The interim got in the way of the story. It got ugly fast today. Im talking about how two Great American industrials that we follow here on mad money, pbg and honeywell, cut estimates ahead of their quarterly reports. Those reports are going to be coming out soon. Amazingly, while the whole market initially shuddered in an acrosstheboard selloff, the averages spent most of the day in recovery mode. A wicked session turned relatively benign with the dow ultimately dipping 28 points, s p declining 0. 33 , and the nasdaq losing 0. 27 . These two earnings warnings couldnt havco time, worse time for the industrials at least which had been rallying ahead of the soon to be released quarterly reports. But as is often the case, money flowed into other sectors as soon as the disappointments happened, notably the banks and retailers once the cyclical smoke cleared. Despite a tepid nonfarm payroll report, at least according to the prognosticators, these two groups helped the markets midafternoon rebound. Now, it also didnt hurt that big pharma and many tech stocks refused to give up the ghost Global Economy and much more to do with plain old american ingenuity. Thats what happens when you come out to San Francisco. However, starting next week, we begin earnings season, and after todays jarring news from those cyclicals, we can bet not many Portfolio Managers seem to be set up for what awaits them. Monday is columbus day, which will be a respite from any sort of news both macro and micro. This holiday always makes we wonder why the heck the stock markets open when the much, much larger bond market is closed for trading. On tuesday, we hear from alcoa, official opener of earnings season. It will be a confusing quarter to say the least because the company is splitting into a proprietary engineering business and a commodity maker of aluminum. We own the stock in my Charitable Trust, and as we told subscribers earlier in the week, the breakup could bring a whole new class of investors into each segment. That should be positive. However, the concerns honeywell just raised about Aerospace Demand could definitely taint alcoas biggest end market. I think the long term remains ultimately translate into aircraft orders. So any weakness derived from that line item might be a buying opportunity we also have the big yum brands Analyst Meeting on tuesday. Now, yum is splitting into a fastgrowing Chinese Business and slowergrowing rest of World Enterprise that i think will offer value and a potentially bountiful dividend. Earlier this week, yum told you a story of subpar chinese growth, but you know, that makes the story a little less attractive. But i did think the company was short on color about that disappointment. This Analyst Meeting could ga in a breakup that i believe will unlock substantial value just like alcoa. The railroads have been red hot, but after todays industrial disappointments, i wonder if the stocks havent become divorced from the near term fundamentals. For example, csx, which reports after the close wednesday, has seen its stock climb from 24 to 31 since the middle of the june. You got to wonder is that too much of a move . I bet csx is headed back down unless coal has picked up. Key cargo. Has been, so the comparisons could be very easy for csx. Why bother to mention coal at all . Because at last months delivering alpha conference, david faber and i hosted a panel where one of the participants made a strong case for owning a Company Called tech resources. Thats a producer of whats known as coking coal, the kind thats used to make steel. Prices have gone up a great deal for this type of coal of late. That only happens if were seeing a pickup in demand, especially in chinese demand. You know what, that if you own this one, you better be praying for coal volumes to stabilize or else the stock is overvalued although its had remarkable expense control for years now, which has helped buoy the stock all the way higher. Unlike the rails, the Airlines Stocks have been deadly this year, one of the worst being delta, down 23 for 2016. Trading at just seven times earnings. I think thats too cheap. If delta merely says that it sees business stabilizing when it reports on thursday, youre going to make some money here. I look at this stock and see a thats what i call decent risk reward. How about a company thats performed marvelously but not marvelously enough . Im talking about ulta salon. Well be paying close attention to their thursday Analyst Meeting. Uber cramer fave ceo mary dillon needs to justify why her stock still can deserve to trade at nearly 31 times earnings, much more expensive than the average stock on the s p 500 although the company has much better growth than just about any other a ton of them. Thats important because even though ulta is down 40 bucks from its 278 high, it needs to Say Something that makes wall street fall back in love with it all over again after investors fled this morning in the wake of its most recent good but not shockingly good quarter. Friday is the big earnings day of the week with three of the four largest banks reporting. Each has a very different story to tell. First up is citigroup, which has gone from being a regulatory nightmare to a Bank Examiners darling. Move from the high 30s all the way up to 49 and change where it closed today . My Charitable Trust owns this one because we believe its too cheap versus its book value, meaning what it would be worth if they just liquidated the whole darn thing. I got to tell you, i think any weakness is going to bring in buyers, not sellers. But like all banks, citi needs higher Interest Rates to really blow away the numbers. Next, jpmorgan reported terrific results last quarter, the best of the large bank universe, and its stock