Cramer's 'Mad Money' Recap: The Clear Value of Mixed Data
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (TheStreet) -- When it comes to the stock market, the best thing you can get is mixed data, Jim Cramer told his "Mad Money" TV show viewers Thursday. Cramer said that's what is propelling the market higher.
What exactly is "mixed data?" Cramer said it's a weak leading economic indicator number with a stronger jobs number. It's higher consumer sentiment from one firm while another predicts a five-month low. It's good manufacturing numbers over here, with weak numbers over there.
Why should investors like mixed economic data? Cramer said mixed data mean the Federal Reserve doesn't have to worry about inflation and can remain in pro-growth mode. That notion alone accounts for much of the 2,440-point gain in the Dow Jones Industrial Average so far in 2013.Among the biggest contributors to that gain are Boeing (BA), which is selling fuel-efficient Dreamliners to combat rising fuels costs. 3M (MMM) also makes the list, as that company is seen as a big beneficiary as the economy improves. On the flip side, investors have also been clamoring for Johnson & Johnson (JNJ) as a hedge in case the mixed data turn bad. There will certainly be some disappointments in the "mixed bag" market, said Cramer, as seen today with Google (GOOG), Microsoft (MSFT), eBay (EBAY) and Intel (INTC), but those are all par for the course. While some stocks may stumble, the vast majority are on the move higher.
Executive Decision: Mike SutherlinIn the "Executive Decision" segment, Cramer sat down with Mike Sutherlin, president and CEO of Joy Global (JOY), a stock Cramer owns for his charitable trust, Action Alerts PLUS, and one that's down 20% for the year on fears of a slowing Chinese economy. Sutherlin said much of the weakness in Joy Global's stock stems from a general lack of understanding about his company's business model. He said while many investors view the company as a capital equipment supplier, in fact nearly 60% of Joy's business comes from service and support services in the after-market. While capital equipment is a volatile business, in the after-market things are much more stable, Sutherlin noted.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV