Transcripts For CNBC Mad Money 20140916

Gained. 75 and the nasdaq also climbed. 75 . House of pleasure. What must happen now . What we have to ask, can keep this momentum going . What are the series of events that must unfold . How can the stock market continue to fly higher in the wake of its recent breather that ended today. Lets talk about what drove it down. The recent selling about the high Growth Stocks to take down as much of this redhot deal alibaba as possible, taking down being a technical term to get the red hot deal from a broker. As soon as the deals closed, as soon as the ipo Syndicate Managers let big funds know what they expect to get, did you notice the selling died down . The big funds know what to expect and they raised the cash they need so the alibabarelated selling seems to be at an end. Given that its been my principal worry for weeks now, im glad were past the point where alibaba and cue selling can hurt us. Now that the s p has built up over the next few week, what needs to any right to get us beyond these levels . Was this a deadcat bounce as so many people told me is what can convince us that were seeing a rotation out of some stocks and not a top for the entire mark as the the chatter had really resonated with me about . First, we need the fed to do the right thing tomorrow when it releases its statement of intent. Who the right thing . How about if they say, look, guys. They wouldnt say, look, we are data dependent around here. Were winding down our bondbuying program to keep rates lower, but we recognized that recent employment figures have not been strong and the rest of the world isec whattening. So we must stay vigilant to keep the economy on a growth track. In other words, entirely dodge this considerable language which gets away from the concept that the fed wants to raise the timeframe and any strategy that puts us on a course without paying attention to recently slowing data is fraught with problems. It it tells you where the economy is going and its not up. How do we know that the Second Quarter growth will be at the peak of the Business Cycle especially with the Affordable Care act. It wont be the peak as long as the fed refuses to tighten just to appease the Hedge Fund Managers who argue that we may need higher rates for the good of the country when these guys have made big bets against rates staying down and theyll need them to make their quarters and theyre right out of their business. Success. We need the alibaba deal to come and go without any ridiculous know. How about five to ten points above the final boost and not something that takes it to 90 or 100. At 100 its selling at 40 times earnings which grows less quickly and doesnt have as big a runway as alibaba. The top you will callers will be out in force if the stock opens north of 90. Regardless of the fact that 90 would be down the line. A smooth opening with a nicely done pop of sorts would be terrific for the stock market. You can only imagine the chatter of internet gone wild, a company by comparison to the year 2000 and the tsunami that the market still hasnt recovered from. Lets just write the headline now. Im going on say, is it 2,000 all over again . Investors ponder the cliff once more and we have an article with prudent bears that remember the traftesties and freely regurgitate them. Third, we need the bondbuying program that starts this week to stabize the euro and not buy it down this year. You have a strong euro only if people believe that the growth of the continent can come back from this program, if they do and so muches any right in commodity land where strong dollar means wacher commodities. I know that should be good, but listen to me. A weaker dollar and a stronger euro sends them higher. The declining price of crude that we have as a signal of recession, it would be a counterintuitive welcome sign that the worlds economies arent falling off a cliff. Oh and anything that indicates a deal can be made with the russians would be a hugely possible, a peace pact to allow the warrior present to focus on isil and not spread them out so loudly and thats a judgement call and i dont know how much judgment is being used and dont underestimate the power in terms of negative behavior for the stock market. The estimates will go lower for the vast network of Companies Involved in the oil and gas renaissance that we talk about in the show. Given that the growth oils are the bioteches that have 20 to 30 growth. Losing them could be critical to the direction of the stock market. They wont be lost if 92 turns out to be the bottom if crude. Theyll be fouled. On top of that, weve seen pronounced weakness in exporters and not just the industrial ones. I dont think the industrials could be saved easily because theyre so in29ed in china and emerging markets and not so for the Consumer Product companies and one look at the rally at mcdonalds tells you its the dollar that might have peaked short term and not that sales have bottomed and its the dollar thats why Procter Gamble has been so strong to the weaker dollar is great for proctor and these suddenly look good because the