricio, who takes over on july 1ststand by the reporting i mean, nothing says that buffett isn't friendly with jorge, but i will tell you the teams of the people who work for buffett and i think that 3g, there is tension not unexpected that said, you heard what he said, they haven't sold the stock, sara, which would speak volumes. >> a lot of other people have. >> but many people wonder whether or not they would ever do something together again. >> so the stock lost about 50% of its value over the last 12 months whether buffett and 3g are at odds or not, is not really the issue. the issue is this company cannot turn itself around people have lost a lot of money, betting on 3g, which was supposed to be this sort of miracle dealmaker to turn around this company just go to kraft heinz brands. velveeta, miracle whip, cool whip, country time lemonade, crystal light, capri sun, kool-aid, none of them are what millennials want now those are the complex foods of, i don't know, our grandparents, maybe you growing up. >> i grew

so at the moment we're looking at kraft heinz saying that it overturned nothing. nothing really insidious or worrisome in that investigation, so up 5%. >>> all right, usually when markets come off their best week in a year, you would expect some profit taking, right? red on the screen? we have the complete opposite in this final hour of trade. last week the dow, the s&p 500 soared more than four full percentage points while the nasdaq was not far behind, jumping nearly 4 president. all three enjoying their best week of 2019. ah, but there's always a but. this one comes from the cofounder of data tech research whoing observes that, quote, happy markets don't surge 2% in a day. worried markets do. so it's yet another session about to close out in the green, is this market really a worried market, or are we seeing happy markets? to our floor show traders. scott, to you first. you know, this researcher is saying last week's market was actually more manic worry, and that's what drove it. what do you see, happy or worried market right now? >> i see an erratic market, bu

$3.5 billion worth of options and compare that to some very well-known names that is more than kraft heinzi and closing in on names like mcdonald's and starbucks. let's take a look at the chart since the ipo. obviously, it's had a huge move. you may wonder, why is there so much open space in this chart out to november. the reason is because right now the options market is implying a huge potential move between now and then, about 60 bucks but here's the interesting thing. they're expecting that move basically to be lower. we've talked about this before in stocks right after ipos that have very short interest as beyond meat does the stock has become hard to borrow you could buy it closer to $100 to where it's trading right now if you used options to buy that is a warning sign if you don't own the stock i don't recommend going out and buying it now. another way to consider this is to take a look at this trade with the stock closing around $140 today, you could buy the 110/140 call spread for less than $15 when i was looking at that the reason for that was that these lower strike call options

that is more than kraft heinz.psi and it's closing in on names like mcdonald's and tar bucks see that starbucks. that's pretty remarkable it's had a huge move and you may wonder why is there so much open space and right now the options mark is implying a huge potential move between now and then around 60 bucks and here's the interesting thing. they're expecting that move basically to be lower. we've talked about this before in stocks right after ipos that have very high short interest as beyond meat does the stock has become hard to borrow and actually, you can buy the stock forward closer to a hundred bucks than where it's trading right now instead of going out and buying the shares. that is a warning sign so if you don't own the stock. i don't recommend going out and buying it now. another way to consider this is to take a look at this trade consider that with the stock closing around $140 today you could buy the 110-140 call spread and that's a $30 call spread for less than 15 bucks when i was looking at that th

>> shipping to staples has been a monster month for the sector led by names like estee lauder, kraft heinz, campbell soup, costco all up double digits in june but as a group helps push the market to all-time highs, jim cramer isn't sure if surging staple sectors is good news. take a listen. >> now, a lot of the stocks that are going up in this particular leg of the market are the ones go up when we're about to go into recession the stocks leading the rally are procter & gamble procter & gamble does not go up when the economy's on fire >> what do you think of p & g? >> listen, it was a great discussion by jim in favor this morning. i was watching that and i immediately started looking at procter & gamble this is a, you know, a stock that we know that investors have kind of just -- kind of just, i don't know, just run into this thing, you know. it's up 10% over the last month alone, but it's up 21% on the year it's up 58% from its 2018 52-week lows here, and here is a stock that's trading at record-high multiples, i mean decades-long it's trading about 26 times trailing, about 23 times forwa

