Traders are now thinking the economy is not as weak as they had believed, and maybe the Fed knows what it's talking about, Jim Cramer said on TheStreet.com TV's Wall Street Confidential video Friday.Commenting on the stronger-than-expected jobs number, Cramer told Aaron Task, the host of Wall Street Confidential, that he always likes to see half the Street believing the Fed should tighten rates and the other half believing it should cut rates, because that creates an environment in wjich profits tend not to disappoint. Cramer said he cares more about profits disappointing now because the market is "killing" the stock of companies that disappoint with their results. "People want out right now when profits disappoint, so you have to be careful about earnings," Cramer said. Task agreed by pointing out that people have seen this new trend with stocks such as Nabors ( NBR), Limited Brands ( LTD) and Motorola ( MOT). Cramer called Limited "classic" and said he was about to recommend owning the stock when it jumped to $32 because of the recent Victoria's Secret fashion show. But then he realized there was no reason to own it as it slumped to $29. Rather, he believes it's better to own TJX ( TJX) or Ross Stores ( ROST) here. Continuing with retail, when Task remarked on Best Buy's ( BBY) better-than-expected December sales, Cramer advised doubling up on the stock even though it is up.
"Best Buy has a history of doing two things: disappointing or telling people it's going to disappoint in November and then giving an upside surprise in January," he said. "The fact that anyone is not wise to this is irritating." Cramer suggested people buy Best Buy "hand over fist." Meanwhile, although Circuit City ( CC) has been rallying along with Best Buy, Cramer said he doesn't like it because he believes it doesn't have inventory controls or good merchandising and doesn't have "a sales force that knows how to send people towards more expensive stuff." Addressing the cell-phone business, Cramer says he doesn't like it, specifically Nokia ( NOK), especially now with the "wounded" Motorola. With Motorola performing poorly, Cramer warned investors to be careful of the component players such as Texas Instruments ( TXN). Although he wouldn't sell Texas Instruments, he doesn't see any reason to buy the stock. However, Cramer said he'd "take a hard look at Apple ( AAPL)" and would buy it.