Jim Cramer looks at the market's green spots during the sell-off

My mission is simple. To make you money. I’m here to level the playing field for all investors. There’s always a home market somewhere, and I promise to help you find it. May have money. Starts now. Hey, I’m Kramer. Well, let me have money. Welcome to Kramer. I’ll do with my friends. I’m just trying to make it some money. My job is not just entertainment. Educate. Teach you. So call me at one 807.3 CBC or tweet me at Jim Cramer. It takes a special kind of stock to do well when the economy’s slowing, while inflation just won’t quit. I’m typically got this weak gross domestic product number, just 1.6% growth anemic and a surging inflation number connected to the GDP is up 3.7%. Bad combo, which is why the Dow tumbled 375 points. Has to be lost .46 cents. NASDAQ. Trump dropped .64%, but you got to tell you it was much uglier at one point today, the Dow was down, Almost dumb where it went out, as we heard all day, about the slower growth and higher inflation, and that meant the dreaded term stagflation, and that environment is toxic. On top of that, one of the market’s greatest leaders, meta platforms, got crushed today. I mean just annihilate. Not because of its earneys, which were stellar, but because it committed a huge amount of spending, most of it directed toward generative artificial intelligence. What’s bad for the meta goose though, is good for the NVIDIA and Broadcom Gander, which is up 29 points and 37 points respectively, as they’re going to get a huge chunk of capital expenditure budget. I still believe in meta. More on that later. In the end, this decline was all about a slowing economy and mixed with persistent inflation, which drove up bond yields and brought sellers out throughout the day. So you got to ask yourself, who can win in this environment? Are we done? Do we just fold up shop? No, we just have to work harder. Let’s look at today’s sparse winners first, do they’re right in our faces. Let’s talk about Microsoft and Alpha, both of which are flying. And after hours trading, Microsoft beat the espants for every major line item with 17% revenue growth, which is incredible. 20% earning growth. That’s looking good. Their Azure cloud business growing nicely again, I much better than expected 30%. Their integration of artificial intelligence seems to be helping them sell enterprise software, which is Microsoft’s bread and butter. These AI workloads are incredibly strong for them and they are seeing stability even in the PC market. Yes, it’s stabilizing a lot of stocks you can buy. If that’s the case, it had been pretty awful. Nice quarter. As for Alphabet, wow, they finally did it. It was a magnificent set of numbers. Now what are the stocks so strong Searching YouTube core businesses were much, much better than expected. Hey, they finally broke out some numbers for YouTube and they were spectacular AI business. Incredible. Google Cloud was great, growing at 28.4%. Clip is up with the other big boys authorized to get this $70 billion buyback shrink share count, directly boosting the earnings per share and Hallelujah, a dividend. All right, so it’s only $0.20 doesn’t matter. It’s a great sign and the market loves it, unlike meta. While they did say they would be investing heavily to build their AI business, they also said they’ll be expanding margins as they they do so, which is why Outfit still gets credit for its great results. I haven’t seen 1/4 like this. I can’t even recall one where they delivered on everything we wanted. It’s like they listened to the show. Next, there’s Merck. All right, the secret here is key treated. It’s the most revolutionary anti cancer drug in history. Key Twitter sales came in at 6.9% billion, 6.9 billion one quarter. That’s up 24% in constant currency, which is astonishing as Merck just keeps finding different types of cancers that can be treated by this thing. Of course, drug patents don’t last forever, which is why Merck’s been buying up new medicines to combat both cardio and immunological disorders. This stock, which gave you a 3% gain today, might be perfect for the current moment, given how it raised revenues, raised margins, ensured a terrific new drug pipeline. I got to go out on a limb here a little bit and Rob Davis is so great to see you. But I think they could make a lot of cancers, chronic diseases that would otherwise be fatal. 