April Jobs Report and Apple Combine to Spark Market Rally 5/3/24

David Faber (0:00)

Market Insight and Analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:05)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla, Jim Cramer, David Faber at the New York Stock Exchange. Futures are soaring as the market welcomes this miss on April jobs. 175,000, some negative revisions, wages run cool, 10 year is back below four and a half. And that's where our roadmap begins. Stocks roaring on the less than expected number. Unemployment rises a tick to three nine.

David Faber (0:27)

Plus Apple is posting a double digit drop in iPhone sales, but it did approve that $110 billion buyback. That's the most ever for a public company and it is giving the stock a boost in the pre-market.

And the price for Paramount, Sony and Apollo submitting what is an all cash $26 billion offer. That includes debt, by the way, for the company. But I will bring you up to date with the very latest reporting on this saga.

Carl Quintanilla (0:52)

Let's get the market reaction to this morning's jobs numbers. As we said, 175, we were looking for 240

Negative revisions of about 22K. Bond market kind of sniffed this one out, Jim.

Jim Cramer (1:01)

Yeah, it did. This is one of those moments where I think you're sitting there and saying, well, think about the narrative we had on Tuesday that tomorrow, Powell's going to lower the boom and talk about how, yeah, I mean, the chances are we could have a rate hike. And he would have looked very foolish. Instead, now people are saying, did he have the number? No, I don't think he had the number. It's pretty tightly kept secret. But David, when I look at this, I say to myself, all right, we'll probably, we'll get a rate cut if things get a little bit lighter.

And that the market is very poised to have a run here, which is really amazing.

David Faber (1:36)

Well, yeah, I mean, the tenure right there tells the story, doesn't it, Jim?

Falling dramatically in terms of yield as it has. We were at 4.7 very recently.

Jim Cramer (1:45)

Yeah, it's very positive.

David Faber (1:48)

It's very positive.

Jim Cramer (1:48)

Yeah, it is because now we're, there's not much ahead of us because we're kind of out of the big earnings period.

David Faber (1:54)

Yeah.

Jim Cramer (1:55)

So if you can kind of coast on a lot of stocks.

David Faber (1:58)

That said, we're still gonna continue to have this endless conversation as to how many and when in terms of rate cuts. And it doesn't appear that one is on the horizon in the nearest term.

Jim Cramer (2:07)

Well, let's do this. Why don't we just ban it here and just do our viewers a favor and just say, okay, look, there's, we had unemployment and we had a Fed meeting and those are the two things that really matter. And now we're gonna have to be like the Fed and be data dependent.

If there's data that's in line, then we should just stop squawking about it and play, we should not be playing the parlor game of well, so and so from the state of Cleveland. That's how I view it.

David Faber (2:30)

Well, then you've just wiped out about six hours of programming a day here on CNBC.

Carl Quintanilla (2:34)

We're jumping back into FedSpeak tonight.

David Faber (2:36)

When you figure out what you want, how you wanna reprogram that, you let me know.

Jim Cramer (2:39)

Well, how about we try to make people money?

Carl Quintanilla (2:42)

It's a novel idea.

Jim Cramer (2:44)

Radical idea. I draft Kingsone last night, story was really good. I would buy that.

I had Brinker, I mean, I can't believe he's turned the corner. Senco de Mayo is a really big day for him. He's the largest seller of tequila.

No, let me instead talk to you about how, you know, it could be, you know, it's possible they could do a 35 basis point. You probably never thought of that. That would be interesting. And David, let me tell you.

David Faber (3:01)

How about 36 and a half?

Jim Cramer (3:02)

They could do that. And David, let me tell you about the two year.

David Faber (3:05)

Uh-huh. Tell me about that two year.

Jim Cramer (3:07)

No, look, I'm sorry to be a dissident, but I'm not Solzhenitsyn here.

You know, like, I've really just made, planted the flag. No, I'm just saying, look, let's just say that the two big numbers are unemployment and the Fed, and that let's not get confused. We're in a moment where we've now had the two big bad events, and let's just take a look at it. We should try to at least make sense of companies on the basis of earnings. I know that it was impossible to do during the last few days, and it was very disarming, because you want to try to make people money. And then people, I keep hearing that people say it's a stock picker's market. That's nonsense. It's an S&P driven by Fed market era. And I think within that era, it's very hard to pick stocks.