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NEW YORK (TheStreet) -- It's time to accept the fact the futures are often wrong, Jim Cramer told his Mad Money viewers Monday. Case in point: Friday's weak employment data, which got a negative reaction from futures traders but which ultimately led to today's market rally.
The fact is that weaker employment is actually good news for stocks for a variety of reasons. First, it proves the Federal Reservehas been prudent to wait on interest rate hikes. Next, it helps break the velocity of the rise in the U.S. dollar. The weak number is also good for oil because oil is traded in U.S. dollars.
Additionally, the market rally was able to buoy stocks like Emerson Electric (EMR) - Get Emerson Electric Co. Report, Microsoft (MSFT) - Get Microsoft Corporation Report and even Sandisk (SNDK) on the hopes that these names have fallen enough.
In the end, Cramer said a slower U.S. economy will continue to benefit stocks including the pharmaceuticals, biotechs, restaurants and retailers.
Cramer's 5 Dividend Picks
With interest rates likely to stay low for a little while longer, it's time to once again consider adding some dividend stocks to your portfolio. Cramer ticked off his top five dividend-paying stocks, ones that also have the added benefit of being favorites of Warren Buffett as well.
Cramer's fifth and fourth dividend picks are Coca-Cola (KO) - Get Coca-Cola Company Report and Procter & Gamble (PG) - Get Procter & Gamble Company Report, two companies he called "challenged" but not without potential. Coke's 3.2% divided is appealing while its investments in both Keurig Green Mountain (GMCR) and Monster Beverage (MNST) - Get Monster Beverage Corporation Report are interesting. As for Procter, Cramer said the stock is a bargain and he likes the 3.1% yield.
General Motors (GM) - Get General Motors Company Report, a stock Cramer owns for his charitable trust, Action Alerts PLUS, made the number three spot because this stock yields nearly 4% and will most certainly prosper as the global economy gets back on its feet.
Coming in at number two is Verizon (VZ) - Get Verizon Communications Inc. Report, with its hefty 4.4% yield. While Verizon's growth is being capped by growing competition in the wireless space, Cramer thinks the stock won't likely fall much with that monster yield.
Finally, Cramer's favorite Buffett-approved dividend stock is Wells Fargo (WFC) - Get Wells Fargo & Company Report, another Action Alerts PLUS holding that Cramer called it an honest, well-run company with a 2.6% yield and almost one-third of the U.S. mortgage market as its customers.
Cramer Loves Carmax
On Thursday, Carmax delivered a 7-cents-a-share earnings beat on a hefty 7% rise in same-store sales. The company already boasts 145 locations. But with many areas of the country still under-served, there are many years of growth ahead. Carmax added 13 locations last year and plans for 14 locations this year. Additionally, Carmax is renovating 15 existing locations.
Shares of Carmax currently trade at 22 times earnings, but Cramer said that's a steal given the company's 15% growth rate and its all-domestic business.
Executive Decision: Anders Gustafsson
For his "Executive Decision" segment, Cramer sat down with Anders Gustafsson, CEO of Zebra Technologies (ZBRA) - Get Zebra Technologies Corporation Class A Report, one of the company behind the scenes in the Internet of Things.
Gustafsson said Zebra operates in what he called "edge analytics," analyzing the data from goods and services moving throughout an organization and helping them make sense of the information. Thanks to Zebra's acquisition of enterprise services from Motorola Solutions (MSI) - Get Motorola Solutions, Inc. Report, the company now has exposure to not only the Internet of things but also cloud computing and mobile applications.
Gustafsson explained Zebra has an ecosystem-driven strategy that uses multi partners to help deliver customized solutions for everything from the postal service to health care and even the National Football League, where football players are monitored in real time using sensors under their shoulder pads to determine things like distance run and acceleration.
In the health care sector, Gustafsson said Zebra's bar codes on patients, medication and ID badges help endure the right medication goes to the right patients in the right doses and are administered by the right caregivers.
Cramer was bearish on Juno Therapeutics (JUNO) , World Wrestling Entertainment (WWE) - Get World Wrestling Entertainment, Inc. Class A Report and Foundation Medicine (FMI) - Get Foundation Medicine, Inc. Report.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer told viewers if they want to make money in the markets, they need to forget about the Federal Reserve.
There are only about 2,500 people in the entire country that make a living trying to predict what the Fed may or may not do, but you shouldn't be one of them. The markets are about a lot more than just the Fed, it's about individual stocks, Cramer reminded viewers, even if no one seems to want to talk about individual stocks.
Instead of pondering whether the Fed will raise rates in June or September, why not ponder which stocks will do well in a slowdown, stocks like Rite-Aid (RAD) - Get Rite Aid Corporation Report or Urban Outfitters (URBN) - Get Urban Outfitters, Inc. Report?
If Friday's employment data had come in strong, the pundits would still find things to worry and complain about, Cramer concluded. That's why you need to focus on what really matters.
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At the time of publication, Cramer's Action Alerts PLUS had a position in GM and WFC.