This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

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

Click here for an archive of Cramer's "Mad Money" recaps.


"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) 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), Freeport-McMoran (FCX), which he also owns for his Action Alerts PLUS portfolio, and Cleveland Cliffs (CLF).

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

He also cited John Deere's (DE) 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) upgrade on Tuesday of Schlumberger (SLB), along with a surge in oil futures and strength in XTO Energy (XTO), 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) 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) 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), 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.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs