Earnings season when theres too much to keep track of and the action seems to stop making sense. The dow gained 46, the s p advanced and the nasdaq climbed up, you have every right to be extremely frustrated stocks that should be going up are going down stocks that should be down are going up human sacrifice, dogs and cats are living together, mass hysteria theres a method to that markets madness you need to understand it. Otherwise, youll have no idea whatsing if on whats going on a close investor is a bad investor so let me walk through some of the craziest examples. Im going to start with caterpillar. Caterpillar, the stock huge shortfall in response of course the stock correctly plunged 6 in Early Morning trading. Well, i thought it was a bit of an overreaction, nothing unusual about a stock going down in disappointing numbers is there its what happens next thats should we take our cue from this hard to explain. Cat down 6 and slowly rebounded. If you saw it near the low, this is a chart of texas listen youre a dope as the stock closed up more than instruments. The huge Semiconductor Company 1 , why . Last night it reported a hideous because this is not the same old caterpillar. Where a shortfall like the one shortfall, shaded down the that we saw this morning will forecast and sent the stock tumbling 4. 5 . Result in giant layoffs, you have to wonder if this is a suspension of buy back and maybe sign for the other chipmakers. A dividend slice this is the new caterpillar. Could Texas Instruments be a company shaped by jim ump bee another workday that caused a monster selloff and from the beginning of 2017 a lot are claiming that this is when he took over all of you a real bellwether. They have across the board see he had made it clear that he was done with the miserable boom exposure to the semiconductor and bust cycle that had made this one of the toughest sector if theyre in bad shape then industrials known and one of the everyone else must be suffering best shorts. Most investors didnt believe too. At least thats what theyd have him. You believe. How the heck do you make a the management kept hammering home its all about the macro, Machinery Company cyclical the pessimist and the trade war. Which came together to make the companys weary customers more he wanted a clean break with the cautious at first the market bought it past so when caterpillar slashed hook, line and sinker and they the forecast what does he do all rolled over, but today many he tells us the dividends is not in danger thanks to relentless of them shrugged off this cost cuts and the new cat makes companys short fall and more with less rebounded from the lows. I think that comeback made a lot if youre listening to you of sense and like i said at the top of the show, some of the can tell the moment when the bad things that seem unfathomable just arent explained well enough of course we cant just dismiss story turned good because when the analyst sounded befuddled. What this companys had to say last night it was wow, hey, this isnt as its a gigantic company, bad as it used to be this is the 15 billion in sales new cat. And this is a big but, sir mix a and i know, i was spooked initially. Lot but. Going into the quarter, Texas Instruments had been an but i figured it was the same incredible performer up 36 for the year when you look at the reasons for old same old that its because the company i was wrong. Then even caterpillar shared some monthly machinery numbers did everything in its power to which showed month to month stop being a semiconductor improvement. Just when you at least expected bellwether as eric johnson points out in the fax piece for it this new cat is the kind of the street. Com, Texas Industrial you can stick with during a downturn. Instruments was a winner because rather than worrying about cat i it moved aggressively to get off think you should buy in the weakness knowing youll be protected by the treadmill of cell phone that buy back and that dividend. Now theres also boeing. Components although it still has some in here i its no longer the be all boeing and end all. Okay the news from boeing, not as bad they diversified in automobiles. Theyre one of the dominant as it gets were seeing almost daily chipmakers for the auto revelations about the alleged industry they diversified into the industrial automation. They did digitization so Texas Instruments has made itself into more Cyclical Company than the wrongdoing behind the 737 max average chipmaker. Griers this was a brilliant fiasco but then they reported a nasty number this morning and theyre strategy because the industrial economy was just fine. Down 5 , down 10 , no, it went higher but thats no longer the case. If were headed into the worldwide economic slowdown, rallied up a percent these are the last businesses has the market lost its mind you want expo her to no, management said safety Texas Instruments is levered to willing, well see the 737 max whats uniquely not working. In the air sooner rather than these days i think we have later. Of course, its hard to predict better tells for vast swathes in the semiconductors when and i thought the headline look at Taiwan Semiconductor writer didnt read the Conference Call. What boeing said is that the 737 they were seeing real across max will be redid when the each product line. Taiwan semis is more than twice regulators say its safe which the size of Texas Instruments. Communication business is on might take a little longer even though accounting rules put it fire right now