possibility that the dollar is done going up for now and this might be the right time to buy one. We always like to see the momentum continue in the Retail Travel and restaurant names. These are more about the lower price of gasoline and natural gas which aims to a tax cut for the consumer. We dont need to see gasoline lower. The job is being done as you can see from the numbers that disney and marriott and Cracker Barrel and brinker are putting up. Theyre all signaling to consumers are being reinvigorated by lower prices. It it isnt zapped by Rising Health care costs. You see money is coming in to the Money Managers of the world and not going out. I point to this particular fact because once the alibaba deal is done, unfortunately, it will be a flurry of other huge ipos that will sop up the cash and 20 and 30 deals like uber. Theyre all in the hopper, people. You just havent heard of them because of the dim surrounding alibaba. Well keep seeing this choppy action that is so disconcerting to you. Just as important as new money in is old money out. We need to see the mergers for autoparts maker trw from the german company, stay in focus and we need the activists, and are responsible, rightly or wrongly for a lot of the positive action. Let me give you the bottom line. We had to get alibaba in the leadup to this ipo i said would be extremely negative for the market and only if most of these issues break the bulls way. If they dont, were going to have a very long stretch of fearmongering and faltering fundamentals to exacerbate the gloom. John in illinois. John . Jim a st. Louis booyah and thank you for all the money youve been trying to help us make youre welcome. Wanted to ask you about alcoa aluminum. They just signed a 1 million deal with boeing and now we come out with this Public Offering with the 25 million depository shares and i just wondered what alcoa would be going. Let me explain about alcoa. I happen to think that alcoa is doing incredibly well and theyre doing the right thing. I dont want a lot of new debt and i think that this situation. You want to own alcoa. You want to own alcoa and you prefer that they have a bunch of different securities that i suppose could be good. This acquisition of aerospace, because im a huge believer in the aerospace cycle. I think the quarter itself could be good. The stock has doubled and remember, there could be profit taking and that is a real chance to buy. Mary in texas. Mary . A big booyah, jim, from the texas hill country. Excellent. Whats up some. I would like your opinion on glaxosmithkline. Gsk. I love the dividend, but its received a downgrade. Im concerned. The pipeline is murky, but i think they can cover the dividend and theyve knot something new that makes it so the dividend will make it so youre being paid to wait for that to occur. I like glaxo. I think its a buy. John in california. John . Hey, booyah, jim this is john from san diego. What do you think about the robotics . Do you think this is a good long term stock . You know, i saw that action today, and i said, oh, come on, man. You know you know what . Lets just do this thing is way too hot for me. Let me do a real workup on it because when i looked at it it today and i said come on, youre kidding me. It doesnt deserve to be out there and maybe they have a mobile eye like situation going and ill do a segment on that one. Thats how attractive that is. Can we keep the momentum going . Todays rally, it could be build for one, but only if things break the bulls way, if not, things may be pretty gloomy even if alibaba makes you on the deal. You never know when the next big investing idea will hit you. An entirely new way to fight cancer and wait until you hear where i found it. Ill put it under the microsc e microscope. Is that about to change . Plus, we are just days away from getting our hands on the iphone 6 and the 6 plus. Apple is poised to change the way you pay for things, but is it all that secure . Ive got the ceo of lifelock ahead on the launch. Stay with cramer. 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. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. If you really want to be a great stock picker you have to be willing to read, and im not just talking about reading the business section of your favorite newspaper or the transcripts of quarterly conference calls. No, truly terrific investment ideas can come from anywhere which is why it helps to have eclectic taste, when i say anywhere, i mean anywhere, even the new yorker, and even the best pitches for an individual stock ive seen in my life im. Im talking about this article, the transformation, is it possible to control cancer without killing it . Its by dr. Jerome groopman. What i think you should take away from it, let me give you Jerry Groopman, and ive known him forever. I think he might be the best of breed in both. In this piece in the new yorker which is in the current edition, groopman gets in a major theme thats driving some of the favorite biotech stock and he starts by focusing on a type of cancer known as acute myelo genous leukemia, its usually fatal and less than a quarter