Apple CFO Steps Down, Bronfman Drops Paramount Bid, Lilly’s New Form of Zepbound 8/27/24

Carl Quintanilla (0:00)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

David Faber (0:08)

Good Tuesday morning. Welcome to Squawk on the Street. I'm David Faber. He is Jim Cramer, and we are live from Post 9th and New York Stock Exchange. Carl has the morning off. Let's give you a look at futures as we get ready to begin trading a half hour from now. You can see we're set up for a lower open.

Jim Cramer (0:22)

Nothing happened in the way since I got up at 3.30, nothing.

David Faber (0:27)

Okay, thanks for that color. Let's get to our road map this morning. Begins with, well, we're on TechWatch, AI juggernaut, NVIDIA, if you haven't heard. It's set to report its quarterly results. That'll be tomorrow after the bell. Apple also announcing its succession plan for its longtime CFO. Plus media veteran Edgar Bronfman drops his bid for Paramount, its parent national amusements that clears the way for that $8 billion Skydance deal that was already signed up. And Eli Lilly slashes the cost of its blockbuster weight loss drug.

It is hoping to boost access, ease some supply constraints we will discuss. But let's start with the markets. This is the day after the Dow hit a record close. Of course, as our viewers will know, I don't care about the Dow. What I care about and what many market participants measure themselves against is the S&P or even the NASDAQ.

Jim Cramer (1:19)

I was going to say the focus is the NASDAQ.

David Faber (1:20)

And yesterday was not a good day really for the NASDAQ, certainly not for tech. And it does seem related to perhaps some concerns about these NVIDIA earnings that will be here tomorrow after the close.

Jim Cramer (1:31)

Twofold. One is NVIDIA because people can't game it. So therefore, they want to sell it. That's the mindset. The other is that there's just not enough money coming in. Back to market was a good piece about money coming out of the market today. And what's happened is that typically when you have a Fed cut, you have money going in and it goes into the hot group. And then it doesn't come out of the not so hot. It actually goes in a little less. So typically what would happen is that you would have some upside to the tech stocks, but the big upside is to the general mills, the Colgate, and also to the utilities and of course the Toll Brothers. That didn't happen yesterday. What happened is that it was entirely money out of a sector and then money into another. There's not enough money coming in even though rates are coming down. People are stuck in the two year. They love the two year.

David Faber (2:21)

Why not? But there is this belief somehow that as rates come down, people will flee the money markets in which they've been getting a nice return, so to speak, certainly versus what they had for the 10 years prior, and will enter the equity markets again. Does that actually happen ever? Conventional wisdom.

Jim Cramer (2:38)

Yes, it has. They can flood the equity markets, but you need to have corporate buybacks be bigger than they are. They've slacked off. Then David, you have to have sudden rate cuts. because right now, if you have a quarter rate cut, big deal. That's not going to flood the market.

David Faber (2:55)

People are not going to leave money markets.

Jim Cramer (2:56)

No. We should talk about this in video, because in video is obviously weighing on everybody's mind. The idea that this one stock and this one report could be so crucial, seems fatuous to me. Fatuous because you know that there are some companies that are doing quite well with AI. Meta, for instance. You know that there are companies that are trying to do cheap GPTs. You know that there are companies that are awaiting the Blackwell. You know that the demand is high. So what has to happen? I'm going to put the Jensen Wong question, which is that what does it mean to be constantly so examined, so microscopic that it carries the market? I don't think you expect that. I mean, yesterday I got an email from someone who said, I've had enough, this guy is costing a lot of money, which is very rare, because he keeps selling a lot. Well, it's true, he does sell a lot of stock.

David Faber (3:57)

Jensen Wong sells stock in Nvidia.

Jim Cramer (3:59)

He has a lot of stock. Now, I guess he's supposed to go to his grave with a used position. I mean, what is the point? Any estate planner would say, you know, good job, you're not affecting the market, you're not just slamming the piece down. But no, I mean, I'm saying that there isn't anything about Nvidia that right now isn't under scrutiny, and the long knives are out for Nvidia.