 Alright, good Tuesday morning everyone. It is time to talk about the markets with Jim Cramer on the floor of the New York Stock Exchange and Jim Let's start with earnings from Pepsi and actual earth's plus name. Yeah, okay It's really important. Listen up. PepsiCo's gonna report ended up being the best Organic grower. It's got the free-to-late business is not Capable being crushed by the wars among Amazon Walmart target. It's a convenience store plate, too There's a lot of innovation here that drives a lot of the growth But it doesn't matter because you see you don't have any compares until later on And so what the pattern has been with PepsiCo is it reports people don't realize unless it just comes out You know raise forecast and that's not what they're doing right now What what'll happen is people sell it down and we expected that that's why we trim some You know, we made a very good sale and explained to people in the club that look you know It's kind of run but then what happens is it goes down because people say hey you know what they didn't raise the forecast they didn't boost it even though they did better and That's your opportunity and that's saying things playing out right now You're gonna have more on this for the call for club members tomorrow 11 a.m. Absolutely, okay. Let's also talk about Amazon Prime Day I know you tried to buy a Breone suit on Amazon. They had one they had one 48 and I'm a 42 Okay Amazon Prime Is it's something it does attract people who have never been on Amazon? Those who are on Amazon all the time are not particularly blown away by it and I'm wondering whether there won't be a backlash Beginning today where when we hear that it's about 20% year-over-year maybe even more that maybe people come back to some of the retailers They've been driven down by a lot of short selling Watch Costco watch Costco. It's still expensive Costco 23 times earnings But I think the Costco is the one that was hit from 181 down to 150 when we know things are good So maybe perhaps this kind of for a moment There's a lead up in the selling in these best in the best of breed retailers, okay? Meanwhile snap falling below its IPO price Yeah, there's a devastating piece by Morgan Stanley really just kind of upfront first analysts to just say listen Instagram it's going after the bread and butter and Instagram is powerful enough obviously on by Facebook to be able to cut its Rates for whatever directly competes with snap in order to make trouble for snap And it also says that the return on investment for advertisers is not clear for snap Now when I spoke to you Johnson, who was the the CFO of PepsiCo this morning on squawk on the street? He's he's also the on the board of Twitter. He says he sees more ad dollars still going to online So it's not like that that snaps a disaster But what it says is now it's of course below the price where the deal came What it says is that if advertisers can't get a good return and Instagram is going after them It's become a quizzical holding. It's quizzical to own this guy Okay, meanwhile Tesla expanding its service network. Yeah, I mean I was talking to my friend Phil LaBeau and it's very interesting Tesla's been going down down down the stock and it's only the expansion of the service network well timed obviously by Elon Musk, but then he said well look at you well time. He's got this on the agenda It's always been on but whatever it comes as an interesting time where the dialogue has been controlled by the bears And this is a dramatic expansion. You wouldn't be doing this unless you saw a lot of demand All right, Western digital matching some bids for Toshiba's the club members own Western digital and the fact that they're matching the bid is very bullish because what's really Made it so Western digital has not been Made it so that it's so ranker says that Western digital has been trying to get away with buying a company for less than other bidders If they are got the same bid as everybody else Then there's no reason why it shouldn't win because Western digital's Sandist division is indeed the principal partner of Toshiba for their flash business And then on stop trading on swark on the street you talked about Exxon mobile. Yeah, I mean it look oil line the sand yesterday The club members know we had a patchy. We've been very frustrated with oil very frustrated with a couple of our retail positions TJX and And Walgreens very frustrated with snap one It's nice to see oil get a little bit of lift here by a Barclays call But don't get too excited in the end you need oil inventories down dramatically You need to bake your rig countdown and you need some event that either takes Libya offline or Nigeria offline That is a series of things that have to go right for oil to rally so be patient Don't pull the trigger fascinating interview on mad money last night with on course Bob Shepherd Yeah, I mean what what's going on course very interesting This is a battle of two brilliant billionaires on the one hand you've got Warren Buffett wants to own this Okay, because it's terrific asset on the other hand the guy who owns the principal amount of debt is a Paul singer from Elliot and Elliot's basically saying listen you've got to pay us more. I think the bankruptcy court is going to say Buffett's got nine billion Elliot's group that he's putting together is going to once it willing to pay nine point three billion I think that the it's incumbent upon the bankruptcy court to say listen We've got to take the nine point three billion dollar for it because we need to have the most that you can get So this is a tricky situation Will Buffett top that bid well you have to see whether the bid is firm if the bid is firm I think that they're gonna get it because I think the Buffett has said listen. It's nine billion dollars That's what I'll pay and no more, but you got to watch this. This is Elliot versus Buffett one two of the smartest Greatest investors of our time. We'll be watching that one and then tonight. You have the constellation brands that you are Yeah, Rob Sands has just done a remarkable job. We've been behind constellation the whole way now This is one of those examples where because I own a bar bar Saint Miguel I saw early on how powerful bedello and corona are I mean that is what people drink also now the drink Pacifico Since then he's bought high-wesk, which is just a fantastic whiskey brand And he's bought ballast point, which is a great craft beer and he's bought Casin noble Now if you saw Diageo pay for Costa Migos, you're got to be laughing if you're Rob Sands We'll ask that because cost of noble is a better property and and he paid about 20 million for it instead of a billion Rob Sands buys right. He has some tremendous. You know, he's Raffini. I was over in Tuscany. We were drinking Raffini That's his to his opus one. He has up some amazing wine brands. Me only prisoner and I I'm always in awe of what he's done. He's a spirits guy, and he's a tough guy. I really like him That's tonight at 6 p.m. On mad money and then meanwhile President Trump to nominate reyna quarrels as the top-fit bank You know, it's interesting We didn't go over that this morning on squawk on the street And I think one of the reasons why we didn't is because well, who did we think that they would get this is a guy? Dan when Dan to Rulo Left Dan to Rulo was the guy who really ruled banks. He was the toughest taskmaster banks He's gone really didn't matter. You didn't think there was no way that Trump was gonna put on someone who was Who was tough on the banks this guy'll be easy on the banks and maybe the banks need this now You know, there's always people say listen, we haven't solved too big to fail and we got to bring up the banks I find it tiresome dialogue the banks have too much capital Okay, same with the banks Jenny Yellen testifying on Capitol Hill Wednesday and Thursday. Yeah I mean Jenny Yellen has historically when she goes on the hill not giving you any real Insight about number of rate hikes that are needed Usually just says listen. We're going to be data dependent and we're going to be patient and careful But we will raise if we have to raise that's kind of been her dialogue and I think she's gonna stick with her dialogue All right, we just want to reiterate the club member call tomorrow at 11 a.m. Yes, it should be a lot of fun I've got some interesting anecdotes from the old days. Yes, and you always get great feedback on those calls All right Jim Cramer. Thank you so much and for more information on the stocks Jim mentioned Please head back to the street comm