Cramer's Morning Take: Market Rally Stalls 6/20/23

SPEAKER_1 (0:00)

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

Jeff Marks (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.

Jim Cramer (0:15)

The three time stops.

SPEAKER_3 (0:16)

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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.

What I'm concerned about, and it's actually, I'm in sync rarely with Mike Wilson, the most perished strategy on the street, but I do think that we've come about as far as we can, given the fact that we have a minefield of many fed people who are speaking. We've got Powell on the Hill for two days. The idea that there can be a repartee about how we have to have a recession or be able to beat inflation, I think it's gonna be front and center.

The only thing that I thought that was really not in keeping with the script that I laid out was that the housing stocks were far better than people thought. And I've been saying, including that memo, that the reason why that inflation is so intractable is point blank because rents are high.

The housing prices were in the CPI until 83 when people thought that what had happened is just, geez, that's 40 years ago. What happened is it was just 20 numbers. It's the opposite. If we had homes in the CPI, you would see exactly how hot things are and how it must come down. So I'm with Wilson for the week. We are overbought, not as bad as Thursday. But when you wanna see what disappointment looks like, just take a look at Danerhur. I mean, it's not even the culprit here. I think Danerhur is probably something you would buy if we were not waiting for more down prices, Jeff.

Jeff Marks (1:58)

Yeah, and we've been raising cash last couple of weeks, getting cash to around 9% ahead of what could be a little bit of a short-term pause in the market. But you mentioned Danerhur, that is down today after the German bioprocessing company Sartorius cut its ex-COVID outlook from high single-digit growth to a high single-digit to low-teen decline.

The same themes that we've heard from Danerhur the last time they reported, inventory de-stocking taking longer, lower level of investment activity. Now, the one thing I would point out is that the last time in Q1 earnings season, Sartorius actually, they missed, but they maintained their full-year outlook.

That's different from someone like Danerhur who actually cut. So one could argue this is Sartorius catching up to the rest of the group, but still a disappointment nonetheless. Not a lot of visibility into these bioprocessing trends.

Jim Cramer (2:53)

Yeah, and Jeff, at the end of my piece, I talked about the notion of a couple of companies missing and how shocking it is. Danerhur doesn't miss, okay? They just don't miss. They've missed twice. J&J usually doesn't have this problem with Tau.

Estee Lauder never misses, and they missed totally twice. So I think that the second time that Danerhur missed is what makes me think that these guys are just trading down with Sartorius mistakenly. But you know what? Jeff, I have no appetite to buy it.

I, not right now. I think there are more people who want to get out of it. It's had a little move off the bottom. And we have to be very judicious when we buy our next Danerhur. And we have to make sure that we have something to hang our hat on. We don't right now. Start your day with my outlook on the market every morning.

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SPEAKER_1 (3:50)

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