kraft heinz says it's completed an swernl accounting investigation and changed its financl practices that triggered a regulator probe and stp decline in the food maker's stock price. they say they are taking actions to strengthennt internal ls over reporting. shares rose. >>> private equity firm apollo global is buyingal online dig photo services company shutterfly. t apollo is goi pay $51 in a share that values shutterfly around $2.7 billion. shuttefly was up more than 2% to $50.25. >>> and merck is buying tilos therapeutics. the acquisition gives merck control of a pipeline of cancer, fibrosis and autoimmune disease treatments. >>> amazon is launching a new credit card for prime mem with no credit history or bad credit. the card will be called amazon credit builder and it will allor to build up their credit through a secured card while getting perks like 5% cash back on purchases. what are the pros and the cons? well, greg mcbride joins us now to talk about that. greg, nice to have you here. >> thank you, sue. >> you eeknow, it as though it's a good idea for those who are, quote, u

kraft heinz has the look -- been the lowest since the murder and become a black eye for warren buffett'shire hathaway as they report on tuesday. growth story for wall street to follow, siena and tiffany's luxury jewelry also reporting this week. let's take a look at oil. -- the bearish bets on oil have gone up. thanks for that gloomy update. joining us now for more we have tribeca investment portfolio manager -- june, thank you for joining us. outlining the laundry list of things going south. we have a chart that shows us futures slipping below the 200 day moving average. we have the yield curve inversion, morgan stanley warning of recession within nine months, but these are reasons to be optimistic. june: what we are seeing is raising risks of this tariffs issue to have a real impact on the economy. so far we have seen a little bit but it could be more if mexico does get escalated quickly. if you look at the underlying fundamentals so far the earnings of the corporate steel doing quite well. china is disappointing but don't isget the trade conflict creating other issues. with the stimul

romaine: kraft heinz reports first quarter earnings.is all for what did you misstaylor:. joe: have a great evening. this is bloomberg. ♪ this is bloomberg. ♪ in sanmily chang francisco. coming up, a popular messaging software spikes in its first day as a public company. plus, apple makes simply to the white house, saying new tariffs will hurt its contribution to the u.s. economy.

this year january 3rd of this year sara, i don't know if you saw this research this morning on kraft heinzy eye. guggenheim comes out with a large long report that i have here here it is >> negative? >> it is neutral to be kind. but they're talking about -- patricio is going to take over they say he faces a monumental challenge, on a path to success as a stand alone company the analyst writing that as well, given years of underinvestment in its brands and highly burdened balance sheet at 4.5 times net debt to ebitda, company landed in a dangerous circle whereby the need to reinvest in its brands is constraining the free cash flow needed to deleverage and p pay the dividend we have been focused on this for different reasons. i since the failure of the unilever deal and the company has never been able to recover. >> or find a partner. >> and now the market cap is so much smaller i also would point out, there is significant tension and i've heard this from many people between warren buffett and 3g. they are not on good terms any longer and part as a result of the number of missteps unilever,

. >> caller: i'm wondering if the 6% dividend for kraft heinz is safe and if -- >> no, it's not safe they already cut it once when you've cut a dividend once -- >> sell, sell, sell. >> you cut it as much as you like all right, the president's moves aren't positive for business hey, listen, was there anyone that championed these business moves more than i did? if you didn't think i came out brave every night. cut my legs off. all right, just my legs, so what i find it dispiriting. on "mad money," after a tough few weeks, let's think about wingst stock and with news that vf corp narrowed its focus to three flagship brands how should you approach the stock even though it has china -- this china i'm giving you my take >>> could it be that the number one player for cash in portfolio? cash is king i'm focusing on what's ahead for brinks i wish i were being facetious. why don't you 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 mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc

there are plenty of packaged goods stocks that haven't moved at all hey, heinz, kraft heinz, there isne isn't that incredible? and they put these etfs together these stocks are so different. that's incredible. hershey has something else going for it the company is relatively new management team has been executing in a smart turnaround plan the last couple years and their moves are paying off i think this is important for you to understand, how did that stock get somewhere. i am not sure it's necessarily these levels. >> this is an instructional piece. there is a level where i'd be a buyer. i need you to understand the context of why stocks like this move so why would hershey's be on your shopping list in the turn around started in march of 2017 when michelle bach was made ceo. they hit a pfew speed bumps. rising cocoa prices, holy cow, to a general sense that the company was rudderless all of which conspired to keep a lid on the stock. those fears were not groundless. but the past year hershey has made a spectacular recovery with the stock 48% over the past few months how did she do b

wynn and kraft heinz which you talked about also among the gainers moving to the outside. chips it's interesting had a strong week over the last week they're up about 9% but they still have not recovered those big losses they saw in may and speaking of highs, microsoft once again on the all-time high list but there are a number of other tech names joining there too including mercado libre. let's head over to bob >> bertha, the dow is up 226 points at its height earlier in the day. but we've shaved 2/3 of that off. only up about 80 points. we did have most of the defense -- the trade names do very well throughout the day so semiconductors were wr a leader bank stocks generally on the upside, all off their highs, though emerging markets had a great day. mexico of course was up. no surprise there. but even turkey and some of the smaller emerging stocks did well china, south africa all on the up side. finally not a great day for the defensive names. utilities, real estate investment trusts, consumer staples all flat to slightly down there's the closing bell the dow jones indus

kraft heinz shares took a hit earlier this week when it was real re veeld that securities regulatorsing. and american airlines has extended cancellations of flights involving the grounded 737 max jet. that cancellation will now extend through at least september 3rd. american does say it's confident that new software and training for the jet will lead to recertification of the aircraft soon. >>> and opioid drug-maker insys therapeutics has filed for chapter 11 bankruptcy protection, the first opioid manufacturer to do so due to legal expenses stemming from opioid lawsuits. last week, insys had agreed to pay $225 million to settle a probe into payments that it had made to doctors for prescribing opioids. >>> let's get back to the merger of the morning and maybe even the month or year. united technologies' aerospace business combining with raytheon the company holding an investor call now morgan brennan joins us now with more morgan, you told us earlier this call is likely to hit on a lot of the technology investments and platforms. >> oh, yeah. >> is that the case? >> that is very much

and doing better than other food companies like kellogg and kraft heinz. cereal and pet food.30% market share in the u.s., key as a category cereal is not growing. but general mills is taking share. so it is doing well here, especially from top competitor kellogg. watch the north american retail segment and any rise past 1% or so for organic sales to see progress on that front the standout brand is actually cinnamon toast crunch doing especially well. pet food, general mills made a big bet buying blue buffalo in 2018, $8 billion deal, a bright spot for a sleepy food portfolio. that's what investors need to see. 30% growth or so as the company is still integrating this big deal and trying to take blue buffalo mainstream >> before the bell, after the bell tomorrow? >> before the bell >> general mills, keep an eye on that back to today's earnings they could restart shipments to huawei if they wanted. we'll have to find out if they will or not. that stock is up nicely, 10% higher we're out of time that does it for "closing bell. "fast money" begins right now. >>> that's right, it

