Economy is pretty good. Good enough to raise rates by more than we thought. The market endured a mild selloff. Dow breaking a sevenday winning traek. Nasdaq declined. Instead of getting destroyed. Come on. Head to the 2,000 point run weve had to the election its peanuts. I think we can admit weve been due for a bit of a selloff. We didnt see a wholesale slaughter as some people expected. Given the rare heights we got to. This kind of pull back, to use a word people hate to hear in relation to a loss, healthy. Its an extraordinary time but not so extraordinary that we can keep rallying after through and through the rate hike. There was a brief moment where the market cheered the hike. Minutes after the 2 00 announcement and the dow looked like it was going to pierce the 20,000 mark. The bideuyers stormed the rampa were thrown back by profit takers. Who seemed motivated by desire to lock in. Rather than a need to bail on the entire market. You know what that relatively gentle selloff means after the run . Down 100 doesnt sound gentle. It means we may be get back to normal. We might find ourselves focussed on companies again and how they are doing. Whether they should be based owned on their perspectives. I cant stress to you how important, how seminal this normalization is. For as long as ive been investing weve had to Pay Attention to what the fed is up to. There are times when the fed can crush any rally. Or even the entire economy, if it takes rates up too much. As we saw with the 17straight rate hikes before the great recession. To ignore the fed, moronic. The fed raised rates by a quarter of a percent and the market got clobbered. It was clear neither the economy nor the stock market was ready for the hike. The Economic Growth was so uncertain the outlook so cloudy it seemed totally out of sync with the moment. Now here is the irony. Fed chief janet yellen gave a press conference. Sure enough, the Economic Growth is uncertain. Cloudy, even. This time its not about being too weak. Its about being too strong. This time its about whether president elect donald trump will get the economy so hot with this business regulation troika goodies that janet yellen will need to worry that the that gradual and sporadic rate hikes may not be enough to keep inflation in check behind the curve, so to speak. She laid out a forecast of not one, two, but three rate hikes for next year. Last year that kind of talk obliterated the market. We were in a weak holiday season. Oil and gas rolling over to the point where it seemed like 300 billion in debt was at risk. We had worries that housing would be crushed by any further rate hikes. The house of pain this time we said, yep. This time it makes sense, rational. The economy is Strong Enough that we need to go back to higher rates like we used to when business was good. Something in the 2s or 3s or maybe even, if trumps gambit pays off. Maybe well get 4 growth. Traders hung on yellens every word. When they stated the need for the rate hike as well as additional increases came out, the banks led the further charge to the dow at 20,000. When she spoke about tightening in a measured fashion because the economy is strong but not that strong, it seemed to close the door on four rate hikes by caused the banks to roll over taking the labor market with them. When she said it did exactly was it was before the recession we had another blip up. Four rate hikes. The 20 k people then reared their heads. At that point the fed reporters couldnt help themselves. They went all trump. They asked whether there is a rational exuberance, a reference to Allen Greenspan who said it might be up too much in 1996. I was waiting for them to say, miss yellen is marka or they didnt go there. Yellen didnt take the bait. Not the first time, second time or third time. Finally she gave in and gave us the comment about things being murky under trump. I think the real takeaway is simple. We had the big, bad eventme. All the rate hike did was ratify what we already knew which is that it was time to raise rates because the economy is better. The more important question to me is whether the trump rally will now take a breather. We expected a rate hike. We ran up into a rate hike. We got a rate hike. Now what do we do . Earlier this week i suggested we rally and rallied and rallied. Since then the trump rally has been on the back of the president elects multitude of probusiness cabinet picks. But remember what i said about feeding the beast last night . Unlike trump, yellen is no beastfeeder. She is not trying to stimulate the economy. She doesnt want it to get out of hand. Trump, on the other hand thinks this economy is more weak than yellen does. He is still saying that Business Needs help, but not from the fed, from the white house. In fact, we saw him met with tech leaders in trump tower who are responsible for more of the economys growth but also much of the automation that causes job losses. He was incredibly encouraging he wants more growth. Why does it matter . It looked like a room full of people who voted against him with many raising big funds for his opponent. Plenty of traders were concerned the meeting could turn real antagonistic real fast. Didnt happen. Trump was gracious, telling the tech ceos they should call him or gary or wilbur. Meaning the soon to be tech adviser chief or wilbur ross. Thats a different attitude towards business than barack obama. Its hard to imagine him getting buddy buddy with a room of billionair billionaires. Suffice to say trump did enough to feed the beast. Then we reverted to thinking about the upbeat meeting instead of a downbeat scolding. Then we got another wave of profittaking. All just rational. Bottom line. It was another day in the office, which is pretty darn good when you consider it might have been a tumultuous day. Call it what happens when things get back to normal, at least as normal as they can be with this president elect. Alex in my home state of new jersey. Alex hey, jim. I love jersey. Whats happening . Considering the evaluation of the markets, the