Is always one step away from the slaughterhouse, include thing one. Every day is the last day of the bull its been that way for as long as ive been following the stock market its going to stay that way. Just a fact of life. Like when you get a daily today that repels the averages from double digit gains, dow dipping 62 points, s p declining, nasdaq losing 0. 82 youre going to hear that the bull has died of xexhaustion after a hard, long run the bull welcome the bear. So tonight lets deconstruct the latest in a long line of bovine oh witbituaries to put it in perspective. That way we can understand how it can be resuscitated every time since ive gotten in the Money Management business, bulls die all the time they rarely stay dead for that long first, as i always tell you, if you want to know the key to the stock market, you have to know the key to the bond market, which is the benchmark tenyear treasury i hate bonds theyre so boring, arent they you buy them, you get your money back in the interim, collect a little income couldnt be more different from stocks but from the day i walked in the door at Goldman Sacks in the 80s, all i heard is the bonds, the bonds, the bonds the total supplication before the bond market always revolted me i interview hundreds of ceos, i had to take the business of so Many Companies somehow i might as well check my mind at the door and just say, hey, where do the bonds stand . Sadly the answer is yes, at least when it comes to the daytoday behavior of the markets. Why should we trust bonds more than our own brains . Bonds represent trillions in activity, much more than the stock market you ignore trillions in Decision Making and firepower at your own peril. Second, because bonds are far more right than wrong, at least when it comes to the direction of the entire stock market obviously if a Company Reports a remarkable company, it can slim against the bond tide, there are always individual sections as an asset class, stocks are often at the mercy of bonds. Today, bonds rallied hard, signaling to everyone who follows the bond market is we got a big slowdown ahead, which is going to come with a lot of deflation. Thats ultimately worse for the economy than inflation thats the subtext were all allowed to have our own interpretation ive got a twofold explanation i think the bond market is prone to exaggeration, and todays one of those days were getting bond market hyperbole bond markets are transfixed by the oil market i believe thats just plain wrong. Supply from this country is overwhelming demand, and thats how we went into bear territory. When oil was at 53 and looking like it was going to 60, we said it would go right to 43 in a heartbeat. Because there are way too many speculators betting the wrong way. We believe a lot of those speculators are now being blown out. And while it is messy, i think it smells more like a bottom than a new top even though its that kind of a bottom why . Because everyone loved oil, we ated it. Now the haters are coming out of the woodwork amazon today amazon announced a plan to take over fashion with a try at home and send back policy. I guess theyre willing to bet women wont buy clothes, wear them saturday night and return them who knows . We can laugh but amazons rampage is now getting out of control this company is now wrecking the price structure of everything that consumer buys the ole Consumer Price index is being amazoned and the fed might need to be able to acknowledge amazon is mowing down inflation so we dont need to raise rates anymore. So what stems from that view whats on your screen, the stocks and industrials go down tech stocks get pounded because the bonds say the economy isnt moving fast enough and the drug stocks go up how true is this story today was certainly true today were projecting all the bond market thoughts to our stocks at the moment, they reflect the sum of our deflation fears what happen it is oil rallies tomorrow what happens if the market takes stock in fedex or adobe, all which rallied sharply . Can we just recognize Lower Oil Prices and lower Consumer Prices i know, heresy, but true the bonds were a cool task master today we cant ignore them we cant ignore the bonds, right . However, we must not be enslaved by them either tomorrow, bonds can take us in another direction or could be more positive about growth than they let on in this session. They do play it close to the vest so dont ignore the bond market but dont let it be your master. Bud in ohio, bud caller booyah, ski daddy, thanks for taking my call. Yesterday morning, i heard the Energy Secretary waxing enthusiastic regarding exports of liquefied natural gas it reminded me of an interview you had in february. But since that time, the new company has fallen from 15 to about 10. Yeah. Caller is this a good time heres the problem. Theres a lot of companies in this business now. Weve done a lot of work theres just too many coming out of the woodwork wanting to do this so we have to take a pause plus, its energy related, and Anything Energy related right now, people dont want to hear about it that could change but thats the way it is right now. Alan in ohio alan caller hey, jim cramer, a big booyah to ya from ohio. Whats up caller hey, jim, i wanted to get your thoughts on pbi you know, i think theyre a good stock, but theyve been riding a sea saw from 13 to 18 in the last year. Just wanted to know your take. I dont want to put words in the ceos mouth, because ive seen them do a lot of good things lately. A bunch of the announcements that are very good with y but we have to hear from the man himself. This is a compelling story, but i need to know more before i make a judgment. Sure, we were impaired by bonds today, but that doesnt mean theyre our only master. Pay attention, but dont be enslaved