Squawk on the Street

Cramer's Morning Take: Consumer Spending 8/15/24

Jim and Jeff discuss Consumer spending as inflation pressures showed more signs of easing. 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:: 5m
Broadcast on:: 15 Aug 2024
Audio Format:: mp3

CNBC Investing Club Disclaimer

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Start a 30-day free trial at walmartplus.com. Paramount Plus is central plan only. Separate registration required. See you Walmart Plus terms and conditions. Hey, it's Kramer and this is my morning take on the market from today's CBC investing club morning meeting. All right. So, Jeff, this is one of those things where we have to start with the macro and then we can go to the macro. And the reason I say that is because the macro backdrop that we had is about as good as you can get. Sure. I mean, while coming into the week, we need to see inflation data cool. We needed to see some signs of resilience in the economy. That was the big fear ever since the jobs report that the labor market was falling off a cliff. And we kind of ran the gauntlet this week. We had PPI, CPI, cool in line. And today, you got a really bullish retail sales report, jobless claims lower than it's expected. Why it's a bullish report because- Well, it was strong. Good. We needed good news was good news, right? Okay, because that's what I wanted to point out. We shift. For so long, it was bad news was good news because we needed to see inflation come down. Now we don't want to have- Now we don't want to have a recession. We don't want to have a recession. Right. And that retail sales number is pure no risk. We don't want an emergency, you know, three quarters of a basis point of a percent great card. And we're seeing that in the data that maybe we're not going to need that. And, you know, it's part of the reason why last week when the market was so concerned about the economy, we actually were trimming Proctor because that was rallying on those concerns- Wait, wait, wait, wait, wait. I mean, I didn't really have that at 110. I mean, remember what's happening here is you have to do the exact opposite of what happened Monday. Monday was a false tell. I call that. Meaning that Monday was just a trade that had to do with margin calls, getting out of stocks, which then led to Tuesday and Wednesday being belief that we're having a recession, which then took up stocks that should not have gone up, like a Proctor, which did not have that good a quarter. Right. No, it did not. And we wanted to buy stocks of companies that had great wealth. Well, well, it was good enough. I've done some more digging on wealth. And I think that that, you know, obviously they had the same problem. You gave them a tough grade yesterday. You gave them a tough grade yesterday. On your, on your gratings of the quarters. I had to. But you know, if you, we can parse through retail sales as well. So up one percent month over month, verse 0.4 percent expected, the largest increase since January 2023. So obviously you signs a Brazilian consumer. But if you parse through the data, you had electronic and appliance stores up 1.6 month over month. Wasn't that an interesting thing? I think that's pretty good for Best Buy. Now, Best Buy hasn't reported yet. I know Evercore earlier this week put a tactical underperform. Yeah, I thought that was harsh given the effect. But you're seeing that stock up nicely today. Building material, garden equipment, supply dealers. That was up. Different from Home Depot. Very different, but up 0.9 percent month over month. Or maybe some good retour isn't a Stanley Black and Decker. I think there's a way to do that. Start your day with my outlook on the market every morning. Visit cbc.com/morningtake to become a CNBC investing club member at a special rate today. 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. 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