Some losers and render decisions about where to put your money. Averages are bouncing a tiny bit today. S p inching up. And nasdaq. Remember a few weeks ago when i told you that the s p 500 os later i follow, the one that measures the buying pressure was giving an overbought reading of plus 10, indicating excessive buying and it concerned me . Back then i said the market would have to work off by a selloff or decline over time. The market chose the latter path. And weve now gotten to the point where its no longer unsafe at any speed. Im not saying just buy anything. After a shallow advance, the dow produced seven losing sessions. The bull market was lucky that it wasnt more damaging and permanent, because every time the market takes a sharp turn down, more people flee. What looks more promising . I see the humanization of pets, semiconductors of all shapes and sizes and the steel stocks. How about those to avoid . The retailers, super markets, restaurants and airlines and travel and leisure businesses. Lets roll up our sleeves, okay. And go over these winners and losers. First, lets tackle bpets. I still think the best thing besides the internet of things, no. Youre looking for a true rising tide. I say look to the growth in spending on companion animals. This is that socalled humanization of bets, not to confuse with the secret life of pets. The ceo of i dex laboratories, when he came on the show five weeks ago, goes like this. As cats and dogs become more involved with their masters as being demonstrated by being allowed to sleep in your bed, Health Care Spending on them has surged. Sure enough, it gave us the biggest beat in raise which saw the stock rising to the moon to just under 108 today. Whats behind the run . On the conference call, idex talked about accelerated companion animals gains. It showed 10 to 11 growth, natural, organic, including vetconnected business lines that have 13 gain on growth, like recurring diagnostics, which is what happens when millions of pet owners take trips to the vet. The animal focus drug Company Reported upsizes and noted that its companion animals business also had 11 organic growth. Its no fluke. Its a bona fide secular trend how about the Semiconductor Stocks stocks . Theyve been on fire, including arm holdings. But honestly, this Semi Conductor rally could have been fueled by earnings alone. Weve seen numbers from Texas Instruments and amd. Cirrus logic. And its given the am stopple s rally a second win. I say peers, because apple components manufacturers are not allowed to name apple. Theres no negative pin action. And that is a sure sign of strength. And when intel gave you subpar reports, even though it had run quite a bit from the bottom, the real stand outs . Nvidia, the video chips maker. And i still like nxpis. Which ran big into takeover talk but its now pulled back to a very buyable 83 level. The third theme i like . Biotech. It looks like the Long National nightmare that was biotech is over. I like to judge this by what makes it run. Last week they reported a better than expected quarter, but even when the stocks arent so hot, like biogen, biotech stocks are running on positive Clinical Trial data. Witness the gigantic leap in ionis pharmaceuticals. Remember, we had them on this week . And their partner biogen exercised its commercial rights to buy the rights to the drug. The four horsemen of the apocalypse seem to be back in the races. In addition to the aforementioned biogen and cellgene, well see if the recoverys more permanent than people think. Then theres this weird group, the steel stocks. Everybody loves a low dollar stock. It had an amazingly positive reaction to the tariffs president obama put on the steel companies. These commodities will keep running, however, if you want a growth steelmaker that happens to be addicted to profitability, i propose you buy nucor, it came on the show a week ago after reporting excellent numbers. Now for the losers. Many restaurants cant seem to get it right. Todays trend, dying equity. Its applebees division. And darden, only panera bread and jackinthebox have managed to buck the trend. Super markets have taken it on the chin, too. Both whole foods and kroger having a very tough time. Unless youre in the dollar store quadrant, youre getting slammed. Then in the oil, overcapacity, and now the zika virus are stinging them. And tonight trip adviser reported very suboptimal quarter, Royal Caribbean in the travel and leisure doghouse. Were seeing rare weakness at nike. And under armour. Much of that is caused by the decline of sports authority. But we got news from kate spade. Its not just sportswear, its sneakers that are struggling. If you can get comfortable with an Animal Health company or a biotech or steelmaker, you could be rewarded here, but if you own retailers or restaurants or Power Companies or airlines and travel leisure businesses, you could be in for some turbulence. At least until the end of earnings season. I want to go to tito in nevada. Tito. Caller hey, whats up, jim. Greetings from las vegas. Man, not much happening, how about you . Caller not much, man. Sprints been having a great year so far, i was wondering if now was the time to pick up some shares now that its retraced a bit from the high . Yeah. I would be a buyer of sprint. I think the company has really come around. Theyve done a terrific job, and im believer. I wouldnt leave it, even if i tried. How about rob in pennsylvania . Caller hey, jim, a big booyah to you. Caller im a hershey shareholder. Do you think mondelez may be coming back with a bigger offer for hershey and the ag will have any of reaction . I think we might see a higher bid and transaction. I would hold onto hershey. Thank you for that call. Now, are your stocks winners or losers . Earnings season is separating the weak and the strong right now. And were seeing strong turns in pet health, steel. On mad tonight, you probably