Don't be alarmed by today's lackluster market, Jim Cramer told his Mad Money viewers Tuesday. The day's sogginess is exactly the kind of decline you want, Cramer said. Stocks can't go up forever without more news to propel them higher.
What caused Tuesday's weakness? Cramer said the cloud kings were dethroned as investors realized not every service was going to get a lucrative bid like Tableau Software (DATA - Get Report) . That's why ServiceNow (NOW - Get Report) , Workday (WDAY - Get Report) and many other cloud stocks fell.
Beyond Meat (BYND) also continues to be a sore spot for investors, Cramer noted. He said while this company has a virtual monopoly at the moment, competitors are coming.
Additionally, Cramer pointed a finger at the fintech sector, primarily Paypal (PYPL - Get Report) for causing some market weakness, along with merger fatigue as investors question the United Technologies (UTX - Get Report) deal and the Sprint (S - Get Report) and T-Mobile (TMUS - Get Report) deal.
In the end, Cramer said today was a typical bull market decline. The economy continues to be good, albeit not great, while inflation and unemployment remains low.
Cramer and the AAP team have updates on two portfolio names: CVS Health (CVS - Get Report) and Facebook (FB - Get Report) . 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.
Off the Charts: VIX
In the "Off The Charts" segment, Cramer checked in with colleague Mark Sebastian for the latest read on the direction of the CBOE Volatility Index, known as the VIX.
Sebastian correctly predicted the market selloff in May, as both the S&P 500 and the VIX were moving higher in tandem in late April. As May progressed, Sebastian also noted the change in direction of the VIX late in the month, singling the market was due to come roaring back, which it did.
Now Sebastian says he believes investors should proceed with caution. While he felt last week's rally was for real, he also felt a pullback is likely next for stocks.
Executive Decision: Tableau Software
For his "Executive Decision" segment, Cramer spoke with Adam Selipsky, president and CEO of Tableau Software, the data analytics company which yesterday announced it is being acquired by Salesforce (CRM - Get Report) for $15.6 billion in an all-stock deal.
Selipsky said Tableau has a great product, a great team and a great community and all of his management and executive teams are excited about the news and are staying on with the company.
Selipsky said the combined company delivers the best of both worlds and their engineers cannot wait to share their analytics expertise with Salesforce's AI and data capabilities. Both companies will also benefit from combined marketing and sales efforts as well as a host of joint customers.
Cramer called the deal transformational and offered Selipsky a "job well done."
On Real Money, Jim Cramer takes a closer look at Salesforce's deal for Tableau. Get more of his insights with a free trial subscription to Real Money.
Executive Decision: EQT
In his second "Executive Decision" segment, Cramer sat down with Rob McNally, president and CEO of EQT (EQT - Get Report) , the natural gas producer embroiled in a bitter proxy fight with Rice Energy, a company it acquired in 2017.
McNally said since his management team was put in place in November 2018, EQT has split its upstream and midstream businesses and has outperformed their peers. He admitted that in absolutely numbers, this has been disappointing for shareholders, as natural gas prices have fallen.
When asked about the proposals made by those backing Rice Energy, McNally said simply that those claims are not based in reality. He said while EQT is drilling fewer wells than before, they still expect 5% production growth this year.
Tariffs, Trade and G20
How should investors prepare for the G20 summit scheduled for later this month in Japan? Cramer told investors that President Trump is signaling he's ready to slap new tariffs against China and even Germany, so they need to be ready. Cramer said Trump's misunderstanding of the reality of tariffs means it,s very likely we'll see additional tariffs coming soon.
Cramer said investors should be ready for an explosive outcome from the G20 meeting. Trump seems more than willing to erect barriers to trade wherever he wants, as he feels that other countries pay for tariffs, not the U.S. In reality, tariffs are a sales tax on the U.S. consumer, Cramer said, but the White House refuses to acknowledge that.
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