Cramer's Morning Take: Trump Trades 11/6/24

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. The day after election day, obviously, there's a lot to talk about. We're going to go as long as it takes to talk about. One thing I do want to point out, Jeff, is that there are two markets. Today is the equity market's turn, and I think tomorrow may be the bond market's turn. So you have to be very careful to respect the bond market if you do any buying today.

Jeff Marks (0:26)

So bond market's turn being just the focus of things? Obviously, stocks are surging to record highs today.

Jim Cramer (0:34)

Well, but if you take a look at, say, 730, all the housing stocks were up. And you say to yourself, well, don't people see that they're not really a part of the S&P when it comes to mortgages? I don't know what mortgage rates are going to be. I mean, I was going back and forth with my writing colleague, Matt Horwey, he said, look, the short rates are going to go down. Maybe they can do something involving teasers.

Jeff Marks (0:52)

Fed expected to cut tomorrow.

Jim Cramer (0:53)

Yes, but I do think that the ones that are up are the ones that can have natural momentum, even if mortgage rates go higher.

Jeff Marks (1:03)

Well, I mean, look, the move in the 10-year, it is a little troubling. It's 4.45% roughly is the yield. Trump policy viewed a little bit more inflationary, whether it be tariffs, tax cuts, less immigration. So that might be a factor playing out as well. As you mentioned, tough on housing stocks, the Home Builders, Home Depot, Staley Black and Decker.

Jim Cramer (1:25)

Home Depot, we have to make a decision when Home Depot is overdone. I don't know when it's overdone, but tomorrow is the day where the Fed cuts rates and the money will come back to Home Depot.

Jeff Marks (1:34)

And then you have the dollar strengthening as well, oil lower.

Jim Cramer (1:38)

So how's that fit to play for Procter & Gamble?

Jeff Marks (1:40)

Well, I think if you're talking about any type of multinational that does a lot of business overseas, the higher dollar will be a headwind to their numbers. Not the core numbers, but...

Jim Cramer (1:51)

We sold Procter, we sold J&J. Abbott is a special situation now, but it's about to win, I think, on the table against litigation.

Jeff Marks (1:58)

They have about more than half their sales overseas.

Jim Cramer (2:00)

Right. So how do you feel about Abbott on Daily Today?

Jeff Marks (2:03)

Well, look, I don't want to sell Abbott just because the dollar is a little bit stronger. I mean, it's a great company. They've been beating and raising, still held back by the litigation.

Jim Cramer (2:12)

By the way, litigation is not going to do... The plaintiff's bar is going to be crushed by Trump.

Jeff Marks (2:18)

Yeah. I mean, maybe we're going to get through all the winners and losers in the portfolio today, but maybe stepping back a moment, you mentioned a stock like Abbott.

Would you make any big changes just in reaction to one day of trading? It is a new administration.

Jim Cramer (2:32)

I do think that what we did today with the financials is to take advantage of a group that will be hammered tomorrow if the 10-year auction goes badly. If the Fed says something about inflation, you can't have as big a position as Morgan Stanley. Wells Fargo is the biggest winner today. We battled Wells Fargo for two years.

Jeff Marks (2:53)

So it would be opportunistic in areas where you have Wells Fargo 71

Jim Cramer (2:58)

This goes to 14 multiple. It's not expensive. But this kind of thing tends to be repealed, as it did in the solar stocks today, when they were straight up the last few years.

Jeff Marks (3:07)

So why are the banks big winners? Because one, less regulation. Does Wells get the acid cap removed faster? The acid cap removed.

Jim Cramer (3:15)

It just will be. Start your day with my out book on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_3 (3:31)

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