of the people with the disease survive more than five years and he mentions an experimental treatment called ag221 being developed by a Company Called Agios Pharmaceuticals, and ill spell that, its agios. Agios pharmaceuticals and the trial incredible drug this is producing even in the early stage Clinical Trials is mindboggling. This ag221 is one of the new breed of antitargeted drugs. Rather than being designed to destroy cancer cells like chemotherapy, radiation or surgery it changes the metabolism of cancer cells. Potentially rendering them harmless. Specifically, in about 15, 15 percent of patients with it, it produces a particular enzyme. It targets that enzyme and the results so far have been staggering. Ag 221 is only in phase one trials. Those are really early and those are designed to test the drugs safety and not whether it works and let me read you an excerpt from groopmans article. Writing about this trial groopman says of the first ten patients who have been treated, three had died from their disease before the drugs effects could be evaluated, but the data on six of the seven remaining patients are striking. Five have come into complete remission and one entered a partial remission. Patients with progressive aml have never improved so quickly and definitively and they were confirmed by a second larger study in france. It is having so much success with ag221 that this past month they targeted a different mutated enzyme. One which occurs in 10 of patients with aml. It also occurs in 70 who have a certain type of brain tumor called a glie onlia as well as showing up in 50 of the people with cancer of the cartilage. The prospects for ag120 could be much larger than the subset of leukemia patients. First, its so encouraging that were making such strides in the fight against cancer and seconds i have to recommend agios pharma especially since the stock has done nothing since groopmans story came out in the new yorker. Ill bet the stock would have rallied huge and instead, its barely up. We are always trying to stop the investing imperfections on mad money and this article in the new yorker, not wall Street Research is certainly one of of them. I told you to buy agios in july 2013 and i heard so many good things about it and the company came public at 18 and the stock rose 74 on the first day and unlike any other biotech in the third period its up another 42 and what does that tell you . Agios has had a huge run, given that its in a Development Stage biotech that doesnt have a single compound and let alone phase 3 Clinical Trials and that said there well could be more upside, and agios is the leading player in the player of cancer metabolism and targeted treatments that older cancer cells to make them less harmful. Like i told you earlier, it has an early stage pipeline with 221 with acute myelogenous leukemia, even better, unlike so many early stage biotechs, agios has a pristine balance sheet. Thats because in 2010 they entered into a partnership with celgene. As part of the deal celgene funds the companys Oncology Program like ag221 and ag120 in collaboration with celgene. Times the partnerships with a tiny company and a gigantic one could be onesided. You dont get a solid royalty so onno what could be a multibilliondollar oncology plat form. Not only is celgene their partner and it it believes in agios so much that it has 6. 7 of the company and yet it is one of the largest shareholders and it comes to identifying the compounds and thats probably the best well is and its using the metabolic know how to develop drugs for what are known as inborner rors of metabolism. There are no effective treatments currently available. For example, the leading orphan drug program is a treatment for pk deficiency and its a rare disease that causes the the breakdown of rare blood cells and it could move into phase two studies by early of next year and will be years before they even come up for today approval and agios is the kind of stock that trades on catalyst, not earnings and cash flow. The company presenting new data on the drug at the American Society of hematology conference in early december, which i think could be very positive given what Jerry Groopman says in the article. Here is the bottom line. Sometimes the best ideas come from the strangest places. The best investments come from weird, different, out of the way situations and im talking about a terrific new yorker article by dr. Jerry groopman. This piece made me combae buy agios farm a hand over fist and the speculative biotech and while the data has been very positive there are all kinds of things that could derail the story so its not for the faint of heart and if these test results continue how can celgene not snap up the rest of the company. Brian in delaware. Brian . Jim, how are you doing . Beeia. Booyah. I have genentech . That company has been around forever, and ive knot got to t you one day it will hit pay dirt and its the speculative situation that i want you to be in and not want you to run from, but i do want you to see and it is important to point out the stock ran very big today and i dont