Socalled macrow and listen to individual companies on a day the dow slid, s p lost. 79 and nasdaq shed 6. 8 because treasury yields cantonu to sink and the president terrified the market you dont know the term terrified . You better get used to it. Others were focused on tariffied, i was focus on home depot because when im trying to take the pulse, home depot gives me a better read from the bond market or any talking people on tv home depot has all sorts of insights you cant get from staring at the yield curve and right now the spot says the consumer all systems go. After list piening to the blockbuster earnings, idea were heading to a recession, according to home depot, things are getting stronger, not weaker but there are issues why should you trust home depot . Two words. Car carol, the longtime chief financial person who is retiring after 24 years at the company. It was her last conference call. Money. We spend a huge amount of time interviewing officials going and Hedge Fund Managers talk in the books and strategists that keep trying to keep them busy but carol has a better track record than any of them and has much less of an agaenda and tome we trust, she should be fed chief what does the great carol tome have to say . Lets go to this mornings conference call. Lets go to the transcript that helped propel the stock nine points as the clueless headline writers called the quarter a big miss, one nanosecond here she goes. While Global Economic pessimism increased, the u. S. Consumer is healthy and record high levels and wages are up over 3 from last year. Hey, you know what that sounds good here is the problem. The u. S. Consumer is facing the impact of tar riffs consumer demand could be impact. Thats bad thats the current dilemma in a nutshell the trade war is making people lose confidence, something that crushed the stock of khols this morning, way back over reaction but Michelle Goss will explain that, im sure tome says not to worry too much. Were in the longest economic recovery and the growth is under the average of every other recovery in history. This is a reason why its an elongated cycle. There is plenty of room for the fed to cut Interest Rates like the president says because throughout the call tome kept bringing up deflation narcot pressures in the economy so many other quantities, the fed has ever reason to keep cutting. Put it together and it seems like the fed should deal with any weakness but the tariffs are a looming factor i felt after listening to tome could derail us home depot made it clear were winning a trade war and the merchandising says im not aware of a single supplier not moving some form of manufacturing outside of china so suppliers are moving from taiwan to vietnam and back to the United States all these changes will help cushion the blow at home depots same store sales and expect a 1 hit. It seems this would be the perfect time to make a deal with the chinese. They need it more than we do, and i say this as a big supporter of the president s tariffs. Thats right you know i support them. But the last thing any president wants is a trade war related recession as we head into an election year. If i were president trump, i would heed home depots call to recognize this hugely important industry is at risk from tariffs at the moment im sure the Chinese Government would love a reprieve from the trade war because its causing manufacturi manufacturing exotis i want the president to listen to this call and peter and greg mnuchin. Ist its important. Carol tume ertome has no agenda shes not bashing the fed even if she acre nknowledges his recr and recession and lumber and paint. Tome is making it clear were vulnerable to a downturn in the most robust portion of our economy. More importantly, as she always teaches me, housing punches above its weight when you try to sell your house or buy one, youll probably hire a contractor to fix it up. We dont want the contractors to get cold feet because after tariff wars. These dominated the session and at the end of the call, well, i was just i said darn it, i want this trade war but i dont want to trade i dont want it to destroy both sides. Home depot called out tools and appliances especially strong day course, storage, indoor garden, building materials, point, outdoor garden, hardware and plumbing were robust they could be impacted by tariffs. To put it another way, if i were a sitting president a year away from an election, i wouldnt want to tip over the home depot wheelbarrow streaming fed chief jay powell for rate cuts may not be enough when home depot executives seem to imply that the tariffs are weighing on people and the president said this afternoon, hey, listen, well have a rough patch but we have to do this, now is the time i agree with that but im i am concerned after this conference call. Im not worried about home depot because the company is clever and Interest Rates they use to refinance and web business is growing at 20 and represents 8. 