Cramer's Morning Take: Megacaps Lifting the S&P 6/1/23

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Jim Cramer (0:32)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

The first thing I want to mention is not to just go right to June, but a little history. May turned out to be a tough month, except for a very small handful of stocks of which we had every one, except for Tesla.

Jeff Marks (0:51)

Yeah, sure, if it was tech or a semiconductor, those stocks all did well, so the Amazons, Meta, of course, NVIDIA, the star of the show, AMD, so many of those, but elsewhere in the market, it was really a struggle. And many, many sectors were down. We do have a chart, the S&P-Versi equal weight ETF, somewhere in there where you can see the difference in the divergence between the two. And that, really, you could see in May, that's really where it started to...

Well, so the S&P 500, of course, is market cap weighted. So the higher the market cap, the more of the weight you have.

So Apple is the largest market cap. But equal weight values every stock on equal footing, right? So an Apple has the same weight as TJX or GE Healthcare. So the moves are more pronounced when the big stocks are doing well in the S&P 500 But the equal weight kind of shows you more of a balanced look. And it's been a down year for the average stock in the S&P.

Jim Cramer (1:57)

Oh, I mean, I carry around things like Footlocker, like a steamer trunk.

I saw some people this weekend made fun of me. That's okay, I don't mind that. I'm a big guy, made fun of for 42 years. But what I would say is that I saw someone last night who's in the business, on TV. He said, how did you get NVIDIA? And I said, the answer is all of these people fade NVIDIA in that first move, because it's up so much. And that's fine, you can fade it, but you have to come back to it. Because NVIDIA is a game-changed company, as were the others that we mentioned. And what's important is that this could easily come down here and it would mean nothing to me.

Nothing at all, because we own, we don't trade NVIDIA. So that's really important. However, when you look at some of the retailers, man, you gotta trade them whamma jamma, which is why I don't like them.

Jeff Marks (2:40)

Yeah, you know, some more tough earnings reports, Macy's, Nordstrom's, Dollar General, Target.

Jim Cramer (2:46)

Nordstrom, Up Little, Target, that downgrade was, you know, in the downgrade, they talked about how the millennials, the kids coming out of college haven't had to pay student loans, mention that could change very much. But also, I don't get into culture wars, because I get it from both sides. But there have been some issues involving the safety of cash register people. And Brian Cornell's not gonna tolerate that, so they've had to try to mute what they're doing in terms of Celebrate K Pride Month. And I think that the boycott's having an impact.

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