Cramer hates talking about bonds. He knows they are boring, but on a day when the averages vaulted higher, bonds are all that matter.
"These days when rates go higher, it's game on for a host of stocks, particularly the ones that have languished as of late, like the cyclicals, the retailers and most important, the banks," the Cramer said.
Bonds are simple. When they are sold in large quantities, interest rates go higher. When they are bought aggressively, interest rates go lower.
Now, President Donald Trump just became a new outlier, Cramer said. When Trump seems to be in authority and talks about his tax plan, and investors start believing that the economy will heat up and sell bonds, he sends interest rates higher.
After all, if Trump gets his way, inflation will surge and money managers will look like idiots for holding bonds. Thus, the sellers are trying to get ahead of that scenario occurring.
To fully understand how the stock of private-label king TreeHouse Foods surged more than 12 percent on Thursday, one must take a look at its history with Conagra Brands.
TreeHouse has a long history of making smart acquisitions. However, some investors were displeased a little over a year ago when the company announced it was buying the private-label cereal business called Ralcorp from Conagra for $2.7 billion.
That was a lot less than what Conagra paid for it in 2013, but the view of Ralcorp was that it was not a winner. So, when TreeHouse last reported three months ago, the results were light, and shares of TreeHouse fell.
Hence, it was a huge surprise for Wall Street when TreeHouse knocked earnings out of the park on Thursday. CEO Sam Reed said that the company realized it was too focused on the carve-out from ConAgra in the previous quarter.
"Once we realized that was taking people away from their day jobs we got that group back and in a fury they went about their business," Reed said.