Investors can expect more days like today if the trade war rhetoric stays quiet, Jim Cramer told his Mad Money viewers Tuesday. After Monday's market meltdown, trading today seemed to return to normal, as Wall Street realized tariffs may not be as bad as everyone feared.
Most of China's latest tariffs were on agricultural products, Cramer noted, but America has a long history of subsidizing farmers, so this time will likely be no different. Meanwhile, China's borrow-and-spend stimulus program can't go on forever, putting its economy in a precarious position.
That's why we began to see many of the cloud and technology stocks begin to head higher, with only some retailers like Ralph Lauren (RL) - Get Report falling 3.6% on tariff worries. Most companies are actively moving their manufacturing out of China, leaving only a few still vulnerable.
Cramer said as long as the rhetoric stays at a minimum, we should expect continued gains for stocks.
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Executive Decision: Adobe Systems
In his first "Executive Decision" segment, Cramer checked in with Shantanu Narayen, president and CEO at Adobe Systems (ADBE) - Get Report , the digital media and marketing software provider with shares that rallied 1.5% Tuesday.
Narayen said that Adobe's mission is still to help companies to create content, attract customers and transact with them, all things Adobe learned firsthand as it migrated its own business to the cloud. He said their recent partnership with ServiceNOW (NOW) - Get Report was a logical fit, bringing together two great cloud platforms for a better customer experience.
When asked about their exposure to China and tariffs, Narayen noted that Adobe has minimal exposure to both and is benefiting more from the tailwinds of people everywhere creating more content than ever. That's why Adobe is also focused on education, Narayen said.
Consumer products companies can also benefit from Adobe, Narayen added. These companies have millions of customers they know nothing about, but using Adobe's platforms, they can interact directly with these customers to serve their needs.
On Real Money, Cramer says the Chinese have overplayed their hand. Get more of his insights with a free trial subscription to Real Money.
Cramerica Calls In
In a volatile market, Cramer opened the phone lines to hear what was on the mind of Cramerica. The first caller asked what to do with the cash he had raised by taking profits earlier this month. Cramer said he still has some concerns about the market, but would start putting that money to work.
When asked about the effects of tariffs, Cramer noted that everyone wants free trade but also fair trade, so we may have to live with tariffs for a while longer.
Executive Decision: The Trade Desk
In his second "Executive Decision" segment, Cramer also sat down with Jeff Green, president and CEO of The Trade Desk (TTD) - Get Report , the digital advertising platform provider that saw its shares plunge 14% last week after the company gave conservative guidance for the rest of 2019.
Green explained that despite last week's decline, Trade Desk shares are up over 1,000% in less than three years. He said that if you want to buy ads on Google, YouTube or Facebook, you go to Google (GOOGL) - Get Report or Facebook (FB) - Get Report , but if you want to buy advertising on the rest of the Internet, you need The Trade Desk. The company's platform uses data to help advertisers determine which are the best places to spend their marketing dollars.
Green added that there's always a balance between growth and profitability and platforms like The Trade Desk can help companies find the ratio that works best for them.
Turning to the topic of content, Green said that there's more content available today than ever before, but most consumers can't afford another subscription service, which is why 95% of shows remain advertising supported.
What the CEOs say About Tariffs
In his "No Huddle Offense" segment, Cramer said one thing is striking when talking to CEOs about the trade war with China and that's the uniformity of their answers. He said that CEOs all tell him that it's impossible to deal with Chinese companies that steal U.S. intellectual property with impunity. They all agree that something needed to be done and they applaud even a flawed plan over no plan at all.
Cramer noted there's no way to have a coalition of countries go up against China, as other countries stand to gain if China slows trade with the U.S. That means the U.S. has to go it alone, even if it means less commerce and the possibility of a global slowdown.
Even if the trade war fails, President Trump can still declare victory with the extra $100 billion a year flowing into the Treasury. As for the Chinese, Cramer said they may be more vulnerable that many people believe.
In the Lightning Round, Cramer was bullish on Keysight Technologies (KEYS) - Get Report , Brinks (BCO) - Get Report , Carvana (CVNA) - Get Report , CIGNA (CI) - Get Report , Nutanix (NTNX) - Get Report and VMware (VMW) - Get Report .
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, GOOGL, FB.