Blowout Sept. Jobs Report, Oil Mega Deal, More Tesla Vehicle Price Cuts 10/6/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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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 (0:39)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at the New York Stock Exchange. September payrolls, a blistering 336,000, more than double the estimates, but wage growth up only two-tenths is the smallest gain in more than a year. That's keeping the 10-year yield at least from taking out the highs earlier in the week.

Right now, 478 Our roadmap is going to begin with that blowout jobs number, sending stocks sinking, yields spiking a bit.

David Faber (1:04)

Plus, we may have a mega deal in the oil patch. Exxon is reportedly close to buying Shale Giant Pioneer Natural Resources. Is it the time to buy tech? Cities upgrading the global tech sector, suggesting a recent pullback might be a good opportunity. We'll talk through that as well.

Carl Quintanilla (1:23)

Let's dive into the jobs numbers. We said 336, we were looking for somewhere in the 150 range. Jim, hospitality up 96, government up 73

Jim Cramer (1:32)

We can't stop this thing. Hospitality is very interesting because a lot of people feel that the travel in the Asia bull market ended two months ago.

And yet, it's just the analysts because without exception, whether it be cruise, whether it be hotel, whether it be restaurant, the numbers are great.

And everyone's just predicting, well, that can't last, it can't stay this way, and it's always the same. It's not the same strategy, it's student loan, it's consumer strap. It hasn't happened yet. So what you're seeing are numbers which are still indicative of what the companies are saying, not what the analysts say the companies would say. And, you know, David, no gibberish here. This economy is so hard to kill.

David Faber (2:07)

It really is. You know, do you sell a strong economy is kind of the question.

Jim Cramer (2:13)

Not that there's no wage gap.

David Faber (2:14)

I mean, we see what the impact obviously is, and we've got to keep a close eye as we have for now weeks on on long term yields, which are skyrocketing and whether something may, as we like to say, break the financial markets in some way that we're unaware of. But at the same time, me and the economy is really strong.

Jim Cramer (2:32)

I remember talking with someone, the CEO the other day, and I just said, if you knew that you would have really good growth without a lot of wage growth, that's called what you're supposed to be looking for. And so I don't want to look, obviously, when rates are where they are, the algos take over and the algos don't sit there and think, well, isn't this a nice economy?

But the fact is, is that we've always hoped for this. So now we hate it. It's an odd thing.

David Faber (2:55)

I mean, yeah, one market participant said that's a tough narrative to get bearish on.

Jim Cramer (3:01)

Right.

David Faber (3:01)

In the way. Now we're seeing the reaction in stocks.

Jim Cramer (3:03)

The algorithms say to get negative. Right.

David Faber (3:05)

They do. Because yields are moving higher.

Jim Cramer (3:07)

Right. I mean, there's no...

David Faber (3:08)

And the chance of another rate hike seems to be higher now as well. And not to mention what the bond market's already done for us in terms of rate hikes over the last few weeks, really. I mean, that's been tightening of its own.

Jim Cramer (3:19)

Exactly. Now, I think that there was a guest this morning in my life very much who said, listen, I've never really heard of a soft landing. It's always been hard. And he's been at it as long as I have. And I've seen a lot of soft landings.

A soft landing is when you have still decent job growth, but there's no wage wealth.

And it just kind of tapers off and it works. And that's what I think can happen. But a day like today, I look at where the bonds are, and I just said, well, you know, the S&P futures have correlated the bonds. NASDAQ is even more correlated. So NASDAQ opens down a point and a quarter. And I'm not going to sit here and say, well, that's wrong, because it's going to open down a point and a quarter. And who am I to say, well, that's just ridiculous? Because it doesn't matter whether I think it's ridiculous. The machines say it's not.