Cramer's 'Mad Money' Recap: Things Are Going Too Well

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NEW YORK ( TheStreet) -- Today there was profit-taking because things are going too well, Jim Cramer said on "Mad Money" Wednesday. That logic may seem counter-intuitive but with so many parts of the economy heating up, it's almost time for interest rates to start heading higher.

Cramer told investors not to take their cues from Caterpillar ( CAT), a company whose management has been doing all of the wrong things. Instead, look at all the sectors that are doing well -- such as housing, which is seeing new home sales at five-year highs. Or autos, where Ford Motor ( F) is leading the charge.

Travel is also on fire, as US Airways ( LCC) and TripAdvisor ( TRIP) showed us today, said Cramer. Aerospace continues to roar, with Boeing ( BA) saying that it needs more workers.

And the good news keeps coming, noted Cramer -- from more telecom spending to defense contractors hitting all-time highs. With Europe bottoming, these moves could become even more powerful. There may be some pockets of weakness as we've seen with some, but not all, restaurants as well as some, but not all, railroads. However, he said, overall it's clear the U.S. economy is hot enough that the Federal Reserve can't be far from needing to raise interest rates.

Executive Decision: Mike Thaman

In his "Executive Decision" segment, Cramer spoke with Mike Thaman, chairman and CEO of Owens Corning ( OC), which delivered Wednesday a 12-cents-a-share earnings miss on lighter-than-expected revenue. Shares of Owens Corning stood their ground in today's trading, however, and are still up 60% for the year.

Thaman attributed the shortfall to the company's roofing products, which were in high demand this time last year but are now following a more normal seasonal pattern. He said the volume is building towards the second half of the year, however, and he expects strong momentum to continue into 2014 and beyond.

When asked about the red-hot housing market, Thaman said what's most important for Owens Corning is that demand is growing in a predictable pattern that allows customers to build their inventories and Owens Corning to raise its prices. He said disruptions in growth cause the building products market to take pause, but things have been growing steady over the past 12 to 18 months.

Thaman was also bullish on rising interest rates, saying the trend will likely bring more buyers to the market before rates go even higher. Borrowing money at 4% and buying a home that's rising in value by 10% is still a great deal, he noted. Thaman was even bullish on China, where competitors have slowed their expansion and are waiting for demand to catch up to supply.

Cramer called Owens Corning a great American company and said when a company announces a shortfall and the stock doesn't go down, well, that should tell you something.

Speculation Recap

To be a great investor, you need to remain rigorous and disciplined, Cramer told viewers, and that's especially true when speculating. That's why Cramer recapped his 12 "Speculation Friday" picks for the year to see how they've been doing. Not surprisingly, they've delivered a 20% return, on average, with five massive winners, one 30% winner, three losers and the rest remaining essentially flat.

Cramer said that W.R. Grace ( GRA) is still not yet out of bankruptcy and he still likes its prospects. He was also bullish on Jazz Pharmaceuticals ( JAZZ), Celldex Threapeutics ( CLDX) and TearLabs ( TEAR).

Cramer said he was worried about Facebook ( FB), a stock he owns for his charitable trust, Action Alerts PLUS -- until today, when the company reported terrific earnings.

Also in the bull camp were Radian Group ( RDN), Krispy Kreme ( KKD), JDS Uniphase ( JDSU) and Blackstone Group ( BX). Even pharmacy benefit manager Catamaran ( CTRX) was still a buy in Cramer's book.

Among the losers, Cramer said he was disappointed by Compuware ( CPWR), but VirnetX ( VHC) was the biggest loser, down 48% since the recommendation.

Lightning Round

In the Lightning Round, Cramer was bullish on Kohlberg Kravis Roberts ( KKR), Computer Associates ( CA), Advanced Micro Devices ( AMD), Alliance Fiber Optic Products ( AFOP) and Petrobras ( PBR).

Cramer was bearish on RetailMeNot ( SALE), Isis Pharmaceuticals ( ISIS), Best Buy ( BBY) and Smithfield Foods ( SFD).

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: Yahoo! ( YHOO), Juniper Networks ( JNPR), Coca-Cola ( KO), KeyCorp ( KEY) and Kinder Morgan ( KMI).

Cramer said this portfolio "rocked."

The second portfolio's top holdings included: Solar City ( SCTY), Coty ( COTY), BGC Partners ( BGCP), SeaWorld ( SEAS) and Potash ( POT).

Cramer also blessed this portfolio as properly diversified.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the Apple ( AAPL) conference call. Apple is an Action Alerts PLUS holding.

Cramer said if you believe the analysts, Apple is on its last legs and doing nothing right. They worry about smartphone saturation and low-end product cannibalization of Apple's high-margin products. Despite selling around the globe, the analysts only focus on China, which has traditionally not been one of Apple's strong suits. Alas, Apple has become a battleground stock, with shares rising sharply in spite of the analysts' negativity.

Cramer said nothing will break this negativity except a stunning new product announcement. Until we get one, there will be little to take the stock significantly higher.

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

-- 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, F, FB and KEY.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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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