Cramer -- Watch for Improving Global Economy to Boost Industrial Stocks

NEW YORK (TheStreet) -- Industrial stocks are heating up Wednesday, as seen by the rise in the Industrial Select Sector SPDR ETF (XLI). 

The better-than-expected economic data out of China gave these stocks a boost, TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment. 

Investors should keep an eye on this sector, Cramer insisted, especially if the economic data out of Europe and China continue to improve. Specifically, he's watching Action Alerts holdings Eaton  (ETN) and Honeywell (HON) as well as United Technologies (UTX) and United Rentals (URI). 

XLI Chart
Industrial Select Sector SPDR ETF XLI data by YCharts

With a global economic rebound, these companies can generate more cash and therefore, return more capital to shareholders, he explained. That will help to take the stock prices higher. 

Several of these companies could also follow in the footsteps of Danaher Corp. (DHR), which announced on Wednesday that it will be spitting up into two publicly traded companies, Cramer concluded. 

At the time of publication, Cramer's Action Alerts PLUS was long ETN and HON.

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