Cramer's Morning Take: Procter & Gamble 4/21/23

Jim Cramer (0:02)

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

I was afraid the market would fall fast because Apple was down very badly before the opening, because we saw, obviously, Tesla. But you know what, Jeff? We got a really interesting conference. We got some big readings from PMIs, okay? Very important. At the same time, we have people like Loretta Mester, who's been way, way on the hawker side, starting to say, listen, after the next hike, maybe we should pause. So you have what a lot of people say is best of all possible worlds, some decent numbers and the Fed might be done.

Jeff Marks (0:37)

I think so. There's definitely this camp, one more and pause. But the recession crowd just grows louder and louder every day. So when you get a good PMI number, at least that can counteract that.

Jim Cramer (0:48)

What was me, credit crunch. Now look, what's really happened? These mid-tier banks did not do well.

They just didn't. They were the, look, they were the, look, JP Morgan was the winner of the donor here.

Jeff Marks (1:01)

And that was weighing on Wells Fargo, which has had such a strong week, giving back some gains today, but not nearly. It's still on pace for a positive week here.

Jim Cramer (1:10)

But speaking of on pace, when we were signing bottles in Boca Raton, people kept asking me, this was a couple months ago, what's my favorite stock? And I would say Procter. And the reason why is really important. Procter raised price everywhere.

But this is an elasticity argument. Even though they had volumes that were not as good as we would have liked in certain categories, Jeff, pricing power for big brands, what does it say?

Jeff Marks (1:35)

Absolutely. It says they have it. Pricing was up 10%. Volumes were down three. But keep in mind, last quarter they were down six. So a nice sequential improvement there. So look, when a company is raising pricing, there's always this notion that they're gonna lose too much on the volume side. And it's not enough of an offset. But I'm good with volumes only down three.

Jim Cramer (1:57)

Well, because if you queue over queue, not why over why, as we say, you'll see they took price and some of those commodities have come down. I've been saying over and over again.

Jeff Marks (2:07)

Starting to see some of that.

Jim Cramer (2:07)

Commodities are coming down, but they don't have to lower price. That's, you know, they take share and you get this. And just so you know, when you see this, and Kimberly's up too, which is a mistake, because I think they're taking share. When you see this, you must be thinking, you have to be thinking this. There are a lot of analysts who got the Procter & Gamble number this morning as we did at quarter seven, and they have not had a chance to redo their models. When they do redo their models on Monday, I think you're gonna see a second day. So don't sell.

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