Headlines don't determine stock prices, earnings do, Jim Cramer reminded his Mad Money viewers Tuesday. So while the North Korean summit may have been getting all of the news coverage, there's a lot more to like in the stock market that's not getting the attention it deserves.
Cramer said the markets have already moved on from North Korea because, well, there aren't any implications, or at least not yet. North Korea is a county of only 25 million people, which makes the biggest implication of these negotiations only how they will factor into trade talks with China. The defense stocks, which fell on today's news, are all buys, Cramer added.
As for what's really moving the market, Cramer said today's Time Warner (TWX) decision will pave the way for more mega-mergers, while our continued strong economy is great news for consumer packages goods. Cramer said PepsiCo (PEP) - Get Report is his favorite in that group. Tech continues to rally as well, with Twitter (TWTR) - Get Report up 5%, and Paypal (PYPL) - Get Report rising 1.5% on the promise of online gambling boosting that company's bottom line.
Cramer and the AAP team are trimming a few shares of Constellation Brands (STZ) - Get Report into strength Tuesday at their highest sale price to date. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Cramer Explains the RH Pop
Following in the footsteps of Tiffany (TIF) - Get Report and Ralph Lauren (RL) - Get Report , RH also surprised Wall Street this quarter with monster results. Analysts were expecting $1.02 per share in earnings. RH delivered $1.33, with increased estimate to boot. The results were, in Cramer's words, "stunning."
So why then were so many short sellers caught off guard? The company explained their prior weakness stemmed from last year's hurricanes in Texas and Florida. Those events have now past. The company also told investors its new membership model would be a big hit, and it is. The company's CEO, Gary Friedman even purchased 32,900 shares in the open market as a sign of confidence.
So while no one knows why the shorts held onto their positions, it's clear they're now exiting no matter what the price. But just like Tiffany and Ralph Lauren, Cramer said, this move likely won't be over in a single day and he thinks RH has more room to run.
Over on Real Money, Cramer says RH (RH) - Get Report is still poised for a bigger move. Get more of his insights with a free trial subscription to Real Money.
Executive Decision: Cisco Systems
For his "Executive Decision" segment, Cramer spoke with Chuck Robbins, chairman and CEO of Cisco Systems (CSCO) - Get Report , a stock that's up 40% over the past 12 months but has been stalled after reporting an in-line quarter last month.
Robbins said that Cisco continues to help companies work in what they call a multi-cloud environment which includes both public and private cloud infrastructures. They are providing new services, like analytics and automation, to help companies move faster while removing costs and complexities.
Robbins added that Cisco's subscription services continue to grow and deferred revenues have been substantially growing for the past 10 consecutive quarters.
Turning to the topic of cybersecurity, Robbins said that companies today need to be able to ingest threats from multiple endpoints, correlate those threats and mount a unified defense to them, something that only Cisco's platform can provide.
Cramer said investors looking for a cheap stock should look no further than Cisco Systems.
Off the Charts: Stocks Poised to Jump
In the "Off The Charts" segment, Cramer checked in with colleague Rob Moreno over the charts of some stocks that have been left behind in recent months.
Moreno first looked at United States Steel (X) - Get Report , noting the stock's triple top in March, followed by a plunge to its 200-day moving average. He felt this stock had room to run once it breached its ceiling of resistance.
Next was Edwards Lifesciences (EW) - Get Report , which just completed an inverse head-and-shoulders pattern with a positive MACD and Chaikin Money Flow indicator. Moreno felt $166 a share was possible.
Moreno also examined Tapestry (TPR) - Get Report , formerly Coach, which gapped lower after earnings in May. Here Moreno noted a positive accumulation distribution line that showed improving momentum.
Finally, Moreno looked at FedEx (FDX) - Get Report , noting this stock has held above its 200-day moving average. Cramer added that the company's 30% dividend boost is also a great sign of ongoing strength.
For more in-depth analysis, and to see the charts, read Four Stocks Poised for Big Gains: Cramer's 'Off the Charts'.
Cramer says when you spend a whole day interviewing and listening to more than a dozen people, as he did last week at TheDeal's Corporate Governance conference, you can come back with a gazillion takeaways. Check out his Top Takeaways over on Real Money.
Executive Decision: Teledoc
In his second "Executive Decision" segment, Cramer also sat down with Jason Gorevic, CEO of Teladoc (TDOC) - Get Report , the 2015 IPO that fell into the single digits before turning around and rallying hard ever since. Shares of Teladoc are up 60% so far in 2018.
Gorevic explained that Teladoc delivers on the promise of great healthcare where and when you need it, on your terms. Using technology, the company matches patients with providers in their area with the specialty they need. After a slow start, Gorevic added that consumers and providers are beginning to understand the concept and even the government is beginning to take notice.
Teladoc is also now the leader in its category, after acquiring Best Doctors in 2017 and more recently Advance Medical, for $352 million. Given the company's scale, Gorevic said it would be tough to replicate their offerings.
In the Lightning Round, Cramer was bullish on Applied Materials (AMAT) - Get Report , Endo Pharmaceuticals (ENDP) - Get Report , Mylan Laboratories (MYL) - Get Report and Alibaba (BABA) - Get Report .
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At the time of publication, Cramer's Action Alerts PLUS had a position in STZ, PEP, PYPL, GOOGL, UNH.