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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 - Cramer on BA - Stock Picks) 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 - Cramer on BHP - Stock Picks),
Freeport-McMoran (FCX Quote - Cramer on FCX - Stock Picks), which he also owns for his
Action Alerts PLUS portfolio, and
Cleveland Cliffs (CLF Quote - Cramer on CLF - Stock Picks).
Cramer credited the strength in agriculture to
Potash's (POT Quote - Cramer on POT - Stock Picks) CEO Bill Doyle, who painted an upbeat picture on CNBC's "Fast Money."
He also cited
John Deere's (DE Quote - Cramer on DE - Stock Picks) 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 - Cramer on BSC - Stock Picks) upgrade on Tuesday of
Schlumberger (SLB Quote - Cramer on SLB - Stock Picks), along with a surge in oil futures and strength in
XTO Energy (XTO Quote - Cramer on XTO - Stock Picks), 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 - Cramer on YUM - Stock Picks) 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 - Cramer on MCD - Stock Picks) 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 - Cramer on SGP - Stock Picks), 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.
TheStreet.com Staff
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