Cramer's Morning Take: "Back From the Dead" Stocks 7/19/23

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Jim Cramer (0:33)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. This is a really interesting morning because my colleague David Faber posited a question after I talked about some of the positives and I was saying, well, what could derail us if Jim you're so positive?

Now, I want to focus only because the market, once again, is just doing incredibly well and I don't want to fall prey to the notion that we're just permeable bulls. I mean, is that, of course, possible that Netflix reports a bad number? Possible Amazon guides down? It's possibly going to be a flare up inflation. At the same time, Jeff, it is probably clear that the bulls are in charge and the bears are folding.

Jeff Marks (1:14)

Yeah, and we are seeing comebacks in other areas that have significantly lagged looking at areas in health care. Remember, UNH had a big drop a month ago after the Goldman Sachs Conference where they warned about a higher than MLR. Well, now that stock's higher than what it was at the Goldman Conference. Elevance Health, another health and share report today.

Jim Cramer (1:35)

Elevance, a very big company.

Jeff Marks (1:37)

Up 7%. We're seeing that in Humana today. Bounced back as well, up 3% in change.

Jim Cramer (1:42)

It's entirely possible that Humana's not as good because they have more medical advantage and more older people.

Jeff Marks (1:46)

Yes, of course.

Jim Cramer (1:47)

At the same time, UNH making this comeback has made people feel like, wow, maybe we sold that group too soon. Carvana, which I have on tonight, once again, a company that was given up for dead, $3 in December of last year, now raised on the basis of mean people who take it up because it was about 40% short.

Now they do an equity offering, they reconfigure their balance sheet, and it comes back. These are back from the dead stocks.

Jeff Marks (2:11)

Banks, selectively too, right? You had Morgan Stanley, big day, 6% yesterday, up another percent today. Wells Fargo had a nice post earnings reaction as well.

Jim Cramer (2:21)

When I said the Goldman Sachs, the return on investment, return on equity wasn't great, but there's a lot of one times in there, and people feel are gonna come back to Goldman and say Goldman's gotten cheap. One of the reasons why is because there are green shoots, we have IPOs coming, and they're coming to a premium.

M&A a little more difficult, when I deal with Jonathan Kanner, who's the Assistant Attorney General for Antitrust, or Leonid Kahn, who's the head of FTC, who's the one who built CNBC, I don't see a resurgence in mergers, because they'll try to block it. David Faber points out that the judiciary is not their friend, and says to me, after the fact that Activision Blizzard, Microsoft may go through, that could be a green shoot for the investment business. So you have financials doing better, you have transports doing better, JB. Hunt reported a weaker number, I would say it was about a freight recession, and the stock's going higher.

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