As players experience another tough day in the market, Jim Cramer believes that it comes down to two things: the future and the Fed, he said on his "RealMoney" radio show Tuesday.

The future doesn't look too bright, he said.

Eaton ( ETN), which makes the industrial products and Grainger ( GWW), which sells electrical and power supplies both came out and said they are not performing so well and are getting weaker.

Immediately, Grainger, which is a blue-chip company, went down, Cramer said.

This is due to the monster number of rate increases that the market has seen that are controlled by the Fed, Cramer said. The Fed's actions are telling us that the more upbeat people are, the more the Fed will tighten rates.

Therefore, companies are giving us bad news. Taking a look at some of Cramer's favorite retailers, he said that JC Penney ( JCP), Target ( TGT) and Abercrombie & Fitch ( ANF) are all down.

Best Buy ( BBY), which Cramer believes is a very well-run company is three points off its low, and nobody wants to touch it. It's down too, he said.

Looking back at 2000, when Cramer said tech companies such as Intel ( INTC), Cisco ( CSCO) and Microsoft ( MSFT) all went down significantly and are still struggling, he said.

Although this is not encouraging, Cramer said the industrial sector is more auspicious, as companies such as Caterpillar ( CAT) 3M ( MMM) and Ingersoll-Rand, which he owns for his charitable trust, Action Alerts PLUS , all dropped before they skyrocketed.

Cramer believes that Ingersoll-Rand, which is at $36, could go as low as $35. This is a company that has lost a third of its value and hasn't done anything wrong, he said.

Cramer believes that the market will go lower before it goes higher, but eventually there will come a moment when stocks will be down enough so that people will not be afraid to buy them.

The Bright Side

Although the market is reacting to a slowing economy, there are some bright spots out there, said Cramer.

For one he said, Glaxosmithkline ( GSK), which makes products that consumers are going to buy no matter what the state of the economy, is performing well, as is Coca-Cola ( KO).

Coca-Cola is not finished going up, he said, adding that it has great management.

Cramer called Johnson & Johnson ( JNJ) one of the best medical device companies out there and said he likes PepsiCo ( PEP) as well.

The only tech company that Cramer said he likes is United Technologies ( UTX), which he owns for his charitable trust, Action Alerts PLUS .

United Technologies' secret is that not only is it well-run, but also it doesn't have a lot of U.S. exposure. In addition, the company is focused on business for defense, aerospace and infrastructure, and commercial real estate growth worldwide.

All of these businesses are in bull-market mode, Cramer said.

United Technologies belongs up there with stocks Cramer believes people should be looking at if not buying, he said.

Stocks are going down because there is a sense that oil can't go any higher, Cramer said, adding that the stocks' charts or the picture of stocks also looks bad.

But oil is not going down, he said, advising people not to abandon oil services even though their charts say to. There will be a better opportunity to sell oil services than this one right now, he said.

Cramer's Callers

Halliburton ( HAL), might have started declining since its split, but this is not the reason it's going down, Cramer told a caller.

Cramer believes that untrue rumors are knocking Halliburton down. People are betting against the stock, which he owns for his charitable trust, Action Alerts PLUS , but Cramer said he's on the other side of the table.

Even though oil-services stocks are going down, Cramer said at this point he wouldn't back down from HAL, although he said he wished he had sold some last week when he advised his Action Alerts PLUS subscribers to do so.

When a caller inquired about Ciena ( CIEN), Cramer said that frozen spending in the telecommunication sector and Prudential's piece today recommending that people sell Verizon ( VZ), means bad news for Ciena, even though it is a well-run company and has had great past couple of quarters.

Although Alcoa ( AA) had a monster quarter, Cramer told a caller that the Fed's tightening rates on May 11 was a big blow to all of the major commodity companies.

Cramer said he does not believe that Alcoa will start going up until the Fed says it's finished raising rates.

And even though Freeport Copper ( FCX) reported a quarter this morning that was quite frankly the single best quarter Cramer has seen since earnings season started, the company's stock opened up big and then promptly reversed.

Although both Freeport and Alcoa performed well, the stocks still can't go up, he said, advising the caller to get into defensive stocks instead.

Cramer told the next caller that it's time to back the truck up on Glaxosmithkline, which he said is doing better than Johnson & Johnson.

"I think people don't understand how really well run Glaxo's business is," he said, adding that it is a defensive stock he would buy.

Here's your chance to pick the stock you'd like me to feature on my radio show July 20:
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REMEMBER to listen in on Thursday for my take on the stock that wins this poll!
At the time of publication, Cramer was long United Technologies, Halliburton and Ingersoll-Rand.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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 here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from

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