Cramer's Morning Take: BlackRock 11/7/24

Jim Cramer (0:02)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. Now, the bond market yesterday was ignored. Rates went up big. There's a sense maybe that rates overshot, is the way I feel, and that that's why we could have a second day rally going on here, led by things like Home Depot, which is one of our stocks that we said you should buy a shirt.

Jeff Marks (0:23)

Yes, unfortunately, we couldn't buy it due to restrictions. That's the nature of the game. But, yeah, we certainly wanted to take some of the sale proceeds from the Honeywell trim.

We don't like the execution that's happening at Honeywell, so scaling out of that to buy something like Home Depot. But, Jim, there's a lot of, call it, profit-taking in things that really rallied hard yesterday, whether it be the banks, Wells, Morgan Stanley. Wells was up 13% yesterday. Morgan Stanley up 11

Jim Cramer (0:51)

Wells was the most powerful gain I have seen in a major bank in my life.

Jeff Marks (0:56)

Wow. Yeah, I mean, it was a huge move, now soaring past the highs from 2018

Jim Cramer (1:02)

Don't you think the new regime, the Republicans, will get rid of the asset cap that's existed now for more than six years, and it's completely gratuitous because Charlie Sharpe had nothing to do with it?

Jeff Marks (1:12)

I think it's certainly more likely. So you have deregulation, you have a potential for an M&A wave. Those were helping the investment banks. Tax cuts as well. So we sold Wells, sold some Morgan Stanley, actually bought some BlackRock with that money because BlackRock was lagging the others.

Jim Cramer (1:27)

And BlackRock's got private equity. But one of the things that BlackRock has is Larry Fink. And Larry Fink, I think this stock up 28 I think this stock could be up 40, 45% without a problem. And I urge people to buy it right here.

Jeff Marks (1:41)

So you mentioned earlier the move in yields. We do have a Fed meeting today. Of course, that announcement comes out at 2 p.m. Chair Powell will speak at 2 p.m. Widely expected that they will cut rates by 25 basis points. And you were positing earlier this morning, manufacturing's weak, freight recession. So they should.

Jim Cramer (2:02)

Yeah, I watched the national, the American, the NAM. These are the lobbying group for manufacturing. The numbers have been bad for 10 straight months. 10 straight months, manufacturers, yeah. I mean, let's give manufacturing a little lift here.

Jeff Marks (2:17)

I mean, if you're not in the data center, if you're not electrical equipment, power generation, like in Eaton, then obviously you're feeling some weakness.

Jim Cramer (2:24)

We had Cummins though. I talked about Cummins last night. Cummins' Class 8 business, terrible. That's their classic business. But they moved to the data center. So therefore, they managed to preserve the profits. We did that with Eaton and we did that with Dover.

Jeff Marks (2:36)

Data Center Electronics certainly saw that in DuPont's results earlier this week. I guess there's a question, what will the Fed do after the 25 basis cut? Odds are they'll still cut again in December, but 2025 is a little less clear.

Jim Cramer (2:52)

I want to take my cue from ECB. A lot of people have been making light of the fact that I've been saying, watch Europe, and that's not from me, that's from Apple, that's from Amazon and it's Pegasus and Tendera. They've done three cuts over there. Other rates are middle of three, and it's ignited the European economy, ex-Germany, which is auto and Ukraine issues. And people are not focused on the fact that when interest rates went down there, business picked up big. That will happen again for us.

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SPEAKER_3 (3:32)

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