If Monday's stock market close was any indication, maybe we need more tariffs, Jim Cramer quipped to his Mad Money viewers after the day's strong rally on Wall Street. Despite the many "sky-is-falling" predictions, stocks did well, even after last week's surprise tariffs on steel and aluminum.
Cramer said that's because the bear case against tariffs just isn't strong enough and there are too many things going right in our economy.
Why do the bears have it all wrong? Cramer said that first of all, China is an exporting country and the U.S. market is too important to them to risk further actions. Second, we haven't yet seen any estimated cuts from these actions, likely because there won't be that many of them. Third, the U.S. economy is strong, which offsets any weakness in metals.
Cramer also said the Republicans will push back against any additional trade actions, and for a fifth reason, consumers can afford the tiny amounts that will be added to some purchases. The recent tax cuts more than offset any increase in the goods we buy.
Sixth, Cramer reminded viewers that money always flows toward safety. Technology, retail, most of the financials, and healthcare are all domestic and have little or no China exposure. Finally, Cramer said, China is behind the oversupply conditions and the excess capacity in steel and aluminum, and it knows it. Beijing doesn't want an all-out trade war any more than we do.
Executive Decision: Domino's Pizza
In his "Executive Decision" segment, Cramer checked in with Patrick Doyle, president and CEO of Domino's Pizza (DPZ - Get Report) , a stock that's up over 1,500% since Doyle first became CEO. Doyle will be stepping down as Domino's CEO on June 30.
Domino's is celebrating their 15,000th location around the globe and Doyle said the unit economics for those stores remain strong. This quarter's 4.2% sales growth was right in the middle of their guidance for 3% to 6% growth and Doyle said he's ending his tenure on a high note.
When asked about tax reforms, Doyle said they're great for the business and shareholders, and Domino's will use the windfall to invest in the business and do whatever generates the greatest return for shareholders, whether that's dividends, buybacks or acquisitions.
Doyle also noted that transportation is changing and Domino's continues to invest heavily to determine what's coming next for delivery services.
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Executive Decision: Nucor
For his "Executive Decision" segment, Cramer spoke with John Ferriola, chairman, president and CEO of Nucor (NUE - Get Report) , for the real story about what's been happening to our steel industry and what tariffs mean for his industry and the country.
Ferriola said that these tariffs should not have come as a surprise to anyone. They were a campaign promise of the president's and our government has been looking into them for over a year.
China has been a "bad actor" in the industry for years, Ferriola noted, as the country has enough steel capacity to meet the demand of the U.S. market three times over. Whether that steel comes to the U.S. directly or floods other parts of the world, the entire market pays the price.
Ferriola said that many countries around the globe have value-added taxes (VATs) on imports, and the tariffs announced last week merely put the U.S. in line with the rest of the world. The cost to consumers will be about $160 for a $36,000 automobile and less than one penny per can of beer or soda.
As for what this will mean for our country, Ferriola explained that a full one-third of the U.S. industry has disappeared since 1985 and that trend would only continue had actions not been taken. Steel is not only vital for defense but also for infrastructure, and for a robust economy.
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Time for Trinseo
The U.S. economy is roaring and that's the perfect time to own stocks like Trinseo (TSE - Get Report) , Cramer told viewers. Trinseo is a chemical solutions company that mostly manufactures styrene, he explained, and it's a stock that almost no one pays any attention to.
Trinseo got its start in 2010 when certain assets of then Dow Chemical were sold to Bain Capital. Shortly thereafter, those assets were renamed Trinseo -- a commodity chemical business that was a terrific company at the worst part of the economic cycle.
But now that the economy is booming, Trinseo is precisely the type of company investors should be looking for. Even after a 22% move last year, shares still trade at just eight times earnings. Inventories remain lean, gross margins are expanding and the company just posted upbeat guidance for the rest of the year. Despite all those positives, you can still pick up shares for below the company's forecast bump, thanks to Trump's steel tariffs.
The Lightning Round
In the Lightning Round, Cramer was bullish on Blackberry (BB - Get Report) , UnitedHealth Group (UNH - Get Report) , Capital One Financial (COF - Get Report) , AeroVironment (AVAV - Get Report) , Intuitive Surgical (ISRG - Get Report) and Nutanix (NTNX - Get Report) .
In his "No-Huddle Offense" segment, Cramer suggested that rather than arguing the merits of free trade vs. protectionism, investors instead should focus on something that can make them money, like the comeback of PCs.
That's right, after being eclipsed by cell phones for almost a decade, PCs are back. HP Inc. (HPQ - Get Report) saw double-digit growth in desktops, notebooks and workstations this quarter -- and that's huge news for stocks like Micron Technologies (MU - Get Report) , which just hit new all-time highs, yet still trades at just five times earnings.
The news is also bullish for Western Digital (WDC - Get Report) , which makes hard drives, Intel (INTC - Get Report) , which still owns processors, and NVIDIA (NVDA - Get Report) in the graphics space.
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