This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: The Bears Retreat and the Market Celebrates


TheStreet is providing FREE access to Jim Cramer’s charitable trust (Action Alerts PLUS) and his premium articles on Real Money this weekend. Please register here.

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- The uncertainty in the market is breeding a cloud of fear and worry, Jim Cramer said on  Mad Money Thursday. But occasionally the sun pokes through and the markets are able to rally, as they did today.

Cramer called today a terrific snap-back rally, a day when the bears retreated and calmer heads could take advantage of all the positives that go unappreciated on most days.

Must Read: Warren Buffetts’ Top 10 Dividend Stocks in 2015

So just what are the bears so worried about? Cramer said they're largely scared about the velocity of the market's moves and all of the uncertainty that goes along with it. They remain spooked that lower oil prices are foreshadowing doom and gloom despite retailers starting to prove that lower gas prices are a good thing.

Cramer said it will take some time for low energy prices to reach the industrial sector, but it's already helping aerospace, where Boeing (BA) continues to sell a lot of planes to airlines that are flush with cash.

The bears also fear slowing growth overseas, ignoring the fact that Europe's new stimulus might actually work. They worry about ultra-low interest rates derailing the economy, oblivious to great results from home builders like Pulte Homes (PHM) .

Cramer said none of these issues are worth fearing over the long term, which is why when the bears take a rest, investors can profit in the short term.

Changes at McDonald's

Can one man really make a difference at a multi-billion company? Cramer said he can, which is why the resignation of Don Thompson, CEO of McDonald's (MCD - Get Report) , is so significant.

Cramer explained that McDonald's has been part of his charitable trust, Action Alerts PLUS, on the hopes that a turnaround would soon be at hand -- and now it appears it is.

But while shares of McDonald's spiked 5% on Thompson's resignation, Cramer said investors shouldn't expect a quick fix. He liked the job facing McDonald's to be similar to that of Starbucks (SBUX) , another AAP holding, when CEO Howard Schultz returned to take the helm. It took Schultz a full 18 months to see sizable change, and McDonald's should be no different.

The CEO sets the agenda at a company and creates the atmosphere that allows a team to flourish. McDonald's has a new coach, he concluded. We just need to wait until next season to see what happens next. In the meantime, Cramer said he's enjoying the 3.8% dividend yield.

Must Read: Bill Gross: Fed Rate Hike Later This Year Won't Hurt Stocks

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs