Cramer's Morning Take: Jobs Report 10/6/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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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. I want to get right there to say that when I was in economics class, I always heard if there could ever be a moment where you could have good wage growth, not terrible wage growth, but good hiring, so you didn't have, you know, plus two wage growth and they create a lot of jobs, that's nirvana. Well, that's what we have, but it's not nirvana if you're the bond market, which we want to see bad wage growth and also layoffs, and the bond market's not appeased, so that makes it so the stock market is not appeased.

Jeff Marks (1:07)

Sure, but look, to your point, it was a re-acceleration in job growth, the average hourly earnings of 0.2% month over month, it's the softest month over month increase since Feb, 2022, so it is kind of a little bit of a Goldilocks from that end, but still you're seeing a big sell-off in the bond market, which of course is causing yields to spike and stocks down, but look, the futures at one point looked much worse than this. We're kind of hanging in there, which I think is a good sign.

Jim Cramer (1:36)

Right, although it's early, and I think that there are always people who are going to say that if the bond market's bad, then stocks must be sold. Now, I don't agree with that. I think that you have to say each tub on its own bottom. I think the tech is very good in this environment because if you don't have wage growth, then you don't have a lot of inflation.

And if you don't have a lot of inflation and you don't need to borrow, then you're fine.

Jeff Marks (2:01)

Especially if that's leaning in the companies who are profitable, generating cash flow, more wary of company that may need to raise sell stock, Verizon, or I was even going to say just in the tech bucket, Rivian, they did the convertible bond offering. They needed some money to stockpile it after that.

Jim Cramer (2:20)

Now what's interesting is that this demonstrates, this is the companies, the large cap companies that don't need cash, right, don't need it. And this represents companies, many of which need to refinance.

So you get this kind of disparity between the companies that really need money and the companies that just say, listen, our balance sheet's fine.

Jeff Marks (2:42)

And you know, I pointed that out in the Dupont trade yesterday. They have no debt maturities out to 2025 So they don't need to refinance any debt. Obviously, you know, the cash comes in, they like to use it aggressively, buy back stock. They did that ASR.

So looking for companies as well with pushback maturities.

Jim Cramer (3:01)

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SPEAKER_4 (3:15)

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