2025 Playbook, "Magnificent 7" Momentum, Tesla Slides on Deliveries 1/2/25

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SPEAKER_2 (0:31)

It's CNBC's big January with CES from Las Vegas, Biotech and Pharma at JPM Healthcare, the World Economic Forum in Davos, and the first Fed decision of the year. Start the year ahead of the game, CNBC.

Jim Cramer (0:46)

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.

David Faber (0:53)

Happy New Year, everybody. Welcome to Squawk on the Street. I'm David Faber with Jim Cramer. We are at post line of the New York Stock Exchange. Carl has the morning off. Let's give you a look at futures as we get ready to start the trading year, as we say. And as you can see, we are looking for a nicely higher open. And that's where our roadmap begins this morning. Markets are in rally mode to start the new year of trading. This after stocks did finish what is the best two year stretch we've seen since the late 90s, even despite a couple of down days there to end the year.

Also ahead, Wall Street awaiting Tesla's delivery numbers, they could come out. You never know with Tesla, they could come out as soon as today. And we'll bring them to you, of course. And we're also gonna stay on top of developments surrounding that deadly New Year's Day truck attack in New Orleans and the explosion of the Cybertruck as well outside a Trump Hotel in Las Vegas. Let us though start with the markets again after what was a very strong year last year, particularly for the S&P. And in many ways, Jim, I'm so happy to have you back. To see you, my friend. Happy New Year to you. Happy New Year to you. The diversion between the equal-weighted S&P and the S&P itself was significant once again. I know many hedge funds are happy to measure their performance this year. Equal-weighted, not the S&P index, because almost nobody could beat the 24 or so percent performance. There it is, 23.3% of the S&P. That doesn't include dividends, by the way. What do you think?

Jim Cramer (2:20)

What do you think?

Well, first of all, Mag-7, 33.5% of the S&P at the end, 66.5%. The rest, I think a lot of people got the Mag-7 wrong. I think it's possible, something I want to talk about tonight. Maybe we're going to be in an era where there are four and five trillion dollar stocks, because the numbers keep going. I like to sometimes think about what goes right versus what goes wrong. And the reinvention that I keep thinking about these companies, it's endless reinvention. So, I just keep thinking, people want to count them out, but they don't realize they work in an environment where there's no recession. They worked in an environment, by the way, there was going to be a recession when it looked like the mini banking crisis two years ago. But the stocks that really led were very hard. I mean, when you look at some of the stocks that led, say, in the S&P, Palantir, Palantir just keeps showing up.

David Faber (3:12)

We all know, right, over 350%, as I recall. Although now we're starting from zero again this year. Today, you know, everything's zero.

Jim Cramer (3:19)

But that's a retail stock that people like.

David Faber (3:21)

Yes.

Jim Cramer (3:22)

Then Vistra. Once again, you've got this nuclear theme, which is way overdone.

David Faber (3:26)

Who would have thought a year ago, though, Jim, that Vistra, Vernova and Constellation Energy, I spoke about this on Tuesday with Mike as well, Mike Santoli, that they would be the great performance this year. I mean, there's always something that surprises us. Don't know what it's going to be this year.

Jim Cramer (3:41)

You don't. I mean, because remember it was charging stations.

We also had, let's not forget, quantum computing, which is another one, this time may never come. I don't know. But Scott Strasing, who I think is the foremost executive when it comes to nuclear, CEO of GE Vernova, sat right there and told us, look, 1930, 2023, 2024, 20, 30, 2032, 2033, yes. No one listen. Everyone think there's going to be small form nuclear reactors.