as is their d ram, they had to make a projection and boeing is still benefiting their commodity semibusiness or how about last night when a good from the fabulous secular trend testing measuring company talked thats been obscured by the headlines. The relentless rise in air travel only two companies on earth that can produce large quantities of about ongoing demand for 5g aircraft boeing and airbus. Infrastructure and they went into the total the Airlines Need these planes and no matter how bad the 737 beast mode, reporting a quarter max story gets, it is bad. That sent the stocks soaring a dozen points in after hours. Boeing is practically and meanwhile, we have plenty of look, this company is not a bun chipmakers that have montgomery trick pony got a major defense business and to do with Texas Instruments and nvidia going got hammered last they make plenty of other planes night but came back strong today. Plus its led by the that arent the 737 max like the incomparable jenson wong who was dreamlin named the best performing ceo by dreamliner the chinese need to pick up the phone and say, you know what, we want to buy a couple of dreamliners a month. Hbr magazine no, its not a perfect story we dont know when the we have seen this with amd and regulators will let the plane micron they rebounded today because fly again and boeing hasnt been theres not much overlap with able to get ahead of the bad headlines but for first time in Texas Instruments. That while you know what i feel like if i feel like after plunging as much as Texas Instruments did in the after hours lets say amd stock ended up losing just 15 cents. The press including me has gotten too negative. Micron stock closed flat i expect more ugly headlines, listen, all semiconductor more reports issued by Countries Companies are not created equal. Right now the winners are the where there were tragedies ones with less industrial but you know what . I think we may be through the exposure because were going into the worldwide slowdown. The moral of the story you dont h means we can go back to run from an amd or an nvidia, focusing on the otherwise terrific core business third is apple now, not that long ago analysts Texas Instruments is weakening you run to them because they turned and they turned horribly dont have if same customers against apple. As far as the less cyclical i thought of apple what did i think of, spam semis are concerned business is all right. Claiming the new iphone level is fine and just maybe as in the a bust, the chinese are going to case with lrcx, maybe its much better than we ever thought. Stick with cramer. Boycott the whole. And then they get steam rolled but apple has made a comeback. Tell him we need this merger. Last night, the terrific tech analyst shocked with a boost its happening. we should stop worrying about the potential short falls and just ok is not ok. Especially when it comes to your network. Focus on how much they can make at t is americas best Wireless Network from the new tv offering which according to americas biggest test. Everyone is poopooing now with 5g evolution. The analysts are best at the first step to 5g. Understanding the business and she says the new Service Stream more for your thing. Thats our thing. Could be huge. When apple reports next week whether your beauty routine is 3or 57,. Its possible the stock will make natures bounty hair skin and nails step one. Sell off its the number one brand uniquely formulated but theres a compelling case, own apple dont trade it for silky hair, glowing skin especially since theyre all ee and healthy nails. Natures bounty, because youre better off healthy. Biggest refresh cycling of all the lexus es. Every curve, every innovation, some of the more circumspect every feeling. A product of mastery. Analysts will say negative things and then the stock will lease the 2019 es 350 for 379 month for 36 months. Come down. The stocks got hammered that didnt deserve it. Experience amazing at your lexus dealer. Chipotle plummeted 5 today after an amazing quarter we believe in education built for all people. , when i look over that quarter i think youre being given a rare [woman] snhu was the best experience of my life. Buying opportunity here. And if brian niccol will come on [man] without snhu, i wouldnt be the leader i am today. The show he was on another show thats fine [woman] i graduated high school 19 years ago. Thats fine. I still finished. We all play together but when hes got a loyalty plan [man] in the military, ramping up, food costs going you feel that sense of accomplishment. Down including did you hear he thats what snhu is. You will march from this arena found another source for avocados hey, bar san miguel is getting and say to the world. I did it. [woman] you did it. Crushed by avocados. I love you. [graduate] i love you too. Not him. Hes got digitalization and or trips to mars. No commission. Whats not to like delivery drones, 11 same store sales sake and or the latest phones. Im throwing them at you no commission. Outstanding company line no matter what you trade, microsoft reporting an outstanding quarter. At fidelity youll pay no commission for online u. S. Equity trades. Outstanding is outstanding but how about this, when tesla reports a surprise profit its to the moon alice and thats doprevagen is the number oneild mempharmacistrecommendeding . What happened this evening i know the secret to teslas memory support brand. Success. Elon musk is tweeting and you can find it in the vitamin aisle in stores