Cramer's Morning Take: The Fed and Jobs 11/3/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Jim Cramer (0:33)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. We have what I call a market where we say, did it miss the quarter? Let's go buy it. Now, what's happening really is, is that people are reevaluating companies that reported through a prism of lower rates. We're getting lower rates because we have less treasury next year.

Fed Chairman Powell was somewhat less hawkish. And then this morning, Jeff, I have to tell you that if I wanted to see a number going the right way for employment, it would be this one.

Jeff Marks (1:08)

Yeah, seeing softer data, jobs report was a miss, 150,000 jobs added, looking for 180,000, but big negative revisions in the prior two months, 101,000 lower, and unemployment ticked up, 39 versus 38, and also wage growth slowed, and I think that's very important as well.

Jim Cramer (1:27)

I asked the Treasury Secretary whether wage growth is slowing, it could be immigration, and she completely punted and wouldn't answer it. I was going to follow up, but I felt there was a futility in that effort, but there are a huge number of immigrants that have come in the most, and you can add all of them from six years, and they would be less than what's come in, and believe me, they are playing a role in keeping wage prices down.

Jeff Marks (1:52)

Yeah, and I wouldn't call this necessarily negative news, but it's softer news, and it's softer news is what is bringing down yields.

Jim Cramer (1:59)

It's not deflation, it's the slowing of inflation.

Jeff Marks (2:01)

Yeah, so you had the 10-year back to 4.5. It was at 5% two weeks ago, and a whole lot of stocks rally when yields move lower. It's not just technology.

Housing stocks tend to do well. Stanley Black and Decker is a good example.

Jim Cramer (2:14)

Stanley does a great example, and we bought some lower.

Jeff Marks (2:17)

Yeah, we bought some lower. Had a good quarter last week. Really good progress on their, not only inventory reduction program, but taking out costs, improving their supply chain.

So seeing big moves in that, really anything interest rate sensitive.

Jim Cramer (2:30)

Right, and that's very positive. I mean, I was looking at Morgan Stanley this morning. It's 75 I think that could go back to 80 very easily on this. It was at 100 Wells might be having a move, and that would be very, very valuable. Wells had a great quarter.

Jeff Marks (2:44)

Wells did have a good quarter.

Good net risk income outlook, and they also disciplined in expenses. And then just back to Morgan Stanley, go back to what James Gorman, now the outgoing CEO, has said on the call, and that as soon as you kind of get this signal that the Fed will pause, should see a nice rebound in investment banking activity. So look, we don't know if the Fed's going to pause now, but at least the way the numbers are going now, it might lead that way. But 75, cheap stock.

Jim Cramer (3:14)

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SPEAKER_4 (3:32)

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