later on mad money, ibms ceo Ginni Rometty, balancing reinventing one of the most Iconic Companies on wall street. Well see how shes managing business and with more businesses focused, can a company like wick help you score with the click . Stick with cramer. Dont miss a second of mad money. Follow on twitter. Have a question . Tweet cramer madtweets. Send an email to madmoney. Cnbc. Com or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Earlier today, we got to talk with Ginni Rometty, the chairman, president , and ceo of ibm. We discussed everything from ibms cloud initiatives, personalization of watson to Warren Buffetts sale of a big chunk of ibm stock earlier this year and the companys multiple comebacks from adversity check out this twopart story of a leader in a challenging business at a challenging time, from ibms Watson Center in new york city. Ginni, i dont want to bury the lead you were at the white house yesterday. Yes what did you talk about and what can ibm do for our country . Look, this is a part of a series of meetings weve had about modernizing the i. T. In our government theres so many opportunities. Its about modernizing the systems and my, we work in many of them. We do much work in dhs, we work around things like the Veterans Administration were helping our vets using watson, sequencing the genome. But it was a day not about what any individual company did, but ideas on how to modernize the i. T. That runs the country, and then i participate, and you know ive been quite focused on how for a country we have got to work on our skills and prepare not only this current generation, anyone for work. Because all work is going to include technology to me its the root of many issues in this country that has to be addressed. And it is the basic skills weve got open jobs and we need to fill them so weve been working on that. So when you tell the president that, im sure he says thats a very good idea. Whats the followup . Has there been followup with ibm . Theres been very good followup two big areas of followup that im optimistic about one is last week you saw that the administration signed an order on apprenticeships to get that moving at scale that is one great way for Public Private to come together. And we do that for students around the world and in this country. The second thing is that we made a lot of great progress and will be sponsoring a governors meeting come this fall, which is this idea to scale ideas like pathway to Technology Schools that you were so gracious to host some of our students who graduated. But a sixyear high school, we coined something new collar skills of the future, not white or blue collar, but the new, fresh, contemporary skills that idea is what were working to scale that education across this country its the simple idea, a sixyear high school. You work with public high schools, help them with curriculum and weve been at it for several years. Well be at 50,000 kids next year sit a solvable problem thats the discussions i look around here, and i think of old school image of ibm versus what youve done with the sixyear and i think that it would be great to hear from you what is the new new ibm, since ibm has repeatedly reinvented itself lots of people have bet again and again it cant, but its doing it right now tell me about it what makes ibm to me one of americas greatest technology companies, we are right in the middle of reinventing ourself. The technology is around cloud, cognitive, our word for a. I. Its about augmenting what we do, so we can do what were supposed to our best and then thats the ibm that takes that technology and the know how about how the world works, and puts that together. And actually changes business. We are the champion for business and so what you see here as part of that, boy, half a billion a year in retraining you were saying look at the faces here jim, 50 of ibm is millennials that are here. These are contemporary working spaces if youre big and people say how can Big Companies be fast . You have to modernize how people do that work youre in the middle of a Design Thinking lab take everything about you love about the consumer ease of use and put that in use. We have 35 design labs around the world. Youre in the middle of one of them they work with clients so the first city, apple watch, comes out of these places. So you change the design thinging, put them on agile, small teams, then you give them contemporary tools, colocation. Weve done this to work spaces in 300 places around the world okay. So as someone who is interested in the stock as well as the company and the institution, and it is an institution like no other, you have to turn the battleship around to some degree, because the worlds changing and that means that at given times, analysts might say wait a second, its got flat revenues for a long time. Its got this legacy business. How do you deal with the legacy business and the Strategic Imperatives . Strategic imperatives is business without having the other business drop off. A couple Different Things one is, like i said, what we need to do is reinvent for every era. When you do that, you do acquisitions, you change and introduce new products and services so i wouldnt call it legacy we are the one that hosts much of the worlds processes, their data thats important. If i had to pick one word that ibm is reinventing around, its data we should come back to this point. Thats why you bought weather. Its more data actually, most people think we bought weather just for the data weather does impact it is the number one influencer of everything the Weather Company is on every phone you touch. Every apple phone, soon on every samsung phone. We do serious internet of things with watson and the internet of things so elevators, coney, whirlpool to make it so a