Skip to main content

It may seem like the market has lost its mind, Jim Cramer admitted his Mad Money viewers Wednesday. But in the heart of earnings season, some stocks move in ways you wouldn't expect.

Shares of Caterpillar (CAT) - Get Caterpillar Inc. Report plunged 6% in early market trading after the equipment maker reported a huge shortfall in earnings. But by the end of the day, Caterpillar closed up 1%. Cramer said that's because in the company's conference call, Caterpillar showed investors it's no longer beholden to the global economy and can make money even in a downturn.

Then there's Boeing (BA) - Get Boeing Company Report , which admitted that its 737Max may not be in the air as soon as it expected, but assured investors that the plane will be ready when the regulators are satisfied. Cramer said perhaps the press has become too negative on Boeing.

Next was Apple (AAPL) - Get Apple Inc. Report , the Action Alerts PLUS holding that received an important upgrade today as the company's service revenue stream continues to be strong.

Still other surprise moves were Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill, Inc. Report , which plunged 5.1% today. Cramer said he's still a fan given that shares are still up over 82% for the year. Finally, there's Tesla (TSLA) - Get Tesla Inc Report , where a surprise profit sent shares soaring 17.7%.

While all of these moves may seem surprising, Cramer said once you digest the details, they all make perfect sense.

You know Cramer's a passionate Eagles fan, right? Don't miss his amazing Bull Market Fantasy, with live shows Tuesday and Thursday a 10:45 a.m. E. It's free and it's fun.

Executive Decision: CSX

For his "Executive Decision" segment, Cramer sat down with Jim Foote, president and CEO of CSX (CSX) - Get CSX Corporation Report , the railroad that serves the regions where two-thirds of all Americans live.

Foote said that CSX has been working on its transformation for the past two years, focusing on making its operations as efficient and reliable as possible. He said the railroad industry had built in a lot of inefficiencies over the years, but now the company is focused on removing unnecessary work and transfers and simply moving the cargo as quickly as possible. This has not only allowed for higher volumes, it's also allowed CSX to pivot with the economy.

Foote added that in years past, coal was a large part of their operations, but now they've diversified into a many categories of merchandise including chemicals, plastics, metal, lumber and yes, even e-commerce. He added that as railroads become more precise, more companies are willing to use them, which means volumes are on the rise. 

Save 57% during our Halloween Sale. Don't let this market haunt you. Join Jim Cramer's Investment Club, Action Alerts PLUS. Click here to sign up!

Medical Device Makers 

Are the medical device makers coming back into style? Cramer said after after a long hiatus, he thinks investors are eager for the kinds of growth the medical device makers can deliver.

Shares of Intuitive Surgical (ISRG) - Get Intuitive Surgical, Inc. Report are up 138% over the past three years for good reason, Cramer told viewers. This company not only makes money selling its surgical robots, but also from all of the supplies each machine consumes with every procedure. The company last posted a 44-cents-a-share earnings beat and Cramer said he's still a fan at 38 times earnings given Intuitive Surgical's accelerating growth rate.

Scroll to Continue

TheStreet Recommends

Cramer was also a fan of Medtronic (MDT) - Get Medtronic Plc Report , which has recently pulled back to just 18 times earnings. He said the recent weakness is a buying opportunity, especially after Medtronic's acquisition of Mazor Robotics.

Other device makers on Cramer's shopping list included Abbott Labs (ABT) - Get Abbott Laboratories Report , another Action Alerts PLUS name, which posted solid earnings last week and announced a partnership with Tandem Diabetes (TNDM) - Get Tandem Diabetes Care, Inc. Report . Abbott shares currently trade for 22 times earnings. Finally, Cramer gave the nod to long-time favorite, Edwards Lifesciences (EW) - Get Edwards Lifesciences Corporation Report .

Executive Decision: ServiceNow 

In his second "Executive Decision" segment, Cramer sat down with John Donahoe and Bill McDermott, the outgoing and incoming CEOs of ServiceNow (NOW) - Get ServiceNow, Inc. Report , the cloud automation company with shares that popped 5.9% Wednesday on a strong quarter.

Donahoe said digital transformation remains a priority at companies around the globe and ServiceNow is one of the core partners to help accomplish those goals. He said after returning from a trip to Europe, he thinks CEOs are not focused on trade wars or Brexit, they're focused on increasing productivity and providing better experiences for their customers and employees.

When asked about his departure to become the CEO of Nike (NKE) - Get NIKE, Inc. Class B Report , Donahoe explained that he has a long history serving on the Nike board and he loves athletics. Nike is also embracing digital transformation, he said, and he will certainly be helping them with those initiatives.

McDermott, formerly of SAP (SAP) - Get SAP SE Report , said that investors need to look at companies like SAP as partners with ServiceNow, as they work together to help customers drive productivity and a better user experience. He called the chance to run ServiceNow the opportunity of a lifetime and he's excited to get started.  

Not Your Typical Semiconductor Company 

In his "No-Huddle Offense" segment, Cramer said all semiconductor companies are not created equal, which is why investors shouldn't take their cues from the huge shortfall from Texas Instruments (TXN) - Get Texas Instruments Incorporated Report , which slid 7.5% Wednesday.

Texas Instruments told a compelling story, telling investors that their customers have become cautious given the trade war and tariffs. But Texas Instruments isn't the typical semiconductor company, Cramer noted, as the company has been diversifying away from consumer electronics, like cell phones, and into autos and industrial applications. These are exactly the industries that are being hurt by the trade war and aren't working. Other semiconductor makers, like Micron Technologies (MU) - Get Micron Technology, Inc. Report and Nvidia (NVDA) - Get NVIDIA Corporation Report have told us business is strong, and those are much better indicators for the industry as a whole.

Lightning Round

In the Lightning Round, Cramer was bullish on Exact Sciences (EXAS) - Get Exact Sciences Corporation Report , United Technologies (UTX) - Get United Technologies Corporation Report , Wisconsin Energy (WEC) - Get WEC Energy Group Inc Report , Snap (SNAP) - Get Snap, Inc. Class A Report and Amarin (AMRN) - Get Amarin Corp. Plc Report .

Cramer was bearish on Lockheed Martin (LMT) - Get Lockheed Martin Corporation Report .

Introducing TheStreet Courses: Financial titans Jim Cramer and Robert Powell are bringing their market savvy and investing strategies to you. Learn how to create tax-efficient income, avoid top mistakes, reduce risk and more. With our courses, you will have the tools and knowledge needed to achieve your financial goals. Learn more about TheStreet Courses on investing and personal finance here.

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

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had a position in CAT, AAPL, ABT, NVDA.