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Cramer's Mad Money Recap 5/17: Apple, Tesla, Disney

Jim Cramer says if the good news keeps coming in, investors can look for this rally to run.
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There were a lot of new narratives on Wall Street today, Jim Cramer told his Mad Money viewers, and that's great news for the bulls. If the good news continues overnight, look for the rally to continue tomorrow.

The first bit of good news came from China, where Covid cases are beginning to decline. This is welcomed news for the likes of Apple  (AAPL) - Get Apple Inc. Report and Tesla  (TSLA) - Get Tesla Inc. Report that need to keep factories running. Next, we got better-than-expected earnings from United Airline  (UAL) - Get United Airlines Holdings Inc. Report, a reassuring signal that the consumer is still in great shape. 

We also learned that consumers at Home Depot  (HD) - Get Home Depot Inc. (The) Report aren't cutting back, they're trading up to more expensive items. This is in sharp contrast to Walmart  (WMT) - Get Walmart Inc. Report, which reported abysmal earnings that sent shares down 11%.

Speaking of upgrades, Advanced Micro Devices  (AMD) - Get Advanced Micro Devices Inc. Report received one Tuesday that sent the entire semiconductor cohort higher. The banks were lifted by news that Warren Buffett is investing in Citigroup  (C) - Get Citigroup Inc. Report, making it the "must-have" stock.

Finally, Cramer said it looks like the selling may be subsiding in shares of Walt Disney Co.  (DIS) - Get The Walt Disney Company Report.

All eyes are back on China for Wednesday's session, however. If we receive more good news, and more good earnings, then look for the rally to continue. But if there's no good news, then all bets are off and look out below.

Executive Decision: Take-Two Interactive

In his first "Executive Decision" segment, Cramer spoke with Strauss Zelnick, chairman and CEO of Take-Two Interactive Software  (TTWO) - Get Take-Two Interactive Software Inc. Report, the game maker that saw its shares soar 11.7% after reporting better-than-expected earnings, but with weaker forward-looking guidance.

Zelnick said Take-Two is growing on the strength of its great titles, like the new NBA 2K22, which is exceeding expectations. They're also excited for many of its newer franchises, like Tiny Tina's Wonderlands, which has also outperformed.

When asked about the acquisition of mobile gaming company Zynga  (ZNGA) - Get Zynga Inc. Report, Zelnick explained that Zynga has a ton of great mobile titles that are the perfect compliment to their existing games. Take-Two will operate Zynga as they do their other acquisitions, as an independent division that is free to follow their passions.

Walmart's Inflation and Supply Chain Woes

When you make $25 million a year, you better get it right, Cramer told viewers. Not only did Walmart's CEO, Doug McMillan, not get it right this quarter, he failed in spectacular fashion.

It was just a few short months ago that Walmart forecast mid-single digit growth at its stores. Just a few short weeks later, sales were down by 1%, sending shares sharply lower as a result, off 11.3%.

What went wrong? In a word, everything. Walmart, the one company that should've had a handle on inflation, supply chains and Covid, lost control of all there.

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Cramer said it's hard to overstate how much went wrong for Walmart this quarter. This kind of humiliation would have never happened at Costco  (COST) - Get Costco Wholesale Corporation Report or Target  (TGT) - Get Target Corporation Report, he said.

"When the going got tough, Walmart's management was nowhere to be found," Cramer concluded.

Off the Charts

In the "Off The Charts" segment, Cramer checked in with colleague Carley Garner over what's next for energy prices with oil topping $112 a barrel.

Looking at a weekly chart of WTI crude futures, Garner noted that oil has already seen a year's worth of price volatility in just the first five months of the year. What began as an expanding wedge pattern before the war in Ukraine quickly topped the trend line at the start of the war and hasn't looked back.

On the positive side, crude's relative strength indicator, or RSI, is in overbought territory, signaling that a decline in oil prices could be imminent. Cramer noted that if the war in Ukraine ends, that will definitely send oil sharply lower.

The monthly chart of WTI futures confirmed Garner's findings. The RSI on this chart was also overextended and the ceiling for crude sits at the current $120 a barrel, with downside protection down all the way at just $70 a barrel.

Lightning Round

In the Lightning Round, Cramer was bullish on DraftKings  (DKNG) - Get DraftKings Inc. Report.

Cramer was bearish on Fisker  (FSR) - Get Fisker Inc. Class A Report, Penn National Gaming  (PENN) - Get Penn National Gaming Inc. Report and GrowGeneration  (GRWG) - Get GrowGeneration Corp. Report.

Executive Decision: Caterpillar

For his final "Executive Decision" segment, Cramer checked in Jim Umpleby, CEO of Caterpillar  (CAT) - Get Caterpillar Inc. Report, the machinery maker that just completed its first in-person investor day in two years. Shares of Caterpillar were up 2.8% after the company announced a $15 billion share buyback program.

Umpleby said Caterpillar is powering the green energy revolution, helping companies around the globe mine for the minerals needed to make the batteries we all need. Caterpillar has also committed to the electrification of its fleet, and is investing heavily in the technology to make it happen.

Umpleby was also upbeat about Caterpillar's service revenue stream, once again committing to doubling service revenues by 2026. At the end of the day, it's all about making customers successful, Umpleby said, and since some Cat equipment can last for up to 60 years or more, keeping everything running smoothly is a top priority for customers.

When asked about supply chain issues, Umpleby said that Caterpillar has a great team and has been able to work through many of their issues. 

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