Squawk on the Street

Cramer's Morning Take: Home Depot 1/10/25

Jan 10, 2025

Jim and Jeff reveal their bullish stance on a key home improvement stock amid shifting economic signals. They dissect the implications of a robust jobs market and rising interest rates, highlighting the tensions between bonds and stocks. The duo then explores investment prospects in Home Depot, emphasizing its adaptive responses after recent natural disasters and the resulting demand surge, positioning it favorably against other retailers. Expect candid insights that may reshape your market perspective!

03:42

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Quick takeaways

Current economic indicators present a mixed outlook, with rising interest rates causing investor apprehension and market fluctuations.

The rebuilding efforts following natural disasters are expected to significantly boost Home Depot's sales, projecting a 30 to 40 basis point increase in fiscal year 2025.

Deep dives

Understanding Economic Trends

Current economic indicators suggest a mixed outlook, with job numbers surpassing expectations but wage growth stabilizing at 3.9 percent. Despite a higher employment rate, concerns about rising interest rates impact market confidence, reflected in notable fluctuations in bond yields. The 10-year bond yield surpassed 4.75 percent, leading to increased apprehension among investors. These factors indicate a potential market reset as investors grapple with evolving economic conditions and adjust their strategies accordingly.

Economic Indicators: A Hot Jobs Market and Rising Interest Rates

2min

Investment Insights Amid Market Shifts

3min

Jim and Jeff discuss why they're buying more of this home improvement stock. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake

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