Shape as i keep saying, then how the heck can i keep calling for a rate cut i dont need a rate cut. On a day when the dow gained 50 points, the nasdaq dipped 3. 6 , i think this is an important question especially given the feds yearly jackson hole con fab getting Coverage Today and tomorrow on our network. As the consumer well, lets just say, what do we know about the consumer consumer shops at watch, which is my acronym for walmart, amazon, target, costco, and home depot. What do we know about the consumer at these stores doing quite well we know the Unemployment Rate is at its lowest level in 40 years, so why in the world is President Trump trying to hector the fed into cutting interest and why do i believe in the president because its not that simple, people as i explained last night, weve got two economic world views colliding here you look at the big retailers and it seems like business is booming. You look at whats happening in the rest of the world in the bond market it looks like were heading into a recession i think the formal world view is more accurate. Its smarter, more intelligence more rigorous to say the latter. There is some truth to the slow down thesis. On the eve of the big fed jackson hole powwow, the bear case deserves a very good hearing. First lets take the obvious what we should do is use the words of the chosen one, king of israel, also known as President Trump. He said point blank, well have to take some pain in the trade war the house of pain if we want to get china to change its unfair practices. The economy would be in good shape now. If we keep getting more and more tariffs, it could deteriorate. In that case, the fed needs to cut rates as insurance, bring our short term Interest Rates closer to the rest of the world. It seems pretty reasonable to me why do they disagree with me trump stock why are they against this they know nothing, they know nothing, those know nothing. In other words they think i like it because i want the stock market to go up and im worried they dont understand things we know china is slowing, right . Thats important while thats guard us in terms of winning the trade war its bad for the Global Economy when you adjust for inflation the numbers were seeing from china are downright alarming that devastation is spreading to their other trading partners especially europe. Speaking much europe, the European Union seems to be in big trouble. We dont talk about it enough. We cant talk about a nasty recession unless they take something off the table. We have to talk about charitable situations today these issues seem intractable. Not just brexit. The German Economy is shrinking. People are paying the German Government to take their money because theyre so in love with austerity, they refuse to take advantage of the situation French Economy is barely glowing. Euro zone was up 0. 2 in the quarter if you can call that growth when you look at the european bond markets theyre screaming recession and i actually believe that of course, this is all happening overseas can we shrug off this weakness i wouldnt bet on it if i were the fed. A year ago we had synchronized global growth. We have a slow down wur r where the United States seems to be the rare exception the fed should make sure it stays that way sure we have the lowest jobless rate since 1969. I remember we had a recession in 1969 the problem with the labor market is it will look good right up until the moment it gets very, very bad. What about watch, though isnt watch represent the country spend . While these big retailers are doing great, theyre crushing their less agile competitors they cant afford the technology they cant eat the tariffs like these guys did could be a lot of layoffs coming from Ailing Department stores and smaller capitalized business thaez cant hand l the tariffs on chinese goods they have to close their doors then theres boeing, a company thats large enough to affect our gross domestic product, some people say as much as half a percent all by itself. If the 737max Assembly Line gets shutdown because of these accidents, that could shave half a percentage point of our gdp, according to the work ive done. Housing should get stronger now that Mortgage Rates have plummeted back to earth. When i listen to the Toll Brothers luxury home builder call the other day i wasnt reassured frankly. Maybe people are going to home depot to renovate their existing homes, not to fix up new ones. Latest Housing Starts frankly anemic then there are all those aggregate indicators i follow. Gas is so cheap you have to wonder if there is a slow down in manufacturing by the way theyre giving that stuff up, too. They give it away or burn it liner board, that is the kind of thing you get at amazon packaging. A chemical is falling. Freight costs are going down big. There isnt a commodity i follow going up in price unless you count gold some of thats because the auto market is in rough shape and lots of the stuff goes into cars so maybe we can keep chugging along here aided by low long term Interest Rates courtesy of the weakness in the e. U. Maybe our economy will be just fine, but maybe it wont and if youre the federal reserve, do you really want to chak that chance one reason were in this position is the fed tightened aggressively last year, stupid move given the pessimism of the fear the president tweets, it makes a ton of sense for j. Powell to give the economy some leeway here otherwise here i am, this is what im going to be saying. They know nothing, they know nothing. I will bring that back. I will i know its hard for some of