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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Jim Cramer: Europe Is Just Starting to Turn

Stocks in this article: DDFIPPPGAVTHONGOOGAAPL

NEW YORK ( Real Money) -- We're discovering something in these quarterly reports that are coming out now for the big industrials. We are discovering the importance of Europe coming back on line because Europe has, to a large degree, been a total black hole for pretty much every major company.

Europe has, in fact, been a savior this quarter for many companies, a talking point that allows the focus to be lifted from the stalling in the United States because of the paralysis stemming from Washington. So many companies made big initiatives in Europe going into the downturn in 2011 and they have then spent the last two years frantically right-sizing the operations or attempting to staunch the bleeding. That's contributing to what can only be described as a dramatic return to profitability for a continent of 730 million people and it's very much in its infancy.

When I listen to the big industrial companies such as DuPont ( DD), International Paper ( IP) and PPG ( PPG), I am hearing that the turn, or at least the end of the degradation, occurred literally intra-quarter. It's so early on in the turn that many international companies are JUST BEGINNING to revise up their expectations for less of a degradation -- NOT AN ACCELERATION. The verbiage was best caught by Ford ( F), which focused on the notion that the losses simply weren't going to be as big as they thought when they laid out the year.

Even as the European PMIs have been better and we have the beginning of an actual return to growth in countries like Ireland and Spain, the turn seems to have caught many analysts by surprise. The number revisions still haven't really occurred. Plus, the run-up in the euro to $1.36 can only help the numbers. Euro strength, again, was not in the numbers. That makes sense when you consider that a year ago the euro was still in question and two years ago this November we were expecting Spain and Italy to blow up, with peak rates in Italy occurring almost exactly two years ago next month.

I think that this turn is blotting out the short-term stalling that we are getting in the United States and, just to be sure, there is no doubt that there isn't a short-term stalling. The combination of the fiasco that is the Affordable Care Act -- and that's truly the fiasco in business that you see in the headlines -- and the shutdown of the government here has shaken the CEOs in this country. Most who I talk to have very little expectations that things will get better. It's a pox on both houses for certain.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs