The Dow and S&P 500 rallied to new multi-year highs Tuesday after a handful of robust earnings reports and a surprisingly strong report on consumer confidence added to increasing optimism about the economic outlook.
Ford rose 2 percent Tuesday, after the carmaker reported its best first quarter earnings since 1998. Ford beat Wall Street's earnings estimates with stronger sales of new vehicles.
It was more than enough for Mad Money's Jim Cramer to say on Tuesday's Stop Trading that he still likes Ford stock.
"The stock is not reacting as strongly as it should perhaps," Cramer said. "What I would worry about is an embarrassment of riches ahead of a contract talk ... I think if your biggest worry is that the union might think, 'hey, we want our own share,' be careful who you tangle with union. Alan Mullaly has done a lot of work with labor unions and he wants everybody to win, so they shouldn't be as greedy as the NFL players if I may say so."
3M also reported earnings Tuesday, also rising nearly 2 percent. The maker of Post-Its and Scotch Tape said quarterly profit jumped 16 percent from a year ago, beating analysts' estimates.
It wasn't that long ago that people were saying 3M couldn't deliver, Cramer noted.
"Totally delivered. Stock is incredibly cheap. It goes higher," Cramer said.
Cramer also likes IBM , whichincreased its stock buyback plan by $8 billion Tuesday and raised its dividend by 15 percent, saying it would pay a quarterly cash dividend of 75 cents a share, an increase of 10 cents a share and the sixteenth straight year it has boosted the shareholder payout.
IBM has paid a dividend every quarter since 1916. Is this company just too good to be true?
"I think it's the opposite," Cramer said. "This company is doing everything right and it does not get its due. It is a remarkable company, and I can't believe how many problems it is solving for corporate America and corporations worldwide."
Cramer has sung the praises of Panera Bread several times, but is not so optimistic right now.
"In light of Chipotle , in light of Netflix , in light of what I'm seeing about the high multiple stocks — even though I think Panera is going to report a good number, I don't know whether any number can be enough for a group when you've got unbelievably cheap, large industrial companies that people are rotating into like mad.
On Tuesday's Mad Money, Cramer talks with Arch CoalChairman and CEO Steve Leer. It all starts at 6 p.m. ET.
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