Mad Money w/ Jim Cramer 10/13/26

SPEAKER_1 (0:00)

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SPEAKER_2 (0:30)

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, US and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.

SPEAKER_3 (1:01)

My mission is simple, to make you money.

I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. Mad Money starts now.

Jim Cramer (1:17)

Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramerica. Other people have been friends. I'm just trying to make a little bit of money. My job is not just to entertain, but to teach you. So call me at 1-800-743-CNBC. Tweet me at Jim Cramer. No matter what I say, no matter what the street says, stocks keep getting more and more divorced from the companies they're supposed to represent pieces of.

Today, we had all sorts of semi-cluster stocks in disray.

What they do at the moment is meaningless, but they're the ones that are dragging down the averages, Dow sinking 180 points, S&P dipping 0.02%, Nasdaq climbing 0.15%. Right now, this market has a ball and chain attached to it. The chain is interest rates, which are trading in tandem with oil. That's the ball. And that means they're going higher, when we don't want rates to go higher. We have moments like today where oil takes a breather, and that allows the chain to go slack, and the ball doesn't hurt us all that badly. But when oil pops higher, interest rates come with it. Given that the president doesn't seem to have a game plan to settle things with Iran, we never know when the chain will turn into the wrecking ball and crush the stock market. Even though the oil stocks went higher today, boy, they're set in records, today marked a temporary reprieve in the action when we saw some crazy stuff going on the banks, which regarded as disappointment even though they're making a ton of money. The market doesn't even try to distinguish between the best and worst anymore. Plus, they have so many line items that it's tough to compare them. Instead, the whole group opened strong and then ended up getting slammed, or at least giving up their gains. I'd argue the Wells Fargo should have been a winner, not a loser, especially because the CEO, Charlie Scharf, set the bank up to make money, much more money, if rates go higher, and he gave you a good view for next year.

See, we have to believe that the Fed won't be able to get inflation under control, and we are going to see rates go higher next year. Wells has good growth, excellent expenses. Nobody seemed to care. And well, look, the most confusing part of the market right now, though, isn't the banks, although they are trading so awfully. It's the once red-hot semiconductor space.

The group is so visceral that you figure that they are going to cause pain even before trading starts.

SPEAKER_5 (3:36)

The House of Pain.

Jim Cramer (3:37)

And that's exactly what happens, is these stocks are so behind the eight ball, and they get crushed from the moment that the COSPI, the Korean index, gets annihilated, which is in the middle of the night, which is both the time when I get up and when I go to sleep. So I see the damage happening. It's being exploited right here. For the past six days, the Semi-Zim period is one of the most harrowing scales on record, and that's rolling right into the averages. The SMH, the VanEx Semi-Zim Index, has now fallen 7.22 percent in these last six days. That's the longest losing streak since May of last year. The group has always been streaky, with 10 longest losing streaks in the last 25 years, going from minus 33 percent back in 2021, to minus 8 percent in May of 2006 In short, when the semis roll over, it tends to last for much longer than you might hope. So don't presume we're about to have a serious bounce after the worst streak of the year. That said, the last streak of losing streaks did produce some spectacular gains.