Cramer's Morning Take: Retail Sales & Semiconductor Stocks 10/17/24

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'm going to be a little bit of a bummer here, because the market is really screaming. But if the market were to look at interest rates this morning off of retail sales, which were better than expected, you would say, well, wait a second, we shouldn't be buying, maybe we should be taking profits, because the yields are surging here. And that's going to derail a lot of what we were hoping for.

Jeff Marks (0:31)

Yep, yields are surging. Maybe trying to make an argument that the Fed doesn't need to move at the November meeting. I know that it's still leaning towards a 25 basis point rate cut. That is the market. But we'll see. We'll have some jobs data in between. But yes, yields are higher.

Oscillators are starting to creep up as well. To overbought territory.

Jim Cramer (0:55)

Yes. Look, I'm not saying that one of the things I always like to take off the table is anything cataclysmic. I'm just saying that this is one where I was hoping that the rates would go down on, that retail sales will be slightly weaker to verify that we do need a rate cut. I do think that the market is building in a November rate cut, and the number we saw today says you should build that in. So I point that out again, just because everything is going our way here in terms of our portfolio, but I get nervous and concerned when everything goes our way. When everything is against us, I like it because I know that we have to do some buying.

Jeff Marks (1:29)

Yeah, looking for opportunity. I mean, a good example, I would say, is the other day you had an ASML report, a day early by accident, no less, and the bookings numbers were horrible, and it caused a big sell off in the semiconductors. Even though ASML did say that AI was the point of strength, it was the other markets where the recovery is sluggish, but Taiwan Semi reports overnight.

Jim Cramer (1:52)

And Taiwan Semi is, but when you think of Taiwan Semi, you should be thinking NVIDIA, you should be thinking Apple, and you should be thinking AMD. Now AMD, we've gotten some questions about why we like AMD. AMD is the only one that hasn't moved versus the, I think the things that can go right. That's still a bargain.

Jeff Marks (2:12)

Yeah, you have NVIDIA, these are, you know, all-time highs. You know, Broadcom as well, maybe a few dollars off the all-time buy.

Jim Cramer (2:21)

Broadcom is the unsung horse of this move.

Jeff Marks (2:24)

Yeah.

Jim Cramer (2:24)

A hawk tan doing a tremendous job. Look at that. So, you know, we've got the right stocks, is my view. Got the right stocks. 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_3 (2:46)

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/investingclubdisclaimer.