Early market rally flips to sharp losses as bears reassert themselves — listen to 'The Homestretch'
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Early market rally flips to sharp losses as bears reassert themselves — listen to 'The Homestretch'

The seven-session winning streak in the tech-heavy Nasdaq looks like it will come to an end Wednesday. But, one of our tech stocks is popping, so we're going to trim it.
09:28
Wed, Jan 18 20232:24 PM EST

Here's the transcript for "The Homestretch" Wednesday. (Note there won't be a "Homestretch" on Thursday because of the "Monthly Meeting.")

>>> HI, JIM CRAMER WITH JEFF

MARKS FOR "THE HOMESTRETCH."

AND I'VE GOT TO TELL YOU KIND OF

WHAT WE SAID AT THE 10:20, IT'S

NO GOOD THAT THE WIN STREAK OF

THE NASDAQ HAS COME TO AN END.

THAT'S WHAT I SUGGESTED AT THE

MORNING MEETING.

I FELT SEVEN STRAIGHT DAYS IS

ALL YOU'RE GOING TO GET AND WE

GOT THE REVERSAL.

BUT LET'S REMEMBER THIS IS NOT

THE END OF THE WORLD.

THE DOW DOWN YESTERDAY, NASDAQ

TODAY, BUT IT DOES FEEL GOOD TO

HAVE THAT BIG POSITION.

>> ABSOLUTELY.

WHEN THE MARKET WAS GOING

THROUGH THAT WIN STREAK, YOU

KIND OF WISH YOU OWNED MORE

STOCK, BUT DAYS LIKE TODAY

CERTAINLY FEELS GOOD TO HAVE

THAT CASH POSITION.

CERTAINLY TAKING STEPS TO

INCREASE IT OVER THE NEXT COUPLE

OF WEEKS.

I DON'T KNOW IF WE'RE DONE.

>> WE'RE NOT DONE.

>> BUT THE OSCILLATOR IS STILL

VERY OVERBOUGHT, OVER 9%.

WE'LL SEE WHAT HAPPENS TO THAT

NUMBER TOMORROW.

BUT, JIM, WAS A LOT OF THE

HAWKISH TAPE FROM SOME FED

MEMBERS?

I KNOW WE SPOKE ABOUT BULLARD

YESTERDAY, MESSTER TOO.

>> PEOPLE READ HEADLINES.

OH, BULLARD SAYS IT'S A SOFT

LANDING BUT THEY DON'T READ THAT

BULLARD IS REALLY HAWKISH.

YOU CAN'T HAVE YOUR CAKE AND EAT

IT TOO.

BULLARD MAY CALL FOR A SOFT

LANDING, ALTHOUGH HE'S NOT A

VOTER, HE CREATED -- HE CAN

CREATE A HARD LANDING SO,

THEREFORE, HIS COMMENTS WERE

MISINTERPRETED AS BEING DOVISH.

I THINK HIS COMMENTS ARE A

LITTLE MORE ALIGNED WITH

MESSTER.

SHE WANTS RATES SLIGHTLY ABOVE 5

TO 5.25.

AND AGAIN, THAT IS -- ON A

PERCENTAGE BASIS IS VERY HIGH

VERSUS WHERE WE ARE RIGHT NOW.

>> AND MESSTER ADDED EARLIER IF

THEY WERE TO ERR ON ONE SIDE,

SHE WOULD WANT IT TIGHTER, WHICH

IS HIGHER RATES.

I DON'T THINK THAT'S ANYTHING

NEW OVER WHAT SHE'S COMMUNICATED

THE PAST SIX TO EIGHT MONTHS,

EVEN LONGER THAN THAT.

BUT I GUESS THE MARKET REACTION,

IT'S GIVING A REASON FOR PEOPLE

TO TAKE SOME PROFITS AFTER THE

BIG RALLY THAT WE'VE HAD THE

LAST COUPLE OF WEEKS.

>> I'M WRITING A PIECE FOR "MAD

MONEY" ABOUT HOW JB HUNT STOCK

IS UP TODAY AND THEY WERE

BOOK-ENDED.

THEY HAD THE BIG UPSIDE SURPRISE

RIGHT BEFORE THE BEGINNING OF

WHAT WAS THE END OF THE BIG

CONSUMER HARD GOODS PURCHASING.

AND NOW THEY'RE SAYING, LOOK,

WE'RE ABOUT -- AND THEY DON'T

LIKE TO FORECAST, BUT LOOK,

THERE'S BEEN AN INVENTORY

CORRECTION.

THE INVENTORY CORRECTION IS

ABOUT OVER.

THAT REALLY IS THE MICROCOSM OF

WHAT'S HAPPENING.

WE HAVE AN INVENTORY CRASH IN

EVERYTHING BECAUSE WE SWITCHED

FROM AN ECONOMY OF GOODS TO AN

ECONOMY OF TRAVEL AND

ENTERTAINMENT, WHICH IS ONE OF

THE REASONS WHY WE'RE DOING OUR

LIFE'S TOO SHORT SERIES.

