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NEW YORK (
) -- Separate the U.S. from the rest of the world and you'll see a rational and coherent market that takes stocks higher, Jim Cramer said on
Tuesday. That's why today, with no news out of Europe, China and Russia, our stock market was able to rally on a slew of terrific news.
Cramer said Coca-Cola (KO) - Get Coca-Cola Company Report tops his list of positives on the day. All the company had to do is say things weren't as bad as they were before and that was enough to take shares up 2.8%.
Then there's General Motors (GM) - Get General Motors Company (GM) Report , a stock Cramer owns for his charitable trust, Action Alerts PLUS. GM was also able to stage a rally on news an activist investor is looking to return more cash to shareholders.
In the retail space, Cramer called out Urban Outfitters (URBN) - Get Urban Outfitters, Inc. Report and Aeropostale (ARO) as big wins, with those shares up 2% and 16% respectively on the day. Yelp (YELP) - Get Yelp Inc Report was able to surprise on earnings and that sent its shares higher by 5.9%, while Starbucks (SBUX) - Get Starbucks Corporation Report , another Action Alerts PLUS holding, was up 2.6% on a positive analyst report.
The positives continue with Masco (MAS) - Get Masco Corporation (MAS) Report , Starwood Hotels (HOT) and Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill, Inc. Report , all of which rallied on the day.
Cramer said all of this data put together proves the U.S. economy is very strong, but we just can't see it until the noise from overseas dies down.
Cramer's Birthday Memories
In celebration of his 60th birthday, Cramer took a trip down memory lane, remembering all that his father taught him about the importance of the retail sector to the U.S. economy.
Cramer's dad was in the business of selling gift wrap, boxes and ribbons to retailers, back in a time when retailers actually took the time to wrap your gifts before you left the store.
It was then, Cramer recalled, he realized that when retail does well, we all do well. More retail sales mean more hiring, more merchandise will be needed along with more boxes, more ribbons and more bags. But it doesn't just stop there -- more stores mean more construction, more roads and more malls.
That's why investors need to take notice of the earnings surprises from Urban Outfitters and Aeropostale. When retail is doing well, everyone else tends to follow suit.
Hooray for Hasbro
Content isn't just king in the entertainment business, Cramer told viewers, it turns out it's also king in the toy business. That's how toymaker Hasbro (HAS) - Get Hasbro, Inc. (HAS) Report is just off its 52-week highs, while rival Mattel (MAT) - Get Mattel, Inc. Report is flirting with its lows.
Cramer said Hasbro and Mattel reported radically different results, with Hasbro, makers of Nerf, Transformers and Monopoly, shooting the lights out, while Mattel, purveyors of Barbie, Hot Wheels and Fisher Price, missed the mark.
The reason for this discrepancy is simple, Cramer continued. Hasbro has found the magic formula, making toys with tie-ins to blockbuster movies. Kids love to play with the characters from their favorite movies.
This wasn't always the case. In years past, making toys with movie tie-ins was hit or miss. But now with Walt Disney (DIS) - Get Walt Disney Company Report producing hit after hit, it's easy to see why 30% of Hasbro's sales stem from Disney alone.
Cramer said even with its 5.5% dividend, he's not a fan of Mattel. The stock trades at 16.5 times earnings, which is even higher than Hasbro, which is far superior in every metric yet only trades at 15 times earnings.
Executive Decision: Ben Baldanza
For his "Executive Decision" segment, Cramer spoke with Ben Baldanza, president and CEO of Spirit Airlines (SAVE) - Get Spirit Airlines, Inc. Report , which today delivered a 2-cents-a-share earnings beat on a 13% rise in revenue. Shares of Spirit are up a quick 13% since Cramer last checked in back in October, but still trade at just 15 times earnings.
Baldanza said that even with all of Spirit's recent growth, there are still more opportunities for his company. While the lower cost of oil, an airline's biggest expense, is indeed helping the bottom line, Baldanza noted that Spirit always manages for profitability and makes sure it can make money no matter the price of fuel.
When asked about buying more planes, Baldanza said Spirit takes a long-term view when buying new assets, as planes can last for up to 20 years. That's part of the reason why Spirit enjoys some of the highest gross margins in the industry.
Finally, when asked if a burgeoning economy may allow travellers to trade up to higher-cost airlines, Baldanza said there will always be a segment of the traveling public looking for the best fares, and Spirit will be there to provide them.
Cramer said Spirit remains his favorite in the airline group.
In the Lightning Round, Cramer was bullish on Achillion Pharmaceuticals (ACHN) - Get Achillion Pharmaceuticals, Inc. Report , Celgene (CELG) - Get Celgene Corporation Report , Regeneron Pharmaceuticals (REGN) - Get Regeneron Pharmaceuticals, Inc. Report , Sysco (SYY) - Get Sysco Corporation Report , Sirius XM Radio (SIRI) - Get Sirius XM Holdings, Inc. Report , Taser International (TASR) , UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report and Humana (HUM) - Get Humana Inc. (HUM) Report .
Executive Decision: Richard Pops
In his second "Executive Decision" segment, Cramer sat down with Richard Pops, chairman and CEO of Alkermes (ALKS) - Get Alkermes Plc Report , a stock which Cramer proclaimed is not done going higher.
Pops first commented on Alkermes' progress on a new treatment for multiple sclerosis. He said while Biogen Idec (BIIB) - Get Biogen Inc. Report currently has a terrific drug on the market that is helping patients, it also has side effects. Alkermes' drug, still in Phase I testing, is proving to be better tolerated by patients.
Pops continued by discussing the progress in treating schizophrenia and depression without noticeable weigh gain, one of the main reasons patients don't take their medication today. He said the market could be up $5 billion a year, and early signs are looking very promising.
When asked why the markets don't value Alkermes' stock higher, Pops said he just makes the medicines and the markets will decide what the company is worth.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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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 GM and SBUX.