NEW YORK (TheStreet) -- Some of the automotive-related stocks are catching a break on Friday. Goldman Sachs upgraded AutoNation (AN) to buy from neutral, while shares of CarMax (KMX) are up 14% on a top and bottom line earnings beat.
CarMax's earnings report was the "best quarter of the week," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Cramer's Mad Dash" segment.
People continue to buy cars, he added, saying that increased car sales is a sign that the economy is indeed improving. Workers needs cars to get to work, and a job to pay for that car, he said.
Turning to Owens Corning (OC), shares are lower by roughly 4%. The company missed on top and bottom line estimates, and says its roofing business could decline by as much as 20% in the first half of 2014.Cramer acknowledged that the harsh winter months hurt a lot of companies, but the poor weather should actually be good for the roofing business. He suggested that consumers are putting more money into cars and less money into housing -- with the exception of the upper class. He also questioned whether Home Depot (HD) would report a weaker-than-expected earnings result. The housing market is a "mixed picture," with some companies doing well, and others poorly. Cramer concluded that he still likes Masco (MAS). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Sneakers at Work Are Running Up Sales for Nike, Foot Locker Home Short-Sellers Could Face a Huge Hidden Tax Oracle Plunges: What Wall Street's Saying Biotech Stock Mailbag: Zafgen, Bluebird, MannKind
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