BlackRock CEO Larry Fink "First on CNBC," Big Bank Earnings, Tesla Slumps on Robotaxi Event 10/11/24

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 with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures are a bit soft as financials kick off their earnings season with some outperformance. Watching reaction to Tesla's CyberCab headline PPI comes in light, matches the lowest print of the year. Our roadmap begins with the big banks, JPM, Wells and BlackRock crossing the tape. Jamie Dimon says the economy is resilient, but warrants on some geopolitical risks.

David Faber (0:31)

BlackRock CEO Larry Fink is going to join us this hour. Plus Tesla shares are, there he is, Tesla shares are under pressure. Why? Well, Elon Musk's razzle dazzle robo taxi unveil seems to have failed to impress investors. And the bull run turns two years old tomorrow. The S&P is up 61% since that bear market low in October of 2022

Carl Quintanilla (0:55)

Carl, let's begin with the reaction to these quarterly results from the big bank. Maybe the biggest surprise is this NII gain at JPM.

Jim Cramer (1:03)

Yeah, that's terrific. By the way, we can talk about Wells Fargo and I next quarter is what matters. That's why Wells is one of the reasons why Wells is looking up. I want to take the other side of the futures trade today. This is a big day. We had PPI was good. We have the futures looking a little soft interest rates are obviously not cooperating yet. But so many times we've been in this situation, Carl, where we've had good banks, good numbers and then people start selling them off as the day goes on. I say if we have that again, just buy them because I am very impressed. BlackRock, not really a bank, but we'll talk about in some ways it is. jpmorgan is very, very good. Wells Fargo, nice upside surprise when it comes to wealth management and investment banking. David, they are becoming an investment bank in a way that I didn't think it could do so fast Charlie Sharp.

With people like Doug, Doug Bronstein.

David Faber (1:52)

Yeah, Doug Bronstein, the vice-chairman over there, obviously a long time senior manager at jpmorgan, before heading out briefly, not briefly, for some period of time on his own, running an activist hedge fund for some period of time of that. But you're right. Wells, generally, very positive or more or less positive response. And in fact, I mean, I'm looking at just the general characterization from the analysts who follow many of the banks saying, not seeing really any high level, hard to really say anything's negative on the broader economy by looking at these results this morning as well, Jim.

Jim Cramer (2:26)

Yes, and I also want to point out that there's technology everywhere. Headcount under Charlie Sharp, it's down, it's going now, 270,000 to 220,000. David, there's a lot of these banks, Jamie does this too, Jimmy Diamond, a lot of these banks are making a lot of money in a less risky way than they used to. And I think it's really important to point out because at this point in the economy, normally with the Fed tightening, you would expect that we see big credit problems. Nothing, really nothing.

David Faber (2:54)

And Carl, the focus certainly on net interest income, whether it's at Wells or certainly at jpmorgan, especially at JPM. As they head into the new year, there does seem to be an expectation that number will come down. We're still waiting on the call.

Jim Cramer (3:08)

But JPM, Wells Fargo is no. Wells Fargo is bottom in inflation.

David Faber (3:13)

Correct.

Jim Cramer (3:13)

That's why everyone's excited about it. You look like it's a bad quarter. It's not. It's a very good quarter.

Carl Quintanilla (3:17)

Provisions at JPM were in line, about 3 billion. Some of the qualitative commentary out of that call that the earnings do reflect either a soft landing or no landing, in their words.

Jim Cramer (3:28)

Right, and again, that's why I said I want to take the other side, because these quarters are incredibly constructive, but the banks ran into the quarters and I want to say, listen, cut out the noise. If you want to look at something like what, at the opening bell today in the NASDAQ, you'll see Jensen Wong. And you'll probably have sold NVIDIA a hundred times if you just looked at the PPI and you looked at Texas Instruments, then you look at the CPI. I'm urging people to stand back on a lot of these stocks, and certainly on NVIDIA, where you should own it, and David, do not trade.