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NEW YORK (TheStreet) -- This market is all about China and Federal Reserve worries, not earnings, Jim Cramer warned his Mad Money viewers Friday, as he laid out his game plan for next week's trading. Cramer said investors need to keep their powder dry and pounce when the markets put high-quality domestic stocks on sale.
On Monday, Cramer said, he'll be listening to Norfolk Southern (NSC) - Get Report to see if coal shipments are continuing to decline. He'll also have an ear out for Baidu.com (BIDU) - Get Report for any news on just how bad things really are in China.
Next on Tuesday, homebuilder D.R. Horton (DHI) - Get Report will be reporting, along with Gilead Sciences (GILD) - Get Report, DuPont (DD) - Get Report and Twitter (TWTR) - Get Report, a stock which Cramer owns for his charitable trust, Action Alerts PLUS. Cramer said housing should still be in good shape, as should Gilead, but Twitter will likely disappoint, again, while the chemical business also remains tough.
Wednesday's lead is the Federal Reserve, which may start talking about a rate hike in September. That should give investors the weakness they need to buy, Cramer said. Also on Wednesday, Facebook (FB) - Get Report, another Action Alerts PLUS name that Cramer still recommended on any weakness.
Thursday brings earnings from Procter & Gamble (PG) - Get Report and Mondelez (MDLZ) - Get Report, two defensive stocks that investors turn to in down markets. Cramer said both are attractive on any pullback.
Finally, on Friday, it's Exxon-Mobil (XOM) - Get Report and Chevron (CVX) - Get Report reporting in what has become one of the worst oil markets ever. Cramer said listen and learn, but don't be a buyer.
Buy These Winning Stocks
On down days like today, it’s good to take a step back and appreciate good management and all it can accomplish, Cramer told viewers. Sure, China is bad and it's taking the rest of the world with it. Commodities are falling. But what happens on the other side of the malaise?
That's where great CEOs at companies like Starbucks (SBUX) - Get Report, Amazon.com (AMZN) - Get Report, Under Armour (UA) - Get Report, Netflix (NFLX) - Get Report and Google (GOOGL) - Get Report, another Action alerts PLUS name, come into play.
Starbucks delivered a perfect quarter, ramping up its technology to meet ever-growing demand. As for Amazon, Netflix and Google, they don't even operate in China, and are growing like weeds. Then there's Under Armour, which is just starting its Chinese domination with superior products and a CEO who knows how to win.
These are the winning stocks investors should be buying, Cramer concluded, as the market continues to weaken over fears of China.
Look for the Good Things
There's no leadership in this market to stage a comeback, Cramer admitted to viewers, but that doesn't mean we should get too negative.
Yes, biotech has been a strong leader, until today when Biogen Idec (BIIB) - Get Report lowered its estimates, sending its shares down a whopping 22%, taking the rest of its ETF-linked sector with it.
These are just three examples of our former market leaders that are no longer leading, Cramer said, but there is hope. Oil is on the decline, he noted, and the last time that happened, the restaurants and retail stocks soared, as did housing, autos and eventually, even the oil stocks themselves. That's why it’s not time to panic, Cramer concluded, as there are still good things out there. You just need to look for them.
Executive Decision: Robert Sanchez, CEO Ryder System
For his "Executive Decision" segment, Cramer spoke with Robert Sanchez, chairman and CEO of Ryder System (R) - Get Report, the transportation and logistics company which reported a three-cent-a-share earnings beat yesterday, only to be met with a 4% decline in its shares.
Sanchez explained that investors are often confused by his company's revenue number, which came in lighter than expected this quarter. Part of Ryder's business, he said, is reselling fuel, and as the price of diesel declines, so does revenue, but the profit margin stays steady.
When asked about what's driving his company's growth, Sanchez replied that Ryder's rental business is strong, its leasing business is very strong and its logistics arm is also seeing volume increasing. He noted that Ryder works with a lot of retailers and ecommerce companies that need help growing their business.
In the Lightning Round, Cramer was bullish on
Executive Decision: T.J. Rodgers, CEO Cypress Semiconductor
Rodgers said that Cypress' acquisition with Spansion continues to go well, with the combined company taking advantage of many synergies.
Rodgers also touted automotive chips, known as advanced driver systems, as one area of strength that's growing at 15% annually. He said Cypress makes both micro controllers and memory chips for these systems.
When asked about China, Rodgers said he doesn't expect a major collapse, but merely a much needed correction in that overheated economy.
Finally, Rodgers commented on the much talked about Internet-of-things, saying that Cypress is working on power chips for remote sensors that use light, heat and even vibrations to generate the micro-watts of power that these sensors need to operate.
Cramer said the semiconductor industry is about a lot more than just cell phones, as Cypress proves.
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At the time of publication, Cramer's Action Alerts PLUS held positions in TWTR, FB, GOOGL.