some companies are good at adapting we've seen it with general mills and kraft heinz >>> let's get to today's closing bell data tracker. durable goods fell in may, versus estimate of a drop of 0.3% >>> overall mortgage application was up 40% versus last year, driven by a big up tick, lower interest rates ben is a global strategist, ben, how is the quarter tracking in terms of growth with all of these mixed messages >> in terms of the hard data, it's tracking reasonably well. we got 3% in usgdp it's tracking near 2%, so i think it wouldn't be unreasonable given that we think the trend is more like 1.5 to 2% for that to come down in the back half of the year. we would expect some deceleration from here, but in terms of what you're seeing, it's actually quite good markets having tooled back and forth. i guess the point is you could have positive news on at least one of those, probably two of them, but probably not all three of them, because the interrelations between -- of those three things, that's ma economists like to call a tri-lemma. so the guardrails puts you in the middle of the d

if i cost-cut you have a kraft heinz situation where you're going nowhere. the order of the day. i see a tremendous amount -- i see capital markets saying i want to get in on this. >> i want to ask you about some of the news today from amazon, they're getting out of the food delivery business, so competitive with the grub hub. what do you make of the fact that they're bailing >> let's be clear. they brought deliveroo which the largest in the u knchtsz remember with prime through whole foods, you can have your food delivered within an hour if you choose to do so. they're still delivering foods, just through those other mechanisms their effort at amazon fresh didn't really succeed for the last ten years there are some areas where i think they cut their losses and say we'll focus over here. what i make of it is this is an incredibly robust area nobody has figured out the financial model yet. nobody has figured it out. the only place it sort of works is when you combine them with a physical store so that the inventory, the supply chains can be merged. what i mak

demand in that key north american market it had been a winner this year, up 40% it's outperforming kraft heinzdirect competitors, especially in cereal they can't find organic revenue growth unlike the beverage makers and household product makers which have managed to turn it around through innovation >> there was hope for top-line growth you point to the fact that the stock has had a good year even with today's decline what was behind that >> the fact that it's had such a good year? >> yeah. >> it has a 4% dividend. and among the food producers, it has blue buffalo it paid $8 billion for the pet food maker 38% sales growth today as long as it keeps up the double-digit gains as it integrates that company and takes it a little more mainstream, that has been a driver of growth however, it's the core food business yogurt not turning around. cereal, better than kellogg, still a declining category salty snacks not getting it done that's the problem they have to focus on innovation they have to focus on marketing like so many other food companies. at the same time they have to keep their costs in lin

caroline: if they can put it in the rearview mirror, what lies ahead for kraft heinz now?et out from under the sec investigation related to all of this. the company is done but government regulators are not. end of the month, they get a new chief executive. miguel came over from anheuser-busch and will be running the company going forward. they still have to straighten out the results from the first quarter of this year. their timetable to get that done is by the end of july, so they have a lot of issues yet to work through on the accounting side. not to mention just straightening out the business and dealing with all of the concern that led up to the accounting charge, the $15.5 billion write-down earlier this year. caroline: dave wilson, always great to get your take on these things. thank you. let's go from stocks to bonds because it has become the darling of the fixed income market. how long can this continue? here's lisa abramowicz. ina: i want to look at bonds the triple v rated tier of grades. these are the lowest rated investment grade bonds. this pool has surged b

if i were investor look at kraft heinz, it is off 65, 70% from the all-time high.versally hated. i like stocks stocks that are universally hated. stuart: i don't want to see the stock fall out of bed. >> your cash flow covers it two times. stuart: i have a little bit of at&t. it is paying me 6% at the moment. is it safe? >> it is safe. stuart: loaded up to the gun nels with debt. >> most levered company in the world. randall stevenson has to pay down the debt. stuart: my mon sy is safe at 6% dividend? >> that dividend is covered 180%. stuart: ote are. o midstream. >> 10%. raised dividend. raised it 40% this year. stuart: the stock symbol is? >> a-m. apple, mary, george, you bailed yourself out. keep that voice. >> i'll do it. stuart: legendary player pete rose despite a successful career he can't get into the hall of fame because he gambled on the great many. does he think that ban will be overturned? i will ask him directly. he is on the show in our studio, 11:00 hour. pete rose coming up for you. >>> ahead russia tested a hypersonic missile. flies nine times the