We can draw connections to the dollar and bonds and soft macro data. Whatever you want to explain todays decline. Dow sinking 195 points, s p down 1. 01 . Nasdaq plunging 1. 64. I know i have heard all those consents bandied as the scourge of stock owners who got laid to waste today, pulverized. But i think this market is all about eve. Yeah. The original eve. Who was tricked by the serpent into eating the forbidden apple from the trees. And the whole investor class has been paying the price. The serpent in this case is that apple quarter. The one that seems so tempting to eager investors that they couldnt resist buying the stock ahead of, during and right after earnings. Reaching to the skies for it. Even as i begged you not to. Now the investor gods are making every stock pay and the pain wont end. The house of pain. Until these feckless apple traders given up the ghost. Sell sell sell. And then the stock bottoms. Hey, look i was going to go with the isaac newton thing. What goes up must come down. But this selloff i dont know. Seems like its more biblical than newtonian. Because in science only the apple takes the fall. Here everything that went up seems to be going down. So why dont we offer some perspective, explain why this apple is so important to the entire market which does feel on very shaky ground. If you own stocks, you own them because you want them to report numbers. Both top line revenues and bottom line profits that are better than expected. The analyst numbers. You want the sales to be global and promising. The earnings to be thick with expanding gross margins. Then you want analysts to guide the estimates higher because in biblical terms thats the holy grail of higher stock prices. You want stocks to really get rockin . Throw in a big juicy dividend boost and an awesome buy back expansion. So what happened with apple . It did all of those things and yet since the quarter the stock has now plummeted almost ten points in a straight line. Now, lets make this apple story even more juicy. Lets say that it sells at dramatic discount to the average piece of fruit out there as represent by the s p 500 garden. The negative action here stands the whole rationale for buying stocks on its head. If you get everything you wanted and more, like new products that arent even counted in the revision estimates new relationships like the one with ibm, that can bring out earnings later in the cycle and 200 billion in return capital, thats billion with a b and apple cant go higher. Then what does that say about every other stock out there . You should have faith in nothing. Nonstocks would benefit from the better dollar and nonstocks that go up when Interest Rates rise and nonstocks that win when rates plummet. Have faith in nothing. And thats what you saw today. Ever since we swallowed the apple the whole race of stocks does seem cursed doesnt it . Too simplistic, not for this fundamentalist, a market that doesnt seem to care about the fundamentals of the most Important Company out there in the world. Well, thats just inherently treacherous. Lets throw in some technicals. We know that players can be serpents too and we have a cobra striking at everyone who thought apple stock could hold at what turned out to be levels where the fangs levelled. Spreading the poison to those who thought it was safe out there ten points ago. Now, im not overlooking the power of actual raw facts like the strong jobless claims we got this morning but i would point out these days all data is subject to immense interpretation. Right now again i believe somewhat because of the mack daddy apple that interpretation is being skewed to the negative. After all, didnt the fed reiterate it could raise rates when it wants to . Not that that plan hasnt always been in the cards. Maybe this weeks jobless claims numbers dispositive, so fewviewed through the prism of the fed thats bad. We have weakness in the dollar because europe is getting stronger. Any region thats stronger than the u. S. Is going to draw capital and thats happening. You get the sea change i keep harping on. The one that i told makes me uncertain and feel queasy and sick in this market. Kind of like if you were thinking domestic because you believe the dollar is going higher and hurting our earnings then think again. I see things out there i dont like. I see stock that are reporting tremendous energies like apple. Hey how about a stock like amerisource, it rallied more than 8 bucks on good news. At least in the morning. Then it gave up the ghost, closing unless than two bucks. See stocks Like Cardinal Health another member of the domestic prized cohort a pretty good number and get mowed down like a british soldier on the first day of the battle. Retailers were trying to hold on to meager gains but oil going higher is bad, because the consumer wont spend more without that spare change from gasoline. Meanwhile, harmon and infotainment company, makes the innards of your car sound like Carnegie Hall reported an ever so slight miss. While the companies on the show later on to talk about the business, people would rather shoot first and sell down ten bucks and listen to the ceo later. Heaven help a company that actually disappoints. Celgene has some drugs out there that i thought would help the earnings. But they didnt. The negative pin action, it mows down all of sell sell sell. And yelp a company that clearly belongs under someone elses roof. Maybe google. Perhaps yahoo . Tries to go it alone and sounds confident on the Conference Call that was met with universal one star ratings. Or even a half star. Never see that at a restaurant. Thats right yelp cant take out ads. And while theyre the online yellow page the ads are overpriced and the listings are being given away for free, hence the 23 decline today. Oh, believe me people will be calling yelp a trend right . When they parse the hideous guidance of internet darling linked in. The house of