Apple Hits Record High Ahead of WWDC, Market Momentum vs. Bears, Saudis to Cut Oil Output Again 6/5/23

SPEAKER_1 (0:00)

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Carl Quintanilla (0:30)

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.

Good Monday 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 the best week for stock since March as we now head into a Fed blackout.

And today, an event at which Apple is said to by some to unveil its most important new product in 13 years. A roadmap begins with market momentum though. S&P best week since March, highest levels since August, but some strategists now warning of risks to the rally ahead.

David Faber (1:04)

Plus, Apple is expected to get into the headset game, preparing for what may be its biggest product launch in over a decade.

And oil prices are up this morning. Saudi Arabia pledges some big cuts in production in July.

Carl Quintanilla (1:19)

Let's begin with the markets though after Friday's rally.

Jim, we were looking for maybe some of those who were fundamentally bearish to turn tail. Not happening at Morgan Stanley.

Jim Cramer (1:27)

No, not at all. But I looked at Friday and I said, this broadening out of the rally, which everyone thinks is good, I'm not quite sure. And the reason I say that is because you really need sideline money to come in.

And sideline money is sticking to its decision not to come in. So why, David, why would we suddenly have, based on a somewhat stronger number, a belief that there'll be, I mean, I think there will be a skip, that it's time. Why is it time to start buying?

David Faber (1:57)

I can't necessarily give you a reason. Because we don't seem close to a recession. So that I assume is kind of good.

Jim Cramer (2:04)

I agree.

David Faber (2:05)

That said, your point about stickiness, you know, things are stickier when you get 5% as opposed to zero.

It just makes it a tougher decision. It's like, well, I'm getting 5% over here, the risk-free rate. I got the debt ceiling issue out of my way now. And no signs that rates are going to come down anytime soon.

Jim Cramer (2:26)

I cannot disagree. I'm allowed to obviously have a 401k. And I am, every month I put money in, because that's the way I've done it since 1982 I just, you know, whatever it is. If it's $500, it's $50.

And I'm not doing it this month. Because I keep thinking, what am I doing? 5%?

I mean, I've been dreaming of getting 5% for my cash for agents. So I just can't say, oh, after this big run, including Friday, now's my chance to get in. No, so I'm not going there.

Carl Quintanilla (2:58)

Interesting, because now that we do have the debt ceiling under our belt, we're looking for a trillion maybe in fresh issuance. Before the end of the quarter, B of A says today, that's probably worth another hike, a quarter point hike.

Jim Cramer (3:09)

Boy, I'll tell you, it's interesting. I was bombarded with people who said to me, are you aware of how much money has to be sopped up?

I come back and I was thinking what Brian Moynihan said this weekend, and there's a pullback among people. Look, we've had some consumer spending that's been elevated. I've got this from them today. They have 68 million. We know they were on TV, but Brian was on. 68 million consumer customers with an average of 40% more in savings than they had pre-COVID, but the amounts come down.

I think that what's happened is that we're still going places and doing things, but we're at a different moment. I think we're at a moment where whatever money that you might have in your savings account, really also loves the 5%.

David Faber (3:56)

Yeah, it does. I mean, as for this concern about this massive issuance from Treasury, we've been talking about it now for a couple of weeks. I can remember we were discussing it when we were out in Santa Barbara, which is already a couple of weeks back now. The market usually adjusts for these things.

It tends to be when we talk about something for weeks, it tends not to actually end up being the concern we thought it was. I don't know. That's just kind of what I found through the years.