WE'RE DOING THAT EVERY NIGHT.

THAT'S THE SEA CHANGE.

AND THE SEA CHANGE CAUGHT A LOT

OF PEOPLE BY SURPRISE AND

CREATED INVENTORY TO GO UP

EVERYWHERE.

THERE'S A SINGLE PART OF THE

ECONOMY INCLUDING MICROSOFT,

SALESFORCE.

>> IT'S BEEN CHIPS, APPAREL,

WORKERS, LABOR ON THAT SIDE.

>> I'LL TELL YOU WHAT'S

INTERESTING IS WE NEVER THOUGHT

THAT AN INVENTORY CORRECTION

COULD INCLUDE TECH.

TECH WAS ALWAYS SECULAR GROWTH.

WELL, IT TURNS OUT IT'S A STOCK

MARKET CORRECTION AND YOU CAN'T

DO ANY IPOs AND CAN'T RAISE ANY

NEW MONEY.

YOU END UP WITH COMPANIES THAT

FRANKLY ARE ORPHANS.

WE SEE A LOT OF ORPHANS OUT

THERE.

THEY ARE IN A STORM.

THEY ARE NOT ANYTHING THAT YOU

WANT TO OWN AND THAT INCLUDES

ANY ENTERPRISE SOFTWARE STOCKS.

THERE'S TOO MUCH INVENTORY.

BY THE WAY, TOO MUCH INVENTORY

IN THE STOCK MARKET TOO.

WE ARE ABOUT MERCHANDISE.

>> SURE.

FORTUNATELY, WE'VE SEEN A SLOW

DOWN IN THOSE SPACs.

>> NO SECTORS IN THE GREEN

TODAY.

THE STAPLES AND UTILITIES ARE

DOWN THE MOST, WHICH TELLS YOU

RIGHT NOW THAT PEOPLE AREN'T

FLEEING IN THE RECESSION GROUP

NAMES, THEY'RE FLEEING THE

BONDS.

THAT'S WHY INTEREST RATES HAVE

COME DOWN SO MUCH.

PEOPLE ARE VERY CONCERNED ABOUT

PROCTER TOMORROW WHEN THEY

REPORT.

NOW, WE TAKE A SILENT APPROACH

TO PROCTER.

WE KNOW OVERALL ITS COSTS ARE

COMING DOWN.

PROBABLY RUMORS IT WILL TRADE

DOWN BUT IN THE END IT'S JUST A

GREAT AMERICAN COMPANY.

YOU'RE GOING TO HAVE TO SUFFER

THROUGH UPS AND DOWNS TO GET TO

200, WHICH IS ULTIMATELY WHERE I

THINK PROCTER IF YOU'RE A

CHARITABLE TRUST OWNER, YOU BUY

PROCTER NOT BECAUSE IT GOES FROM

130 TO 152, BUT IT GOES FROM 130

TO 170 AND THEN 150 TO 180.

THAT'S THE METHOD OF PROCTER.

>> COLLECTING DIVIDEND PAYMENTS

ALONG THE WAY.

REINVESTING DIVIDENDS ALONG THE

WAY.

YOU CAN'T REINVEST DIVIDENDS BUT

WE RECOMMEND THEY INVEST

DIVIDENDS FOR THE LONG RUN.

>> I DO WANT TO MENTION

QUALCOMM.

STRANGE MOVE.

>> VERY STRANGE MOVE.

>> CITI OFFERED A NEGATIVE ON

QUALCOMM.

I THINK WE'VE GOT TO LET GO OF

QUALCOMM, MAN.

>> I AGREE.

SEMIS HAVE HAD A NICE RUN LATELY

AND THIS ONE IS STILL RUNNING,

UP ANOTHER 2% AT THE TIME WE'RE

TALKING.

SO YEAH, I THINK AFTER THIS

WE'LL PUT OUT A QUICK TRADE

ALERT PEELING BACK SOME OF THE

POSITION AND LOOK TO USE THAT

CASH TO BUY MORE EMERSON.

>> EMERSON IS OVERDONE.

LOOK, THEY SHOT THEMSELVES IN

THE FOOT.

$7.6 BILLION TAKEOVER.

FOR THAT THEY HAVE LOST ALMOST

$5 BILLION IN MARKET CAP.

>> THEY LOST ABOUT 4 BILLION

YESTERDAY.

A LOT OF INDUSTRIALS ARE DOWN

TODAY.

BUT IT KIND OF MAKES YOU WONDER,

DOES THE PUNISHMENT FIT THE

CRIME?

>> YEAH.

LOOK, I'VE MADE MY VIEWS CLEAR

THAT I DON'T LIKE HOSTILE

TAKEOVERS.

I LEARN THAT HE HAD WHEN I WAS

AT GOLDMAN SACHS.

