"When a company like Caterpillar or 3M reports a magnificent earnings quarter, this market takes what they say as gospel and assumes that the global economy has gotten stronger," the "Mad Money" host said. "If economies around the world are in better shape, investors have no use for steady-eddie drug stocks like Johnson & Johnson or Eli Lilly, no matter how good they are."
Caterpillar shares closed up nearly 5 percent on Tuesday, while 3M shares boasted a nearly 6 percent gain. Conversely, Johnson & Johnson's stock closed down almost 1.4 percent and Eli Lilly shed more than 2 percent.
To explain the seemingly rash action, Cramer ticked down the four factors that caused money to flock to the industrial stocks.