Jim Cramer discussed Disney's stock performance after earnings to illustrate Wall Street's current dynamics. Investors want rate cuts but worry about weak consumer spending.
Key Points:
- Investor Dilemma: Investors desire rate cuts but are concerned about consumer spending. Cramer emphasized that this conflict is problematic.
- Disney's Earnings: Disney beat earnings and revenue expectations, driven by strong streaming services performance. However, theme parks were impacted by inflation and weaker demand.
- Stock Reaction: Disney shares fell 4.5% by Wednesday’s close.
- Cramer's Take: He believes the Fed will cut rates to ease consumer pressure, and Disney might reduce prices due to success in other business areas.
- Market Dynamics: Cramer noted that Disney’s parks remain relevant but are more expensive than other leisure options. He added that rate cuts might still be necessary even if companies like Disney lower prices.