Mad Money

Cramer Remix: Why the market didn't tank after the Fed's rate hike

Cramer Remix: Why the market didn’t tank after the Fed’s rate hike

The stock market's reaction to the Federal Reserve announcing it would raise rates on Wednesday was the most unthinkable response Jim Cramer could have imagined.

After the 2,000 point run up the market had before the announcement, Cramer thought the market was due for a sell-off.

Instead of a wholesale slaughter or collapse, there was a relatively gentle sell-off—which was good news for Cramer.

"I think it means that we may be actually getting back to normal … I can't stress enough how seminal this normalization is," the "Mad Money" host said.

A trader works on the floor of the New York Stock Exchange as a television screen displays coverage of U.S. Federal Reserve Chairman Janet Yellen shortly after the announcement that the U.S. Federal Reserve will hike interest rates in New York, December 14, 2016.
Lucas Jackson | Reuters

The market finally took a breather on Wednesday, which prompted Cramer to assess which stocks could be the best to scoop up for when the rally resumes in the not too distant future.

"Whenever I see something roaring, I ask myself, is it a potential takeover? Is it a revaluation, or the animal spirits of the market? Or is it Trump? That is the prism I use with stocks that have rocketed higher," Cramer said.

The best winners, Cramer said, are those with the Trump triple threat — winners from deregulation that benefit from lower taxes, and those that will be able to repatriate large sums of offshore money.

The top stocks were industrials, banks on deregulation and Apple for its massive cash hoard overseas.

Cramer deemed Cintas Corporation the "ultimate Trump stock" on Wednesday, and he expects it to fly even higher when President-elect Donald Trump is in the White House

Cintas is the provider of uniforms for employees, as well as things like first aid, safety, fire production and cleaning products.

The core of the reason why Cramer likes Cintas was straightforward: When companies hire more people, they need more uniforms, and Cintas will make more money.

"If, like me, you believe that the triple whammy of lower corporate taxes, deregulation and the repatriation of overseas assets will provide a big boost to employment here in the United States, then it's easy to see why Cintas would be worth buying," Cramer said.

Donald Trump
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At one point, U.S. Concrete CEO Bill Sandbrook thought the economy was in the middle endings of its last cycle.

Now that President-elect Donald Trump will step into the White house, however, he's changing his tune.

"Now what we are planning on is an extension of that. So, maybe we had a 2 or 3 year runway. Now we are looking at 3, 4, 5, 6 years of improved economic opportunities," Sandbrook said.

U.S. Concrete is a major producer of concrete for commercial construction, residential construction and infrastructure building. The stock has rallied 30 percent since the election, as it is expected to be a large beneficiary to Trump's infrastructure agenda.

For years, Cramer has watched the evolution of cellphones transform from something that resembled a brick, to a blackberry and then to the iPhone. What he found interesting is that office phones haven't changed much.

DialPad is a private company that is working to transform the way businesses conduct communications. It has developed a cloud-based platform that lets its customers turn any device — smartphone, tablet, laptop —into a business phone. This includes voice, video, instant messaging and online meetings.

DialPad has picked up 25,000 paying customers, including Uber, Motorola and Netflix. Cramer spoke with co-founder and CEO Craig Walker, who explained how they went from working at Google to creating the company.

"We used to go and pitch this to Google apps customers, and we talked to them like 'hey wouldn't this be great if you had this for your business' and they all wanted it. So, that got us thinking 'hey if you're moving your business to the cloud for your email and everything else, your phone system should go with it.' So then we left to go do that," Walker said.

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

KKR & Co: "I'm a believer. I think it's good because we've got a market that wants to do some IPOs. We need new material."

OPKO Health: "In the end, I've been sticking with it from the low-single digits to the mid, and then it went the high teens and came back after that acquisition, but I still like it. Phil Frost [CEO] is a money maker and I still believe it. I believe in their tests, too. I think they're very good."