know why. So i have to do more work on it. When the stock runs big like that i cant say dont worry about it. I have to check and that seems like something interesting. Jo lets go to john in california, please. John . Hi, jim. Booyah to you. This is john from laguna niguel, california. Thank you for calling. I want to thank you very much for your guidance and ask you about tesoro. As you know, recently it has been going down and i own quite a bit of that and i dont know whether i should keep it or sell it. Its totally a speculative situation and if you own a lot of it thats just a mistake. You just dont want to do that. You want to can cut back on that and these are speculative situationses and that could be a dangerous situation even if its good. You can find ideas everywhere, and im really always, and this is the theme of mad money kwem Agios Pharmaceuticals could be an interesting speck investment and you can read the article before thinking about buying it. Theres plenty of mad money ahead including the breaches which companies are taking it on the chin and which could be in high demand. Ive got the scoop and then from the growth in china to the concerns in europe, in this overseas situation there will be winners and losers, ill point out the weak spots and alert you to the one set of stocks that are poised to triumph in the turmoil, but first amazon and apple and the charts say one more rally and the other could be in danger and find out which one is which. Stick with cramer. Theyre custom made trains. You cant get any better than that. Siemens trains are not your grandparents technology. Theyre something thats gonna change the cities we live in today. I find it so fascinating how many people ride this and go to work every single day. Im one of the lucky guys. I get to play with trains. People say, wow, we still build that in the United States . And we say, yeah, we do whos going to make it happen . Discover a new energy source. Turn ocean waves into power. Design cars that capture their emissions. Build bridges that fix themselves. Get more clean water to everyone. Whos going to take the leap . Whos going to write the code . Whos going to do it . Engineers. Thats who. Thats what i want to do. Be an engineer. Join the scientists and engineers of exxonmobil in inspiring americas future engineers. Energy lives here. Wait, wait, wait, its wait, wait, wait. Whoa, does she have special powers when she has the shroud . No. Guys . Its the woven one the woven one. Oh, oh that gives her invincibility. Guys . No, no, no. The scarlet king is lord victors son no dont. I told you you guys are gonna be so surprised when you watch the finale youre so lucky your car has wifi. Yeah. I am. Equinox from chevrolet. The first and only car company to bring builtin 4g lte wifi to cars, trucks and crossovers. In a moment when pretty much each and everyic to out there had been under pressure until today as Money Managers raise cash for alibaba for the ipo later this week, i think its worth examining which of these household names in theec group are worth buying here and let them go lower. Thats why tonight were going off the charts with the help of carolyn broad in. A brilliant who runs fibonacci green light. Thats apple and its amazon. First check out apples daily chart. Apple did nothing yesterday despite really hugely positive news about preorders for the new iphone 6 selling more than 4 million just in the first 24 hours it was available and the stock initially got slammed though recouped most of its losses of 77 cents in part because of a new iphone wont be available in china this year and more importantly because there are a lot of hedge funds and mutual funds out there looking to raise money to buy alibaba and apple is in a core position for many of the funds and one not far from the alltime highs and particularly in light of the fact that there are a lot of rumors about bad chinese news. Broaden has been a big fan of apple since the beginning of the year which has been a darn good call. It was headed much higher back in midjanuary when it was in a splitadjusted price and since then theyve caught a magnificent 32 by carolyn groweden. All hail the queen. The fibonacci queen thinks apple is worth buying all of the way up here when she first recommended it down here. The reason . Because apple made what broaden considers a pivotal low one week ago when it it traded down to 96 and change last tuesday. In other words, after a brief pullback, apple reiched level where broadens methods suggested the stock was able to turn around ands rallying and so long as it stays the september low, she thinks it will keep heading higher. Why did broaden come to that conclusion . Remember, her analysis is based on math. And its based on the work of leonardo fibonacci who popularized a set of ratios that popularized these in nature. 23. 6 , 38. 2 , 50 , 61. 