Energy's Tumble Stirs Up a Rally

The reduction in gasoline and fuel stock is beginning to cause a host of stocks to rally, even as it hasn't even started to flow through. When you see stocks like Boeing (BA - commentary - Cramer's Take) and Honeywell (HON - commentary - Cramer's Take) up, that's the price of crude talking, as a decline in oil is going to allow airlines to survive and buy more planes.

Honeywell also got a great contract to service Southwest Airlines (LUV - commentary - Cramer's Take) planes on top of a great quarter that no one cared about. At least that day they didn't. The collapse in oil and gas is causing Procter & Gamble (PG - commentary - Cramer's Take) and Kimberly-Clark (KMB - commentary - Cramer's Take) to rally, even though they first saw numbers lowered by UBS today and the latter severely disappointed but is on its way back up. Colgate-Palmolive (CL - commentary - Cramer's Take) gets a lift here, too.

The transports get a cost break, with UPS (UPS - commentary - Cramer's Take) not down today on still one more number that's not palatable and FedEx (FDX - commentary - Cramer's Take) having a rate break. (It is incredible how the few publicly traded truckers -- which get fuel surcharges -- have already rallied hard.) So does Caterpillar (CAT - commentary - Cramer's Take), which gets a boost off the quarter that is not slapped down by oil and gas because the earnings are just too powerful.

Meanwhile, we know that the banks now rally on every penny of decline in natural gas and oil, and today is no different. American Express (AXP - commentary - Cramer's Take) was terrible, and the news out of Wachovia (WB - commentary - Cramer's Take) was highly suspect, but nobody cares, and the group is being bought (as Helene Meisler suggested). All of these are directly spawned by more out-of-energy money. And let's not forget that WB is actually unchanged. That's money out of energy again.

Same with health care. Look at Gilead (GILD - commentary - Cramer's Take). There's a stock that got downgraded by Goldman -- off the conviction buy list -- and it means absolutely nothing. That's just incredible, how much buying power there is. The notes would have made you feel that Schering-Plough (SGP - commentary - Cramer's Take) is on bankruptcy's door. I didn't see much to like in UnitedHealth Group (UNH - commentary - Cramer's Take), but it didn't blow up, and that's enough. Too much money coming in.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

TheStreet.com has a revenue-sharing relationship with Amazon.com under which it receives a portion of the revenue from Amazon.com purchases by customers directed there from TheStreet.com.