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Pepsi ( PEP) and Genentech ( DNA) are two defensive stocks that can make you money come Monday, Jim Cramer told viewers of his "Mad Money" TV show Friday.

In addition, two aggressive plays that he believes could also make people money are AAR ( AIR) and Alcan ( AL), which he owns for his charitable trust, Action Alerts PLUS .

Stocks have been getting killed left and right, but not defensive stocks -- they have hung in there, Cramer said.

Not only were Friday's employment numbers bad, but companies like 3M ( MMM) and Advanced Micro Devices ( AMD) announced that their earnings were expected to fall short this quarter. Cramer said this tells him one thing: "We need more defense."

"I have the defensive plays when the market starts to stink and sink," he said. "These can make you money even in a hard-landing scenario."

While going defensive, Cramer reminded his viewers that they still need to remain diversified. Food and drugs are defensive stocks.

Pepsi, which is coming out with earnings before the bell on Monday, just did a great buyback, which acts as a cushion during a decline, he said. The company also cut down on its share count, which increases earnings per share, he added.

Gatorade and Frito Lay, two of Pepsi's divisions, are also expected to report better-than-expected results.

Genentech, another defensive play Cramer likes, is leading the biotech rally, Cramer said, adding that the Food and Drug Administration recently approved Genentech's Lucentis drug.

For an aggressive play, Cramer said he likes Alcan. Although Cramer earlier in the week had blessed a buy on Alcoa ( AA), he now believes it can wait, and prefers Alcan right now, since he believes it's more of a legitimate takeover target than Alcoa.

Another aggressive stock he favors is AAR, which reports its number on Wednesday.

"The strength we've seen in the airlines should translate directly into an upside surprise for AAR," Cramer said.

King of Hogs

People in the market like companies that can feast on other companies as they go out of business, Cramer told his viewers. One such company is Smithfield Foods ( SFD).

The company, which has a lock on the other white meat market, is the king of hogs, killing 27 million of them a year.

This company "tries to make money, not friends," Cramer said. "They kick competitors when they're down. When they see weakness in a company, they go for blood."

Recently, Smithfield bought Sara Lee's ( SLE) European meat business.

Since Sara Lee didn't have a lot of options, Smithfield was able to take advantage of its situation and take Sara Lee to the cleaners, Cramer said. While Smithfield was to originally pay $900 million, it ended up paying $575 million, practically stealing Sara Lee's European business, he said.

Before Sara Lee, Smithfield went after ConAgra Foods ( CAG) and bought its Cook's Ham division for $260 million.

However, just last year Cook's reported $330 million in sales, Cramer said, adding that when a company buys assets for less than they're worth, it creates a lot of value.

In addition, ConAgra is still weak and might need to sell two more of its brands. If Smithfield keeps feeding on ConAgra's remains, it could buy them both for less than their annual revenues, Cramer said.

Great Expectations

"Sometimes the stock market will do things that don't seem to make sense at all," he said.

Recently, J.C. Penney ( JCP) reported great numbers and raised its earnings forecast.

On the other hand, Abercrombie & Fitch ( ANF) came out with 4% decrease in same-store sales.

However, while J.C. Penney's stock went down, Abercrombie & Fitch's went up. This is because a lot of people know J.C. Penney is a well-run place and Abercrombie & Fitch is a disappointment, Cramer said. It's all about expectations, he said. And the expectations got out of control for the upside of J.C. Penney and for the downside of Abercrombie & Fitch.

Although Cramer believes J.C. Penney is a great stock, he said people knew they were going to beat numbers, and their upside had already been priced into the stock. This is why the company's good news had no positive effect on the stock.

Abercrombie & Fitch has been the worst performer in its group. Thus, there have been a lot of people shorting it, and it has had a lot of put option activity, Cramer said.

While the company did a lot worse than expected, no one sold it, and the shorts panicked, he said. Now, only value investors own Abercrombie at this point, and value investors stay put as long-term buyers.

Cramer said his viewers need to think about buying Abercrombie & Fitch because he believes the value investors know what they are doing. Same-store sales don't matter, he said. Abercrombie & Fitch didn't change its guidance, its inventory is not too high and Hollister, one of their franchises, is the "biggest force in teen retail," he said.

"Fashions might change, but Abercrombie & Fitch is here to stay," he said. "I like J.C. Penney, but if you have value on your mind, Abercrombie & Fitch might be for you."

Heavenly Penney

Cramer welcomed J.C. Penney Chairman and CEO Myron Ullman to the show and asked him how the company delivered its unbelievable number.

"Our team has been consistent quarter after quarter, we've been executing our growth plan, and we have a consumer offering that gives them style and quality at a smart price," Ullman responded.

When Cramer asked him about the company's merchandise mix, Ullman said they have four different lifestyle offerings between the conservative, traditional, modern and contemporary trendy customers. He said merchandising by lifestyle with brands that customers recognize makes J.C. Penney the No. 1 preferred place for brands.

With gasoline prices going up, Cramer said consumers still seem to be spending a lot in J.C. Penney and asked for the reason behind this.

Ullman said that while customers are being careful and smart about how many trips they make, one advantage that J.C. Penney has is that one trip covers 18 different merchandise categories, and customers are finding a lot of things they like at the stores.

To view Cramer's interview with Myron Ullman, click here .

Lightning Round

Bullish

Cramer was bullish on Transocean ( RIG), Nabors ( NBR), Valero ( VLO), Walter Industries ( WLT), Enbridge ( ENB), Nucor ( NUE), AT&T ( T), Lowe's ( LOW), Southwestern Energy ( SWN), Canadian Natural Resources ( CNQ), Citigroup ( C) and Ameritrade ( AMTD).

Bearish

Cramer was bearish on Frontier Oil ( FTO), USG ( USG), Intel ( INTC), Kinder Morgan ( KMI), Insteel Industries ( IIIN), Sprint Nextel ( S), Home Depot ( HD), Chesapeake Energy ( CHK), eBay ( EBAY), Mentor Graphics ( MENT) and St. Joe ( JOE).

For more of Cramer's insights during the Lightning Round, click here .

Here's your chance to pick the stock you'd like me to feature on my radio show July 13:
Analogic
Caterpillar
DJ Orthopedics
Freeport McMoRan
General Dynamics
Home Depot

REMEMBER to listen in on Thursday for my take on the stock that wins this poll!

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.
At the time of publication, Cramer was long Alcan, Nabors and TD Ameritrade.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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