Cramer likes large integrated oils such as Occidental Petroleum , Exxon Mobil and Hess.
Copper inventories at the London Mercantile Exchange are down, a sign that China’s stimulus is ramping up, Cramer said. Another indicator: Freeport-McMoRan is up 100% since its dividend cut, and “I don’t think it’s done.” This could be a prelude to other struggling minerals companies cleaning up their balance sheets and rebounding in a similar fashion.
The rise in Caterpillar is a short-covering rally, Cramer said, but President Obama’s stimulus plan, should it trickle down, could benefit the company.
Don’t confuse BJ’s Wholesale with Costco, Cramer advised. Costco’s venture into electronics and jewelry has hurt the company during this recession, while BJ’s has stuck to pure staples. That’s why BJ’s is the better story right now, though Cramer thinks that Costco’s is bottoming.
And lastly, Cramer said the AECOM Technology secondary offering was a reason to feel better about the markets. Investors who bought the offering are up a buck Wednesday, an “extraordinary signal” of rising demand.
Cramer's charitable trust owns Caterpillar and Freeport-McMoRan.
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