JEFF MARKS: Welcome to The Daily Rundown. I'm Jeff Marks, senior portfolio analyst at Action Alerts Plus, standing on the floor of the New York Stock Exchange with Jim Cramer. Jim, the PPI came in a little bit hotter than expected. It may be washing away some of the good feelings after yesterday's-- a little bit better than feared CPI report. So markets are lower.
JIM CRAMER: Right. I mean, look. We're gripped with the idea that all these different people from the Fed keep saying, listen, we got to taper. That's not coincidence.
I think that we certainly are getting ready for that. I think that that's different from raising rates. Remember, those are very, very different.
I still think that the greatest investment you can have right now is a mortgage. Go get a mortgage. I got one yesterday for 3 and 1/4, but it was for untraditional property. If you can get one for 2 and 3/4, that's better than any stock that I'm talking about.
JEFF MARKS: Jim, why is that? Is it because you're just taking out a huge loan and money is just so cheap right now?
JIM CRAMER: Yeah, I mean, look. You know, you can go buy-- you get that loan and go buy Devon, which, go buy Pioneer and get that variable dividend or go buy Pepsi or go buy American Electric Power. I just think that it's free money, and you've got to take free money.
And you can do it against the property. That's what I did. And I am thrilled that I did it. I think it's going to be my best investment this year.
JEFF MARKS: All right, well, I don't think anyone can argue against free money. Now Jim, I do want to get into some stocks today. American Eagle Outfitters downgraded at Wedbush from buy to neutral. They love the story, but they're just saying a little bit of-- too much of the good news is priced in. What do--
JIM CRAMER: Well, I mean, Lets take Estee Lauder. You know, we got these people who say Estee Lauder, too much good news is priced in. I say you can't-- you have to get the franchise, not the stock price.
The franchise is too good to sell. It's so well-run. Schottenstein, just such a good job. So if you just sell on the basis of the price and not the franchise, you are going to get hurt.
JEFF MARKS: And let me ask you, Jim. Now the analyst did downgrade the stock, but this is a stock that has gone-- it's been essentially flat for the last four months. So is this an analyst saying, hey, we're just saying too much is priced in because the stock's going nowhere?
JIM CRAMER: I think it is--
JEFF MARKS: This would have been a little bit better four months ago.
JIM CRAMER: Look, I think that-- look, I'm not saying it won't go down. I'm saying that what happens with a high quality stock like that is it gets hit. And are you quick enough to buy it?
That I don't know. I don't know whether you can get out and then in again. It's kind of like how I feel about Apple.
Now everybody was thinking Apple's peaked. Who would have thought that, wait a second, a guy will come out and recommend selling Micron? And then, of course, Apple's a huge buyer of chips, of DRAMs, from Micron.
So you suddenly get a chance to buy that. All of the semiconductor equipment stocks are down too because what they're saying in that Micron downgrade is, you know what? There's going to be a surfeit of chips.
So sell Applied Materials. Sell Lam. I'm not buying that, but I'm not selling. I'm not buying those stocks. I'm just not buying that negativity.
JEFF MARKS: Yeah, you did mention a lot of the semis are weaker today. But interestingly enough, I did see Nvidia trading slightly higher. Why do you think there is that type of difference?
JIM CRAMER: Nvidia is an entirely different thing. I like Nvidia because Nvidia is a play on data center and on gaming and on artificial intelligence. These have nothing to do with cyclicality whatsoever.
JEFF MARKS: All right, now we did mention AEO earlier. That was one of the stocks you listed on Mad Money last night as-- that look like bargains in a stock that a lot of people are always worried about is the market overvalued. And Ford was also another one, PayPal, Norton LifeLock, Boeing --
JIM CRAMER: If Ford gets the chips-- if Ford gets the chips, Ford goes much higher. Boeing might be approved soon in India. If it gets approved in China, that stock goes much higher. Now I'm thinking a lot about Boeing.
I think a lot of people are saying, I'm waiting for the equity offering. It's got to happen. And I say the equity offering does have to happen but not at these lower levels. So I am insisting that some Boeing be bought by people who are subscribers.
JEFF MARKS: Yeah, and Norton LifeLock was on that list too. And they announced--
JIM CRAMER: Oh--
JEFF MARKS: --that big Avast merger--
JIM CRAMER: It goes to 28.
JEFF MARKS: --two nights ago.
JIM CRAMER: It goes to 28 on a certain set of numbers. And then you get a bump from those numbers, which is what happens if they buy, which they did. And you get a stock that's cheaper than the numbers that they had and now better. So I just feel like you want to buy it even at 25.6.
JEFF MARKS: All right now, Jim. The NASDAQ has been lagging a bit the last couple of days. You could call it the rise in interest rates. Is this just another example?
The market is so-- it's been so rotational all throughout the year. First, it was tech rallying, and then it was the industrials, tech, and now it may seem like an industrial rally again. Are you just-- the barbell is still the way to go?
JIM CRAMER: Yeah, I mean, look. PayPal has been going down, down, down down down. And I haven't listened to the eBay conference call, they mentioned it.
But we bought some PayPal because PayPal is rarely out of favor. But when it's out of favor, if you look at the chart, it has always been right. And this time will not be different.
JEFF MARKS: All right, Jim. This is the last show of the week. Anything you're looking towards the weekend? We got a number of big earning reports next week-- Walmart, Nvidia, Cisco, Estee Lauder.
JIM CRAMER: I like every one of those. Estee Lauder I think has been immunized because over and over again, people have been saying that it's too high. Again, this is one of those look at the franchise, OK?
These are franchise plays. They're not stock plays. And I'm going to try to make that point tonight.
What's a franchise versus what's a stock? I mean, for instance, Micron is a stock because it's cyclical. I think Morgan Stanley is a franchise because they've managed to be able to make a whole new revenue stream.
It's a revenue stream. So I'm looking for franchises. I'm not fooling around with stocks.
A stock is AMC. A stock is GameStop. They're stocks. I want franchises.
JEFF MARKS: Franchise, long term investments-- I think that's just a great way to invest over a longer period of time.
JIM CRAMER: Exactly.
JEFF MARKS: All right, that's the show for today and for the week. I'm Jeff Marks. We'll see you Monday.