Mad Money

Buy Freeport-McMoRan

Freeport-McMoRan sells off after virtually every earnings report, Cramer said during Tuesday’s Stop Trading!, so investors shouldn’t be concerned about today’s dip.

The mining company’s second-quarter profit dropped 14%, mainly on higher costs, but as long as demand in China remains strong, Cramer still recommends FCX .

“Every time this stock comes down,” he said, “it's just a ridiculous buy.”

Stop Trading, Listen to Cramer!

In other earnings news, Bank of America also saw its Q2 profit shrink. CEO Kenneth Lewis recognized the credit losses he suffered, but called them “manageable.” Cramer said BAC’s “fantastic” deposit base should help offset some of those losses.

Another CEO named Ken didn’t get receive quite the same accolades, though. American Express’ Kenneth Chenault made a “major mistake” by moving his company into the lending market, Cramer said. Those loans were a key part of AXP’s Q2 profit loss.

“I am very concerned that American Express has permanently tarnished its franchise,” Cramer said, “and that was the best franchise in the world.”

Switching gears, Cramer said that with natural gas dropping to $9 from about $13, Canadian Natural Resources “is probably settling in here.” He predicted $8.99 will be the bottom for nat gas.

And lastly, among supermarket stocks, Cramer would recommend only Kroger. Both Supervalu and Safeway lowered their outlooks – SVU for next year’s earnings per share; SWY for this year’s same-store sales. Whole Foods, he said, has become a dividend yield play.

“I have a lot of faith in Kroger,” Cramer said. “I think that's the class of this field.”

Jim’s charitable trust owns Freeport-McMoRan.

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