Bull Market Turns 2, Southwest Special Meeting, Nike’s New Era 10/14/24

Carl Quintanilla (0:00)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street. Good Monday 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. Coming off all time highs, the bull market enters its third year. Futures are mixed, bond market closed for the holiday. Big week ahead with earnings from Goldman, Morgan Stanley, Netflix, Procter. Our roadmap begins with investors celebrating two years of this bull market, following another record-setting week for the Dow and S&P.

David Faber (0:38)

Plus, we're keeping an eye on, here's the Southwest Airlines activist investor, Elliott, calling for a special meeting. We're going to go over that and give you all the details. Boeing is one of the biggest laggards on the S&P and the pre-market. It announced plans to cut about 10 percent of its global workforce. That was late Friday. Of course, this says the company's losses mount and that machine is strike, and there's the fifth week.

Carl Quintanilla (1:00)

Let's begin with the markets, though, celebrating this two-year bull run, goes back to October 12th of 2022 S&P is up more than 60 percent in that time period. Jim, record highs for the cap-weighted, the equal-weight, industrials, financials.

Jim Cramer (1:15)

Not supposed to happen, obviously. We've got a lot of worry. It doesn't seem to matter. We can place the new worry would be Mideast, and yet the oil is down. We had a lot of people who felt that the pal handled it badly, but what seems coming back, we have a remarkable semiconductor realm, and it is at the heart of this market. And I would tell you that one of the reasons why it's so great is the dynamism of American capitalism, David, is in semiconductors. It is the idea, not only are we the world.

David Faber (1:53)

It's in the design of semiconductors, not the fabrication of them.

Jim Cramer (1:56)

No, the design, because I don't like to see the Chinese doing a blockade. We didn't talk about this one. Chinese doing a blockade of Taiwan, a mock blockade.

David Faber (2:05)

It's always worth just mentioning, because people who don't pay close attention, Nvidia designs all those chips.

Jim Cramer (2:11)

We don't do anything here.

David Faber (2:12)

But they are all, all of the highest-end chips are manufactured by Taiwan Semi in Taiwan. Now that may change, as they open up plants, I believe, in Arizona.

Jim Cramer (2:21)

Yes.

David Faber (2:22)

But to your point, I don't want to divert here. Dynamism certainly in the design of chips.

Jim Cramer (2:26)

Right. And I think that, look, there's things that happen. You'll see Nvidia's up today. Well, what did Nvidia demonstrate? Ben Reich was on this morning, familiar. But I did a lot of work last week on what Nvidia did. They did a road show. They came to New York, went to Boston, went to Baltimore. Now, this is a CEO who, if you listen to Renee Haas' excellent podcast this week, she says, listen, I'm not an actor. I'm out there doing things. Now, what is he doing? I think the most important thing is that the new Blackwell chip is designed, Carl, for video. Now, video ingested is what you need if you're going to have a self-driving car. Now, there were a lot of people who didn't like what Tesla showed on Friday, but I've got to tell you, they have the technology for the self-driving car that doesn't need lidar. You don't have that thing spinning up in the top. You have, I know things were muted with the Nvidia. I don't know, I mean, with Tesla, but if they had talked more about it, Nvidia, I think you would realize they're ahead of Waymo. Waymo's got all three are Nvidia. You've got the brain in the car, you have the super brain, and you have a training brain. But if you have Nvidia and Tesla, what you have is a car that knows everything. So that's why I was disappointed in the way Musk presented Tesla.

I wasn't disappointed in Tesla.

Carl Quintanilla (3:54)

Of course, Tesla Share is trying to recover some of Friday's losses. We do have these reports that some of the robots serving drinks were operating with human assistance, not completely on their own. But you're right, as for Nvidia, Ben's at 165, and he takes pains today to say that this is not Cisco circa 2000

Jim Cramer (4:14)

I thought that was amazing, because it's literally in the first paragraph. Listen, it's not Cisco. The fact that he still has to keep saying it's not Cisco, that is a belief. This is what I'm talking about, David, in the dynamism versus 2000 You have companies that are dominant. Now you also have companies that are challenged. For instance, Waymo is Alphabet. Alphabet is challenged by the Justice Department, right? Yes, yes. But have you noticed the free-flowing nature, because of Nvidia chips, what's happening with Meta? I mean, Meta is Meta AI plus Reels, where you can give money to Zuckerberg and design your campaign. Then one of the great comeback stories is Amazon. Amazon has a so-called WeCore. Stock goes all the way down to 161 It is now well above. Amazon is the company that Jensen kept referencing to me as being a great friend, Jassy.