What goods what merchandise, people are actually buying in stores. So on a hohum day where the dow gained 14 points, s p declined. 06 nasdaq did 1. 1 . Lets see how we can profit from the clues this market gives us every day, including today. I want to start by revealing a methodology i developed a long time ago, when i was a Hedge Fund Manager trying to figure out how to come up with new ideas that were off the beaten track but still had tail winds behind them that others might not know about. Bullish tail winds that produced long term gains. As i mentioned fridays game plan were in the heart of retail reporting season right now. Many big retailers tell you whats selling and whats not. During this period i try to find out what trends stand out as investable so i can pick stocks within those trends thats been my stock and trade. And more companies are doing well versus the performance of their own stocks. Remember companies and stocks often diverge. Thats often where the most lucrative ideas come from. So lets take a snapshot of the last 24 hours of earnings. Try to put together a mosaic a mosaic that can give us some ideas that just might work out ultimately as stocks in our portfolios. To begin with last night we got a disturbing report from Urban Outfitters. Heres a company with three chains people for teens, anthropology eclectic housewares and wedding dresses. And Urban Outfitters. Urban had been experiencing a huge turn around. One or two of its divisions always seemed to be sputtering. Late last neither stars aligned. The whole Company Began to deliver terrific growth firing on all three major cylinders. That is until the last few weeks of the quarter. When anthropology simply hit a wall. It was a huge shock both to wall street and to the company itself which expressed ex strooems stream disappointment and surprise about anthropologys performance. With the stock down 15 today, its obvious investors have totally turned on urban and given up on it. But anytime a stocks down that much in one session with a good Balance Sheet and long term equality management you do have to stop everything. You have to listen to the call do the work and figure out whether you might be looking at an opportunity when the smoke clears. First you need to ask yourself is the problem something that can be fixed or is it a longerterm structural issue that could last for more than just days weeks, months or even years. I am tempted to say that the problem at urbans Anthropology Division is temporary. Because on the Conference Call management told us the problems in the division came in those last two weeks of the quarter and that things got appreciably better in may. I thought the stock mitrally a little bit at the end of the day on that. There are real credibility issues here now. How come urban didnt see this disaster coming . Why didnt they signal there were problems . Weve seen two other retailers that disappointed last week in a similar fashion, kohls and dillards. They were both initially crushed. However, theyre beginning to regroup. So my judgment . Maybe kohls and dillards are the m. O. Here. Urban outfitters i think, deserves the benefit of the doubt. But the pattern has been you have to wait for the stock to settle down before you can pounce. That process can take more than a day. Still, i think urban, which has a huge buy back will be in there buying stock with you if you take plunge along with the plunging stock. At the same time, i bet the company will adjust and get things right going forward. Piet have distribution issues this quarter that seem quizzical to me. Urban outfitters will be good to buy later in the week. The company has lost a lot of faith on wall street. It could be a long slog back to its highs. Next up we have walmart which also report add very weak quarter. Unlike urban, the expectations here werent that high. That said people did expect the relatively new ceo Doug Mcmillan to give us something to hang our hat on just a teensy weensy thing . Nope. We got nothing. Nothing. Now, i think walmart stock can bounce from its decline of more than 4 today. But for the life of me i cant give you a reason to own it except its come down a lot. Thats not good enough in the suddenly hard market for retail stocks. Then theres dicks Sporting Goods. The quarter, subpar. Caused the stock to drop 5 . The shortfall was almost entirely caused by the companys golfrelated business. All well and good maybe, right to get rid of it . Huhuh. En like Urban Outfitters i dont see any possibility of a comeback. You own Sporting Goods we dont need dicks. Id rather have you buy nike or take a shot on under armour which is going down in part because its valued as a domestic play and people like the international stocks. Nike is much more international. Now for retail that actually did well, weve got t. J. X. Heres a company with a terrific mix of t. J. Maxx and housewares from its sucks if home goods chain i like to shop at. I like everything i heard. The problem here is so did everyone else which is why the stock rallied 1. 