Jim Cramer says strong earnings from “real businesses” are driving the “real economy”

Despite all the attention on the Magnificent Seven, CNBC’s Jim Cramer said strong financial results from companies in the “real economy” were responsible for Tuesday’s stock rally.

“We got tremendous numbers from real companies,” Kramer said. “And I think we should celebrate that so many companies that are not connected to data centers and artificial intelligence are doing so well.”

The Magnificent Seven is made up of mega-cap tech companies. alphabet, Amazon, apple, meta, microsoft, Nvidiaand teslaaccounting for approximately 35% of the total. S&P500.

While a large concentration of these AI-driven companies can give the impression that the market is “dangerous” due to their large valuations and volatility, Cramer said these “high-risk speculative” stocks should not be the only indicator of market health.

Mr. Kramer on Tuesday pointed to “incredible returns” against a relatively strong market. Dow The stock closed up .47%, and the S&P 500 remained relatively flat despite being heavy on tech stocks. Nasdaq It fell by 0.16%.

Aerospace and defense companies RTX Corporation reported explosive quarterly profits, which Kramer attributed to the company’s complex military systems. ge aerospace The company also achieved “incredible numbers” in commercial jet engines and aircraft services last quarter.

Kramer highlights 3M The company was recognized for innovating 70 new products during the quarter, an increase of 11.86 points or 7.66% for an “excellent” number.

general motors Cramer said it was a “great quarter” showing that internal combustion hybrids are more profitable than electric vehicles, especially amid President Donald Trump’s “laissez-faire attitude” on emissions.

Life sciences and diagnostics companies Danaherrose nearly 6%, but it is finally recovering after a long drought, and profits are positive, indicating an even better year ahead, he said.

coca cola Kramer credited CEO James Quincey with leading the company and delivering new products that sold well and exceeded expectations.

“When RTX, GE Aerospace, 3M, General Motors, Coca-Cola and Danaher all do well, you know something is going well,” Kramer said.