Defensive stocks are having their day in the sun — listen to the 'Homestretch'

>>> JIM CRAMER, JEFF MARKS,

HOMESTRETCH.

SAME KIND OF THEME AS WE LAST

SPOKE, ARE DOING WELL.

I DON'T WANT TO SAY -- WELL, I

WOULD HAVE TOLD YOU WEAKNESS

ACROSS THE BOARD EVEN A HALF

HOUR AGO, BUT WE ARE SEE SOME OF

THE SOFT GOODS, PEPSICO NAMES,

REALLY STARTING TO MAKE A

COMEBACK HERE.

INTERESTINGLY ENOUGH, THOSE ARE

THE STOCKS THAT WOULD BE

RECESSION STOCKS.

AND THAT'S ANOTHER REASON WHY

THE 10-YEAR YIELD IS BACK ABOVE

3.6.

BY THE WAY, THE 2-YEAR YIELD IS

HIGHER.

THOSE ARE ALL SAYING THAT THE

FED IS GOING TO TIGHTEN, WHICH

THROWS US IN RECESSION, WHICH IS

WHY YOU SHOULD BUY PEPSICO.

JEFF, YOU KNOW THAT KIND OF NOT

WELL THOUGHT OUT THESIS CAN

SUPPLY IT OVER AND OVER AGAIN.

>> ABSOLUTELY.

WE CAN SEE HOW QUICKLY THINGS

CAN CHANGE.

BECAUSE LAST WEEK IT WAS THE

PEPSICOs OF THE WORLD OR HUMANA

JUST GETTING THROWN OUT.

HUMANA HAD A GOOD THIRD QUARTER.

>> WE HAD TWO PRICE TARGET CUTS.

>> ALL THAT MATTERED WAS IT WAS

A HEALTH CARE STOCK AND THAT'S

WHY IT WAS SELLING.

IT HAD NOTHING TO DO WITH THE

FUNDAMENTALS.

YEAH, I SAW THE PRICE TARGET

CUTS.

I THINK A LOT OF IT JUST HAD TO

DO WITH ANALYSTS ADJUSTING THEIR

MULTIPLES RELATIVE TO THE

MARKET, JUST LIKE THEY DO ON THE

UPSIDE TOO.

>> YOU KNOW, WE GOT A QUESTION

THIS WEEKEND ABOUT WHY OUR

EXCELLENT TEACHING, THAT'S A

GOOD TERM FOR IT, WHY DOESN'T

PROCTOR -- I THINK WE OWNED

PROCTER, BECAUSE RALLIES LIKE

TODAY ARE GOING TO BE THE

OPPOSITE OF LAST WEEK.

I EXPECT PROCTER TO GO TO 145 IF

THIS KEEPS UP.

BUT HUMANA IS THE BEST EXAMPLE

OF WHAT'S GOING ON.

HEALTH CARE, WE SHOULD BE SEEING

SOME OF OUR DRUG STOCKS DO

BETTER.

IT HASN'T REALLY HAPPENED YET.

J&J IS DOWN $1.12.

>> LILLY IS UP A LITTLE BIT TOO

IN REACTION TO SOMETHING THAT

SHOULD HAVE BEEN -- WELL, WE

WERE URGING EVERYONE TO LOOK

PAST IT BECAUSE IT HADN'T BEEN

APPROVED YET.

THEY'RE RAMPING UP MANUFACTURING

CAPACITY BECAUSE THEY DON'T WANT

TO GO THROUGH THE SAME

CHALLENGES THAT NOVO NORTIS HAS

GONE THROUGH.

>> YEAH, SPEAKING WITH MEG THIS

MORNING.

NOVO DID NOT UNDERSTAND THE

DEMAND.

THEY ALSO DIDN'T UNDERSTAND THIS

WHOLE TRICK THAT YOU HAVE WITH

OUTFITS LIKE ROMAN WHERE YOU GO,

YOU SIGN UP, MAKE SOME PHONE

CALLS TO DOCTORS.

THE NEXT THING YOU KNOW, YOU GET

IT APPROVED BY THE INSURERS.

SO LET'S JUST KEEP TRACK OF THE

FACT THAT WE GOT REACTION WRONG.

AND YOU SEE THAT IT CAN COME

BACK.

I CONTINUE TO THINK THAT YOU

MUST OWN A DRUG STOCK INTO THIS

PERIOD.

SO IF YOU DON'T OWN ANY J&J,

THIS IS A TREMENDOUS LEVEL.

YES, OF COURSE I'M WORRIED ABOUT

THE COURT SUITS.

BUT THEY HAVE REALLY BEEN ABLE

TO CONTAIN TALC SO LET'S NOT GO

NUTS ON TALC.

THE STOCKS HAD MANY MORE

BILLIONS LOPPED OFF IT THAN

THEY'LL EVER HAVE TO PAY OUT ON

TALC.

COMMUNICATION SERVICES, YOU

KNOW, JEFF, CISCO IS JUST LIKE

AN ALBATROSS.

