Cramer's 'Mad Money' Recap: Shuffling the Dow Stocks

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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 Charts

In 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 Plank

In 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.

Lightning Round

In the Lightning Round, Cramer was bullish on Johnson & Johnson ( JNJ), Sprint ( S), Palo Alto Networks ( PANW), Royal Bank ( RBS), Wal-Mart ( WMT), Home Depot ( HD), Costco ( COST), SeaDrill Limited ( SDRL) and Petrobras ( PBR).

Executive Decision: Mike Stice

In his second "Executive Decision" segment, Cramer sat down with Mike Stice, CEO of Access Midstream Partners ( ACMP), which acts as a toll road, helping to get America's booming oil and natural gas production where it needs to go.

Stice said Access was built to be a quality MLP and currently has structured all of its contracts to ensure the company takes on no commodity price risk. Access only makes money by transporting oil and gas, regardless of how much that oil and gas is selling for on the open market. Additionally, Access has also built in volume protection, that protects shareholders from downside risk associated by fluctuations in demand.

Stice said all of Access' growth stems from the boom in oil and gas production in our country. He said that "chasing the drill bits" has proven to be very profitable.

Access is a big player in the Utica shale region of Ohio, Stice noted, which is actually three regions in one. He said the formation's wet gas, dry gas and oil components are largely still untapped. In the Marcellus shale right next door in Pennsylvania, there are huge opportunities to serve the energy-hungry Northeast, as well as the export market just as soon as our nation's first export terminals are completed.

Cramer said Access Midstream is a conservative player with a good yield that investors should look into.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said American energy independence isn't a pipe dream anymore, it's happening right before our eyes.

Cramer said the evidence is all around us: America's oil shale fields are booming. Nearly 743,000 barrels of American oil were refined at California refineries last quarter. This time last year, that number was just 250,000 barrels. In Colorado's Niobarra shale, Noble Energy ( NBL) is looking to triple its production to serve more of California's needs.

In the Bakken shale, production now sits at 900,000 barrels a day, up from just 400,000 just two years ago. The Eagle Ford shale in Texas has seen its production jump 58% over the past 12 months.

North American energy independence by 2020 used to be the goal, said Cramer, but recent reports now see that happening as early at 2018. If trucks make the switch from diesel to natural gas, American energy independence is within our reach. But, as always, we need to make it our mission and we need leadership from Washington.

In the meantime, however, Cramer said it's time to bet big on American energy and make money on the revolution.

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

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

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At the time of publication, Cramer's Action Alerts PLUS had a position in COST, DXJ, JNJ and VGK.

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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