Cramer's Morning Take: S&P 500 Tops 5,000 2/9/24

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 came to me with a figure this morning, which is that the S&P has been up for 14 of the past 15 weeks, and that is something that we have to celebrate. I know that's always, don't want to get caught in the Dow 10,000, 15, 20,000, but that's a remarkable scheme, truly remarkable.

Jeff Marks (0:25)

Yeah, it's been pretty unstoppable of a run. No breaks, we've had some times, market looked overbought, didn't really hurt things. Buyers have come back, now you have the S&P above 5,000.

We'll see if it stays there, but yes, it has been a big run. A lot of, we've been looking through some of the stocks that have contributed the highest performance since 4,000 to 5,000. A lot of tech names on there near the top, Lilly, another one.

Jim Cramer (0:52)

Nvidia, Lilly, Builders First Sourced quizzically, that's one, I visit one that's near me about 15 minutes away, and you go to these places, obviously, this is for professionals, but there are some unknown names that need to be talked about, because they're places where people made a lot of money. Not unlike the people who work at Costco, you know, they just make a lot of money.

Jeff Marks (1:15)

No, absolutely.

But let's talk about Nvidia, let's go back. You know, there's a story from Reuters today talking about the company maybe getting into custom chip design.

You know, it'd be both an offensive and defensive move, I think, for them. All offensive because obviously it's a 20 billion a year market growing at a 20% compound annual growth rate according to JP Morgan. But at the same time, I think there's a belief that a lot of these cloud customers, they want to do their own custom chips because Nvidia's are just so darn expensive. So, you know, helping them facilitate with those custom chips could help, you know, protect share in the industry. But at the same time, it's notable because this is dominated right now by two players, Broadcom and Marvell.

Jim Cramer (2:03)

Right.

Jeff Marks (2:03)

Broadcom, big customers are Google, Meta. Ericsson is another one too, which was mentioned in the Nvidia report.

Jim Cramer (2:11)

This was down a lot about an hour and a half ago when people were trying to figure out, pin the tail on who gets hurt.

Broadcom is a wily company. They can come up with other ways to make money.

Jeff Marks (2:24)

Yeah, well, you know, back in September, when we really started loading up on shares of Broadcom, there was a report from the media that Alphabet was actually looking to end this relationship that they had with Broadcom. A sticking point was price.

Jim Cramer (2:38)

But I did go directly to the head of Alphabet, and it was a total denial.

And just said, listen, the information source is just inaccurate. I think a lot of us have to accept the fact that what you read anywhere is the standards now of journalism versus one other time, rather extraordinarily low.

Jeff Marks (2:57)

Yeah, I mean, long story short, the stock's probably up 40 to 50% since then. But I do find it interesting. Again, we're seeing this report today, and yet Broadcom, no real negative reaction in the stock.

Jim Cramer (3:11)

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SPEAKER_3 (3:24)

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