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The market's rally began with China, Cramer told viewers, after Baidu.com (BIDU) reported what was arguably the worst quarter of 2015, sending shares plummeting by 15%. That news helped the Chinese markets open lower, allowing them to strengthen throughout the day.
Then there was oil, which also opened lower only to find its footing later in the afternoon. This was coupled with FANG, Cramer's acronym for Facebook (FB), Amazon.com (AMZN), Netflix (NFLX) and Google (GOOGL), the former market leaders that finally took a breather, allowing other earnings to shine through.
Some of those strong earnings included Cummins (CMI), which surprised to the upside, sending shares up 3.3%, while Caterpillar (CAT) announced a stock buyback, news that rallied shares up 3.2%. In the housing sector, shares of D.R. Horton (DHI) rose 3.1%, while Masco (MAS) soared 10.6%.
Was today a one-hit wonder? Perhaps, Cramer admitted, especially with the Federal Reserve chief speaking after the central bank's meeting tomorrow, followed by oil inventories and rig counts later in the week. But at least for today, the setup allowed good news to finally matter again.
Executive Decision: David Demshur
For his "Executive Decision" segment, Cramer spoke with David Demshur, chairman, president and CEO of Core Labs (CLB - Get Report), the company that helps oil drillers squeeze more oil from existing wells. Core Labs recently reported a 4-cents-a-share earnings beat with better-than-expected guidance. Shares of Core Labs were up 7.3% in trading today.
Demshur said his company's strong performance stems from the fact that in areas like the Gulf of Mexico, even a 1% increase in recovery rate from a well translates into $6 billion in revenue for drillers.
When asked about the direction of crude oil prices, Demshur noted that in the U.S., shale oil wells deplete much faster than traditional wells, which is why he predicts production will fall from 9.5 million barrels a day to nine million by the end of the year. Meanwhile, in the Middle East there is little to no excess capacity remaining.
All of that adds up to $70 or $80 a barrel oil, Demshur concluded, and a sharp recovery from current levels.