The Home Depot, Inc. (NYSE:HD) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market.
Cramer noted that the stock performs well during a rate cut and vice versa, as he remarked: Okay, so let’s go to retail
Consider Home Depot… This is the most seized upon stock when you think that interest rates are going to get cut. We’re about to get a new Fed chief shortly, Warsh, and he’s known to favor lower rates, okay? Now, though, with oil up huge because of the war, and the soon-to-be-reported CPI is supposed to run hot, the market’s going cool on the idea that there could be any rate cuts.
So they’re eviscerating the stock of Home Depot because it’s very difficult for the business to run without a rate cut. It needs housing turnover. We don’t have it.