This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Cramer's 'Mad Money' Recap: The Power of Positive Thinking

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- The bears may control the game but they don't control the market, Jim Cramer told "Mad Money" viewers Tuesday.

Cramer said the stocks that are getting hit the hardest, Caterpillar (CAT), FedEx (FDX) and Norfolk Southern (NSC), are already behind the market since they are among the companies that blame a slowing global economy for lower earnings and expectations.

Cramer said the power of positive thinking and the belief these companies will do better next year are behind the cushion keeping them from falling further. Money managers and hedge fund managers who are 90% behind the averages now need to make up that difference.

Lately, the reaction to bad news has been benign, Cramer said. The markets should have fallen a lot further than they did -- but the end-of-quarter phenomenon and managers trying not to lose their shirts helped keep stocks from dropping as far as expected.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Martin Mucci, chief executive of Paychex (PAYX - Get Report) about analysts' concerns.

The company's first quarter was down from a year earlier, and Mucci said that was due to timing of payroll volume and frequency. Checks per payroll were up 2%, Mucci said, his clients are hiring and he sees positive signs in the "macro environment."

Cramer said the bears are concerned the payroll market is mature and saturated and that's why Paychex is expanding to insurance, investments and other areas.

Mucci said that once his company has a client they can be sold other products. He said that half of the company's sales come from new businesses. Even in a bad year, 750,000 new businesses are started.

Client retention is getting better, Mucci said. Fewer clients are going out of business and fewer are jumping ship. The client base is also improving. "We're also seeing clients picking up 401(k) and health insurance," he said.

Cramer said the analysts who downgraded the company "keep moving the goal posts" and raising the stakes.

Off the Charts

In his "Off the Charts" segment, Cramer spoke with colleague Scott Redler, the chief strategic officer of T3 Live, about Apple (AAPL - Get Report), a stock that's part of Cramer's charitable trust, Action Alerts PLUS .

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
AAPL $123.22 -0.82%
GOOG $548.13 -1.30%
PAYX $49.55 1.10%
RHT $76.55 1.60%
FB $83.30 0.35%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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