i have its products in your pantry tonight, but after todays earnings, can you clean up in this market . My exclusive with the ceo is in. Then revenge of the underperformers, four stocks that have gotten no respect, taking a totally new lease on life. And he began hayis career with money and little direction, but he turned his dream into a 25 billion fortune. Im sitting down with the founder of nike in a rare interview. Find out how he just did it. Stick with cramer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email at cnbc. Com. Or call at 1800743cnbc miss something . Head to mamadmoney. Cnbc. Com. Youre here to buy a car is this the revenge of the nerds . Or just the revenge of the underperformers . Either way, the story has become a khai theme of this earnings season and most evident in etsy, the hippy dippy place for handmade goods, gopro, fit bit and groupon. All four of these companies have had storied careers as retail darlings and at various points crushed their shareholders dreams of big profits. The decline wasnt caused by the companys actual performance. It was because of the bar being set for excessive enthusiasm for its products. Take etsy which rallied nearly 9 . Heres a stock that traded at 30 in april 2015. It was seen to be the next amazon. At the time i called it the Natural Organic amazon and told you to stay the heck away from this one about a month after it became public. The surrounding stock was totaling the love of its website with the brooklynbased company. It seemed intent on empowering individual merchants, dogooders, it was certainly sacrificing the longterm numbers for shortterm success. But the longterm success has arrived. 39 revenue growth. 64 adoption of the mobile app. It was originally seen as a clunky site. The company, like the others, have been left for dead, so it traded as low as 6, february, a week in february. Now because of its accelerating growth and worldwide reach, i have to wonder if etsy isnt one of the more undervalued stocks out there. How about gopro . Heres a company with an exciting suite of products. And it went from 24 in the mid 90s. Peaking after a disastrous Holiday Season, it was a long slog down to 8. But gopro stock has been on fire ever since. 20 sequential gain. And rising 11 . Having been reduced by 35 . Gopro is about to unveil a series of new products that might fulfill the hype of a few years ago, just when this darn thing looked like it had dropped off the radar screen. I think it could be a good trade not investment trade. Speaking of much revolved. Its hard to get more hated than groupon was when the stock was trading 2. But last week, they recorded a quarter that gave you a lot to like, significant Free Cash Flow as management turns around the core business and eliminated some empty franchises. But when the ceo, richard williams, told us in the conference call, we are further along the path to become the daily habit in local commerce, he had the facts and figures to back it up. I like that groupon has 780 million in cash. It can do acquisitions with ease. But perhaps one of the more ironic terms, is fit bit. Even though its stock has been a dog, fitbit, the company, actual lay never really disappointed with its earnings. It just stung shareholders with weak guidance, not this time, which is why the stock soared 13 . Its increasingly moded Health Franchise have distanced this company from the competition, and im including apple. You could never size on its revenue growth. But i like the acceleration of growth in europe. Plus the Holiday Season should be great for fit bit, this was a nonexceptional holiday quarter. They all stand out from the quarter. All realizing their formerly unrealized potential and all lowexpectation places to be as the dog days of summer unfold. Lets go to alex in new york. Caller booyah ski daddy. Keith, what be shaking . Caller im calling you about sketchers, skx. It fell by 35 . I took a small position as a speculative trade. Now is it a good time to enter into a sizable position for a bounce back or maybe a longer term play . No. Were going to wait until the Company Comes on air, and well talk about it. Because the stocks had a bit of a hit. It does seem cheap to me. Lets go to janet. Caller hey, jim, how are you . Im doing well, how about you . Caller great. Im calling about office depot, odp. What are your thoughts on the q q2 earnings, and what do you think about if another merger is in the picture . I dont think another merger is in the picture, and i think that its good that theyre cleaning up their story, but i got to tell you, long term, im not a fan. Just like the nerds, these stocks have been late bloomers. How does expectation spell their stock. Its been a historically weak august. Much more mad money ahead. Whoever said print is dead never took a look at the stock of r. R. Dollar donnelly. And my exclusive with the company thats been cleaning up for more than a century. Can clorox keep you out of a market mess . Ive got the ceo. And the man who made icons out of the swoosh and athletes who wear it. Coming up, cramer is joined by one of the most successful entrepreneurs of all time. Find out how bill knight captured both the hearts and the feet of the modern consumer. I though you asked me what was paid to Michael Jordan. The original contract was 250,000 a year. When mad money returns. