If you want to make money, "don't look at news headlines about the stock market," said Jim Cramer on his "RealMoney" radio show Wednesday. He pointed to a piece in USA Today's business section as a prime example. The paper attributed Tuesday's stock rally to lower oil prices, but Cramer said that the opposite was true. Stocks rallied because oil and gas companies blew away their earnings numbers he said; and companies in this sector are reporting good numbers because oil prices have been high. Companies such as ConocoPhillips ( COP) and BP ( BP) are "making cash left and right" on oil prices, he said. Moreover, UPS ( UPS) was Tuesday's big loser because it is contending with the effects of higher oil prices. Stock rallies are simply about how much stock is available to buy or sell at any given moment, he said.
There was a time when it looked like General Motors ( GM) was going down, said Cramer, adding that the company was dogged by the wrong cars, poor sales and sky-high health care benefits. But now it's in the midst of a major turnaround that has legs, Cramer said. Even though the automaker just reported a $3.2 billion loss, Cramer said that management has figured out answers. Plus, the company has a turnaround pro onboard in Jerry York who also rehabilitated IBM ( IBM). First, York will fix the financials, Cramer said. Then he will tackle growth. He added that GM's recent earnings loss was mostly about bookkeeping and that the good news has momentum. "Hold onto GM if you have it. Buy it if you don't," he said, because it's behaving like a mid-cap stock that is finally getting it right.