Apple declined. Therefore, its taken the nasdaq down. Was larry somers that horrendous for stocks . Could he actually matter that much . No, but he sure is a catalyst. Let me give you the setup and the reasons why the market loved the fact that larry somers is absolutely not going to be the next Federal Reserve chair. The only thing that stands in the way of higher stock proprietary prices here is, watch, the war between the president and republicans drains everyone. Business gets crushed in the crossfire every time there is a player partnership. Today when the president spoke, he admitted the economy took a real hit two years ago during the debt downgrade wrangling. We know the fiscal cliff discussion put business square on its back. We saw a return to good growth and then the sequester stalled the economy again. This linkage is amazing and it is so abysmal that we all know we have to sell when the president and congress are loggerheads. Thats just what you do. Its imperically smart. The president couldnt be more divisive when he spoke about the upcoming negotiations over the debt ceiling budget deficit. He basically dared the republicans to shut down the government. Of course, it would be a 5050 shutdown, meaning the democrats would be at fault, too. I was agast how hard line the president was. He basically said we will shut it. It will be a miracle if we get a dole now. In the context, that vortex steps larry somers a. Physical that has polarized everything and everyone in every place hes been. Why . Because he speaks his mind. Heck, i mean, the guy is, hes lying a polar bear. Thats how much he polarizes and thats how he is for the market. Look, we all love honesty in real life. Honesty is so not the best policy for a fed chief. No disassembling. We just dont want it in their face. We dont want it in peoples face, particularly Congress People t. Chief has to go in front of congress to explain how the economy is doing and how the policies he puts in place balances pro job mandate. Somers is faye mussily content shu with us of anyone whop disagrees with them. He usually says theyre not smart. These hearings they could become a circus. They would create tremendous antipathy. How many Congress People would he call sfupd . Hou bo do, is that the representative from more ronville . Matter what he could do. What would make for terrific theater. Maybe president obama doesnt feel his life has enough drama in it. This guy is a drama man. We know someers wasnt happy with the current fed and made it known to the background of reporters. Some people said isnt it ironic somers withdrew his nomination without knowing what he might have had to say about bernankes policies . I dont think it was that much of a mystery. He had told nate he didnt like the bond buying bernanke was doing. He regarded it as in effecttual if not stupid. He could have said thats not true. Lets understand, you dont get this kind of view from a guy out of then air. And the president and someers love this background to get the points across. So i think we have to presume somers would undo everything bernanke was doing. Given that, during this period we had one of the greatest stock rallies in the history of the world under bernanke, any whiff of repudiation is terrible for the market. The combination of the background interviews, criticism of bernankes policies, along with somers bare china shop methods added up to a sense the great bull market would have run its course the moment somers got appointed. Further, bernanke has a disciple. Shes loved by so many economists and politician, smart, levelheaded, janet yellen, the feds current vice chair. She is a peace maker and a consensus builder. Which is exactly what investors want. So the contrast is stark. Now, i dont think that yellen will get this nod as its a little hard to believe that any president who likes somers could also like yellen. Those are worlds collided. But the fact is no matter who came ut in favor of yellen against somers, it didnt make any impact on the president. Its almost no one mattered other than the president , even though you read a confirmation process. Its even as if the democrats in the senate didnt matter. It was really strange. Come on, you got to admit this is a strange one. Its palpable senator warren on the in the committee, that her view couldnt get through to the president. She a former harvard professor with fre respect. Somers had to reseen from the presidency. He had disparageing remarks about the zlek intellecttual presidency. How could obama not have figured out he didnt have the votes for the guy. Still you might ask, isnt this bigger than the relief over somers and the distraction he caused . The answer is yes, it is much bigger because of the way the stockmarket itself works. Going into this weekend, many hedge funds i know had severe underwaiting in housingrelated stocks or they were shorting them. These managers envision a onetwo punch. First the fed meeting coming up, the feeling among the community is that if the fed didnt signal an aggressive taper, Interest Rates would go higher. If the fed were hawkish, that would hurt housing, too. So how do you lose being short housing in the second punch, larry somers, himself, if the fed didnt gap, the markets knew his appointment would. What an ideal short situation. Let say you take somers out of the equation, then you lose that short protection. So putin Hedge Fund Managers had to cover or buy in their housing related shorts, which is what happened at the opening, once they were finishing their buying, it went down the rest of the day. We got voracious buying in toll brothers, lennar, sherwin williams, lumber liquidators. So the short got spoiled by this preemptive resignation. But before we go overboard about somers, dont forget this market does have tremendous amount of underlying strength. We had a terrible tragic shooting in washington today. The type of incident that these people scared in speechless. A few years ago, i think this market would have tangledness. It didnt matter when obama made it really clear were going to have another debt ceiling showdown within