93 or almost 3 . That gain today almost makes it too difficult for me to recommend it at these levels since the upside may have been stolen by todays action. What was of note here which had to follow a was that home Goods Division orders well for the stocks like home depot, which also reported today. Now, the stock i call the despot, home despot because of its power in the industry delivered startling earnings. An amazingly good quarter. It immediately trended higher. But then really some hideous profit take came in home depot stock ended up being clobbered. Causing down nearly 2 in 112. This freaked people out. I talked to a lot of portfolio managers. They were aghast at this. Last fridays game plan home depot was indeed priced for perfection. Unlike almost every other retailer except for almost every retailer home depot truly was priced for perfection. It gave you perfection. But when things are already priced on perfection even perfection is not good enough. Lets step back and look for larger themes. Were trying to come up with an investable idea from all this melange, all these different stocks. Home depot. What did they tell us was good . Tools especially power tools. Indoor and outdoor garden equipment, decor, lighting plumbing appliances. They all did well. Despot breaks down pretty minutely whats selling well in the stores. Its an amazing Conference Call. You got to go listen to it. You go and listen to all the stocks where these themes could be relevant. I checked masco, kitchen and bath. 52week high. Like tjx Everybody Knows about it. I cant give you any insight. I looked at whirlpool for appliances. Its high. Then again i was on that Conference Call not that long ago that they reported. It was miserable. Then i hit up Stanley Black and decker. And i have an aha moment. Dropped less than a buck from its 52week high but dominates the tools and power tools business. When home depot says they like tools theres a couple of guys in there. But Stanley Black and decker. Heres something i used to hate about Stanley Black and decker they like. Its got major european exposure. Europe is turning back. Business getting better. Its a positive now. We know not just from home depot but also from tjx, people are spending money on their homes. We arent making a decision based on just one store. Dont forget Stanley Black and decker reported a remarkable quarter not that long ago. Now we have to ask, is this supported by reportable data . Housing starts were at a sevenyear high. We also know from home depots Conference Call that Household Information is beginning to grow again perhaps as member as 1 million new households. Thats a huge deal. Weve been stuck around 850,000 for ages. We havent been creating new people new families. Home depots brilliant cfo reports if you look at people between the ages 18 and 34 nearly a third of them are at home with their parents. If they were all to leave their home nest, like my nephew thank goodness she said. Thats 4 million households to be created. Im excited about what the future may be for our business. House formation has been terrible in this country for a long time. Now we add up the reports. Apparel seems too hard although im willing to play Urban Outfitters for bounce later this week. Other categories didnt jump off the page except for hard way. Weve got a pure play. The bottom line weve got an idea people. I would buy Stanley Black and decker if it goes down tomorrow before lowes has its Conference Call and tells us tools are selling well. If lowes is strong i might shuttle back to home depot itself. You can reverse again given the brutal strength and late may selloff. Especially if we catch a scaredy cat downgrade from some analyst who takes his or her cue from the action. As so many lamely tend to do. Peter in illinois, peter. Hey, jim. With the European Market being bullish, shall i sell my 100 shares in barclay stock . Barclays bank . Im not going to fight that. Im not a big fan of barclays to be honest. Its moved up but not where i want to be. If you want to be in bank you want to be in the bank that Warren Buffett likes, wells fargo. Dont care. I bank with warren. Duval in new york. Are we on mr. Cramer . We are. In light of the recent drop of nearly 20 in biotech, do you think its a good time to turn west . I dont know man. You know what im going with here . Im got going not with the ones that are down but the ones that are up. I dont know if you caught today, a milestone was reached. A stock we recommended at five in our first year of this show closed at 504. That stock is regeneron up from 5 to 500. It aint done. I go with regeneron. Look for the goods . Today is the day to evaluate big market trends. Im here to help you figure it out and spot some sweet deals. Hey, where was this when i needed it a couple of weeks ago . Mad money tonight. Biotech up nearly 40 this year. Can this United Therapeutics . Keep the healthy gains alive . I got the ceo. Then twitter has put investors on a wild roller coaster ride. Should you bother with the stock or is the risk of another disappointing quarter worth the potential reward . American airlines. Summer travel season. Can it put some wind beneath the airlines wings . Stick with cramer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer madtweets. Send us an email or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Whats ahead for health care titan Johnson Johnson . From pipelines to patents and new challenges. Before the ceo talks toon lifts, he talks to us. Squawk box tomorrow 6 00 a. M. Eastern on cnbc. You have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . There is an ancient rhythm. [ ] that flows through all things. Through rocky spires. [ ] and oceans swell. [ ] the endless. Stillness of green. [ ] and in the restless depths of human hearts. [ ] the voice of the wild within. After the vicious selloff of biotech a few months ago this quarter has turned things around. Down only 4 fritzom its peak. United therapeutics uthr which has rallied nearly 40 year to date. A company that develops drugs to treat the unmet medical needs of patients with chronic or lifethreatening conditions. They have four drugs on the market, all of which help treat pulmonary arterial hypertension. The companys got a major pipeline cardio pulmonary diseases, monochromal their nas fight carnes and antiviral drugs. United therapeutics reported in late april. They reported jai began ticks ticks. Since then its been making a big comeback. At 178 its still more than 10 off its high. And given that the stock trades at nearly 15 times earned run