8 and 100 . Bizarrely, these ratios also seem to appear at key points of the stock charts, too and theyve been spot on when it comes to apple. I verified this, its working. Tim cook knows the ratios. He seemed like he could be fibonacci student or a mad money devotee and she runs those moves through the prism of the fibonacci ratios i everyone innoned to find levels that the key stocks will change course. Its the fulcrum. For apple there was a whole cluster of fibonacci place ams running from 90 to 96 and that created a powerful floor of support at the 96 level it suggested that the stock would change course once it dipped down to that point which is exactly what happened. There is a second element to broadens fibonacci analysis. It it also applies to the xaxis. Just like she analyzes the size of previous moves to the fibonacci ratios she does the same thing with the duration of the moves and again, with apple there are a whole bunch of fibonacci time cycles that cluster between september 8th and season september 11th, six of these time cycles, in fact and when broaden seems that cluster it tells you the trend could be about to change and apple is pulling back going into the september 9th low and broaden thinks the trend would change and the stock is headed higher and its one of the reasons why the stock bounced today and i couldnt find fundamentals. How high can apple go . Take a look at the weekly chart because i want to think longer term. Own apple, dont trade it and i felt good when i saw this. Broaden sees two potential upside targets based on the fibonacci method and the stock could go to 113 based on 127 on those ratios and 127. 2 extense of apples swing into the 2013 lows or it could go even higher to 128 based on 161. 8 extension before the current rally runs out of steam. I know for those who just watched the show youre thinking this is mumbo jumbo, but weve done this with carolyn broaden for years and she has in particular with apple been spot on. Either way, it has healthy upside from here and thats controversial after the chinese chatter. It the stock breaks down and falls below the september 9th low at 96. 4 then shed be worried and thats four points below where its currently trading and broaden says she might have to reassess her position and they get negative as it it goes down. I see two things shes right. I believe the chinese issue will be solved and when its fixed it will cause the numbers to be boosted and thats okay. The People United behind the iphone will never be defeated and it will bow to this one country i mean, companys wishes. Next up is amazon and in broadens opinion amazon, what a very different beast from apple. Shoo she is not at all bullish on amazon. She thinks it could be headed lower. Take a look at amazons kailey chart. It had a nice runup in the beginning of the month. Terrific. But then it was like the stock hit some sort of wall, right . And since then its been sinking since it it hit that wall and using broadens fibonaccibased analysis thats exactly what happened. Amazon hit a wall of resistance at 139 where it kept the stock from rallying further and beyond that the rally petered out and lasted 23 days and put amazon up at 44. 79 almost the exact same size and duration, see, this is what i mean about these ratios. As the last time, as the previous run from late june, early august it lasted 33 days. Hey, whats 30 senn cents, she four fibonacci time cycles that it would change from september 4th and season september 5th. It peaked on the 4th. Amazon was unable to clear the resistance above 349 and it has now started dreaded term, rolling over. To make matters worse when you look at the second version of the daily chart you can see that amazon is currently trading below its key 200day and 50day moving average and something i say in get rich carefully , its very rare to find a stock in this combination and that tends to make the followers bearish and it is a continued decline from here which means this is not the kind of stock you want to buy. You want to sell into the day strength. I think shes right. This is one source of alibaba funds thats directly impacted by a healthy alibaba and it doesnt bear up to close scrutiny versus the chinese rival. Put simply, if you like amazon, you should love alibaba and is the the amazon for the alibaba. Heres the bottom line, the big funds, maybe up to 90, the big hunl funds will raise cash for the alibaba deal if they get allocations overnight. Only some of the stocks are based buying here. Apple is a keeper, i agree. Remember, dont trade it, own it. Ive been right, too, but it might be time to ditch amazon and based on the fundamentals i think it is a core holding that i think you must own. Amazon, lets just call it a lot more risky. Why dont we go to greg . Whats up . Do you think that after the 10 dip yesterday that now is the perfect time to buy tesla or do you think that will continue to plummet due to the elon and Morgan Stanley and the an ittis pagz of the alibaba ipo at the end of the week . I think tesla which is up 73 for the year is what i call a cult stock that a lot of people really love. If you have test driven a tesla then you want to own the stock. As long as that philosophy and phenomena continues this tesla will go higher. Do i think it goes to 500 . Do i think it will sell 500,000 cars, no, but i think it has more room to