Cramer's Morning Take: Datadog Market 11/7/23

SPEAKER_1 (0:00)

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Jim Cramer (0:28)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. This is one of those days, but because the bonds are benign, we're seeing companies that have high growth that deliver numbers being rewarded with incredible gains. Hence why I'm calling this the data dog market, because what's happening obviously is you have data dog, you have MongoDB, you have Snowflake, and then you have some that we have, Salesforce, Microsoft, Oracle.

And by the way, Palo Alto all going up, just because data dog said that the spending is back. No more optimization. Spending for these software enterprise companies is back, and that's what's suing them.

SPEAKER_3 (1:11)

And Palo Alto too, bouncing back after a couple days of declines. Remember last week, Fortinet said there was a weak firewall market. They had some own execution issues too, but then overnight, we also learned of a new data breach from Las Vegas Sands.

Jim Cramer (1:25)

And crowd strikes up again, and that's because of the data breach.

SPEAKER_3 (1:28)

And that all underscores the importance of cybersecurity, the importance of that market. So you're seeing a nice move higher in Palo Alto.

Jim Cramer (1:35)

This is one where I think that you just have to take my... This is one of the best performers in the entire year, and I think that it's going to have no problem breaking out here, given the fact what we hear from data dog, which is also security, indicating these are terrific.

Now at the same time, we have a couple things that are really interesting, which is also helping the ponds. Oil and gas are breaking down. It's really interesting.

SPEAKER_3 (1:58)

Below the level from where the war in the Middle East broke out.

Jim Cramer (2:01)

It's actually well below. This is very important. We have a warm winter. This could really be good for inflation. This we're going to see gasoline tick down. These are things that have, year over year, going to look very good.

J-PAL.

SPEAKER_3 (2:15)

It goes the Fed's way there, especially, yeah, and a lot of companies where their input costs are tied to energy costs as well.

Jim Cramer (2:24)

This complete floor breakdown, I guess the Russians must be flooding the world because they do have a war going on. They need money.

US just sent some real heavy hardware over there, but sending usually heavy hardware, by the way, to Israel.

SPEAKER_3 (2:36)

And since we sold Pioneer, since we sold Halliburton, down to only one energy stock in the portfolio, and that's KOTERRA. And they actually reported a pretty good quarter last night.

It's not getting the full credit for it, given what's happening in the commodities, but it was a production beat in the third quarter, better than expected cash flow. More importantly, they raised their product, four-year production guidance, but they kept the capital expenditure outlook unchanged. So that just means improved efficiencies, greater capital efficiency, and that's the recipe for success for these stocks to go higher.

Jim Cramer (3:10)

And that's why we've been endlessly saying KOTERRA is the one that we can be in, and the others I do not like. Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_4 (3:32)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Cramer on television, radio, internet, or another medium.

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SPEAKER_3 (4:14)

People are really excited about the sport and where it's going.

Jim Cramer (4:17)

The US has gone crazy and has woken up to what Formula One is.