"Best Week" Rally, Disney Picks a New CFO, Riding the "Magnificent 7" 11/6/23

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Jim Cramer (0:31)

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 (0:38)

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer. At post nine of the New York Stock Exchange, David Faber has the morning off. Bulls trying to build on the best week for stocks in a year.

Dow is at six week highs. NASDAQ going for seven straight gains. We'll wrap up this final busy batch of earnings this week. Ten year for six, our roadmap begins with stocks in rally mode. Stocks coming off as we said, best week since November of last year. Futures point to more gains in the open. Media is in focus. Disney reports this week Paramount with a double downgrade over B of A and Citi, considering some steep job cuts as part of a corporate overhaul.

Let's begin, though, with this new week for the markets. Jim, you had some words this morning on X for Mike Wilson, arguing that things actually changed last week.

Jim Cramer (1:22)

Yeah, I mean, look, Mike said he wants to keep an open mind. I don't know the fellow. I mean, he's obviously been a dominant force during this bear market for much of the market. But he wants to keep an open mind, but at the same time, it's like last week didn't occur. We see it. Analysts don't understand what I think is a true seed change. When you get the sellers are done, interest rates go down, fed out of the picture for a while.

And then the next thing you know, we have a bond issuance that makes it so you can't shoot against the bonds, and you have the largest short position bonds in history. So what happens is you coalesce with shorts in stocks, because they've been pretty easy for a while, shorts and bonds capitulating, nothing to shoot against. Well, that's kind of... I know that's not a theory about the consumer doing better. It's not a theory about the Magnificent Seven. It's a theory which just says you can buy. And that's sometimes more powerful than looking at individual groups. And it's time to just say, you know what? There's not a lot of resistance here.

Where are the sellers? They've disappeared. It looks like they ended the quarter, ended in October, which is a fiscal year for mutual funds.

They're gone. That's why it was so easy to go up. I mean, let's take Apple. There was nothing special in Apple. I hadn't liked Apple, but there was nothing special. That was kind of a paradigm for last week. The sellers dried up at 171, 172 And then the next, you know, the buyers just said, oh, what the hell, let's just take it up.

You know, oh, what the hell, just take it up seemed to be the theme of last week.

Carl Quintanilla (2:49)

You make the point about the end of the quarter, the October quarter. Yardeni's point is that was a deadline for any kind of tax law selling.

Jim Cramer (2:57)

Right.

Carl Quintanilla (2:57)

Does that mean the coast is clear, at least on bonds?

Jim Cramer (3:00)

Well, kind of. I mean, we didn't, we don't have really strong data.

There's not a lot of 30-year paper. We thought we'd be overwhelmed with 30-year paper.

I, you know, I struggle to think, okay, is what could be the disadvantage here? Maybe mortgage rates come down in the housing business, the stocks were saying, listen, we could come back and the Fed doesn't like that. I think the biggest problem is, is that Powell knows that two months is not enough. You have to see six months of no growth. So that's, there were some calls for January. It's very funny, like, well, the hike's going to go from December to January.

Carl Quintanilla (3:38)

Barclays, yeah, Barclays pushes back.

Jim Cramer (3:40)

But I found ourselves, you know, I just think we're looking at individual stocks now because we don't have to worry so much about the big picture because of the tenure. And that's how you get an upgrade in Bank of America. That's, again, upgrading key, even though they're talking about a dividend cut. An upgrade in US. Bancorp, this is the group that has been the most penalized. So if you're, again, to circle back to Mike Wilson, if you're looking at no breath widening, I'm looking at the banks suddenly being buys. I want to buy First Horizon, that got a $24 bid as the 12th. US. Bancorp 5% yield, that's not bad.