everywhere. Taunting less and spending more prevagen. Healthier brain. Better life. Time making teslas this is the most difficult part of the earnings season when the reports are overwhelming hard to make sense of the action caterpillar disappoints an roars higher, but it makes sense when you consider the expectations coming into the quarter and thta the Software Stocks back and after the bell, fantastic quarter. How about that servicenow with caterpillar. The Conference Call is better than we could ever hope for and the huge surge theyre talking about protecting wouldnt it be nice to have the group back the dind buying more its the last remaining group that hasnt been just bounce stock. No the market hasnt lost its back at all in tech. I like to say theres always a mind theres more going on than you bull market somewhere. May be aware of. I promise to find it right for you here on mad money. You know what, lets go to joe im jim cramer in new jersey. See you tomorrow take control of your caller mr. Cramer, thank you for having me on. My delight. Financial future with the new caller i currently own cisco mad money. Cnbc. Com systems since 2009 and im hearing a mixed review the exclusive ceo interviews from the analysts. I also heard that carol tomei even your own sound board. Plus, special access to mad money 101 with rules and from home depot is on board. Techniques to break down the market for all investors. Yeah, she may she joined the board, very good point the red flag that make mess caller yeah. Cisco just acquired cloud drop the stock immediately is its everything you need right when you need it cherry do i hold on to it the new madmoney. Cnbc. Com. Well, cisco kid remains a t, the American Dream continues. Friend of mine has it done well robbins doing job, yes is it dangerous to own i say buy buy buy buy listen, i know investing can sometimes get confusing. I mean, i know people who are confusing spam with apple. How absurd is that you can call me the easter bunny. But it opened. Thats eggcruciating. [excruciating] oh, wheres the straw . I love drinking spam juice you can ride it to and from the train station. Everyone knows that. But other times, during earnings i want to be the next scrub daddy. Stop the madness. Season it makes sense. Theres more madness uhoh. Its what we bank on and what we what are you sales . 20 bucks a month. 20 bucks a month . Oh believe. Heres a question. Big merchants are going to love this. Since you hitch the rails with csx well talk about the auto thats crazy. You are going to get crushed. Market dont miss the interview with the ceo. After the recent moves higher, in the space is it time to take first into the tank is a business that hopes to be a popular holiday tradition. Profits . It was a game of Musical Chairs [ laughs ] all with big ceo changes im talking to two in the mix. Sir mix a lot. Stick with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. Whether your beauty routine is 3 steps. Or 57, make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. Crisscrossing the country and connecting the cargo that keeps the economy rumbling on. Can this railroad stock weather the trade war and power year portfolio like a locomotive . You want to take the pulse of the any, watch the transports especially the railroads they have a better read on commerce than any other industry so when jim foote, ceo of csx said this economy is one of the mose puzzling was taken as a bad sign the business side of things is in much worse shape but not as bad as we feared they reported a surprising okay quarter. Even though they were down 4 . They delivered an Earnings Growth which translated into the heavy beat so despite a not so hot environment, they turned fantastic profit because theyre better, more efficient operators. Lets take a closer look with jim foote to learn about where the company is headed. Welcome to mad money. Great to see you. Really good to be here. Oh, thank you now, we were liked the railroads on the show but we felt theyre green. They use less oil. We know that they have very little Competition Among the other railroads so they have Competition Among trucks but we never expected was they were not cyclical that theres just an upward trend. Thats what i feel you have made with csx, how did you do it . You know, jim, we have been transforming csx for the last two, 2 1 2 years its focused on running the railroad as efficiently as we can. Using as few assets as we possibly can and the end result of that that which provide a much, much more reliable product. But were also able to pivot much better too when the you know, because the Railroad Business is the Railroad Business it changes all the time so we can move in any direction at any given time. Whats different, are you more on time, not losing cars all over the place are you telling customers that you can do x and then you do better than x . Absolute Horror Stories of the way it has run for years and years, not providing a very good product whatsoever for our customers. By focusing on again efficiency what we mean is in the supply chain n our logistics chain, there are so many unnecessary things that were done. Switching box cars here where they didnt need to be stopping and holding cars in a yard where they didnt need to be all kinds of work along the way that wasnt necessarily to be done in order to move your customers product from their mill to their customer, as efficiently and as reliably as you possibly can well were just taking all that unnecessary work and noise and activity out of