Cramer's Morning Take: Fed Preview, Best Buy 12/18/24

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Jim Cramer (1:00)

Hey, it's Cramer. And this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

Jeff Marks (1:07)

This is a big Fed beating. I mean, we largely expect them to cut rates by 25 basis points, but what comes after that? Still a question. They will update the dot plots. People are gonna analyze that, maybe a little bit too much, but maybe provide some indication about how the Fed is thinking about next year, but of course the data will decide what the Fed does.

Jim Cramer (1:28)

Right. Now Carl was saying to me, Jim, you love the Atlanta Fed, that shows 3% GDP growth. I do love it, but sometimes the aggregate numbers lie in the sense that we know the headwinds for our companies that have cyclicality are massive. They're massive. And anytime you see anything positive, like we had Best Buy today, and analysts are saying, well, do they know about the headwinds? But the headwinds don't extend to the Mag 7, and they don't extend to the build out in the data center, hence why J Bill has such a big move today. That's data center related. So what you have to try to do is say we're oversold in the oscillator, minus five, find things to buy, that's what we're doing, and that's what we'll continue to do, including when we introduce a new name tomorrow.

Jeff Marks (2:10)

Yeah. And you mentioned Best Buy, so you did have a couple of positive notes on it today. One being this Evercore Catalyst Call. It is effective through the Consumer Electronics Show in Las Vegas in early January. Yeah. They say with the stock trading at a significant discount to the market, expectations now tempered, and recent findings from their holiday survey and yesterday's retail sales report, which showed a nice little pickup in the consumer electronics. So they're positive for the stock into year end. The November retail sales did show a 330 basis points acceleration in electronics and appliance store sales.

So, and then you had this loop capital, they're comparing prices on Best Buy versus Amazon, and they're showing that Best Buy has highly competitive prices, and that really matters.

Jim Cramer (2:56)

Within a percent of Amazon?

Jeff Marks (2:58)

People like to shop around, so it matters.

Jim Cramer (3:00)

Plus, I mean, when I use Best Buy, I tell them, look, I want the TV on this wall, and I want it to look like this, because I'm not a guy who can go lift a 70 inch TV and put it up correctly.

Jeff Marks (3:11)

And there's also this idea that Luke brought up. Maybe people are running out to buy electronics ahead of the potential tariff, which could increase prices on the consumer. So I thought that was an interesting thought.

Jim Cramer (3:27)

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