run. Lets leave it at that. Alibaba is all of the rage these days. I think apple belongs in your portfolio, but amazon, on the other hand, a lot more risk. Much more ahead. If hackers can can get to google, home deep owe and jennifer lawrence, is anyone safe from Cyber Attacks . Ill ask the ceo of lifelock if they can secure profits. And china loses steam. You should know what it means for your money. Ill name the companies you should hold or fold ammis the unrest. Hear that . Theyre your calls. Light ming rou lightning round is next. Stay with cramer. Want to change the world . Create things that help people. Design safer cars. Faster computers. Smarter grids and smarter phones. Think up new ways to produce energy. Be an engineer. Solve problems the world needs solved. What are you waiting for . Changing the world is part of the job description. Join the scientists and engineers of exxonmobil in inspiring americas future engineers. Energy lives here. Take and. Exhale. In. Aflac and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. Having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. So you talk to your Insurance Company and. Boom youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car plus depreciation. Call and for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch to Liberty Mutual insurance and you could save up to 423 dollars. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. The at home depot where we are hearing the digital thieves could ring up 3 million in fraudulent credit and debit charges, we have to be wondering if that could be the moment when people start to take the the Identity Theft seriously. Like it or not, your data is out well and its becoming more and more clear that yourself, your identity is ripe for the taking which brings me to lifelock, lock, which provides Identity Theft subscription basis. How does it work . You sign up for lifelock and theyll monitor your identity and related events. This isnt a Cyber Security play. Its more a service that provides you with a heads up in case someone manages to hack in to one of the companies that have your personal nrgz. It it reported a Strong Quarter in the end of july and the number of subscribers is up 32 bringing the total to 3. 2 million. Its down over 8 year to date. It was up today nicely, though, so what can can we learn of all these breaches from lifelock and is there a better way to protect ourselves so our identity cant be stolen in the first place. Lets check in with todd davis, the cofounder and ceo of lifelock. Welcome back to mad money. Good to see you, sir. Have a seat. Thank you. Youve been reading these stories in the paper like i have. You read them before theyre in the paper. Are there ones we dont even hear about . There are. There is a lot happening out there. Of course, there are rules and laws about certain organizations that have to report when they have it, but there are other folks, by the way that we believe dont even know theyve been hacked yet. So the information is out there. The milks been spilled, right . Okay. Thats the mindset that we have. Its not about hiding that information. Its not about keeping it from being breached, its what do you do as a consumer so that once your information is out there you can actually do something so that youre not one of these statistics or one of the victims. You have the detect, alert and restore. What does restore mean . What happens . What are we restored to some. A couple of things, you mentioned hey, when we see the home depot breaches and others, theres one thing about having a credit card compromised as long as you notify within 30 days. And Identity Theft until, right . Exactly right. If they get your debit account number and remove all your savings from your checking or savings, we are now with our new Product Offerings that we Just Announced at the end of july. We are looking at investment and retirement accounts. People arent thinking well, yeah, i hadnt thought about its not just my credit card. Its my investment accounts and my retirement accounts, but there wells good news. We are able to help protect, but then if something happens because no one be can stop all identity. If something happens while youre a member of lifelock we are there to actually restore. This isnt us sending you a list here are the things that you ought to do now that youve been compromised. Well use our expertise and have 1 million guarantee per incident, per customer. Im not talking over on the life of your relationship with lifelock. Im talking if something happened to your checking and savings, were there and well do the work and well do everything the law will allow us to fix it and cover up to 1 million in losses and expenses. In other ways that youre telling people, if i get the Premium Service and i know people who were premium people who were hacked with the apple situation. Do you advise them and say your password is not good enough and maybe you ought to be more thoughtful about what youre doing . How do i get that service . We are alerting you and educating you about things we can do better. Were not taking it upon