s p shedding out more than 18 times forward earnings. You think the more immediate negative effects of a hawkish bet are factored in . I think that in the end you have to keep feeding the trump beast. As long as trump stays upbeat and has more things up his sleeve the market will go higher, maybe even to the inauguration. If we start thinking about the higher rates and stronger dollar well get a selloff. We call it animal spirits. Its what drives a stock like nvidia up 5 bucks on nothing new other than another buy recommendation. Bob in new york. Bob jim, during the massive trump rally, visa failed to participate. As far as i can tell, the fundamentals have not changed and visa europe is poised to make a major contribution to earnings. Whats holding them back . Great question. From the old days, this is a very interesting story. Here is whats happening with visa. When you look at a stock like visa or mastercard you see what we call faux bank stocks. They are being sold to go buy the stocks like bank of america and jpmorgan. People suddenly want that Interest Rate boost. So visa absolutely business is strong. Got another recommendation today. But if it starts running youll see more sellers because they want to be in the banks. Jonathan, in texas. Jonathan. Hello, jim. San antonio. Holy cow. Tim duncan. Wish he had been at the thing the other night. Fedex and ups are struggling to keep up with holiday orders, should i buy them on the idea that they have large volumes, should i expect them to go down since theyll probably need to hire lots of temporary workers or skip both and buy a maker of the shipping boxes Like International paper . Someone on twitter asked me this. International paper had a big run. I was concerned today when i read there is so much traffic that it may be hurting these guys. The way the structure works. Fedex is actually able to handle or has been historically i dont know ups is a really good company too. Both great companies. Theyve handled the traffic. You know what, maybe the best thing to do is buy amazon. I call them as i see them. I am an amazon prime guy. I love fedex and ups. I think theyre good but theyve really run. How about mike in texas. Mike hi, jim. Thanks for taking my call. Absolutely. I am newly retired and rely on Dividend Income from my equities. Ive recently been looking to purchase more stock in the southern company. And i was wondering if this is a good time to buy more or should i wait for an additional eight to ten percent pullback . Southern is not my favorite because it has a little bit of actual risk to its business because of some overruns. 4. 62, i think you should wait until 5 . When we bayou tilts we dont look at the price of the stock. We look at the rate of yield. At 4. 6 when it gets to 5 . Its okay. A new world order, people. Today could have gone worse. Trump fed the beast enough so that we just saw a rational, relatively gentle selloff. Tonight, for a month ive been eyeing names like the benefit from the new world order that is the Trump Administration. Trump stock. Trump stock. Trump stock. Tonight i am bringing you the ultimate trump play. Ill reveal it just ahead and then im calling an audible a la Peyton Manning. The company that could be calling for a big possible takeover. Trump talked about Infrastructure Spending, rebuilding a ball and rebuilding americas roads and bridges. What could it mean for a company like u. S. Concrete . Im asking the ceo. Stick with cramer announcer dont miss a second of mad money, follow jim cramer an twitter. Send jim an email to mad money cnbc. Com. Or call us at 1800743cnbc. Weve been hunting. We spent more than a month now searching for names that will benefit from the new world order that will be ushered in by the Trump Administration in partnership with the totally gop controlled congress. Tonight i want to introduce you to what i believe could be the ultimate trump stock. Trump stock. Trump stock. Trump stock. Ctas, the company you go to when you need to buy or rent uniforms for your employees. As well as things like first aid, safety, Fire Protection and cleaning products. The core of the story here is very straightforward. When companies, particularly manufacturers but also service businesses, hire more people, they need more uniforms. And cintas makes more money. So, if you, like me, believe the triple whammy of lower Corporate Taxes, deregulation and the repatriation of overseas assets will provide a big boost to employment here in the united states, then its easy to see why cintas would be worth buying. The stock has been roaring since the election. I think after postrate hike profit taking it could have more room to run. Not only is it the qui quintessential trump stock, it recently made a Game Changing acquisition. Put it all together and you have a lot of ways to win. You need to know that theyve been a winner for a long time. A great stock you never heard up. Up 32 year to date. Rallied 69 over the last two years. It has more than quadrupled over the last five years, trouncing the s p 500 during all those time periods. Since the election its surged up 15 for 105. A 14 gain as its been right at the front of the trump rally. Its not like cintas has been going higher for no reason. Weve added millions of jobs since coming out of the great recession, which has been fabulous for cintas. In the most recent quarter it grew sales at 7. 9 clip which translated into a 35. 5 earnings growth. Business has been good and organically i think its about to become a whole lot better. Cintas is the number one player in the uniform rental space. It has a fabulous management team. The son of cintas founder. Most of the executives have the majority of their net worth invested in cintas stock. Theyre on the same page as you in short, theyre less motivated by salaries or bonuses than by wanting to get the stock higher. Theyre gigantic stockholders themselves. It was performing at a very high level before but now it could have more upside for trump and nontrump related reasons. I dont think a quarter fed rate hike will hurt the growth. I think multiple rate hikes wouldnt derail cintas. Why . For starters the uniform rental business is highly fragmented. Its right for consolidation. In august it announced it was buying gnk services. The next closest competitor, for 2. 