Cramer again reiterated his belief that the housing markets have bottomed. In addition, housing now seems to be appreciating in value. Cramer believes this will lead to a positive turn for both KB Homes and Lennar. This recommendation was a change of course for Cramer who said just last month that he would stay away from homebuilders Lennar and KBH despite fair numbers because of stiff competition from foreclosures. “There’s just no money being made by these homebuilders,” Cramer said. This decidedly bullish shift helped both stocks gained over 6% on the positive recommendation. 

Philip Morris shares gained 4.9% after Cramer called the tobacco manufacturer a “quintessential growth stock”. Cramer likes Philip Morris overseas growth opportunities even if sales are sluggish here in the U.S. He also loves Philip Morris’s nearly 5% dividend. 

Other Cramer bullish stock picks: 

First Merit (FMER: 16.55 0.00%) gained 5.2% – “Listen…they’ve done everything right…to the victor goes the spoils.”

BHP Billiton (BHP: 80.73 0.00%) rose 3.3% – After Cramer reiterated that he likes the stock.

Chevron (CVX: 106.76 0.00%) jumped 3.0% – “Now you’re talking…buy, buy, buy.”

On Monday’s show, Cramer stated that even companies that get beaten down, like Dow component Caterpillar, can become attractive buys based on their stock’s weakness and on their long-term investment story. “Nobody really cares right now whether business is strong or not,” Cramer said. “They just feel these stocks got too hammered.” Those bullish comments along with better than expected second quarter results announced Tuesday morning helped lift Caterpillar’s stock 7.7%. 

The “Cramer Effect” was clearly the force behind H.H. Gregg’s 7.9% gain on Tuesday. The stock which typically sees trading volumes averaging 450k shares, saw over 2.9 million shares traded on Tuesday. Of course the reason for the big spike in trading activity was Cramer’s recommending the seventh largest appliance seller as a buy. Cramer believes that the fall of Circuit City has benefited H.H. Gregg. With the housing markets finally hitting a bottom, H.H. Gregg could be a place where consumers will go to buy needed items. The company also has plans to expand from 111 stores in the Midwest to 400 stores nationwide. With a multiple of only 14 and a long-term growth rate of 17.6%, Cramer believes the stock is cheap. 

Other Cramer bullish stock picks: 

BHP Billiton (BHP: 80.73 0.00%) gained 4.3% – After Cramer applauded the market trend of buying industrial stocks ahead of the economic upturn

Murphy Oil (MUR: 61.20 0.00%) rose 1.3% – “It is dirt cheap. I want to own this thing, and I want to own the group.”

China Unicom (CHU: 18.78 0.00%) jumped 2.8% – “Yeah, I think that China Unicom is the way that they are going to sell the iphone in China… I have been buying China Unicom hand over fist.”

Sears Holdings (SHLD: 48.80 0.00%) gained 5.5% and Lowes (LOW: 26.88 0.00%) jumped 2.4% after Cramer recommend buying both stocks as a way to play the “gasoline rallies”. With consumers spending less money at the pump they have more discretionary income to spend in retailers such as Sears and Lowes. Unfortunately, the same logic didn’t’ seem to carry through to restaurants stocks as YUM Brands fell 6.0% and Darden Restaurants dropped 1.1% after also being recommended. 

No stock was effected more by the “Cramer effect” than Viacom. The stock gained 5.2% after Cramer donned a SpongeBob costume in honor of the cartoon’s 10 year anniversary. While Viacom has had its struggles, Cramer believes that the fact that Viacom is undervalued is a good enough reason to buy. The stock trades at a discount to peers Time Warner (TWX: 38.11 0.00%) and Disney (DIS: 41.27 0.00%). Cramer recommended buying Viacom before SpongeBob rings the opening Bell at the New York Stock Exchange on Thursday morning. 

The “Cramer Effect” also helped lift CSX (CSX: 21.95 0.00%). The stock gained 6.2% after Cramer noted that the railroad operator had recently beaten earnings estimates despite falling revenues. 

Other Cramer bullish stock picks: 

BHP Billiton (BHP: 80.73 0.00%) gained 5.3% – Cramer noted that mineral companies were showing signs of strength.

Goldman Sachs (GS: 116.15 0.00%) jumped 3.7% – Cramer believes Goldman Sachs is likely to earn $30 per share next year, while Wall Street is only expecting earnings of $16 per share.

Chevron (CVX: 106.76 0.00%) increased 2.5% – Cramer considers Chevron to be best-of-breed and prefers investing in CVX over the oil index. With a strong 4.1% dividend yield and 5% production growth for the year, Cramer thinks Chevron’s revised guidance may have lowered the Streets expectations enough to deliver an upside surprise in its next report.