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Cramer Remix: Samsung will slam this red-hot group

Jim Cramer sees potential buyers disappearing right before his eyes, and China's unexpectedly weak export numbers managed to take it one step further.

"Losing China right now going into earnings period could be a pretty big negative, given that it had been in the thought-to-be-positive column about a month ago," the "Mad Money" host said.

Data released overnight on Wednesday indicated a 10 percent drop in Chinese exports year-over-year last month. It was the worst in seven months. Cramer said it "stuck a knife into the heart" of the commodity rally that allowed stocks like BHP Billiton and Rio Tinto to soar.

It's not just China, either.

Earnings in the U.S. thus far have reflected that things are not strong, despite many investors calling for the Federal Reserve to raise rates in December. Cramer also couldn't deny that the issues with Samsung's Galaxy Note 7 could affect the red-hot semiconductor group. Samsung is the largest buyer of equipment that makes chips, which could be bad news for Lam Research, KLA-Tencor and Applied Materials.

"You put it all together and you can see how the loss of large areas of investible sectors can cause declines of the kind of magnitude we have been getting," Cramer said.

STR | AFP | Getty Images

Cramer was shocked when Honeywell, which has a huge assortment of businesses, saw its stock fall sharply in the beginning of October after management painted what was interpreted as a grim outlook for 2017.

Honeywell's CEO Dave Cote said that perhaps the long-term message may have gotten lost in that presentation.

"I gave credit for people understanding what our long-term profile was. I was wrong," Cote said. "This is one where I could have done a significantly better job of communicating this story. We tried to do it in the context of 2017 is going to be good, but it seemed to get totally lost."

Meanwhile, the market is constantly revaluing stocks on an hourly basis. For Cramer, there is no bigger stock revaluation occurring than for Wells Fargo, after the retirement of former CEO John Stumpf on Wednesday.

Twenty-nine year Wells Fargo veteran Timothy Sloan moved into the CEO seat from COO.

"Wall Streeters accepted quickly that Sloan had nothing to do with what went on at the retail bank. We aren't even sure that Stumpf did, but it doesn't matter. When there is fraud at a bank, the head of the bank must always take the fall," Cramer said.

However, Cramer does not think the issue will be with appeasing Wall Street. It will be with Congress, which represents Main Street, and Main Street is appalled at what happened.

Cramer believes that if the Fed raises interest rates in December, Wells Fargo's stock could have a major revaluation. He expects Wall Street to pretty much forgive Wells of any transgressions because of how much it will make from higher rates.


David M. Cote, CEO of Honeywell
Ashlee Espinal | CNBC
David M. Cote, CEO of Honeywell

The booming age of cellphones isn't just benefitting the technology industry. Ulta Beauty is now reaping the rewards of a "selfie" culture that prompts people to be camera ready at all times, CEO Mary Dillon said.

This was one of the catalysts behind the higher guidance that boosted the stock 11 percent on Thursday.

"We are really focused on the beauty enthusiast ... but also as you know, everybody has got a great phone in their pocket. Everybody is taking pictures. Who doesn't want to look good in a picture? I don't know anybody who doesn't," Dillon told Cramer.

While many bricks-and-mortar retail companies are struggling to compete with Amazon, Cramer noted that Ulta has managed to build a wall around its e-commerce business and it has not damaged growth.

Cramer decided to go off the tape to speak with iconic American company Levi Strauss & Co. to dive into the changing space of retail. The company got its start when Levi Strauss opened a dry goods business in 1853 and then partnered with Jacob Davis to invent the blue jean.

Cramer spoke with Levi's CEO Chip Bergh, who said the company has been doing so well because its strategy is working. Approximately four and a half years ago it decided to focus on its profitable core business, and then take the cash from that business and invest it back into growth.

The drivers of growth were the places they were underdeveloped in the Levis brand, and also as a direct-to-consumer retailer. The company has a global footprint of retail stores in 110 countries.

"The last big thing is the brand is resonating again. We brought the brand back. And that was a big part of the mission when I joined the company," Bergh said.

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

TPI Composites: "This is a tough one ... I see some big orders for wind. I am going to stay away from this one. I think that this is part of a complex that has already had its day, frankly."

Kinder Morgan: "KMI is an inexpensive stock now. I lost a lot of faith when they cut the dividend, but I can understand buying it. I think you'd rather have a basket of master limited partnerships, though."