CAT Scratch Fever, Druckenmiller Slams Yellen, Markets Oversold? 10/31/23

SPEAKER_1 (0:00)

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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 Tuesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at post nine of the New York Stock Exchange. Bulls trying to build on Monday's bounce, but futures lost some gains on the back of several earnings disappointments. Two-day Fed meeting kicks off today on this final day of October. Happy Halloween. A roadmap begins with this final day of the month. Major averages on pace for three months losing streaks as the Fed does kick off that policy meeting.

David Faber (1:04)

Plus legendary investor Stanley Druckenmiller sounding off on Treasury Secretary Yellen for making, quote, the biggest blunder in the history of the Treasury.

And shares of Caterpillar are moving lower. The biggest laggard on the Dow, despite topping both profit and revenue estimates, we will dig through that quarter.

Carl Quintanilla (1:24)

Let's begin, though, with the markets on this final trading day of the month. Another one, Jim, where we're like, let's look forward to the next one.

Jim Cramer (1:31)

Yeah, look, I think that we have a market where, if there's something that's negative that you can be found, they'll find it. I mean, my chapter just says Caterpillar, we sold a lot higher. I'm trying to figure out when to buy lower.

I noticed when people sell it down 12, that's because they think someone's gonna sell it down 15 However, these are probably most likely not longs, because if you go through what Caterpillar is gonna say, it really is a fourth quarter story and a 2024 story. They're making it as a 2023 I mention this only because I find that if there is one single line in a report, Carl, that's negative, it's all that people care about.

And it's all because we're in a real bad bear market right now.

Carl Quintanilla (2:14)

In this case, is it about their warning about China?

Jim Cramer (2:17)

China is less than 5%, oil is 6%, copper is bigger than China. But they pull it. I mean, David, is it mentioned that China is less than 5%? No, the China headline is worth a lot.

I'm saying there's a real cynical moment going on here, whether it be hedge fund managers calling out Treasury secretaries for forgetting it wrong, whether it be the reporters. I mean, look, I read a story today about Nvidia losing $5 billion in sales to China. Well, how about the fact that that's going to flow back to America and make more than $5 billion? Why isn't that story written? The reason why that story's not written, that's a pretty positive story.

David Faber (2:54)

Right, that did occur to me reading that journal story about Nvidia, that it wasn't as though that demand won't be soaked up immediately.

Jim Cramer (3:01)

Well, how about if they-

David Faber (3:01)

It's just that it won't be, obviously, again, these higher-end chips that no longer can be sold in China, the immediacy of that ban impacting Nvidia, as the journal wrote. But to your point, they'll just bring it back here.

Jim Cramer (3:15)

They'll charge more.

They charge more, as soon as you buy one, then you make more money on it. They just introduced the chatbot function. They just said the chatbot function is very big. But I read the story, Carl, and I just say, Nvidia gets lucky. Government bans China.

Sara Eisen (3:31)

Good for PC makers.

Jim Cramer (3:33)

Good for data centers.

But they don't do that. You know why they don't do it?

SPEAKER_6 (3:38)

Because they don't know.

Jim Cramer (3:39)

Because they don't have sources. Because they want it to be negative. I mean, like I said there, and I said, God, it was amazing when the Eagles lost to the commanders, but that's OK.

Wait a second, they beat the commanders. That's why I read that stuff. I say, wow, they got that story. Did they take the next measure and say, where is that flowing back to? And the fact that it's negative for Intel and AMD, that's really, that's way beyond their camp. That's OK. What does it matter? David, what does it matter?