Cramer's 'Stop Trading!': Return to Spending

NEW YORK (TheStreet) -- "People are spending again," said Jim Cramer on CNBC's "Stop Trading!" segment on Tuesday. "Nobody wants to talk about it, but people are spending again."

He said that Ralph Lauren(RL Quote), with the "great number" it reported today, is joining Nordstrom(JWN Quote), Coach(COH Quote), Tiffany(TIF Quote) and Williams-Sonoma(WSM Quote).

"It's just going to be a very strong holiday season," he said. "None of these companies have excess inventory, so they don't have to dump stuff."

He said there's a "colossal fight" going on between Wal-Mart(WMT Quote) and the suppliers" -- "and right now the suppliers are winning."

"We're seeing power shifting from the Wal-Marts," he said, "to the Black & Deckers(BDK Quote) and the Stanley Works(SKW Quote)."

He also recommended Newell Rubbermaid (NWL Quote), which he said has a "substantial tool division."

There's another war, Cramer said, among phone companies, particularly AT&T(T Quote) and Verizon(VZ Quote). "These companies hate each other!" he said.

He recommended American Tower(AMT Quote). It "reported a great quarter," he said. "I would go buy that."

-- Written by Rebecca Corvino in New York.