Cramer's Morning Take: GDP Report 1/25/24

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.

I've got to tell you, there is so much to go today that is very difficult to get your arms around, because you have companies from whether it be the rails, you have the chemical companies, but you have communications, and you have ServiceNow, and you have IBM, and also the airlines. And my summary, my glib summary of all these is, it's gotten a little hot for me.

Jeff Marks (0:34)

The rally.

Jim Cramer (0:35)

Yeah, because the good are going up with the bad, the companies that don't really have real growth are soaring.

And so I get nervous that people should be taking away two things. One is there's a little too much exuberance, but two, the idea of the Fed cutting anytime soon is now ludicrous. After I saw the rails, after I saw the airlines, the chemicals, the papers, technology, travel, leisure, there's absolutely no reason for the Fed to cut. And I wish the Fed, in retrospect, had never said that they were done.

Jeff Marks (1:08)

Yeah, this comes, you know, you had some pretty decent GDP numbers today, 3.3 versus 2% estimated, the price index was lower than expected. So certainly supportive of this soft landing thesis.

But to your point, though, it has, you know, it's a record rally in the markets, it's extending its gains, getting a little, perhaps, longer too. I mean, it's how many days in a row can the semis go up? The tech stocks go up.

Jim Cramer (1:32)

Right, on the same news. I mean, look at AMD, which I happen to love and feel bad about, but we did move into Broadcom. I mean, AMD is good.

And it makes me, frankly, give pause to Broadcom. I mean, we have now, Broadcom's a very big day. Broadcom's now a top, what, six largest companies.

Jeff Marks (1:50)

It's remarkable, the run that it's had. It's had a huge move, you know, making new highs, good dividend, a lower multiple relative to other ones, too.

Jim Cramer (2:00)

It does do work with Nvidia, which people like very much.

Jeff Marks (2:03)

The VMware, that was a home run deal for that.

Jim Cramer (2:05)

That was a home run deal.

We saw, by the way, Tim Archer, the CEO of Lamb Research, moving to higher end of the food chain for the capital equipment companies, so semis.

Nvidia has some Nvidia business. And Nvidia is touched by an angel. That's what Nvidia is right now. And I, at a certain point, say, yes, I understand this. They actually are making money. ServiceNow, they are making money. Amazon is making money because of inference. And what people have to understand with inference, that's that you bought a pair of sandals, and then you see 17 Birkenstock ads. That's inference. That's Nvidia.

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