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NEW YORK (TheStreet) -- There are two sides to every coin, and investors looked at the negative side, drawing conclusions about the U.S. economy based on events happening in commodities and in global markets, Jim Cramer told his Mad Money viewers Monday.
Cramer noted that oil tumbled another 3.5% on the day and is threatening to take out the recent low of $43. The decline feels “pretty darn nasty,” Cramer said. Investors are selling, fearing Iran may add production to an already oversupplied market. That hit shares of Exxon Mobil (XOM), Chevron (CVX) and Royal Dutch Shell (RDS.A).
But while oil prices may be headed lower, is that such a bad thing? Cramer looked at the other side of the coin, arguing that a decline in oil prices is good for airlines, restaurants and, most important, consumers.
Then there's China, which recently issued “horrendous” manufacturing data, Cramer said. China’s stock market gives investors the impression the Chinese consumer is under pressure, even if that’s not really the case. This hurts companies including Action Alerts PLUS holdings Apple (AAPL) and General Motors (GM) as well as Diageo (DEO).
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But on the plus side, the weakness in China could hold the Federal Reserve back from hiking interest rates come September. Make no mistake about it, we don’t want the Chinese economy to “fall off a cliff,” but it’s a big benefit to the market if the Fed postpones the inevitable, Cramer said.
Finally, he looked at Europe after the Greek stock market opened for trading after being closed for more than a month. The major index fell about 20%, but the recent manufacturing data for the eurozone were “surprisingly quite strong,” he said.
It wasn’t just Germany leading the way higher either — Spain, Italy and the Netherlands all contributed to the gains. If the European economy can improve, it will help spur more global economic growth. European growth will also help slow the decline in the euro, which will weaken the U.S. dollar, which has been weighing on U.S. multinational companies.
Executive Decision: Richard GelfondFor his “Executive Decision” segment, Cramer sat down with Richard Gelfond, the CEO of Imax (IMAX - Get Report). The ultra-big movie screen company has over 950 theaters, with a 400-theater backlog. Imax reported in-line earnings and beat sales estimates, but the stock has been tied to the price action in China, Cramer said, with shares down 15% from the highs.
Gelfond explained his company does do business in China, but referred to the country as more of an opportunity than a risk. Because of its business there, the company plans to a do an IPO in China for its China-based locations. Gelfond explained that the company plans to go public on the Hong Kong stock exchange, a far less volatile index than the Shanghai Composite. Less than one-third of the company’s business is done in China.
He said that over the long term China has proved to be very good for both the company's business and shares.
Gelfond added that every year the company aims to open anywhere from 110 to 125 new theaters, driving earnings and revenue gains along with it. Ultimately, Imax shows blockbuster movies in the best out-of-house fashion, he concluded.