has held up extraordinarily well. Still, its up just 3 for the year. So if the company can deliver another number that beats expectations, i think its got more room to run. Even if the fed doesnt raise rates at its next meeting, jpmorgan is doing quite well in this environment already. You got to hand it to them. Next year could be even bigger. Lets listen for clues what the Company Might do with its substantial London Office because of brexit. There could be an actual earnings per share hit if management decides to pull up some of its stakes and bring them to the continent. Finally, there is the most controversial stock and company now, heres a bank that even two quarters ago was thought to be the finest and cleanest in the land. But the last quarter disappointed, and then on top of that, well, weve now heard about the scandal involving overly aggressive crossselling, which was either abetted or ignored by toplevel management. Will heads roll . Will the current ceo john stumpfs tenure be curtailed . Will chief Financial Officer tim sloan perhaps be given a more prominent role . Will there be specific actions taken to separate the chairman and ceo roles . Fargo ever get back its old premium valuation . Maybe that was caused by all that crossselling. It used to be the best reason to own the stock and now its diminished as a growth driver obviously. Weve been stuck in this stock for my Charitable Trust forever. And have no conviction that things can bounce back without multiple rate hikes. Theres nothing in the cards that suggests the fed will be that aggressive. Either way, the bottom line is that we have a busy week ahead of us that just might define how the rest of the year goes. Might be subpar, but we dont have to wait too long to find out. Lets take some calls. Lets start with jonathan in new york. Jonathan. Caller jim, how you doing . Its jonathan from new york, and i want to give you a big st. Johns university mba booyah. I want to ask you about a company that your Charitable Trust has recently taken a position in, bristolmyers. I understand that its, you know, a screaming value play. But i want to get your opinion on how the industry will perform asho of a Clinton Administration with increased speculations and so on and so forth. Okay. Well, were taking a very longterm view for my Charitable Trust. As we told club members, we dont expect results this weekend. Dont know if theyre going to be that good. We like the thing for a value play. They have a lot of levers to be able to pull and the idea to just have one drug, which was important, i admit, just fail, and it really didnt fail, tells me i think there could be down and then up, and thats how were playing it for action go, st. Johns. Dorothy in florida, dorothy. Caller hi. I am a 93yearold millennium who loves to play the stock market. In doing this, i bought over 5,200 thats 5,000 no, 52,000 shares of sirius at 4. 21 per share. Wow. Since then, it refuses to go up. 19. It goes back and forth. I can sell it and take a heavy loss and buy stock that moves, or i can hold it until it goes up, if it ever does go up. What is your recommendation . All right, dorothy. First of all, i think youre fabulous. I love the fact youve been at it for a long time. Youve accumulated stock. I am a believer in sirius xm. Is it necessarily for a retired investor . Theres some risk to it. Stick with it. Next week is going to be a busy one with earnings season kicking off, and after todays disappointments from High Profile Companies like honeywell and ppg, maybe you ought to buckle up. It could be a rocky ride. On mad tonight, its the old economy versus the new economy, and its not looking all that good for the old school industrials. Ill tell you how they could recover. Plus all this week weve been profiling companies on the cutting edge of technology. Tonight im talking with bank of americas ceo about its investment in mobile. And is digital powerhouse adobe getting enough credit for its ive got the ceo. Stick with cramer for more from our San Francisco special, invest in america, defining the future. Announcer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a miss something . Head to madmoney. Cnbc. Com. Jay knows how to keep his wheels spinning. Nice shorts dad. They dont make em in adult sizes . This is what the pros wear. Look at the lines. Uhhh. Look at the other line. Mm. Mhh. Thats why he starts his day with those two scoops. In deliciously heart healthy kelloggs raisin bran. Ready to eat my dust . Too bad i already filled up on raisins. Jay knows hell be ready for the turns ahead. Hey dont forget to put up your kickstand. Ring bell sighs. Kelloggs raisin bran. And try kelloggs raisin bran crunch now with more crunchy clusters. You get used to sweaty odors in your car, you think it smells fine but your passengers smell this. Eliminate odors youve gone noseblind to for up to 30 days with the febreze car vent clip break out the febreze, and [inhale exhale mnemonic] breathe happy. Yes. You know, that reminds me of geicos 97 Customer Satisfaction rating. 