the network. But im sure our viewers at home are saying, wait a second you mean they werent run in a common sensical fashion, why not . Historically speaking thats just the way that the Railroad Industry evolved more focused on running trains versus moving the customers cars through the pipeline, to their customers as efficiently as you possibly can do it. And that has made its so that csx is no longer the boom and bust operation that i had come to know it as absolutely. As you said, in what our quarter was last year, revenues down 5 . But expense is down 8 . Thats incredible now you have certain cargoes that i have always felt you were so linked to i always felt if coal went down, csx would be crushed coal is down big it doesnt seem to matter as much anymore. Well, coal certainly has its challenges associated with the price of natural gas with half being tied to the electric Utility Industry what we have focused on is the core franchise of csx. The merchandise business the chemicals, the plastics, the metals, the lumber, the paper. Big, big portion of our business the box car business as its sometimes referred to as, and thats where there is billions of dollars of opportunity for us for it to capture if we can do one thing and one thing only improve the reliability of the product our service that we give to our customers. All right sir, if there is a continued trade war, i would have to believe that theres no way csx can have great numbers if were going to be putting tariffs everywhere but again, listening to you i think from the efficiencies you can try to get over that. We have a fantastic franchise, jim we blanket the eastern half of the United States where twothirds of the u. S. Population lives as i said, with billions of opportunity, the Railroad Industry only has 8 of the 980 billion transportation market railroads used to have all of that, and they lost it why did they lose it by poor service. Running the railroad by the way we run the railroad today not only do we create greater efficiency but we create a much more reliable product that the customers want to use. Theyre using a truck today but theyre paying 10 to 15 more to do it. They pay the premium to buy the reliability. Now, you used to be in canada i mean, you cut your teeth there i guess in retrospect. But you have come down and look, i like csx but the csx youre talking about is like martians came down and changed it thats how different this is. This model the different way of thinking of how to do the Railroad Business was really pioneered on a big scale at the Canadian National and yes, i worked at the Canadian National for 15 years and now we took that company as you know which was owned by the canadian government and therefore not necessarily the best run railroad in north america. Right right. To clearly the best run a model that has proven that it works. So when the opportunity came to try and do things in that manner at csx and transform csx in a similar manner, i dont know how to run a railroad any differently. Well, let me give you an example of what i focused on ecommerce is maybe the greatest new wave of transport. I had felt that the railroads had been left behind because customers like amazon they want that precision are you in shape to be able to get some of that ecommerce business absolutely. And we work with many of the big the parcel shippers today. You know, we work with the u. P. S. Today which is handling packages and expects trust me, those guys are tough and they want precision delivery were doing that and we dont manage to train from terminal to terminal we worry about are we going to miss a sort . Thats how precise we need to be and were doing that today were doing that very well. Now, the old days i always worried the railroads an activist would come knocking and a bunch of them. I think you run it well, then they go elsewhere. Well, the recent history would show yeah, the activists will come knocking which they did at csx again, building off the knowledge that had been learned by the way the canadians had operated that and transformed csx through that process into what we are today. Number one, the safest railroad in north america the most Efficient Railroad in north america. And by most recent standards if you listen to what the customers are saying, we run the best railroad in terms of service and then factor in the sustainability of how much more fuel efficient we are than a truck. And therefore, 75 more fuel efficient. Therefore, 75 more environmental friendly how can i not be excited about what our sometimes pause we all know, how bad the roads are in this country. Gee, id rather be on rail than a road. I think so, yes. Well, look, it has been a great run since you have come in i dont want to denigrate the guys in the old days but this is a different, better railroad congratulations to you for everything you have done. Thank you so much it was great to be here. Excellent okay thats jim foote hes president and ceo of csx corporation. Maybe now you understand when you see a revenue number that may not be so great. Look at the earnings number. It can be terrific because theyre so much more efficient mad money is back after the break. [spokesman] if youve tried college but never finished, group cheering snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. As i mentioned at top of the hour, when you understand the wall street fashion show you can make sense of the perplexing action that haunts us every earnings season. For example, eli lilly got hammered down more than 