Cramer's 'Mad Money' Recap: Higher Without Europe (Final)

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NEW YORK ( TheStreet) -- On yet another roller coaster day on Wall Street, Jim Cramer asked his "Mad Money" TV show viewers where the market would be without Europe.

He then outlined 10 reasons why the U.S. markets deserve to trade higher.

1. The transports are strong. Cramer said to just listen to the Union Pacific ( UNP) conference call and you'll hear how autos, industrials and chemicals are all strong.

2. Tech's bouncing back. From Intel ( INTC) to Ebay ( EBAY), and yes, even Apple ( AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, are all doing well.

3. Industrial companies are flourishing. Cramer cited Parker-Hannifin ( PH) and Nucor ( NUE) as two companies with fantastic earnings.

4. Aerospace is booming. Cramer referred viewers to Alcoa ( AA) and United Technologies ( UTX) for all the information they need.

5. Retailers expect a good holiday season. With cotton prices falling, everyone from Macy's ( M) to Target ( TGT) seem to be springing back to life.

6. Restaurants are climbing back. Despite Darden Restaurants's ( DRI) awful numbers, Cramer said he like this group and even added Whole Foods ( WFM) and Starbucks ( SBUX).

7. The autos are in good shape. Left for dead just two years ago, Ford ( F) is even talking up a new dividend.

8. Utilities have improved. Cramer said these high yielders are fabulous day-to-day operators.

9. Packaged goods are doing well. These may not be sexy, said Cramer, but Clorox ( CLX) is a good stock.

10. Oil and gas. Cramer said strong domestic production continues to lift this group.

Cramer said there are still some segments that are lacking, like plastics and of course, the banks, but everything else deserves to trade higher, and would, if not for Europe's control over our markets.

Well-Run Bank

In the "Executive Decision" segment, Cramer spoke with Kelly King, chairman and CEO of BB&T ( BBT), a regional bank that just delivered a three- cent-a-share earnings beat with 4% year-over-year loan growth and improving credit quality.

King said that investors are having a hard time understanding the global environment and tend to generalize that if big banks are having problems then so must BB&T. However there are big differences between conservative banks and those who choose to take on a lot of risk, he said.

King noted that BB&T has no exposure to Europe nor any sovereign debt. He said that BB&T has always focused on their clients, so they typically don't see the boom or the bust. "We just help our clients as we always have," said King.

When asked about how the bank can make money with with such a low, flat yield curve, King explained that many of BB&T services have floors. So even if interest rates are at 1%, the bank will still be able to charge 4% and still maintain a reasonable margin. King also noted that 42% of BB&T's revenues are not tied to its community banking operations, which helps to diversify its exposure.

Cramer said that BB&T is a cheap stock and a well-run bank, but banks, he reminded viewers, are tough to own right now.

Competing Against China

In his second "Executive Decision" segment, Cramer spoke with Dan DiMicco, CEO of Nucor ( NUE), a steelmaker with a 4% yield. Nucor just delivered a 4-cent- a-share earnings beat on a 26% rise in revenues. Nucur trades at 10.6 times earnings with a 12% growth rate.

DiMicco joked that the economy has not been cooperating with Nucor and its slow rate of growth is not good for the steel business. That said, DiMicco said Nucor is taking full advantage of the weakness to improve sales and profitability. "Our shares can go nowhere but up," he concluded.

DiMicco also said that Nucor has growth quite a bit over the past 10 years and is producing more steel than ever before. He said not only is the company growing exports, but it's also growing its materials and high-value added products as well.

Turning to the hot-button topic of China, DiMicco said it's hard to compete with state-owned enterprises that have little profit incentive. He said that it's hard to compete with low-cost steel that's dumping into the U.S, especially when U.S. companies can't sell into or build plants in China. DiMicco called for the U.S. to get bank into the global trade fight and force the Chinese to play by the rules they've already agreed to play by.

Cramer said that Nucor is yet another dirt cheap company, only this one pays you 4% to wait for the economy to improve.

Getting America Healthy

In another "Executive Decision" segment, Cramer spoke with Bahram Akradi, chairman, president and CEO of Life Time Fitness ( LTM), an anti-obesity company that operates 92 fitness centers in 21 states. Shares of Life Time are up 11% since Cramer first mentioned the stock on May 25.

Akradi said that Life Time remains focused on helping Americans become healthier through its education and weight loss businesses. He said unlike other fitness clubs, Life Time is not focused on price, but rather on providing the best programs, products and service available. The result, he said, is customers appreciating the quality and not shopping on price alone.

When asked about locations, Akradi said there is easily room for another 200 locations in the U.S., adding that the most exciting opportunities will be in the clubs the company opens over the next three to four years and not the ones they have already opened. Akradi also said that Life Time is talking with Whole Foods ( WFM) to see about opening stores side by side in what he called a "slam dunk" for healthy customers.

When pressed further about where the company opens location, Akradi said that they won't risk cannibalizing one club by opening another close by. He said the company sticks with affluent neighborhoods typically with 150,000 people with a 10- to 12-minute drive.

Cramer said that Life Time is yet another great story that has nothing to do with the woes in Europe.

Lightning Round

Cramer was bullish on Tupperware ( TUP), Carrizo Oil & Gas ( CRZO), EastGroup Properties ( EGP), JC Penney ( JCP) and ( AMZN).

He was bearish on Green Mountain Coffee Roasters ( GMCR) and Barnes & Noble ( BKS).

Closing Comments

In his "No Huddle Offense" segment, Cramer defended his stance that earnings are actually really good this season. The problem, he said, is not with the earnings, it's with the stocks.

Case in point, Honeywell ( HON), which reports tomorrow. Cramer said that Honeywell is expected to report earnings of $1 share, a really good quarter. Yet Cramer predicts that if news on the Europe front is bad tomorrow, shares on Honeywell will sell off. But if the news is good, the shares will rise on the news, on the exact same earnings.

Honeywell may report good numbers, said Cramer, but if Europe agrees, those numbers will be reported as brilliant.

--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, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

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