Cooler Than Expected Print, Paramount Update, Oracle’s AI-Fueled Boom 6/12/24

David Faber (0:00)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:05)

Good Wednesday 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. Futures do pop here as May CPI comes in with a goose egg on headline, a below estimates of the lowest monthly print in four years.

Core is also light, 10 year now at a two and a half month low, and the Fed, of course, is on deck. Our roadmap begins with that cooler than expected inflation print with the Fed's latest interest rate announcement and projections coming later today.

David Faber (0:31)

Plus shares of Paramount under a bit more pressure this morning after Sherry Redstone pulled the plug on that deal with Skydance.

And we have a big AI fueled boost for Oracle. Those shares are up rather sharply on Google and OpenAI cloud deal news.

Carl Quintanilla (0:48)

Let's begin with this market reaction to CPI ahead of the Fed's decision and presser this afternoon, Jim, and the internals on this, whether it's gas prices, core goods, insurance.

Jim Cramer (0:58)

Oh, my insurance finally broke.

The sale was paid a piece out last night saying that prop cash broke and auto breaks. And those are things that we all have to pay. You drive your car to work and gasoline is front and center and property cash, but also auto. Now, I thought the most interesting one was on page 17 All items less shelter, minus.2. So it's shelter sticky and everything else is coming down. This is one where, I mean, David, I got to tell you, if you're the fed, if you're Jay, press conference. Hey guys, I'll talk to you later.

Guys, good to see you.

David Faber (1:34)

Do you just say victory and that's it?

Jim Cramer (1:37)

Yeah, good to see you, chief. You just chief them.

I mean, then I don't even have to answer anything.

David Faber (1:41)

You give them that.

Jim Cramer (1:43)

This is the big win. I would call the game show off, frankly.

David Faber (1:47)

That's it.

Jim Cramer (1:47)

Yeah, just think enough. We won, see you later. Go do your thing.

Jay won't do that, but damn it, I know I can get him to do it. I'm gonna just work on that.

Carl Quintanilla (1:56)

The Journal did say yesterday, they're essentially, quote, taking the summer off.

Jim Cramer (1:59)

Yes.

Carl Quintanilla (2:00)

We're back to 70% odds on September. And I think some 50 basis points priced in for the year.

Jim Cramer (2:05)

Well, I still think he wants more than just one.

But boy, what went with him this time? I mean, you've got these great, great things that went down. Eggs, turkey, fish, bacon, ham, cheese, veggies, potatoes, canned fruit and veggies. That's fruit cup, David. You know the Del Monte with the big syrup that you and I had to eat when we were growing up?

David Faber (2:25)

It's even got some fruit in it.

Jim Cramer (2:26)

Fruit, a little bit of fruit. What else is there in life? There's gasoline, eggs. I mean, this is it.

So you don't go out. If you go out, it's still expensive.

David Faber (2:34)

Right.

Jim Cramer (2:36)

That's good. David, this is what you eat when you're a regular person.

David Faber (2:38)

Some people are still unhappy about it all.

No, in general, because prices obviously have risen so much in the last four or five years, and they can't seem to get past it. But to your point, that is a very positive signal.

Jim Cramer (2:50)

Right.

David Faber (2:52)

Although, I mean, we're just coming off Friday in that jobs number that was sky high.

Jim Cramer (2:55)

Well, that's why I say you need the summer off to see what shakes out. And these people who, like, September's on, I mean, what do they do for a living, these people who do that? Hey, I'm changing my vote. I mean, are they watching it in 831? They're like, someone's polling them? They should go, David, they should take the summer off.

Maybe, don't they have any kids who graduated or anything, so they don't have to work?

David Faber (3:19)

I don't know. I don't, I don't, as usual, I don't know.

Jim Cramer (3:22)

I looked to you for help, and what do you do?

David Faber (3:24)

I'm here to help you on certain things and others, but I got nothing.

Jim Cramer (3:27)

All right, you got, oh, you're like Jeff Probst. This is the number we're waiting for, Carl, because shelter is sticky, but everything else, I don't know what happened with food, but you know, what do we have in life? We have food that we make, we have gasoline, we have insurance, but that's what we have every day. We don't shelter ourselves every day.