2 and Boston Scientific rallied 5 why . Because this market is not willing to give Drug Companies the benefit of the doubt not in a moment when the democratic president ial candidates who are debating single payer and even the ones against medicare for all tend to be in favor of cracking down on them the medical Device Companies are much less hated. Sure enough the earnings season we have gotten so far its revealed some terrific numbers from the medical device plays. Not only are these stocks in style at the wall street fashion show but theyre underlying fundamentals are in fabulous shape. Let me tick them down for you, starting with Intuitive Surgical which reported fabulous quarter last thursday. You know Intuitive Surgical is behind the da vinci platforms. The idea here is that the machines get you in and out of the hospital faster and shorter hospital stays translate into more savings for the Health Care System isnt it great to have an icon come back as a machine like the pictures that we have of da vinci . All this point at this point, we have to say, they have so many robots now working in the hospitals that theyre making a fortune not just from the robots but from selling the consumerables that the docks use every time they perform the surgery. Da vinci meets gillette. And in march we spoke to the Intuitive Surgical ceo and he made it all out he laid it all out for us take a look. The way we look at it, were in the business of helping our customers which are hospitals and surgeons deliver for their patients better outcomes, better Patient Experience better experience for the Health Care Team and lower costs to treat. He also point out that the growth remains very strong and the number of procedures using Intuitive Surgical systems have increased however, a little over a month later there was a bit of a complication, new wrinkle. They reported a mixed report, earnings came in weaker than expected and management raised the full year procedure growth forecast they boosted the operating expense forecast when youre dealing with momentum stock the last thing you want to see is an imperfect quarter. In response the stock got blasted an they were in the 5 5al 580s and then the 500s. Fast forward to july, clean top and bottom line. But every time the stock tried to rally it rolled over and then the market turned against Growth Stocks in august its not until last month that this thing really started to turn now, thanks to a couple of positive Analyst Reports and some catalysts first a bunch of bullish presentations last month second, when medtronic launched their own surgery system, a big competitor, the consensus said it was underwhelming and that removed a major overhang forda vinci. Third, buyers were finally willing to listen to good news from isrg. Which brings us to the quarter they reported last thursday night. This time Intuitive Surgical knocked it oufrt the park. 44 cent earnings beat off of the 299 basis and substantially higher than expected sales the number of machines increased by 20 and management raised the full year procedure guidance to the 17 to 18 range thats the third consecutive quarter where they boosted this number. And at the beginning of the year they were only talk weak 13 to 17 a cherry on top, they cut their operating expense forecast the thing that everybody freaked out about in april this was a fabulous quarter across the board thats why it spurned 7 , rising to 566. What do i talk about now its come back now saving the 535 its back to 540 youre getting a big chunk for free i like this stock right here and putting most of the worries to bed rising cost of the competition and theyre showing us why we have always loved isrg on mad money. Now, the stock its not cheap. Sells for 38 and when you see they rose from 15 in the first quarter, 21 in the second quarter, 22. 5 in the most recent quarter i think its worth paying up for the best of the best sell off, gift how about the rest of the cohort i mentioned medtronic. Its not get egg much credit for its new robotics surgical system, but theres so much more to this company than that. They rolled out some major new products for spinal surgery. Theyre part of the recent acquisition of the Mazor Robotics thats like a much smaller Intuitive Surgical but the launch was light on details so investors ended up selling on the news i believe in the deal so i view it as a buying opportunity they trade at less than 18 times earnings back in january, we seemed to talk the ceo into recommending a stock. We were more bullish than he was. And the stock was in the 80s hey, sometimes you get you know, you get a little constructive then cramer fave abbott labs theres something you may have missed the day before that they announced the partnership with tandem diabetes the maker of hightech insulin pumps for people with diabetes tandems caught fire, theyre up 11 . Thats yet another reason we own it for the Charitable Trust and you can join the club. More importantly the company has promising stuff for Heart Disease and diabetes this stock is mispriced. Sells at 22. 