pain. Dont buy. Dont buy. They put in a report that sent the stock down more than 20 in the after hours trading. It took me breath away, if not my voice. Maybe expedia can mitigate the damage, but i dont think so. But even steady Eddie Colgate could couldnt deliver. The strong dollar played havoc again. If you believe the green back has peaked we have to deal with previous consequence of the rise. Now, what redeems this paradise lost market . What can make it all work out . Okay, ill give you a couple of positive scenarios and everyone is way too negative. If oil stops going up every day as it has been and instead takes a breather or goes down, we stop distaping the consumer driven stocks in companies that use a lot of oil. Two, forget seller fatigue where people say enough already, things arent that bad, that could happen. Three, if we find new leadership like in the banks, even in the phone calls like skyworks, which reported a rip snorting bullish number this evening. Take overor two that would help. Maybe a little upside surprise in a biotech. But lets cut to the biblical chase. We need an apple to rise up from the ground a tall order, because this ones falling from the tree and been eaton. Oddly enough though, i think that could be a likely scenario. I actually think you should buy some apple tomorrow if you dont have any. I said it would go down for three days after it reported. I told you not to buy before the report, i said wait three days after and then it would try to find some footing. Lets take a look see if that doesnt happen tomorrow. I know that were not supposed to get any rest until day seven, but the investor buy will give you a rest bite. If apple bottoms other stocks will fall into line. The nasty sell serpent will get smoeted and then all can be kind of at least okay in the garden of eden once again. Anne marie in new york. Anne marie . Caller jim, thanks for tank my call. My pleasure. Caller im interested in seger fair for the dividend, however, i need your health because the growth rate or do i have to wait for a pull back to buy . You know what, Interest Rates seem to be going higher with i could drive that stock down. I have no problem with buying some cedar fair right here, right now. How about adele in florida. Caller hi, jim. Thanks for taking my call. And a big booyah to you. Booyah back at you. Caller from sunny florida. I have been a long time follower of your show and thank you so much for bringing a wealth of information our way. I have friends who tape your show every night. Well, thank you. Remember its a show about education. I was on twitter today and people were pretty much saying i should retire and go. Work for the eagles. Okay. Caller take more vacations and relax. I need to ask you a question. I have been a long time investor in baidu. For the past five years, i would like to have your input of the stock. We find theres an awful lot not today after earnings but generally a lot of volatility trading this stock. We think its a good company but youre the pro. Im concerned. Adele, im concerned. This Chinese Market is overheated. I know baidu has fallen 50 from the top. I think you should take some of that off the table, adele. I dont want you to get hurt. Why dont we go to robin in oregon. Robin . Caller jim, robin in portland, oregon. I love portland, whats up . Caller jim, im glad youre back with your bells, whistles and they serve as my daily dose of giggles. Im calling about cognex and they have applications in a limited number of high speed Manufacturing Processes across Numerous Industries and it has a pretty impressive client including apple and sony. Right. Caller since i bought a bunch nearly two years theyve doubled in value. Its fabulous. Caller i dont want to pull out my original investment dollars. I want more shares because i think this company and technology are winners. Well, look, i think they are. But the report is may 5th. I dont know how long this selling squall will last, but theyre taking down some good stocks. Lets wait until after we the quarter. All right, apple is the key to this market right now. Keep your eye on it. If it bottoms then maybe we can bottom and all will be fine once again in the garden of eden. On mad money tonight, its behind the walls, on wheels in the air, eaton just reported. Im looking to see if it has more power. If youre thinking of buying one of the beaten down stocks you want to hear what i have to say first. Believe me. Plus, the disrupter changing the way you think about booking travel. My series defining the future continues with the ceo of Hotel Tonight. Youve got to see this. Stick 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. For the last few days i have been telling you about the sea change in the market where a weakening dollar among other things is bolstering the stocks of u. S. Companies that do a lot of business overseas. Which brings me to eaton. A classic industrial with huge industrial exposure that manufactures electrical control products, hydraulics, truck transmissions and aerospace systems. I have liked them for ages. I own it in my Charitable Trust and last night they reported a good quarter. Off the 98 cent basis, some people thought it came in late, but the company is facing some serious strong dollar head winds but thank you managed to off set it with cost controls and improving margins. Witness the 140 basis point increase. And plus eaton is paying you a bountiful dividend 3. 