Jim Cramer says the AI rally is waning and points to four consumer‑staples names—Kimberly‑Clark, Procter & Gamble, Constellation Brands and Coca‑Cola—as better bets for October.

After a sharp pullback in the Nasdaq‑100, which fell almost 7% in October, CNBC’s Jim Cramer told investors on Friday that the market’s focus should move away from the struggling artificial‑intelligence trade toward defensive consumer‑staples stocks, a sector that jumped more than 11% for the month.

Why staples are in favour

• The S&P 500 Equal Weight index rose about 5% in October, outperforming the market‑cap weighted S&P 500.
• Consumer‑staples index posted an 11.4% gain, the second‑best sector after energy.
• Cramer said “you’ve got to take what the market is giving you” and suggested “camping out in the staples for a bit.”

Four stocks Cramer highlighted

• Kimberly‑Clark (KMB): New holding in Cramer’s Charitable Trust, poised for synergies after its pending merger with Kenvue; trades below 15 × earnings with a 4.7% dividend yield.
• Procter & Gamble (PG): Exited by the Investing Club in July but still seen as a solid defensive play after a strong earnings beat; Cramer prefers KMB’s lower valuation.
• Constellation Brands (STZ): Beer maker showing market‑share gains and 15% growth in its wine‑spirits unit; up 20% in October, trading around 11 × earnings with a >3% yield.
• Coca‑Cola (KO): The only soda maker Cramer favours, buoyed by volume‑driven earnings and new zero‑calorie and protein‑rich offerings; shares rose 9% in October.

What traders are watching next

• Kimberly‑Clark’s merger closing timeline and any post‑deal cost‑synergy updates.
• Procter & Gamble’s next earnings release and any guidance from new CEO Shailesh Jejurikar.
• Constellation Brands’ quarterly shipment figures for its beer and wine‑spirits businesses.
• Coca‑Cola’s sales mix trends, especially the performance of its Fairlife and zero‑calorie lines.

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This article is compiled from international market news for information only. It is not investment advice.