Cramer's 'Mad Money' Recap: Futures Pulling Down Stocks (Final)

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NEW YORK ( TheStreet) -- "Today's toxic market action has nothing to do with individual stocks," Jim Cramer told his "Mad Money" TV show viewers Monday. He said that's only sin today was being part of a market that trades in unison.

Cramer recounted how early this morning things were looking up, with rumors of a fast-track European bailout deal. The futures were raised even more by good earnings from Halliburton ( HAL), Wells Fargo ( WFC) and even Citigroup ( C).

Cramer said that Apple ( AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS , was touting record iPhone sales and all looked strong for the markets.

But then, he said, in an instant, new negative comments from Europe emerged and all was lost. The futures tanked in just minutes, and everything that was set to open higher reversed course. The futures, said Cramer, brought everything down.

Cramer said it's not that Halliburton's quarter wasn't terrific, or that Citigroup's numbers weren't good, or that Apple's number weren't amazing. He said it's not that earnings can't be trusted, it's that the futures are simply too powerful, and they're set in Europe.

Pin Action

Cramer was looking for pin action in the oil patch after a slew of recent deals were announced. He said that Kinder Morgan Energy Partners ( KMP) bid for El Paso ( EP), Brigham Exploration ( BEXP) acquisition by Statoil ( STO) and Energy Transfer Partners ( ETP) sale of its propane assets are all game changers.

Cramer said after delivering an 84% return since first recommending it in April, 2007, Kinder Morgan just got even better. He said the deal will create our country's largest pipeline company and give Kinder $350 million a year in cost savings. The deal also positions Kinder for the future and raises the company's growth rate from 5% to 7% a year. Cramer recommended MarkWest Energy ( MWE) as a similar play.

Cramer said that if Statoil is willing to pay up for Brigham, then foreign oil companies will continue to recognize the value of American oil and shale companies. He said that Continental Resources ( CLR) and EOG Resources ( EOG) remain his favorites in this group.

Finally, Cramer gave another ringing endorsement of Energy Transfer Partners, saying that the sale of its lagging propane assets will only help this best of breed company get even better.

On the Rebound

After years of being range bound, Cramer said that retail giant Wal-Mart ( WMT) is back and bigger than ever.

At a company analyst day, Wal-Mart noted that after years of losing share to dollar stores, department stores and drugstores, the company finally has seen three consecutive months of positive same store sales and is on track to post its first quarterly same store sale growth in nine quarters.

How has the company done it? Wal-Mart has seen a boost in consumer spending since gas prices started falling, but mainly its strength lies in providing a better assortment of products, as the company has reintroduced some 10,000 items it previously cut from its stores. Wal-Mart also touted a 90% on shelf-availability ratio, another positive for the company.

Cramer said that Wal-Mart is also cutting costs and improving its already efficient operations. The company plans to spend $13 billion to $14 billion this year on capital expenditures. Wal-Mart is also ramping up new store openings and embracing its Internet strategy as well.

Trading at just 10 times earnings with a 2.6% dividend yield, Cramer said that Wal-Mart is finally ready for its moment in the sun.

Changing the Face of Ecommerce

In the "Executive Decision" segment, Cramer spoke with the CEOs two of privately held companies that are working to change the face of ecommerce , Kevin Ryan, CEO of Gilt Groupe and Andy Dunn, CEO of Bonobos. Gilt Groupe offers daily deals and flash sales similar to the pending Groupon IPO, while Bonobos is changing online fashion their unique take on menswear.

When asked how the flash sale concept is different than online sales at juggernaut Amazon.com ( AMZN), Ryan said that Gilt Groupe focuses on the high end of the market, spanning multiple verticals, and using flash sales and scarcity to create urgency, something that traditional online retail lacks.

When asked how Bonobos is able to outwit other fashion retailers, Dunn said that for Bonobos, it all started with great fitting pants, then using the power of the Internet to find customers and create great relationships with them.

Cramer noted that for many companies, going public seems not to be the goal anyone, and Ryan agreed. He said for companies Gilt Groupe's size, going public is less attractive than it was years ago and his company sees no urgency to do so.

Finally, when asked why other retailers simply can't copy either company's concept, Dunn said that legacy distribution models tend to hold other companies back. "It's in our DNA and we hire the right people," he noted.

Lightning Round

Cramer was bullish on Baidu.com ( BIDU), Qualcomm ( QCOM), Teledyne Technologies ( TDY), Windstream ( WIN), Frontier Communications ( FTR), CenturyLink ( CTL), Campbell Soup ( CPB) and The GEO Group ( GEO).

He was bearish on Sina Corp ( SINA), VirnetX ( VHC) and American International Group ( AIG).

Closing Comments

In his "No Huddle Offense" segment, Cramer said this market is range- bound and a true rally in the markets will can't come without the financials in tow.

Cramer said that the financials make up such a big chunk of the S&P 500 that a rally is simply no sustainable without them. So what would make him bullish on the financials? Revenue growth. Cramer said with revenue growth comes earnings, but in some businesses, like investment banking and home lending, things are still in decline.

Adding to the banking troubles are costly new regulations and now pushback from Congress over Bank of America's ( BAC) new debit card fees.

Until the banks can rally, said Cramer, the markets will continue to be range-bound.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

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At the time of publication, Cramer was long Apple.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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