2 billion. And a month ago gnk shareholders approved the deal. Cintas has had many years of organic growth but this acquisition could give them a major boost. Once the deal closes, the combined company will have more than a million customers, plus cintas gets more Processing Capacity and the roots become more dense, meaning, when they send out the trucks to deliver the uniforms to the clients theyll be able to make more stops and do things in a more efficient manner. Altogether cintas expects it could realize 130 million from annual synergies from the deal. But really all you need to know is that, when this deal was first announced, not only did gnk stock rocket higher, of course. Theyre the target, but even cintas, the acquirer, rallied more than 5 . That same day and that is a rare thing. Buy, buy, buy tells you wall street is salivating for this deal. The analysts keep cheering it on as well. They accept this they expect the merger to close in the Second Quarter of next year. While i never had antitrust concerns, i think trumps regulators will be more friendly than obamas. Trumps agenda will produce a pickup in growth. Janet yellen said this today. This is the kind of company that will make a killing if that happens because its whats known as a shortcycle business. I spent a lot of time since the election talking about how the cyclicals have been on fire, but there are many different kinds of cyclicals. A teaching moment here. Right now i want to focus on the difference between the shortcycle businesses and the long cycle businesses. A long Cycle Company takes a while to ramp up production and the goods have complicated production processes. Boeing, the classic sxaum exampa long Cycle Company. While those types of Companies Benefit from a stronger economy, it takes longer for the benefit to flow to the bottom line. Cintas is obviously not an industrial. But if they want to supply more uniforms, they can they make that decision in a heartbeat. And more importantly, most of their customers are the kind of shortcycle industrials that can ramp up production quickly and thus really benefit from a stronger economy instantly or just the expectation of a stronger economy. Since cintas is there for the supplier for the short cycle industrials its centered as short cycle business do. Say you own a factory and you want to make more widgets in the u. S. Because you expect tax reform and deregulation will give the economy a boost and youre worried trump will punish you if you try to move your factory overseas. If this widget making expects a pickup in demand, theyll need to hire more people, right . And order more uniforms and cleaning supplies from a company like cintas. For many industrials, their whole manufacturing workforce is outfitted in cintas uniforms. So its a great play in an acceleration economy. The market run is saying a run is what well get thanks to trumps agenda. Longer term, if you think trump will be successful at keeping companies in the u. S. And encouraging new oil and goes projects like pipelines, thats even more business for cintas. The only International Exposure they have is to canada which is only 8 of their sales. You dont need to worry about a potential trade war with china or threats to repeal nafta. We are using a prism here. Has to avoid some of this not a trump stock. Issue. Trump will be an America First company. And cintas is an America First company. Last year their tax rate came in at 32 . If trump cuts the Corporate Tax rate to 15 , cintas becomes more profitable. The bottom line, cintas has been doing great for more than half a decade as the economy bounced back from the recession. I expect the company to do even better thanks to president elect trumps probusiness agenda and i wouldnt be surprised if the stock after the current consolidation resumes its long march higher. I am taking a cue from Peyton Manning and looking downfield for open plays. Could zylinx be a take. Im going to ask the ceo of u. S. Concrete, big trucks going around and around, what it means. Im eyeing one company to help you cut the cord on your desk phone. Stick with cramer on a day when the market took a breather courtesy of the rate hike from the fed and the promise of three more next year, its worth taking a moment to think about how we analyze stocks that have run. I expect the rally will resume in the future. When i see something roaring i ask, is it, a, a trump stock or a reevaluation or the animal spirits in the market or a potential takeover. Thats the prism i use with stocks that have been rocketing up. Sometimes i feel a little like Peyton Manning, who after a few random omaha screams takes the snap, checks down the receivers to see which one is open. The best receivers, the one with the most separation, are those with the trump triple threat. Trump stock, trump stock. Theyve got winners from deregulation, theyre benefiting substantially from lower taxes and will repay treat a treasure hoard. Apple is the quintessential play on all these three. Antonio brown. Others will do well in a lower tax world. When you go through the checkdown you hit a huge part of the s p 500. Thats why the animal spirits of the market have been so vibrant. Its why so many stocks are indeed trump stock and there arent that many of these. We cant overlook the gyrations of individual stocks. Lets talk about xilinx. They make Programmable Logic devices. Chips that can be reconfigured by the customers. Its not a fab company. Not a big factory company. The stock has been en fuego. Its responsible for so much of the Technology Behind the videos you see on your cellphones. Though it is not a cellphone play per se. Its more a play on telecommunications equipment, the service providers. Right now there is an arms race going on in this industry about who can offer