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With Washington about to get a lot more pro-business, Jim Cramer told his Mad Money viewers Wednesday that they should expect a lot more sector rotations like the one we received today, as the stock market adjusts for a Trump presidency.
Trump's nomination of Wilbur Ross for Commerce secretary and Steve Mnuchin as Treasury secretary sent a huge message to the markets, Cramer said, and that message was one of pro-growth and pro-business. These men support cutting corporate and middle-class taxes and spurring growth, he said, and they have the experience to get it done.
Trump sent a message of his own, Cramer continued, as he negotiated a deal with United Technologies (UTX) - Get Report to keep their Carrier air conditioning plant in Indiana open, saving 1,000 jobs. This move is not pro-shareholder however, it's pro-worker -- but coupled with tax cuts and other incentives for Carrier, it should be a win for everyone.
That's why Cramer said he continues to be a fan of the industrials, the transports and the banks, as well as the domestic oil producers on the news that OPEC will be cutting production to buoy oil prices.
Unfortunately, there isn't enough new money coming into the market to send everything higher all at once, Cramer concluded, which will lead to rotations as we saw today. But over time, Trump's pro-growth agenda has the possibility to send much of the market higher.
Coming up on tonight's episode: Cramer interviews Gary Heminger, CEO of Marathon Petroleum Co. (MPC) - Get Report . Plus, don't miss the Lightning Round: Find out which stocks Cramer is bullish about.
Executive Decision: PVH Corp.
For his "Executive Decision" segment, Cramer spoke with Manny Chirico, chairman and CEO of PVH Corp (PVH) - Get Report , the parent company of Calvin Klein and Tommy Hilfiger that just posted a 20-cents-a-share earnings beat. Shares of PVH are up 43% for the year, but the stock fell 1.8% Wednesday.
Chirico said that international sales were particularly strong for the quarter in both Europe and Asia. In the U.K., things "couldn't be better." Meanwhile, here at home, Chirico said things were rough in the first half of November, but after the election there has been a "significant improvement" in sales.
Despite all the good feelings though, Chirico remained cautious, saying there is still a lot of noise and many questions surrounding the election and what Trump's policies will mean for trade and the dollar.
Cramer and Mohr are adding to their holdings of Adobe (ADBE) - Get Report and Arconic (ARNC) - Get Report . Find out why and what they're telling members of their investment club with a free subscription to Action Alerts PLUS.
Even Smart Money Can Be Wrong
Sometimes, the smart money gets it wrong, Cramer told viewers. That was certainly the case this week in the oil market, where the surprise deal from OPEC to cut production created the perfect short squeeze, with crude prices popping 9.4%.
Just earlier this week, it looked like a deal wasn't going to be possible, Cramer explained, resulting in many smart managers to bet on $30 a barrel oil and not $50. But in the end, Saudi Arabia decided that selling 10 million barrels a day at $50 a barrel is pretty much the same as selling 11 million at $45, thus the deal which will total a cut of 1.2 million across OPEC members.
But the real smart money should be on the wildcard, the U.S. producers, which can profit handsomely from $50 oil, which is why the likes of EOG Resources (EOG) - Get Report , Pioneer Natural Resources (PXD) - Get Report and Cimarex Energy (XEC) - Get Report all jumped more than 10% on the news.
Cramer said it's OK to scoop up any of these domestic producers, but he would certainly recommend waiting for some weakness after the huge runs today.
Executive Decision: Marathon Petroleum
Heminger started off by saying that Marathon has done a lot to grow value for shareholders since its spinoff from Marathon Resources (MRO) - Get Report in 2011, and shares are up 140% since their IPO. But even with that growth, he feels that his company's shares are undervalued.
When asked about today's OPEC news, Heminger said that per-barrel oil prices in the $50 range is a good level to put people back to work and the deal to cut production is right where it needs to be -- which is why shares of Marathon Resources were up 20% today.
How will Trump help Marathon? Heminger said the U.S. desperately needs pipelines, and Trump can help in the permitting process for both the Keystone and Dakota Access projects.
Finally, when asked about Marathon's Speedway acquisition, Heminger said the gas station chain is important to Marathon, as they sell six billion gallons a year that flow through their pipes, terminals, barges and other infrastructure.
Cramer reiterated his recommendation of Marathon Petroleum, which he too called undervalued.
In the Lightning Round, Cramer was bullish on Acacia Communications (ACIA) - Get Report , Ulta Beauty (ULTA) - Get Report , Buffalo Wild Wings (BWLD) , Celgene (CELG) - Get Report , Olin (OLN) - Get Report , Walgreens Boots Alliance (WBA) - Get Report , Xylem (XYL) - Get Report , Under Armour (UA) - Get Report and Camping World (CWH) - Get Report .
In his "No Huddle Offense" segment, Cramer told viewers to never try to out think the market -- just go where the action is. That's why Cramer said he's taking his cues from the Dow Jones Industrial Average stocks that rallied the most on the Wilbur Ross and Steven Mnuchin appointments.
Goldman Sachs (GS) - Get Report was the biggest winner today, as the bank was trading at a discount in anticipation of more regulation and scrutiny under Hillary Clinton. Then there's DuPont (DD) - Get Report and its impending deal with Dow Chemical (DOW) - Get Report -- which plays right into the hands of Ross and Mnuchin, both of whom are seen as pro-growth and pro-mergers for American companies.
Chevron (CVX) - Get Report and Exxon-Mobil (XOM) - Get Report also rallied today, as the Trump administration is decidedly pro-oil and pro-natural gas. Meanwhile, Caterpillar (CAT) - Get Report is in the sweet spot, as its machines are needed for both infrastructure and oil and gas.
All of these names were easy to see profiting under Trump, Cramer concluded, and are now even more visible with Ross and Mnuchin joining Trump's team.
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At the time of publication, Cramer's Action Alerts PLUS had positions in ADBE, ARNC, WBA and DOW.