Cramer's Morning Take: Market Seasonality 9/28/23

SPEAKER_1 (0:00)

What do you see on the horizon for financial markets?

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Jim Cramer (0:33)

Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. Jim Cramer, Jeff Marks for the morning meeting, exclusive to CNBC Investing Club. We have opened down. I like that. Starting to percolate. I like that.

Kind of held the levels that we hit yesterday around 1:40 PM.

Jeff knows and we've been talking that this is a bit of an hour and every moment. We did test the lows. We did have some exuberance. We don't necessarily have the quarters that we want. Paychex was good. And we had a good quarter from J. Bill, which makes the Apple phone. We had been a quarter from CarMax, but I kind of like the tenor here.

Even though when I interviewed Sanjay Marotra from Micron, he didn't make me feel good. I do feel that we're at a level where we have to do some buying.

Jeff Marks (1:19)

Well, it's interesting because seasonality. Everyone keeps talking about seasonality, August, week August, week September. Well, we've had that. Seasonality has played out throughout the course of the year, but now seasonality is starting to get a little bit better. So I think that cuts in favor. You do have a market oversold of doing a little buying. We're going to be doing that soon, working on those trades now.

Jim Cramer (1:41)

Right.

Jeff Marks (1:41)

Do you want to talk about them?

We can talk a little bit about them. Procter & Gamble's won.

Jim Cramer (1:49)

We sold some 13 higher or whatever.

Jeff Marks (1:51)

Yeah, 150s. I mean, these staples have been absolutely crushed lately as interest rates.

Jim Cramer (1:58)

The yield does not help. The dollar does not help.

People are worried about the margins. I say, you know what? Sometimes you just have to fish or cut big. I think Procter's got it cheaper as a company.

Jeff Marks (2:10)

Yeah, I mean, dividend aristocrat as well. So that's always nice to have. Yes, yields are competition for those dividends.

But look, their input costs are falling. We finally saw that nice gross margin expansion last quarter. Speaking of another dividend aristocrat, another name we've been buying, Stanley Black and Decker. The yield is close to 4% here.

Making progress not only on reducing their inventory, but also taking out costs, fixing their supply chain, should set up for a much stronger 2024 on earnings.

Jim Cramer (2:42)

I really like it. And by the way, I think that if you have this low interest rate mortgage, you're not going to be moving. You'll be remodeling. I know that from speaking to people at Trex.

What another one that we, like it's time for Broadcom.

Jeff Marks (2:54)

Yeah, I mean.

Jim Cramer (2:55)

Enough, we've waited and waited and waited. I mean, we either buy it here or forget about it.

Jeff Marks (2:59)

Yeah, well, we would have liked to buy it on that report last week that Google may be moving away for the custom chip business, but Google came out and said that afternoon that still a strong relationship with Broadcom, nice dividend yield as well.

Jim Cramer (3:18)

That VMware deal, exactly. Now just, you know.

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SPEAKER_4 (3:35)

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Okay, text from the wedding planner. She's talking about a cake pop mural. Ah, exciting. Ooh, it's $8,000.

I don't know, we're trying to save for a house.