Cramer's 'Mad Money' Recap: Secrets of the Stock Market

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NEW YORK ( TheStreet) -- Sometimes the secrets behind stock market rallies aren't really secrets at all, Jim Cramer told "Mad Money" viewers Thursday.

He said it's clear there are three sectors driving the markets higher: the industrials, technology and everything oil and gas.

Cramer said while some investors are focusing on the "as goes January, so goes the year" theorem, he'd rather focus on what's working.

Take the industrials. It's no secret the industrials had been lagging as the U.S. stagnated, Europe was thrown into recession and China took a pause. But now that the U.S. is growing again, Europe is on the rebound and China is once again gearing up, it's no wonder Whirlpool ( WHR) is at a 52-week high. Housing is on fire, said Cramer, which is driving every stock that goes into a home as well as every diversified industrial company.

Then there's tech. Apple ( AAPL) may be lagging, but new techs like Google ( GOOG) and Facebook ( FB) are picking up the slack, as are all of the cloud computing players.

Finally, there's oil and gas. The American oil and gas revolution cannot be stopped, said Cramer, as evidenced by the 8.9% jump in Core Laboratories ( CLB). America is producing more oil than it has in 15 years, yet according to Core Labs, there still may be one or even two huge oil shale fields that we have yet to discover.

Cramer said that usually there is narrow leadership in January, but this year there are many big themes sending the markets higher. Investors only need to look around.

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Bill McDermott, co-CEO of SAP ( SAP), a stock that took a hit when it offered preliminary earnings on Jan. 15, only to come roaring back when the full earnings followed. Shares of SAP are up 64% since Cramer first got behind the stock and are now trading just off their 52-week high.

McDermott said his company's preliminary results didn't tell the whole story, which included two acquisitions and ended with the best year in SAP's 40-year history. He said once the company had a chance to explain the numbers, analysts and investors agreed that SAP continues to deliver for shareholders.

McDermott gave the case of the San Francisco 49ers, one of SAP's customers, which will be using its software to market everything from ticket sales to merchandise to food and beyond. He said the customer experience will be personalized and it will be mobile, reaching 49er fans wherever they happen to be. McDermott called SAP's solutions "precision retail" that focuses on customers and is device agnostic.

Turning to elsewhere in the world, McDermott noted that sales in Europe were up 13%, almost five times more than their competitors. He said that happens because SAP keeps an eye on innovation and helps customers grow their businesses, even in tough times.

Cramer said that SAP delivers on mobile, the cloud and big data, three of the hottest themes in technology.

Turbo-Charged Donuts

In his second "Executive Decision" segment, Cramer spoke with Nigel Travis, CEO of Dunkin Brands ( DNKN), a company that beat earnings expectations by 1 cent a share and has big plans for growth.

Travis said Dunkin could easily double its store count, adding another 3,000 locations east of the Mississippi and another 5,000 out west and in California. He said Dunkin is all about keeping franchisees happy and about making money, two things the company does very well.

Travis said Dunkin is investing heavily into technology as well. He said the company will be rolling out a loyalty program as well as a mobile app to help encourage ordering on the go. He said the one-to-one market will be a big benefit for Dunkin customers. Travis also touted his company's K-Cup coffee business as another strength.

When asked about Dunkin's overseas efforts, Travis admitted the company's current approach has now worked well. However, he said the company is moving to a new, more flexible strategy that will be country-specific. The new system will take three to five years to begin bearing fruit, however.

Cramer said he remains impressed with Dunkin, calling it the new Domino's Pizza ( DPZ) with turbo-charged growth.

Lightning Round

In the Lightning Round, Cramer was bullish on Vale ( VALE), KKR Financial Holdings ( KFN), Oneok ( OKE), National Grid ( NGG), Under Armour ( UA), Philip Morris International ( PM), Altria ( MO) and KeyCorp ( KEY).

Cramer was bearish on Southern Copper ( SCCO), Lululemon Athletica ( LULU), Exxon Mobil ( XOM), Regions Financial ( RF) and Clearwire ( CLWR).

The KEY to Success

In his third exclusive "Executive Decision" segment, Cramer spoke with Beth Mooney, chairman and CEO of KeyCorp ( KEY), a stock he owns for his charitable trust, Action Alerts PLUS.

Mooney said KEY was able to deliver 7% year-over-year loan growth last year as well as increases in net interest margin and other key metrics. She said business and industrial lending was particularly strong and KEY also re-entered the credit card business, which helped the bottom line.

Mooney also responded to a recent downgrade, saying the bank was swept up in a number of other bank downgrades, but she feels that her bank's loan growth, margin expansion and other efficiency programs will keep it ahead of the curve. "We have lots of momentum," Mooney concluded.

When asked about KEY's dividend, Mooney said it was able to distribute 50% of its net income to shareholders last year and she hopes to deliver even more as capital requirements improve.

Finally, when asked about the benefits geography gives KeyCorp, Mooney said that being in several different regions, including the southeast, midwest and northeast gives it diversification but also allows it to invest in each region for growth, taking advantages of the strengths each has to offer.

Cramer said KEY remains the strongest regional bank he follows and said the recent downgrade of the stock was simply wrong.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the extreme views surrounding Facebook. He said that, in short, investors are seeing only what they want to see.

Cramer said the bears simply want results right now, and don't want to hear that Facebook is sacrificing profits now to dominate later in the future. Meanwhile, the bulls love what they hear, a company taking the Amazon.com ( AMZN) approach and investing heavily in its future.

So who's right? Cramer said he's agnostic at the moment. He would have expected the company, with a billion users, to be turning at least a little profit by now, he said, but he certainly understands the growth initiatives. The opportunity is huge, Cramer concluded, but only if Facebook gets it right.

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-- 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

At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, KEY and VALE.

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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