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U.S. stocks closed lower Tuesday as oil prices fell and ahead of the Federal Reserve's statement on Wednesday. "We're in a bad moment," Jim Cramer told his Mad Money viewers.

But he said the real driver has been Europe, where stocks continue to move lower over worries of a potential "Brexit" after Britain votes on whether to leave the European Union June 23.

Cramer took the long view. He said the situation is not as bad the dot-com bust in the early 2000s or the financial meltdown in 2008. "In fact, we've seen this story before," he said. In 2011, the S&P 500 sunk nearly 20% on fears of a Greek default and a European slowdown that threatened to drag the global economy into a recession.

As for the current situation, Cramer asked, is it really worth ditching high-quality stocks to run for the hills? Of course not.

So investors should wait on the sidelines for now. Rest assured this "bad" moment isn't as bad as some of the other situations we've faced in the not-too-distant past, Cramer said.

Off the Charts

Is the home improvement industry improving? During the "Off the Charts" segment, Cramer took a closer look with Real Money contributor Suz Smith. She said several good buying opportunities are in the offing.

One stock she likes is Masco (MAS - Get Report) . The stock recently broke below its trading range, but should find support near its 200-day moving average. If this level holds and when combined with an oversold condition, the stock could be setting up for a bounce.

She also likes Sherwin-Williams (SHW - Get Report) and Whirlpool (WHR - Get Report) . Positive investment flows from institutional investors coupled with the consolidation pattern both stocks display sets them up for a potential pop, Cramer said Smith's research.

However, one stock she doesn't like quite yet is Home Depot (HD - Get Report) . Although this is an institutional favorite and pullbacks tend to be short-lived, Smith believes the stock could fall a bit further from its current levels after breaking below its 200-day moving average near $126. She says the stock could decline toward $121 before finding some support.

With a Name Like Smucker...

How did so many investors misjudge J.M. Smucker (SJM - Get Report) ahead of last week's "truly amazing results?" Cramer asked. This "blowout quarter" saw the company report much higher-than-expected earnings per share results, as sales climbed 25% year over year and margins improved dramatically.

J.M. Smucker's dog food business and coffee business continue to operate at incredibly impressive levels, which helped to drive the company's full-year earnings guidance of $7.60 to $7.75 per share, far above analysts' expectations of just $6.37 per share, Cramer pointed out.

So should investors buy? Cramer said with a valuation of slightly less than 19 times earnings, the stock is cheaper than many of its peers despite having superior growth. At just 20 times next year's earnings the stock is at $164, 14% above current levels.

Coffee prices are moving higher, which could have a negatively impact, Cramer said, noting Real Money contributor Bruce Kamich said the stock appears overbought and will likely decline to below $140.

But to Cramer, Smucker is just the kind of domestic-oriented play investors should be considering on a pullback.

ASCO Winners and Losers

Biotech and pharma stocks have largely had a difficult year so far in 2016. But Jim Cramer wanted to take a closer look at the group, digging through some of the winners and losers from the recent American Society of Clinical Oncology conference (ASCO), as noted by TheStreet's biotech writer, Adam Feuerstein.

First up, Bristol-Myers Squibb (BMY - Get Report) . The company came out this conference "smelling like roses," Cramer said, after showing positive data around its lung cancer treatment. Although the stock is just below its 52-week highs, Cramer still likes it.

Eli Lilly (LLY - Get Report) was another winner. The company's metastatic breast cancer treatment showed positive results. While Pfizer (PFE - Get Report) has a similar treatment on the market, Lilly's has a better safety profile. More results will be available later this year, but Cramer is feeling optimistic about Eli Lilly.

Then there's Johnson & Johnson (JNJ - Get Report) , which released positive data on its multiple myeloma treatment. Its European partner, Genmab also showed positive data in a recent European Hematology Association conference. "I think this drug has blockbuster potential written all over it," Cramer said, and it's one more reason to own this superb stock.

Finally, there's Juno Therapeutics (JUNO) . The company's immunotherapy treatment, while having some notable side effects, continues to show great improvements. That's why the stock shot up following the recent data released at the conference.

One stock with not-so-hot results? AbbVie (ABBV - Get Report) , which showed lackluster data on its small cell lung cancer treatment.

Here's the bottom line: Cramer said investors who want a speculative play in the biotech space can consider Juno so long as they are patient. For a safer play, go with J&J.

Lightning Round

On Monday's "Mad Money Lightning Round," Jim Cramer was bullish on Wells Fargo (WFC - Get Report) , Annaly Capital Management (NLY - Get Report) , NGL Energy Partners (NGL - Get Report) , Exelixis (EXEL - Get Report) , Honeywell (HON - Get Report) and Chubb (CB - Get Report) .

He was bearish on CF Industries (CF - Get Report) , Boeing (BA - Get Report) , GoPro (GPRO - Get Report) and American International Group (AIG - Get Report) .

No Huddle Offense

During the "No Huddle Offense" segment, Jim Cramer found a "wake-up call" from a well-known name: Jay Leno.

Leno briefly appeared on CNBC's "Squawk on the Street" show Tuesday. Given Leno's famous car collection, Cramer couldn't help but ask about Tesla (TSLA - Get Report) . His response? Leno bought one and he thinks it's great.

However, he doesn't understand the underlying pessimism around the company and its CEO, Elon Musk. "I don't understand why people attack this car," Leno said. "It's made in America by Americans. It's built local. You know we're becoming like the British; we like noble failures more than we like memorable success."

He went on to question why we don't celebrate success stories and entrepreneurship more than we do. Cramer didn't have an answer. And he, too, began question why everyone seems so negative.

"We've gotten so negative on so much, that it's definitely become the backdrop of even the whole stock market," he explained. Investors need to be careful. This isn't a call to blindly buy stocks without thinking of the consequences. But don't blindly sell on the commentary from naysayers and assumption that everything is going down. Progress will continue, Cramer said.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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At the time of publication, Cramer's Action Alerts PLUS had a position in WFC.