IT'S NOT THE WAY PEOPLE WHO ARE

TRYING TO PRESERVE CULTURES WIN.

YES, NATIONAL INTERESTS MAY HAVE

ALL THE CONTRACTS IN THE WORLD

BUT IN A HOSTILE TAKEOVER, THEY

TAKE A VERY LONG TIME.

IN THE INTERIM, EVERYBODY YOU

REALLY LIKE LEAVES.

I'VE EXPLAINED THAT TO THE

COMPANY.

I THINK THE COMPANY WILL HAVE TO

RETHINK ITS POSITION.

EITHER THAT OR THE CEO OF

NATIONAL INSTRUMENTS RESIGNS,

AND I DON'T SEE THAT AS

HAPPENING.

>> I WAS GOING TO SAY, OR MAYBE

THEY RETHINK THEIR POSITION.

>> WELL, THEY BETTER RETHINK

THEIR POSITION.

>> IF EMERSON WALKS AWAY, THAT

STOCK IS GOING TO FALL.

>> IT TAKES PEOPLE LIKE US TO BE

ABLE TO SAY, ARE YOU KIDDING ME?

NATIONAL INSTRUMENT?

DO YOU KNOW HOW LUCKY YOU ARE TO

GET THIS BID TO BEGIN WITH?

OTHERWISE EMERSON IS GOING TO

BUY BACK THEIR OWN STOCK.

WERE THEY ILL ADVISED IN MAKING

A HOSTILE TAKEOVER?

COMPLETELY.

AT THIS POINT THEY PAID THE

PRICE.

I WISH WE COULD BUY SOME BECAUSE

IT'S REALLY DOWN A GREAT DEAL.

I'M DOING A PIECE ON JB HUNT AND

IT'S JUST VERY INTERESTING TO

SEE THAT THERE IS NO -- THERE'S

NO TRUCKER SHORTAGE ANYMORE.

IT WOULD BE INVENTORY DECLINE.

ALL THE THINGS THAT WERE ABOUT

TO HAPPEN LAST YEAR IN APRIL HAD

HAPPENED AND NOW PEOPLE SAY,

OKAY, LOOK, IT'S A MILD

RECESSION.

WE'RE GOING TO LIVE THROUGH A

MILD RECESSION.

SO THE THEME IS MILD RECESSION.

THAT'S A NICE COMPROMISE BETWEEN

PEOPLE WHO SAY THERE'S A

RECESSION AND PEOPLE WHO SAY

DON'T WORRY ABOUT IT.

I THINK IT'S A MILD RECESSION OF

WHICH WITNESSED BY THE FACT

PEOPLE WANTING TO OWN A TRUCKING

COMPANY AT A POINT WHERE WE

ALREADY ARE STARTING TO DISCOUNT

THE MILD RECESSION.

SO, JEFF, TOMORROW WE'VE GOT OUR

MEETING.

AND IT'S GOING TO BE AT NOON.

WE ARE VERY MUCH ON THE FLY

TODAY, OBVIOUSLY, BECAUSE WE

WANTED TO GET TO YOU AND TELL

YOU THAT OUR BIGGEST WORRY, EVEN

THOUGH INTEREST RATES ARE DOWN

TODAY, WAS THAT THE MARKET WOULD

HAVE A SELL-OFF WHEN PEOPLE WERE

GOING NUTS.

WE GOT THAT RIGHT AT 10:20.

I KNOW IT SOUNDS HARD THAT YOU

HAVE TO JUST LISTEN TO THE 10:20

AND THIS ONE, BUT THIS IS

DIFFERENT.

WE'RE DOING THINGS THAT ARE OFF

THE CUFF, THAT NO ONE HAS EVER

DONE BEFORE, AND WE'RE DOING IT

FOR YOU.

AND WE WILL SEE YOU -- WE WILL

NOT DO A MORNING MEETING OR A

HOMESTRETCH TOMORROW BECAUSE WE

WILL BE DOING ENTIRELY THE

MONTHLY CLUB MEETING.

>> YEP.

THE CALL IS FROM NOON TO 1:00,

SO ALL OF OUR THOUGHTS WILL BE

OUT THERE LIVE REALTIME.

NO TAPE DELAY.

SO THAT'S ALWAYS FUN AND

ENJOYABLE.

I'M LOOKING FORWARD TO A MONTHLY

MEETING AND TALK ABOUT THE

MARKET.

GOT SOME Q & A GOING, NEW STOCK

WE JUST ADDED.

>> INITIATION THAT WE DO SO WELL

AND IN THE MEANTIME, PLEASE,

EVERYONE RECOGNIZE, JEFF, LET'S

GO SELL SOME QUALCOMM.

THIS IS JIM CRAMER WITH JEFF

MARKS FOR "THE HOMESTRETCH" AND

WE WILL SEE YOU TOMORROW FOR OUR

CLUB MEETING.