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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 - Get Report) slowing growth? Not as much as before, said Cramer, who owns Apple for his charitable trust,
Executive DecisionIn 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.
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