Even with employment rising, Jim Cramer said money managers are struggling to understand why consumers aren't spending their paychecks on the traditional retailers, restaurants and real estate.
"The big-time portfolio managers don't see any real strength in consumer spending," Cramer said. "They're just baffled because they know that employment is way up and more hiring is supposed to translate into much better than expected service revenues."
The " Mad Money " host said the answer is simple, and it's hiding right under money managers' noses. Cramer said consumers are chained to two things: their phones and their couches.
Cramer argued that rather than spending money in traditional venues, consumers are dishing out large chunks of their paychecks on smartphone payments. As a result, most of their purchases become tied to their phones, which they use to order food, shop online, play games, stream content, and browse social media.
"If you follow that trail you'll know the consumer hasn't gone away. She's just not being counted because she's hiding right in front of your nose, in the last place the professional money managers would think to look," Cramer said.
Cramer also took a look at some tech titans that have been finding their footing in their fast-growing sector, focusing on Oracle (NYSE: ORCL) and its push into the cloud.
"It's Oracle's turn to be hailed as a changed company that's accelerating its cloud business and migrating its existing customers, while aggressively poaching clients from its competitors," Cramer said.
But Oracle's not the only one making breakthroughs in tech – it is joined by Intel, Cisco, and Microsoft as the giants reassert their dominance in the space by ramping up innovation in big ways.
"Oracle, Cisco (NASDAQ: CSCO), Intel (NASDAQ: INTC) and Microsoft (NASDAQ: MSFT), the old four horsemen of the tech apocalypse, are coming back," Cramer said. "They had all slipped up. But they always preserved their balance sheets, they always recruited smart people, and they always were competitive. Now they're back, and all four of their stocks are buys."
One Trump-related buy that caught Cramer's eye this week was manufacturer Fastenal (NASDAQ: FAST), a maintenance, repairs, and operation supplies distributor that has blown up since the election.
Cramer attributed Fastenal's recent success to a few trends: industrial production and manufacturing orders picking up, deregulation coming from Washington, and manufacturing inventories getting smaller, which could give Fastenal more pricing power
"This is more than just a Trump stock," Cramer said. "It's a metaphor for exactly what's working in this economy right now, and I have to say that I like it."
And as the economy improves, more and more companies warm to the idea of going public — like Thursday's Canada Goose (Toronto Stock Exchange: GOOS-CA) IPO, which marked the second-biggest IPO of 2017 so far.
Cramer spoke about the high-end outerwear producer, saying there's much more in the pipeline for Canada Goose than expensive winter wear, pointing to the company's reputable brand, commitment to quality, and various growth opportunities.
"Combine all of this info … and you've got a company with accelerating revenue growth, rising margins, and genuine profitability, a powerful winning combination that we rarely see among new IPOs. If Canada Goose can keep executing like this then I wouldn't be at all surprised if the stock ends up having more upside," Cramer said.
In Cramer's lightning round, he touted two caller favorite stocks:
Wells Fargo & Co (NYSE: WFC): "We like Wells Fargo, especially every single time when they reveal that they might be clawing back something from all that mess that happened. They did that today. Best-performing bank stock, [my] charitable trust owns it."
National Oilwell Varco (NYSE: NOV): "I think that when this GE-Baker Hughes deal is done, the first thing they do is they buy National Oilwell Varco. I want you to hold onto it."
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