Cramer's Morning Take: P&G 7/31/23

SPEAKER_1 (0:00)

What do you see on the horizon for financial markets?

From uncertainty to opportunity, PGM can help you rise to the challenges of today, when disciplined risk management is needed most. With $1.2 trillion in AUM and deep expertise across asset classes, our investments shape tomorrow, today. Pursue your tomorrow with PGM, a leading global asset manager.

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. I've got to tell you, stocks, once again, new week. I see a lot of companies that have been going higher, continuing the parade, some like Proctor to some degree, or Adobe to others.

We've got a lot of people who are opining on the month and the year, and I've got to tell you, I think that they're still too tepid versus the reality.

SPEAKER_3 (1:03)

Yeah, well, let's think about what has just played out. So you have one strategist, Goldman Sachs, pointing out market not rewarding big winners that reported upside surprises and earnings.

Microsoft comes to mind, ServiceNow, Netflix is another one, Tesla. On the other hand, Morgan Stanley, who has been very negative on the market, compares this rally to 2019, which was after a down 2018 year, and stocks continue to rally. You had an S&P up almost around 29% for the four-year. It was a great year, but what I loved in the article that you put out last night is block out this noise, focus on what companies are doing, listen to what they're saying, how they can improve margins, the self-help that's happening, and what they have, and the direction that they see their businesses going. Because that's how you make money. Right.

Jim Cramer (1:51)

One of the things that strategists are focused on is what happens when the Fed raises rates and you have an inverted yield curve.

And what Proctor & Gamble is saying, what happens when you innovate and when you have a good go-to-market strategy and when you have good pricing value, and it means you win.

And what they're talking about, and I think this is emblematic of what's happening in corporate markets, they've been through three really bad years, okay? Where half of their profits were wiped out by supply chain and by labor costs and materials. And now that's over. In the meantime, the strategists are talking about, well, what happens as the Fed makes rates go higher? And it's these two parallel universes, and one is very ethereal and academic, which I've always had great disdain for. And the other is, let's roll up our sleeves. And you roll up your sleeves. See, you catch this, as I'm very grateful that we have, because we tuned out the Fed.

Why? Because Mueller, who is the CEO of Proctor, tuned out the Fed. What he wanted to do was to be able to maintain price point as his raw costs went down. And he's talking about an $800 million tailwind in the second half of the year. Well, there's no factoring in of the tailwind when you listen to these strategists. You know why? Because they are model-oriented. They don't go down the hall and say, this is what Lee Cooper used to do when he worked at Goldman. How's Proctor doing? How's International Paper doing? What are you hearing about Microsoft? They don't do that. They're ivory towering, they're cloistered, and they're going to have a tough time turning on my show.

Start your day with my outlook on the market. Every morning, visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_4 (3:43)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet, or another medium.

No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment, or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com forward slash investing club disclaimer.

SPEAKER_5 (4:26)

Pandora makes it easy for you to find your favorite music.

Discover new artists and genres by selecting any song or album, and we'll make you a personalized station for free. Download on the Apple App Store or Google Play and enjoy the soundtrack to your life.