ourselves to change your passwords or changing that recommendation. What we are telling you is even if your information is out well the key to this is lifelock isnt a situation where you can have a preexisting condition. The fact that you had your data compromised at home depot or target, and it gives you the Proactive Service and be there for you if something happens. Well educate you and make you aware. There are things you can do and here are the hacks and heres what you should do if given some of the notices, but dont worry, lifelock has your back and well keep relentlessly watching and live freely. Take advantage of theec tech and dont live in peer. Lets talk about the technology. Apple pay. To me, if i were running lifelock i would be thrilled if are it, but you also want people to be more secure. Is it . Its two pieces. I love the idea that someone may have a beachhead to prove a digital wallet is a payment tool, but really, apple, one, it will take years to get critical mass, right . You have to have the device and the merchants got to have it although things have to line up, but i hope to prove that out and its one element and its not tied to things like your Social Security number or the other. Its a transaction payment based. Ill let them fight it out on the payment side of the digital wallet and we want to be the facilitator in between. I dont care which credit card and which operating system and which platform youre on. Im agnostic to that and all i care about is being convenience and protection, and let you live the life you want to live on whatever Technology Platform and however you want to pay and we are there to both facilitate more convenient transactions and also there if something does happen. Got it. So youre agnostic to the device. Correct, but you want people to be aware of what could go wrong. Thank you so much. Thats todd davis, cofounder and chairman of lifelock, lock. Mad money is back after the break. You, my friend are a master of diversification. Who would have thought three cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. Clearly you are type e. You made it phil. Welcome home. Now whats our strategy with the fondue . Diversifying your portfolio . E trade gives you the tools and resources to get it right. Are you type e . You cant get any thbetter than that. Trains. Siemens trains are not your grandparents technology. Theyre something thats gonna change the cities we live in today. I find it so fascinating how many people ride this and go to work every single day. Im one of the lucky guys. I get to play with trains. People say, wow, we still build that in the United States . And we say, yeah, we do it is time it is time for the lightning round on cramers mad money. [ indiscernible ] and then the lightning round is over and are you ready skeedaddy. Sart with leo if louisiana . Leo booyah, jim. Help me out. Sure. Delta air lines. Theyre talking about how theyve got a refinery and fuel prices going down, but they went down in guidance. I think delta is fine. My favorite is love, luv, southwest. I think that has the most momentum right now and then after that ill go with spirit and then american and then ill go with delta and then with united. Troy in north carolina. Troy booyah, jim. Ive been watching you since your first show. Holy cow my question is about verifone systems. With their technology being in the new iphones, how does that change . Oh, man, i have liked that stock and thats been a winner for us. I cant say back up the truck because its moved up too much, but i really like verifone. Lets go to don in virginia. Don booyah, jim yo, yo. Cien. Sienna has been too inconsistent for this guy. I cant take the [ indiscernible ] lauren in new york. Booyah, jim. Booyah, lauren. I want to know what you think about simon properties. I am very concerned of iyir is very, and i need a 5 yield on iyr member or otherwise. Allen in indiana. Allen . Yes, sir. Big booyah from indiana, home of the kelly school of business and the indy 500. Yes, and we like both of those and what a great time we had at the kelly school of business. Thank you for mark cuban for making it extra special. How can i help . Mr. Cramer, can you tell me about sprint . Will it make it to the finish line with the checkered flag or will it it run out of gas . Its now a marathon for them and no longer a sprint. I think you hang in for the long haul because they have a lot of money and its not a shortterm callous and the man who saved it is now out. How about we go to bill in north carolina. Bill . Cramer, calling from charlotte, north carolina. Man, i like your team so much, but thats because i like Sean Mcdermott who say neighbor of mine and was a fabulous, fabulous student of well, coordinator. Whats up . Thanks for being the rock star of stock awareness. Okay. There is something blowing through my portfolio. Its a nose bleed, the whole fracing thing is going up. I want to pull become a little bit and ive been saying that to people. Its just a little too hot for this guy. How about vince in florida . Vince so vince . Booyah, jim cramer . Booyah. Im sitting on a boat load of rfmd