Cramer's 'Mad Money' Recap: China and U.S. Stocks

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NEW YORK ( TheStreet) -- If China and Europe can take our markets lower, why can't they take them higher as well? That's what Jim Cramer asked "Mad Money" viewers Monday.

Cramer said that after years of dragging U.S. stocks lower, the evidence is mounting that a turn is at hand overseas, and that should be great news for U.S. stocks.

The media may be focused on Syria and the Federal Reserve, but Cramer said today's market rally was all about an improving global economy. He said many investors just don't realize many Chinese exports are sold in Europe. With Europe making a slow but steady turn for the better, China will be buoyed as well.

Cramer said he was dead wrong in 2011 when he went bullish on Ford ( F), a stock he owns for his charitable trust, Action Alerts PLUS . However, it's not unrealistic to think the automaker could now surpass its 2011 highs of $18 a shares now that Europe has actually become the tailwind he expected.

That's certainly what happened with Eaton ( ETN), another Action Alerts holding, as that stock is almost back to where it was when it disappointed last quarter.

Whether it's Caterpillar ( CAT) or Cummins ( CMI) or even Apple ( AAPL), yet another portfolio holding, all of these stocks have Chinese exposure that's being helped by a rising Europe.

Cramer said that when Joy Global ( JOY) delivers hideous guidance and shares rally thereafter, well, "that smells like a bottom." He said that everything from General Motors ( GM) to General Electric ( GE), from the rails to the banks could all be in on this move. Investors just need to pick the right stocks.

Executive Decision: Clay Siegall

In the "Executive Decision" segment, Cramer sat down with Dr. Clay Siegall, chairman, president and CEO of Seattle Genetics ( SGEN), one of the many biotech firms leading the charge against cancer. Shares of Seattle Genetics have risen over 88% since Cramer last spoke with Siegall in December.

Siegall said Seattle Genetics currently has over 20 clinical trials in process, both developing new drugs and expanding the uses and indications of their current ones. He said his company's treatments are not providing incremental improvements to the way cancer is being treated, they're saving lives and providing real benefits to a lot of patients.

Siegall added that for T-cell lymphoma, the current four-drug cocktail offers patients a 45% remission rate, but by replacing just one of those drugs with one of Seattle Genetics', the remission rate has jumped to 88%. Additionally, Siegall noted that by removing one of the more toxic drugs from the mix, patients are gaining additional benefits from fewer side effects.

Siegall also spoke about the importance of his company's many partnerships. He said Seattle Genetics currently has 12 such agreements, where the company shares technology with other companies in return for revenue, milestones and royalties down the road.

Cramer called Seattle Genetics one of the year's biggest winners and shares are not done heading higher.

Executive Decision: Manny Chirico

In his second "Executive Decision" segment, Cramer sat down with Manny Chirico, chairman and CEO of PVH Corp ( PVH), the apparel maker that offered tepid guidance for the rest of 2013, yet has seen its shares rise 19% since Cramer last checked in with the company on June 12.

Chirico explained that despite a strong performance in the quarter, he's seeing volatility from the global consumer and is no longer as bullish as he once was. He said PVH continues to try and understand the consumer better, but so far this quarter the company expected sales to be more robust.

Chirico clarified by indicating that PVH still expects to see a strong fourth quarter for the holiday season, but the back-to-school season thus far included a weak July, a strong August and a soft September thus far, so it remains a challenging environment. Another challenge for the company: Europe, specifically southern Europe, including Italy and Spain, two big markets for PVH. Chirico said that while things in the northern countries have been improving, Italy and Spain remain difficult and are not recovering as quickly.

Other challenges for PVH included the Calvin Klein jeans business, where Chirico said the company will be making big investments to regain lost market share. The turnaround in this segment of the business may take 12 to 24 months to complete, Chirico indicated, but he remains confident the distribution and other elements can be cleaned up for big gains later on.

Given the strength in other areas of the company, such as its recent acquisition of the Speedo and Warner brands, Cramer said that PVH remains one of his favorite stocks in the group, even as it hits a rough patch with the consumer.

Lightning Round

In the Lightning Round, Cramer was bullish on Avanir Pharmaceuticals ( AVNR), Fortress Investments ( FIG), HCI Group ( HCI) and Primerica ( PRI).

Cramer was bearish on DaVita ( DVA), Nuverra Environmental Solutions ( NES) and Raptor Pharmaceuticals ( RPTP).

Executive Decision: Russell Goldsmith

In his final "Executive Decision" segment, Cramer sat down with Russell Goldsmith, president and CEO of City National Bank ( CYN), the West Coast regional bank that's seen its shares up 36% since Cramer last checked in this past December.

Goldsmith painted a positive picture of the banking industry, saying that loan demand at City is up and the bank is attracting new clients to its already robust base. Even with interest rates on the rise, Goldsmith said customers are stepping up and buying homes before rates head even higher. Refinancing activity has slowed a bit, he admitted, but rates still remain at incredibly low levels historically.

Goldsmith also touted his bank's expansion into wealth management and venture investing as two big growth areas. He said City is now investing in early- and mid-stage technology companies in a bigger way.

When asked about the effects of rising interest rates and a reduction of Fed stimulus, Goldsmith said he views it as a good sign that the economy is strong enough not to need such aggressive measures.

Cramer said City has been a big winner for shareholders and he remains bullish on the bank and its prospects.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer reiterated that one of the hottest sectors in tech continues to be telecommunications equipment spending.

Don't let Cisco ( CSCO) fool you, he said. Things are terrific at companies including Ciena ( CIEN), Finisar ( FNSR) and JDS Uniphase ( JDSU).

Cramer said he continues to like Alcatel Lucent ( ALU), which he highlighted last week, but any of these companies are buys in his book.

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

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- 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 CSCO, ETN, F and JOY.

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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