Cramer's Morning Take: Capital One 4/2/25

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Jim Cramer (0:57)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting. This is another morning where the futures were not indicative of how real buyers feel. The futures come in very, very negative, go from 330 all the way down all morning, and real buyers come in because they sense bargains.

Jeff Marks (1:18)

Yeah, look, we've had two really nice intraday reversals, Monday and Tuesday. We'll see if we can go three for three if the S&P can close in positive territory. Some nice bounces forming in some of the financials. I'm looking at Capital One.

Jim Cramer (1:33)

We have numbers trimmed. Capital One is a very interesting situation because we are waiting for that to close.

Jeff Marks (1:39)

Sure, if it can happen, there's certainly a strong case to be made that if the deal can close, the stock is worth at least 200 bucks.

Jim Cramer (1:47)

It's one of our best, and it's part of the transition out of tech into other things, which is going to continue. The names that I'm looking for, by the way, for our Charitable Trust are not tech.

Jeff Marks (1:58)

Certainly. But today is dubbed Liberation Day. We are expected to get tariff announcements later today. Maybe we'll get some tease in the afternoon, but the formal announcements by the president are expected at 4 PM, so after trading closes. So monitoring all the headlines, there is some idea that maybe we've priced in the peak of the uncertainty, although we don't know the long-term impacts that tariffs will have.

Jim Cramer (2:25)

Well, that's what I was attending yesterday, was 20% across the board. Now, obviously, it becomes 30% across the board. At a certain point, you will stop. There will be no commerce.

Jeff Marks (2:39)

Well, there seems to be some idea that from the Treasury Department, their messaging, that the tariff announcements are going to be the maximum level, and there will be ways to work them down, which could be a positive and not as bad as feared development for the market.

Jim Cramer (2:59)

Right, and that would cause a giant short squeeze because the shorts have had a run in the joint. But I would point out that when I try to find the companies that are doing well, they tend to be small business. It would be Intuit, it would be DoorDash, Sintas.

Jeff Marks (3:13)

And small businesses, they are more domestic focused. Maybe they don't have a big international overseas operation. Right, go daddy. Maybe that's why as well.

Jim Cramer (3:22)

No, some good places to be.

Jeff Marks (3:24)

Not as much TAF risk, but maybe a beneficiary if we see tax cuts down the road.

Jim Cramer (3:29)

Exactly. And maybe one of the reasons why the ADP payroll report was better than expected, $155,000 versus $120,000, is the smaller businesses, they're not taking into account. They don't have tariff worries. They tend to be service corporations.

Jeff Marks (3:46)

Okay.

Jim Cramer (3:48)

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SPEAKER_5 (3:59)

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