Selling American stocks off of news from Europe is "a sucker's game" said CNBC's Jim Cramer on "Squawk on the Street" Tuesday.
"Europe is worse than we think, U.S. is better than we think, Asia is far better than we think. So I think things can cancel out to a degree," Cramer said. "Do not sell American stocks anymore off of Europe. It's a sucker's game."
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."
Jim Cramer's charitable trust owns shares of Yum! Brands.