Transports Signal Better Economy
The transportation stocks are up, Cramer pointed out Friday, and that is “incredibly important” for the overall economy. The increase in the rail business usually indicates a pick-up in other industries as well.
“This group is a signal that we are not – not – getting worse,” he said during Stop Trading!. “We’re getting better.”
Cramer’s charitable trust owns Union Pacific .
On a related note, the Mad Money host said he is more bullish about General Electric’s Capital division than GE Transportation, regardless of the company’s new $500 million agreement to deliver locomotives to Kazakhstan. The deal is the transport division’s biggest ever outside of North America.
While there is a lot of talk about the consumer’s lack of spending, Cramer disagrees. In fact, consumers are spending “more wisely than ever,” he said. Shoppers are looking for value, and they are finding it in places like J. Crew. Cramer is bullish on JCG.
Also in retail, Cramer endorsed Office Depot. He commended J.P. Morgan’s “very gutsy” upgrade and praised ODP’s strategy of closing stores to create value as “right.”
In autos, Toyota Motor on Friday was “cooling,” Cramer said, “but that stock has been a rocket.”
And Ford Motor is up almost $1 from it recent secondary offering, which Cramer called “one of the most successful offerings in the history of the New York Stock Exchange.”
Cramer said he is still bullish on Agnico-Eagle Mines, Eldorado and Randgold Resources, especially after gold stocks just saw their best one-month gain in 10 years. He urged investors to add one of these companies to their portfolio.
“If you don’t own some gold or a mineral,” Cramer said, “I think you’re going to just miss out.”
“This is going to be a continual theme for the next decade,” he said.
Cramer's charitable trust owns General Electric and Union Pacific.
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