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Jim Cramer's 'Mad Money' Recap: This Market Is Happy and So Am I

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NEW YORK ( TheStreet) -- The market isn't crazy and it's not irrationally exuberant, it's just happy, Jim Cramer told his Mad Money viewers Monday after another strong day on Wall Street. Cramer said the market likes just about everything it sees, which is great news since there's a lot to like.

The markets are naturally bullish due to an improving economy, Cramer noted, which is why big-name international stocks Walt Disney (DIS), Boeing (BA) and Honeywell (HON) remain strong buys. All of these stocks were higher on the day thanks to pure optimism about the future.

But beyond the macro, Cramer mentioned a number of individual stocks worth noting, including NXP Semiconductor (NXPI) buying Freescale Semiconductor (FSL), a gigantic win for both companies. Then there's Cardinal Health (CAH) buying some of Johnson & Johnson's (JNJ) assets, another win for both stocks. And let's not forget Pharmacyclics (PCYC), up 81% so far this year.

Other notables on the day included Costco (COST) pairing up with Visa (V), news that sent rival MasterCard (MA), a stock Cramer owns for his charitable trust, Action Alerts PLUS, higher, along with Costco's former partner American Express (AXP).

With all of these positives, investors might be thinking that a crash must be imminent, but Cramer said things that should go down, like Lumber Liquidators (LL), are going down. The company's shares slid over 25% on an investigation that its floors might be toxic. Likewise, shares of IBM (IBM) continue to skid, even with Warren Buffett's endorsement, as investors want more than just a stock buyback program.

"So maybe happy isn't a bad thing after all," Cramer concluded.

Retailers to Buy

With cheap gasoline and strong execution, Cramer said it's not surprising that many retailers delivered strong earnings this quarter. But there were four retailers that did exceptionally well and are worth your attention.

Ross Stores (ROST - Get Report) delivered an 8-cents-a-share earnings beat with a 6% rise in same-store sales, its highest since 2012, along with an increased stock buyback program and a dividend boost. The company continues to improve its shopping experience, and with 1,300 locations management says it could still double the footprint. Shares of Ross trade at less than 20 times earnings.

Nordstrom (JWN - Get Report) posted a 3-cents-a-share earnings miss when it reported on Feb. 19, Cramer noted, but shares shot up after its conference call where management indicated that 2015 will be its peak investment year for its omni-channel strategy. With a 4.7% increase in same-store sales and trading at only 19 times earnings, Cramer said Nordstrom remains a steal.

Dillard's (DDS - Get Report) also surprised investors with a 5% increase in revenue, its fastest growth since 2012. The company continues to shut down underperforming locations while selling more higher margin merchandise. Dillard's has also bought back near 40% of its shares in recent years but still trades at just 13.5 times earnings.

Shares of Kohl's (KSS - Get Report) are flirting with eight-year highs. This retailer posted a 3-cents-a-share earnings beat on a 3.7% rise in same-store sales. With a 15% dividend boost, Cramer said Kohl's is another retailer that clearly has its groove back.

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SYM TRADE IT LAST %CHG
DDS $131.57 1.20%
JWN $79.97 -0.88%
KSS $74.50 0.32%
ROST $105.54 -0.42%
AAPL $129.38 0.22%

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.80 -9.59 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

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