Companies reporting on Tuesday unveiled earnings that were just "good enough" for Jim Cramer, yet those were the companies that triumphed above all in the market.
"There are more companies that are reporting in-line and therefore disappointing numbers right now, and that is not good enough. Hence the suboptimal performance of the averages," the "Mad Money" host said.
Twitter delivered what appeared to be good earnings to Cramer, but its forecast was terrible, so he put it in the "distinctly not good enough category." It's time for CEO Jack Dorsey to make a choice between Square or Twitter, Cramer said.
The ultimate good enough stock was Apple, which reported a 15 percent decline in revenue. Yet, the stock soared after hours on Tuesday.
How the heck could a decline be bullish?
"Simple, because there were many worries, even among the bulls, that it would be worse, maybe far worse than that," Cramer said.
This year has not been a good year for initial public offerings. Despite the downturn of overall IPOs, Cramer highlighted Acacia Communications as a star for its incredible moves on the tape recently.
At the end of July 2015, there were 121 companies that came public, raising a total of $21.2 billion, according to Renaissance Capital. There are currently just 48 IPOs this year, which have raised only $8.6 billion.
Acacia came public in May at $23 a share and shot up to $29 on its first day of trading. On Tuesday it closed at $59, up 177 percent from its IPO price.
"Acacia Communications has run up a lot, but the IPO never should have been priced so low in the first place, considering the company's remarkable growth," Cramer said.
The hot conversation on Wall Street Tuesday was whether oil will bounce back rapidly in a V-shaped recovery, or more slowly in a U-shape. Cramer determined he's with the U-shape crowd.
"I think the proponents predicting what will happen with oil actually have gravitas for once. That said, I'm going with the U," he said.
KeyCorp, the parent of Keybanc, also reported second quarter earnings on Tuesday with in-line earnings and slightly weaker than expected revenue. However, it had stronger than anticipated loan growth of 5.5 percent and showed credit improvements.
Unfortunately, the stock market didn't seem impressed and the stock sank slightly on Tuesday. However, Cramer found many positives buried within the quarter. For example, the company said it plans to resume its buyback program once it finalizes its acquisition of First Niagara.
He spoke with KeyCorp's chairman and CEO Beth Mooney, who reiterated the importance of taking on First Niagara for the company.
"August 1st is the closing date of our acquisition of First Niagara, it will be a 40 percent increase in the size of our bank and we will become the 13th largest bank in the United States … It is going to be a solid return for our shareholders," Mooney said.
At one time it seemed that biotech research company Alkermes could do no wrong, with a stock rising steadily year after year. But then in 2016, the wheels came off and the stock plunged more than 35 percent since January.
Some of the decline was because Alkermes announced that its depression drug failed to meet primary endpoints in two initial phase 3 clinical trials, and some of it was simply because it was caught in a brutal market-wide sell-off of pharma.
However, the stock has roared back since February. Cramer attributed the rebound to Alkermes' new anti-psychotic drug, Aristada, which is a longer-acting version of Abilify that makes it easier for people with schizophrenia or bipolar disorder to stay on their medication. At the same time, the company has had impressive growth in Vivitrol, a once-monthly injection to help recovering alcoholics and those addicted to opioids from relapsing.
Cramer spoke with Alkermes' chairman and CEO Richard Pops, who explained the significance of Vivitrol for opioid addiction.
"Right now millions of people are addicted to opioids … In the old days, 20 years ago when you talked about opioid addiction, it meant about 300,000 people addicted to heroin," Pops said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Manitowoc Company: "After listening to that Caterpillar conference call today, I kind of feel a little bit emboldened. You might actually get a bit of a pop in MTW, for speculation only. A $5 stock that I like."
Skechers: "We have to have them on. We've got to figure out what went wrong with the quarter. I think it's premature for me to be able to just bless that."