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Cramer's 'Mad Money' Recap: Don't Panic!

On its conference call, Nordstrom said it sees no slowing in the spending of its customers, which is why it was able to deliver a six-cent-a-share earnings beat on strong same-store sales, with positive guidance to boot. Cramer said Nordstrom is expanding into Canada as well as beefing up its Web and mobile businesses to help further bolster sales.

Ralph Lauren is another terrific high-end brand, Cramer said, a company that delivered a 22-cent-a-share earnings beat. Coach (COH) may have fallen behind with its fashions, but not so with Ralph Lauren.

When it comes to growth, Lululemon is one company that tops the list, said Cramer. This company also delivered strong earnings and, with only 130 stores, has plenty of room to expand.

Finally there's high-end accessory retailer Michael Kors. Kors delivered a 23-cent-a-share earnings beat on better-than-expected revenue. Is Kors the new face of luxury? Cramer said he thinks so because Kors continues to surprise to the upside quarter after quarter.

More Riches

Continuing with his "Great Gatsby" index of luxury stocks, Cramer added a grocer, a restaurant and coffee chain with Whole Foods (WFM), Panera Bread (PNRA) and Starbucks (SBUX), which he owns for his charitable trust, Action Alerts PLUS .

Cramer said that with 1,652 cafes, Panera is the high-end sandwich, soup and salad chain to beat. The company's restaurants enjoy tremendous customer loyalty, which means Panera can pass on rising food costs easily. Panera is growing earnings per share at 27% and the company plans on open 8% more stores this year.

Then there's Starbucks, a company that's expanding all over the world, especially in China, where it plans to become the preeminent aspirational coffee house. Growth trends remain strong as Starbucks, said Cramer, which is why his trust continues to own it.

Finally, Cramer said he remains a fan of Whole Foods, even though the stock has been crushed of late amid fears of slowing growth. Not so, said Cramer -- don't write off this healthy-eating giant. He said Whole Foods didn't cut guidance and growth should be returning to full steam soon.

Lightning Round

In the Lightning Round, Cramer was bullish on Travelers Companies (TRV), American International Group (AIG), Alcan (AL), Southwest Airlines (LUV), Principal Financial Group (PFG), MetLife (MET), H&E Equip Services (HEES) and Manitowoc (MTW).

Cramer was bearish on Corrections Corp of America (CXW), EMC (EMC) and Aflac (AFL).

What's Up With Gas Prices?

With U.S. oil and natural gas production increasing by the day, why are gas prices at the pump still so high? Cramer said it has nothing to do with price gouging or speculating but a whole lot to do with a totally mismanaged energy policy.

Cramer explained that the U.S. actually has plenty of domestic oil and gas, but those resources are simply in all the wrong places and our refiners aren't matched up to handle it. There's a ton of oil stuck in our oil shale regions, he said, but there aren't any pipelines to get that oil to the refiners.

Then there are issue with the refiners themselves. Many converted their facilities to process heavier crude from the Canadian oil sands. Unfortunately, the Keystone XL pipeline has been held up in Washington, leaving these refineries with little oil to refine.

East Coast refineries that are able to process the lighter crude being produced by our oil shales can't do so because, again, there are no pipelines to move the crude east. Shipping might be a possibility, but an arcane law known as the Jones law prohibits crude from being transported on non-U.S. ships by non-U.S. crews. That's a big problem, said Cramer, as just about all tankers are made outside the U.S.

Just seven years ago the U.S. imported three million barrels a day of crude oil, noted Cramer, but today it exports one million barrels of refined petroleum a day. Why? Because prices are set on a global stage and it's more profitable to take U.S. gas and ship it elsewhere, especially given that -- you guessed it -- there are no pipelines to move refined gas to where it needs to be.

Cramer said all of these problems could be fixed with help from Washington, but without it things will continue to move at a snail's pace. Rail lines are being built to take the place of stalled pipelines, for example, but now additional tanker cars are needed. Using natural gas as a surface fuel would also help, said Cramer, but President Obama is unlikely to endorse natural gas anytime soon.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the looming government sequestration -- the massive budget cuts -- that now is only days away. He said he's going with what the defense stocks are telling him, and that's that sequestration isn't all that bad.

Cramer said the real impact of sequestration is likely to be only $44 billion, not the $80 billion plus the scaremongers are pitching. With so many government programs in need of being shut down, wouldn't $44 billion be a good thing, he asked?

Cramer once again pitched the idea of requiring hedge funds to pay ordinary income taxes as one quick way to increase revenue at the U.S. Treasury. But, alas, the hedge fund lobby, like that of the defense industry, is too strong to allow cuts to be made.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
At the time of publication, Cramer's Action Alerts PLUS had a position in SBUX.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.
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