Don't panic.

Jim Cramer knows that the Dow's drop on Tuesday, Oct. 23 is worrying some investors. 

How Investors Should Be Looking at the Market 

Here's what he has to say about where the market is and how investors should be handling their portfolios. 

Right now, he said, the market is a buying opportunity. 

Real Money's Stock of the Day

Cramer also discussed Caterpillar (CAT - Get Report) , which is Real Money's stock of the day. The company fell after announcing earnings, which Cramer said is not surprising. 

Cramer discussed why, despite liking the company itself, he isn't so keen on adding it to Action Alerts Plus's portfolio. 

Earnings Previews

Cramer looked ahead to two companies that are releasing earnings tomorrow: Mattel and Boeing. 

According to FactSet, Mattel (MAT - Get Report) is expected to announce earnings per share of 20 cents. The toy company's earnings come two days after Hasbro disappointed the market with its earnings. 

Hasbro (HAS - Get Report) blamed the closure of Toys R Us's as part of the reason its earnings fell short of expectations.

Boeing (BA - Get Report) is expected to announce earnings of $3.47 a share. 

Real Money contributor, Stephen Guilfoyle breaks down the defense sector.