Big Bank Earnings Day 2, Nvidia CEO in China, Inflation Surprise 7/16/25

SPEAKER_1 (0:00)

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Carl Quintanilla (0:47)

Market insight and analysis. You're listening to the opening bell of CNBC Squawk on the Street. Good Wednesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at post night of the New York Stock Exchange. Faber has the morning off. Pre-market equities are encouraged by this soft PPI print this morning. Unchanged on headline and on core. Yields back off a bit after the long bond hits 503 That was the highest since late May. Our roadmap begins with a fresh round of bank earnings, B of A, Goldman, Morgan Stanley and more. Nvidia with some new record highs. Jensen Huang talking in China about doing more business there. And the president reportedly preparing an executive order to help open up 401Ks to private markets. Let's begin though with day two of these bank earnings as we said. Goldman Sachs, Morgan Stanley with quarterly results mostly beats B of A results come in mixed. Jim, the star of the show, maybe Goldman Equities, the best trading quarter in the history of Wall Street.

Jim Cramer (1:49)

I was astonished by the call, could make this much money. And by the way, it's a prelude. What they're saying is that investment banking is going to get incredibly hot. IPO is really coming together. Look, what they've done, they've cut expenses. They're making a lot more money. And I think it's just their time. It's what they're set up to do. Wealth management was fine. I like wealth management. I go to Morgan Stanley for that. But I was just quite impressed that they are so bullish. See, that's something that I've not heard. I mean, everyone's circumspect, right? We've heard all the circumspect. And Jamie led the circumspect group.

David Solomon led the Good Times Roll. Yeah?

Carl Quintanilla (2:34)

Well, he does say, Jim, that policy rarely develops in a straight line, and we remain very focused on risk management.

Jim Cramer (2:43)

Well, because he did cut back on the PE exposure. And PE was too episodic. And so you're just going to say, wow, it's up and down, it's up and down. But I guess what I'm really focusing on is that I think that what he's saying, you know, look, the big, beautiful bill is going to get a lot of people going. A lot of people really want to do deals. I think he would say that the regulatory environment is certainly getting better.

I just, it kind of reminded me of like before things got really all convoluted, I mean, I had to have all the different regulatory stuff. And Jamie, yesterday, by the way, did do this great takeout on all the different regulations. And it was, it was astonishing. That's, because your question, I took very seriously about what is he saying yesterday about regulations and how regulations have not changed. And there absolutely is this, there is a series of ratios that are very punitive. But I thought that Goldman is saying, look, we've got a lot of opportunity here to be able to make a lot of money in M&A and investment banking. Wow, investment, those are big margin businesses because when you go to M&A, I used to go to the M&A floor and there was like six guys there and they're each making 17 billion. And I'm like, wow, I was however on this floor. I got the floor that has 100 people and they're making like 7 billion. So I just was very impressed. Now we have some downward pressure on the group and I get that.

Carl Quintanilla (4:04)

Is that just a negative halo out of the Wells guy?

Jim Cramer (4:07)

Yeah, well, I mean, Wells was, look, Charles really was trying to shift, Charles Charles, really trying to shift the business. And in order to shift the business, you have to grow and it was, he didn't want to do net interest income anymore. I wish he had, but he's trying to grow. He's got a lot of catch up to do. He's going to do it. He wants to catch up in investment banking. He wants to catch up in M&A and in trading. So he has to reposition the bank. I just think the banks fall because there's this, there's this overwhelming belief that the bank's always open positive and then they come down when the conference calls, when it just doesn't sound as bullish as they were hoping.