NEW YORK ( TheStreet) -- "There's been a definite momentum shift in the markets," an upbeat Jim Cramer told the viewers of his "Mad Money" TV show Monday. He said after a delayed reaction to the good earnings news of last week, stocks are once again on the move. Cramer said when he reviewed all of the news and results of last week he saw a lot of positive things, including tremendous earnings. He said despite the doom and gloom of the headlines, 65% of the companies reporting managed to beat the already heightened expectations. Cramer also said that despite the naysayers proclaiming that the great earnings were nothing more than continued cost cutting, companies reported spectacular sales growth based on an actual uptick in demand. He said the good news was not all related to China either, as many has speculated. Rather he saw a lot of chatter about the U.S. economy from companies like Union Pacific ( UNP) and Alcoa ( AA), a stock which he owns for his charitable trust,
Scouting ReportCramer offered up a pre-game scouting report on packaged goods maker Kimberly-Clark ( KMB), purveyors of the Kleenex, Huggies and Scott Tissue brands, ahead of the company's earnings and conference call Tuesday. Cramer said Kimberly's earnings will set the tone for the next three months of the stock's performance, and with analysts having no expectations for the company, it might just be able to deliver an upside surprise. And if not, Kimberly's 4.1% dividend yield will protect it from a lot of downside. Cramer noted that of the analysts covering Kimberly there are five buys, two holds and 11 sell ratings. He said if even one of the hold or sell analysts goes to a buy, or raises estimates, the stock will likely rally. What does Kimberly have to say on their call to make that happen? Cramer said any number of things. Kimberly needs to reassure analysts about rising input costs, said Cramer, or tell them that the company is stemming the losses from rivals like Proctor & Gamble ( PG) and increased competition from private label brands. Kimberly could also offer some positive news on its professional businesses, which were particularly weak last quarter. Cramer said if any of this problems are resolved, it'll be good news for Kimberly. Analysts are looking for $1.15 per share in earnings on $5.03 billion in revenue. Cramer said the stock will likely get hit if earnings fall short of these estimates, but that may leave an opportunity for management to reassure investors on their conference call later in the day.
Intraday TurnaroundCramer offered a post-game review of McDonald's ( MCD) earnings action from today, as the stock opened lower on the earnings news, only to turn around midday and close higher by 37 cents a share. Cramer explained that before the opening bell, McDonald's reported inline numbers with earnings of $1.16 a share on revenue of $6.21 billion, just shy of analysts' expectations of $6.22 billion. As a result, shares of McDonald's took a 76 cent nose dive at the open. Among the concerns for investors, the company's same-store sales were weak for December and for the quarter after falling short in November as well. Sales in Europe also appeared sluggish as commodity costs continued to rise. Making matters worse, it appeared that McDonald's efforts to expand its beverage offerings may have run out of steam. But all of these concerns were addressed on the company's conference call at 11 a.m., sending shares sharply higher, reversing all of the morning's losses. Cramer said management addressed every concern, stating that bad weather was the culprit for declining same store sales in December, but sales for January had rebounded. Management also noted that food inflation costs were under control, and the company's aggressive growth plans remained intact. Cramer said investors who do their homework could have used this morning's slump as an excellent buying opportunity, as shares of McDonald's trades at just 15 times earnings despite the company's 10% growth rate and its juicy 3.3% dividend yield.