Most vicious rotations i have ever seen. It brought some of the rocket ships screaming back to earth. With the dow advancing 85 points, the s p declined. 08 . The nasdaq plunged 1. 8 . Thats just a recovery from even lower levels. Were starting to see that buy f b its a breather, people, it had to happen eventually, you just cant have stocks go up day after day after day on nothing new. Which is exactly what was happening on the supertech stocks. Yesterday afternoon we started to see the money rotating into the down and outer stocks. And then the buying, the template for high growth, but it was an nvidia versus nordstrom battle. Nordstrom had been ice cold until the companys management decided to talk about going profit. To me, that was a wakeup call to cause us to responder whether or not we had gotten too bullish on the market. It got crushed at the opening, it ended up at plus 2. 83. This was just day one of that rally. What surprised me the most today, though, was that the rally also included Health Care Stocks that had been stalled, chiefly pharma and biotech, as well as the companies that are involved in the extraction of oil, caterpillar and helmerica. Last night i said its worth it ic if youre a trader, because many of these stocks are severely oversold. The problem of course, is that retail, in actuality is very weak. And oil, while trying to hold 45 here, needs to see some supply cap or demand accelerating. I expect a counter trend rally to continue. But unless theres something real, you can watch the dow and i lost believe the defanging is something that you should have been ready and waiting for. Investors love growth above all. Particularly when the economy isnt moving all that well, which it isnt now. Periodically in the great bull markets, you get reversals. On d and so you got to be ready for each of those stages as the money comes out of the trading names and goes right back in the Growth Stocks that are are shaking the weak holders. Thats the process that beer going into next week, now the good news is that there was so much destruction today, that you can probably end up buying some of these nifty 50s as i called them on monday. The bad news is that because rotations tend to last three days, the big money thats trading into the value names, doesnt come back until wednesday at the earliest for growth. So dont go into it all at once. By the growth and then buy the selloff. Some of it was pure profit taking as the fangs were so overdependent. That part, im not sure at about. And with that little seminar out of the way, whats in our game plan for next week . Okay, on monday, we get something you normally shouldnt care about, and actually its something we have never talked about. But its going to be front and center, and something i need you to know about it. Its called the Monthly Budget statement. See, uncle sam has fallen behind in extracting money from you, and that might cause a short fall from the flushs. Given the president s troubles, racing the debt ceiling may become a real political hot button. Something we never thought with a white house and both houses controlled by the republicans. I smell trouble here, that agenda is just say dead. Speaking of taxes, on tuesday, we hear from h r block, at one time we were concerned that President Trump would simplify the tax code and that would hurt h r block. I prefintuit. Wednesday is the biggest day of the week, thats because the fed announces what its going to do with interest rates. Its vital after this bank stock rally we had today, the fed has to say were going to raise rates. If the fed waffles, then rotation to the banks ends immediately and the money could veer back to the techs, not all the way the way they were this morning. Buzz i expect the tech stocks to be overextended by the end of the week. Thursday we hear from kroger. When i heard that nordstrom was going private, i thought that was an excellent time to look at the company more closely. Sure enough, on friday, along comes corning, holding a huge Analyst Meeting in this country, which recently took a 200 Million Investment from apple as part of an advanced American Industrial fund, that apple announced on mad money. After what could be a wild week of row tagtational activity. Maybe well get more answers if something is really an knowing the giant. The behavior youre seeing is not unusual, it happens all the time in great bull markets. The hottest of the hot get tee hot too hot. Give up some of their gains, and then attention moves to the lowest of the low. Thats why i say you have to be diversified because those who only owned the hot ones got scalded today, but those with the diversified portfolio will live to play eanother day. If you own no tech, youre going to get your chance, perhaps as early as monday, but remember, there is no gang without pain. Jerry in utah, jerry . Caller jim, a big booyah from utah. I appreciate all the good advice you give us. Since some of the bank stocks have gone down lately, i wonder if i should be buying jpmorgan. Were going to talk about this in our Club Conference call on wednesday. I think wells fargo is cheaper than jpmorgan and wells fargo is going to be annualizing the negatives