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Has the stock market fallen in love with Hillary Clinton? No, they just love certainty, Jim Cramer told his Mad Money viewers Monday, Now that the FBI has confirmed the results of its previous email investigation of Democrat presidential candidate, it's time to focus on the stocks of companies that have been working.
Of all of the sectors that have reported earnings so far this quarter, Cramer said the banks have posted the biggest upside surprises. Among the group, Cramer recommended Citigroup(C) - Get Report , an Action Alerts PLUS holding, along with Goldman Sachs(GS) - Get Report and Morgan Stanly(MS) - Get Report . He also called out KeyCorp(KEY) - Get Report as best of breed among the regional banks, with BB&T(BBT) - Get Report running close behind.
Other sectors on the move this quarter included cloud stocks Adobe Systems(ADBE) - Get Report and Workday(WDAY) - Get Report and transports United Continental(UAL) - Get Report and railroad Norfolk Southern(NSC) - Get Report .
Cramer made mention of Boeing(BA) - Get Report and United Technologies(UTX) - Get Report among the aerospace stocks, and Pepsico(PEP) - Get Report and Procter & Gamble(PG) - Get Report in the consumer space.
Finally, Cramer said only a few of the drug and biotech stocks impressed him this quarter, but Merck(MRK) - Get Report , Celgene(CELG) - Get Report and Johnson & Johnson(JNJ) - Get Report still make his buy list for once this election is finally behind us.
Will Cemex Sink?
Elections have consequences for not just U.S. companies but for foreign ones, Cramer told viewers, as he highlighted what might happen to Mexican cement maker Cemex(CX) - Get Report if Donald Trump were able to pull out a victory in Tuesday's election.
If there's one area where Trump is consistent it's been his hatred for Nafta, the free trade agreement that has allowed Cemex to flourish, selling a full 28% of its sales into the U.S.
Cemex has struggled since the Great Recession, Cramer noted, but shares are up 68% this year as the company is seeing improving fundamentals that have allowed it to pay down $1.4 billion in debt. Part of those improving fundamentals has been the strength of the U.S. dollar, which has risen from 11:1 to 18:1 against the Mexican peso. That means Cemex' products are only getting cheaper in the U.S. and for every dollar Cemex sells, it gets more pesos in return.
But Cemex is the perfect example of what company gets hurt if Trump is successful a re-negotiating Nafta. That's why Cramer said he'd wait for the election results before pulling the trigger on this one, and even then he'd wait for a pullback.
If Hillary Loses
Cramer offered a few more stocks that would be hurt if Hillary Clinton loses the election. He said perhaps the biggest loser of all would be Kansas City Southern(KSU) - Get Report , the leading railroad between the U.S. and Mexico.
There will be nearly four million cars produced in Mexico this year, Cramer said, and Kansas City will transport a full 40% of them into the U.S. That's why any policy that gets tough on trade could crush the sales and earnings of this great railroad, which derives 50% of its revenue from trade between our two countries.
Then there is the iShares MSCI Mexico Capped ETF(EWW) - Get Report , an index that has become a proxy for a Trump victory. Cramer noted this ETF spans the Mexican economy, from banks and telecom to media and retail, and all of it would be hurt from trade restrictions with the U.S.
Executive Decision: Bradley Jacobs
Jacobs said that XPO continues with its plans to stake out the fastest-growing areas of transportation, then become the number one or number two player in those areas. XPO is now the leader in last-mile deliveries for ecommerce shipments that cannot be moved by traditional carriers -- things like appliances, furniture and exercise equipment. Jacobs said XPO makes more than one million such deliveries every month.
When asked about the election, Jacobs said XPO does $1 billion a year with Mexico, but would "find a way" to continue under Donald Trump. XPO also has a large presence in the UK, France and Spain. Thus far, Brexit has not been an issue in Europe, Jacobs continued.
Cramer reiterated that XPO is in the "sweet spot" of transportation.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said the market's favorite growth stocks usually stay the favorites, at least until they stop growing. That was certainly the case with FANG, Cramer's acronym for Facebook(FB) - Get Report , Amazon.com(AMZN) - Get Report , Netflix(NFLX) - Get Report and Alphabet(GOOGL) - Get Report , all of which plunged when they reported earnings but rallied hard with the market's today.
Cramer said that Facebook, an Action Alerts PLUS name, delivered stunning earnings, as did Amazon, but investors opted to fret over spending at both companies. Meanwhile, Netflix and Alphabet, another Action Alerts holding, fell on market-induced weakness.
Just a few weeks later, however, and investors seem to have forgotten why they sold these stocks. Today they came roaring back, as they always seem to do.
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At the time of publication, Cramer's Action Alerts PLUS had a position in C, FB, GOOGL and PEP.