Jim Cramer's 'Mad Money' Recap: The Battle for the Market's Soul

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NEW YORK (TheStreet) -- The tug of war for the heart and soul of the market continued today, Jim Cramer told his Mad Money TV show viewers Tuesday. But while most stocks ended the day lower, for a brief moment this morning investors got a glimpse of what the market is really craving... value.

Cramer said the market continues to bet on good, old-fashioned value, while it also continues to eschew anything that doesn't have sizable earnings per share. Nothing illustrates this point better, he said, than Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS, versus Twitter (TWTR).

Apple shares rallied this morning to highs over $600 a share before succumbing to the market's downward pull, Cramer said. But in the end shares were only down 1% and are still up 6% for the year. Compare that to Twitter's hideous 18% decline today and its 50% haircut for the year.

What does the market like about Apple and dislike about Twitter? Earnings. Cramer said Apple is advancing on growing earnings per share along with an opportunistic buyback and a rising dividend. Yet, the company still trades at just 14 times earnings.

Compare that to Twitter, which has no earnings to speak of, and instead of retiring shares saw tens of millions of shares flood the market as its IPO lockup period expired. Cramer said he was pleased to hear that some to Twitter's management and a few large shareholders pledged not to sell their shares, but that wasn't enough to stop this wave of selling.

Cramer said that Twitter, even at these levels, remains expensive on just about every metric. This market craves value, he said, and those that don't have it will continue to get annihilated, as did Fire Eye (FEYE) and Yelp (YELP).

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off on the four-year anniversary of the now infamous "flash crash," the 30 minutes of insanity that sent the markets plummeting 900 points only to recover minutes later.

Cramer recalled that he was on the air at CNBC when the markets started falling, which prompted his call to buy Procter & Gamble (PG), which had just sunk from $61 to below $49.

Minutes later, while still discussing the day's events, Cramer told viewers to sell those Procter shares as they returned to $61, a move that made all those who followed a huge profit in just minutes.

How did Cramer know the $49 price was a false one? Because he knew Procter and knew what it was worth. He also knew that the high frequency trading machines had created an artificial price that just begged to be bought.

Cramer said the machines dealt a huge blow to equities that day and continue to distort the market and skim profits from investors. Since then the markets have been guilty until proven innocent, he concluded.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the direction of the housing market, which remains stagnant despite continued low interest rates.

Lang looked at a monthly chart of the iShares US Home Construction ETF (ITB) for his analysis, and noted the exchange-traded fund is showing a bullish cup and handle pattern.

Lang also tracked the home building ETF against the interest rates on the 10-year Treasury bond, noting the inverse correlation. As interest rates fall, home building always, after a brief delay, picks up as a result. The thesis was confirmed by an uptick in lumber futures, which could be signaling that housing demand is already on the rise.

But Cramer said he's not convinced that seasonality and a temporary decline in refinancing is to blame for slowing mortgage activity. He said it appears that prices are simply too high for most buyers and there isn't enough inventory to support a sizable uptick in activity.

Executive Decision: Anders Gustafsson

For his "Executive Decision" segment, Cramer sat down with Anders Gustafsson, CEO of Zebra Technologies (ZBRA), makers of specialty printers and radio-frequency identification, or RFID, solutions.

Gustafsson commented on Zebra's acquisition of Motorola's tracking technology for $3.5 billion. He said the deal brings together two halves of the equation because Motorola's technology reads what Zebra prints.

Gustafsson also talked about Zebra's pilot program that tagged all of the players of the San Francisco 49ers with RFID tags that tracked their movements on the field. He said this technology could one day add other sensors, such as heart rate and temperature, to the equation.

Zebra also plays a part in the health care industry, providing bar code solutions for patient wristbands and medications to increase accuracy and reduce costs.

Cramer said that he continues to recommend Zebra Technologies.

Lightning Round

In the Lightning Round, Cramer was bullish on National Oilwell Varco (NOV).

Cramer was bearish on Opko Health (OPK), Green Mountain Coffee Roasters (GMCR), Linn Energy (LINE), GasLog (GLOG) and Westport Innovations (WPRT).

Executive Decision:

In his second "Executive Decision" segment, Cramer sat down with Mark Lautenbach, president and CEO of Pitney Bowes (PBI), the digital communications company that's seen its shares surge 140% over the past 18 months. Pitney Bowes shares yield 2.8%.

Lautenbach said people still use the postage meters for which the company is known, but Pitney Bowes also facilitates over $1 billion of ecommerce transactions a year. Its digital solutions business is growing by 23% a year.

Lautenbach continued by explaining Pitney Bowes technology lies underneath the shipping options for eBay (EBAY) and helps facilitate shipments around the globe. Pitney also helps track those shipments though one of the best mapping solutions available.

Cramer said even after its big run, he remains a fan of Pitney Bowes.

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.

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, PG and NOV.

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