and thats good for the stock of wells fargo. Steve in florida. Steve . Caller big booyah too you jim, from beautiful, sunny, florida. Thank you for everything. My question is ibm, should we buy, sell or hold . I think ibm is, its time to buy. I was talking to my colleague matt moore today, we both think this level is the level, youve got the Company Going more into Data Analytics. This is one of the most vicious rotations we have seen, and its not over, hey, look, it just started. On mad money tonight, with news of a 7 billion merger in the core space. And many thought a Trump Presidency would help Chicago InfrastructureCompany Build a bridge to promise. What the heck is happening here with that company . And im going to investigate. And inx labs is up over 45 year to date. What is is driving that unbelievable performance. Stick, stay and stick with cramer. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Right now the data center is on fire as more and more companies migrate to the cloud. Last month i recommended cors data center. They own Major Centers in new york, los angeles and chicago. Their stock has gone up 23 just since the beginning of 2017. Cors site reported an excellent quarter last month. Its got a great, great tradition of racing its dividend. Lets talk to the companys president and ceo. I should say paul, he was in my Law School Class at harvard in 84. Its been a remarkable way and a much less risky way to play the revolution in tech. We have been fortunate, we started with a base of data centers in great markets but also had unique characteristics, most of them were very network dense, right next to the Eyeball Networks that the Cloud Companies use, that will use Data Products to get out to the consumers, but we added to that a unique piece that we are typically the only provider of in most of our markets which is the scaleable capacity right next to the network node in a campus environment. Which as you know, the processes get more powerful, the cpu chips go to gpu chips, and as a result, higher density deployments are required, and if you can directly connect with efficiency, it can save a lot of costs. You saw the news today about digital reality. Is this the beginning of a lot of consolidation, because there really are only a couple of companies that are special enough to do what you do. I dont really know their thinking about their merger, so i dont see it as the beginning of a trend, we are in somewhat of a differentiated product for the most part, so it doesnt seem to have much impact on us. If someone were to go inside one of your facilities, please tell people exactly what you would see. Because a lot of times people are saying, that sounds really good, but whats in those things . Mostly racks with computers in them, servers. But theyll see in our facilities a range of servers that run on three to five kilo watts per rack, which are typical Processing Power, with much more significant cooling requirements and i think the thing that would strike people the most is the engineering around power and cooling and how it changes from space to space and room to room depending upon the deployment. And it must use a gigantic amount of power, a data center . Thats one of our biggest focus is to improve power efficiency. Thats partly why this campus model works is because most of these Network Nodes are in less efficient Carrier Hotel space, hard to cool it efficiently. But if we can build scale next to it, we can achieve for our customers much more efficient power and lower their cost. Theres a company nvidia, its stock trades pretty crazily, i have liked their stock for a long time, it went up and down today. They say they have a chip thats actual to 400 servers that will come out this fall, will that impact the historically, and i think the same will bear fruit here, as Processing Power has become more efficient, therefor less costly, it has enabled more use cases for data. So the demand has continued to see the improvements in Processing Power. And there are some things on the horizon that require this type of Processing Power to really go commercial in a big way, autonomous driver vehicles, internet of things, artificial intelligence, and a lot of the cutting edge Data Analytics well see over the next 5, 10, 15 years. What i want people to understand is these are differentiated products, but almost every single Major Tech Company uses corsite, right . Its amazon, but its everybody, this isnt anybody that i didnt see there of the companies that we all i think we have pretty much all of them in our data centers and a lot of our Peer Companies do as well. These companies have great demand, we just are in that space that has, is a bit more differentiated and provides a bit more customization that provides a certain segment of customers. If that volatility today was too much for you when it comes to the big tech stocks, the fanning stocks. This is a less heart stopping way to invest. Thats paul zurich, president and ceo. Mad money will be right back. