Cramer's Morning Take: Rising Oil Prices 9/6/23

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Jim Cramer (0:33)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club Morning Meeting.

Once again, as I keep saying, and what I also mentioned in Twitter, if interest rates don't come back down, if oil doesn't come back down, we are not able to rally. Right now, we're in a mode where people are trying to figure out whether that can happen, but then as that gets spoken, it's not going to happen.

Jeff Marks (0:56)

Yeah, and interest rates initially were a little steady on the day, maybe a little bit of dip, but right when that ISM services number came out at 10 a.m., very strong, we saw a yield spike that put some added pressure on the markets.

And same with oil, by the way. You had oil initially was slightly down, that reversed positive, so that's a headwind to the market as well. And now we're starting to see companies warn about the impact of higher oil prices, Southwest Airlines this morning.

Jim Cramer (1:23)

The Southwest news was devastating, I felt, for the industry. Now Southwest has been poorly performing for some time, but at the same time, what could afflict them could afflict everyone. Now, just so you know, I think people have to recognize the Saudis like Biden.

But the Saudis have a good relationship with the Republican Party too. Saudis are not at war with anyone in terms of what they want. The United States wants higher oil if you're from Texas. So there's no real consensus to keep this thing lower other than the fact of maybe not wanting to have a worldwide recession, which should matter.

Jeff Marks (1:59)

Yeah, and I think it should call out too, just going back to Southwest for a moment, they said August leisure bookings were on the lower end of company expectations. That may pressure some traveling leisure stocks today, but I think it's also good to mention that not only it was that, but it was oil, but it was also fuel prices, but also on the booking side.

Jim Cramer (2:18)

These are hidden illnesses for many of our companies. I'm not denying it. For an Emerson hasn't hit yet, for Caterpillar.

But I think that you have to stay the course because a lot of our companies are deeply related to infrastructure spend, which still hasn't left the states, but will help us. Look, this sell-off is warranted. And it's warranted because we've had a lot of stocks move great too. And we've gotten overbought. And what happens typically is we have a bit of a sell-off. I'm not saying it's going to be anything really, really serious. But I did say in our weekend piece that September is a terrible month. Down 0.7% on average. I'm not going to buck that.

Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_4 (3:11)

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