a month. We are off to the races led by every stock that have been hammered since Interest Rates started spiking. Im not as sanguin as the markets. I fear chaos and dysfunction out of wauchlth given how horribly the market acted before, i dont know why you can possibly reach up today and buy stocks. Boy was it ever wrong, not without a possible government shutdown, you dont want to be reaching for stocks. The knee jerk reaction today did make sense. The appointment of somers was the key to the market going lower. He was a bears dream come through. His consideration was, therefore, a nightmare for the bears. So heres the bottom lean. In large part, hedge funds positioned themselves from the onetwo punch of this weeks fed meeting and seemingly appointment of larry somers. Wrongly, somers was viewed as a oneman wrecking crew for the stockmarket. His departure from the scene, the bears lost their best friend and the bulls live to play again. Brian in new york. Brean. Caller yes. Booyah, jim. Booyah, brian. Caller i just wanted to get your take on intel. There was a lot of move on the stock last week. Also, id like to get your thoughts on the Company Moving forward in the future. I think intel is a great company. I think its an inexpensive stock. I will never tell you not to buy. I think they have smaller chips that can do quite well. I think its not like the old days. Its not a great growth stock. Its got a good yield, a good balance sheet. And i think its fine to buy. Lets go to ryan in pennsylvania. Ryan. Caller hi, jim, my question is first Allegheny Technology announcing the seam of their tungsten business. I want to know what that means in the short term. I want to know what you think about buying or selling. At t was my stock when i started the show why . The tugsten and shortage of tugsten. Its a very strong met am. When they sold it, it took my breath away. Even ati recognizes you can not have your stock flat for so long. Atzy a good stock, though. We dont buy at 10 , it will pull back. Now i like it. It is shocking, though, they sold this division. It was why the stock was propelled a few years ago. How about gal in florida. Hey, jim, booyah from tampa, florida. My question is regarding stock ticker gol airlines, their new deal with delta, the gold cup and the olympics in a few years. The stocks latest rally. What is your opinion . Should i ring the register . No, the brazilian market has been horrendous. I like delta. I can get behind u. S. Air. I like continental airways. I cannot, the new continental. I cannot get behind gold. It is just too darn hard. This market is summer lovin all right. Loving that summer is out of the equation. Sorry for your loss bears. Coming up, boxing bucks. Were not talking mayweather, but cold hard cardboard. A major player snatched up a rival. Its stock is surge on the deal, but where should you put your paper . Cramer is in your cornerant later, ask for the best. Cramer is looking back to get you ahead of the game. All week hes tracking down the markets top performers to find out which stocks could close out the rest of 2013 strong . From video ga imse to vacation, dont miss this list. Plus, roi from rnr . Upstart Vacation Company all the way offers travelers more breathing space for fewer bucks. But after surging 25 this year, is it time to give its stock a rest or could it have you living the sweet life . All coming up on mad money. 6 why. This morning we learned packageing corporation of america, the fourth largest Paper Company in america is buying boise, the sixth largest for nearly 2 billion. Thats a premium. What grabbed my attention is the stock the acquirer, mind you, soared 5. 88 for 10. 7 . This is the enquirer. It seems to be happening a lot lately. The reason for this move, corporate is picking up additional capacity as well as uncoded free sheet paper. There should be synergies over the next three years. What really matters is that the transaction takes out. Thats a huge deal in this space. Two years ago, we saw something similar when they bought temple inland, a genius deal that caused its stocks to hire. The thing is, i would expect taking out one more competitor isnt good news for packageing corps, its good for every other player. I have to tell you, while i like what they are doing, this deal made my sal rate is for International Paper, a titan in the industry with 40 of the market share and a huge consal education in the industry. See, the paper is cyclical. Its still not where we want it to be. But in this industry, we care about the prices of paper and container board and demand is just one element of the pricey equation. You got to go back to economics 101. other part, if other component is supply. The individual companies have done a terrific job of managing their own supply and thats water caught costing a boost. International paper is shutting down the paper mill in courtland, alabama. Its a big move. This is a story plant, too. Last month they closed down its mill in arkansas and its taking on another 1 of our capacity. These are just the latest in a long loin of industry consolidation, a highly successful temple inland. It led to a real rationalization of space. It is working. International paper has implemented a series of price hikes and theyre sticking. The price of container board is up 100 a ton over the last year. That is a gigantic move, ladies and gentlemen. An internet expected in the current quarter. This is the time to boy a Paper Company. I believe International Paper is the best. Why i pay. Fabulous chairman ceo john feracci International Paper is going through a massive transformation. Since 2007, International Paper has invested itself in 7 million acres of forestry. It shifted from paper to industrial packageing with the stronger division accounting for over half of their business. Thanks, to these moves, International Paper now has a much more sustainable earnings and most importantly cash flow profile and the Company Controls about a third of the north american conitarian board market. Now, its been two years, but they did a terrific job in integrateing with synergies coming in