In this darn thing . You get money falling into your lap from mergers, from acquisitions, and from incredible rallies in high Growth Stocks hall lieu wra despite concerns what the Federal Reserve may do, and thats something that weighs on the market every single day, the dow leaked out a 46point gain. S p advanced, as analysis dabbled climbed to an alltime high. The reasons . I think its the endless merger activity. These two groups keep the market from rolling over. Even when you expect after a weak employment number friday . A ton of pes millennium . Or negative numbers this morning . Youve got to admit the negative case does have some merit. But lets consider todays action. Lets start with the blockbuster, that the giant company could snap up monsanto. Listen to me, the idea that you can own a stock like monsanto when it could be on the verge of getting a 127. 50 bid, i find it remarkable. Frankly monsanto hasnt been doing all that well. Prices for all sorts of Agricultural Commodities are being crushed, but these companies could be go ahead ahead with the merger anyway. To me its about the ability to bet against stocks. Remember unlike most retail investors, hedge funds like to have short bets on at all times. They like to wager that certain stocks of Weaker Companies are going to go down. If you had to create a security 245shd be going down right now, it would look a heck of a lot like monsanto. This deal is a reminder that nothing everything is based on shortterm occurs, and you have to view stocks through the prism of whether its worth a potential acquirer than buyers and sellers in the stock market. Next there is the run in eog resources. There is a pattern that i have flagging for you endlessly, very good, very forwardthinkingsh and make acquisitions that would otherwise not be possible. Eog the largest oil produce irin mostly stock to buy yates petroleum. A storied company with fantastic assets, including the western part. Sure, oil is low. It got hammer last week, but this kind of deal gets eog some fantastic acreage, and it lessens the firms reliance on the eagleford. I keep wondering what the heck when are the majors going to start fishing in the permian. But theyre all consolidating the good prospects, where the acreage seems as plentiyful as it is for oil in saudi arabia, yeah, saudi arabia. At least according to the dean of the permian, scott sheffield, who was on brian sullivans show today. The important thing is as so often in the energy patch, the acquirer stock is soaring. Eog rocketed up more than five bucks not until lining the moves made by and the aforementioned pioneer when they did similar deals. They issue stock, buy acquire acreage, book, its a virtuous cycle. The moral here if you simply thought of oil stocks, well, you would be sell sell sell. Selling every one of these names, but the opposite is true. Theyre being optimistic in the face of Lower Oil Prices and theyre killing it. Talk about the pipelines a group thats been annihilated. This cohorts long the bain of investors. Two Pipeline Companies he endridge and spec ra get together to create the large es pipeline in the country. Both companies have perfect Balance Sheets, they do a good job complementing each other. Neither company needed to do the deal. The stock from spectra was up, but again because of the wisdom of this deal, both stocks went higher. Specter vaulted 30 . The takeaway a left for dead sector suddenly comes alive, because two companies decide to merge. Next up, no one could blame the people who sold seth, some of the best tools to quickly identify diseases, when it announced a delay in the key diagnostic device back in april. The Stock Plunged on a pushback. The company told you not to worry about it. But that was cold comfort for those banking on an earlier launch. It turns out you should have listened, because today, the cramer favor life science titan bid 53 a share for seth, who went out at 34 on friday. Wow, the triggerhappy seller simply got it wrong, a nice gain. Then theres johnson controls, which is merging with tyco to create the number one building efficiencies play, wonder if that deal has been consummated. Meanwhile, the company lulls shedding the Slower Growth auto parts company, allowing it to soar. Listen to what the ceo had to say about this transaction this morning . I think in 18 months or 12 months from now, i think what we should expect is that we will be introducing ourselves to our customers, and if youre in the commercial Buildings Market you understand tyco, johnson controls. Together i think we can do something pretty special. Its a fabulous deal, fab lulls company, all because the execs were willing to surrender that are maybe youre thinking, cmon, jim, who can find these companies . Johnson controls, eeog, spectra, other than you watch the show, you might not know it, but if you watched the show, you would know it. Theyre not obvious, i give you that. Let me come back with you at a growth thesis. When you hear the feds taking action, you dont just stand there, you reached for the companies that will do well, even if the economy slows. Its a timehonored way to invest in a drining environment. How about alphabet, formerly google, in the sweet spot of good growth. Whats alphabet up lately . What have they been doing . How about cutting back on moneylosing projects and funding winners. Disciplined spending, thats what an investor want and the ceo is giving it to you. It rallied 11 bucks. How about am azen, appeared amazon hit an alltime high. How about foiblible arer facebook with a stock only now starting to react what was probably the most up three to an withdrawal time high, or net flex Piper Jaffray says is undervalued, on the sum of its parts. Im on episode 3 of narcos. F. A. N. G. Is back in business. Disruptive highspeed optical, telco services, or overseas with the al i baba which has doing nothing but go higher. It takes an awful lot of factors to overcome the downward pressure going into a slowing economy, but these companies show that only can the pulldown be stymied, it can be beaten with the right set of circumstances that happens more often than you might think. Joe in new jersey . Joe. Caller hello, cramer. Thank you for all that you do for us home gamers. You make a difference. Thank you, i appreciate that. Thank you very much. Caller my question is about hewlettpackard inc. Yes. Caller a broker called me and said that its the stock to buy. What a 3. 