Jim Cramer lists 10 market themes to watch after the Fed’s July hike

CNBC’s Jim Cramer said Wednesday that “parsing the Fed’s move is a mug’s game.”

After the Federal Reserve raised rates to their highest level in 22 years, Cramer said investors can use market volatility created by the central bank meeting to buy stocks in line with 10 themes from this quarter’s earnings season.

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“Why am I so confident about all these particular groups? Because the information is on time, it’s current, it’s now,” Cramer said. “We know how the market’s reacting to these issues in real time. That’s what I like.”

Here are Cramer’s 10 themes:

1. Generative artificial intelligence: Cramer pointed to Alphabet, ServiceNow, Adobe, Salesforce, Meta and Microsoft, which he said is currently down enough to buy. He mentioned Nvidia as a common thread for all of these companies, as they need its graphics cards in order to operate generative AI programs.
2. Housing: Investors should pay attention to housing companies like Pultegroup, Lennar and Toll Brothers, Cramer said, as they seem to be unaffected by the Fed’s rate hikes.
3. Margin expansion: Cramer discussed companies that have been able to keep price points high even as raw costs come down, mentioning PepsiCo and Unilever.
4. Enterprise software: The enterprise software sector is currently a market favorite, according to Cramer. He recommended MongoDB, Confluent, Monday.com and Cloudflare.
5. Travel and leisure: The travel and leisure sector has remained strong in the aftermath of the pandemic, Cramer said. He recommended cruise lines Carnival, Royal Caribbean and Norwegian Cruise Line, along with carrier Delta Air Lines.
6. Cybersecurity: Cramer highlighted his favorites CrowdStrike and Palo Alto Networks.
7. Infrastructure: The infrastructure sector is strong across the board, Cramer said. He recommended alternative energy companies like Tesla or Eaton, along with builders like Caterpillar and Nucor.
8. Chinese economy: Cramer recommended stocks with ties to the Chinese economy like Starbucks, Wynn Resorts and Apple.
9. Supply chain: Cramer pointed out companies benefiting from supply chain normalization, like tool and household hardware manufacturer Stanley Black & Decker.
10. Trading down: Cramer discussed companies that have benefited from consumers trading down, such as Walmart and Costco.

“I like my approach: It’s clinical, unemotional, and empirical,” Cramer said. “Remember the theme this week: Keep it simple. Those 10 categories are as simple as they get.”

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Alphabet, Apple, Microsoft, Meta, Salesforce, Caterpillar, Palo Alto Networks, Wynn Resorts, Apple, Starbucks and Costco.