Cramer's Morning Take: Big Banks & Oil Stocks 10/7/24

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. And what I think is interesting is that rates are going down today, interest rates going higher, bonds going down, and it's causing tremendous havoc in a lot of the market, but then the market is bouncing back, which is kind of apropos of what I said in my Sunday Think Peace.

Jeff Marks (0:25)

Well, right, we had a huge rally Friday in reaction to that strong September jobs report. Market pricing is a little bit less of easing by the end of the year. But I think what's happening too with the market is we're just fighting a whole host of downgrades today in big mega cap names. But right, you mentioned your Sunday Peace, the market has rallied despite a lot of that negativity. The banks are a real point of strength today. They were Friday, Wells, Morgan Stanley, huge moves. I know there was a Morgan Stanley upgrade too. That strength is continuing today.

Jim Cramer (0:59)

I've done some work on that group and what's rather amazing is that for a lot of these, the position for the slower the Fed cuts rates, the more money they make, particularly Wells Fargo. Now David was talking to me about how Wells Fargo has underperformed JPMorgan. Now Wells Fargo has underperformed. There's no doubt about it. It's up 16%.

I mean, Wells Fargo is up 15%.

Jeff Marks (1:19)

Yeah, about there. It actually was outperforming JPMorgan for most of the year. You could see the nice start there, but the last quarter there was a bit of a trip up.

Jim Cramer (1:28)

Look, I think that the risk of war on these banks is very good.

Jeff Marks (1:31)

Well, they report Friday.

Jim Cramer (1:32)

Yeah. Let's talk about oil for a second. The oil stocks are moving up again because of what's happening in the Middle East. October 7th, terrible day. I will point out this. I think the stocks have been, the oil stocks are rallying. I think that that can continue, but I don't think that that's where you want to be.

I still think you don't want to be there, but is it like China for me and where I fought it?

Jeff Marks (1:57)

Pricing in some near-term escalation, we'll see.

Jim Cramer (2:01)

I mean, look, WTO... I don't know. I have no insights. I'm telling people to buy something. I have no insight.

Jeff Marks (2:05)

Yeah. I mean, we did buy Cotera early last week, but I mean, there were literally missiles being launched at Israel. So there was an expectation that we could see some more hostility. That has played out. Oil is at 75

Jim Cramer (2:23)

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 (2:38)

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