Cramer's 'Mad Money' Recap: Earnings Descend (Final)

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NEW YORK ( TheStreet) -- Everyone will be buzzing over tomorrow's unemployment number, Jim Cramer told his "Mad Money" TV show viewers Thursday, but when it comes to next week's trading, earnings will be the only thing that matters. Cramer told viewers to take a deep breath, because next week kicks off another important earnings season for the markets.

Cramer said that on Monday, the markets will be digesting tomorrow's unemployment data, a report that should have come out yesterday given that the markets will be closed Friday. But beyond that, Cramer suggested that tomorrow's report will largely be a non-event, and he expects numbers to be in line with expectations.

Tuesday will be a tough day for the markets, said Cramer, as both Alcoa ( AA) and grocery chain Supervalu ( SVU) kick off earnings season. Cramer told viewers to stay away from Supervalu, a serial underperformer that's just off its 52-week low. Alcoa, however, is tougher, as there's still too much aluminum being produced worldwide, despite continued cuts at Alcoa, he said.

Wednesday brings Titan Machinery ( TITN), a machinery company that will offer an early look into the agriculture and construction industries. Also on Wednesday, the Federal Reserve beige book report, another non-event, said Cramer.

Then on Thursday, it's Google ( GOOG) in the spotlight. Cramer said this company is inexpensive, but does have many moving parts that investors like to pick apart. He told investors that Google is not a buy because of these many skeptics, but he still likes the company.

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Finally, on Friday, JP Morgan Chase ( JPM), a stock which Cramer owns for his charitable trust Action Alerts PLUS , and Wells Fargo ( WFC) close out the week. Cramer said that while he likes JP Morgan, Wells Fargo has no ties to Europe and may perform better in the short term.

Executive Decision

In the "Executive Decision" segment, Cramer once again spoke with John Richels, president and CEO of Devon Energy ( DVN), an Action Alerts PLUS holding that's expected to grow its production between 22% and 24% this year as the company continues to move away from natural gas into more lucrative oil drilling.

Richels took some time to clarify several misconceptions surrounding Devon. First was the notion that Devon is just a natural gas driller. He said that currently, 35% of Devon's production, some 250,000 barrels a day, is oil and oil liquids. He said Devon does have a huge natural gas inventory, but the company is spending $0 on new natural gas wells this year.

The second misconception was that Devon has maturing assets. Richels said that Devon was early in the Barnett shale region and has tons of growth remaining. "We'll be there for years," he added. Additionally, a new Cline shale field in the Permian Basin is another brand new and very exciting prospect for the company.

Finally, Richels said that Devon has no interest in making a dilutive acquisition with its $7.1 billion in cash on hand. He said that Devon would rather grow organically and the cash is a huge advantage that allows it to do just that.

When asked about America's upside-down energy policy, Richels made it clear that Obama's current energy policy blocking the Keystone XL pipeline will force Canada to send its oil to Asia. A lack of interest in U.S.-made natural gas will have companies exporting our gas in just a few years. Meanwhile, the U.S. continues to import foreign oil, totally ignoring its own huge domestic resources.

Cramer remained bullish on Devon.

Apple Shines

With shares of Apple ( AAPL), an Action Alerts PLUS holding, on a tear this year, up 56%, Cramer asked, does Apple have too much influence in the S&P 500? Using the help of his colleague Tim Collins, he dove into the numbers to find out.

Cramer explained that the S&P 500 is a market-cap-weighted index, meaning larger companies have more weight than smaller ones. So with Apple now one of the most highly valued companies out there, it's no surprise that Apple accounts for 4% of the index and has 20 times more pull than the average S&P 500 stock.

Collins prepared a chart that looked at the index both with and without Apple, as well as compared to just the top 10 largest companies in the index. His findings? Indeed, most of the S&P 500's performance this year has come from Apple. After Apple's 56% run this year, Microsoft ( MSFT) came in second with a 20% gain and IBM ( IBM) third, with a 12% gain.

Collins' analysis showed that the S&P 500 would still be up for the year, even without Apple, but Apple single-handedly canceled out the lackluster performance of all nine of the remaining top 10 largest companies in the index.

Cramer said it's not uncommon, however, for a single sector to be a large part of the market's performance. He reminded viewers that it was a single sector, the banks, that brought the markets to their knees just a few years ago, and it's Apple that's leading the charge today.

That said, Cramer noted that Standard & Poor's also keeps an equally weighted 500 index, and that index is still up 9.2% for the year. The Dow Jones Industrial Average is also up 7% for the year, and that index doesn't include Apple at all.

Cramer's bottom line, yes, Apple is a big part of the S&P 500, but it's nothing to worry about.

Mad Mail

In the "Mad Mail" viewer feedback segment, Cramer followed up on a few stocks that stumped him recently. He said that it's time to take profits in Chipsmos Technology ( IMOS), a supplier to Apple, and time to wait for InvenSense ( INVN), a provider of motion-based controllers for gaming, to give up some of its recent gains.

When asked about Roundy's ( RNDY), Cramer said he would still be a buyer of this stock, but he would not be a buyer of Nokia ( NOK) on the heels of its new Lumia 900 smartphone launch.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer explained what he means when he says a company has "good execution" and why companies like Sandisk ( SNDK), Avon Products ( AVP) and Bank of America ( BAC) simply don't have it.

Cramer said that good execution comes from not only a coherent strategy for success, but also the effective use of tactics to make that strategy a reality. Case in point, PPG ( PPG), said Cramer, a company that was once hopelessly tied to autos and housing and locked into low-margin commodity businesses. Yet CEO Chuck Bunch used terrific execution to steer PPG away from commodities and into proprietary businesses that have high margins.

PPG was also able to expand overseas and use great business tactics to turn itself into the gold standard of how chemical companies should be run. The company was able to cut costs when it needed to and has always remained shareholder friendly, said Cramer. And that's why PPG is at a 52-week high, he said, and deserves every penny of its share price.

Closing Comments

In his closing comments, Cramer was bullish on apparel makers PVH Corp ( PVH) and VF Corp ( VFC) and retailer Bed Bath & Beyond ( BBBY).

Lightning Round

In the Lightning Round, Cramer was bullish on Rayonier ( RYN), Plum Creek Timber ( PCL), Dicks Sporting Goods ( DKS), Cheniere Energy Partners ( CQP) and Schlumberger ( SLB).

Cramer was bearish on Callaway Golf ( ELY), Pandora Media ( P) and BroadVision ( BVSN).

--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's Action Alerts PLUS was long JPM, DVN.

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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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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