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Cramer's 'Mad Money' Recap: No News Is No News

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NEW YORK (TheStreet) -- News that's expected by everyone isn't really news, Jim Cramer said Monday on "Mad Money" after the markets finished near their lows for the day. He said that while the markets rallied last week in anticipation of good news from Spain, what actually transpired fell far short of expectations.

Cramer said today's market moves should not have been a shock to educated investors, as the markets were demanding a lot of the eurozone this weekend. Spain needed capital, he said, not more loan guarantees, which means the crisis will lumber on.

If the news out of Europe really had fixed the problem, investors would have been reaching for gold, noted Cramer, as any true bailout would be seen as inflationary. He said the CurrencyShares Euro Trust (FXE) would have also risen above $130 and the bond yields for most European countries would have fallen even more. But none of these events happened, which should have been the tip-off the latest news wasn't what the markets were expecting.

Cramer said what the European countries need most is growth; to date, none of the bail out plans offer growth. That's why he continues to recommend stocks that offer domestic security and dividends and are not overly economically sensitive. AT&T (T) and Verizon (VZ) topped Cramer's list, along with cigarette maker Altria (MO).

What Drives Rental Companies

Sometimes great ideas don't make for great companies, Cramer told viewers, as he pitted the upstart Zipcar (ZIP) against the incumbent Hertz Global (HTZ) to see which company rules the rental car market.

Cramer said when Zipcar came public last year it was billed as a revolution in car sharing, one that promised to deliver rapid growth and profits for all. However, since its IPO shares of Zipcar are down 43% and might not yet be done heading lower.

While Zipcar is the leader in the hourly rental car market with some 500,000 members sharing over 9,000 vehicles, Cramer said there are simply no barriers to enter this market and that's precisely what Hertz and other rental car companies have done. He called Zipcar's model a niche market for a small percentage of car renters, one that may have already peaked. Zipcar has been around since 2000, noted Cramer, yet the company is only now turning a profit.

Stock quotes in this article: KO, PEP, HTZ, ZIP, FXE, T, VZ, MO, LGCY, COP, GRA, DOW, ARNA, SKUL, FTR, NOK, IGT, LVS, SWK, FUN, GTLS, WPRT, CAT, RDS.A 

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