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. An american story of unmatched success. From the tracks of oregon one man changed the way we run, train, and dress. Now bill knight is writing a new chapter. These days, people act like aev startup is a tech company or biotech company. We forget that the giant corporations of today were the success of yesterday. Take nike. It dominates the Sports Apparel markets, but when bill knight started the company in 1964, he was one guy, selling chinese sneakers out of the back of a car. I mentioned this, because phil knight, the founder of nike, published a memoir called shoe dog. That i think is one of the best books i have ever read. Hes talking about nike, his book and his life. Welcome to mad money. Thanks very much, jim. I can tell you in all honesty, its a great pleasure to be on your show. Thank you so much, sir. I found out about your book in an odd way. I found out from bill walton and asked me if id raead it, the great basketball player. When i found out you were coming on the show i was so excited. Let he ame ask you, as a shoe d where is nike in the firment these days . Under armour is hard charging, kevin plank reminds me of you in your early days. Nike is king. Can neike stay king with those competitors . Yes, and we will. Well compete very hard, and we have a lot of growth in our future and im very optimistic. What is going to become of this industry of apparel when we have endorsements that a lot of people feel are out of control, but are clearly a tremendous driver for sales . Yeah, well, this may surprise a lot of people, but in our endorsements, at nike, we use a very sharp pencil, and we sharp on endorsements from time to time. There was a great soccer club in europe, we said its too much. Its too much for us. So you can read a lot of money about endorsements like Michael Jordan, but hes absolutely worth it as is lebron james. The idea was that people, if you saw people liking the shoe, if you saw them wearing it themselves, that was a personal endorsement. Has it gotten upside down now where you ask the guys to wear the shoe and theyll pay them is this. I dont think so. Some of the best endorsements, we were proud to have them wear the shoes or clothes for no money. But we use a sharp opinion sipe. And if the athlete doesnt produce the sales, its not worth it to us. I saw today the news that the wolverines are going to roll out jerseys with images of Michael Jordan, but they were the football players. Is that what you had in mind when you started the jordan line . Exactly on plan. No, thats a sarcasm in case you couldnt tell. No, michigan would want to call me if i dont stop you right there. Theyre baffled. What do we say . No, its, no, i think, obviously, the whole industry has changed dramatically from the way it began when i got into it. And the jordan brand has become a true brand. And it stands for more than just basketball. And so the first Football Team to wear the jordan shoes is going to be the university of michigan, and were proud of that, and if you saw the claims from the transition when they moved from their old endorsement over to nike on allugust 1st, i was almost a riot like the jordan shoes in the big cities. They had the 250person marching band lined up around the block. One of my Staff Members has a hoops store near her, and every time there is a new addition for jordan there is a line around the block and it starts in the middle of the night. How do you explain the staying power for whom many never saw play . He was the best at that played, maybe the most dramatic as well. He had a colorful game, a handsome guy, and spoke well and stayed out of trouble and jumped over the moon and made all the shots that were storybook. And Tinker Hatfield designed an innovative product for his feet and it caught and became a brand in and of itself. There are a lot of people buying the brand who dont know who Michael Jordan is. There seems to be a bit of luck. As you said in shoe dog, you went after ryan leaf instead of peyton manning. When it all comes together just right, it creates magic. Is footwear getting too ex p pensive . We saw 225 online for a pair of jordans, does that not fit with the persona of nike that you created . Well, i think ultimately, we say around here, the consumer decides. And hell tell us, he or she will tell us. And that the important thing is that the shoes are comfortable and they perform and help you perform and when theyre doing those things, theyre worth a lot to a person. Historically, youve not revealed, the companys not revealed how much you pay Michael Jordan, i doubt that youll do that in this ifts view, if you want to do that, thats fine. How about the best deals, i think that the neike nfl deal ws a coup, it was a major deal that really helped. Yeah, i think so, too. Getting the nfl deal was a big deal, but the nfl wasnt cheap, and we figured, we used as sharp a pencil as we could and it panned out better than what we thought it would. I know you asked me what we pay Michael Jordan. I wont tell you what we pay him today, but the original contract, we paid him 250,000 a year. And Fortune Magazine wrote an article that said theres no doubt that nikes lost its way to npay that much money to Michael Jordan. How important are the l olympics . You spoke about olympics 72. But there was great joy. Theyre important, arent they . Especially to me as an old track guy. The Olympic Games are the pinnacle for any track and field competitor. Its true for many of the other sports, gymnastics and swimming and volleyball, probably. The competitive arena is our fashion runway, if you will. Thats where we show our stuff. And show that its, it is the best product, because its being worn by the best athletes. So the olympics are huge to us. Its ultimate athletic contest, and were very optimistic how were going to show in rio. Are you surprised about how nike is kind of universally one all the time. I was at the trade center today. I saw so many tourists, and theyre just wearing nike. I dont know if they know what nike is, but its a brand that has a life of its own that often has nothing to do with sports. I think in obviously trying to make the shoes and clothes that fit well and are comfortable and that kind of breathe and you can move in, thats what we try to do with our athletes, and it carries over to the general consumer. It can also be a more comfortable shoe to mow the lawn in. So yeah, it gets a lot of crossover, but o