the more highbound fed governors to believe you should ever lower rates when the consumer is flush. There is a lot more to the economy than Consumer Spending there are people in the open Market Committee that dont get the economy. All this technology we talk about all the time on the show really is, the vast majority of companies i speak to are using the Cloud Economy to keep costs down as robust as retailers are it comes at the back of mom and Pop Companies that cant make it and mall stores fighting to their lives. The number from l brand which owns victorias secret, they were simply awful. I cant imagine theyll be able to keep doing the same thing yes, macys does have a similar problem, although theyre doing theyre frankly doing better than l brands look, you can easily argue there is enough good here to offset the bad. Honestly im not going to disagree with that ive done a ton of work on the trade war itself e im possessed with understanding where we are i think it would be nuts to get your hopes up on a deal any time soon the u. S. And china will keep exchanging body blows. So far weve gotten through it with relatively little pain. Trump is ready to ratchet things up again and it would be foolish to believe there will be no impact when hes telling you there will be. Bottom line i think the fed has more than enough reason to take preemptive action and cut Interest Rates maybe aggressively even if theyve never been preemptively positive before but, hey, they were willing to be preemptively negative a year ago. Why not try something a little more constructive, jay how about steve in std ed is, please steve. Caller hey, jimbo, i have a question regarding mole son coors. The stock is actually trading lower than its traded in years. It seems like a lot of the problem now, i love blue moon coors, but they dont have the hard sells which is popular. They have a new c. E. O. Taking over in i think a few weeks. He seems very motivated. Do you think the stock is cheap now is a goodbye . You know what, its funny you mention the hard sell, sir i had some this weekend, by the way. I had some truly i have to tell you, i kind of liked it boston beer, theyre well ahead of everybody including constellation. I would rather have you own constellation. 4. 4 yield is not going to help you stop anything in mole son. Constellation is doing better. I think they can right the ship, its going to be hard but theyll right the ship up. Lets stick with south dakota lets go to john in south dakota caller jim, how are you . Big booyah to ya i check the free market, grab a cup of coffee and try not to wake my wife and let you explain the market thank you for that i have fabulous part nerz that make me look good every day. Lets make some money. Whats going 0 not caller all right, a couple years ago i bought dow dupont, bought into the story, bought into the synergies, bought into the promises and now sitting here after the split, im down 50 in dow, 25 in dupont. And i know dupont is in your portfolio. Yep caller the question is, jim, what do i do i think its too late to sell dow now because its got such a big yield. Jim is going tokumat be able ton things around, 6. 6 . I have it in my charitable a left you can follow if you join the Charitable Trust club. We were talking about buying dupont evening thoi this has been a very difficult and, yes, bad situation. All right. The fed, why not try something new and constructive you have more than enough reasons to take preemptive action and cut rates give it a try. On mad money tonight, is the force still with salesforce after earnings i was sitting down with the coc. E. O. Fresh off the board. My cloud cover continues with all the plays i know you want to know about but are too frayed to ask about. A bat a player since before it became public, i tell you the truth, i think its about to get its act together in a big way starting with this quarter is it still worth considering to buy some why dont we watch and talk and find out stay with cramer announcer dont miss a second of mad money. Second of mad money. Follow jim cramer on keeping the night interesting, is all about setting the right tone. Lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. Corona premier. Haveyb[u do you have concerns about mild memory loss related to aging . Tweet prevagen. Healthier brain. Better life. To the wait did frowe just winners. Prouders everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you preorder a new samsung note. Click, call or visit a store today. 3s list een up, you bet against salesforce at your own peril we talk about how money is going to flow back into the names and induce panic when it comes to the cloud, salesforce has always been the best of the best like i explained earlier, they pioneered the whole software as their Service Business model the stocks against knock down, it gets back up again. Youre never going to keep this one down in the past few months salesforce pulled back from 167 highest in april, down to 148 as of todays close some of it was the market wide weakness, some of it may have been related to the position to buy tabloid software in june its a company we loved for a long time and didnt mind them paying for it. Tonight salesforce reported a phenomenal Quarter Company delivered a top and bottom line beat with 22 Revenue Growth management gained excellent guidance theyre talking about 31 growth next quarter, 31 no wonder the stock exploded higher in after hours trading. Could it have even more up side . Were going to take a closer look with keith block, the coc. E. O. Of sales force to get a better read on the quarter and his companys prospects. Mr. Block, welcome back to mad money. Keith, these are pretty astounding numbers, the one that really blows me away is the Free Cash Flow which is how i like to value a lot of companies how were you able to put up a staggeringly better number than what the street was looking for . Well, jim, its great to be on your show were super excited. Obviously we had a strong quarter, 4 billion in revenue, up 22 , 23 in Constant Currency weve raised our guide for the year to 16. 