Cramer's Morning Take: Hot Inflation Report 4/10/24

Jim Cramer (0:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. We got a rough one. We did get a CPI number that was too hot. Now, understand, these are all against expectations.

Jeff and I felt that the economy is very strong, and we would have a hot number. So, we kind of are troubled by the people who got it wrong and are therefore selling.

They are, quite frankly, ill-advised, because they're unaware. And, Jeff, what I see when the people who are unaware are in control of both the Mike and also the futures, what they do is they flail wildly, and I see a lot of wild flailing.

Jeff Marks (0:40)

Yeah, I mean, look, I think if you just look at the day, though, yeah, it was down more than 1% very early on, and it's still early, but look, looking at NVIDIA doing a little bit better today. A lot of the stocks that were down yesterday, big year-to-date winners, momentum stocks, they're actually holding in OK, NVIDIA, Lilly E.

Jim Cramer (0:58)

They've corrected ahead, and obviously NVIDIA is not hostage to the short rates. I mean, people should think about whether the companies are hostage to short rates or long rates, but the problem, Jeff, is that if you don't know what NVIDIA is, how would you know whether it's hostage or not?

Jeff Marks (1:13)

No, of course. I mean, you could look at today what's down the most today, utilities, real estate, bad balance sheet companies. Those are going to be...

Jim Cramer (1:19)

Warner Brothers Discovery.

Jeff Marks (1:20)

Those are going to be hit the hardest when rates pop. You got the tenure at 4.5.

Jim Cramer (1:24)

Those are the companies that are going to struggle with higher rates because they went stupidly and borrowed a lot of money.

Jeff Marks (1:29)

Right. But just because the tenure goes from 4.4 to 4.5, it doesn't mean Microsoft is slowing down their pace of data center build out.

Jim Cramer (1:37)

You can have sell-offs. I mean, I mentioned earlier this morning that Caterpillar just is up 25%. I think Caterpillar has de-cyclicalized. That's a Jim Umphalby term.

But it's also up 25%. So, you know, I mean, you can see people taking profits. It's also a long day.

Jeff Marks (1:53)

No, for sure. I mean, look, we had a 1% pullback last Thursday, right? Things were looking a little bit hairy. Then the jobs report came out, and we had a nice rally. So, I mean, look, I think the market is...

Maybe it's struggling right now to find some footing. We do have earnings coming up. That's obviously going to be very important. The biggest driver of stocks, I would say, is earnings.

Jim Cramer (2:14)

Jamie Dimon's on record saying, look, it could be 2%, it could be 8%. Well, I mean, if you're Jamie, you come out with the 8%. Look, Jamie is a person who is...

Well, let's talk about him for a second.

Jeff Marks (2:26)

I think that's like the risk manager in him, right? Jamie is saying, I'm not going to blow his bank up.

Jim Cramer (2:31)

We're not blowing his bank up. And that turned out to be the greatest call. That's why he stole First Republic.

He's very calm. My friends who work with him are always amazed that he's just a thoughtful risk manager.

Jeff Marks (2:44)

Absolutely. And you have JP Morgan Friday, Wells Fargo Friday.

Before that, STZ, Constellation Brands tomorrow.

Jim Cramer (2:51)

Let Wells sell off $3 and then you buy it.

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SPEAKER_3 (3:08)

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