>> YEAH, COMMUNICATION SERVICES,

TECH A LITTLE BIT DOWN TOO.

CISCO, I GUESS DOWN ANOTHER 75

CENTS TODAY.

PROBABLY LOOKING FOR AN UP

DAY --

>> YEAH.

>> THEY HAVE BEEN DOWN A COUPLE

OF DAYS IN A ROW.

>> YOU KNOW, YOU REMEMBER I

TALKED ABOUT IN A BULL MARKET

WHAT YOU HAVE TO DO, IF YOU HAVE

A STOCK THAT MIGHT BE OKAY,

YOU'VE GOT TO UPGRADE IT TO A

STOCK THAT CAN BE GREAT.

I DON'T LIKE TO SEE PEPSICO UP 3

POINTS AND CISCO DOWN.

THAT'S NOT RIGHT BECAUSE WE CAN

PICK PEPSICO.

THEY DO REPORT THIS WEEK, BOY

THE WAY.

TOP FIVE, YOU MENTIONED HUMANA.

CATERPILLAR.

CATERPILLAR'S CHART WASN'T SO

BAD.

I LIKE IT.

>> YEAH, THAT'S WHY WE PICKED UP

SOME SHARES THIS MORNING.

WE'RE FINALLY ABLE TO AFTER OUR

RESTRICTION.

STARBUCKS MAKING ANOTHER NICE

MOVE TODAY TOO.

>> IT WAS DOWN A BUCK AT ONE

POINT TODAY.

>> GOOD REVERSAL THERE.

SO LAST WEEK EARNINGS, YES, THEY

SLIGHTLY MISSED BUT A LOT OF

THAT HAD TO DO WITH CHINA.

THIS IS JUST ANOTHER THING WHERE

YOU HAVE TO LOOK PAST THE

WEAKNESS IN CHINA BECAUSE THAT

WAS A QUARTER WHEN THERE WERE

LOCKDOWNS, WHEN PEOPLE WEREN'T

GOING OUT BECAUSE OF SURGING

COVID CASES ACROSS THE COUNTRY.

>> REMEMBER, DECEMBER WAS GOOD.

>> YEAH.

>> IT WAS JUST NONSENSE TO ME.

I REALLY DON'T LIKE CALLS THAT

ARE BASED ON SENTIMENT.

YOU SEE THE STOCK GO DOWN.

I KNOW THIS SOUNDS REALLY WEIRD,

BUT YOU HAVE TO UNDERSTAND THAT

THE ANALYSTS ARE NOT DIFFERENT

FROM YOU AND ME.

THEY PUT THEIR PANTS ON OR

WHATEVER, THEIR SKIRT.

AND THEY SAY, WOW, THE STOCK WAS

DOWN BAD.

>> YOU MENTIONED THE MARKET HAS

STAYED DOWN TODAY BUT IT

REVERSED AND IT'S UP $1.75, NOT

ON NEWS.

DOES THAT SAY ANYTHING TO YOU,

JIM --

>> IT'S A BULL MARKET.

>> THAT A STOCK IS ABLE TO DO

THAT?

>> AND THAT'S WHY I KEEP SAYING

YOU'VE GOT TO KNOW WHAT KIND OF

MARKET YOU'RE IN.

IN A BULL MARKET, THE RESILIENCE

IS GOOD.

I SHOULD ADDRESS THAT TONIGHT

BUT I'M NOT GOING TO.

ESTEE LAUDER GOING DOWN, AGAIN,

SAME THING.

THAT TURNS, IT'S A STARBUCKS.

IT WILL TURN.

AMD, I DON'T HAVE A LOT TO SAY

BECAUSE DELL LAID OFF SO MANY

PEOPLE.

DELL DID SAY 37% IN PCs.

WE KNOW THEY AREN'T AS IMPORTANT

AS THEY ARE TO INTEL.

>> AND AMD SAID THEIR PC

BUSINESS TROUGHS THIS QUARTER.

SO IF DELL IS SEEING SOME

NEGATIVE THINGS AND THE WEAKNESS

IS NOW, THAT'S KIND OF WHAT.

AMD IS SEEING TOO.

AND THEY WERE LOOKING FOR A

LITTLE BIT OF IMPROVEMENT IN THE

SECOND HALF OF THE YEAR --

>> THEY STILL ARE.

THEY STILL ARE.

SO OIL AGAIN THIS WEEK, AS LONG

AS OIL AND NATURAL GAS --

NATURAL GAS WAS AT A MULTI-YEAR

LOW.

KOTERRA CAN'T RALLY AND THIS WE

ADDRESSED ON SATURDAY.

IT'S TOUGH.

I KNOW IT'S TOUGH.

BUT WE HAVE TO HAVE A CERTAIN

PERCENTAGE OF WHAT WE THINK IS

GOOD, AND WE SAID WE WERE GOING

TO CONSOLIDATE AND WE HAVE NOT

HAD A CHANCE TO YET.

FORD, I'M ALL OVER IT, WHAT CAN

I SAY.

