Cramer's Morning Take: Jobs Report 5/5/23

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

Got to tell you, we have a very strong market. And you might be surprised, one of the reasons why we have a strong market is the employment number. But if you look at the actual number, it was strong. However, you must average things in, because unlike a number that's generated, say, from a technology company, the Labor Department is historically poor at doing its job. And Jeff, they left us with a number that frankly is ho-hum.

Jeff Marks (0:31)

Yeah, absolutely.

There was a negative revisions of minus 149,000 over the prior two months. So if you add it in with April's gains, you make a net 104,000. But wage gains still a little high, a 0.5% month over month. Still too high. First 0.3 expected.

I guess still haven't seen the impact of all these layoff announcements yet hitting the job market. People are still finding jobs.

Jim Cramer (0:54)

And what's interesting, though, is that we're in a situation where when you see the NASDAQ up, that's been the proxy. That's gotta be, when that's down, then there's a lot of bets that we are going to be that the long bond, the 20-year is gonna be right with a 3.3, 3.4 yield.

I think that this point blank says it's not gonna happen. Anyone who thinks the Fed's gonna cut this year, you can't cut when you're raising.

Jeff Marks (1:16)

No.

Jim Cramer (1:17)

We say you can't have a meeting where you, I'm cutting and I'm raising. Doesn't work like that.

These are numbers that are strong enough to have still one more hike.

Jeff Marks (1:24)

Absolutely. So the beginning of the week, you outlined four market hurdles. The first one was the Fed hike, second Apple earnings, third jobs report, but the fourth one is perhaps, you know, the one that's gonna hang with us for a while, the debt ceiling crisis.

Jim Cramer (1:37)

Now, you are oversold, we're minus three.

We're gonna come in Monday, it's gonna be Warren Buffettville, historically you get the meeting on weekend, it's gonna be very, very bullish because that's who he is. And then you get a nice lift on Monday, and you sell into Monday in order to be able to that raise enough money to be able to handle a debt crisis that is gonna be very negative for the stock market.

Jeff Marks (1:58)

Yeah, and it definitely helps today that we're seeing a big rebound in a lot of regional banks. JP Morgan upgrades a few of the higher quality ones, and that sentiment spreads itself throughout the market, helping a Wells Fargo as well.

Jim Cramer (2:12)

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