But after a session with the dow dropping 160 points sell, sell, sell. The super bowl backslid 0. 49 . And the nasdaq lost 0. 80 . Really that was a day. You need to understand the economy doesnt work like that it is not like were teethinger between good and bad well have one set of good numbers from the Domestic Companies doing just fine. As long as the trade war continues well have another et self bad numbers from companies that are hostage to the Global Economy and doing terribly the chinese trade delegation went home early, instead of hanging out with farmers in montana, suddenly the market rolled over. A lot of investors believe until the big sky country darkened we might be close to a deal but there is knock on the horizon. If china would do something as low stakes as this farm visit, hence todays selloff as i told you it will be harder to reach an accommodation with the peoples republic than many people seem to think that is a good place to start our game plan. I think there could be a lot of very Important News this very weekend that may impact mondays trading. For example, theres going to be news in hong kong. For months weve been seeing rig riots as they dont seem to be too thrilled to be a virtual colony of the peoplepeoples. Now were getting mighty close to the 70th anniversary of the peoples republic formation, october 1st, an important day in china. I think the military may start taking a more aggressive posture. They dont want these protests to continue during an important milestone for the regime what else . On monday we get estimates by Brokerage Houses on how well apples new iphone, the 11, is selling. I suspect the numbers will be put in a disappointing light even if theyre good because the expectations have gotten unrealistic going to the launch. Thats not the important part. What really matters is all the new Service Revenue and the new watch, i picked one up today i cannot believe how easy it is. Much better facing this, a lot easier to scroll through, anyway, its flying off the chefs. When i visited tim cook and his team at the newly renovated star on fifth avenue today i had a blo blast looking at all the new products still have the same steve jobs designed cube. The most negative voices will be the loud evidence and the stock is likely to get hit i think it started with it down more than 3 bucks. Donting shaking out own apple. Dont trade it i believe you will be tested next week by the apple barbers who always come out of the woodwork when the phone is in, lets day selling in the first five days and now the charters who smell a broken chart geez tuesday should be good we hear from a hose of Domestic Companies. Yes, domestic consumer Oriented Companies and i think theyre in excellent shape and in the morning results from carmax and autozone that keeps buying back its stock. Now, both stocks have been big winners, however sometimes these two tend to trade badly on the day they report. Even in the wake of strong numbers they only start rallying after the initial dip. If you like them i would buy some before the report and some right into their swoons, i am endorsing that we hear from nike after the close. This stock has been held back because of worries about a potential sloed in china potential slowdown i see no evidence of either slowness and i bet nike share cost soar if they say things remain strong around the globe you want the best company that most people have never heard of, its called cintat sometimes you see the trucks on the road uniform rental Service Two Years ago cintas was allowed to merge with its main rival we championed it because we love monopolies and the stock has been an awesome performer ever since the job market is strong another terrific quarter wednesday we get a read on housing when longterm Interest Rates plummeted over the summer, a lot assume housing would come right back we havent seen that until very recently like yesterdays robust existing home sales number you know what, thats good news for an old cramer fave, kb home. They made a new 52week high but even after this run, the Home Builders remain cheap i expect them to sell off because the analysts tend to be critical and dont seem to like the way its run not me ive liked it since 14. I like it double what else . We have two critical analyst meetings wednesday best buy and vf corp beth tied to the domestic economy. I bet they say good things best buy is selling lots of gadgets and might give insight into the iphone 11 if the vans story stays hot the sneaker business can carry the whole darn country if you try to put it in spell check always makes this can. Acn, you got to do it twice. Periodic dips that coincide with the day it reports thats right they report and suddenly like doing well, doing well, and then thats when you got to buy now conagra reports too. This is a real conundrum great management good brands, iffy results. I think they figured out whats wrong and can nail the quarter i really do. After the close we have the most controversial quarter of the week and its micron the commodity Semiconductor Name several analysts bolted claiming its two key products are turning positive or use the term inflecking they always say inflecting but this stock had a remarkable run. Unless theyre seeing Strong Demand for both flash and drams i think the stocks gains will be rolled back especially if they mention anything about trade tensions in china. That would be the kiss of death. Why is micron so important simple it makes the basic Building