Cramer's Morning Take: Inflation Freakout 2/14/24

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.

Jeff, I felt that yesterday's sell-off was a needed sell-off, you never want one. Any bounce back today is going to have to be affiliated with companies that are doing better than expected, because yesterday was all about the bonds.

Jeff Marks (0:22)

Yeah, and that of course came after CPI was a little bit hotter than expected, mostly driven by an increase in rents, which has been the one stubborn part of inflation for quite some time.

But I don't really think it kind of ends the soft landing thesis. I think it's just one hot data point, plenty of time too. There was a delay in now of when the Fed is expected to cut rates. June is now the betting favorite.

Jim Cramer (0:50)

Now, I will say, for those of you who have taken advantage and veiled themselves up, the oscillator, which you know I think is terrific, and we've got a great deal with market edge, the oscillator, we're not overbought. Had we been really overbought yesterday, I think the decline would have been more significant.

The fact is, is that the last half hour brought a very big rally, and we're doing a carryover from that rally because interest rates are tamed today. Now, does that mean that things have bottomed? It is a long day, but I will point out that I liked almost every single quarter that was just reported, except for Kraft Hines, which was just awful.

Jeff Marks (1:23)

You do have some upcoming tests, too, in the market. PPI Friday, of course, is going to get a lot of attention now, given what happened yesterday. But at the same time, you do have Fed President Austin Goolsbee.

He's basically saying, don't worry about one hot data point. He reiterates the Fed will cut before inflation even gets to two because if they stay restricted for too long, then they have to worry about the employment side of the dual mandate being inflation and labor.

Jim Cramer (1:53)

Well, I'm with, tomorrow Waller speaks. I am not with Goolsbee in terms of what the Fed Chief says. I think the Fed Chief is focused deeply on employment.

And if he saw employment go above, he says choose the number four. So the number go over four, then I think he changes his view. But right now, because employment is really incredible in this country, he has the luxury of doing nothing. So he will avail himself of that luxury. So anyway, I did not like yesterday at all.

But that's, you know, how can you like it if the market got clogged?

Jeff Marks (2:27)

Yeah, well, look, I know we were saying this last Friday. S&P up 14 in the last 15 weeks.

Kind of due for a breather.

Jim Cramer (2:39)

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