2 . Lets look with sandy cutler the chairman and ceo of eaton and a straight shooter who consistently comes on the show to talk about the result, good or bad. Welcome back to mad money. Good evening, jim, good to be back tonight. Thank you, sandy. Two big segments electrical products and Electrical Systems and as much as. They both had fabulous margins. We have heard a lot of companies didnt have a good march. What is your company doing different than the other guys . Well you know i think as Many Companies and we too experienced a pretty slow january and february particularly here in the u. S. And we were really pleased to see it recover in the third quarter. Excuse me n the third month of the quarter. We have been completing the integration of cooper and were really delighted with the front end synergies, a positive response from our customers and i think that was evidenced as we saw march come together, up some 12 in bookings in the month of march over last year in the electrical businesses. Sandy, a lot of Industrial Companies after they reported took down numbers pretty big. You were i thought somewhat bold. You really pretty much left the numbers intact. Is that because you saw good momentum in april or because the dollar may have peaked . Well our view is that the only substantial change we saw was really in the fx which is more negative this year but pretty minor adjustment as you mentioned, down to where consensus was. We remained confident that our combination of new product introductions the 150 million of additional synergies were getting from the cooper acquisition this year, plus 35 million of benefits and restructure we did in the industrial segment last year and then just a darn good cost control that our team has exercised around the world are going to allow us to continue to drive record results this year. I talked to you enough about innovation. I thought when i looked at your analyst day the most impressive thing youre doing brought in a deep presence of lighting which turns out uses an awful lot of energy. Can you talk about some of the products you have introduced in the last two years that are making a difference to your bottom line . Yeah. One of the real benefits of the cooper acquisition is were now in the lighting business and as you know thats a very big user of energy and commercial in commercial buildings and many other types of installations. I think one of the Biggest Technology innovations i have seen since the plc replaced relay panels some 40 years ago in the industry. We have introduced that across the spectrum. We are quite pleased with a new introduction even in the last quarter. Something we call the night falcon which brings l. E. D. Lighting to outside architectural lighting which is the providence of metal lighting. Another example we think that this whole industry is going to convert to l. E. D. Its over 50 of the sales in lighting are now l. E. D. Some categories as high as 70. We have raised our investment after we bought cooper in this area. I think its another reflection were creating above average Market Growth through really Unusual Energy saving opportunities for our customers. You were very bullish in both aerospace and trucking. Feeling good about those because of long term secular trends . Yeah, aerospace is i think we have seen the growth in commercial transports continues to be strong from the big majors. We are seeing year over year increases in line rates so very strong driver there. Were pleased that the tenor of the after market is stronger and then as you mentioned in the north american vehicle marks be they like Light Vehicle or heavy duty conditions are good. We think on the nafta heavy duty truck side well 330,000 units which is a high since many many years ago. Pretty good conditions in the u. S. Same picture outside of the u. S. Things are slower there so that trend hasnt changed much. You are seeing not big Infrastructure Projects but nonresidential and residential being good. Again, i think that you must have a good book of business because im not getting a similar read on strength. Is it you have certain products that are selling right now into the residential and nonresidential that nobody else . Yeah, i think resi is choppy. But Lower Oil Prices are good for residential. Gives people more money for mortgage payments or considering starting a new house. Whether it be the Lighting Products as i mentioned l. E. D. Also goes into residential. Whether it be really some of our leading Technology Toward combining short circuit and art fall protection for homes we have leading products there. On the nonresi side the institutional side the waste Water Treatment side, all fairly active. What we havent seen are the very Big Industrial projects. Thats where the softer side of nonres has been here in the u. S. Finally auto. You seem bullish in your outlook for auto too. Yeah, i think particularly here in the u. S. Where, you know back in the 2008 2009 dark days many people wondered whether wed ever see this market get back up to 16 million units. We have our head over 17 million. Were quite bullish again about some of the technologies we have introduced here that continue to help with fuel economy as well as emissions. Those are two of the real key drivers in the marketplace. So Pretty HealthyMarket Conditions here. China has been Pretty Healthy on the vehicle side. The Light Vehicle side, car side as well. The disappointing area in the vehicle markets is south america where clearly the economies are in much more trouble than people had anticipated just four or five years ago. Only down 1 day, i want to thank you sandy cutler for coming on. Chairman and ceo of eaton. Thank you so much, sir. Thanks, jim. Okay, look, you know, Everyone Wants to just sell all stocks. Does that really make any sense . Lets just stay calm, ride through this. Mad money is back in a little bit. Coming up hotel heaven . Move over expedia, priceline. Theres no easier way to travel in a moment than with Hotel Tonight. Find out what this disrupter is doing to turn the Hospitality Business upside down when our week long series defining the future continues. Is it time to buy the oils . I kept hearing that all over again. I mean, i have to give you severe judgment here. The answer no. Why . Because its too late. There was a time to buy the oils. And that time is now passed. Got a lot of chatter today about snapping up the oil st