Blocks that go into almost every device you can imagine there could be huge and im talking about monster pin action off this one so you need to parse everything the company says and take positive commentary with a grape of salt. Long knifes are out for the stock at this level. I detect it. Long knives. Micron theres no such thing as a lock in this business i mean theres nothing like take the bass and give zero but ill tell you friday Boston Scientific holds an analysts meeting and almost always has new breakthroughs. Abbott is my fave. I think im a big backer of Edwards Life Sciences and medtronic in january i had to tell the ceo he should like his stock more theres no sensitivity no china worries halcyon. A bunch of fed heads talk next week im begging you not to listen to them see, i got a rule that served me well never Pay Attention to the droning of any Federal Reserve official who speaks within two weeks after the fed has already spoken its just a bunch of popoffs who confuse you. Dont let them throw you off with their jibberjabber and faux drama i have said for years they shouldnt even be allowed to talk as individuals because you know why, theyre so discordant. They confuse you and make you leave the stock market as we head into next week remember we dont have one economy. We have an economy thats balanced on a knifes edge, two of them. A domestic, okay and that is strong and an internationally oriented one and thats in much worse shape thats right if you want to understand this market, thats from when billy says were all going to die in the predator. The bad part of the economy, what can i say, as of 3 00 today its suddenly in control lets take calls lets go to dan in ohio, please. Dan. Caller hey, jim, how are you doing . Im trying not to catch a falling knife. Whats happening. Caller my question is about Ollies Bargain house. Had bad earnings, should i dump it i dont want to you dump it this is a stock i get asked about a lot and its really incredible and i myself am confused i would like to see mark back. It was not a good quarter. It was not a good quarter and the selling was right so we have to wait a full quarter to see if things get better before we make a move ply plug fell out. I dont want my pc to die. Probably more information than you need anyway, todays selloff did make sense dont listen to any fed talk for the next two weeks im not listening, my daughter does that. On mad money the trade wars taking a toll but not where youd expect it. Im revealing not one, not two, not three but four stocks and plenty of action in the pharmaceutical space with bristolmyers and abdi making big aacquisitions. Which could be the better bet and zee scaler, stock suffered its worst day since going public could its recent turnaround be the thing . Ive got the ceo 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. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. 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Com i like to think ive been pretty cleareyed about the impact of this trade war but i never thought it would be this weird i dont know what else to call it weird. Sure, the trade war is take its toll on business we know that its not just taking its toll where it was supposed to thats why im a lot less worried about how the iphone 11 will sell in china its dropping today. Im excited about apples prospects. How is that possible the trade was has produce add nomly after anomaly, after anomaly. When they tried to protect our companies from chinese dumping we were told it would cause prices to skyrocket. Steel price, theyve collapsed some are appreciably lower than anyone imagined. Just American Made steel, some of the biggest demand is weaker than expected. It was to prop up steel prices for American Companies that deserve it because the chinese have been crushing out and didnt happen. The bizarre plummet in steel doesnt hold a candle to the paradox of chinese demand. When the trade war got going we were worried about boycotts of American Goods instead weve seen a dramatic increase in chinese demand for Many American products consider the contrarian case of Procter Gamble yesterday i interviewed david tyler and he talked about the home run theyre hitting in the peoples republic. Let me quote him take china, several years ago we were minus 5 sales growth the next year plus 1 the next year plus 7 we just closed the year at plus 10, end quote. Holy cow the secret to their success they sell the best product at a reasonable price thats how theyre taking share from cheaper chinese alternatives stashs, starbucks, they may be an International Brand but its based in seattle they havent had a big breakthrough but their ceo it recently told me business has been improving rapidly and starbucks has a lot more room to grow if anything its helping them. How about yum china, the owner of kfc, pizza hut and taco bell. The chinese had a state equivalent of a boycott. Thats fabulous. The company gave a lukewarm forecast but theyve always been pretty conservative. The fact is it doesnt get more american than kfc and the business is growing, not shrinking, colonel sanders, two thumbs up estee lauder shorted this stock going into the quarter betting their asian business would be their achilles heel had to be weak trade war, unrest in hong kong, nope, star of the show asia was indeed their best region if you look at how well these brands are doing in china its hard to take the doomsayers seriously. When they write off the new iphone before it comes