Cramer pointed out that earnings have been "surprisingly strong" this year and now we're seeing some deal flow. "I think these are big things. [The potential Virgin Media takeover] is a global deal and I think they're putting a floor on the market."
"Maybe the cloud is lifting worldwide," he said later in the show. "Companies feel that they're undervalued and aren't getting enough credit. There are a lot of companies there."
"This was a remarkable earnings season so far, more importantly it's been a great takeover season. The investment bankers are going to make a fortune and we're not talking enough about that," he said during the "Six Stocks in 60 Seconds" segment of the show.
Other stocks Cramer discussed Tuesday morning:
Yum Brands: "This is clearly much worse than expected," Cramer said. "Whenever we have a double-digit decline, what that says is that you can't come back within a reasonable period of time. If you're buying this stock, you're betting on (Yum CEO) Novak.
Cramer said that Novak "is a comeback kid, but he can't come back that quickly," and that the company "can't get their arms around how bad it is." Cramer sees a potential floor for the stock at $57.
McGraw-Hill/Standard & Poors: "I don't think Eric Holder is playing politics," Cramer said, referring to the idea from some in the markets that the government is hitting back at S&P for a U.S. credit rating downgrade in 2012. However, Cramer said that if the government wins on a fraud charge it could ripple through the markets. The Department of Justice will be announcing a "major financial fraud enforcement action" on Tuesday morning.
Walt Disney: Cramer said he thinks the company is in a similar place as it was last quarter, where investors worried about the stock, but it was a "fabulous performer." Cramer said the stock is "not worth selling."
— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from Squawk on the Street @ToscanoPaul
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Jim Cramer's charitable trust owns shares of Yum! Brands.