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NEW YORK ( TheStreet) -- Yes, yesterday's election results are bullish for the stock market, Jim Cramer told his Mad Money viewers Wednesday. But that doesn't mean investors can start buying just anything.
What does a Republican-controlled Senate mean for stocks? Put simply, more gridlock, but also more confidence that taxes are done going higher and hiring will continue to grow.
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With the Republic Party moving more mainstream, Cramer said a government shutdown over our nation's debt ceiling is unlikely come December, and there will likely be more business formation and more borrowing as executives adjust to lower levels of uncertainty.
What types of stocks should investors been looking at? Cramer said the defense names, like Lockheed Martin (LMT) , are a logical choice, as are the banks, with regional names like SunTrust (STI) , a stock Cramer owns for his charitable trust, Action Alerts PLUS, also a good choice.
As a whole, yesterday's election will expand the average price earnings multiple, but not for companies that are still struggling with falling earnings estimates.
Executive Decision: Gary Heminger
For his "Executive Decision" segment, Cramer sat down to speak with Gary Heminger, president and CEO of Marathon Petroleum (MPC) , an oil refiner and retailer that actually makes money as oil prices fall. Marathon today delivered a 13-cents-a-share earnings beat on record results from the company's retail division.
Heminger said two things happen when crude prices fall. First, demand for gasoline rises, and second, Marathon makes more money as the company pays less but holds prices at the pump steady. He said that when gasoline falls under $3 a gallon sales increase by 1% at the stations, while at over $4 a gallon demand falls.
When asked about the prospects for the Keystone XL pipeline, Heminger said Marathon remains a big supporter of having another source for our oil. America still imports seven to eight million barrels of oil a day, so while we're less dependent, we're not yet independent and there is no U.S. oil glut.
Turning to last night's election, Heminger said he hopes for a comprehensive energy policy to make our nation's priority list. With Saudi Arabia defending its global market share with continued lower prices, America needs a strategy for competing in the global market.
Cramer said of all the refiners, Marathon remains his favorite.