Boeing Slumps on 737 MAX-9 Grounding, Apple's Rotten Start to 2024, Rebound Week for "Magnificent 7"? 01/08/24

SPEAKER_1 (0:00)

Today's Money Mover, American investor and Hayman Capital CEO, Kyle Bass, on the markets and the Fed's next move. Plus, what's on his radar for China in 2024? Carl Quintanilla, Sarah Eisen, Money Movers. Today, 11 Eastern, CNBC.

Jim Cramer (0:15)

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 (0:22)

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla, host night of the New York Stock Exchange. Cramer's at the JP. Morgan Healthcare Conference in San Francisco. David Faber's back at HQ.

Dow futures are being pinched by Boeing and the grounding of those MAX-9s. Very busy week ahead. JP. Morgan Healthcare, CPI Thursday, Bank Earnings Friday, of course. A road map's gonna begin, though, with Boeing. Shares are tumbling after the FAA grounds dozens of 737 MAX-9s for urgent safety inspections.

David Faber (0:48)

Plus, futures are pointing to another lower open. Stock's already snapping a nine-week winning streak. And we're keeping nine shares of Apple, perhaps, set to bounce from what would be an eight-week low at the open, Carl.

Carl Quintanilla (1:01)

Guys, let's begin with Jim at the JP. Morgan Healthcare Conference. Jim, last week you said M&A would be a running theme in this conference, so we're already getting there.

Jim Cramer (1:10)

Yeah, we have J&J buying a company, Solid Tumor Cancer. We have Boston Scientific buying Axonics, 3.7 billion. Overactive Bladder and Continence.

Moderna, by the way, announcing a return to profitability, perhaps, in 2026 But, yes, this is where the deals are made, and this is the most, looks like, the most active conference in many years. And I think one of the reasons why is because we're post-COVID. And so, David, post-COVID means that we are able to do deals in person, and that certainly makes it easier.

David Faber (1:43)

And I'm post-COVID too, but I'm not allowed to be in person yet.

But I'm glad we're all back together, guys, at least virtually.

And Jim, interesting, of course, we always often do see a number of deal announcements prior to the big JP. Morgan Healthcare Conference. I'm glad you're there this year and looking forward to your coverage of it as well. And no surprise this morning, perhaps, that we did see a couple of these. Again, steals that are similar in size and scope to what we've seen previously over the last few years, namely, big pharma buying companies that are relatively small at high premiums that have just finished usually phase two trials of a promising treatment. For example, in the case you mentioned of J&J and that company Ambrix, where they're buying these targeting antibody drug conjugates that they have that conceivably will allow for the new therapies to be much more effective in attacking things like advanced prostate cancer.

Jim Cramer (2:44)

Exactly. And one of the reasons why I find myself out here, and Carl, we watch the tape, we see AMD up today, we see Nvidia up, we see the usual characters up.

I think these companies are radically undervalued versus the hardware companies that suddenly we love.

And radically undervalued versus these, what we think are AI companies, you're using a lot of AI out here. And Carl, it is incredible that life-saving companies are taking a back seat to companies that enable you to plagiarize, that kind of thing. So I really think that we have to start focusing on healthcare as an undervalued cohort. I can't wait. All the companies that are here are doing things like GLP-1. They're doing things that really are changing people's lives. A lot of it's related to government. And I think we have to start realizing this group got radically undervalued versus tech. And I tell you, the differential has to be changed.

Carl Quintanilla (3:34)

Jim, you mentioned Moderna, in addition to all the M&A threads. Product sales, modest beat for last year, but trying to get back to sales growth and maybe break even in 26?

Jim Cramer (3:46)

Yeah, look, I think Moderna is still in that, the hangover of COVID.

A lot of the companies out here are hangover. I'm speaking to Pfizer, Dr. Borla. There's trolls trying to figure out how much COVID there is. David, a lot of these companies are reliant on vaccines. And there's definitely a lot of scientific evidence that says if you take the booster, you're going to stay out of the hospital. But only 19% of the people have taken the booster, David, because there's a tremendous, really kind of vaccine ennui. And it doesn't even think that Travis Kelsey, Kansas City, is changing that.

David Faber (4:24)

No, I actually, I took the booster and I got COVID, but it wasn't that severe, thankfully. You didn't get it.