WE GOT A PLEDGE FROM JIM FARLEY

SAYING THIS WILL NOT BE A BALL

DROPPER.

HE WILL MAKE THE NUMBERS THIS

QUARTER.

I ALSO COME WITH A PLEDGE THAT

WE ARE TAKING IT OUT IF THEY

DON'T DO IT.

I KNOW IT'S WEIRD TO SAY WE'RE

GOING TO WAIT FOR A GUY TO MAKE

THE NUMBERS BUT I HAVE TO GIVE

FARLEY THE BENEFIT OF THE DOUBT

EVEN THOUGH THE STOCK IS DOWN

24.

YOU'VE GOT TO DEAL WITH A LOT OF

THINGS.

INTERNAL COMBUSTION ENGINE BEING

DEVELOPED AT THE SAME TIME AS AN

EV, NOT EASY.

>> LOOK, THEY NEED TO EXECUTE.

IF THEY CONTINUE TO STRUGGLE ON

THEIR EXECUTION, THEN THE STOCK

PRICE WILL CONTINUE TO STRUGGLE.

TO YOUR POINT, WHY OWN IT IF

THEY KEEP MISSING NUMBERS.

>> ABSOLUTELY.

JUST TO MENTION IF STARBUCKS IS

UP 1.75, ESTEE LAUDER WILL NOT

STAY DOWN 6 BETWEEN HERE AND THE

BELL.

>> WE'RE ALSO SEEING REALLY GOOD

THINGS OUT OF MACAU FOR WYNN.

SO THE CHINA RESUMPTION OF

TRAVEL STORY IS STILL QUITE

STRONG.

WYNN IS ANOTHER ONE THAT OPENED

LOWER AND NOW IT'S UP.

I AGREE WITH THAT THESIS ON

ESTEE LAUDER COMPLETELY.

>> WHAT DO YOU THINK ABOUT

THE DANAHER --

>> I THINK IT'S DOWN A LITTLE

BIT ON THIS DEAL.

SURE, A LOT OF THEIR OTHER

ACQUISITIONS HAVE BEEN ON THE

PRODUCT SIDE, THE SERVICE SIDE.

IF THERE IS ONE COMPANY THAT I

HAVE CONFIDENCE IN INTEGRATING

AN ACQUISITION, IT'S DANAHER.

WHY?

THEY HAVE DONE IT TIME AFTER

TIME AFTER TIME.

THEY APPLY THEIR BUSINESS SYSTEM

MODEL AND EXPAND MARGINS.

WE'LL HAVE TO SEE WHAT HAPPENS

HERE.

MAYBE PEOPLE ARE WORRIED THEY'LL

HAVE TO KEEP BIDDING UP CATALINK

BECAUSE THERE WILL BE OTHER

BUYERS THERE.

IT'S ALWAYS A CONCERN.

BUT LOOK, IT'S A GREAT COMPANY,

A GREAT RUN TEAM, AND THE BASE

OF THEIR BUSINESS IS HIGH

MARGIN, RECURRING REVENUES.

SO I STILL LIKE IT.

I LIKE IT.

>> WE WERE STUNNED AS HOW GOOD

THEY ARE AND HOW WEAK THE STOCK

IS.

TONIGHT AT THE BELL, PINTEREST,

WHICH I THINK IS GOING TO BE

OKAY.

SKY WORKS SOLUTIONS WHICH IS A

VERY, VERY BIG ANALOG, WAS VERY

GOOD.

NOW, WE KNOW THAT APPLE, WE KEEP

HEARING THAT THEY ARE -- LET'S

JUST SAY NOT DELIVERING, BOTH ON

THE MACs AND THEY HAVE THIS

ULTRA NOW, WHATEVER.

BUT THEY WERE UPSET WITH THE

U.S. MACs.

THEY WERE UPSET WITH THE U.S.

REGULAR 14.

SO THAT SHOULD BODE POORLY FOR

SKYWORKS.

IN THE PORTFOLIO IS LENDING.

I THINK IT'S GOOD.

I WOULD BUY ON THE WEAKNESS, HOW

ABOUT THAT?

>> YEAH, I THINK SO.

THEY'RE STILL EXPECTED TO SEE SO

MANY NEW PROJECTS IN THE FUTURE

THANKS TO THE INFLATION

REDUCTION ACT.

BUT THE C.H.I.P.S. ACT AS WELL.

A LOT OF NEW MANUFACTURING

PLANTS WILL BE BUILT HERE AND A

LOT OF THOSE WILL REQUIRE

INDUSTRIAL GASES.

>> AND WE'VE GOT DuPONT TOMORROW

MORNING.

I LIKE TO STAY ON TOP OF THAT.

CENTENE SHOULD BE VERY GOOD.

AND THAT'S PRETTY MUCH THE

RUNDOWN FROM WHAT'S GOING TO

HAPPEN BETWEEN NOW AND THE

OPENING BELL TOMORROW MORNING.

THANK YOU.

JIM CRAMER, JEFF MARKS, FOR THE

HOMESTRETCH.