The market has rebounded, so that means industrials are back! Right?
Not so fast, said Jim Cramer. Yes, it is easy to think that the industrials are back with Illinois Tool Works saying good things, United Technologies posting excellent numbers, and both General Electric and Honeywell making positive comments about the global economy. And how about the amazing comeback from PPG skyrocketing to $195 from $176?
Cramer thinks investors should take a closer look and take a look at what is beneath the market movement.
"I do not, for one moment, want to make you think that these big moves on industrials are about the earnings of specific companies," said the "Mad Money" host.
This market rally was too broad to just be related to company earnings or even one sector. Rather, it stems from good prospective news, making the industrials the catalyst.
In Germany, Chancellor Angela Merkel (or "Herbert Hoover in a pantsuit," as Cramer called her) could actually go along with Italy, France and the European Central Bank to borrow money to grow the economy. That means something good will happen there. If Merkel does not blink then that means money will gravitate back to Europe, which is a good thing.
Though some may consider the economy in China horrendous right now, Cramer is keeping an eye on Caterpillar. This company is set to report Wednesday, and the "Mad Money" host anticipates it has made too big of a bet on China.
"I think the Chinese domestic consumption might be growing again. So let's call China not as bad as we thought," he said.
Even as the aerospace industry has gotten clobbered over fears of Ebola, Cramer thinks they're finally getting a lift. Boeing will be providing results on Wednesday, and Cramer anticipates that it will report a strong quarter.
"Needless to say, the United States has been a source of growth for all of these industrial companies for some time," Cramer said.
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He thinks there is a significant amount of pent-up infrastructure demand worldwide. He is starting to see the non-residential construction business stirring up, which matters for industrial companies.
Ultimately, Cramer believes that if the good news around the world continues, these stocks will continue to climb, which will certainly make industrials an interesting place to be right now.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? madmoney@cnbc.com
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