Cramer's Morning Take: Nvidia & Pool Corp 6/25/24

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. Let's get started today with the market, where I have to tell you, Jeff, we are still gripped with this Nvidia or BUS get rich quick scheme of many people. Meaning that we have this one stock that everybody's focused on, there's 499 other stocks.

I don't feel the 499 other stocks are getting the attention they should because of this. You know I'm saying this as a huge fan of Nvidia.

Jeff Marks (0:32)

Oh, absolutely. At least we're seeing it stabilize here. You've had three nasty days of selling in a row. That's typically how long some of these rotations could last.

So you are seeing some stabilization, which is good to see. A lot of other negative headlines happening today, whether it's people are viewing what Walmart said at a conference is negative, Q2 may not be as good as Q1, Q1, UNP Union Pacific with some mixed comments as well.

Jim Cramer (0:59)

I'm not taking it out of context. I mean, UNP did say there's more minuses and pluses. So no matter what, even though you can asterisk it's cold, it's really bad, you can asterisk it and say, but no, people just look at it and just say, you know what, what am I doing here?

Things are slowing.

Jeff Marks (1:13)

And people are taking the Pool Corp, the cut to their outlook as a negative read through to home improvement stocks like Home Depot, Stanley Black and Decker, and that people aren't making improvements to their homes, whether it be through Pool or other things. Not putting money into their homes is the way to put it.

Jim Cramer (1:33)

So it didn't seem like that people are trying to build a larger thesis that since my home is not for sale, and it's not going to be for sale anytime, I don't want to put more money in it. Because directly it's been the opposite, just so we know. When your home's not for sale, you tend to refurbish and renovate. So the story didn't resonate well with me about Pool.

I'm wondering if they're telling it as it really is.

Jeff Marks (1:53)

Yeah, I wonder too if they saw a lot of business during the pandemic, right? A lot of people were at homes, they were building pools. Maybe it is still sort of that pull forward they're going through.

Jim Cramer (2:02)

To me, this is very much post-pandemic. You've got a situation where people over... What I like, the term I like to use is that they over-earned.

Pool over-earned during this period because we've never seen anything like COVID. So, now we're on the downside. Everybody who thought about getting a pool bought a pool, did a pool. And now we don't have a lot of people who say, well, listen, you know what? I'm going to just continue. Wow, what a great time to have a pool. Maybe it's a great time to travel. The numbers for travel. Remember, these are discretionary purchases. What we're going to do? Are we going to do experience or are we going to make our home better? The make our home better trade, as we know from RH, has already occurred.

It's already occurred.

And we want Stanley Black and Decker, we can own, as I was going to say on Thursday, as a rate play. Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (3:02)

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