Cramer's Morning Take: Weak Job Data 4/6/23

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff, I'm working on a theory here. When I look at the ADP numbers, and I combine that with what we said from the JOLS, the jobless claims, I'm coming up with this theory. And the theory is that the slowdown is catching up with us, that people are starting to recognize less hiring, less job creation, more commercial real estate strain, and they're holding off on buying.

And I think that it can be correctly summed up by Mark Zuckerberg, who saw this coming early on, which is the year of efficiency, and Mr. Subramanian, who, Raj, from FedEx, year of efficiency, where they are not going to need as many people switching to digital. So I think a lot of companies are trying to figure out, how can I do more with less, realizing that if there is indeed a slowdown in e-commerce, staying at around 5%, that it's about firing people. And it wouldn't be about firing people even if it weren't what's happened with the commercial real estate companies and the Fed raising rates. But I think it's happening rather rapidly and it's going to be reflected in starting tomorrow's number.

Jeff Marks (1:08)

Yeah, finally seeing this loosening of a tight labor market. I mean, that's really been the theme all week. It's been the main catalyst for this rotation that we've seen into healthcare, into staples, utilities, another section, because these are all areas of the market that don't need a red-hot consumer to grow their earnings year over year. Meanwhile, cyclical is falling, tech falling. But we're in day three of this rotation, and day three might say, all right, is it time to start looking at what's been crushed for opportunities?

Jim Cramer (1:37)

Well, let's remember that when the banking crisis occurred was when you saw all of the QQQ names go up. That was when it started. People misinterpreted. What people should have realized was these are companies that do well or do better to slow down. It's not because they have a great balance sheet, but they can still grow. So I think that we're going to have more bank failures.

The numbers of these banks that I'm seeing now, their loan deposit, every one of their numbers in the mismatches are still there. They apparently have not adjusted what they should have. They all should have gone to the Fed window. So I think that when you see the next leg of regional banks fail, you will see the next leg of outperformance in the best part of the sales forces of the world, who are embracing a gender of AI at an incredible pace.

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