5 dividend, high earnings and low p. E. Ratio . Should he keep it our sell it . This is very tough. I didnt like the cost going in. I thought they could cut costs. That being said, it wasnt a disaster, it just wasnt great. Ill take a pass, and if they get the cost cutting right, then hall hallelujah caller in may you discussed tractor company, since then its down over 12 . Is there a fundamental problem with the company or is this a buying opportunity . It did miss the quarter and missed in a way i wasnt crazy about, but i see we had a very wet spring in a lot of places, which meant bad gardening, not so great situation for a lot of the farmers, too. But that said, if you can get the stock at 80, which is just a few bucks from here, i think youll be in good shape. All right. Dont throw in the towel on this market yet. I see the issues. Were going to talk about them later in the show. With the rate hike on the table i know wont be smooth sailing, but m a and Growth Stocks are leading it higher. It hasnt been a banner user, but as Home Construction accelerates, ill tell you which ones could be refurbish your portfolio. Then its a pharmacy throwdown. Rite aid, kroger, walgreens, which has the best prognosis for profits . Wonder where the stock will be headed ahead of what everyone is saying will be a blah announcement . Announcer follow jim cramer 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. Wi dam pfoce, toelp ld curve. Ahead othe e. E , rx hrx f alys he ain,nninov ptl itie gete,hood isging. Nghss canroca 3 ogson gekds nguimaket in b atmpdeic ama the nghss canroca 3 ogson gekds wh ds is . R fuel onomy. Gines mo efficient wewoon abilat in to ma car d uyou saveon. Ressss. Tht enerhone buzng e thga me thstrinedles nxbod. Even though houses have been doing well as of late, its been an awful year for some of the largest players. Everyone from restoration to wayfair seems to get their stocks completely slammed. All of which begs the question given how strong housing is, what the heck is wrong with the furniture space . And can any of these stocks make a comeback . Lets take a closer look starting with one of mice old favors Williams Sonoma, along with the pottery barn, wessel many. The stock has plunged 40 . A decline year to date in 2016. This is a pretty stark reversal for Williams Sonoma. Ever since the Great Recession its been on an upward trajectory. As it built out the Online Business and introduced new concepts like west elm. Ever since august of last year Williams Sonoma has struggled. First it got hurt by lingering inventory issues caught by the west coast port strike. While it seems like a temporary problem, for the last year Williams Sonomas numbers have been pretty darn inconsistent. Just with the quarter they delivered inline earnings, and samestore sales growth that was either flat or down everywhere, except the very redhot west elm division. Management cut their fullyear guidance for sales and earnings, citing general softness in the retail market, more cautious consumer. Were talking about home goods here. Before you extrapolate from that commentary, remember the previously did just fine during the past quarter, which means the problem here is not with the consumer anymore or with the mall. So where does Williams Sonoma go from here . On the one hand they have triedandtrue brands, and theyve been squuting on the nifb tore initiatives. However its hard to believe the business will miraculously improve unless it gets busy discounting, marketing and offering shipping deals in order to get people to come back to the stores. Selling for just 14 times earnings is actually just in line with other furniture place like Restoration Hardware. And pier one, training 11 times earnings, you get the picture. How about Restoration Hardware . How about it . This ones beloufd luxury chains with the Beautiful Stores and gigantic catalog has fallen from grace over the last ten months. The stock peaked at 106 just last november, plummeted down to 33 and change were talking about a 68 decline in less than a year. In fact a few months ago Restoration Hardware actually hit a tenyear low after reporting really ugly quarter. Some sent the stock down 20 in a single session. Something has to do with the fact that before things started falling apart it was a highflying growth stock, and when these high flyers stumble, you know their stocks tend to go into free fall. And unfortunately Restoration Hardware has done more than just stumble. The company has posted a series of disappointing quarters. A the first it seems like maybe the growth was following large numbers, but at this point its clear there are very specific negatives. The new modern furniture line that it launched last fall has turned into be a bit of a disappointment. They rushed the concept to market resulting in major delays as the suppliers couldnt meet the tight deadlines. Some led to shortages and massive wait times. In this age of snap gratification, we talk about it all the time with retail, nobody likes waiting, this is the amazon generation, even for a exquisite piece of furniture for regions that depend on strong oil prices, you know florida fallout, texas call down, sheesh, but theres another possibility that explains the weak in. Maybe Restoration Hardware is losing market share. At