Cramer's Morning Take: Fed Preview 7/24/23

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Jim Cramer (0:29)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

I've got to tell you something. Once again, stocks are headed higher. Remember, we're 10 straight days with the DOWs going up. It's a big week for earnings. And Jeff, as you pointed out, an excellent piece this weekend, we have nine companies' portfolio reporting.

Jeff Marks (0:52)

Yeah, so it's a big week. Sandwiched in between that, of course, is a Fed meeting.

You know, we're all expecting 25 basis points. I think the question comes, what comes after that? So the speech will be, as always, more important than the announcement itself.

Jim Cramer (1:07)

Right, but same time I put on a piece this weekend saying that the endless focus on the Fed is a misdirection play.

Literally as if we're going, we're looking like we're run, and we went pass. And when I look at what the Bears did wrong was that they followed, they parsed so much of the Fed that they forgot the big picture, which is that the companies, there are companies in the S&P 500, specifically 500 of them, and they weren't oblivious, and they decided to make big changes, including some of our companies, which produce remarkable earnings just because they've been doing things for themselves. Self-improvement.

Jeff Marks (1:37)

Yeah, absolutely. Self-improvement, fixing margins where they can. I mean, just a lot of turnaround stories. Just thinking like Stanley Black and Decker, they've had issues with their supply chain, with inventory, but they've been correcting all of that. So their earnings pressured in the near term, but should fix up a year from now.

Jim Cramer (1:56)

One by one, what we've done is chip away at the stocks that have been bad for us. So J&J was really bad. Now, we should talk about immediately about the fact that J&J was at 158 before earnings. That was three days ago.

Now it's at 173 I mean, only a fool would say, you know what?

I'm not gonna sell anything. Generally, we're right here where we're worried about the existential conflict of the $18 million loss to a gentleman who's 24 years old and dying.

Jeff Marks (2:23)

And still are, right? There's no change.

Jim Cramer (2:26)

And I do believe in my research that I've done away from the company that the Third Circuit is going to reject any, any, unless they have 100% super majority.

Even then, it would be questionable what they do because the Third Circuit historically has favored the plaintiffs in being able to endlessly sue corporations. It's a honeypot, a honeypot circuit. So, I mean, I'd be very careful, and we had to sell some in part because, I've got to tell you, I have very little faith in J&J's strategy when it comes to...

Jeff Marks (2:53)

Sure, of course.

Jim Cramer (2:54)

Very little faith. You want to make that point.

Jeff Marks (2:55)

Yeah. Well, they've done little to convince otherwise.

Jim Cramer (3:00)

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.

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