Cramer's Morning Take: Home Depot 11/13/24

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.

Now, this morning, the S&P opened higher. It looked like it's gonna be a pretty good day. Why? Because the CPI was in line. Now, I want people to understand that there are watchers and people who constantly look and say, well, the tenure is down in price, up in yield, so therefore we should sell. And what I'm trying to get people's heads around is use these little fluctuations as opportunities to buy. Home Depot.

Jeff Marks (0:35)

Perfect example. I had a great quarter yesterday, a beat, a raise. Comp's looking a little bit better, though still negative. But it was down yesterday, not because of what anything the company had said or did, but really it was because what was happening in the bonds, the ten-year surging.

Jim Cramer (0:50)

And we know, you know, those who actually bothered to read it, October was good. This is an inflection quarter. And what I think people have to start thinking about is not what the tenure does, but what the franchise does. And that's very, very different. Now we have a kind of rollover in bonds, which is why we've seen this downturn.

Jeff Marks (1:09)

You had CPI in line.

Jim Cramer (1:10)

Right. But I don't think we should be thinking anything other than that this is a reason why Powell can cut. And that's what he's been waiting for.

Jeff Marks (1:18)

Well, that's where the odds stacked up for December. Now tracking at a 82% probability for the CME Fed tool. It was high 50s yesterday of a 25 basis point cut in December. So we'll see. Remember, at least in the example with Home Depot, yes, mortgage rates track the longer end of the curve, but if you're looking for a HELOC, that's the shorter end. So you'll get benefits from a cut there. Right.

Jim Cramer (1:42)

And now the number that really is disappointing in the CPI was housing hasn't come down. I think we've all kind of understood that the idea of raising mortgage rates failed. And the reason why it failed this time was because everybody had those low mortgages, so nobody offered their house. We need to have more turnover in order for people to say, you know what, I see stock prices, I see housing coming down. And that's when they'll move and not until then. That's what I'm hoping will happen with lower rates. It's a little counterintuitive, but I think it'll happen. 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 (2:29)

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