Cramer's 'Mad Money' Recap: China's Weakness Overrated (Final)

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NEW YORK (TheStreet) -- "You have to be skeptical when it comes to the press," Jim Cramer cautioned the viewers of his "Mad Money" TV show Wednesday.

He said the media has been wrong about the markets for months, and continues to be wrong everyday.

Case in point: the notion that the markets are headed lower because of weakness in China. Cramer said the media has been hammering this issue daily, despite the fact that China accounts for only 15% of the S&P 500, and almost two-thirds of that lies in the oil sector.

Cramer told viewers that China is important, but only to oil and natural gas, mining and minerals, and a handful of other names. China has nothing to do with health care, banking, retail or a good part of the rest of the economy, he said.

Where else has the media been wrong? He cited a headline in the Wall Street Journal that said the consumer is holding back the recovery. "But that's not true," said Cramer, who noted that Target (TGT Quote), along with Wal-Mart (WMT Quote) and Kohl's (KSS Quote) all said the back-to-school season was looking better than expected.

Another headline warned that Home Depot (HD Quote), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, and Lowe's (LOW Quote) were also feeling the pinch. "But that's false," said Cramer, given that Home Depot raised its guidance Tuesday and is clearly outperforming Lowe's.

Cramer also called out an article saying that Family Dollar (FDO Quote) was a good stock to own since the company's acceptance of food stamps is helping the bottom line. Cramer, though, put that company in the "Sell Block" last week, saying that Family Dollar is the worst stock to own in a recovery.

Still another article said that TJ Maxx (TJX Quote) profits were up and that it was a good stock to own. Cramer was aghast, noting that company management just lowered guidance.

"Be skeptical," Cramer concluded.