repairman knows what you have . A repairman knows what it is, so when he shows up he knows what to do this is why we say ibm, reinventing it with cloud and watson, its together. Watson will touch a billion people by the end of the year through these things so whether through your appliance or elevator thats there. Just to frame back to your question about the reinvention, theyre not two businesses these are the same clients, new products and services. So we help with one set of clients, the productivity we give them. And then reinvest into the new products and services, which is cloud, around mobility, Artificial Intelligence, security and as you know, while theyre called Strategic Imperatives, theyre in health, Financial Services and those have grown to be 34 billion, 42 of ibm, and its the same clients so every client says look, you have to help transition me thats the other thing that makes us so different. We transition them from one era to another so its ibm to the next era and how to transition our clients. On my twitter feed, i said please, questions for ginni. Two people said instantly how can i use watson we had bill kop on recently who has transformed h r block. They are using watson. Thats right. Many Different Things ill come back to, but when you said h r block. What did watson do that makes it different than what i consider consumer a. I. . Consumer a. I. Is typically speaktotechtosearch. Thats great but this is training watson, watson is trained in industries. What is underwriting do . What does a tax preparer do . What does a Customer Service agent do it helps them be better. And in fact, makes them be the best so what you saw, i think h r is a great one. It touched all these consumers and for h r block, it was the best nps, Net Promoter Score it was market share gain first time in years, all due to this it was watson reading the tax code and helping you with what would people like you do, and did you miss this or that . And a funny side story all the states and the federal, how many conflicting things there are. I do feel that when youre with president trump, 3 to 4 of the federal government is on the cloud. I felt like saying i hope ginni says it could help the irs but i mean, the cloud is a really important part of where were going. But i have to tell you, the cloud is in its early stages and its changing. So when i mentioned about ibm reinventing for data, i want you to think of this, any company out there, were a champion for business 20 of the worlds data is searchable but 80 of the worlds data, whether its decades of ju underwriting, pricing, risk in loans, that is all with our clients that is gold. So many clients ask for help, this is what we do and i say you go on the offense now. This is about what our role is to help you use that and youre going to need Artificial Intelligence but youre going the need one where watson is differentiated and we are trained in an industry, and more important than anything, jim, you hear this from clients. Its Artificial Intelligence that says you cant send all your data to someone elses cloud. Youll use some out there, and we do the job of dont make you move it. Because not all data can be moved. The other thing we do, which differentiates us from everyone, built for business, is that i can guarantee you as a customer that your insights, your personal data is not training that data for someone else to use it thats not true with others. No, its not. That to me is the game if youre an enterprise were going to take a break were talking with Ginni Rometty, the chairman, president and ceo of ibm thank you, ginni coming up, cramer has more with ibm ceo Ginni Rometty does she think the oracle of omaha made a mistake by selling a big chunk of his ibm stock is it a kind of check that maybe im not delivering what some of these big investors want mad money will be right back [ minions booing ] okay minions, were going back to villainy. [ minions shouting ] so bad so good that im so bad. [ honking ] so, youre villains now . [ nervous laughter ] i mean, hello sweetie. Despicable me 3. Rated pg. No splashing wait, so you got rid of verizon, just like that . Uh huh. I switched to tmobile, kept my phone everything on it oh, they even paid it off wow yeah, its nice that every bad decision doesnt have to be permanent now you can ditch verizon but keep your phone. Well even pay it off when you switch to tmobile. We had Warren Buffett sell down the stock it seemed like he said theres too much competition he felt the situation had changed since he came in is this both free to do more for you or is it a kind of a check that maybe im not delivering what some of these big investors want no. Look, we have traded publicly 100 years out there. And the trick to being a company in tech, which is a viciously competitive environment. Youve got to keep reinventing what ibm is for is for someone who values high value as a company. Because we continue to divest some businesses, create new, move forward, jim, it is always about to moving where the profit and value is what that does for an investor, that always gives us the ammunition to reinvent ourself, those profits do, and continuously raise your dividend so youll be there the next time and the next time and you have the fire popower to do that did you speak to him about that you had almost a 4 yield. You have a huge amount of cash i dont understand why he did so well, i let every investor speak for themselves and im very appreciative of all of our investors. Now, lets talk about the dividend you generated a huge amount of cash, even though youre make thing transition can that be imperiled if the older business goes down or strategic is so successful that you make less money. Theyre not separate businesses in fact, a very interesting point how we share with investo