Cramer Remix: Investors underestimate Washington's impact on business

If Donald Trump does not accept the verdict of the American vote in November, Jim Cramer fears it could be a major blow to stocks.

"The idea of this election dragging on past Election Day is a nightmare for investors," the "Mad Money" host said.

There is so much money waiting on the sidelines that is waiting to get back into the stock market. But if Trump contests the vote, Cramer says the market won't be able to mount an early November rally that investors expect once the election is over.

While Trump did say on Thursday he would accept the results of a decisive vote in his favor, Cramer said investors need to watch to see if the race will be close enough for Trump to contest. The uncertainty generated from that could hold back the averages.

"I think people underestimate just how much of an impact Washington can have on the course of business in this country," Cramer said.

Republican presidential nominee Donald Trump listens as Democratic presidential nominee Hillary Clinton speaks during their third and final 2016 presidential campaign debate at UNLV in Las Vegas, October 19, 2016.
Mark Ralston | Reuters
Republican presidential nominee Donald Trump listens as Democratic presidential nominee Hillary Clinton speaks during their third and final 2016 presidential campaign debate at UNLV in Las Vegas, October 19, 2016.

However, Cramer warned investors that stocks and politics are not created equal.

"Stock picking is the opposite of politics. If you change your mind in politics, you get eviscerated. But if you don't periodically change your mind in the stock market, your portfolio gets eviscerated," he said.

When the facts change, Cramer changes his mind. It's that simple.

President Barack Obama, Tina Fey and Steve Carell have all been seen sitting in the same famous Herman Miller Aeron chair.

First introduced in 1994 and skyrocketing to become the best-selling and most recognizable performance chair of all time, Herman Miller has sold over 7 million chairs across 134 countries.

Twenty-plus years later, the company's CEO Brian Walker told Cramer on Thursday that it plans to transform offices around the globe one step further with its first major redesign of the Aeron chair.

"Everything that we think about is 'how do we make your people more productive, more healthy and happy.' And if you do that, you're going to have better employees, whether they are working at home or working in the office," Walker said.

Donald Trump
Mike Segar | Reuters
Donald Trump

Semiconductor stocks have been on fire lately, including Skyworks Solutions, the maker of high-performance radio frequency and analog chips. Its products are used in everything ranging from smartphones to cars, GPS and wireless networking.

Cramer spoke with Skyworks' CEO Liam Griffin, who tied the dominance of Netflix and Facebook, by confirming that the stay-at-home economy is alive and well, and he expects the mobile trend to continue to drive change in hardware for many years ahead.

"I think what is really important about our business today is this mobile, internet ecosystem that we support. It's tremendous," Griffin said.

On the flipside, semiconductor equipment maker Lam Research was slammed after it reported a seemingly strong quarter on Wednesday. Lam was in the process of purchasing KLA-Tencor, but the acquisition was blocked by the Justice Department earlier in the month because it indicated the deal was too anti-competitive.

Initially the stock jumped on the news of a good quarter, but it gave up those gains on Thursday. Cramer speculated that the decline stemmed from the company's forecast and equipment related to DRAMs — a type of memory chip — was soft, and some investors may worry that demand for Lam's products may be approaching a peak.

Cramer spoke with Lam's CEO Martin Anstice, who responded to the fears that its products are hitting a peak.

"We are focused on the long-term opportunity to innovate for the success of our customers in the semiconductor industry and create long term value for our shareholders," Anstice said.


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

Exelon Corporation: "I think Exelon has got it together. I was very confused, initially I was worried about ... the other mergers, but a 4 percent yield with some growth? Buy, buy, buy. Exelon is for me."

The Carlyle Group: "That yield may be a bit of a loser. I don't know if they can maintain that, so you have to be careful. It does seem undervalued to me but if you want to own it for yield, you have to be careful because I don't know whether they can back that up and it's a very opaque situation."