Want to know what investors think about Donald Trump's plans for the economy? Watch bonds, Jim Cramer told his Mad Money viewers Thursday.
If bond yields are rising, it means investors are moving into stocks, which is great news for the industrials, banks and a host of other sectors.
Trump's meeting today with airline execs was a perfect example of the president's effect on the markets. Even a casual mention of corporate tax reforms was enough to get investors selling bonds and piling into industrial stocks like Cummins (CMI - Get Report) , 3M (MMM - Get Report) and Honeywell (HON - Get Report) .
Trump also offered his support to help U.S. airlines compete with overseas carriers, news that sent Cramer favorites Alaska Air (ALK - Get Report) and Southwest Airlines (LUV - Get Report) up 1.2% and 3% respectively.
As for the banks, Cramer said that any talk of deregulation seems to give shares of JPMorgan Chase (JPM - Get Report) a boost, while a softer tone on a border tax bodes well for ailing retailers like Costco (COST - Get Report) , an Action Alerts PLUS holding.
That's why Cramer said every investor should keep their eye on the bond market. If yields are rising, then so too will stocks.
Executive Decision: SAP
For his "Executive Decision" segment, Cramer spoke with Steve Singh, president of business networks and applications at SAP (SAP - Get Report) , the software provider that last posted a 14-cents-a-share earnings beat.
Singh, the former CEO of Concur Technologies, which was acquired by SAP, said that he's enjoying working with a larger company like SAP. He said not only are SAP's users loving the Concur products, but many Concur customers are learning about SAP's other offerings as well.
Singh was also bullish on Fieldglass, another SAP acquisition that offers human capital management services for a company's service-based workforce.
When asked about what's coming next, Singh said the next big trend will be "micro services," where applications like your email client are smart enough to take actions, like booking travel, automatically when it sees you have an appointment out of town.
Some companies are in control of their own destiny, others aren't, Cramer told viewers. That was certainly the case today when shares of Twitter (TWTR - Get Report) plunged another 12.3% after the company slashed earnings estimates.
It used to be that the more users you had, the more advertisers were willing to pay, Cramer explained, but that's no longer the case with so much traffic heading to Facebook (FB - Get Report) and Google (GOOGL - Get Report) .
Coca-Cola (KO - Get Report) is another company not in control of its destiny, as the company's main product, soda, just isn't as popular anymore. Compare Coke to rival Pepsico (PEP - Get Report) , another Action Alerts PLUS name, and it's clear to see that Pepsi is in control, as it has a thriving snack business to drive growth.
Cramer added both Allergan (AGN - Get Report) and Panera Bread (PNRA) to his "in control" list, while other names, like Emerson Electric (EMR - Get Report) and Cummins are only riding the tailwind of an improving economy.
Executive Decision: TreeHouse Foods
In his second "Executive Decision" segment, Cramer checked in with Sam Reed, chairman and CEO of TreeHouse Foods (THS - Get Report) , the private-label food maker that just posted a five-cents-a-share earnings beat with strong guidance for the rest of 2017.
When asked about the acquisition of those brands, Reed explained that ConAgra had attempted to combine both branded and private-label into a single business unit, a combination that just didn't work given the different natures of the two. TreeHouse has a single focus on private label, he said, and that's been critical to their success.
Turning to the topic of growth, Reed said that in the U.S., private-label penetration is only at 18%, while in other countries and in some U.S. markets, it's double that number. That leaves a lot of room for growth, he added.
Finally, Reed said that their market is changing, as more and more companies target millennials, who value healthy and organic items as well as things they can prepare themselves.
Cramer said shares of TreeHouse still have a lot of room to grow.
In the Lightning Round, Cramer was bullish on REV Group (REVG - Get Report) , Thor Industries (THO - Get Report) , AGCO (AGCO - Get Report) , Dow Chemical (DOW) , Shopify (SHOP - Get Report) and American Campus Communities (ACC - Get Report) .
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included Apple (AAPL - Get Report) , United Rentals (URI - Get Report) , American Express (AXP - Get Report) , International Paper (IP - Get Report) and IDEXX Laboratories (IDXX - Get Report) .
Cramer blessed this portfolio as properly diversified.
The second portfolio's top holdings included Walt Disney (DIS - Get Report) , Selective Insurance (SIGI - Get Report) , Universal Display (OLED - Get Report) , Sprint (S - Get Report) and Ford (F - Get Report) .
Cramer said this portfolio was "perfection."
The third portfolio had Ross Stores (ROST - Get Report) , Intuit (INTU - Get Report) , Adobe Systems (ADBE - Get Report) , Amgen (AMGN - Get Report) and Seacoast Bank (SBCF - Get Report) as its top five stocks.
Cramer said this portfolio was also "well played."
Cramer and the AAP team are snapping up a Mad Money favorite: Snap-On (SNA - Get Report) . Find out what they are telling their investment club members with a free trial subscription to Action Alerts PLUS.
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