9 of the total. Thats plenty of room for improvement however its more complicated than that. Listen to ceo who is so smart. While our Stores Remain the hub of our business, we know that many of our in store sales are influenced but online visits and 50 of online u. S. Orders were picked up in our stores during the quarter. Thats telling if youre a mom and pop hardware store, how do you compete . L lowes is having trouble adjusting, why in part because the spot is digtizing all of which gave sales a boost and for the newest fulfillment center, they can offer oneday delivery how can we make a judgment about the economy by looking at home depot but its more. Walmart reported an amazing quarter. Granularity that indicated the quarter got better amazon delivered fantastic results as did costco. Tomorrow we hear from target which puts the t in my watch acron acronym. Its done Amazing Things to d digtidi digtize the business home depot is perfect for the u. S. Economy and out going cfo carol tome is an honest broker we wish her congratulations and all the luck in the world. She said the consumer is in great shape now but should be derailed by the trade war as someone thats in favor of cracking down on china like the president. I think we still need to take her concerns to heart and i hope the president takes this opportunity to make a deal while the chinese are feeling the pain from our tariffs before we get the full impact on our side of the aisle. Charlie in europe . Caller booyah, jim. Thank you for having my call thank you so much for the valuable information. Thank you. My question is about footlocker last time after earning this morning it went down 30 , but consumer, the Retail Consumer spending is up this quarter. Footlocker manager and could move out of the malls so my question is with the low stock price, what do you think i know, yield is 4 but that has not stopped these mallbased stocks from going lower. Look at macys, look at kohls i am concerned that yield is no longer protecting any mall lets go to doug in new york, please, doug caller hi, how are you doing . Good. How are you . Caller love your show and enthusiasm. Thank you caller i just want to say shoutout to my mother. Why not ill do the same that takes thats a boy, big megaphone, go ahead. Caller okay. I just want to know about what you think about beyond me. I have two different views of beyond me. I think the company is good. The stock got away from what the company the stock is its going to take a long time to grow therefore you have to be careful particularly because there is a half dozen more beef companies coming to market but i like beyond and i think that the management there is excellent. How about anthony in new jersey, anthony . Caller how are you doing, jim . Good, how about you caller not bad i was calling i want your opinion on blackberry. I got them a couple years ago. Everyone likes the property component and thinks its worth a great deal of money but doesnt have growth and we like growth in cramerica. Period end of story richard in month monana, please, richard . Caller hi, jim, big sky country booyah to you and your staff. My wife loved biking in montana. Whats up . Caller my stock is abbvie. Darn, ill tell you what, i think abbvie bottom. I think Bristol Myers bottomed i was going to do a piece about this tomorrow but i gave away the whole darn thing and i dont feel it. Anyway, i like it. If you look at what Companies Say about the strength of the economy, you get a best view of the consumer you take a look at home depot and ask what recession but you also think lets be careful. What estee lauder and tom brady have in common, then, with news that they may spin off match group, ill tell you if its worth investing in and a stock up about 500 in the past years and it may not be on your radar and may not be too late to buy ill tell you the name and see if the move can continue so stay with carol tome and stay 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. Are we supposed to dance . Boy boy bands without dancing are just ok. Get a better than just ok unlimited plan with spotify premium included on americas best network. Only from at t. More for your thing. Thats our thing. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. How you watch it does too. Tv just keeps getting better. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. Suddenly the slow growth stories are getting hammered stocks like mccormick is down seven points in one session through in form of its own because we survived the inversion, we are back in boom town mccormick is the ultimate stay at home lets cook story same goes for retailer like tjx who reported today and chop it out, who do you think buys that merchandise. Tjx comes in and picks it up for a fraction of the list price cash the latest quarter was considered weaker by many at least at the opening, stocks sold off but because investors figured a recession was off the table so the fact tjx rebounded this afternoon was not necessarily a good sign even though these two companies will make a lot of money, their stocks immediately fell out of fashion in the wall street fashion show when people stopped worrying about a recession they are rebound when the yield curve invertsment let lets say we get a weak number, i think trying to profit from the day to day rotations when i first started the show, i tried to get you in and out. I know better than that. Its a fools game i like mccormick, good company and tjx, end of story but you know what i love, estee lauder they take risk and defy gravity in any environment they are doing what they know. They are always going to make the playoffs but will never make the championship estee lauder is trying to win the super bowl the ceo is the Bill Belichick of the cosmetics business not that long ago estee lauder relied on u. S. Department stores and made up onethird of the business they knew brick and mortar was the place to be. Right now they realize many of the buyers for prestige makeup dont go to Department Stores any more, they dont go to the mall, they go online or ulta beauty we pivot stop depending on the no growth outlets for growth he goes on the road to talk to young people in china to figure out what they like he has hero brands he can sell the world over thats why i love the stock of estee lauder but a slowdown because it does become more attractive as the economy is weaker what do you do its crazy to switch back and forth between the slowdown stocks and come pthats somethig hedge funds can get away with. Youre better not trying to gain rotation find the stock of high Quality Company where they figure out landscape and takes risk estee lauder is a prime example. It would have been