Jim Cramer says strong earnings from ‘actual businesses’ are driving the ‘real economy’

Although all eyes are on the Magnificent Seven, CNBC’s Jim Cramer blamed Tuesday’s rise on strong earnings from companies in the “real economy.”

“We got huge numbers from real businesses,” Cramer said. “And I think we should celebrate that a lot of companies that aren’t tied to the data center or AI are able to do this well.”

The Magnificent Seven of tech megacaps Alphabet, Amazon, Apple, Meta, Microsoft, NvidiaAnd Tesla’saccounts for approximately 35% of the total. S&P 500.

Although the large concentration of these AI-focused companies could give the impression that the market is “dangerous” due to huge valuations and volatility, Cramer said these “high-risk speculative” stocks should not be the sole indicator of market health.

Cramer noted some “incredible gains” for a relatively positive market on Tuesday. Dow Despite being tech-heavy, the S&P 500 remained relatively flat, closing up 0.47% Nasdaq It fell by 0.16 percent.

Aerospace and defense company RTX Company Cramer reported a boom in quarterly earnings, which he attributed to the firm’s complex military systems. GE Aviation It also revealed “incredible numbers” for commercial jet engines and aircraft services in the last quarter.

Cramer emphasized 3 million It achieved “excellent” numbers after developing 70 new products during the quarter, achieving a close of 11.86 points or 7.66%.

General Engines Cramer said it had a “terrific quarter” in which it showed internal combustion hybrids were more profitable than electronic vehicles, especially amid President Donald Trump’s “laissez faire attitude” on emissions.

Life sciences and diagnostics company DanaherThe stock, which is up about 6%, is finally starting to recover after a long drought, with positive earnings indicating next year will be even stronger, he said.

Coca Cola It also exceeded expectations; Cramer thanked CEO James Quincy for leading the company to introduce new products that sell well.

“When RTX, GE Aerospace, 3M, General Motors, Coca-Cola and Danaher deliver strong results, you know something is right,” Cramer said.