Cramer's Morning Take: Costco 6/12/24

Jim Cramer (0:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. Jeff, one of the things that happened a few years ago was a short squeeze on GameStop.

And I know to think that the whole market could have a short squeeze is odd, but because of these CPI numbers, the confluence of CPI and the Fed meeting, and the numbers being so weak, and interest rates going down so much, we have the equivalent of a short squeeze with the mega caps and also the homebuilders. And it's worth pointing out, that's what it feels like.

Jeff Marks (0:32)

It is interesting seeing the magnitude of the moves in Apple and Nvidia, giving how the billions of dollars it does take to move those stocks.

But we're also seeing it play out with yields down in many other sectors as well. The homebuilders are on fire, Stanley Black and Decker. You know, when we added to the position last week in the low 80s, we said, all it takes is a rate cut.

Jim Cramer (0:55)

Yeah, I mean, I think people have to understand, why do we own stocks that are underperforming? Because when we haven't moved like this, we must be in something that can jump, whether it be Wells Fargo, whether it be Stanley Black and Decker.

Jeff Marks (1:07)

Yeah, no, certainly the banks should benefit as well. And why are we talking rate cuts? Well, CPI came in much cooler than expected, flat month over month.

Core was up less than expected as well. So now you have people talking to rate cut in September now. And we'll get Powell later today, of course. And he could either pour cold water on that or he could say, sure, maybe it's on the way.

Jim Cramer (1:34)

We're on the right track. In a backgrounder I had, I mean, he wants to see three good numbers, not one.

So let's understand that he's not necessarily going to embrace the concept that happy days are here again. Even as we had, and I got this from Walmart this very morning, our largest grocer for exclusively for CNBC Investing Club, what went down? OK, so you take poultry. That's a staple for America. That was $3. Now it's down to $2.68. Soft drinks, two liter, $1.42 down to $1. French bread, just an example of what we all have, bread is a staple in this country, $1.50 down to $1.

And they've lowered the price of milk. They said they won't be our price. And they noticed that avocados are down substantially. Now why do I mention these? Because you need to know the makeup of how incredible the declines are in produce, in gasoline. And one of them that we've been waiting for is auto insurers and property cash. These are all the stuff of daily, okay? And you talked about how gasoline is daily.

Jeff Marks (2:39)

Yeah, I mean, if you drive to work, you got to fill up your car. You mentioned Walmart, but Costco doing the same thing too. They're almost, they want to be a price leader on the grocery side, the fresh side as well.

Jim Cramer (2:50)

I don't know if we have a Costco chart, but that's a very good example of, they can out Walmart, Walmart, because they have fewer, what's known as skews, shopkeeping units. So the ones that they do have, they are able to drive amazing bargains.

Jeff Marks (3:01)

Yeah, that's a great point as well. They've reported monthly sales last week, the quarter not too long ago, all pretty solid stock running, even without that elusive membership fee increase.

Jim Cramer (3:14)

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SPEAKER_3 (3:27)

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