Cramer’s Morning Take: Inflation Breakdown 5/10/23

SPEAKER_1 (0:00)

Okay, text from the wedding planner. She's talking about a cake pop mural.

Jim Cramer (0:05)

Ah, exciting.

SPEAKER_1 (0:07)

Ooh, it's $8,000. I don't know, we're trying to save for a house.

SPEAKER_3 (0:12)

Well, you only get married once, or twice.

SPEAKER_4 (0:15)

The three time stops.

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Jim Cramer (0:33)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting.

This morning we had a series of numbers, CPI numbers, and they all showed a cooling.

Nasdaq's reflecting that, they all not. Yesterday John Williams, very important person of the Fed, said, listen, we don't know what we should be thinking. How about this? In the worst period of the Federal Reserve, which was Burns, they kept changing every time they saw one good month. PAL is not that way. Is it possible that this is a month that we should just discount as being good for the Fed, and next month could be bad, and so therefore we can't take this as seriously as we'd like?

Jeff Marks (1:18)

Sure, I mean, I agree. We're gonna have another CPI print before the next meeting as well. So, yeah, I think so, and we're still trying to understand, too, the impact from the regional banking fallout and the tightening of credit conditions that happened from that. But there were some encouraging signs in CPI, most notably shelter, finally month-over-month growth, moderating.

And we also have rates now. We have the Fed funds rate five to five and a quarter, CPI year over year, four, nine.

Jim Cramer (1:47)

Right, yes.

Jeff Marks (1:47)

So we finally have tilted the scale.

Jim Cramer (1:49)

And what I like to go through is the point by point. Now, CPI for rent, a lot of the projects that were on hold before COVID are now coming due and they're being finished around the country. That doesn't mean there'll be new things built up, but there's something else going on here. Used cars.

When you try to get credit from a bank, it's easier to get credit on a new car than a used car because how credit's tightening. So you see new cars going down in price versus-

Jeff Marks (2:16)

Why do you think that is? Is that the residual value on a newer car is more than on a used? There's finally a flood of cars.

Jim Cramer (2:21)

And the manufacturer's suggested retail price year over year is now real before there had been a surcharge added. That's now gone.

That's the reason why that line is going down. So I can betray- What you're trying to do is portray a trend line. Could this be the first of many good ones?

Start your day with my outlook on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_1 (2:54)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Cramer on television, radio, internet, or another medium.

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SPEAKER_3 (3:37)

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