Jim Cramer Talks July Retail Sales Numbers

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says July's aggregate retail sales were surprisingly weak and investors don't really know why, given the fact that employment numbers are improving, gasoline prices are decreasing and home affordability is getting better.

Cramer theorizes that Amazon  (AMZN) is taking a lot of sales, as the online retailer's sales spiked recently. He points to Macy's  (M) number on Wednesday, which indicated that J.C. Penney  (JCP) could be taking some sales. Cramer says there is more competition in retail than investors thought, which is driving the price down and overall in aggregate is taking down retail sales.

Cramer suggests investors watch autos, which did not report good numbers. Ford  (F) received an upgrade, but Cramer preaches caution in autos. He adds he likes GM  (GM) because of yield, which will benefit from lower interest rates thanks to the retail sales number.

Must Watch: Jim Cramer: Weak Retail Sales Don't Necessarily Mean Weak Economy

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TheStreet Ratings team also rates GENERAL MOTORS CO as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

You can view the full analysis from the report here: GM Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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