Cramer's Morning Take: Home Depot 11/12/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. You know, something, Jeff, periodically you'll have a run like we've had, and then out of nowhere, you'll wake up and interest rates go higher. And people still are, they're not complacent. When interest rates go higher, they say to themselves, well, you know, we do have a Trump trade, but we have to temper it a bit. And that's what's happening today, I think.

Jeff Marks (0:28)

Yeah, and the bond market was closed yesterday, so we're seeing more of an impact today. Yields are rising. You had the 10-year yield almost at 4.4%. It's come off a little bit since then. But you had the two-year yield, highest level since July 31st.

So yeah, it's a headwind to a number of stocks. I think like even Home Depot, which had a very good quarter this morning, a beaten raise. The reason why it's not higher is because of the bond market.

Jim Cramer (0:54)

Sure, but I think this is a great opportunity to buy more Home Depot. We did some today. I am anxious to buy more. I'll tell you why. Last bad quarter, housing stock getting older, the HELOC are lower rates and the Fed is going to lower rates. This is an opportunity for people. It should not be down.

Jeff Marks (1:12)

Yeah. I think your point about HELOC very well taken. That's the home equity line of credit. So those are going to follow the short-term rates. So the Fed cuts will have a direct benefit there. Now, we have seen a rise in longer-term rates and mortgages. That's going to take some time. But management argued that even a stabilization will have a positive impact too. Remember, anytime you get mortgages under 6, that's when you start to see activity pick up. And that will unlock a huge amount of pent-up demand for projects, which they talked about on the earnings call. But we just need to see housing turnover. It's at a 40-year low. It's about 3% of homes.

You need to see that pick up a bit. But it's the bottom, right?

Jim Cramer (1:56)

Right. And that's why, I mean, you're getting a gift here. I mean, maybe this thing falls a couple. But you know that we have a small position.

Jeff Marks (2:04)

It's still only a 2% after the buy.

Jim Cramer (2:06)

Up 17%, I would like to own 3% because I think that this is a remarkable opportunity to be able to go into a rate cut cycle still. And you don't have any international, not worried about China. But it's just a very good opportunity.

Jeff Marks (2:22)

And we did see a positive impact from the hurricanes, positive impact in Q3. There'll be that in Q4 as well. But again, it's...

Jim Cramer (2:31)

Well, this plan out an old interest rate because when this number was reported, it was up 8 I think that I want to continue to build the position for all the different reasons we just gave. Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive morning minis every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (3:00)

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