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. What in the world is going on with Chicago Bridge and iron, cbi. That company has seen its stock get cut almost in half so far this year. Including a 15 decline this week alone. The move by itself is pretty stunning, but what makes it even more surprising, is the fact that back in november, Chicago Bridge and iron was seen as the quintessential trump stock, the kind of company that could benefit from the president s infrastructure agenda and his embrace in domestic fossil fuel production. So how did Chicago Bridge and iron manage to lose 15 of its value during the week that the white house dubbed infrastructure week . [ buzzer ] and whats behind the longer term decline to cause the stock to plunge some 80 from its highs in april 2014 in . More importantly has Chicago Bridge and iron finally fallen to the point where its stocks represents real value, or it still way too risky to own, even down here . Lets dig deeper to find out. Contrary to its name, Chicago Bridge and iron makes most of its money from the utility stream, upstream, downstream, bulk natural gas and we cover all those here on mad money, they also do some work on work on water and wastewater and provide local governments can engineering services. The company divides itself into four pieces, Engineering Construction where they actually build all the stuff, Fabrication Services where they make piping solutions, storage tanks, Capital Services where they provi provide management technology. Thats what Chicago Bridge and iron does as a company. But from a stock percentage, its just going down. This weeks decline has been staggering and the latest in the long line of beatings thats taken this stock from just under 90 three years ago, down to 16 and change today. Because of all the sweetness, it started off pretty straight forward, Chicago Bridge and iron is an energy Infrastructure Company after all. For 18 months oil and gas went relentlessly lower which had a Chilling Effect on oil production. But that doesnt explain all the recent weakness. In 2014, the companys record improved by 15. 9 , no problem. In 2015,. 3 , so far in 2017, Chicago Bridge and iron has experienced a massive 31. 5 revenue decline, just an incredible beat down and you cant just blame that on energy anymore. The fact is Chicago Bridge and iron is also suffering from a bunch of Company Specific missteps that have cost them dearly. It all goes back to a pair of acquisitions in 2012 and 2013. First in 2012, the company spent 12 million buying shoal group. Shoal was a major player, but cni only paid a modest premium to acquire the thing, but they also took on an enormous amount of debt. By march of 2014, they had 1 1. Billion of longterm debt. And were going to hear more on that later. The other important acquisition occurred in 2015, when Chicago Bridge and oil bought a company that concerts synthetic gas. The company bet on an industry, coal, an industry that went out of style and President Trump cant reverse that. 2017 started to get really complicated. Among those companies that shoal bought was but the partnership became troubled experiencing massive cost overruns, these plants turned out to be too hard to build. So the two companies came to an agreement. Cbi would take on westing houses debt. When it came time for the companies to compare notes and find out how much money was owed, the numbers were very far apart. Westing house said that Chicago Bridge and iron owed them more than 2 billi 2 billion chicago and iron said that westing house owed them 2. 5 million. Then they appealed to the delaware supreme court. We still havent heard a decision yetz. But Chicago Bridge and iron seems upbeat and confident and well probably get a verdict any day now. But this whole situation is a big mess. Whats more is that westinghouse had to go bankrupt. So even if Chicago Bridge and iron wins the suit, they may not be able to collect all theyre owed. And if they lose, 2 billi 2 bil. A few weeks ago, the companys longtime ceo announced he would step down. Shareholders greeted his retirement with glee. In february, Chicago Bridge and iron told us that its selling its Capital Services business to a private equity firm, ver y veritas. It forced the company to recognize a noncash good willm speaking of desperation, the reason Chicago Bridge and iron has been clobbered this week, because a private Research Firm came out with an article. This means that Chicago Bridge and iron draws down more debt than we see on these financial statements. Basically these numbers are window dressing to make the picture look less bleak. The maximum draw down over the previous 90 days was 1. 7 billion that indicates that things could be worse for Chicago Bridge and iron than they look. At these levels, the stock is tradinged a four times earnings, thats the lowest price to earnings model. But you need to remember, this could be the ultimate value trap. Heres the bottom line, sometimes stocks go lower because they deserve to go lower, never go bargain hunting with a busted piece of merchandise. But if Chicago Bridge and iron wins the lawsuit the stock will pop. Instead stick with companies that had good fundamentals and watch cbi from the sidelines, its a binary outcome. In other words this one is not for the squeamish or for widows or orphans for that matter. Caller my question is abo