Cramer's 'Mad Money' Recap: The Bulls Are Back

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"The big news today isn't that stocks rallied," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

Rather, he said the takeaway from the day's market surge should be that his five long-term bull market theses sprang to life.

Until now, aerospace and defense stocks have been weighed down by delays in Boeing's (BA Quote) new Dreamliner. But Cramer said Boeing's announcement Tuesday that the Dreamliner is back on track should allow the whole sector to rally once again.

The rally in the minerals and mining sector, Cramer said, was sparked by news of continued shortages in both coal and copper. This will benefit stocks such as BHP Billiton (BHP Quote), Freeport-McMoran (FCX Quote), which he also owns for his Action Alerts PLUS portfolio, and Cleveland Cliffs (CLF Quote).

Cramer credited the strength in agriculture to Potash's (POT Quote) CEO Bill Doyle, who painted an upbeat picture on CNBC's "Fast Money."

He also cited John Deere's (DE Quote) strength as a catalyst for the ag group's strength.

Cramer said the oil and oil service group was ignited by a Bear Stearns (BSC Quote) upgrade on Tuesday of Schlumberger (SLB Quote), along with a surge in oil futures and strength in XTO Energy (XTO Quote), a stock which he owns for his charitable trust, Action Alerts PLUS.

Finally, Cramer credited the surge in infrastructure stocks largely to billionaire investor Warren Buffett's announcement of plans to insure municipal bonds as the catalyst that will allow many stalled infrastructure projects to finally get rolling.

China's Insatiable Demand

"I'm a Taco Bell kind of guy, a KFC kind of guy and a Pizza Hut kind of guy," Cramer told viewers as he welcomed David Novak, President and CEO of Yum! Brands (YUM Quote) to the show.

Cramer called Yum! Brands one of the most pro-shareholder, pro-growth companies out there.

Novak talked about the company's strong growth in China, where Yum! Brands is opening almost one store a day in the country. He said that Yum! offers a full line of products in China and that the Chinese people are responding well to their brands. He also said his company is prepared for a big pickup in business when the Olympics comes to China later this year.

Despite incredible growth in China, Novak said the company is also aggressively growing in Russia, India and other emerging markets.

Domestically, Novak said Yum! has some work to do to drive sales at its 20,000 outlets. He believes it can be done by going beyond what it traditionally serves to offering desserts, beverages and healthier foods.

"If McDonald's (MCD Quote) can turn around its sales, so can Yum! Brands," he said. He owns McDonald's for Action Alerts PLUS.

One on One With Schering-Plough CEO Fred Hassan

Cramer sat down with Fred Hassan, Chairman and CEO of Schering-Plough (SGP Quote), to talk about the company's recent earnings and questions regarding its controversial anti-cholesterol drug Vytorin.

According to Hassan, the company is a lot stronger than the market gives them credit for. The analysts, he said, tend to focus only on the US sales and forget about the company's global presence.

Asked about a recent study on the effectiveness of Vytorin, Hassan responded by saying that he stands behind the drug's ability to lower bad cholesterol. He downplayed the study as small and unrepresentative of the mainstream market. He also noted the drug's safety and tolerability levels were normal.