the same time it might be reaching the end of the total addressable market. Theres only so many can available to buy highprized furniture out there. Can it turn things around in the ceo Gary Friedman recently bout a million worth of stock in the mid 20s, which turned out was pretty much the bottom. I do not think this man who has been on the show several times bought the stock idly. If it pulls back, where gary does insider buying, i would be tempted to buy right along with him. What about the wayfair . Multiple weve had them on the show. Not just wayfair, but also joss main, birch lane. It seemed like wayfair could do no wrong, a series of but in 2016, its fallen into a rut, down 15 . When wayfair was redhot, the analyst loved this company. It kept blowing away the estimates, and it seemed to be a major disruptor. Finally giving consumers a play to bide a wide variety of Quality Furniture on the web. Lately the company has begin missing estimates on the bottom line, reporting wider than expected earnings losses. These misses drove hop an essential part of the bare thesis that despite its impressive revenue growth, wayfair is a long way from being profitable. But it was the latest quarter that sent it into a tailspin. Causing the stock to collapse 20 in a single session where these furniture stocks suddenly a crucial part came under pressure. Stock got hit with a series of analysts, downgrades and estimate cuts and made us think maybe online isnt where people want to buy furniture. Whats next for wayfair . Look, i think the company can beat the estimates, and gave a lowball guidance. Wayfair is spending a fortune to build out their International Platform along with the distribution system. Long term they had pay off, but short term are costing on top of that, i keep wonder if maybe furniture is we have those things thats better sold in person. You want to lie down or check it out, right . You know what made me think this, Marvin Ellison, he called out furniture as one of the companys strongest categories in the companys lates quarterly announcements. You know what . Basically saying, look, you probably watch to try it on before you guy. In short, i think there are too many worries to jump into a battleground name. No need to be a hero especially in the end furniture is the something you cant get from browsen on one of these wayfair web sites. One other thought, we like recent at home. Good business model, we like the bricks and mortar style, as much as we dont like web furniture, but its one to watch. Even though we know consumers are buying furniture, like williams snowstormo, Restoration Hardware or wayfair. I recommend staying on the sidelines with these three furniture stocks until we know that theyve gotten their acts together. I do bush you know whats my favorite . J. C. Penney itself, because its stock has pulled back mightily from 1120, all the way down into 9 and change, almost where it was before reporting the breakout quarter. That is too cheap, people, with Marvin Ellison calling the shots, i then penney is the best furniture option out there. Its not just furniture, and maybe thats the secret to success in this different category. Much more mad money ahead. Ive walgreen, rite eight and kroger, but its not just about one of this is stocks stand out above the rest, and tim cook is prepraerg himself for a big presser. Wondering what you should do with the stock ahead of the companys potential new products . Thats why im going off the charts to find out where it could be headed. Its a little surprising. Is the fed station a could you from dumb and dumber . Im saying theres chance thats exactly the case. Stick with cramer. Every big merger is a will they or wont they story, as in will the regulators block the deal . Or wont they . Thats what investors have been worried about ever since walgreens announced the plan to acquire rite ade, especially since the goism has gone aggressive on blocking deals. However, last week we got this Huge Development that i think make it more likely will at last be allowed to go forward. Before i give you the details, let me catch you up. Late last october walgreens, a stock we own for my Charitable Trust, offered to buy rite aid for 9 per share, saying they had appearsed the risk very carefully and would work with regulate arors to make the deal happen as soon as possible. When you have a transaction like this somewhere the largest drugstore chain is trying to snap up the third largest, so the combined company has less overlap. Right from the getgo walgreens said they were willing to sell as many as 1,000 stores to get the regulators on board. Theres some places in this country where theres only two sizable drug stores. So if walgreens was allowed to buy rite aid whole log, they would end up with local monopolies, which are supposed to be illegal. Thats why the federal trade but its not just enough to divest stores to prevent overlap. Walgreens needs to sell these overlapping stores to a ready wellcapitalized buyer that will actually keep them open and run them, because if they sell the stores to a buyer who ultimately shuts them down, that doesnt solve the antitrust problem. If anything, it makes the problem worse which brings me to last weeks Major Development checked be what the regulators ed to give this deal their blessing. Last week stated that kroger kroger, the gigantic supermark change has emerged as a potential buyer that they may need to sell. If this report is true, this could be the final hurdle before the federal trade Commission Approves the merger. Why is it so important that kroger pop you said . Because like i just told you, walgreens needs to find a buyer with the financial wherewithal to keep these stores open. Kroger is exactly the kind of credibility company they need with the scale to buy all the locations in one fell swoop, which is much clearer tha