Today. Nasdaq inched up. 38 . Some of it is because all we ever do is look at stocks through the prism of the federal reserve. Every day we guessed what the fed will do and every day we make it harder and now that its almost upon us this discussion monopolizes it. We know employment has been strong. Theres no reason to keep shortterm Interest Rates too low. But its how companies are doing like mine. The amazing race would be the last thing you do. I cant name a Business Group doing better than it was six months ago. That is if you thought that Employment Matters all that much because employment wasnt as strong then as it has been in the last few months. They havent missed anything. If hiring is their gauge, still, though, the stock markets rock because anyone that follows individual stocks knows that things just arent so hot. Individual Sector Analysis says things arent that hot. All right. Not that hot. Thats not a technical term. Its a term that explains where the economy is right now. Thats where the confusion comes in. How can the cooling economy produce more jobs . The answer is simple. The businesses im looking at now will be laying off more people than theyre hiring at this pace. Thats why everyone is focused on the statement that the fed issues when it makes its decision. The fed is cognizant of the economy. That means its going to take its time until the next rate hike. That wont stop them from saying its going to be this week but it would take the next few months off the table for this parlor game which could cause the christmas relief rally from an oversold position beginning this wednesday afternoon. Thats only part of the reason why the markets seem to have disappointed them. The other explanation, the number of stock going up themselves. I read it each day as part of my paid side of the street. Com. He said the action has been far worse than it has appeared. It has been an extremely narrowed market and thats been covered up by the major indices. How narrow . The top ten stocks in the s p 500 are up at an average of 20 . The remaining stocks, they are down an average of 3 . Stunning, right . Further only 23 of stocks are trading above their 200 day moving average. Most stocks are losing new money and have been for sometime. The saving grace, this divergence with the vast bulk of stocks doing poorly has been going on since july of 2014. The concern, he thinks that the stocks in the major indices and the ones that are up 20 have to come back to earth before they can advance. I dont want to be that negative. Why not . If the fed gives the right statement this market will most likely behave like a coiled spring as it did in Late Afternoon today and there will be tremendous regret if you decide to dump the winners in advance of a benign coming wednesday afternoon but to know that a few stocks are responsible for that advance, that doesnt seem right either. I can tell that last week was poorly received by reading my twitter feed. I got repeated blasts that if cramer doesnt like it then its time to buy. However, given that i liked a lot of stocks until the big Labor Department employment number but a nail in the coffin of lower rates i have to say did you bet against me all the way up . How about the concentrated stocks. The difficult thing about selling them is they have tremendous scarcity value. What is it based on . Unlike so many stocks and so many groups these companies and im talking about facebook and amazon and netflix, big winners all are truly doing better than they were six months ago. Its selffulfilling. Theyre going high because theres far fewer companies that merit being valued in this environment than six months ago. The fundamentals of downturn are going down for the vast majority. What else makes me a little less negative . They announced it last week and pfizer allergen deals. Just when it comes down to it. These mergers will yield better prices. Just not yet. Balanced against the combined forces of some stock doing well and some to get their share Prices Higher is the news flow that brings the bulk of the apartment down. Global growth almost nil. Much of south america is a disaster. Terrible. Europe, japan, russia no help whatsoever. Many of our favorite stocks and sectors like apple go into the products and anything oil have stalled at best. Plus we had this new junk bond credit crisis getting worst before it gets better for the Retail Investor that bought mutual funds filled with the best kind of bonds and loans betting that the diversification would somehow ease, produce good results and make redemptions okay. All of these forces combined to make it so we do rally and have an oversold position like this today, we cant maintain any momentum which is when they ultimately start giving up their games. Thats been the pattern over and over in 2014. This market feels bad because Many Companies arent doing that well and the few in good shame seems high. If you arent at least a tad cautious in this environment i think youre being arrogant or clueless or both. Morgan in new york, morgan. Before we begin, im a big fan. Long time listener, first time caller, i know shake shack was very overvalued in may but so was chipotle, what sit keeping shake shack from trading higher. What happens is people compare the average unit volume and how much the unit makes of shake shack versus all the other restaurant chains and its just the volume is good but the valuation of each store is so ridiculous based on the apple to apple me trick that its too expensive. The stores arent worth as much as the stock indicates. Lets go to anthony in new jersey, anthony. Hey, jim. I keep scaling into xom. Will it ever rebound. Youre having longterm after a Climate Conference where they basically said fossil fuels are going away. So the answer is no, not longterm. Were going to be changing our stance throughout 2016 on fossil fuels because of what happened with climate concerns around the globe because they basically decided its the end of fossil fuels and if youre thinking for your kids, you dont buy them. Panic is not a strategy. Patience is a virtue. The market has seen a tremendous rally but i still believe the caution is warranted. On mad money tonight has lululemon overextended to the down side . Ill see if its a good fit for the Holiday Season. Plus some investments lurking in your portfolio. You need to be aware of this. Ill give you the rundown just ahead. But first the merger between some of our countrys most recognizable brands. Coming up, joining forces . Rubbermaid announced a deal today creating the 16 billion newell brand with names such as mr. Coffee and elmers can it rule the aisle of retailers like target and walmart . Cramer sits down with the management behind the merger, next. Dont miss a second of mad money. Follow jimcramer on twitter. Tweet him madtweets. Send jim an email at madmoney cnbc. Com or give us a call, 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . We need to be ready for my names Scott Strenfel and r im a meteorologist at pg e. We make sure that our crews as well as our customers are prepared to how weather may impact their energy. So every single day were monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. During storm season we want our customers to be ready and stay safe. Learn how you can be prepared at pge. Com beprepared. Together, were building a better california. This morning we have confirmation of last weeks big m a rumor. Its buying jardon for 15. 5 billion to create newell brands. It got slammed today down 7 . But i think this deal makes a ton of sense. This combination will give tremendous heft to the point where the new brands have a lot more Bargaining Power and negotiate with the retailers that sell their merchandise. We got to speak with the president and ceo that will stay in that job of the deal. Then we spoke to the founder and executive chairman who will be a board member of combined newell brands. Take a look. First, congratulations. We made a lot of money for our viewers. You are putting together a company that will have how much aisle space in a typical store that our viewers visit . Its a 16 billion company and well have 10 billion of revenue when we combine the enterprises. Both of which are performing strongly in the marketplace so this happens from a position of strength and youll find us in virtually every aisle in either the mass merchants store with the exception of the food aisle but youll find us in virtually every aisle in the rest of the store from Sporting Goods through to the general merchandise section. I know you have strong partnerships with retailers but theyre very powerful. This does give you more leverage than if you were separate from each other. Through scale well be able to lead better the development of the categories through our retail partners. And that strategically is the ambition we would sit and where we hope to leverage scale. Through collaboration with with retailers to increase the growth rate and the profitability in the categories across the total enterprise. Now people are used to you coming on the show and used to generating an amazing return. So some of our viewers are saying if martin is done im done. This is just a great run. Im going to sell. What do you say to them . Im going on the board of directors and ill help mike anyway that i can. Im leaving a significant amount of my network in the company and i see a lot of upside. If i didnt see a lot of upside i wouldnt have done this transaction. Mikes the first guy i met frankly. He has the same kind of vision we do and creating efficiencies to be able to drive product innovation. We see a great fit and if we were the Bigger Company we would probably be the buyer. Were very happy and, you know, this is going to be a great story for many years to come and i think that combination is going to get you there faster. One of the things that you have done. Are there products that you see that youll be getting that you already had great ideas for product extensions. Martin has done a great job but maybe more can be done . Both companies will be stronger together than they would apart. Theres a number of intuitive combinations in our portfolio. What our people want to hear about. Sure think of the combination of the leading baby gear brand in graco with the leading feeding and soothing brand in nook. This is a phenomenal combination in baby gear. You have combination between rubbermaid and food saver. Were launching fresh works that will allow you to extend your produce life longer and reduce the amount of produce and fresh vegetables and fresh fruit thrown into land fill which is a tragic waste but martin is ahead of us quite frankly with food saver. Its a 250 million brand that takes a different product approach to preserving and extending life of protein but its the same principle. Same underlying principle. So you can go through the portfolio. You can look at the commercial products and Industrial Products with rubbermaid products and great one there is. You can look at the kitchen appliance business. And the more time you spend unpacking it the more you see. Theres two things that are category synergies and cross sale opportunities. Average containers can tap into the distribution power of coleman or k2 or even a brand to create assist access for these products and channels we wouldnt reach. So those quite frankly we havent even figured into the algorithm for this deal that are out there as opportunities beyond what we would assume. Let me ask martin since you were on last. Martin was a little skeptical. This is the ring company and you have been in it now and people were skeptical when you bought yankee candle. I spent my whole life dealing with it. Yes, including me. When we first met. Tell me what you have discovered and low hanging fruit. Well, we love the business. We think its a very interesting business. The low hanging fruit here is the again the fit. Its a whole new