out if apple prices, the new phone correctly, i think they are, the numbers could be much higher than we expect chinese like a valuable phone. My conclusion, there might be tremendous antipathy between our governments but that doesnt seem to extend to the people the people of china seem to like us and theyve actually stepped up their purchases of Many American products. They were supposed to be wrecked by the trade war what can i say sometimes truth, its stranger than fiction mad money is back after the break. It was sophies big day. By the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. You know, mixing stocks is kind of like going to the library to find a good book. Some stories are more compelling than others. When youve been in this business as long as i have you start to notice how certain narratives often lead to big profits. And one of my favorites, when a struggling company with a battered stock makes a dramatic move to take control of its own destiny. Thats a great hook and when it works, well, payoff can be enormous but how do you know if management can pull it off weve seen not one but two ailing pharmaceutical titans try to make it happen. Theres bristolmyers and theres abdi both had started to feel pitiful helpless giants and their stocks became houses of pain n an environment when many had faced head winds it seems like pushing down drug prices is one of the few things the democrats and republicans can find Common Ground on. Br bristolmyers stands out as real dogs the former lost rough aly third of its value since it peaked in 2016, the latter down 40 in less than two years. The markets have been pretty good both decided to make action. At the beginning of the year bristolmyers said theyre buyi buying celgi then in june we learn abbvie is acquiring allergen huge transformational deals. Both will look different from the current abbvie and current bristolmyers. Which one do we like more. I want to teach you how to evaluate these situations. Lets go over both and see which one looks more enticing. You have to understand why this is happening at all. Its not like every big pharma stock has been crushed merck was great in this environment. There is a big performance gap between the haves and havenots. Bristolmyers has been getting eaten alive by competition but their cancer drug op teva versus keytruda its well on its way to doing 10 billion. Optivs numbers have stagnated abbvie, kroenss disease, psoriasis. Its a victim of its own success. Humira generated 0 billions. It already peaked and lost patent protection late last year, First Quarter humiras International Sales plummeted by 28 because of the competition abbvie has this thing locked down till 2023 they dont have anything in the pipe that can replace it which is a big problem. Humira accounts for more than half of their revenues both need to do something major to get back on track on january 3rd briggs toll myers made a bid for celgie. Celgene has a huge pipeline. Many of which are approaching the end of their Clinical Trials in particular management identified five different celgene products is that worth the 90 billion in cash and stock price, the tag bristolmyers agreed to pay . Thats a lot of bucks. 90 investors were initially skeptical. But i think management has begun to make it well, no, they made a compelling case on this show but a lot of people werent buying their compelling case i sure did you know what, they could justify paying 55 billion alone just for the products that they have on the market, another 20 billion for the 2. 5 billion in costs theyre expecting and 75 billion without counts the drugs in development when you consider the pipeline its really worth 1 120 billion if right that will turn out to be a steal and i got to tell you i think it is a steal. Check. Please now, what will it look like . Lets go to the source listen to bristolmyers ceo dr. Giovanni kafario it creates the Number One Company in on k cardiology an generates value from shareholders from shareholders from day one and provides a path to sustainable longterm growth for bristolmyers squibb. Now they had to sell a few pieces of the business to get approval including important ones i was important the government made them sell owe t otezla they believe they can close by the end of the year and the government toad in the way of this great merger but its going to work. How about one that happened while i was away while i was in italy how yeah. How about Abbvie Allergan. What a merger. In late june i was in florence i was hiking the whole day this happened. Abbvie offered 63 billion in cash and stock for allergan. Thats the beleaguered maker of botox among many other drug, a 45 premium to where the stock had been trading but then again its less than half of what pfizer offered for the same company a few years ago because it had execution issues. Dont forget allergan back was a way to get a real tax break. Now, management believes they can generate 2 billion and other cost reductions by year three and expect it to close in early 2020 its Pretty Simple abbvie needs to diversify away from humira and need to do it fast allergan gives them exposure to medical aesthetics, eye care, Womens Health and by the way i think a very effective possible pill for migraine. When you get migraine and the growth rate has a boost too and believe to have the best prospects in the industry. I think that is hyperbole. Abbvie expects the deal to boost earnings for share by 10 over the first full year after it