and youll have to ring the register a leader. Its been a good merger, but you know what . All good things come to a pause. How about andrew in maryland . Andrew mr. Cramer, the professor himself. How are you, sir . Class is in session, how can i help . My question for you, sir is concerning pa, cobalt holdings. No. Every time ive gotten involved with a Latin American Airline its hurt us. Remember, i will reiterate its southwest and spirit and amr, i dont mind that one at all and i like delta and United Continental and im not going down to Copa Airlines because i dont want to dont buy, dont buy. If i could be more clear, i dont know how. And that, ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by t. D. Ameritrade. Five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Having a perfectly nice day, with the mobile trader app. When out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. So you talk to your Insurance Company and. Boom youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car plus depreciation. Call and for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch to Liberty Mutual insurance and you could save up to 423 dollars. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. The world is slowing. It it might even be slowing fast. At times like this we need to be aware of whats happening overseas because its controlling all of our industrial stocks which are going down for real reasons that have nothing to do with the alibaba cashraising effort. First, i never felt like this since mad money started, but ironically, despite Alibaba China has become a huge negative for the economy. Its almost as if the peoples republic isnt growing anymore except domestically and this is made doubly painful by one of the consumer experts in china would be delayed. Own it, dont trade it it. I am unwavering about this and i think that tim cook, the ceo will resolve the issues in a timely fashion. Still, its not a fed for for china where the only commodity that seems to hold up because of chinese demand is our cleaner m emphasis on e. R. , and the only way to now of coal stays strong. Thats a good segway to europe where the coal may be the most important product out there. Russia cuts off the gazprom spig spigot. Europeans have turned against nuke as they lecture us about pollution and they embraced the dirty eastern coal and theyve been incredible performers and thats why, but any other company that sells to europe, you need to cut down the growth rate and send off those estimates. Technical, auto, tech, aerospace and theyre going the wrong way because of a stronger dollar or a weaker euro meant to take business away from u. S. Companies like boeing. You can barely look at the companys charts and they are so hittious. I tried over the weekend, no can doa long as the a proximate cause of the slowdown. Again, i think russia has the ability to trialy damage the whole sector of the economy powered by gas and that would be a selfinflicted wound, but does it really matter . How about the emerging markets, their stocks are hitting sixmonth lows and we have what seems to be a vast slowdown in many countries around the globe and indonesia, and most of all brazil and it seems to be the source of any economic health. In my opinion, all of this international cooling is reflected in the Federal Reserves stinking and an economy thats shown export strength and it doesnt need the worldwide weakness and you cant get by with lower gasoline prices alone as a reason for the economy to stay strong. Businesses will cut back their spending because of the turmoil overseas and its coming at a time where if Interest Rates go higher it will be the coup de grace for housing. Sure the economy might seem strong, but its all relative and it can reverse that strength if were not careful. Lets hope the Federal Reserve rallizes how genuinely precarious the worlds economies are on the eve of the most important meeting of the year. Stick with cramer. Ave special powers when she has the shroud . No. Guys . Its the woven one the woven one. Oh, oh that gives her invincibility. Guys . No, no, no. The scarlet king is lord victors son no dont. I told you you guys are gonna be so surprised when you watch the finale youre so lucky your car has wifi. Yeah. I am. Equinox from chevrolet. The first and only car company to bring builtin 4g lte wifi to cars, trucks and crossovers. The rally said two things to me, one, all of the money that needs to be raised for the alibaba deal has to be raised and the people expect the the fed to do absolutely nothing, provided that europe stabilizes if not, then this will be viewed as a onetime only deadcat bounce and well have to reconfigure our view. Theres always a bull market somewhere and i promise to find somewhere and i promise to find it for you on mad laser beams slicing raw steel. We run this machine 24 hours a day, 7 days a week. Punishing tests that shake, rattle, and roll. If we dont break it here, we know the customer wont break it. All to build a machine that feeds the world. We sell combines to 35 countries around the world. Its the ultimate factory john deere