A booming economy produces more winners than losers, Jim Cramer reminded his Mad Money viewers Friday, and after today's employment numbers, we again see that things are booming.
Cramer said that unlike fleeting fears over Italy or tariffs, the job growth numbers can set the stage for the next several weeks of investing.
Cramer was cautious on Brown Forman (BF.B - Get Report) , which could be in the crosshairs of a trade war, and Thor Industries (THO - Get Report) , which is battling rising inventories and gas prices.
Finally, Cramer said, he'll be watch for the German industrial production numbers on Friday. Why? He said because if the number is weak, then the Germans may be forced to negotiate with President Trump over trade, a move that the markets would view positively.
Cramer and the AAP are pruning their position in Constellation (STZ - Get Report) . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Over on Real Money, Cramer says only a real sourpuss would pan this Costco (COST - Get Report) quarter but we have hundreds of institutional sourpusses running money these days. Get more of his insights with a free trial subscription to Real Money.
When Good News Is Good News
What does a perfect economy look like? Cramer told viewers that it looks a lot like this one, with fabulous job growth and little to no inflation.
For years now, investors have been told that "good news is bad news," because if the economy heats up too quickly, the Federal Reserve will aggressively raise interest rates and the party will come to an abrupt end. But that's not the case with this economy, Cramer noted, as we're not seeing inflation.
There are a lot of things to like about our current situation, Cramer added, and many sectors are participating, including manufacturing, machinery and transportation. The only weak sector has been healthcare. That's great news on many fronts, as more people can find jobs, there's more consumer spending, college students can crawl out from under their debts and even the Federal deficit can be reduced.
A strong economy is why Cramer said he's not too worried about tariffs or trade wars. Our economy is strong enough to withstand retaliation, he said, and it gives us more leverage over our trading partners.
When times are good, you need to stick with what's working, Cramer told viewers, and that includes cloud computing, where we just saw another round of spectacular earnings. Companies like Adobe Systems (ADBE - Get Report) are up 43% for the year, while ServiceNow (NOW - Get Report) , Splunk (SPLK - Get Report) and Workday (WDAY - Get Report) are up 39%, 37% and 34% respectively.
But there is one smaller cloud play that Cramer said might not be a "cloud king," but is certainly on it's way to becoming a cloud prince, and that's Coupa Software (COUP - Get Report) , up 21% in just the past three months.
Cramer said there's a lot to like about Coupa, as it's a small company with lots of growth and potential, but there's also one big downside, valuation. Coupa doesn't have any earnings, and trades at 13 times this year's sales or 11 times next year's. That's a stretch for even a hot stock like Coupa.
Cramer cautioned that the company reports next week and has run up going into earnings, which makes it worrisome in the short term. It's a lot easier for this stock to go lower, he cautioned, even if he likes the long-term story.
Cramer Does His Homework
In his "Homework" segment, Cramer followed up on a few stocks that had stumped him during earlier shows.
He said that Casa Systems (CASA - Get Report) is an innovative company in the 5G wireless space, but the stock has been on a roller coaster after the company did a secondary offering. Cramer said he likes the story but has no catalyst to buy in the short term.
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
Cramer said this portfolio had five fabulous companies, but no diversification whatsoever. He suggested replacing Facebook and Intel with Honeywell (HON - Get Report) and UnitedHealth Group (UNH - Get Report) .
Cramer said he's not a fan of Abbvie or Annaly, but with minor changes this portfolio is properly diversified.
In the Lightning Round, Cramer was bullish on Copart (CPRT - Get Report) , Mazor Robotics (MZOR , WestRock (WRK - Get Report) , Yext (YEXT - Get Report) , STMicroelectronics (STM - Get Report) , Cognizant Technology (CTSH - Get Report) , Accenture (ACN - Get Report) and General Electric (GE - Get Report) .
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