Cramer: Markets will be ‘stupid’

Tuesday will not be a good day for U.S. markets, CNBC's Jim Cramer says.

"Today's the day when markets will be really stupid and everything goes down," Cramer said on "Squawk on the Street" before the skid after the opening bell.

Read More Caterpillar CEO: Lower oil hits earnings, outlook

Cramer made his remarks after several companies, including Caterpillar and Procter & Gamble, reported disappointing quarterly earnings reports.

"That was a terrible quarter [for Caterpillar]," Cramer said. "This company has not guided the Street at all; [it] didn't really give you a sense that this was going to happen."

Cramer also said the construction and mining giant performed poorly last quarter because of bad execution by its leadership. "A lot of the companies that are down today did not execute that badly," he said. "They executed well. They're going to have to back out the currency, figure out the organic growth and recognize some of these companies are doing well."

Read MoreP&G CFO: Strong dollar hits earnings, outlook

Investors looking for positive earnings reports should invest in domestic companies, Cramer said. "We will be looking back and say, 'What are we doing investing overseas?'" he said. "Domestically, we've got some companies that are really hitting the ball out of the park."

—CNBC's Matthew Belvedere, Peter Schacknow contributed to this report