Correction vs. Rally, McDonald's Beats, UAW-GM Tentative Deal 10/30/23

SPEAKER_1 (0:00)

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David Faber (0:31)

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

Carl Quintanilla (0:37)

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. Another green arrow Monday, future steady even with the 10 year above 49 Big week setting up with the Fed meeting, jobs Friday and lots of earnings in consumer, travel, tech and pharma. A roadmap begins with a big week ahead for investors, the Fed, jobs, Apple on tap, S&P is in correction territory but pointing to a bounce of the open.

David Faber (1:02)

Dow is getting a boost from McDonald shares that fast food giant is gaining in the pre-market after it did report what are strong third quarter results or at least appear to be. And Google star witness CEO Sundar Pichai is set to take the stand this morning to counter the government's allegations in what is a landmark trial, antitrust or a monopoly, so to speak, trial.

Carl Quintanilla (1:24)

Let's begin with the broader markets poised for a higher open. Jim, a lot of discussion over the weekend and this morning about sectors in which every stock, for example, is oversold below the 50 day.

Jim Cramer (1:35)

We're minus five on the odds that are I fall from this, which has been pretty accurate and the minus five produces a bounce.

I do think that we all seem to look at the S&P futures as if they're just kind of something really happening. I think they bounced back from Friday, but David, in the end, I mean, look, it's a stretch of bad again. So what are we like, happy days are here again, it's a stretch of doing what they typically do, which is go the wrong way.

David Faber (2:00)

Did you happen to, and I know they have necessarily always been right, read this JP Morgan note this morning, this long US equity strategy, because I know you take a look at these things. I mean, you're going to want to like, once you read this thing, you're not going to be in a good mood because they are so negative. But to your point, Jim, a lot of it's I mean, it's page after page of the impact of higher rates on everything.

I mean, US households and their mortgage related debt on credit card APRs on commercial real estate on excess household cash fading away on corporates on high.

Jim Cramer (2:33)

Well, isn't that why Nick Timmeris, who is the most important person other than Jay Pal, the Wall Street Journal writer, says, well, therefore the Fed might be done.

He's like the shadow board member.

Right. I mean, he's basically saying that JP Morgan is right, so therefore higher bond yields could end the Fed's historic rate rise. You need to see either the Treasury auction actually have real demand or you need to see that the Fed is done and then maybe cut someday. That's not what he's saying. In order to get out of this box, Carl, and the box is very surreal. And if you forecast badly the way on Semi did today, well, then you might as well just say, listen, invite me to your funeral.

Carl Quintanilla (3:16)

Although, I mean, we knew Texan last week, the guidance was no good today. We have XPO, we have SoFi, raising guidance.

Jim Cramer (3:24)

You know, SoFi, and I am very close to Anthony Nott, I admit that he was the banker for the street when we came public in 98, which was, you know, kind of pelly in tone.

God, 25 years ago. What year is that? I don't know.

David Faber (3:37)

It's a quarter century ago. I remember it well.

Jim Cramer (3:39)

Yeah, yeah, the ice age.

Sara Eisen (3:40)

The ice age.

Jim Cramer (3:41)

But I find that, look, there's no doubt about it. The banks themselves are just the blast zone. And when I look at them, I say to myself, what happened?

What happened, David, that the banks could be worse in price than during the mini bank crisis? What does it mean?

David Faber (4:01)

I don't have the answer. So I'm hoping that was a question of which you will answer.