Apple Jumps on Q2 Beat, Markets Playbook for May, Big Oil Earnings Beats 5/1/26

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Jim Cramer (0:53)

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 (1:01)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. David Faber has the morning off. S&P futures seeking out some fresh highs as Apple's up nearly 4 percent pre-market on earnings, which is boosting the Dow as well. Got some upside movers in software and conversely, some selling in semis with Western Ditch and Sandisk in the red. Oil is off the highs on these reports that the Iranians have given a new proposal to Pakistani mediators. Retail gas, though, now averages $4.42 a gallon, up 9 cents in just the past day. Roadmap begins with Apple's strong quarter, booming iPhone demand, better than expected guide, but a warning on supply and memory costs from Tim Cook. Watching oil as gas prices do continue to climb, Exxon and Chevron see profits fall due to the war in Iran. And then there's the tech trade, Intel, best month ever. And the Mag 7 helping fuel stocks to their best month since 2020

Let's begin with Apple's quarterly beat and guidance that did impress the street. Revenue tops $111 billion.

iPhone up almost 22, helped by strong demand for the 17 in China. Service is record high. Company also authorizes an additional $100 billion share buyback, Jim, which is bigger than the market cap of 340 S&P'ers.

Jim Cramer (2:22)

Well, toward the first quarter, really amazing conference call.

The stock was down about $1. People were selling it pretty heavily. And then they announced this blowout, the race. And one of the things that I thought was incredible was, they now guide to 14 to 17 People are looking for nine. You got a double-digit, mid-double-digit gain. And so suddenly, the stock, maybe the stock's not as expensive as people think.

Carl Quintanilla (2:50)

Yeah, second consecutive quarter of double-digit sales growth.

Mac up six. You talked to Tim Cook.

Jim Cramer (2:57)

Yes, I did. And I don't know we have much talk, but China, unbelievable. Amazing that he says the countries are together. I don't know if we have.

Carl Quintanilla (3:06)

We do, I think, have some things built.

Jim Cramer (3:08)

It's important to listen to this.

Carl Quintanilla (3:10)

Well, actually, they're just full-screen quotes of his works, too.

Jim Cramer (3:13)

Okay, so there you go. Now, this surprised me, because I had thought that, like many people, that things are much tougher.

If the government is in sync with us, then they're allowed to sell a lot, and they're sold high-end phones. And that's good, because high-end phones can be marked up with memory, so I'm not as worried. I thought that the services was extraordinary, because now you're starting to talk. I remember when it was first broken out, we were talking about being a 25-billion-dollar company, and then it was a 50-billion-dollar company. Now, I mean, they're doing levels that is extraordinary. We're talking about services of 16% growth, and that is going to drive things for a very long time, because Tim thinks that's where they're going to build things out.

You know, do 30, 30 billion and a quarter, I think that can be much bigger. And I tried to press him on whether it's going to be the wallet, what are they going to build, and he said, listen, can't talk about what we're going to build. He doesn't like to talk about future things. But I think that service revenue is going to change a lot of people's mind. At one point, I did insult Tim. I didn't mean to. A couple years ago, I said, oh, it's like the Proctor Gamble razor, razor blade. And he said, no, Jim, it's technology. And I was like, oh, God, I'm sorry.