4th you got to take it with this Union Pacific. I mean here’s a railroad that this had been this and now it’s this one perfect set of numbers mainly because it’s so much better run now that CEO Jim Venice running the show. This guy started as a brakeman, by the way, 40 years ago. Don’t you love that in America? Last summer, under pressure from an activist hedge fund, the board picked then I protege of the late Hunter Harrison who practiced what’s known as precision scheduled railroading PSR. This is a method of railroading. It makes more money by getting the trains to run with maximum efficiency. Yes. Trains on time. Even a slower economy in Pacific still can deliver an excellent self help story. Hence the 11 point rally. It was spectacular and there’s a real deal. 5th we’ve been bemoaning the performance of the gold miners here versus the underlying commodity. But this morning Newmont Newmont Reminders not all gold companies are created equal. Last year that Newmont bought Newcrest and I figured just be one more sad sack gold deal. Almost all of them are bad. Were bad? Nope, it was able to produce much more gold than expected. Lower costs and that’s how you outrun the economic backdrop. Faster revenue growth and lower expenses gives you a 12% rally. Six will put me shut the lights out again. Maybe people are used to it. It was uploaded at the beginning of the day and started coming in, but still finished positive. It’s right one of the great ways of cruising with record bookings, so much was good here from the return of high yielding Chinese customers. They’re back to the fact that the repeat rate here is 30% higher than it was in 2019. There are some powerful secular themes that can trump the noxious backdrop and travel fits the bill. Remember Mercury Express gave us those amazing travel statistics previous Friday. Well it’s looking at Royal Caribbean’s got the same great thing going seven. And Speaking of resurgence to the Chinese consumer, we heard from Boston Scientific, great medical device company that the China market’s now roaring with strong double digit growth for seven of their eight business units. Who would think that some that China is coming back for some companies. This company, by the way, is prolific. It launched 90 new products, give you an astonishing 13% growth rate. What I like best about Boston Scientific, it’s just crushing the rest of its cohort with ease. And they’re doing it through pure innovation, something they can’t be contained by slowing GDP growth. Now here’s one I don’t talk about enough Dover. I knew Dover as a sleepy industrial company, which means, frankly, I didn’t know it at all. The new Dover’s reinvented itself moving aggressively into get this That some companies are so darn smart. They moved into clean energy, engineered products for the data center, aerospace and biopharma. All four verticals are in insane bull market mode. I think the analysts are just now catching up the reality like they that Dover’s a very strong company. The order grows terrific. The sales are coming in at the high end and by the way, they’re like not promotional and and they’re humble. That’s a nice combo. All right. How about carrier just being a humble. We’ve had CEO Dave getting along a bunch of times. His company’s located in Palm Beach. Not bad, huh? Anyway, you might think that his heating, ventilation, air conditioning business would be hostage to the broader economy. You would be wrong. Wow. Commercial HVAC was never so interesting. Something astounding mid teens, thanks to large part to the need to cool down those yes, data centers. I mean, they’re putting them up and these guys are cooling them off. Gatlin delivered 280 basis points of margin improvement. That is extraordinary. Closed on a key acquisition of Eastman European which dominates the heat pump business. Europe desperately needs more heat pumps to adjust to a warmer climate. They they’re much better for the sky. In order to pay for Weisman, Carrier sold 39 core business lines. A fourth on the way out puts them in a great place to be able to acquire someone. Or even better, how about a monster buyback. Caterpillar, mist and beverage. So you think, well, wait a second. It must be hurting heavy machinery. No, you’d be wrong. There to United Rentals. Star of the show equipment rental company. Lever more to fleet productivity and the sale of used equipment. Both were terrific. The way so many people have asked me if there is an investment in the Baltimore rebuild, the answer is United Rentals. So doing almost everything about it, I’m saving the best for last Okay. We wanted to get one, but I think they’re out of it. Chipotle, every line of Chipotle from expenses to revenues, same store sales to earnings was better than expected. The reason? The man they have what people want. Now how do you know that? How