Skip to main content

The Federal Reserve has plenty of reasons to take preemptive action and cut interest rates, Jim Cramer told his Mad Money viewers, and given the building uncertainty in the global economy, cutting rates is may just be the right thing to do.

While it's true that the consumer is alive a well, Cramer said the bear case for boosting the economy with a rate cut is gaining momentum. The U.S. will need to cope with the effects of increased tariffs, while the economies in China, Europe and across the globe continue to slow.

Even in retail, consumers are flocking to WATCH, Cramer's acronym for Walmart (WMT) - Get Walmart Inc. Report , Amazon (AMZN) - Get Inc. Report , Target (TGT) - Get Target Corporation Report , Costco (COST) - Get Costco Wholesale Corporation Report and Home Depot (HD) - Get Home Depot Inc. (The) Report , but that growth is coming at the cost of smaller, less capitalized retailers. Companies like Macy's (M) - Get Macy's, Inc. Report and L Brands (LB) - Get L Brands, Inc. Report are just two recent examples.

Add to that a weak outlook from the rails, falling commodity prices and the possibility of Boeing (BA) - Get The Boeing Company Report shutting down their production lines for the 737 -- and the Fed has more than enough ammo to justify lower interest rates.

Let's not forget, it was the Fed that put us in this situation with an ill-timed and unnecessary rate hike in December, Cramer said. Getting the economy back to where it was only seems prudent. 

Save 57% With Our Labor Day Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up.

Executive Decision:  

For his "Executive Decision" segment, Cramer spoke with Keith Block, co-CEO of (CRM) - Get Salesforce Inc. Report , the cloud software provider that just posted a 22% rise in revenue growth with strong guidance for the rest of the year.

Block said the wave of digital transformation continues and is becoming an imperative at companies all over the world. Every company wants a 360-degree view of their customers, he said, and only by combining sales, marketing and service data into a seamless experience can that happen.

When asked about their $15.7 billion acquisition of Tableau Software, Block said Salesforce delivers growth in two ways. The first way is organically through innovation, and the second is via acquisition, where the company has a long history of successful mergers.

Finally, Block noted that being a modern corporation means paying attention to a lot more than just shareholders. That's why Salesforce is leading efforts to help companies pay attention to all stakeholders, including employees, partners, suppliers, their communities and the environment. 

Executive Decision: Talend

In his second "Executive Decision" segment, Cramer also sat down with Mike Tuchen, CEO of Talend (TLND) - Get Talend SA Report , the cloud-based data preparation company with share that have fallen since their highs last September.

Tuchen explained that Talend is the first step in the data process, helping companies combine their data from multiple sources, clean it up and get it ready for analysis. For customers like Domino's Pizza (DPZ) - Get Domino's Pizza Inc Report , Talend combines data from thousands of franchisees to provide winning strategies for increasing revenues and maximizing profits.

Talend works with all of the major cloud providers, including Amazon (AMZN) - Get Inc. Report , Google (GOOGL) - Get Alphabet Inc. Report and Microsoft (MSFT) - Get Microsoft Corporation Report , all of which store data, but don't offer companies the ability to analyze in the way Talend can offer. 

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Cloud Computing Stocks

Knowing what you own is imperative for every portfolio, Cramer reminded viewers. That's why he continued his coverage of the cloud computing stocks in the hope that investors can understand a little about this red-hot sector.

Scroll to Continue

TheStreet Recommends, who we just heard from, was a pioneer in cloud computing space and remains a Cramer favorite. VMware (VMW) - Get VMware, Inc. Report is the leader in virtualization software that allows one physical server to host multiple virtual ones.

Read: VMware Acquiring Pivotal Software and Carbon Black

Then there's Workday (WDAY) - Get Workday Inc. Report , the winner in human resource automation, Coupa Software (COUP) - Get Coupa Software Incorporated Report , which helps companies manage spending, and Anaplan (PLAN) - Get Anaplan Inc. Report , which helps them with financial modeling.

When it comes to cybersecurity, investors should be looking at Okta (OKTA) - Get Okta Inc. Report and Zscaler (ZS) - Get Zscaler Inc. Report , Cramer said, and when they need creative software or an advertising platform, Adobe Systems (ADBE) - Get Adobe Inc. Report is the only game in town.

Finally, Cramer pointed out Veeva Systems (VEEV) - Get Veeva Systems Inc. Class A Report , a company providing cloud software to the life sciences industry, and Smartsheet (SMAR) - Get Smartsheet Inc. Class A Report , a collaboration and project planning tool.

Never chase any of these stocks higher, Cramer concluded, but certainly have them on your shopping list for the next market selloff. 

No Appetite for Oil Stocks 

In his "No-Huddle Offense" segment, Cramer opined on what's been happening in the oil patch recently. Despite countless analyst upgrades, the oil stocks still aren't moving, and for good reason.

It should be a fabulous time to buy the oil stocks, Cramer said, expect for the fact that we simply have too much of it. Despite exploration and production falling worldwide, the U.S. continues to grow, picking up the slack. We have too much oil, too much natural gas, and thanks to some overpriced mergers, no appetite on Wall Street to keep the oil stocks rising.

Cramer said he would avoid the entire oil patch right now, even with stocks like ExxonMobil (XOM) - Get Exxon Mobil Corporation Report yielding 5%.

Lightning Round

In the Lightning Round, Cramer was bullish on Enphase Energy (ENPH) - Get Enphase Energy Inc. Report , Proofpoint (PFPT) - Get Proofpoint Inc. Report , CyberArk Software (CYBR) - Get CyberArk Software Ltd. Report , Symantec (SYMC) - Get Symantec Corporation Report , NextEra Energy (NEE) - Get NextEra Energy Inc. Report and General Mills (GIS) - Get General Mills Inc. Report .

Cramer was bearish on Fortinet (FTNT) - Get Fortinet Inc. Report and Equity Commonwealth (EQC) - Get Equity Commonwealth of Beneficial Interest 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 HD, AMZN, CRM, GOOGL, MSFT.