RealMoney Radio: Don't Fear the Fed

Cramer says to focus on sectors that are outside of the central bank's rate-hike effects, like oil.
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Even in this back-and-forth market, listeners called in to hear what Jim Cramer had to say about stocks Friday on his

"RealMoney" radio show.

He told a caller that the

Federal Reserve

is targeting commodities prices, and using its rate hikes to try and quell speculation in the sector.

But, he said, the central bank can't really control ramping oil prices because it's not merely speculation that is pushing crude costs higher.

Cramer told the caller to find groups like oil that rise and fall regardless of Fed rate hikes, and suggested looking at

Schlumberger

(SLB) - Get Report

, which he called the finest oil driller.

The drillers have been fractured, Cramer warned, with some up and some in freefall. Since it's difficult to pick one, he said to go for a best-of-breed company like Schlumberger.

A caller said that he was pleased with the latest earnings report from

Ciena

(CIEN) - Get Report

, and Cramer agreed that he is interested in a company with strong growth potential.

The company's revenue is growing, Cramer said, and he believes that it is one of the single best plays on the battle between cable and phone companies.

When

Comcast

(CMCSA) - Get Report

showed that it was taking a share of the phone business,

Verizon

(VZ) - Get Report

and

AT&T

(T) - Get Report

were shaken, he said. He believes these big phone companies will spend heavily to roll out a new, more competitive fiber optic system, and that Ciena will be the beneficiary.

Even though he has been "loathe to recommend drug stocks," Cramer told a caller that he is interested in

GlaxoSmithKline

(GSK) - Get Report

, since it is buying

Pfizer's

(PFE) - Get Report

big consumer products division.

Glaxo will be able to do more with that division than Pfizer was able to because it's a better product marketer, he said. He also said that he has been recommending

Schering-Plough

(SGP)

, which he owns for his charitable trust

Action Alerts PLUS, saying that the company is in turnaround mode.

He told a caller that

Bank of New York

(BK) - Get Report

is too focused on payment services and securities servicing and not focused enough on banking.

While the stock's yield is good at more than 2%,

Citigroup

(C) - Get Report

and

Bank of America

(BAC) - Get Report

have 4% yields. Cramer said he would swap out of Bank of New York and into Citi or Bank of America.

He said that

Allegheny Technologies

(ATI) - Get Report

is played out. When it was trading at $30, he nominated it as his stock of the year because titanium is integral to the current aerospace cycle.

But the price has pretty much doubled, and he said that investors who buy at these levels are being hogs.

Cramer said that investors have been fleeing natural gas, but that they shouldn't. While he has been pushing

Chesapeake Energy

(CHK) - Get Report

, Cramer said the he also needed to give

Western Gas Resources

(WGR)

its due.

Finally, he told a caller that

Saks

(SKS)

is played out and that he would swap into

Nordstrom

(JWN) - Get Report

.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

At the time of publication, Cramer was long Schering-Plough.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

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clicking here.

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