Biggest Earnings Week, Sec. Bessent: "It's Up to China," Senate Dems vs. Musk 4/28/25

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David Faber (1:00)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street. Good Monday morning. Welcome to Squawk on the Street. I'm David Faber right here at Post 9 of the New York Stock Exchange. Jim Cramer, he's not next to me. He's at 30 Rock in Midtown. He's kicking off a big week in celebration of Mad Money's 20th anniversary. And they said it could never happen. Look at that. Carl has the morning off. Let's give you a look at futures, of course, as we get ready to begin trading for another potentially tumultuous week. We'll see. As you can see, we are looking to kind of change a little bit in the last hour, even looking for a slightly, perhaps higher open. Our roadmap does begin with what is going to be the big week ahead for investors. One third of the S&P is set to report, including four of the biggest companies out there. Plus, Treasury Secretary Bessent says it is up to China to de-escalate trade tensions.

And China's chip maker, Huawei, also make phones, of course, reportedly set to test a new AI chip. And it is a potential challenge to NVIDIA. I'm sure that Jim and I will discuss that a bit. But let's start with that busy week ahead for the markets, especially, of course, on the earnings front. Jim, later in the week, we do get Microsoft and Apple, Meta and Amazon, not to mention, by the way, a lot of other companies that also are perhaps even more reflective of the broader economy.

Jim Cramer (2:25)

Yeah, we've got a Caterpillar, we've got a GM, we've got a Lillian. But you know what, David, this Mag 7 hangover is really starting to get people down. And I think that's a mistake. These are very good companies that are finally coming in not hot. There are not great expectations for any of them. The expectations are highest for these companies that would be like a Procter & Gamble that we had last week. Those were the ones that disappointed because we figured, well, they're all weather companies.

And David, the bad weather hasn't started yet, frankly.

David Faber (2:55)

Yeah.

Jim Cramer (2:56)

All right.

David Faber (2:56)

What do you mean when you say the bad weather? What are you talking about?

Jim Cramer (2:59)

Well, I think that when you see empty shelves, if that is true, at some of the big boxes, we will then start thinking, I've got to go buy, I've got to go hoard. Wrong instinct. There are a lot of empty shelves that don't really matter. When you see Temu and Shien raise prices dramatically, you begin to get worried that perhaps your salary is not going up, but things that you buy will go up.

And it's undeniable. I think that those who think nothing will change should just listen to last week's calls where companies are trying to mitigate as best as they can, but no company has said point blank, you know what, we're not going to have to raise prices, because they are.

David Faber (3:35)

Right, they are. And of course, you've made the point in many ways, 145% to the extent it still exists on many products from China, obviously there have been exemptions, is more of an embargo than it is really a tariff, because it's hard to imagine buying things at that level, or at least with potentially that increase in the price, even though it's a smaller percentage of the overall price, Jim. So what happens, though? Do people just consume less as opposed to pay more?

Jim Cramer (4:04)