Cramer's Morning Take: Rate Hikes & Oracle 9/13/23

SPEAKER_1 (0:00)

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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.

Jeff Marks (0:39)

This number today on CPI means that we will see more hikes in the future or a pause in September, still likely.

Jim Cramer (0:47)

Okay, I think that what this number did was give a bit of a reset. Remember, the Fed got two good numbers in a row, and it looked like things were going their way. I think the Fed wants to wait for six straight months of good numbers.

I think this is a reset. We now have to wait again for six straight numbers, because this wasn't that good. So what it says to me is my view that I talked about this weekend, that there could be two rate hikes, is very much on the table.

It does not mean that the rate hikes, Jeff, are going to be in September, the beginning of another rate hike. What it does say is that this was not a good number, and anyone who thinks it's just gasoline, which is what some people are thinking, and energy, mistaken. That's why this market plunged. The moment that journal, Nick Timmeris, the Fed whisperer, the moment that story hit, the S&P plummeted.

So not a good sign, Jeff. I mean, we have to call it. We see it for club members. I wanted a better number. We didn't get it. That's what matters.

Jeff Marks (1:46)

Yeah, I know still a lot of attentions on Shelter, which did downtick from up 0.4% in July to up 0.3.

But to your point, still a lot of stickiness there, still a Fed split. There is this camp that they could raise it one or two more times because they can always pull it back if there is some type of negative impact to the economy.

But we'll see there. We do have, as you can see, the NASDAQ underperforming slightly. I know one name in focus today, it was initially higher despite being downgraded by JPMorgan. That's Oracle. This comes after the company posted a disappointing revenue outlook Monday night. Stocks up slightly. I guess a good sign to see after a pretty nasty decline yesterday, Jim.

Jim Cramer (2:35)

The worst in 20 years. Now, those of us who watched Oracle over a 40-year period, and it is that old a company, what you have to understand is that the way this stock has traded over time is it will have a very big multiple quarter spike. And then it will have a reset where people say, wait a second, maybe not everything is as rosy as we thought. Not everything is as rosy as we thought is the moment to buy it.

In retrospect, Jeff, the two brokers who upgraded the stock crushed the stock. Because what we've really done is we got a situation where people thought it was going to be a continuation of momentum. We didn't get that, but we do have Oracle World next week. This is a company that very quickly pivots and tells you why things are better than what they said the other day. And that's why I think that buying this stock right here right now will pay off.

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SPEAKER_4 (3:48)

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