Apple Shines, Pres. Trump-Nvidia CEO Meeting, Vertex CEO on Non-Opioid Painkiller Approval 1/31/25

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Carl Quintanilla (0:59)

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 Friday 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. Stocks look to close out the month of January with a gain, maybe to all-time highs, while also bracing for the possibility of tariffs this weekend. PCE was broadly in line, but that 12-month headline does rise to 2.8. Our roadmap begins with Apple's bounce today. Shares are rallying after a positive sales outlook, signaling an iPhone recovery.

David Faber (1:32)

Plus Trump's tariff deadline, the president has confirmed he will impose 25% tariffs on imports from Mexico and Canada. That could start tomorrow. And the FDA greenlights a non-opioid painkiller. In fact, Jim has been talking about this for a long time. It's the first of a new kind of pain medicine. In decades, we will be joined by the CEO of the company. We're talking about Vertex Pharma. That'll be this hour.

Carl Quintanilla (1:56)

Let's begin with Apple rising on this quarterly beat and revenue guide. That despite an iPhone sales number that was a miss, hurt by a slump in China. Services revenue was a bright spot, hitting a record high. Jim, Web Bush today says, it's like trying to tackle Saquon. The Bears miss again.

Jim Cramer (2:13)

You can put eight up front. It doesn't seem to matter. I do think that the best news I felt was that where they have their Apple intelligence, their AI, sales are up. Now, they don't have to get in China. They need a partner in China. We know that Xiaomi, Huawei, they could have partners, they could use the deep sea for what we know. But it does matter that when they have AI, things go better because then you don't have to guide down the next quarter or two. People felt that the big issue would be the forecast cut. There was no forecast cut. David, this installed base, 1.38 billion users, just phone users, 2.35 active devices. This is what everyone knows is their ace in the hole.

The hedge funds keep thinking, what's the next iteration of the phone doing? Tim Cook is thinking, we have a lot of people who will buy more of our things, whether it be service or whether it be the different parts that we all know, like Mac, whether it be the ear buds. By the way, the watch is crushing it.

David Faber (3:23)

The watch is crushing it.

Jim Cramer (3:24)

Yeah.

David Faber (3:24)

Doing well.

Healthcare here. And I think this goes, listen, by the way, you've been talking about the fact that when the stock, when we kept getting downgrade after downgrade, you were right, and it would seem, at least based on this performance right now, and we'll see how it forms, that those were of no great value in terms of determining the future of where the stock was going.

Jim Cramer (3:47)

Ben Wright, so we should do on the minus 1.7 on the watch. I'm regarding the watch. The watch is high gross margin, but it's health. But anything health is doing well.

David Faber (3:56)

But you're saying it's doing well, but the numbers do.

Jim Cramer (3:59)

They're saying it's bad, but when I talked to Tim Cook, it was not at all clear that it was bad.

David Faber (4:04)

The down number was not bad?

Jim Cramer (4:05)

Yeah, I'm saying that's the one everyone's worried about.

David Faber (4:07)

Right.

Jim Cramer (4:08)

And Tim Cook is not saying that's bad.

David Faber (4:10)

Okay.