After the horrific events that occurred in Paris on Friday, Jim Cramer found many worried investors wondering if the action on the tape on Monday was the real deal.
Could the U.S. be headed back into a murky slowdown, and could the Federal Reserve push the market into one if it raises rates?
"First of all, whenever there is a horrific terrorist attack, like Paris experienced on Friday, you know that you are not going to get a true market on the next trading day," the "Mad Money" host explained. (Tweet This)
Many of the buyers on Monday were what Cramer calls patriotic buyers. Those are investors who are looking to take advantage of any weakness in stocks in order to show the people that perpetrated these acts that it will not impact them.
In fact, when Cramer took a look at the underbelly of what is really going on in the market, it was ugly. There are some tremendous declines in companies that are linked to American manufacturing, which prompted Cramer to think we could be headed into a manufacturing recession, which could be very significant for much of the country.
"Boy, oh boy, are some industries doing terribly and need a declaration from the Fed that, in light of recent events, they have decided to let 2016 play out before thinking of tightening," Cramer said. (Tweet This)
One of those groups that worried Cramer was the auto industry, which is showing signs of peaking right now.
On Monday morning, Marriott International announced it was buying Starwood Hotels & Resorts for more than $12 billion in a mostly stock transaction. And while the merger will create the world's largest hotel company, which confuses both Cramer and investors.
Starwood is the home of hotel brands such as Sheraton, Westin, St. Regis and Le Meridien, among others. It has been trying to sell itself for some time, and on Monday that deal was finally announced.
Typically, in a takeover situation, Cramer would expect the target stock to go higher. That was not the case here; Starwood's stock lost 4 percent in Monday's session, which indicated that Wall Street did not warm to the deal. The terms of the deal stipulated that shareholders would receive 0.92 shares of Marriott, and $2 for each share of Starwood. Separately, Starwood shareholders would receive an additional $7.80 from the spin off of its timeshare business.
Given that Starwood's stock closed at $75 on Friday, Cramer worried that it was undervalued. Why would management accept such a deal?
To get the inside take on the benefits that the merger of these two companies could bring, Cramer spoke with Arne Sorenson, CEO of Marriott International, and Adam Aron, the interim CEO of Starwood.
"We think it's a tremendous deal because we can pull these two companies together. We can obviously get cross synergies; that will be the easy part," Sorenson said. (Tweet This)
Another industry that has been slammed recently is the airline complex. Investors are worried that companies are adding too much capacity and too many new planes — something that could lead to vicious price wars.
One company that has not been spared in the sell-off is Spirit Airlines, which has been crushed more than 20 percent in one month. Many analysts who follow Spirit are now concerned with the company's ability to generate earnings growth next year.
Before a big wave of airline mergers hit the industry, Spirit was the one company in the group that was consistently profitable because of its ultra-low-cost business model that allows for cheap fares, but then charge for virtually every amenity imaginable.
Spirit was the growth airline when there were no other growth airlines, but are there turbulent skies ahead going forward? To find out, Cramer spoke with Spirit CEO Ben Baldanza.
"One thing that I think people are missing though … is that our model is inherently unit-revenue dilutive. We put more seats on our planes, we fly our planes more hours per day, and we don't look at unit revenue as the key metric that most others do. We look at margin and we look at return on invested capital, and if you look at the fundamentals of Spirit right now, Jim, they are stronger than they have ever been," Baldanza said.
To any investor that cannot handle the downturn of a high-quality stock, Cramer used the rally on Monday to make a point. Yes, any stock has the ability to go down when the market gets hammered — including FANG.
When Cramer looked over the charts on the weekend, he was stunned to find that very few stocks have been able to hold up in the recent sell-off.
"But I say if you are going to own FANG, you need to think long term, and if you cannot take a couple of points of short-term downside, then you need to rethink your whole approach to the market," the "Mad Money" host said.
And while many of the high-flying technology stocks have had a difficult time lately, Cramer reminded investors that there are a number of older, more value-oriented chipmakers that have been performing well.
Integrated Device Technology is a developer of low-power, high-performance chips for various niche markets such as next- generation communications infrastructure, high performance management and clock timing.
The stock has been climbing, up 30 percent for the year for one simple reason — the company is doing well. Can it continue to perform in a volatile environment? Cramer spoke with IDT CEO Gregory Waters to learn more.
"It's been a great year from a product perspective, and if I were to describe a little about the IDT culture we would like to think that we bring an operational and financial excellence to the way we approach business. But this is a product company with a product culture," Waters said.
In the Lightning Round, Cramer gave his take on a few caller-favorite stocks:
Apollo Commercial Real Estate: "It's got a high yield, but I don't really know what they own. And when I see those kinds of stocks I get nervous. Sell, sell, sell. The chart looks good, that's about all I can say."
Berry Plastics Group: "They missed a quarter, but then they came right back, and I like that. I was also looking at International Paper, which yields 4 percent. I got hurt on it when they missed the quarter, but I do think longer term it's a good situation."