NEW YORK (Real Money) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- Sandy Cutler's assessment of the economy, and
- Some perspective on Apple.
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CEO Gives America All A's
Posted at 12:27 p.m. EDT on Friday, May 1, 2015
How bad can things really be if Eaton (ETN), a major U.S. industrial company, gives this country a report card that has all A's? What's that report card look like? Consider that CEO Sandy Cutler told us last night that residential construction, non-residential construction, aerospace, trucks and cars are all very strong.
When you think about it, you are talking about a considerable portion of the economy performing well. Housing may only be 10% of the economy, but it punches well above its weight. Eaton's blessing is big there. Non-residential construction is a gigantic form of hiring and Eaton's confirming what we have heard from many regional banks, namely that business has picked up and construction's driving a lot of jobs. Sandy cited the lower oil prices as a principal driver, and while oil has gone up 25% in the last month, it's still way down from where it was.
Autos are a huge force in the economy. Auto sales at these levels, about 17 million units, remain incredibly robust and that's been terrific for retailers AutoNation (AN) and CarMax (KMX). I can't say it is terrific for the automakers because, as you see from the reaction of GM's (GM) stock to its better-than-expected April, it doesn't matter. The autos are uniquely now about Europe, where GM's Opel is performing terribly, and about Latin America, which has fallen off a cliff.