Jim Cramer looks into today's Fed decision and Big Tech's big day

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>> THANKS FOR >>> MY MISSION IS SIMPLE, TO MAKE YOU MONEY. I AM HERE TO LEVEL THE PLAYING FIELD FOR ALL INVESTORS. I PROMISE TO HELP YOU FIND IT. MAD MONEY STARTS NOW. >> HEY, I AM CRAMER, WELCOME TO MAD MONEY. FRIENDS, I'M TRYING TO MAKE A LITTLE MONEY. I WANT TO EDUCATE AND TEACH YOU. CALL ME OR TWEET ME. APPLE, ONE. FRED, NOTHING. THAT IS ALL YOU NEED TO KNOW. THE LARGEST COMPANY ON EARTH AT ABOUT 3%. BRINGING THE S&P AND NASDAQ TO NEW RECORDS. DESPITE THE FACT THAT THEY KEPT THE RATES UNCHANGED AT HIGH LEVELS AND THEY WILL STAY HIGH UNTIL WE GET EVIDENCE THAT INFLATION IS MORE SUBDUED. HOW DID THEY RALLY IN SPITE OF THE FED? EVENTS HAVE OVERRUN VERYTHING AT ONCE. THE CONSUMER PRICE INDEX NUMBER THAT WAS VERY COOL. MUCH DIFFERENCE THAN WE THOUGHT. THE ACTUAL CORE INCREASE WAS BETTER THAN THE .3% WE WERE EXPECTING. THE FED WILL HAVE WHAT IT TAKES TO CUT RATES. SO MANY PRAISES FELL. NEW VEHICLES, RECREATION, EGGS, TURKEY, HAM, CHEESE, MILK. THE CPI NUMBER DID NOT CHANGE. THE FED PUT IT IN WHEN STARTING THE MEETING YESTERDAY. BEFORE THE CPI NUMBERS CAN BE SEEN FROM THE OPEN MARKET. NO RATE CUT HIS YEAR. AFTER THE CPI, THAT SEEMED WRONG. ALTHOUGH THAT CAN CHANGE DEPENDING ON THE DATA. THIS IS JUST ONE INFLATION NUMBER THAT CAME OUT. YOU CANNOT HAVE A HARD LINE TO STANCE OFF-LINE WEDNESDAY. THEY ARE SAYING IF THERE ARE GOOD NUMBERS LIKE TODAY, THEN THE FED CAN CUT. IF THERE AREN'T, IT DOESN'T HAVE TO. IT IS GRADUALLY SLOWING. IT IS NOT SUPERHEATED. THAT IS PERFECT. THEY ARE MUCH LESS. WE HAVE NO IDEA WHO COULD'VE CHANGED THEIR MIND IN RESPONSE TO THIS NUMBER. IT SEEMS TO HAVE CAUGHT THEM TOTALLY BY SURPRISE. OVERRUNNING THE NEGATIVE EXPECTATIONS CAUSING INTEREST RATES TO PLUMMET INSTANTLY. WHICH BRINGS ME BACK TO THE STOCK MARKET. THE LAST FEW DAYS, WE HAVE SEEN NEWS ABOUT BIG TECH THAT HAVE CAUGHT INVESTORS BY SURPRISE. A BULLISH SET OF EVENTS TAKING BREATHTAKING RESULTS. ESPECIALLY IN THE NASDAQ. THE BACK TO BACK EXPLOSION FROM APPLE AND THEN ORACLE IS MORE SHOCKING AND EXHILARATING. APPLE STARTED ANNOUNCING MORE IMPROVEMENTS. THEY INTRODUCED A NEW PRODUCT THAT CAN TRIGGER 1 BILLION UPGRADES. UNLESS YOU HAVE THE PROMAX. THE iPHONE CANNOT TAKE ADVANTAGE OF IT. WALL STREET AND THE PRESS WERE PRETTY NEGATIVE. THEY ARE MORE DIVISIONS IN THE ANALYST OR THE PRESS. THE GROUNDSWELL SUPPORT FROM THE ACTUAL BUYERS OF IPHONES SHOCKED WALL STREET. APPLE IS RUNNING A PERCENT SINCE THIS WEEK BEGAN. STAGGERING. HOW ABOUT ORACLE? ORACLE ACTUALLY HAD WEAKER EARNINGS NUMBERS. THAT'S RIGHT. A HUGE RAPIDLY GROWING BUSINESS CENTER. HYPERSCALERS LIKE GOOGLE CLOUD. THEY HAVE COME IN WITH GANG BUSTER ORDERS. $100 BILLION WORTH OF DEMAND. THAT IS INCREDIBLE. THAT IS WHAT THE BULLS HAVE BEEN SAYING ALL ALONG. GENERATIVE AI IS REAL AND OCULAR. WALL STREET WAS BLOWN AWAY AND RALLIED 14.6. FOR DATA CENTERS THERE IS A TREMENDOUS DEMAND FOR THE WARES OF MICROSOFT AND GOOGLE. WHAT GOES INTO THOSE DATA CENTERS? WHAT ABOUT CHIPS. TAKING NVIDIA STOCK UP 3.4%. THAT IS EXTRAORDINARY. NVIDIA JUST HAD -- THE SPLITS LIKE THIS SINCE THE STOCKS TEND TO CHANGE. INDIVIDUALS RING THE REGISTER ON TWO OR THREE OF THEIR SHARES. THERE IS POSITIVE NEWS FROM ORACLE. TURNING THE STOCK STRAIGHT UP. I WILL GIVE