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Cramer Remix: Hold the obits — the mall is alive and well

  • "Mad Money" host Jim Cramer revisits mall retail and spots staggering signs of life from retailers like Abercrombie, Macy's and Urban Outfitters.
  • Cramer also sits down with the CEOs of Kohl's and Zoetis.
  • In Cramer's lightning round, he recommends his three favorite Chinese stocks.

Plenty of market-watchers have produced countless obituaries for the mall-based retailers, but on Tuesday, CNBC's Jim Cramer floated a counterargument about the space.

"As far as I'm concerned, it's a perception problem," the "Mad Money" host said. "The popular perception that the stores in the mall are dying is certainly not going to go away, but how many better-than-expected quarters do we need to see from mall-based chains before we conclude that reports of the demise of the mall-based retailers may be greatly exaggerated?"

After positive earnings reports from a host of mall-based stores including Zumiez, Abercrombie & Fitch, American Eagle, Williams-Sonoma, Ralph Lauren, Macy's and Urban Outfitters, Cramer wondered if the market might be misinterpreting the state of mall retail.

"I think we've reached a tipping point. There's too much good happening to keep writing off all the mall-based chains," Cramer said.

"Once we get just a few more closings and maybe a handful more of bankruptcies, it will be very clear that the mall retail business is back," he continued. "And many of the bargains here? They may be too good to ignore."

Nvidia, Twitter and the Tuesday sell-off

Jack Dorsey, co-founder and chief executive officer of Twitter Inc.
David Paul Morris | Bloomberg | Getty Images
Jack Dorsey, co-founder and chief executive officer of Twitter Inc.

As stocks sold off dramatically into Tuesday's close, Cramer knew investors were asking themselves a critical question.

"Was yesterday's rally an aberration, with today's sell-off being the real deal continuation of last week?" Cramer said. "Or was today's sell-off just part of some sort of overall retest that we need to expect after an exuberant Monday?"

For Cramer, zooming in on the sell-off's key contributors was the best way to get a handle on why the major averages halted their recovery.

"In all honesty, I think this market has become downright treacherous," Cramer said. "The best examples of [that] are Nvidia and Twitter."

Sell-off strategies: Why 'long oil' is wrong

Tech stocks sell off
Chris Hondros | Newsmakers | Getty Images

Cramer doesn't exactly have a rosy outlook on the future of the oil industry.

"You know what? Long term in the oil world's quite bad," the "Mad Money" host told a caller in a sell-off strategy session after Tuesday's market drop.

Cramer referenced his Monday segment on Wall Street's newfound hate of natural gas stocks, noting that the commodity seems to be peaking when it comes to heating use in the United States.

"I think that oil and gas are falling out of favor with new young portfolio managers," Cramer said. "So the answer is, if you have a ... 10, 15, 20 year horizon, oil and gas is going to be quite bad. So I would not own those stocks even though they look like value."

Kohl's CEO on Amazon partnership

Kevin Mansell, CEO, Kohl's
Michael Newberg | CNBC
Kevin Mansell, CEO, Kohl's

Kohl's budding partnership with Amazon marks the next leg of innovation for the department store operator, Kohl's Chairman, President and CEO Kevin Mansell told CNBC on Tuesday.

With another earnings beat under its belt, the Wisconsin-based retailer has turned its focus to bolstering its pilot program to sell Amazon products and accept Amazon returns in its stores.

In an interview with Cramer, Mansell said that allowing shoppers to return items purchased on Amazon at Kohl's stores "in a seamless way ... and then converting that traffic to Kohl's shoppers and purchases is a big idea."

The partnership with Amazon, which began in 2017, presents an opportunity for Kohl's to boost foot traffic at its 81 participating locations in Chicago and Los Angeles, Mansell said.

Zoetis CEO: The time of the companion animal

Veterinary technology company Zoetis used to generate most of its growth from making treatments for livestock, cattle and other farm animals.

But "now is the time of the companion animal," Zoetis CEO Juan Ramón Alaix told Cramer in a Tuesday interview.

In 2017, the company almost doubled its operating cash flow, with its companion animal products seeing 15 percent sales growth.

This year, Alaix said that Zoetis expects to generate more than $500 million in sales from just two of its leading products that treat itching in dogs and cats.

"There is nothing working today for cats, and if we bring the solution to the market, it will be a significant opportunity for Zoetis and will bring a significant tool for veterinarians," the CEO said.

Lightning round: Top 3 Chinese stocks

In Cramer's lightning round, he rattled off his take on some callers' favorite stocks:

Alibaba Group: "Alibaba and Baidu and Baozun are the three Chinese stocks I think have the greatest future that trade here. Tencent doesn't. And I bless buying any of those [three]."

Berkshire Hathaway: "Just buy Berkshire Hathaway. Just buy it. Now, the reason why GE was up was rumors that Berkshire is taking a stake in GE. We do not know if this is true, so I cannot comment and say buy GE or sell Berkshire on that news because there's no way of knowing if it's true or not, even though many people took action today."

Disclosure: Cramer's charitable trust owns shares of Nvidia and Amazon.

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