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Cramer Remix: Regulators won't play by the rules for AT&T and Time Warner

Jim Cramer encourages all CEOs on the cusp of doing a big deal to think twice before trusting their advisors.

"Read my lips: No new big deals. Don't be fooled. The rules are now clear — the regulators want to stop them before they get started," the "Mad Money" host said.

The news on Tuesday morning that DuPont and Dow Chemical will delay their merger until February was just another blow for Cramer.

"I am beginning to believe that the lawyers and investment bankers who advise executives about this process are either totally clueless or so arrogant it amounts to the same thing," Cramer said.

As for the AT&T and Time Warner deal, Cramer doesn't expect regulators to play by the traditional rules. Traditional rules are that Time Warner makes content and AT&T distributes content, so there isn't an overlap, and the deal will go through.

New rules say that the entity could be so powerful that it could fail to develop new products to compete against Facebook and Alphabet. The entity could become so powerful that it will stifle creativity.

But of course, the advisors behind these deals think it's still a no-brainer, Cramer said.

Handshake M&A mergers promotion
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Nitpickers were out in full force after Apple reported earnings on Tuesday, which left Cramer perplexed as to why Wall Street is ignoring the company's service revenue stream.

"To me, once again, the exceedingly profitable revenue stream is the one to watch, and it is still being relatively ignored, despite its 24 percent growth to $6.3 billion, and despite the naysayers' comments," the Cramer said.

After reviewing the quarter, Cramer gave his usual mantra to own Apple, don't trade it. Apple's stock jumped far in advance of earnings, partially because of Samsung's issue with the Galaxy Note 7 phone that left room for Apple to take share in the industry.

Sometimes to get a true pulse on the economy, Cramer likes to look beyond the stock market to speak with individuals who are influencing the industries they are in.

Daymond John is a fashion mogul and entrepreneur who is the founder and CEO of FUBU and one of the original investors on "Shark Tank." He is also the author of three books, the most recent titled "The Power of Broke."

Cramer spoke with John on his perspective of Samsung's brand recovery following the issue with the Galaxy Note 7. John said he thinks the brand can recover.

"When I was a little brown boy from Queens making a couple of hats, it was Samsung's tech style division that reached out to me and turned me into a $6 billion brand. So, they are always looking … somehow they are going to manage to bring that to their new devices, because nobody thought they could even touch Apple. Look where they got in such a short period of time" John said.


Apple iPhone 7
Mark Neuling | CNBC
Apple iPhone 7

Cramer knows that sometimes the stock market does weird things. Among the strangest is the unusual connection between Costco and the dollar index, which suggests the stock could be ready to roar.

To get a full picture from a technical perspective, Cramer spoke with Larry Williams to figure out what could be in store for Costco's stock. Williams has traded stocks, commodities and futures for over 50 years, written 11 books, created various technical indicators used in the industry and teaches investors about the market on his website IReallyTrade.com.

When Williams looked at the charts for Costco, he couldn't help but notice the inter-market relationship with the dollar index. When the dollar is strong, Costco tends to perform well. The dollar index measures the value of the U.S. dollar versus a basket of the next six largest currencies.

"If you project this relationship forward given the recent strength in the dollar, Williams thinks that Costco could be on the verge of a significant rally," Cramer said.

KeyCorp shares rose almost 6 percent on Tuesday following earnings, with Cramer noting it was the best quarter he saw from any of the regional banks.

KeyCorp is the parent of KeyBank, which has approximately 1,000 locations across the Western and Eastern U.S. Not only were earnings strong for the quarter, but management provided a bullish update on the company's recent acquisition of First Niagara.

The strength of KeyCorp also gave Cramer assurance that when the Federal Reserve finally raises rates, this regional bank will be able to have even higher returns. He spoke with KeyCorp's CEO Beth Mooney, who outlined the two factors that drove the quarter.

"I think the strength of the quarter was really driven by two things: first and foremost it was the core performance of KeyCorp on a standalone basis … Within the quarter we did have our successful acquisition and integration of First Niagara, literally one year after we announced the deal, we have now $35 billion more in assets, another 1 million clients and 300 additional branches," Mooney said.


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

Bristol-Myers Squibb: "Bristol-Myers, we own a small position for the charitable trust. It is our smallest position, we do believe the stock will go lower. When it yields about 3.5 percent, and it yields 3 right now, maybe we pull the trigger and buy a little more. But not yet, the drug stocks are headed lower."

KKR & Co: "No, the dividend is not secure because it's now meant to fluctuate with the assets that they want to sell. And frankly, that is not an optimal situation for me. I would not make a big bet right here on KKR, because we don't know what they are up to."