Jim Cramer's Real Money Radio Recap 6/2

Recap of Jim Cramer's radio show on Friday June 2. Click on a stock ticker for more analysis:

General comment: Seesaw Stock Market

Although stocks have been volatile because of uncertainty over whether or not the Fed will continue to raise interest rates, fears of recession, and global conflicts, Cramer says that he is still bullish on the market. "This is soft landing heaven," he said, "I'm not going to run when I'm getting what I want, which is commodities weakness and earnings strength coupled with macro or big economic data -- that is not bad."

Retail Rave: Walgreen (WAG), Federated (FD), Target (TGT) and Sears (SHLD)

In spite of the many obstacles to consumer spending, such as debt, higher interest rates, rising gas prices and a sluggish housing market, retailers, with the exception of the low-end stores, did "amazing business" in May. Walgreen (WAG), reported a great quarter, and Cramer believes that the general retail boom will benefit Federated (FD), Target (TGT), and Sears (SHLD). Cramer credits consumer confidence on tax cuts and the increasing popularity of fuel-efficient Asian cars, which means savings at the pump.

CEO Wages: Bob Nardelli (HD) and William McGuire (UNH)

While Cramer praises his pet company, Sears (SHLD), for paying its CEO, Eddie Lampert, according to the performance of the company's stock, he believes that a truly excellent CEO is hard to find, and that critics who balk at the high wages of Home Depot (HD) CEO, Bob Nardelli, and UnitedHealth (UNH) CEO, William McGuire, don't appreciate that, when it comes to CEOs, you get what you pay for. Cramer credits Nardelli with giving Home Depot, which had been losing out to Lowe's (LOW), a complete makeover, by sprucing up its stores and improving its customer service. While United Health has suffered from a lot of criticism, it has "snuck back", and Cramer give credit to CEO William McGuire for the company's beating the S&P 500 and generating a lot of money for investors.

Bullish calls:

Schlumberger (SLB): Cramer suggests opting for oil, rather than other commodities, which are affected by interest rate hikes. While many drillers have been either rising or falling, he recommends SLB, beause it is a "best of breed" pick.

Ciena (CIEN): Cramer notes that Ciena keeps growing, and calls it one of the best plays in the clash between phone and cable systems. He also noted that the large phone companies are shelling out a lot of cash to develop a new fiber optic system, and Ciena will ultimately benefit.

GlaxoSmithKline (GSK): Although Cramer has not been touting drug stocks lately, he is bullish on GSK because it is buying Pfizer's (PFE) consumer products division, which should be an improvement, because, according to Cramer, GSK is better at marketing in PFE.

Schering-Plough (SGP): Cramer owns this stock for his portfolio and expects it to make a big turnaround soon.

Citigroup(C) and Bank of America (BAC): Cramer notes that these banks have 4% yields and are good buys.

Chesapeake Energy (CHK) and Western Gas Resources (WGR): Cramer says not to run away from natural gas, and that these two companies are good picks.

Neutral/Bearish calls:

Allegheny Technologies (ATI): This was Cramer's stock of the year when it was at $30, but since the price is nearly doubled, Cramer says that ATI is "played out."

Saks (SKS): Cramer says that this stock is played out, and to swap into Nordstrom (JWN)

Bank of New York (BK): Cramer criticizes BK for being more concerned with payment services than banking.

More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.