All About The Banks, Nvidia’s Race for #1, Boeing Seeks to Fix Finances 10/15/24

Jim Cramer (0:00)

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

Carl Quintanilla (0:08)

Good tuesday 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. Coming off record highs for Dow S&P, now the best election year since the 1930s. futures are a bit subdued, even as financials beat across the board. Oil falls below 70 amid reports Israel will not target Iranian production. Our roadmap though begins with the banks, B of A, Goldman, Citi, PNC, Swap. All crossing the tape will break down the results.

David Faber (0:35)

Plus, it's the race for number one. Nvidia hits a closing record. It is now within striking distance market cap wise of the world's most valuable company. Of course, that's Apple. Boeing shares are bouncing. The company is seeking to raise billions in equity and debt. Of course, it's an effort to stabilize its finances as it deals with that strike.

Carl Quintanilla (0:55)

Let's get right to the banks, B of A, Citigroup, and as we mentioned, the biggest names reporting today. By the way, do not miss our interview with B of A's Chief Brian Moynihan. That's coming up in the next hour. Pretty good across the board. Some of these next charge-offs, Jim, rather mild.

Jim Cramer (1:11)

It's funny. We can talk to these guys from Bank of America. It's just a consistent good quarter and yet the stock sells 13 times earnings. I think this is the beginning of when we start saying either the S&P shouldn't be at 21 times earnings or the bank shouldn't be at 13 times earnings. these are really extraordinary numbers. And I think, David, you can speak to something that almost no one else can do as well. There was virtually no M&A. There was virtually no equity on raise. these companies can make this much?

David Faber (1:41)

Without a really... I mean, listen, capital markets, that capital markets are fairly active to some extent.

Jim Cramer (1:49)

Yeah, but you can see what Solomon would tell you that, yeah, you think they're fairly active but they're still down a lot from...

David Faber (1:56)

I mean, well, you talk about Solomon, obviously Goldman Sachs is also going to be up rather nicely this morning after a better than expected quarter. But to your point, investment banking fees, they were 1.87 billion. That was 20% higher than the third quarter of last year. But that's still not saying much. Debt underwriting, though, was one of the keys there.

Jim Cramer (2:14)

It's not saying much. I don't disagree.

David Faber (2:16)

It's not saying much because it has, as we've said, when it comes to M&A, certainly when it comes to IPOs, it has been a lackluster market. It's certainly at least given expectations as we came into this year, which once again are higher for next year in terms of all these things happening that did not occur this year. But that said, that's not where the money's being made, Jim, right?

Jim Cramer (2:36)

Well, trading's fantastic. I mean, trading is just like, jeez, Bank of America had no days they lost money. No days. I mean, can you imagine? They open the door, turn the lights on, make money. That's a good business. That, Carl does not deserve this low multiple. This is a real company making just tons of money in a consistent way. I think it's time to revalue this group.

Carl Quintanilla (2:59)

Actually, the biggest pre-market gain is going to belong to Schwab. Some of these net new assets are up 10

Jim Cramer (3:04)

We were huge backers of Schwab for the show, and we had Walt, or Walt Bencher, and we were like, why is this so hated? I mean, come on. It's a good bank with a lot of money coming in, beats the numbers. I mean, this is so far behind the market. This was a joyous quarter for Schwab. Because when we had them on, it was like, should we have them on? Should we come on? I don't know. Should we have them on? That's how it was doing. Next thing you know, it's like, wow. The answer is yes, it's back. It's bigger than ever.

Carl Quintanilla (3:35)

We'll talk to Walt and Rick Worster later on this morning at 11

Jim Cramer (3:40)

Please congratulate Walt. Everyone, he came on. I called him up and said, man, you got to come on. I figured he'd just say, what are you kidding me? He said, done.

David Faber (3:48)

We always get a read on the consumer. I'm sure we're going to get a lot more when Sarah talks to Brian Moynihan later in Squawk on the Street.