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

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. Today is a very interesting day, Jeff, because this is kind of a classic day. We get good retail salespeople buying their 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. It's back.

Jeff Marks (0:25)

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 mega cap 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% month over month.

Jim Cramer (0:48)

Building materials, and by the way, retail. Hard goods, appliances, best buy.

Jeff Marks (0:54)

Yeah, exactly, and you look at electronics and appliance stores, that was up 0.4% month over month, now 2.7% year over year, and best buy is still comping negative.

Jim Cramer (1:03)

Right, now, the negative, you know, people are still saying, Jim, why did you recommend Circuit City? And I come back and say I recommended PC Refresh, and 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 businesses 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 Kudlow, whom I think will be part of the administration, has always preached. So that's what you're seeing with the Russell.

Jeff Marks (1:39)

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 run 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 we bought AMD yesterday. If it continues to come down, we'll pick up more, lower our average cost basis.

Jim Cramer (2:00)

Exactly. Now 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. They lose money on EVs for heaven's sake. So I see that certain, our portfolio is set up for this moment, and people don't realize that. This is when you buy Dover. This is when you buy Eaton. This is when you buy Best Buy.

This weekend, people were saying, Jim, but basically, why don't you just own Tech?

Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (2:41)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer'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 Cramer 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 Cramer. 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 and following any strategy or investment discussed in the content from Cramer.

To view the full CNBC Investing Club Disclaimer, please visit cnbc.com forward slash investing club disclaimer.