Cramer's Stop Trading! The Guys Who Really Run This Country (5/16/11)

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 |  Includes: COF, ETN, FE, JOY
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday May 16.

Joy Global (JOYG), Eaton (NYSE:ETN), Capital One (NYSE:COF), FirstEnergy (NYSE:FE)

Joy Global's (JOYG) acquisition of LeTourneau Technologies shows that the rumored end to the industrial cycle is greatly exaggerated. Industrials are showing that emerging market growth is a secular trend. M&A activity in the sector should prove to skeptics that the news is good. Cramer praised Eaton (ETN) CEO Sandy Cutler as someone who is "trying to figure out where he should next dominate...these are the guys who really run the country."

Since Capital One (COF) is so levered to credit cards, when it reports a decline in delinquencies, it is time to rethink the entire credit card space. Cramer sees the decline in delinquencies as a bullish indicator for mortgages, since people who can't pay their mortgages would also fail to pay off their credit card debt. However, Cramer would not buy bank stocks. It is a "new world" for this sector, and the only ones that will thrive are those that bow down to the Consumer Protection Agency.

With FirstEnergy (FE) going up, some are worried about recession, but Cramer thinks the moves are indicative of rising power demand, not an economic decline. During the recession, First Energy actually saw lower power usage. The uptick in the company is not related to the issue of interest rates.

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