6 times earnings miles waite runs this company. Abbott, terrific buy, right here and right now. Speaking of diabetes dont forget about dexcom. They make a sensor that tracks your blood and they have good stuff working with apple they have been a huge long term winner, one of our favorites now the stock what are hit hard over the last couple of months i dont like the tandems teaming up but i think thats enough room for multiple players in this space dexcom, a hundred points we wont give up now. Next this morning, Boston Scientific shot the lights out the medical device maker delivered a nice top and bottom line more upside coming finally theres another one that we have loved for so long. Getting love that it deserves. They revolutionized the heart valve replacements that would be install without cracking the chest cavities saves lives and money. The stock is surging today ive liked it for a long time. Bottom line, whenever wall street is skeptical of big pharma you get some nice outperformers in the medical device stock and one more reason to buy the names that have reported strong numbers like abbott labs, Boston Scientific and i think this market is eager to embrace the cohort. Why fight the tape when you can fight right alongside it much more mad money. John donahoe has big shoes to fill and does the sleloff dont make a move before you hear me take and then this nights edition of lightning round. Stay with cramer its earnings season. The Biggest Companies in the world are set to report. Were breaking down the numbers like nobody else its about performance. And opportunity what its earnings season on cnbc wagon . You know its an suv i know for fact your suv does not suck. Why is that . It aint got that vacuum in the back we got to go. Vacuum in the back, hallelujah hey, lately the whole cloud cohort has been eviscerated here and some of the stocks cant seem to catch a break. Take servicenow they automate and with back office jobs anded for years it was a huge winner thats why we but the market has turned against the group servicenow in particular has been slammed then the hits keep coming. Last night we learned the companys long term ceo john don al donohoe is leaving to take over nike. But wall street hates uncertainty an they preannounced some robust numbers. The revenue up 34 and it didnt seem to matter people just too freaked out by management turnover thats why servicenow tumbled 3. 7 originally today and then great numbers after hours. It gave you the full report and among other things we saw a solid bottom line beat have they reached the level where it can rally lets check in with john donahoe and then bring in Bill Mcdermott who is taking over your end welcome to mad money. Thank you. This quarter was just blowout and one of the things that really influenced my thinking was there had been some down beat reports that maybe cloud, service, had slowed down and it was harder to close deals. You came back from your epicenter of the world slowdown and youre seeing the opposite deals are raging well, Digital Transformation is a strategic priority for every company. If you cant compete digitally you cant succeed and servicenow is one of the core Digital Transformation partners for virtually every company around as you mentioned i was in europe and i met with several customers and several of the big partners. And they arent focusing on macroeconomics, not focusing on brexit theyre focusing on how can they deliver better experiences to the customers and drive real productivity growth and servicenow is one of the Core Platforms that enable all three. John, since i have known you and before the great frank sloopman your predecessor, i have seen this company go from the hey, i dont want to call the i. T. Department to the on Board Company to now basically some company thats going to be a huge player in Human Resources and is really a digitalization leader this is has all happened in the short time you have been with servicenow well, jim i inherited a wonderfurank sloopman that had enormous potential and my role over the last three years has been to try to bring us up into to the c suite and begin to pull us outside of i. T the reason for that is employees dont really care if the issues are i. T. Or hr or finance. Historically, software has been very siloed. Cross functional work flow is the wave of the future thats what digitalization enables so i have enough started to do that but our next ceo Bill Mcdermott there is no one in the world who has operated more across the major buying centers in the enterprise he knows all the software, all the functional software and all of the seams that exist. And theres no one in the world that has greater c suite relationships than mcdermott hell take this to the next level. Before we bring him in, you have been on the board of a company we revere. Your skill set may be unique to the new nike which is about digitalization and personalization. And technology. Well, jim, as you said i have a 20 year relationship with nike i have known phil and parker for 20 years and have been on the boarded for the last five. Its a company that has a purpose that i deeply resonate with i love sport and so my role at nike is simply to build on the incredible momentum that mark parker and that Great Company have established. Yes, theyre embracing Digital Transformation just in the way earn we were talk way we were talking about in a minute ago and im happy to contribute and in the next chapter. Lets bring in Bill Mcdermott, a fellow Philadelphia Eagle fan and a longstanding ceo s. A. P bill, first of all, congratulations. I think this is really important. But second, isnt this the time when servicenow has gone from sloopman the original guy to donohoe, who has taken it to the next level to becoming now a competitor, yes, with oracle and even your former company s. A. P. Yeah, jim, first of all, id like to acknowledge what a great leader john is and the wonderful job that he did at servicenow sets up the