Cramer's 'Mad Money' Recap: Tomorrow Is Another Day

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NEW YORK ( TheStreet) -- The bears may have won the game today, but the score can change dramatically tomorrow.

Jim Cramer told "Mad Money" viewers how the markets arrived at such a terrible loss Wednesday.

Cramer said each day the markets start at zero and head up or down based on the macro news and the micro earnings releases from individual companies. In Wednesday's case, the trading action started last night when Yum Brands (YUM) reported stellar growth around the world growth, including China, and also noted an improving U.S. That news was negated by negative news from Cummins (CMI) and tempered expectations from Alcoa (AA) .

Finally, there was Chevron (CVX) , a stock Cramer owns for his charitable trust, Action Alerts PLUS, which was hurt by a hurricane and a refinery fire.

Cramer said before the trading day even started, the markets were behind by 10 points, to use a football analogy. Then came earnings from Costco (COST) , which helped a little, but only until Avnet (AVT) shocked the Street, putting the market's changes down by two touchdowns.

Then came Wal-Mart (WMT) , with a positive analyst day, and Apple (AAPL) , another Action Alerts PLUS holding, that was rebounding off its lows. These two stocks helped regain some of the market's losses.

But in the end, Cramer said that the strength in the retail stocks was not enough to undo the weakness in the oils, industrials and machinery stocks that were being hit by Cummins, Alcoa and Chevron, which is how the markets continued to slide into the red throughout the day.

Fortunately, tomorrow is another day, Cramer concluded, and the score can change dramatically.

Growth Stories

For the next installment of his "Anointed Growth Stocks," Cramer featured two retailers, Ulta Salon (ULTA) and Tractor Supply (TSCO) . Both companies are regional to national growth stores, said Cramer, and Ulta is up 48% for the year, while Tractor Supply is up 40%.

With 489 stores delivering same-store sales up 9.3%, Cramer said Ulta has high hopes for the 100 new stores it plans to open next year. The company already commands 2.8% of total beauty product sales in the U.S. and is growing a 25% a year.

Tractor Supply is larger, with 1,100 stores and plans to open 90 more next year. The company expects it can ultimately have 2,100 locations, or 85% more than today. The company has decent same-store sales growth and little overlap with the likes of Home Depot (HD) or Lowe's (LOW) . Tractor Supply is growing at 18% a year.

With shares of Ulta trading at 29 times earnings and Tractor Supply trading at 23 times earnings, Cramer said both of these stocks are expensive, which is exactly why the momentum traders will love them until the end of the year. He said these companies are a trade, not an investment, although neither have any overseas exposure but do have solid management teams.

Executive Decision