Jim Cramer says this is the stock to buy after the weak August jobs report
It’s finally Home Depot’s time to shine. “[Home Depot] is about to go higher. That’s what you buy right here, right now,” Jim Cramer said on CNBC’s “Squawk on the Street” on Friday morning. Jim’s commentary came after a weak August jobs report, which sent the 10-year treasury yield sliding to its weakest levels since April 7. The Bureau of Labor Statistics reported that only 22,000 nonfarm jobs were added to the U.S. economy in August, which was far below the 75,000 that economists anticipated. The lower bond yields initially supported the stock market, which sent the S & P 500 to all-time highs as investors grew more optimistic that the Federal Reserve would cut interest rates later this month. An outsized 50-basis-point cut was starting to enter the conversation , though the odds on that were still low. The market, however, turned modestly lower later in the morning as investors tried to balance concerns about a slowing labor market with hopes for Fed rate cuts. “Rates are going lower,” Jim said, predicting a different scenario than a year ago when the Fed cut rates three times, starting in September 2024, and bond yields went up. “This time, I think they cut [and] the long end goes down,” including mortgage rates, according to Jim, who has stood firm on the notion that 30-year fixed-rate mortgages need to fall below 6.5% to stimulate the housing market. “That’s why the housing stocks had a move yesterday that indicated that you are going to see a gigantic explosion in housing stocks,” Jim said. “Home Depot was the star of the show, and that made sense to me because they told you this time is for real.” Jim was referring to positive comments about business in the back half of the year, alongside the home improvement giant’s earnings report. HD YTD mountain Home Depot YTD Shares of Home Depot were on a three-session winning streak to start the month of September after they gained nearly 11% in August. The stock has gained 7% year to date. “Home Depot is a stock that once it gets started, it doesn’t stop. You can’t take profits in it. You just got to let it run,” Jim said on Friday’s Morning Meeting. “That’s where we are with that.” (Jim Cramer’s Charitable Trust is long HD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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