CNBC's Jim Cramer said Tuesday investors should look to the auto sector as monthly sales come in higher than expected.
"I saw an 18 million [annualized] unit number yesterday. … If we're doing 18 million units, you have to buy everything autos," Cramer said on "Squawk on the Street."
On Tuesday, General Motors reported a 3 percent rise in sales for May from April, beating Edmunds.com estimate of 1 percent.
Ford Motor also beat expectations despite seeing a monthly sales decline of 1.3 percent. Edmunds.com estimated the company's sales would drop 3.4 percent.
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"This is the strength right here. We're seeing all these Fed numbers, and so many of them aren't good, but then you get that auto line [and see that] autos are pretty fabulous.
DISCLOSURE: Cramer's trust owned GM stock when this article was published