9 billion, 27 . So very, very excited. Great execution, lots of Customer Success a lot of this, jim, is really powered by this wave of Digital Transformation were seeing all over the world you have a slide in your deck which i think is rather astonishing. People always tell me, keith, you know what, jim, youre late on this cloud. Its really its done but youre talking about a Staggering Number of companies that have yet to digitize. Well, as i said, theres a huge wave of Digital Transformation a lot of these different technologies are coming together jim, i have the opportunity and mark has the opportunity to go around the world and talk to a lot of other c. E. O. S theres just this huge imperative around Digital Transformation and, you know, Everybody Needs to get closer to the customer. Everybody is trying to improve that Customer Experience and thats where salesforce really brings value to the table. Look, im going to just go there. Your mark isnt here. Mark already pointed me to page 16 but there is an imperative you guys have. Youre 16. 8 now of the chmcrm market adobe, microsoft, are they slacking off, are you taking share . Are you taking some logos . Their numbers dont look nearly as good. Well, listen, theres a huge tamme for crm, were executing that tamme and thats driven by Customer Success there is this thing, 360 degree of customers thats about the walls of sales and marketing coming down. Thats what the 360 platform is all about and our customers are looking for that theyre looking for Growth Strategies thats why you see these great results. I know the tabloid data is still in place, cant be talked about. A lot of people say, jim, its all over mark is in hawaii, hes in geneva you like it, but you dont understand when they make these acquisition, they spend too much isnt this the same rap we heard with exact target isnt this the same rap we heard with mule soft how did those deals workout for you . Well, listen, we have been recognized widely as one of the most Innovative Companies in the world. That takes two forms one is organic innovation and theres plenty of that in our history. Thats why weve been so you can is he isful and our customers keep coming back we have acquisitions, youre right, we have a fantastic history of execution whether it was the exact target acquisition or most recently a year ago the mule acquisition, those have been wildly successful for our customers i do want to get a little granular about what youre doing for some customers theres an outfit you have great numbers in europe. Everyone thinks europes dead. Unit credit, i know them because theyre the only solvent bank in italy. What are you doing for them . Well, i had the opportunity to go to milan to meet with the c. E. O. Were glad to welcome them to the salesforce family. Theyre going through a transformation that every Financial Services institution is going through its all about improving the Customer Experience. Its all about reinventing the Business Model its all about transformation in the retail bank. And unit credit gets it. We are thrilled to welcome them to the family and theyre doing some of the things that you see like just daily doing at barclays bank, many of the great Financial Services institutions, its about Digital Transformation, about bringing Companies Close tore their customers. Thats what salesforce does. I remember when fedex came public fedex has always been number one for the customer when i saw them as a new logo, i said to myself, what else what were they not doing that they need salesforce to do well, fedex is a story brand. Its a 50yearold company they revolutionized the package industry fred smith is an iconic visionary c. E. O. And now theyre taking it to the next level through Customer Experience and theyre leveraging einstein, to have predictions and make a better Customer Experience around knowledge. So, for example, if you had a challenge at some particular way and fedex is high quality, high, high quality if there were a challenge, an agent can help you by bringing relevant information recommended by einstein to drive a better experience there are a million use cases of einstein just like that in many, many industries. Ive used einstein. It is rather amazing as a client of yours it is predictive in a way ive never been able to get before. Before you had to throw 100 darts. Theres no more dart throwing with einstein. Its terrific. Let me ask you about something mark first put in my head and my daughters. Impact per share, i. P. S. , what you guys have done lately in order to be able to demonstrate that business is the most important force for change in the world today. Well, jim, weve been a values based company for 20 years. Were purpose built. Our values are very important to our culture. Companies actually want to do business with us because of our values i hear this constantly from other c. E. O. S. They want to know what were doing about our culture, how our values are driving our business. I participate in the b. R. T. , which business round table, which recently