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NEW YORK ( TheStreet) -- The reshuffling of the Dow Jones Industrial Average makes a big statement about our nation, Jim Cramer said on "Mad Money" Tuesday. Cramer said that while the S&P 500 still remains the benchmark to beat on Wall Street, today's changes in the Dow reflect our changing economy and priorities. So exactly what changed? Alcoa ( AA), Hewlett-Packard ( HPQ) and Bank of America ( BAC) were all dropped from the index, replaced by Goldman Sachs ( GS), Nike ( NKE) and Visa ( V). Cramer said Alcoa remains a great company in a bad industry. Aluminum remains an important metal for everything from autos and aerospace to iPads, he noted. However, in the eyes of the Dow Jones industrials, it's the international influence of Nike's footwear that investors should be watching. As for HP, our nation and the world don't seem to care much about PCs anymore, so it's out with the old, said Cramer. Likewise with Bank of America, a symbol of financial engineering and the mortgages that almost toppled our nation's financial system. Goldman Sachs, on the other hand, doesn't have any mortgages, and Visa is more of a technology company than a financial, helping to bring the world into the digital age and away from paper money in favor of the all-mighty debit card. Cramer said he doesn't expect any of these new Dow additions to see much of a bump for their new anointed status. He said the markets continue to move on international issues, as they did again today with more positive news on the Chinese recovery.
Off the ChartsIn the "Off The Charts" segment, Cramer went head to head with colleague Ed Ponsi over the direction of the emerging markets, mainly India, as seen through the WisdomTree India Earnings ETF ( EPI), which is currently down over 19% for the year thanks to rising interest rates here at home stifling growth around the globe. According to Ponsi, however, that trend may be about to change. Looking at a daily chart of the ETF, Ponsi noted that after bottoming on Sept. 4, the fund has since shot up over $2. That's impressive for a $13 stock. He also noted the MACD momentum indicator is signaling a bullish crossover, at the same time the fund broke through its long-term trend line and, just today, through its 50-day moving average. All those points add up to a big deal for technicians, Ponsi concluded.
Cramer noted that the turn in India also coincides with a stabilizing of the nation's currency, the rupee. As confidence has been restored in the rupee -- so, too, has confidence in stocks tied to that currency. Cramer said he likes nation focused ETFs like this one and invests in both the Vanguard FTSE Europe ETF ( VGK) and the WisdomTree Japan Hedged Equity ETF ( DXJ) for his charitable trust,
Action Alerts PLUS . Every portfolio needs international exposure, Cramer concluded, and these ETFs are an easy, and profitable, way to invest overseas.
Executive Decision: Kevin PlankIn the "Executive Decision" segment, Cramer spoke with Kevin Plank, founder, chairman and CEO of Under Armour ( UA), a stock that's up 65% for the year but also one that now trades at 43 times earnings with a 20.5% growth rate. Under Armour has always been about authenticity. "You can't pay for promotion," Plank said. The athletes who represent and endorse Under Armour are also believers in the products. That helps make the company one consumers can trust. Cramer made the analogy that Under Armour is more akin to a technology and a biotech company than it is to an apparel company, and Plank agreed. He said his company has a deep pipeline of new products in development and is always looking to partner with and cultivate the best ideas. Under Armour has always been about making the best products, he continued. When asked about international growth, Plank said that with only 6% of sales stemming from overseas, there's a huge runway ahead. It takes time to build an international brand, however, he noted. In Japan, for example, Under Armour spent eight years building a $200 million brand that's now growing at 30% a year. Turning to Under Armour's most notable competitor, Nike, Plank said he's always focused on his company and not the competition. Under Armour sets the pace and direction and it doesn't take its cues from others, he explained. "Under Armour is a $10 billion company that's doing $2 billion in sales today," Plank concluded.
Cramer said he remains a strong believer in this apparel, footwear and accessory innovator.