distribution channel. When you get to a certain size you need to keep on finding new ways of delivering your product to a consumer and in this case you take the parker pen business. We do these momentos and theyre great for gift giving and thats going to be a great new product to put through the channel. But what have we seen . No surprises. We do our Due Diligence very thoroughly. Theyre doing to what they said they would do. Theyre lined up to have growth and the more products we put into that channel the more organic growth will be driven. A lot of people will be watching and listening about this high yield market. You worked hard to keep it so you did not get into that category. We have always been Investment Grade and we intend to always be Investment Grade. We quickly delever right to our target leverage ratio. So were really pleased with how the combination is worked. It creates a tremendous amount of value for both shareholders. It was important for both constituents to see the value in the deal. In year one high single appretion and year, year five because of double synergies. I dont want you to name any now. But could there be you said 80 are core. Could there be some that if you wanted to raise capital quickly in the first year you could do it. I dont think well need to do that. We can hold our dividend and increase it with earnings. I love all my children and thats where i start when i think about brands and products. Were going to spend time learning and understanding the portfolio and getting the know the Business Models and well see what happens overtime. Some of these combinations offer Great Potential and i wouldnt make a judgment about any aspect of the portfolio for sometime to come. I think we need to get into it and understand it. This is a company that will be comprised of every day brands and have tremendous global potential. I want to thank you. The ceo of newell rubbermaid. Thank you so much to both of you. Thanks, jim. Coming up, gone rogue . Wall street debt is raising eyebrows and causing concern across the market culminating with locking its investors out of its cash next week. Could this move ripple through your money and sit lurking in your portfolio. Dont miss cramers take just ahead. Last week, everyones favorite take over target, lululemon reported a suboptimal quarter and i have to tell you something, they took the thing right to the woodshed. Thats right. It plummeted 13 on the one bad number and i have to tell you also, i think that lulu, it delivered every bit of the hideous number that some of the bears were expected. It was maybe an unredeemable quarter but i found myself wondering if lulus results were that horrendous. Sure the company missed wall street estimate top line and bottom line but they did deliver an incredible 9 increase in same store sales at a time when retailers are struggling to put up descent comps. I like these situations where something is wrong but maybe something is right. Did it really deserve to sell off 13 last wednesday . And with the stock down 14 for the year, maybe we can make a case that lulu deserves to go higher. Ive got you, dont i . Lets dig deeper in the latest report and find out. For starters, lulus missed by 2 cents and the companies revenues came in a bit light. 14 year over year. Its a growth stock. To make matters worse, the companys inventory shot up by 56 and inventory is the bain of all retailers. When you see these inventories surging it tells you theyre getting very promotional. They have to click through a ton of discounts in order to move its merchandise. Big for sale signs everywhere. Lulu gave signs for the next quarter. The loan bright spot was the same store sales. They grew at an astonishing 9 clip. Thats an amazing figure. Its very puzzling because a company blowing away their same store Sales Numbers should be excelling in other me tricks. Thats not the case here. Now the markets negative verdict was clear after the Stock Plunged at 13 . However at the same time the Analyst Community reaction to the quarter was much more mixed. Sure a bunch of firms downgraded lulu or cut their price targets but theyre reiterating the targets while they cut their price from 69 down to 60. They also told investors not to give upton stock. Was lulus quarter that awful . Warranting the double digit decline in the stock or is this an eye of the beholder situation where you can get a bullish thesis and it just got hit because theres so much hot money in the stock because of the takeover prospect. Underarmor, nike. Lulus results say, you know what, the company is really frankly doing as bad as the stock suggests. Lets start with the negatives. Theyre pretty straightforward. Lulu skyrocketing toward a red flag. We see this problem lately warmer than expected weather and increased competition means more and more being held than sold. But it isnt a one off problem that we can blame on the unseasonably hot weather. The fact is the rising inventories are a worrisome trend at lulu. 56 in the most recent quarter. Nike and under armour also experienced it. With under armour up 36 . Not great but way better than lulu and this problem wontd be going away any time soon. Total inventories are expected to remain similarly elevated at the end of this quarter too. Some says it has to do with the shifting to transportation strategy toward Ocean Freight but it could take a long time before that shift is fully worked out. Second lulu has a gross margin problem. Thats the percentage they get to keep. The gross margin has been contracting pretty consistently down from 51. 5 in the Fourth Quarter 2014 to 46. 9 in the last quarter. Thats a very big decline. The cause of the margin shrinkage . They took 130 point basis points from product cost, another 130 basis points from costs and currency shaped off 90 basis points. None will abate any time soon and while they gave lulu a 70 boost, thats not enough to offset all the other sources of weakness. Its trying to boost its ma