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NEW YORK (
) -- Today there was profit-taking because things are going too well, Jim Cramer said on
Wednesday. That logic may seem counter-intuitive but with so many parts of the economy heating up, it's almost time for interest rates to start heading higher.
Cramer told investors not to take their cues from
(CAT), a company whose management has been doing all of the wrong things. Instead, look at all the sectors that are doing well -- such as housing, which is seeing new home sales at five-year highs. Or autos, where
(F) is leading the charge.
Travel is also on fire, as
(TRIP) showed us today, said Cramer. Aerospace continues to roar, with
(BA) saying that it needs more workers.
And the good news keeps coming, noted Cramer -- from more telecom spending to defense contractors hitting all-time highs. With Europe bottoming, these moves could become even more powerful. There may be some pockets of weakness as we've seen with some, but not all, restaurants as well as some, but not all, railroads. However, he said, overall it's clear the U.S. economy is hot enough that the
can't be far from needing to raise interest rates.
Executive Decision: Mike Thaman
In his "Executive Decision" segment, Cramer spoke with Mike Thaman, chairman and CEO of
(OC - Get Report)
, which delivered Wednesday a 12-cents-a-share earnings miss on lighter-than-expected revenue. Shares of Owens Corning stood their ground in today's trading, however, and are still up 60% for the year.
Thaman attributed the shortfall to the company's roofing products, which were in high demand this time last year but are now following a more normal seasonal pattern. He said the volume is building towards the second half of the year, however, and he expects strong momentum to continue into 2014 and beyond.
When asked about the red-hot housing market, Thaman said what's most important for Owens Corning is that demand is growing in a predictable pattern that allows customers to build their inventories and Owens Corning to raise its prices. He said disruptions in growth cause the building products market to take pause, but things have been growing steady over the past 12 to 18 months.