mcdermott era very, very well. It has been an honor to work with john, be his friend and also to meet all of the colleagues at servicenow what a company im truly excited and honored by the opportunity. In terms of the competitive profile out there, actually, jim, many of these companies should be considered our partners certainly s. A. P. The idea of servicenow is a pure play in the cloud, a highgrowth company. Solving work flow and business process issues for companies and the enterprise needs a company like servicenow who really cares. Cares enough to make work work better for people. Make it simple make the User Experience gorgeous and its so much opportunity for servicenow and im really excited to get started, jim. Bill, i see the Company Closed 46 transactions i know youre on the call i listened to it with more than 1 million in net new annual contract value. This is no longer a Small Cap Company or mid range company or even a junior growth are you ready to lead it to senior Growth Status or too boring for you because you have done it with s. A. P. . Nothing boring about servicenow this is the opportunity of a lifetime whats great about this point in my career is that i get to team up with a Great Management Team and an unbelievable Engineering Team and go to market team to really rethink the Customer Experience at mass scale so to have an opportunity to take servicenow to 10 billion and far beyond to make it the most admired Business Software company in the world is where the goal starts. So im fired up, jim ready to go. All right john, it has been bugging me, you know i love this cloud group and have been the biggest champion on tv and neil bush did say that macro conditions have made it harder to close deals i never want to slight workday or the others but youre not having that experience right now thats not what you see. Thats certainly not what were hearing on the customer front lines, jim were hearing that they have got to drive productive tiff and got to drive better User Experiences. The macroeconomics may go up and down over time thats a fact of life over time what were focused on and the real opportunity is technology is being used where its never been used before to drive break through experiences for our customers, for employees and drive unparalleled levels of productivity and efficiency. As long as theres a return on Investment Companies will keep making those investments and thats been the focus at servicenow. Well, gentlemen i cant thank you enough for come on mad money to do the handoff i know youll be around for a while. John, i have to hope to see you at nike. Bill, i missed you i thought youre doing away. Im so glad youre not john donahoe, the outgng coieo of servicenow and Bill Mcdermott, the incoming ceo. You cant beat these two guys. Mad money is back after the break. Man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Lightning round is sponsored by Td Ameritrade it is time. It is time for the lightning round. Byebye byebye sell sell and then the lightning round is over. Are you ready, skeedaddy kurt in idaho. Kurt caller booyah. Cramer im telling you you have game you have game. Whats going on . Caller you got that right. Im calling you from the home of the Boise State University bronco football program. Well, i have to tell you, got a strange looking field goal but a lot of pros. Whats happening caller we play on team blue buddy. Im calling you about exact sciences. I think the stock is under pressure the shorts is pressing it down i think its good. I would buy half here and let it come down though because theres a lot of pressure. To jeff in utah. Jeff caller skeedaddy. Right here. Caller yeah, Lockheed Martin no. Were not going to fool around with Lockheed Martin when we had the unbelievable quarter by united technologies. Tony in illinois tony caller from the windy city, thanks for all you do for the individual investor. Not a problem happy to help. Caller my nephew got me interested in wec, its thats Wisconsin Energy group. Its made he and myself some money over the last year my question is can this stock run again . I like Wisconsin Energy more than i like the university of wisconsin that i saw this weekend. Frankly i was disappointed in one but i like the other and im buying the utility and i think thats what you stay wait, were not done we have to go to john who i think is an old friend of mine from new jersey. John caller yeah, this is john from jersey city i was calling about snapchat. Snapchat, listen to me. I read through that call i liked it the only way to meet the pesky millennials is to advertise on snap it should be up, not down. I would buy some here and buy some more. One more lets go to warren in virginia warren caller hey, mr. Cramer booyah long time viewer, first time caller i like your opinion on amare oncorporation. We get a lot of calls on this one we decided it was a good spec remember what i said about the medical stocks periodically you get some good ones and that ladies and gentlemen, is the conclusion of the lightning round. Announcer the lightning round is sponsored by Td Ameritrade she helped me find the right bonds for my income strategy. Youre very popular around here. Theres a birthday going on. Karl he took care of my 401k rollover. Wow, you call a lot. Yeah, well its my money were talking about here. Joining us for karaoke later . Ah, id love to, but people get really emotional when i sing. Help from a team that will exceed your expectations. But in my mind im still 25. Thats why i take osteo biflex,