2-Year Low Inflation, Debt Showdown, Airbnb Tumbles, Exclusive With Endeavor CEO Ari Emanuel 5/10/23

SPEAKER_1 (0:00)

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Jim Cramer (0:25)

It's Jim Cramer here. You're listening to the opening bell of CNBC Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:33)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. The market does appreciate CPI today in line and the first crack below 5% in two years.

The June rate hike odds fall to about 10% amid this flurry of corporate results, both today and tonight. A roadmap begins with the macro picture. CPI better than feared, notching as we said, lowest read since 2021 And no DC deal yet as a debt default looms.

David Faber (1:00)

Plus Airbnb's cautious outlook shares are slumping as the company forecasts fewer bookings and lower prices in the second quarter. And we are keeping a close eye on the EVs. Rivian's losses shrink, Tesla's Texas output hits 5,000 a week and BYD cutting prices on its top selling sedans.

Carl Quintanilla (1:19)

Let's begin with that market reaction to CPI. As we said, four, nine year on year in headline, five, five on core, Jim.

Used cars actually up for the first time in several months, up four.

Jim Cramer (1:29)

Yeah, I've been struggling over that. New cars actually are both in abundance and also you're getting much better credit terms. And so I don't really, I mean, if you wanted to look at what I think May would be, that's going to be down. I also think that I've begun to take a lot of issue with the compilation of these things. For instance, I do a lot of work on apparel.

Apparel is up in price, and yet there is no, there is no single piece of clothing that's up in price.

Sara Eisen (1:59)

So how did they get that?

Jim Cramer (2:01)

Fuel, fuel is barely down, and yet gasoline is down more than a buck and a quarter from a year ago. So even the areas that are, with the exception of rent, that are up are, I think, poorly tabulated.

And honestly, you can say that they're just wrong all the time, so what? But I just think that this is a very, very positive number for the Fed and what they're doing. Kind of flies in the face of what Mr. Williams said yesterday. This is, David, the beginning of what I find to be an almost universal categorical decline in every single price.

David Faber (2:42)

Sarah was with Williams yesterday in Midtown, and I'm told that we actually have some sound from that interview. We should take a listen because he perhaps had a somewhat different view than we heard.

SPEAKER_6 (2:53)

Yes, first of all, we haven't said we're done raising rates. What we're signaling is we're going to make sure that we achieve our goals and we're going to assess what's happening in the economy and make the decisions based on that data.

And if additional policy affirming is appropriate, we'll do that. So I do not see in my baseline forecast, any reason to cut interest rates this year.

David Faber (3:17)

So no cuts this year, according to him.

Jim Cramer (3:21)

Maybe the data are irrelevant.

David Faber (3:23)

What do you mean?

Jim Cramer (3:24)

Well, if you listen to Stan Druckenmiller, he would say, well, they've inflated us to the point where this doesn't really matter. It's just a catastrophic development. Now, if you go back to 2022, he said the same thing. He said there'd be a big bubble. We do have a bubble.

These numbers may not be convincing enough to the Fed, which wants to see more than just a month or two. But Carl, the fact is, is that almost every calculation is incorrect.

Carl Quintanilla (3:54)

You don't trust the data.

Jim Cramer (3:56)

The data is empirically wrong.

Carl Quintanilla (3:58)

Yeah, I mean, Cleveland Fed was even hotter than this print came out.

Jim Cramer (4:02)

Well, you know, look, okay, so you have, I do a lot of work with the utilities. We've spoken to utilities for 40 million people in this country. And the utility shows very, barely downed. But natural gas has been cut in half. So, I mean, I don't know how I, I'm stuck with what I do.