easy to say our earnings were hurt because traffic was down at macys or often bond time. You know, defunk chain people do that on calls. They say listen, its not my fault its macys or would have been easy to blame the hong kong protest for hurting a key showcase but they didnt go there. He doesnt do that he isnt making excuses. He saw the problems coming and avoided them they used them to figure out where the company is likely to be challenged. He has a. I. On his team. I have to tell you, freta is a horizontal guy and listens to everybody. He has a reverse mentoring program and younger people have to be your boss for a couple days ouch makes sense. Hes the Bill Belichick of cosmetics. He gets the job done and does the assignment thats how a company that sells the ultimate discretionary goods can fly in an environment that everyone is whining about. No wonder it surged yesterday and 206 today. He is a heroic risrisktaking c. Stay with cramer this is mia. This is mias pulse. With pressure rising, and racing. This is also mias pulse. That her doctor keeps in check, so she can find balance. This is mias pulse, and now its more stable than ever. This is what medicare from Blue Cross Blue Shield does for mia. And with over 80 years of healthcare expertise, imagine what we can do for you. This is the benefit of blue. What can you safely circle the wagons around in a really mechanic depress sie depressivet that veers wildly from deep despair about a potential recession to euphoria everything will be fine you want stocks that will work either way thats the theme of tonights show that brings me to iac enter activity corp. Thats the media and information and Technology Business with the stock up 38 for the year. Hitting a new alltime high this month in the wake of a stellar quarter. Ive been recommending iac for ages but i want to pound the table because this is the s secular growth story the story is as easy as one, two, three iac has taken two cities public, match group the Online Dating group that owns tinder, cupid and Angie Home Services that owns angies list and home advisor. Both want to do remodelling. When you add up the value in match and its stake in angie, what you find is youre basically getting the rest of iac which is quite valuable for free thats been our thesis here and so far worked out fabulously the stock up 138 since i first started pushing aggressively in june of 2017 because i saw the bizarre disparity among the pieces made no sense to me because it didnt however, when the Company Reported management announced they were thinking about selling the rest of holdings in match and angie looking for ways to maximize value we dont know what they are going to do right now. They are just considering options but it made us want to sharpen pencils and check out the math on iac to make sure were still getting a bargain with the stock first let me catch you up on what is happening. For those of you that dont remember, its a house of Digital Brands put together by barry, the chairman ive met and let me tell you, i met him in 1979 didnt remember but man, is he smart . They own ask. Com, dictionary. Com, dot dash and the daily beast with many other brands that you use that you dont know they own although match group and Angie Home Services account for twothirds of the sales these guys are bastards of taking little Digital Brands than blowing them out and monetizing it. Expedia. He and his team have created a massive amount of value over the years. Roughly a year ago we came out here to take a victory lap and pointed out they had become a no brainer and by the way, i banned that term from mad money. I dont use the term but im using it here. At the time their stake was worth 10. 5 billion and Angie Home Services together, nearly 19 billion youre literally getting the rest of the businesses for less than nothing its like that great line from cramer fav classic the worries can you count sukas because if the future is ours if you can count. Remember that . Didnt see it . You have to check it anyway, at the time the stock was at 185 now its at 253. Turns out the basic a rrrhythmi can be obvious the Online Dating apps have taken the world by storm the less reisky way they can stagnant and would be able to go higher because it would deserve to go higher the family is doing great. Two weeks ago the company delivered a 23 cent earnings beat higher than expected sales of 12 year over year. Once again match group put up fabulous numbers tinlder subscribers rose to 5 million. That is up from 1. 5 million versus last year up 1. 5 million. I mean, boy, people really must like to meet each other. Isnt that what hookup means when you drill down while the biggest division, its not the fastest growing. The online video platform sold 26 sales growth you use that every day dot dash up and mosaic group is on fire and Angie Home Services had crucial mistakes how they manage from google we saw it happen with yelp both sales came. The ceo came on the show and i loved put it, i believe the recent issue was as much tripping over our own feet as it was changes in googles echo system the man is humble. Thats another thing i like. When these guys make a mistake, they are not afraid to admit it. Angie stock was devastated down 25 in a single session. Angie is down 48 for the year and there are real issues that are weighing on the Parent Company if the strength at match group is more than enough to offset them. Thats the context you need to be aware of when you consider they are talking about potentially doing a full spin off for either or both of these companies. Again, though, as its been put. We sincerely havent decided what is best he acknowledges match seems like a more obvious candidate for the spin off for the value, great. So does the mask still check out . When we recommended iac to the subsidiaries, it se