Company earnings give a better read on the economy than the bond market, Jim Cramer says

in its Thursday quarterly report, including a 9-cent earnings beat. The stock has surged more than 13% since the conference call. The chipmaker told a bullish story about the growth of artificial intelligence, which is being adopted by businesses across major industries including health care and transportation. Cramer said he was surprised to see the whole semiconductor cohort rise on Nvidia's report.

"These are secular trends and they won't be stopped," he said. "No one told [CEO] Jensen Huang that his product's dead unless the Fed aggressively cuts rates multiple times to stave off a recession. Perhaps, the demand is there regardless." Estee Lauder also reported 15% sales growth in its skincare business. The company also predicted full-year sales will rise as much as 8% and profit will fall in the range of $5.90 and $5.98 per share, which topped Wall Street expectations of less than 7% and $5.81 a share. The stock popped more than 12% on the session.

Cramer also recognized that consumer demand drove the performances in UPS, Visa, Mastercard and Apple. The market is driven by confidence and is still leveraged to fears about the state of the bond market, he said. "This rebound can easily be undone if the bond market turns us around, stopping traders in their tracks, but not commerce," the host said. "The recession talk hasn't vanished, even if it's now buried under a mountain of bullish data points, but on days like today, it sure is hard to find."Questions for Cramer?

An observation about companies obsessed with the next quarter’s performance versus debt investors trying to look years into the future.

Well, their creative accounting for earnings is certainly more advanced than the bond market.

Oh, really? Apple reported lower revenue in 2019 than the same period in 2018.

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