Cramer's 'Mad Money' Recap: Tomorrow Is Another Day

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NEW YORK ( TheStreet) -- The bears may have won the game today, but the score can change dramatically tomorrow.

Jim Cramer told "Mad Money" viewers how the markets arrived at such a terrible loss Wednesday.

Cramer said each day the markets start at zero and head up or down based on the macro news and the micro earnings releases from individual companies. In Wednesday's case, the trading action started last night when Yum Brands ( YUM) reported stellar growth around the world growth, including China, and also noted an improving U.S. That news was negated by negative news from Cummins ( CMI) and tempered expectations from Alcoa ( AA).

Finally, there was Chevron ( CVX), a stock Cramer owns for his charitable trust, Action Alerts PLUS, which was hurt by a hurricane and a refinery fire.

Cramer said before the trading day even started, the markets were behind by 10 points, to use a football analogy. Then came earnings from Costco ( COST), which helped a little, but only until Avnet ( AVT) shocked the Street, putting the market's changes down by two touchdowns.

Then came Wal-Mart ( WMT), with a positive analyst day, and Apple ( AAPL), another Action Alerts PLUS holding, that was rebounding off its lows. These two stocks helped regain some of the market's losses.

But in the end, Cramer said that the strength in the retail stocks was not enough to undo the weakness in the oils, industrials and machinery stocks that were being hit by Cummins, Alcoa and Chevron, which is how the markets continued to slide into the red throughout the day.

Fortunately, tomorrow is another day, Cramer concluded, and the score can change dramatically.

Growth Stories

For the next installment of his "Anointed Growth Stocks," Cramer featured two retailers, Ulta Salon ( ULTA) and Tractor Supply ( TSCO). Both companies are regional to national growth stores, said Cramer, and Ulta is up 48% for the year, while Tractor Supply is up 40%.

With 489 stores delivering same-store sales up 9.3%, Cramer said Ulta has high hopes for the 100 new stores it plans to open next year. The company already commands 2.8% of total beauty product sales in the U.S. and is growing a 25% a year.

Tractor Supply is larger, with 1,100 stores and plans to open 90 more next year. The company expects it can ultimately have 2,100 locations, or 85% more than today. The company has decent same-store sales growth and little overlap with the likes of Home Depot ( HD) or Lowe's ( LOW). Tractor Supply is growing at 18% a year.

With shares of Ulta trading at 29 times earnings and Tractor Supply trading at 23 times earnings, Cramer said both of these stocks are expensive, which is exactly why the momentum traders will love them until the end of the year. He said these companies are a trade, not an investment, although neither have any overseas exposure but do have solid management teams.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Ron Shaich, founder, chairman and co-CEO of Panera Bread ( PNRA), a stock that's rallied 259% since Cramer first recommended it two years ago.

Shaich said the key to Panera's success has been giving customers lots of healthy food options and the transparency to make the best eating decisions. He said whether customers are looking for a low-calorie or high-protein meal or even an indulgent treat, they'll find it at Panera. Shaich also noted Panera was the first national chain to put calorie information on their menu boards.

When asked about Panera's key demographic, Shaich said his company tends to trend slightly older than the fast-food market and sees more casual dining customers who are willing to pay a little more for higher-quality food. That's why Panera has been the best-performing restaurant stock over the past 10-, five- and two-year periods and is again so far this year to date.

Shaich said that Panera is seeing modest cost inflation coming, but the company has adequate visibility to prepare by adjusting its prices accordingly.

Cramer said Panera remains a terrific company a wise investment for health-conscious investors.

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

American Capital Agency ( AGNC): "There are issues with some mortgage trusts. I want you to stick with this one and Annaly Capital ( NLY). I think they can manage the yield curve. "

Alexion Pharmaceuticals ( ALXN): "It's really speculative and it's up a huge amount. I like it but it can come down in this environment."

Barclays ( BCS): "I need best of breed and Barclays isn't it. I prefer domestic banks. "

Sarepta Therapeutics ( SRPT): "This is a speculative situation. I believe the company will partner with a bigger one. I like it in the $20's"

Calumet Specialty Products ( CLMT): "I'm sending you to Linn Energy ( LINE), which is better and more reliable."

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included: SPDR Gold Shares ( GLD), Monro Muffler ( MNRO), Dunkin Brands ( DNKN), Caterpillar ( CAT) and Toll Brothers ( TOL).

Cramer said this portfolio was "picture perfect."

The second portfolio's top holdings included: Americna Movil ( AMX), Heckmann ( HEK), Eli Lilly ( LLY), Hewlett-Packard ( HPQ) and Visa ( V).

Cramer said while he's not a fan of HP, this portfolio is diversified.

The third portfolio had: Eaton ( ETN), Verizon ( VZ), McDonald's ( MCD), State Street ( STT) and John Deere ( DE) as its top five stocks.

Cramer said he liked this portfolio as well.

No Huddle Offense

In the "No Huddle Offense" segment, Cramer weighed in on the seasonal rally in tech stocks, the one that investors could always count on until now.

There still is a holiday buying season, and companies still have tech budgets they need to spend, he said, but unlike years past there are a few new factors to take into account.

First, there's a global slowdown in consumer spending. Second, when it comes to consumer tech, Apple's gain appears to be everyone else's loss. Third, enterprises are buying less and less tech as they move more and more of their IT into the cloud. Finally, there's a slowdown in telecommunications spending.

Add up all these new elements and this year's seasonal rally in tech may not come at all.

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

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, CVX, ETN and HD.

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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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 TheStreet.com. 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 TheStreet.com, 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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