Bulls Rule In November, Salesforce Surges, Musk's X-pletive 11/30/23

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Carl Quintanilla (0:31)

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 Thursday 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, final trading day of November. Still on pace for the best month since the summer of last year, and more encouraging inflation prints today from the Eurozone and the US. October PCE, a new cycle low. Our roadmap begins with the Fed's Preferred Inflation Measure, core PCE moderating in October from the previous month's year on year increase.

David Faber (1:03)

Also had Salesforce handle a topping the list of pre-market gainers on the S&P. The company raised operating margin guidance and it did post an earnings beat.

Plus Elon Musk delivers a blunt message to advertisers that are currently not advertising or perhaps boycotting his ex-platform. We're gonna look at the eye-opening comments that he made yesterday at that Dealbook Summit.

Carl Quintanilla (1:26)

Let's begin though with the markets on this final trading day of November as investors digest this latest batch of inflation data. Jim, Core PCE, 2 tenths, actually.16.

Rounded up to 2 tenths is in line.

Jim Cramer (1:38)

Yeah, I mean, I was surprised. The bonds early on this morning were trading pretty much exactly where they are now. And that tells me that this was in line. In line, I think in this environment is actually very positive.

And then in the last like 20 minutes, when interest rates actually went up on this, and I'm thinking that, David, I don't know how you feel about this, but we have had an incredible rally of bonds, incredible. This is actually like, if you just viewed it like a stock, it's profit-taking.

Because it's been an extraordinary run, and it has been a blowout run. And so I think this is just the profit-taking on a number that everybody thinks is pretty important.

David Faber (2:19)

Makes sense to me. I mean, again, there it is, you know, and that's not even quite the high at four or eight, right? Gotta go back a little bit further than that, I think, Carl, but basically it indicates how prices have changed dramatically over that time period.

Carl Quintanilla (2:31)

Yeah, we got to four, two, four, seven this morning on the 10-year. It's the best month for bonds since 85

Jim Cramer (2:36)

Right. There you go. Since 1985 Okay, when you think about that, if you go back in time to 1985, what you're looking at is a period, a halcyon period of bonds and if you go back to the rhetoric of one month ago during a series of people who spoke, we were about to have, David, a repeat of what would happen in the late 90s where every auction determined the direction of the stock market.

In 85, the bonds were something that you thought about periodically because what was happening was this rates just continued to go down from the 14% period and you looked brilliant as interest rates just kept going down, down, down, down, down.

David Faber (3:23)

I wasn't thinking about the bonds at all in 85 I'm pretty confident of that.

Jim Cramer (3:26)

What would happen is-

David Faber (3:27)

Had a few things on my mind, maybe one or two.

Carl Quintanilla (3:29)

Madonna, I don't know, back to the future.

David Faber (3:32)

Yeah, maybe both of those.

Jim Cramer (3:35)

I was not, I was thinking about the bonds.

Carl Quintanilla (3:36)

You were thinking about the bonds.

David Faber (3:37)

I know, you were thinking about the bonds back in 85

Jim Cramer (3:40)

I sold a piece of paper, 14% treasury to someone in, it was actually the biggest sale that year.

And what was extraordinary was that I never had another trade again because there was no reason to. It was 30-year paper and it was 14%.

David Faber (3:58)

They were like, thank you so much, and they are good for 30 years.

Jim Cramer (4:01)

Right, I would call people out, I would really like General Mills stock. You see the piece of paper we bought, never to be touched again.

David Faber (4:09)

And that said, Jim, you did mention sort of back to the supply-demand concerns that did occupy a lot of our conversation. It's not as though they've gone away. Budget deficits are still very large. They're still going to need to be met by significant issuance.