- "Mad Money" host Jim Cramer warns that it's foolish to fight the bears when it comes to the homebuilders.
- Cramer also sits down with the CEOs of Carnival Corp. and Global Payments.
- In the lightning round, Cramer encourages investors to stick with the stock of Shopify.
Even though the homebuilding stocks bounced on Wednesday, CNBC's Jim Cramer warned that the market has turned on the sector, and to him, that means more pain ahead.
"If you own a stock like Toll [Brothers] here, well, you're fighting the Wall Street playbook," the "Mad Money" host said. "That playbook says to sell the homebuilders when rates are rising, end of story."
Shares of Toll Brothers lost 9.5 percent of their value Tuesday after the company's second-quarter earnings report missed estimates. But even as Cramer said a booming economy could help the homebuilder's recover, he expected the market to assume otherwise.
"Most investors will just keep waiting for something bad to happen anyway," he said. "All I can say is you have to let Toll's stock come down before you can try to take a stand. What can change its direction? Three things: time, lumber and labor costs. You could get a reversal in lumber, labor's iffy, but when it comes to time, that means you have to wait until the next quarter."
"In short, as much as I like Toll Brothers, the bears clearly have the upper hand right here and it would be foolish to fight them tooth and nail," Cramer continued. "[That's] why we say wait for Toll's stock to come down to lower levels before pulling the trigger."
"[Investors] went nuts for fixer-uppers and ... punished consistent companies that are actually well-run," he said, pointing to one particular fixer-upper whose gains jumped out at him: jewelry maker Tiffany & Co.
Shares of the once-scorned Tiffany roared over 23 percent after the company delivered its first-quarter earnings report, with same-store sales and jewelry demand far exceeding expectations.
"They've made extraordinary strides at improving their execution," Cramer said.
But one thing in particular stood out to Cramer in terms of Tiffany's turnaround: the appointment of former Bulgari and Diesel executive Alessandro Bogliolo as its new CEO.
"In the stock market, emotional decisions tend to be bad decisions," the "Mad Money" host warned. "So we need to do everything we can to check our emotions at the door. And that's why, every week, we like to play off the charts."
For Wednesday's charts, Cramer turned to technician Marc Chaikin, the founder and CEO of Chaikin Analytics and the inventor of key technical tools like the accumulation-distribution line, the Chaikin volume indicator, the Chaikin oscillator and the Chaikin Money Flow.
Chaikin's stock-picking formula uses three indicators: the Chaikin Money Flow, which measures buying and selling pressure in a stock; the Chaikin Relative Strength, which compares a stock's performance with the over the last six months; and the Chaikin Power Gauge, which uses 20 different fundamental and technical inputs to produce a bearish or bullish reading.
This time around, Chaikin's formula flashed particularly bullish signals with the daily stock chart of Akamai Technologies, a cloud play that helps companies get content like streamed video online securely and glitch-free.
From the deck of the Carnival Horizon, docked at New York City's Pier 88, Carnival Corp. CEO Arnold Donald told CNBC that, eventually, his cruise line's U.S. business would shy in comparison to China.
"China, someday, will be the largest cruise market in the world," the CEO told Cramer. "It's in their five-year plan, so if cruising is in their five-year plan, ... they're going to make it happen."
Passenger volume from China has been increasing sharply over the last five years, with cruise capacity increasing across all metrics, according to a 2017 report from Cruise Lines International Association and Chart Management Consultants.
The same report pegged China as the "main driver of passenger growth in Asia," with Chinese customers accounting for two-thirds of the region's passenger volume in 2016.
"We just want to be a part of that," Donald said about China's anticipated growth. For more on his industry outlook, read about and watch his interview here.
Double-digit organic growth doesn't come easily, but Global Payments CEO Jeff Sloan, whose company achieved it in its latest quarter, tied it back to international strength in an interview with Cramer.
"What we're most proud of and probably one of the secrets about Global Payments is that a quarter of the business is outside the United States," Sloan said Wednesday. "That's in Europe and that's in Asia."
But Global Payments doesn't cover Europe wholesale. Its fairly selective business functions in smaller countries like Austria, the Czech Republic and Romania in Europe, and the Philippines in Asia. On some metrics, Sloan said that the Philippines is seeing faster growth than China.
"We have 28 percent of the acquiring market, of the payments technology market, in the Philippines with our partner. So that's what's driving the outsized growth," Sloan said.
In Cramer's lightning round, he flew through his take on callers' favorite stocks:
Teva Pharmaceutical Industries Ltd.: "You know what? I have to say this: don't buy. It's had a nice comeback. I think the bottom's been reached. But that doesn't make me want to pull the trigger."