Caterpillar did a stellar job of throwing cold water on the rally of its stock, Jim Cramer said.
Shares of Caterpillar stopped in their tracks on Thursday when the company said consensus expectations for fiscal 2017 earnings per share were too optimistic. It was a total buzzkill for Cramer, yet the stock still managed to close up on Thursday.
"I say you bust the whole dichotomy. This is a moment where you want to bet on the mechanics of the market as much as the fundamentals of the economy," the "Mad Money" host said.
However, with Caterpillar up more than 40 percent for the year, this is too hot for Cramer. He said to wait until analysts downgrade the stock from the tepid guidance, and then start buying.
"I don't want the era to end, because the era was a great one," he said on CNBC's "Closing Bell" on Thursday.
Starbucks COO Kevin Johnson is slated to replace Schultz, who will become executive chairman. Cramer said he has known Johnson for a long time and always knew when he came in that Schultz could transition out of the role.
"Howard Schultz built an empire, a fantastic company. He has stepped aside once before and the stock did not do well," Cramer said.
Cramer also took a look at the stock of Henry Schein, the largest distributor of dental and veterinary products in the world, as well as a major supplier of vaccines.
When Henry Schein reported a month ago, it delivered a small earnings beat with a slight revenue miss. What really caught investors' attention, though, was that management gave very strong guidance for 2017, causing the stock to roar 6 percent on the news.
However, in the past few weeks, the stock has fallen back to almost where it was before it reported. Cramer suspected the drop could be related to the rotation associated with the Trump rally, where investors swap out of the safety stocks like Henry Schein and into cyclical companies.
He spoke with Henry Schein's chairman and CEO Stanley Bergman, who said that health care has fallen out of favor on the Wall Street fashion show.
"Health care stocks for some reason are just not fashionable, having said that, we are a consistent earner. We generate good sales, good EPS growth and we turn our profits into cash," Bergman said.
For months, high-yielding bond market alternative stocks have been crushed, especially the real estate investment trusts (REITs). However, Cramer pointed to CBRE Group as one real estate investment play that makes investors not have to worry about bond market competition, because it's not a REIT and doesn't pay a dividend.
CBRE is the leading purveyor of commercial real estate services, and also owns properties. It gets approximately three-quarters of its revenue from fee-based businesses, such as providing outsourced leasing, sales, appraisal, development and property management services.
Cramer spoke with CBRE Group's CEO Bob Sulentic, who outlined what a Trump presidency could mean for the company and real estate industry.
"If tax rates go down, that's a good thing. We are a taxpayer, and so that will stimulate not only our company but other companies. If infrastructure spending goes up, that could be a very good thing for our sector," Sulentic said.
"I need to warn you: this is a high-risk group and I have noticed a pattern that is less than ideal," Cramer said.
Bluebird is a development-stage gene therapy company that is a leading player for cancer immunotherapy. It announced positive interim phase 1 clinical trial data for its multiple myeloma therapy, which appeared to have few severe side effects, though it was a small study.
Cramer noticed that when a company like Bluebird reports good news, only the company's stock will rally. The rest of the group will barely move. But when a company reports bad news, the entire cohort gets crushed.
In the Lightning Round, Cramer gave his take on a few stocks from callers:
International Paper: "Inexpensive stock, good yield, big industrial, nice global business. I like IP, I think you buy some here and maybe buy some lower."
Berry Plastics Group: "I liked it. I can't believe how far the stock has moved. In the end, it's still just a company that makes containers. I prefer Newell, which I know has been absolutely crushed. We have been buying it for my charitable trust right here at $45."