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Cramer Remix: A surprising outlook for earnings

Cramer Remix: A surprising outlook for earnings

With so much negativity surrounding earnings season, Jim Cramer refuses to feed into it. In fact, he is downright positive about what could be ahead for earnings.

"The action is dictating my attitude, the action that has so many stocks hitting new-highs in the last week alone, something that tends not to happen right before you fall off a cliff," the "Mad Money " host said.

One look at the companies that made the new-high list last week, and Cramer saw a common thread. The list included Estee Lauder,Kimberly-Clark, Coca-Cola, Church & Dwight, Altria, PepsiCo, Tyson, ConAgra, Constellation Brands, General Mills and McCormick.

What do all of these companies have in common? They take raw commodities and refine, package and sell them.

Some may think that these stocks could be indicative of a slowdown in the economy, but Cramer thinks that is an old fashioned way of looking at things. These companies have battled inflation for years and have raised prices consistently.

"I think what it says is these companies are about to have an explosion in gross margins and earnings that will be far better than people believe is possible. That is what this concentration of consumer packaged goods stocks on the new-high list is really saying," Cramer said.

Read More Cramer: Signs an earnings explosion is coming

Universal History Archive | Getty Images

With earnings season finally kicking off this week, Cramer wondered which CEOs will dare to shock investors with a confirmation that things are actually better than they were before.

Listening to the presidential candidates, it may be difficult to see that things are turning around.

"Things are better than last earnings period. I believe that will come out, and it would already be obvious if not for the current political climate, where the socialist Bernie Sanders keeps winning primaries despite waging a one-man war on business and the Republicans keep talking about social issues, not job creation, " the "Mad Money " host said.

A bullish tone to the market could depend on the dynamic expressed in earnings. If the market sticks with the same old story that it is a promotional environment with the strong dollar rendering U.S. companies uncompetitive — with no clarity of the Fed or politics — then Cramer expects investors to be at odds with a downbeat scenario six months from now.

"I think we should be prepared for a bit a different narrative, and we need to be a little more bulilsh than the skeptics who have already written off this earnings season as an ugly one," Cramer said.

Read More Cramer: Bernie Sanders spoiling the earnings mood

Cramer's No. 1 rule to investing is to know what you own. In many cases it is easy to know what a company does. But sometimes, it is not always easy to understand what is really happening with a company.

Accenture is a company that is often described a consulting play or an outsourcer for information technology. It helps other companies upgrade systems to embrace the cloud, mobile technology and advanced data analytics.

But what the heck does that mean, and how the heck has the stock roared 8 percent since the beginning of the year?

"I consider Accenture to be a fabulous company with a stock that is absolutely worth owning, but you absolutely cannot own it if you don't understand it," the "Mad Money " host said.

Read More Cramer: The secret to Accenture's sauce

Democratic presidential candidate Bernie Sanders speaks at his caucus night rally Des Moines, Iowa February 1, 2016.
Rick Wilking | Reuters

As usual, Alcoa officially kicked off earnings on Wednesday. Cramer always looks forward to seeing what Alcoa has to say, as the aluminum company can give a powerful read into so many other industries.

Alcoa plans to split itself into two separate entities later this year. One as a commodity metals play, and the other as a high value-added maker of engineered products for light weighting, which will be called Arconic.

The company's earnings were regarded as mixed results, as commodity prices influenced sales. Shares of the stock were down almost 5 percent in after-hours trading following earnings on Monday.

"In the end, I personally believe that a sentiment has an impact on the investment profile, and if we talk about things that are headwinds, then in the end, in every boardroom people are saying, 'Hey, let's rather hold back with the investment and slow it down a little bit,' " Kleinfeld said. "As you know, sentiment has come back so I think it has the potential not to be a bad year."

Back in December, Newell-Rubbermaid announced it would buy Jarden, the mosaic of consumer brands, for $15.4 billion in cash and stock. On Friday, shareholders are set to vote on the deal.

If the vote passes, Newell-Rubbermaid will absorb Jarden this quarter, to create a consumer products giant. The two businesses combined are expected to have $16 billion in sales.

"If, like me, you think Newell will be able to execute, then this could be a fabulous stock to own, especially since there is a paucity of publicly traded companies that make goods that improve the value of your home while making your life more fun," Cramer said.

In the Lightning Round, Cramer gave his take on a few caller-favorites stocks:

Mattel: "Mattel has been in a straight line up. It has only a point off its high. You have to wait until it goes under $30 before you buy."

United Health: "I've got to tell you, UNH dropped out of a couple of exchanges and the stock is going to go higher still. It may be one of the best stocks in the Dow."

Read More Lightning Round: Best stock of the Dow?