about because you know that Chipotle has this limited time only. I always call that LTO. Is it so hard to say? Limited time only, limited time only Offering of chicken out by store that is so popular? Get this. That the company’s urging its associates to not order chicken dishes for themselves because there isn’t enough left for the customers. That’s incredible. Now the most impressive statistic. California put through a steep minimum wage boost to 20 bucks. So Chipotle had to put through a six, 6 to 7% price increase to pass on the cost. Do you know the sales weren’t even dented? I mean, holy cow, that’s extraordinary. When we’re looking for reasons to buy a stock in this environment, we want copies to generate constant self help. Chipotle does it by improving throughput. How many people they can service, say every 15 minutes was out of the way. The way they measure it, especially at lunchtime, it just gets better and better and better. That’s got nothing to do with GDP or inflation modes. And now I know how they’re going to get the $4 million average unit volume because they are surging bottom line, That kind of self help is the antidote to the big picture worries that I heard about all day today, which made me feel like, oh, maybe it’s not worth picking stocks. That would be wrong too. OK. I expect the bond market will be our enemy for a little bit. It’s probably going to get worse. I’m not even ruling out stagflation. I’m not even saying the Magnificent Said will never ride again. I am saying this always like at the end of the show, You know what I say? There’s always a bull market somewhere, and even when this market’s down, it gives you some pretty darn good stocks to buy. House of Pleasure, Jonathan in California. Jonathan. Booyah Jim. Booyah Jonathan. What’s up? First time. Long time. All right. I like that my best friends and I are huge fans, and you’ve even inspired us to start a mad money group chat. Get out of town. Put me in it. Regina Gilman, my second Bruce. Right now, she’s trying to get into the group chat, trying. She’s struggling. All right, what’s up? My question is what impact could future Fed interest rate adjustments have on the broader banking sector? And should we buy, sell or hold JP Morgan? All right. JP Morgan’s terrific. The stock was down very big. Jamie Dimon, of course, came on, and he had some negative things to say. I got to get that guy to cheer up. I mean, he’s kind of like an, I don’t know what’s with him, but Charlie Scharf doesn’t need cheering up. That’s why I suggest you by Wells Fargo, which is the exact right bank for this environment, the one that you and get me on that chat and get me in the chat. I’m, I’m very good. I mean I have 2.1 million people who hate me on Twitter. But it’s all right. Kevin in my home state of New Jersey. Kevin. Hey. Yeah. Hi, Mr. Kramer. How are you? I’m good. Kevin, what are you up to? What are you on the Garden State Parkway? I have you. Where are you? Yeah. Yeah, I am. Yeah. You don’t mind? Yeah. But I I just got pulled over. Yeah. Is it is it still a goodbye? And I’m semiconductor. OK. I’m so glad you asked me that because Renee Haas has told me periodically. Jim, you forget how good we are. You forget what we’re doing. I’m going to throw arm in. And so I was waiting for it to get to the to 80 directive re recommended it’s in 97. So Kevin here what you do, I would buy a quarter of position here and then every five down until it’s finished. That’s how I would buy it. I think Garma’s greatest thing, Renee, Hans is great. I think the data center is great and they’re in that big time. All right. Companies that are generating self help are the antidote to what’s ailing this economy. And I think you need to stay on the lookout for those names while the bomb market remains the enemy. How about that Chipotle? Don’t order the chicken because you got to say something. Guys like me with Alpha store but market the barbacoa that’s supposed to be very good made money tonight. Tractor Supply was a glimmer of green in today’s ugly tape. So what stood out? The cup is quarterly important. Let’s talk the hell long then from trash to treasure. Could WM be a winner for your portfolio. Don’t miss my poster, he’s exclusive. And there’s no Tractor Supply without a tracker. So why don’t we go and speak to one of the large space AG Co See how they stand. So stay with Kramer. Don’t miss a second of Mad Money Follow at Jim Cramer on X. Have a question? Tweet Kramer hashtag Mad Mentions Send Jim an e-mail to [email protected] or give us a call at one 807 Four Three. CNBC. Miss something? Head to madmoney.cnbc.com Yeah.