Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday October 5.
Caterpillar (CAT), Fedex (FDX), Joy Global (JOYG), Wells Fargo (WFC), Bucyrus (BUCY), Brocade (BRCD), Hewlett Packard (HPQ), Oracle (ORCL), Cisco Systems (CSCO), IBM (IBM)
The market seems to have shaken off the poor jobs number, but too quickly, as stocks which depend on strong employment are rallying. Cramer said FedEx's 2% gain was "wrong." However, bullishness on Caterpillar was not incorrect, since the company has strong international exposure; its price increases are an indication that the rest of the world is recovering sooner than the U.S. Another machinery stock, Bucyrus, was up 4% on Monday.
In spite of its stated intentions to use greener fuel, China will still need coal to keep up with its huge energy needs. This is good for Joy Global, said Cramer.
Goldman Sachs prefers larger banks over regionals and Cramer would play this news with Wells Fargo; he thinks Goldman Sachs knows WFC is going to report a strong quarter.
Brocade is putting itself up for sale and may attract potential buyers Hewlett Packard, Oracle, Cisco and IBM. With all the competition, Cramer thinks Brocade is going to be bought for a premium.
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