If the Fed cuts rates, it is an indispensable stock

CNBC 's Jim Cramer said Friday that the steel cycle was spinning and that Nucor would be the best way to play in the market.

In recent weeks, the big steelmaker has twice raised the price of flat rolled steel that stood at $ 80 a ton. That's how the group tends to start, said the host of "Mad Money."

"It's the ascending cycle. I was waiting for it and this should allow gigantic steel producers like Nucor, the largest in America, to earn a lot of money when that goes, surprising both badysts and the market, "he said.

The service centers, he explained, found that they were saturated with steel when the economy began to slow down at the end of 2018. Companies reacted to President Donald Trump's decision to spoil tariffs on imports from China and stem the flow of cheap steel in the country. , by building stocks. Cramer said too much supply later in the year led to falling steel prices.

However, the inventory has been developed over the past six months, as evidenced by the rise in Nucor's core steel prices, he continued. Nucor also builds more plants to prepare for high-grade steels, he added.

A reduction in the Federal Reserve's interest rates, expected by many Wall Street investors, will significantly boost the economy, said the host.

"That's why Nucor bought here, and if we get a few rate cuts, it will be an indispensable stock," Cramer said. "The reward risk of Nucor has been improved, making it the best way to play the new Fed-induced steel cycle approved by the president, which I think is starting."

Get all his thoughts here

Wall Street is gearing up for a big week of revenue that will better understand the apparent economic slowdown, Cramer said.

During Friday's session, the Dow Jones Industrial Average lost nearly 69 points. The S & P 500 and Nasdaq Composite also lost 0.62% and 0.74% respectively as the market digested a full week of the latest quarterly results. The last two indexes recorded their worst weeks since May.

"You have to understand that we are about to start the busiest week of the year in terms of industrial earnings," said the animator of "Mad Money". "We will be inundated with new information, and if you can not handle all the noise … this could be the perfect week to take your summer vacation."

See what Cramer expects from his earnings next week

GrubHub is too hard to own, even though the online food delivery company is publishing a surprisingly good quarterly report in the coming weeks, Cramer said.

Amazon, the notorious industry hustler, shut down its four-year-old Amazon restaurant-restaurant project in June that was providing plates to premium members in 20 US cities.

"The bottom line is that Amazon is freeing itself from the food delivery space – it does not matter," said the host. "GrubHub is still facing fierce competition – I think it's far too risky to own here."

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During Cramer's flash game, the host "Mad Money" comments on his choices regarding the appellants' stock choices.

Workiva: "There are now so many cloud-based mobile companies that I need to take a break and work on that."

Tegna: "Right now, I do not really want to become bigger in the entertainment, television,"

Ally Financial: "It's a financial situation that is going very well. It's funny because the auto market is not that hot, but they are well managed. Dude Bank of America, but I will not disagree. This one is fine. "

Disclosure: The Cramer Charitable Trust holds shares in Amazon and JP Morgan Chase.