NEW YORK ( TheStreet) -- "June was a lot better than May," Jim Cramer told his "Mad Money" TV show viewers on Tuesday, as he explained that company after company has confirmed this trend on their earnings calls. Cramer said this news is finally starting to dawn on the markets, most of which was paying attention to doom and gloom forecasts and estimates based on macro economic theories. But in reality, Cramer noted that in the month of June the price of oil peaked, commodity prices fell and even unemployment showed a glimmer of hope. Cramer said if investors listen to the companies themselves, and not the macro theories, they'll get a whole different outlook on the markets. Cramer noted that company after company, from homebuilder Lennar ( LEN) to apparel-maker Phillips-Van Heusen ( PVH) all said things were looking better in June than they were in May. The same rings true for Nike ( NKE), Fossil ( FOSL), Pier 1 Imports ( PIR) and Oracle ( ORCL), a stock which Cramer owns for his charitable trust,
Auto Recovery"We're starting to see signs of a recovery in the auto market," Cramer told viewers as he said that now is the time to jump back into the auto parts makers. He said the auto parts players are down an average of 18% thanks to the pessimism in the markets over higher fuel prices and lower demand. But with oil prices falling and demand starting to pick up, Cramer said this sector is ready to continue what is typically a 90-month expansion cycle. With so little auto part inventory in the system, Cramer said he likes Johnson Controls ( JCI), an Action Alerts PLUS name, the best. He said Johnson has seen a 45% increase since he first got behind it in November, 2012, but shares could see another 50% gain as demand improves. Johnson Controls is cheap, trading at just 12 times earnings with an 18% growth rate, he noted. Cramer also gave the nod to Lear ( LEA), which makes seating along with wiring and power management systems. Lear currently has a $2.2 billion backlog of work and trades at just 8.5 times earnings. Also making the list, turbocharger maker Borg Warner ( BWA). Cramer said this company also makes emissions and drive train components and is trading at a steep discount of only 14.8 times earnings with an 18% growth rate.
Shale Revolution Just StartingIn the "Executive Decision" segment, Cramer spoke with Aubrey McClendon, chairman and CEO of Chesapeake Energy ( CHK), a company whose industry has repeated come under fire from the mainstream media. Most recently, a report called the industry a Ponzi scheme, overrating reserves to boost share prices. McClendon said he's not sure why the natural gas industry is being targeted by extremists. He said gas prices are at a seven-year low and the U.S. is now the largest producer of natural gas in the world. That simply can't happen if the gas isn't there, he noted. McClendon said the U.S. is only at the beginning of the shale gas revolution and the industry isn't even allowed to talk about their unproven reserves, only their proven reserves. McClendon said that the geologist cited in the New York Times article is only one of 200 the company employs and one that hasn't been employed for long. He said the context of the email cited from the geologist was that it was hard to make money with gas prices so low, not that reserves aren't there. McClendon said the natural gas industry has spent hundreds of billions of dollars to develop their shale fields, adding the gas is indeed there in abundance. McClendon went on to say that it was sad that the New York Times missed the opportunity to tell the real story, which is that natural gas is a bright spot in the economy, one that could replace coal and create jobs and a better environment all while replacing dirty and politically costly coal and oil. Cramer said McClendon makes a pretty good case and he's placing his bets with Chesapeake.