Cramer's Morning Take: PCE Inflation & Salesforce 2/29/24

Jim Cramer (0:01)

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

Jeff, you know we've got kind of a, what I would say, a very, very big day if we pull this off. And the reason I say that is because the big numbers, the PCE and the PMI were cool and weak enough that we can actually start going back and thinking that the Fed might be able to do two cuts instead of one. And that's why the NASDAQ's moving up.

Jeff Marks (0:34)

Yeah, you know, look, my view on PCE, I think it was a little bit hot still, but in line with expectations, because expectations had been moving up after CPI and PPI were hot.

Jim Cramer (0:47)

44 PMI.

Jeff Marks (0:49)

Yeah, well, that's the issue, right? That's the big question, right? You still have perhaps some sticky inflation with some areas of sluggish economic growth, but the job market is still really robust, and it is a consumer economy.

Jim Cramer (1:03)

Right, and that to me is what matters. That's one of the reasons why I've been saying don't expect more than one cut, because we still have a growth market when it comes to employment. Nothing I've seen disputes that. And just to be sure, remember, there's now an underground economy like we used to have before President Trump, an underground economy of 8 to 10 million people who have come to the country, some legal, some illegal, who are now propping up the country, although they're driving up the price of rent, propping up the country because they take the jobs that had been going bang for a long time. Just an important thing I watch because I'm a small business person in real life. Now, I want to talk about a stock that should be up more than it is, and that's Salesforce. It's one of our key positions. And the reason I say that is because I've not talked to Mark this bullish.

Mark had been saying, and this is the major takeaway. People don't understand it. Mark had been saying that the enterprise had held back in spend.

And he's saying that that's totally 180 degrees.

Jeff Marks (2:06)

Yes.

Yeah, no, he's talking about green shoots. A lot of the green shoots is related to the data cloud, which is now their fastest growing cloud in company history because it's so lever to AI, whether it's through, you know, MuleSoft unlocking data, trap data from some legacy platforms.

Jim Cramer (2:26)

He used that term many times, trap data.

Jeff Marks (2:29)

Yeah, Tableau, which provides analytics. And these are two acquisitions of Salesforce years ago, which are finally paying off.

Jim Cramer (2:36)

Right, no, just in terms of trap data, what he's saying is that when you're Salesforce, you have all your data. Data is the gold, okay? He feels that when you have Snowflake, you have some of the data and you don't have the rest. Amazon Web Services, some of the data, not the rest. You need to have the full picture in order to have the single source of truth, and that is going to drive the company, and he's right.

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