Cramer's Morning Take: Jobs Report 12/6/24

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Jim Cramer (1:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. We have seen a market that frankly has taken over by the bulls in many different sectors kind of rotating, but today it's a broad participation. We've got the NASDAQ doing very well. We've got the S&P doing well. And, of course, the DALs have been one of the things that is allowing that to happen is we got at 830 this morning an employment number that frankly is very strong without a lot of new inflation, though, kind of planned inflation with more jobs. And that gives the opportunity of the Fed to cut when they do meet. And I think that what's happened is that we now favor a heavily favored 25 basis point rate cut at the December 18th Federal Open Market Committee meeting. 80% chance that will happen. That unleashes a lot of opportunity because there we feel that, you know what, it's all kind of in the market that we get it. No surprise, when we have no surprise, that allows us to, let's say, have the animal spirits kick in. Let's go over the numbers slightly strongly expected, 227,000 jobs. The estimate was for 220,000. Revision is for prior two months, plus 50,000, not minus. Unemployment rate did tick up to 4.2% from 4.1, so that gives the Fed cover to be able to cut, if they so want to, and I think they do. Labor force participation rate dips from last month. Again, that's an opportunity for the Fed to be able to say, listen, it's time to cut rates. Hoursly earnings increased 4 versus 3.9. I expect that that's in line. The reaction immediately from the bond market was that rates went lower. Now, this is very important because obviously rates have been going down, down, down, after that spike up, when the Fed gave you the double rate cut. This is now getting to a more normalized position, very similar to what we used to have in the 1990s. Yes, you have to go back there that far to realize that that was the pattern. The industrials are not liking these numbers, just so you know. For instance, our DuPont, it just can't seem to budge on these kinds of things. I think that that's an opportunity. We do have a rolling bull market today. It just seems to be that we're getting a lot of froth and some other stocks I'll mention later that are doing well.

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