Squawk on the Street

Cramer's Morning Take: CPI Report 7/11/24

Jim and Jeff discuss CPI data as traders upped their bets for interest rate cuts. 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:: 11 Jul 2024
Audio Format:: mp3

CNBC Investing Club Disclaimer

Building a portfolio with Fidelity Basket Profolios is kinda like making a sandwich. This is simple as picking your stocks and ETFs, sort of like your meats and other topics. And managing it as one big juicy investment. That's pretty good. Learn more at Fidelity.com/baskets. Investing involves risks including risk of loss, Fidelity Brokers Services LLC, Member NYSC SIPC. [MUSIC] Jim Kramer here to share with you a sample of my take on the market from today's CBC Investing Club Morning Meeting. Today is a day when smaller caps stocks are shiny and most important, companies that do well when interest rates come down. Jeff, you know that this CPI is really in control today. You don't buy the semis when you get a great CPI number. You buy Best Buy and Stanley Buckner. Yeah, I mean look, if you would have told me CPI would be down 0.1% month over month and the S&P would be down on that. I'd be very surprised, but what's happening as you call it out, it's a lot of rotation out of these big mega cap names that have just been up, up, up and up, Apple, Amazon, Meta, Microsoft, Nvidia, all the names that we've championed for years. And they're finally rotating into some other groups that do benefit more when rates come down, which they are today, 10-year, falls below 4.2%. I mean look, we bought Next Tracker. We started a position that a couple of weeks ago. They're one of the biggest beneficiaries, the solar stocks of lower rates. So you're seeing that play out today. People should be able to say correlation. It's very important correlation. Stanley, Black and Decker, that's another one we've been saying. You know, we've had to be very patient in that. But, you know, finally putting together a couple of good days as rates come down. Well, I think that people have to understand, we set up a portfolio, and I remember when I was at Goldman Sachs at Jack Shepherd, my partner used to say, "Look, they can't all go up at once." And the reason why is because they shouldn't. We always want stocks that are lever to different things. Now we obviously learn so much of the tech tight. It's probably more than anyone else on Earth. We identified companies like Nvidia very early. But we also felt that at this stage in the rate cycle, it would be good to have some rate cycle beneficiaries. Because we predicted that there will be a day. You'll have a day where the big caps get killed. And you'll see these things shine. Now you and I were talking about Shoe, which is the name of course we used for the guy. CEO of Next Tracker. CEO of Next Tracker. Yes. And when I saw the rates go down, the first thing I said was, "This is going to be Next Tracker's day." Absolutely. Absolutely. Yeah. When we initiated, we pointed out interest rates and government policy. Those are some two big swing factors. But as interest rates go down, should be good for them. Should point out though, in relation to the cooler than expected CPI, you have odds increasing of a cut in September, December, but maybe even a third one this year as well. At the end of the month or later in the year. Somewhere in between. Well, look, I've got to tell you that when you look at the actual breakdown, I think J-PAL will be foolish to move anything other than one. Join the CMC Investing Club with Jim Kramer. You catch my member exclusive warning meetings every day at 10 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take. 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 cnbc.com/investingclubdisclaimer. High five. Up top. Dave's company just got the first ever five-year price lock guarantee from Comcast business. It's five years of gig speed internet, advanced security, and a great rate that won't change. All from the company with 99.9% network reliability. He hasn't given this many high fives since Deborah brought in her famous banana bread. The Comcast business five-year price lock guarantee. In Z82124, guaranteed rate applies to monthly service charge for new customers on qualifying internet bundle, excluding taxes and fees. taxes and fees. Other restrictions apply.