Segment 1: Balancing Act
Cramer said that this morning's trading was controlled by more bearish news from Europe, but the afternoon was led by more bullish news from the US. He thinks the afternoon's trading will be the norm in 2012, unlike what happened in 2011.
Cramer took phone calls on the following stocks:
Bank of America (BAC): Cramer wants to own US Bancorp (USB) or Wells Fargo (WFC) instead.
Segment 2: Bouncing Back
Cramer recommended Newell Rubbermaid (NWL) because it has lowered expectations to a level it can beat, it has improved its balance sheet, and the stock is cheap. He said to wait for a pullback before investing, but he is bullish.
Segment 3: Show Boat
Cramer said that it looks like the wealthy are spending more money on discretionary purchases, so he is bullish on luxury spending plays. He said that he likes Brunswick (BC) because demand for their boats is coming back, and the company cut costs during the recession, so it will see higher profits now, and the stock is cheap.
Segment 4: Lightning Round!
Qualcomm (QCOM): Cramer is bullish on this stock.
Terex (TEX): Cramer said he would rather own Caterpillar (CAT).
Guidewire Software (GWRE): Cramer needs to do some homework on this stock and come back to it.
Polycom (PLCM): Cramer is bearish on this stock and said to buy Cisco (CSCO) instead because it is cheap.
Under Armour (UA): Cramer is bullish on this stock.
Northern Oil and Gas (NOG): Cramer likes EOG Resources (EOG) or Continental Resources (CLR) better, but he thinks all of them are overpriced right now.
IBM (IBM): Cramer is bullish on this stock.
Ares Capital (ARCC): Cramer said to buy Annaly Capital Management (NLY) instead.
Segment 5: Interview with KLA-Tencor (KLAC) CEO Rick Wallace
Cramer said that the semiconductor is going great right now, and this company reported a blowout quarter sending the stock higher. He wanted to find out more about the company, so he talked to the CEO, and he then said that he is bullish on this stock.