97 . Helped by geicos fast and friendly claims service. Huh. Oh yeah, baby. Geicos as fast and friendly as it gets. Woo geico. Expect great savings and a whole lot more. Why are you checking your credit score . You dont want to live with mom and dad forever, do you . Im making smoothies how do i check my credit score . Credit karma. Dont worry, its free. Credit karma. Give yourself some credit. Ahh. Still sick, huh . Ill take it from here. Im good. I just took new mucinex clear and cool. Ah whats this sudden cooooling thing happening . Its got a menthol burst. You can feel it right away. Wow, that sort of blindsided me. And it clears my terrible cold symptoms. New Mucinex Fastmax clear cool. Feel the menthol burst. And clear your worst cold symptoms. Start the relief. Ditch the misery. Lets end this. The old economy versus the new economy dynamic was very much in play again today. Quality industrial Companies Like ppg and honeywell getting slammed while the social, mobile cloud, Artificial Intelligence and internet of things plays continue to plow forward, you know the new economy stocks are winning. I got to tell you im still in a daze about this news from honeywell, which involves a steep cut in the trajectory of the companys earnings versus what we expected only a few months ago. Sluggish emerging markets, the beleaguered oil industry, slowing helicopter and aircraft orders all contributed to the surprise shortfall. Theres been a turn for the worth noting that even the best of the best, honeywell, simply cant keep the tentacles of the faltering economy at bay. Same with ppg. The transformation from a commodity Chemical Company hostage to the slings and arrows of the Global Economy to a proprietary company with exceptional products had, until today, insulated ppg from the shortfalls that had plagued its competitors. But the companys preannouncement this morning bringing expectations down yearoveryear growth to basically flat projections for the next quarter, well, it took my breath away, as did this statement from ceo mike mcgarry, and im quoting. We are disappointed with this quarters eps growth rate as we continue to operate in a sluggish economic environment with no clear nearterm catalyst for improving global gdp growth. Not a lot of hope there. The hideous declines in these two stocks left me astonished. Honeywell plummeting 7. 5 , ppg down 8. 3 . Thats what happens when companies with a long track record of beatinnu side. The Collateral Damage bled through the entire industrial world right on the eve of earnings season next week. Remember, many stocks of these big Cyclical Companies have been levitating for weeks on end simply because oil has been climbing and weve been getting noises out of china that suggest the peoples republic is doing better. Those noises are now falling on deaf ears after today. These kinds of negative stories can have a huge impact on the whole s p 500 as they indicate a slowdown in economic growth, something acknowledged by this nonfarm payroll report from the labor department. Yeah, they can pull any stocks down, at least in the morning. However, as you might have seen when the futures selling subsides, the money comes flowing back to the kinds of companies we spent this whole week examining, the companies that harness new tools to make it so the honeywells and ppgs of the world can improve their businesses even without strong sales growth. The tools we saw on display at salesforce. Com help large industrials garner whatever meager business might be out there in this environment. The prompts and cues that at exactly the time when they make decisions can be the secrets to better returns, and they can keep also the colossus of tech, amazon, from crushing your business. I like the way retail acted today. Technology has gone from being an expense and a liability for nontech companies to being a necessity for taking share in a slow growth world. So heres the bottom line. Two economies. Ones hostage to global growth. The other is only limited by the ingenuity of their executives and their employees. The industrials today, i suggest putting your money in the new economy stocks. They may have more longterm lasting value. Lets go to paul in rhode island, paul. Caller mr. Cramer, youre indeed a wealth of information. Your books and shows have made me much wiser. Thank you. After 16 years of occasionally driving by an electric boat facility here in rhode island, this spring i noticed expansion of buildings and many more vehicles in the parking lot. I did my homework on the parent company, and based on that and what i saw with my own eyes, i bought shares before their Conference Call three months ago. Their ceo was somewhat optimistic about the Third Quarter but confidently a lot optimistic about the Fourth Quarter. My question on General Dynamics is with the probability that the president ial election will have no effect on this defense the stock price, whats the best move for the Fourth Quarter coming up . By the way, your staff is just super. All right. Thank you for the kind words. Ive got to tell you General Dynamics after the honeywell announcement today did make me, lets say, feel some caution for the stock. Its been a fabulous performer. I do not think you need to get in the way of october earnings. I would hold off. Lets see the number. Get the election, and then take a hard look. Pennsylvania, kevin. Caller hi, jim. Boo, boo, boo, booyah first time caller, kevin here from pittsburgh, pennsylvania. Steeler country. Tractor supply has been getting hammered lately, and im wondering if you think this company is totally undervalued. All right. Kevin, ive got to tell you, you can say the company is totally undervalued, but were in the Fourth Quarter and theres a lot of people who now have losses in the stock. I think you have to wait until we see the next quarter. And there will be tax loss selling between here and year end. Its a tale of two economies, old versus new. And after a brutal day for the old economys industrials, it looks like the only way they can recover is by harnessing new technology, if they can recover at all. Much more mad money ahead. Speaking of new technology, adobe has transformed itself from a sleepy software play into a cloud based colossus with amazing growth, but is there more upside to the stock . Plus, bono started red ten years ago to Push Companies to help im finding out how some of the biggest names in the Business World are stepping up t