Cramer's Morning Take: Banks 1/4/24

SPEAKER_1 (0:00)

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Jim Cramer (0:30)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. I've got to tell you something once again. Broadening out is the theme, Jeff. We cannot decide that Apple's no good, so we should get out of the market. Today, it's the banks again.

Jeff Marks (0:47)

Yeah, banks, industrials, two of the more cyclical areas we pointed out when we made those trims of the Magnificent 7 and some other of the big tech winners on Tuesday morning. They're doing well today.

Wells, Morgan Stanley bouncing back after, you know, today, so far this week, it's kind of been one day after another, a little bit different, but I still think that broadening out theme is happening here.

Jim Cramer (1:11)

Now, let's understand each other. This is very positive because this group signifies that the economy is definitely getting better. It's one of the reasons why we saw an upgrade with Home Depot.

But there isn't enough money to go around for these stocks to rally.

They have to have a source of funds. And the source of funds is MAG-7 because people say MAG-7 is up 11% since the last week of October. And you know what? That's enough. Enough. Apple's up 50% and Nvidia's up 1-200%. So there are sources of funds that they're not bad. It's just that they've moved up a lot. That is actually typical positive behavior. Now, it could overshoot, as Lyle Williams says, a great market historian.

It could overshoot MAG-7 because they are overvalued in a classic way. Except for, by the way, Alphabet. But that's because I think it's earning some challenge.

Jeff Marks (2:02)

Yeah, and you can put Meta on the cheaper multiple side as well. But yeah, it does seem to be money, not necessarily... It has been a little bit of a rough start to the week, but not a whole lot of money leaving the market, more of just this rotating... That's been the theme. But you mentioned Apple, another downgrade today, this time from Piper Sandler. They go to neutral, concerned about smartphone sales, China.

Maybe the watch dispute is a little bit of a distraction, high valuation.

Outside the watch dispute, these are really just the same narratives that we've heard all throughout last year when the stock rallied almost 50%.

Jim Cramer (2:37)

Except for this time we have the Vision Pro, which I know is going to be too expensive for most.

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SPEAKER_4 (2:59)

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