Hump Day -- PPI Comes In Exactly As Expected -- Cramer's First Hour, Part 2 -- December 11, 2024

Locator: 48377CRAMER.

Cramer's first hour: a mix of facts, factoids, opinions from various sources -- often not cited -- while listening to Cramer's first hour on CNBC.   

US equity market after CPI numbers released: major indices all turn green. Whoo-hoo! AAPL already moving higher. Whoo-hoo! CNBC panel:

• Steve Liesman: re-acceleration in food and housing; otherwise, a good report. Used cars, up 2%.
• inflation moving slightly higher, but no surprises; in line with expectations
• inflation: an uncomfortable trend
• but the Fed is still too restrictive; so can afford at least one more cut this month
• at best, we might see two cuts in 2025 and the first one certainly won't be in January, 2025.
  
• JPMorgan: blah, blah, blah -- says inflation is stabilizing at a higher rate than the Fed would like; feels Fed needs "to take back some of those cuts" in 2025
• the phrase today: the path forward is "bumpy"
• why are the markets rallying on higher inflation rates? 
• me? yes, inflation is creeping upward but the alternative is much, much worse; right now, at this moment in time, this is "Goldilocks" data.
• for those who bought a car in the last year and has a 72-month (fixed) loan (the new standard), two years from now the monthly payment is going to seem a whole cheaper than it feels right now.
  

CNBC:

Trump: there's going to be a lot of "ink" spilled on a gazillion stories re: Trump, but with regard to economy, Trump will focus on ITT: immigration, taxes, and tariffs. And that's it. Period. Dot. Immigration, taxes, and dots.  

Intel (INTC): BBB. Lowest credit rating the S&P Global Ratings hands out. The lowest rating. Borrowing costs will surge. Link here.

OH! Almost forgot -- first human to ever hit $400 billion for net worth -- Elon Musk. And, oh, by the way, perhaps the president-elect's closest economic advisor. And it wasn't "just barely" $400 billion -- it was $442 billion. If one looks at the background data re: Musk he is clearly on his way to $1 trillion.

GM throws in the towel, raises the white flag, cries "uncle": can't handle the cost, the competition, the controversy:

YESTERDAY: Economic data, final read for 3Q24 -- UNIT LABOR COSTS: way lower than expected! Whoo-hoo! 

But some now say it becomes crazy to consider any more cuts any time soon. JOB MARKET IS NOT CONTRIBUTING TO INFLATION. Unit Labor Costs -- 3Q24 -- 0.8% vs 1.4% expected. Theory: putting this all together -- the economy can run hotter without causing inflation. Despite those huge labor contracts announced this past year. So, Fed has room to maneuver -- another rate cut in December though common sense suggests no reason to do so. The one word not mentioned today: recession. 

Today: CPI. COMES IN EXACTLY AS ESTIMATED!

Tomorrow: PPI.

Intel (INTC): Beth.

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• Reminder: I am inappropriately exuberant about the US economy and the US market.
• I am also inappropriately exuberant about all things Apple. 
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