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NEW YORK (
) -- Earnings season is back next week, Jim Cramer told his
viewers Friday. That means another opportunity to pay attention and learn from some spectacular companies and their CEOs.
Cramer said he'll be watching, as always, Alcoa (AA) - Get Alcoa Corp. Report Monday as earnings seasons begins. Cramer is still bullish on the long-term outlook for Alcoa, even if the quarter disappoints. More importantly, Alcoa will offer up a read on the world economy that no investor should miss.
Next, on Tuesday, is railroad CSX (CSX) - Get CSX Corporation Report reporting on earnings and the state of coal and oil shipments in the U.S., and Monster Beverage (MNST) - Get Monster Beverage Corporation (MNST) Report with an analyst meeting that's sure to create some buzz around the stock.
Cramer said he's dreading Wednesday, which sees reports from JPMorgan and Wells Fargo (WFC) - Get Wells Fargo & Company Report . He said no matter how many loans these banks make or how much they have in earnings, the markets only look at one metric, net interest margin. Cramer said he'd be a buyer of Wells Fargo on any weakness that results.
For Thursday, it's Schlumberger (SLB) - Get Schlumberger NV Report reporting, and Cramer said this conference call is not likely to be positive. Countering the negatives, however, will be earnings from Intel (INTC) - Get Intel Corporation (INTC) Report , homebuilder Lennar (LEN) - Get Lennar Corporation Class A Report and PPG (PPG) - Get PPG Industries, Inc. Report . Cramer expects positive news from all three and is a buyer of PPG on weakness.
Finally, on Friday, it's more banking goodness with Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report . Cramer said our roller-coaster market should be good news for Goldman, but Morgan Stanley (MS) - Get Morgan Stanley (MS) Report remains his favorite.
Cramer's Economics 101
It's time to rewrite the Economics 101 textbooks, Cramer told viewers. In today's economy we're seeing job growth, but not wage growth, which the textbooks will tell you should never happen.
Make no mistake, Cramer said today's robust non-farm payroll number was terrific news for our economy. But even the Federal Reserve is looking to see wages rise before starting to tighten interest rates. What's going on?
There may be increased competition for jobs or companies may just be dealing with post-recession cash flow fears, but Cramer said he thinks the answer to America's wage problem rests with technology.
In short, many retailers are replacing stores with Web sites and omni-channel strategies, and that means replacing high-wage professional positions with lower-wage fulfillment ones. In today's jobs report, the areas seeing the most growth were sectors like health care, where technology is also quickly replacing high-paying jobs.
So while today's jobs number may be great for stocks, it may be not so great for our wallets.
Watch Nelson Peltz
With activist investor Nelson Peltz initiating a proxy fight with DuPont (DD) - Get DuPont de Nemours, Inc. Report , Cramer said investors need to stand up and take notice because Peltz is the only activist with a proven track record of making shareholders a ton of money.
Cramer said while DuPont is already in the process of spinning off its commodity chemical businesses to focus on the more lucrative specialty chemical market, Peltz argues the company should split itself into two.
Peltz proposes a secular growth company focused on agriculture, nutrition and biosciences with another cyclical company comprised of DuPont's safety, communications and other businesses. According to Peltz, making the split could double the company's value in just three years.
Cramer said that's a bold claim, and while he likes both management and Peltz, the argument of who's right and who's wrong doesn't really matter. What's most important is that anytime Peltz gets involved, shareholders win.
Cramer explained that Peltz has a long list of companies that have flourished under his discerning eye, including Ingersoll-Rand (IR) - Get Ingersoll-Rand Plc (IR) Report , Wendy's (WEN) - Get Wendy's Company Report , Legg Mason (LM) - Get Legg Mason, Inc. Report and Heinz, which was sold to Warren Buffett.
Management has no choice but to deliver more value and stronger results, Cramer concluded. Either way investors win.
Buy Morgan Stanley
With shares of Morgan Stanley (MS) - Get Morgan Stanley (MS) Report , a stock Cramer owns for his charitable trust, Action Alerts PLUS, making headlines with a high-profile data breach, is this a stock work owning? Absolutely.
If history is any guide, then the 5% dip in Morgan Stanley's share price is the perfect time to buy, Cramer explained. The company has handled the breach well, he said, and if Home Depot (HD) - Get Home Depot, Inc. (HD) Report and Target (TGT) - Get Target Corporation Report , both of which had far larger data breaches, are any guide, it won't be long before shares rebound.
More importantly, Cramer said Morgan Stanley is a restructuring story as the company becomes more focused on retail, which means more fees, higher recurring revenue and, most important, being less susceptible to regulation.
Shares of Morgan Stanley currently trade at 12.5 times earnings, or 1.2 times its book value. Cramer said he sees the company trading up to 14 or 15 times earnings, giving him a price target of $45 share.
Cramer had no love for any of the stocks mentioned in tonight's Lightning Round. He was bearish on Cliffs Natural Resources (CLF) - Get Cleveland-Cliffs Inc Report , EV Energy Partners (EVEP) , Google (GOOGL) - Get Alphabet Inc. Class A Report , AU Optronics (AUO) , Royal Dutch Shell (RDS.A) and Halozyme Therapeutics (HALO) - Get Halozyme Therapeutics, Inc. Report .
Executive Decision: Garo Armen
For his "Executive Decision" segment, Cramer sat down with Garo Armen, chairman and CEO of Agenus (AGEN) - Get Agenus Inc. Report , a speculative biotech company that saw a huge 28.7% jump in its stock on the news of a new partnership.
Armen explained that today's partnership with Incyte (INCY) - Get Incyte Corporation (INCY) Report allows his company to get its drugs to the finish line even quicker than it could alone, which is great news for patients and for Agenus.
Armen also talked about his company's new malaria vaccine, which is being developed in conjunction with GlaxoSmithKline (GSK) - Get GlaxoSmithKline plc Sponsored ADR Report . He said while Glaxo will likely offer the vaccine at little to no cost, Agenus will likely see at least some revenue from their efforts.
More exciting, however, is Agenus' upcoming vaccine for shingles. Amen explained that nearly one in three people will contract shingles in their lifetime, but current vaccines only offer between 50% to 70% protection against the disease. Agenus' vaccine is delivering 97% protection in their current studies, he said.
Cramer said Agenus may be small and speculative but it's just one example of the returns only biotech can deliver.
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-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had a position in GOOGL, MS and RDS.A.