Jim Cramer's Stop Trading! Running Deere

The trader loves what's happening in the cyclicals right now.
Publish date:

Two days' worth of muted inflation readings have made cyclical stocks like


(AL) - Get Report



(DE) - Get Report

far more attractive, Jim Cramer said on


"Stop Trading!" segment Wednesday.

After the consumer and producer price indexes came in with moderate readings Tuesday and Wednesday, "people are willing to pay more for earnings, particularly cyclical earnings," Cramer said, referring to companies like big materials and equipment names whose growth is closely linked with economic expansion.

Cramer said strong comments by management on Deere's third-quarter earnings call Tuesday should cause bearish Wall Street analysts to reassess the company's prospects. "I love the fact that they said housing is good," Cramer said of Deere execs. But he added that news reports on the company continue to ignore the good news and focus on the bad. "That's the last homework I'll ever do," Cramer joked.

Cramer said this week's runup in retail shares exposes another case of media handwringing. Newspapers and magazines claim the consumer is being crushed by the decline in housing prices, Cramer said. But strong numbers at

J.C. Penney

(JCP) - Get Report



(TGT) - Get Report

, as well as rallies in


(KSS) - Get Report


Charming Shoppes

(CHRS) - Get Report

, put the lie to that notion, Cramer said.

"These stocks are on fire because the consumer is on fire," Cramer said, adding that retail spending depends less on gas prices and housing trends than on employment, which continues to be strong. The retail sector has the makings of a "bear rout," Cramer said.

Moreover, Cramer said, inventories are low across the board, which means the current quarter isn't likely to be slammed by a wave of markdowns. The really good news, he added, is that "consumers are spending on big-screen TVs again," which is good news for flat-panel-display supplier


(GLW) - Get Report

. "They are spending on


(AAPL) - Get Report


Cramer also noted the action in casino stocks, saying that


(WYNN) - Get Report

has been unfairly hit and could easily double to trade comparably with

Los Vegas Sands

(LVS) - Get Report


At the time of publication, Cramer was long Alcan.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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