estimates i have to wonder if its a bargain. Tonight weve got a chance to take a closer look at dr. Martin rothbod of United Therapeutics to find out more about the companys prospects. Welcome to mad money. Good to see you. Weve had one other company like this. I just want to gave little bit of background. Your company basically started as a mothers race for the cure. Thats true. Thats true. Our youngest daughter developed pulmonary hypertension. There were no medicines approved for it from the fda. She was going to die within three to five years. Fortunately today shes 30 years old, sheath healthy and our medicines are helping thousands of other young ladies too. Thats an amazing story. It wasnt like you were a biologist, you had worked at sirius satellite. Irwas head of sirius xm satellite communications. But when your youngest daughter gets this kind of a diagnosis, i was going to stop everything i did and save her. Now there was something on the market but at the time it seemed like it was worse than the actual disease in terms of how debilitate your daughter. The drug had been approved you had toin fuse it into your blood vest tells 24 hours a day 365 days a year wearing a pump that had to be worn in a fanny pack covered by ice. Our latest drug approved by the the fda is a pill that you just take either two or three times a day depending on the severity of your illness. And this pill does the same thing that whole big pump did. This is not a niche area. Its called a rare disease but still there are over 30,000 people in the u. S. Alone with this. How are you finding the people who use this . We want to mention this. Last week we met with the people from ibm who have watson. They told us one of the Different Things is people dont necessarily at the doctor level know what they see. How do you find the people diagnosed and hooked up with those patients . Its a great question, jim. One of the things weve been doing is helping the patients association. Pulmonary hypertension patients association. Weve given them grants so they can develop peer Group Counselors and support groups throughout the country. So all of this patientcentered advocacy, sort of like hiv back in the 1990s. Right. Has made the pulmonary hypertension patients some of the most aware and most activist of all the rare disease patients. Okay. I dont want to just pitch into that because youve got other drugs. The cancerrelated projects seems like a pipeline thats not eventualed in this stock. It actually is not, jim. And i think that has missed peoples view because theres so much attention on United Therapeutics as a pulmonary hypertension company. We got approval from the fda for the first drug they ever approved for neuroblastoma an ultrarather paid tick cancer. No medicine had ever been approved for it. That drug has been approved. I expect that drug will do at least 100 million a year. Thats definitely not in the stock. When i tried to do my background i went to your web site. At first i thought, okay, well this is maybe i just put it in wrong. Maybe i got to sothebys or a modern art gallery. You dont want your company to look like the other companies, either, do you . Jim, youre very charitable. Some people come to our web site and thought it was hacked. But you dont want to be the pfizer, the bristolmyers. We pride ourselves on being different. Our mantra within our company is to identify the corridors of indifference where the pharmaceutical companies dont go and then run like hell down those corridors. So weve been able to generate Gross Margins of 90 and very successful penetration of our disease markets by not having the huge overhead and baggage and bureaucracy of the big pharma. One of the things on the last call that was confusing was like the analysts i think you dont report in the traditional way. And as a fire side chat they was on where basically youre just saying look, guys, you dont know how to look at my company. My company is we are getting patients per month. Thats how you should look. The numbers were pretty stag gathering erring you recruit every month. We have a lowerpriced drug and higherpriced drug. Lowerpriced has twothirds market share among the pulmonary hypertension patients. The higherpriced drugs is adding 100 patients every month. This translates to a growth in the revenues of 100 million per year growth year after year after year. Thats our highpriced, highmargin drug. Some people were talking about a patent cliff you have to get over in 2017. Our patent is good until 2017. But thats for only one of our four drugs. So that affects the revenues only affect one drug. Furthermore, with regard to that drug that has the patent cliff, we have a litigation going on on that patent cliff that we believe the patent life of that drug should be good until 2029. How do we follow along with that . How will our viewers keep up if they buy the stock . Every quarter we report on it, on the status of that Patent Litigation going on. But i think what will ultimately happen is that patent relates to the very first drug that we got approved back in 2002. Right. That was a drug that had to be delivered subcutaneously. Very difficult for the patients. Most of our patients now take drugs easterly drugs either orally or inhalation. When the litigation ends therell be nothing there. Its a false fear. A red herring. That is terrific. Dr. Martin rothbod, chairman and sco of United Therapeutics, uthr. A fascinating company. Im glad we got to have you on. An inexpensive company in a group where the valuations are sky high. Mad money is back after the break. Coming up clearing the air. From hacking fears to rising fuel prices theres been some turbulence in the airline industry. But can the Summer Travel season help American Airlines soar above this rough patch . Cramers got the exclusive with the