Cramer's Morning Take: Fed Preview & Eli Lilly 5/3/23

Jim Cramer (0:02)

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

We have a lot to cover. First, we have to talk about the Fed. I believe that the Fed will do a quarter, and then say we need to do a rigorous check of all the banks before we do anything forward. That's how I think he'll approach it.

Jeff Marks (0:21)

Yeah. And in terms of the market reaction, look, we know it's always volatile on the days where Powell speaks, especially with the Fed decision.

Usually, the first second move may not be right. So just nothing wrong with perhaps sitting on your hands if you're trying to gain what he's trying to say. Right. It's hard to do.

Jim Cramer (0:39)

Now, Eli Lilly, just go right through them. Eli Lilly, I think can go much higher, and here's why. This was the first iteration. It does work.

If we can come up with a biomarker which shows who exactly is going to have it. But right now, if you have early onset, this is what will happen. If you have parents who have early onset, you will ask to be put on this immediately.

This is a very big win for Eli Lilly. It went down initially because people were concerned that maybe it'll break the bank of Medicare. But the fact is, they own it, they're gonna continue to push it, and they're the winner in the category.

Jeff Marks (1:09)

And of course, we're talking about positive phase three results from their Alzheimer's study. Now you have good results from Lilly, Biogen as well. Many people believe having two good positive drugs that show that they work will get CMS coverage. And that's really the big thing here. That's a big reason why shares are up 4% to a new high.

Jim Cramer (1:28)

I mean, if you have a pair of Alzheimer's, you'll wanna take it.

Initially, I might work with the Brain Foundation. People say, look, you're talking about a year to two years where you push out.

But remember, if you're 68 and you can get to 70, I mean, you're gonna push out, you want that push out. So don't forget, that's going to be the tension. Danaher, meanwhile, a read-through, you need their equipment to do this. A lot of people sold Danaher because the only thing they felt was that for the IPO market doesn't get better, they're done for. Obviously not true.

Jeff Marks (1:58)

No, of course, on their conference call, they called out GLP-1s, that's gonna be Manjaro, by Lilly or Zempik, with Govi from Novo. And they called out Alzheimer's, this big tailwinds to their biologics business, which is that GE business that they acquired, the life sciences business they acquired from GE.

Jim Cramer (2:15)

By the way, Novo Nordisk is also working on this. That's another company that's sucking up all of the machines.

So I believe that it's hidden. How good things are going to be. It's a second half story. I like it.

Jeff Marks (2:25)

Oh, absolutely still.

But good to see a very strong bounce back. Almost recovered all of its losses from last week.

Jim Cramer (2:30)

And I think it's continued to go, because as we recognize that the biotech market comes back to all of the stocks at 300

Jeff Marks (2:35)

And the separation later this year.

Jim Cramer (2:39)

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_3 (2:54)

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