Squawk on the Street

Cramer's Morning Take: Best Buy 7/16/24

Jim and Jeff discuss why they like this retail stock. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake CNBC Investing Club Disclaimer

Duration:: 4m
Broadcast on:: 16 Jul 2024
Audio Format:: mp3

CNBC Investing Club Disclaimer

What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. I'm Jim Kramer, and you're about to hear a sample taken directly from today's CMEC Investing Club Morning meeting. Today is very interesting, because this is kind of a classic day. We get good retail sales, people buy the retailers. We get lower interest rates, for some, I think it's kind of not real reason why, but that's bringing back that rotation that we saw on Friday that didn't continue on Monday. Exactly, and that rotation really started to form around 10 a.m. today. So, what does that mean? You saw some weakness in Nvidia, Amazon, the big megacap tech stocks. And then, what they're buying is Stanley Black and Decker, another one on the lower rates. And actually, in the retail sales, there were some good things about building materials as well, up 1.4 percent month over month. The materials, and by the way, retail, hard goods, appliances, that's fine. Yeah, exactly. You look at electronics and appliance stores. That was up 0.4 percent month over month, now 2.7 percent year over year. And that's why it's still copying negatives. Now, people are still saying, "Jim, why did you recommend Circuit City?" I come back and say I recommended PC refresh, people have to understand that. Now, one of the things that is happening, that is kind of incredible when I look at it, is there's just this overriding sense that small and medium sized business do well, which is why the Russell keeps going up. And I get it, the large companies, and you hear this from Vance, large companies have had their way, now it's time for small companies. That is something that Larry Kubo, who I think will be part of the administration, has always preached, so that's what you're seeing with the Russell. This is incredible rally. It's that broadening out that's been elusive for months, but finally, taking shape one day. But what does that mean for tech? I don't think that necessarily means running for the hills. In fact, we're looking at some of the weakness to buy some tech names that we've been waiting to come down. So, you know, we bought AMD yesterday if it continues to come down. We'll pick up more, you know, lower our average cost basis. Exactly, you know, look, this is a moment, say, when Ford, six times earnings, can shine. By the way, Ford, hey, listen, I don't want them to beat Musk with EVs. There was money on EVs for heaven's sake. So, I see that our portfolio is set up for this moment, and people don't realize that. This is why you buy Dover, this is why you buy Eaton, this is why you buy Best Buy. This weekend, people are saying, basically, why don't you just own tech? Exactly. Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cmbc.com/morningtake to access all the benefits of being a CNBC Investing Club member. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC Investing Club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, internet, or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Kramer. To view the full CNBC Investing Club disclaimer, please visit cmbc.com/investingclubdisclaimer. Earning your degree online doesn't mean you have to go about it alone. At Capella University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals, to academic coaches who can help you form a plan to stay on track, we care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. [BLANK_AUDIO]