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: Bull Market, Better Economy

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


NEW YORK ( TheStreet) -- Think the economy isn't getting better? Think again. That was Jim Cramer's lesson to his "Mad Money" TV show viewers Thursday.

Cramer said it's no coincidence that as the markets are hitting new five-year highs, unemployment in our country is hitting five-year lows.

Things are indeed getting better, said Cramer, and when things get better, investors are willing to pay up for corporate earnings. The logic is simple: More demand equals higher prices, which in turn means better gross margins and ultimately more earnings on the bottom line.

That's why investors are willing to pay up for Bristol Myers-Squibb (BMY) and Johnson & Johnson (JNJ), said Cramer, and why they're willing to pay up for oil stocks like Schlumberger (SLB) and pretty much anything and everything that goes into a home, car or plane.

Cramer said the only confusing sector in this multiple expansion period is tech. What are investors willing to pay for Apple's (AAPL) slowing growth? Not as much as before, said Cramer, who owns Apple for his charitable trust, Action Alerts PLUS . Cramer said the markets are now valuing Apple alongside Intel (INTC) and Microsoft (MSFT).

But as Apple declines, investors are taking those profits and rolling into other tech names, stocks like Amazon.com (AMZN), Facebook (FB), Google (GOOG) and Netflix (NFLX). Are these the new "four horsemen" of tech? Cramer said they might be.

When it comes to the market, Cramer said the current prices of stocks are just wrong. As things get better, stocks are worth more, he said, which is why the market continues to rally higher.

Executive Decision

In the "Executive Decision" segment, Cramer checked in with Jim Griffith, president and CEO of Timkin (TKR), the steel maker that delivered an earnings beat of 16 cents a share earnings Thursday. Shares of Timkin are up 34% since Cramer last featured them on location in Ohio on Oct. 18.

Griffith said Timkin is a very different company than it was just a few years ago. He characterized the company not merely as a steel maker but as a technology company bringing knowledge and know-how to its customers.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!
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