Cramer's Morning Take: 'Cracks' in the Market 5/8/24

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

This is one of those days where I think we're beginning to dawn, and I said this last night, I may have money. There are cracks, and there are becoming more and more cracks, but there are enough stocks that do well in a cracks environment that you're not gonna see it in the Dow. If you tell me it's steel pricing for different grades, including hot roll, which is very key for autos, and not the cold roll is the outside, hot roll is the inside. If you have cold rolled doing okay, and you have hot roll going bad, you buy Merck. Now I know that seems like a kind of a knee bone connect to the leg bone, but that is what managers do. So you'll see a Merck and Pfizer move here, and the best way to look at it, as our friend Matt Horwey suggested it, the best chart in the book happens to be the utilities.

SPEAKER_2 (0:55)

Yep, so you mentioned just some classic slowdown stocks. You mentioned utilities, those and staples, two of the three sectors that are actually up this quarter.

So it's kind of been like a Procter and Gamble market.

Jim Cramer (1:07)

Colgate has been terrific.

SPEAKER_2 (1:09)

The flip side of that is the discretionary stock. Consumer discretionary stocks, maybe excluding Chipotle, have been very weak.

Jim Cramer (1:18)

And Dutchbro.

Dutchbro has had a good quarter, because Chipotle is plus seven, Dutchbro is plus 10 I mean you're getting some that have bucked it, but that's not what we're talking about. The one that you worry about is like a Dine Brands, and IHOP.

Now you've got E, but that's because they offered something for the low and high. They had a good barbell situation. But if you look at the vast majority of restaurants, Texas Roadhouse was the absolute best. You have a lot not doing well, and you have some doing well. And that's not the sign of a healthy economy.

SPEAKER_2 (1:50)

Sure.

Jim Cramer (1:50)

That's the sign of a spotty.

SPEAKER_2 (1:51)

I know oil at one point today hit its lowest level since March 11th. Maybe we'll start to see that also. But on the other side, maybe they'll translate to lower prices at the pump in the future, which should help out the consumer.

Jim Cramer (2:04)

That's a very good point.

SPEAKER_2 (2:05)

But in terms of not getting credit, when earnings, a great quarter last night, a beat, stock was up last night, it was up pre-market, now down 2%. Okay, so you buy with it. Kind of crazy here.

Jim Cramer (2:16)

Now someone might just say it was artificially inflated because the Las Vegas Sands Macau property was being renovated. That's a $200 million renovation. It's not over yet.

I think that there's some things... Now some things are going to be wrong, okay? When I say wrong, I'm not going to say that this thing isn't going to go to 93 I am saying that the people who took their price targets from, say, 110 to 150 will ultimately be right. That doesn't mean they're going to be right today.

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SPEAKER_3 (3:01)

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