YOU A DEEPER ANALYSIS OF MY APPLE STANCE. NON-SPOILER ALERT, I CAN HEAR THAT YOU SHOULD ON BOTH STOCKS AND NOT TRADE THEM. I WANT TO THANK THE WELL WISHING THANK YOU THAT WE HAVE RECEIVED FOR THE COURAGEOUS STANCE. TONIGHT WE HAVE ONE MORE SET OF GREAT TECH NUMBERS. IT IS A $700 BILLION BUT CAME IN. THIS COMPANY FROM THE TRAVEL TRUST IS TRADING GIGANTIC LEE AFTER THE BELL. TONS OF PEOPLE DISMISS THESE MOVES BY SAYING THEY ARE TECH BORN CRAZY. J.P. MORGAN HAS ADVANCE. ALL OF THEM ARE DOWN AND THEY ARE HARPING ON THE NARRATIVES. I'M TIRED OF THESE PEOPLE. INTEREST RATES CAME DOWN ON THE CPI NUMBERS AND THEY STAY DOWN ANNOUNCING THIS POSITION. HOW HOMEOWNERS LIKE HOME DEPOT AND LOWE'S, THEY BURST FORWARD. THESE ARE IMPORTANT COMPANIES, PEOPLE. THEY WOULD BE CHOKED BY THE FED HIGHER FOR LONGER STANCE. AND JUST TO BE SURE, IT IS NO LONGER REASONABLE. GIVEN THE SIZE OF THESE BEHEMOTHS, THEY ARE SINGLE INDUSTRIES THAT HAVE BECOME THE SINGLE ROCKET. I AM SAYING THAT THESE COMPANIES AND THOSE THAT FOLLOW THEM ARE SO IN PROPORTION THEN I THINK WHAT YOU ARE DOING IS YOU'RE CUTTING OFF YOUR NOSE DESPITE YOUR FACE. LET ME GIVE YOU SOME BOTTOM- LINE ADVICE HERE. THEY BOTH WERE SHOCKED THIS WEEK. IN A POSITIVE WAY. WHEN THAT HAPPENS, YOU WILL MAKE A LOT OF MONEY IF YOU ARE IN THE RIGHT STOCKS. OR IF YOU ARE STILL FIGHTING THIS MOVE. HOW ABOUT WE GO TO -- IN ILLINOIS. >> HI, JIM. I JUST WANTED TO HEAR YOUR THOUGHTS ON PFIZER WITH THE STOCK THAT HAS BEEN BEATEN DOWN WITH A SLOW PRICE TO EARNINGS RATIO THAT HAS BEEN MAKING ACQUISITIONS. >> CERTAINLY. LET'S ANALYZE THE SITUATION. LOW PRICE EARNINGS, WHY IS THAT? NOT A LOT OF HIGH QUALITY DRUGS RIGHT NOW AND PROSPECTS. THEY DID BY CGM WHICH I REALLY LIKE. I AGREE WITH YOU, I THINK THAT YOU CAN OWN PFIZER HERE. IAN IN PENNSYLVANIA. >> FIRST TIME LONG TIME, HOW IS IT HANGING? FEELING BULLISH ON LIFE, MY FRIEND. HERE IS MY QUESTION. I WILL CUT STRAIGHT TO THE CHASE. MY POSITION IS REDDER THAN YOUR WORLD-FAMOUS MARINARA SAUCE. DOWN 25%. CAN YOU PROVIDE SOME COLOR AS TO WHY THE STOCK IS SO UNDERVALUED? DO YOU RECOMMEND BUYING, HOLDING OR SELLING? >> I AM CONCERNED. I THINK THE COMPANY IS GOOD, THEY FIXED A LOT OF THEIR GROWTH. IN THE LAST FEW MONTHS, THE GROWTH HAS SLOWED. THERE IS NO DOUBT ABOUT THAT. THEY HAVE TURNED HARD AGAINST ANYTHING ALCOHOL. I WILL NOT RECOMMEND ALCOHOL STOCK EVEN THOUGH MY WIFE IS AN ALCOHOL BUSINESS. PEOPLE HAVE TURNED ON ALCOHOL IN THIS COUNTRY AND AROUND THE WORLD. UNLESS YOU ARE A VERY SPECIAL FORMULATION, AIN'T GOT NOTHING FOR YOU. THE FED AND THE TECH SECTOR HAVE GOTTEN SHOCKED THIS WEEK. YOU ARE GOING TO MAKE A LOT OF MONEY IF YOU ARE IN THE RIGHT STOCKS. ONE DRUGMAKERS DISCIPLINE IS BECOMING THE KEY TO ITS TURNAROUND. IS NVIDIA ON TRACK TO BEAT A NEW MILESTONE? LATER I AM TALKING TO THE PG&E COMPANY. STAY WITH CRAMER. >> DO NOT MISS A SECOND OF MAD MONEY. FOLLOW @JIMCRAMER AT X. SEND JIM AN EMAIL. OR GIVE US
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Channel: CNBC Television
Views: 35,057
Rating: undefined out of 5
Keywords: CNBC, Mad Money, invest, investing, stock market, jim cramer, cramer, kramer, wall street, lightning round, investment strategy, retirement
Id: H2Iwt4vUnFM
Channel Id: undefined
Length: 10min 29sec (629 seconds)
Published: Wed Jun 12 2024
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