well above wall streets expectations. Now i think the deal is really starting to bear fruit. Specifically, the benefits of all these moves are now trickling down to shareholders in the form of cold hard cash. Just last week, International Paper announced a buyback, equivalent to 7 of the companys market cap. This is a meaningful buy back. Not a charade. Thats going to add more than 30 cents to International Papers po cents per share. They raised their dividend, bringing it up to these levels. Remember for the yield alone, i believe this disribution boosts a different count one that management is increasingly confident about the future and also if the stock gets hammered pretty good, right . No wonder ip is less than its 52 week high. I bet the stock isnt done going higher. International paper, its well more international than the other guys. While 75 of the companys business is done in north america. The rest comes from overseas, including brazil, russia, india, chosen. Theyre opening up a lot more out there. They should benefit from the turn across the atlantic. You know i believe that term. The company last supported in july delivered an 8 earnings speed. That was thanks, to stronger than expected margins and printing papers. At 30 year over 84 container prices. Beyond that, International Paper plans to rake in 2 billion in free cash flow. This thing is a cash machine. Right now the stock is trading just 11 times next years earnings estimates. 15 longterm growth. Thats kind of ludicrous, isnt it . Yeah, that cheap. Beyond that, International Paper is trading a 7 before interest packs amortization basis. This is the best of breed to trade it a big premium. It should be trading to all the other container names. Not a discount. So heres the bottom lean. I leak whats happening with the acquisition of boise. Ing that should be good for the whole paper industry. Because it takes out another competitor. Pkg, while packageing corps is sort of in the news, ip is up less than a buck. Thats wrong. I think best of breed ip is the one to. Byebye buy. Stay with cramer. Coming up, best for the best. Cramer is looking back to get you ahead of the gain. All week hes tracking down this markets top performers to find out which stocks could close out the rest of 2013 strong . From video games to vacation, dont miss this list. My customers can shop around. But it doesnt usually work that way with health care. With unitedhealthcare, i get information on quality rated doctors, Treatment Options and cost estimates, so we can make Better Health decisions. Thats health in numbers. Unitedhealthcare. Man sometimes its like were still in college. But with a mortgage. And the furnitures a lot nicer. And suddenly, the most important person in my life is someone i havent even met yet. Who matters most to you says the most about you. At massmutual were owned by our policyowners, and they matter most to us. As you plan your next step, well help you get there. Certain stocks tend to become apoint inned as winners by the money imagic industry. Around this time, many of the bears stop trying to bet against these stocks. Sort of, ah, you cant boat em, join em attitude. Pretty much any employment manager will bring them into weakness only to tell their clients, hey, were geniuses. We owned it. As individual investors, you dont need to impress clients. We see the same thing happening every year right around now. So you can pry to profit from it. All this woke we will host a different sectors. The ones most likely to become apoint inned by wall street in the Fourth Quarter. You want to get ahead of that. Which stocks . What huge winners are safe to buy weakness at least until year end . Lets start with the consumer oriented names tonight. That group is up probably with the most of almost all groups. The best performing consumer stocks are netflix, up 230 yeartodate. Best buy up 223 . Game stop up 109 and trip adviser which has increased 73 . When hedge funds and mutual managers show the clients at the end of the year, they want to show these stocks. Otherwise their clients will say, what are you thinking . How can you not own netflix you moron in . Netflix is all about the revolution the way we consume media content. People want it when they want it. They just do. Thanks, to them, this revolution will be televised. More than hbo, by the way. 8 international ones. Domestic revenues were up 26 . Thats accelerated. Thats, well, i mean, thats actually their cash cow business. International revenue is up 155 every yeempl i think theyre taking the world by storm, people. What has made netflix so successful . Allowing them to bounce back from the 50 range over the 300 range now in three things. First, original programming. We talk about house of cards, hemlock growth. Arrested development, orange in the new black. And because net flicks knows what people like to watch. They have been able to write programing incredibly popular. We know this, all the series have been renewed. How about that . You think the big bo he moth networks are able to do that . Plus, netbook series, a record for internet tv. Theyve got some new childrens programing, to give a subscriber another boost. A lot of syndication and ample high quality original series of their own. The second element of the companys success, its essential for binge, i never heard of it until i heard it from reed hayesings the ceo. The bers are worried. I dont think thats an issue. The Networks Want old shows. They node that. So that new vowers can catch twup the more complicated tv shows that have become popular. As opposed to the one off comedies and dramas. You cant stop watching breaking pad. They put it on. Ill watch this interesting show. No, you need to go back. Ill watch the whole darn thing. The easiest way is via netflix. Thats one dpl. I would insert something about breaking bad right here. I dont issue a spoiler, more importantly, im trying to catch my breath from last night another episode. Finally, will is the international opportunity. Right now, netflix has 38 million total subscribers. Management thinks that can grow somewhere from 60 to 90 mill