Cramer's Morning Take: CPI Preview & Foot Locker 5/9/23

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. Today is one of those days I did my show with David, and I hate to say it, but it was a bit sign-filled, like it was a show about nothing. And the reason is because we didn't really have any big reports last night. But what we do have is a market that's heavy, and in part because it's being led, once again, by the Ne'er-Dwell banks.

And then Skyworks Solutions is bringing everything down, and Western Digital, Skyworks is bringing everything down. And then ASDAC.

I would say this is a contra-trend day. And if the debt ceiling weren't hanging over our head, then we would be saying, let's pick. But we can't pick.

Jeff Marks (0:39)

Right. So you have Biden set to meet some congressional leaders later today. CPI tomorrow, another big event that perhaps there's some anxieties over, which is why we're seeing a little bit of a sell-in today.

Jim Cramer (0:49)

Well, CPI is going to be hurt by rent, because rent is higher, because housing is higher. But there is one takeaway that I want to take advantage of, which is that the downgrades that we saw with the Under Armour and the weakness in the quarter is not reflective of Foot Locker. Foot Locker sells almost no Under Armour. As a matter of fact, Under Armour is losing share to everybody, including On, which is the featured shoe of Foot Locker.

Jeff Marks (1:10)

Right.

Jim Cramer (1:11)

So I'd like to be able to buy some Foot Locker. Here we have a 4% yield with Mary Dillon. It's crazy.

Jeff Marks (1:17)

Yeah, if you go to any Foot Locker conference call or any store, it's the On shoes, Hoka. Those are the ones that are really emphasizing. And of course, Nike as well, no real mention of Under Armour. So there might be some selling in that sport athletic wear group today as people try to make read-throughs into one company into another, but perhaps not the same.

Jim Cramer (1:35)

Look, I'd rather make a read-through from Boeing to Honeywell than I would.

Jeff Marks (1:39)

Well, I think that's a really good one. So Boeing in the news, they secure that big order from Ryanair. The two companies were feuding for so long, couldn't agree overpriced. But Ryanair said to buy at least 150 737 Max planes, options under $157,000.

Jim Cramer (1:54)

They were out there, changes the industrials. I think the industrials, I'm working on a couple of industrials for the year.

The industrials are probably the strongest group. They should be the weakest group, right? Because the Fed tightening. And a lot of us, the aerospace cycle, it just won't quit.

Jeff Marks (2:08)

Well, I think you look at the aerospace cycle, you see there's just such a strong demand for these planes. We know people are going out, they're traveling.

The demand for planes isn't going to stop just because if we see a slowdown in the economy. I mean, this is a multi-year recovery in the aerospace cycle. So you could look at what the Fed's going to do, you could look at rates or whatever, but the aerospace is still strong.

Jim Cramer (2:32)

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SPEAKER_3 (2:45)

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