Cramer's Morning Take: Morgan Stanley 9/19/24

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. We got what I think was a realization this morning that we have growth with declining inflation. That is perhaps the most bullish scenario there is. So therefore, we're seeing widespread buying, tech, discretionary, communication services, materials, and industrials. And, Jeff, there's only a couple of laggers. So the ones that we've been telling you had to get out of.

Jeff Marks (0:32)

Yeah, no, absolutely. And this all goes back to the Fed cutting interest rates by 50 basis points yesterday. It was a big debate. Would they do 25? Would they do 50? They did 50 And, you know, initially yesterday, there was a little bit of a pullback. Perhaps there was someone that was concerned about the economy. But we had some data this morning, initial jobless claims hitting the lowest level since, I think it was mid-May. So it's still a good sign that the economy is still doing well. So you're seeing a lot of, I'll call it more like risk on activity. The semis are leading the charge this morning. It's been AMD, who you had on last night.

Jim Cramer (1:08)

Boy, I've got to tell you, Lisa Su is the most bullish. I've heard her, what she's saying. Obviously, there's room for two. There's tremendous demand for the for AI, but also for her Turin chip. That's the most latest chip that would be used, perhaps, in the artificial intelligence PCs. Look, I think she's really taking it to Intel. I think there's a lot of news about Intel today. They're not going to sell the Mobileye. Every single day, there's news about Intel, except for the one thing I want, which is robust sales. And that's what Advanced Micro has.

Jeff Marks (1:36)

Yep. Now, at the same time today, we are seeing a big rally, S&P, all-time high. Oscillator was still overbought yesterday, so we did make a sell into this morning's strength, lightening up on some Morgan Stanley, which we've been talking about for about a week now, as an idea to trim as the market goes higher.

Jim Cramer (1:57)

Yeah. First, Swab, which has become more of an analog because of all of what they bought with E-Trade not doing that well. Second, I mean, Robin Hood has taken it to them. This E-Trade buy not being rationalized. Morgan Stanley not being run nearly as well as Goldman Sachs. But I hope it would have been to get out of the last of Morgan Stanley and go into Goldman Sachs, play with an open hand, because I think Goldman Sachs is cheaper and better.

Jeff Marks (2:21)

Yeah, I mean, under the idea that as the Fed cuts, you see a nice up-cycle in investment banking activity. Morgan Stanley, unfortunately, has been more weighed down by the wealth management business, Goldman. More of a pure play on investment banking. And that's one of the reasons why Morgan Stanley has lagged Goldman Sachs, unfortunately, this year.

Jim Cramer (2:46)

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SPEAKER_3 (3:01)

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