CPI/Inflation Watch, Albertsons Terminates Kroger Merger, GE Vernova and Southwest CEOs 12/11/24

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David Faber (1:01)

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

Carl Quintanilla (1:07)

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. Pre-market breathing, a bit of a sigh of relief as November CPI comes in, in line across the board, although it's the fourth consecutive month, up three tenths on core. We'll talk about some internals. Two-year pretty steady at 412 Roadmap begins with inflation. Watch the path to bringing down price pressures. Appears to be stalling a bit. What that could mean for another Fed rate cut next week.

David Faber (1:33)

Plus the deal is dead. Albertsons terminates its merger agreement with Kroger. Also file suit against Kroger for breach of contract. We're gonna have those interesting details. And this hour we are joined by the CEOs of GE Vernova and Southwest Airlines. Both will be right here at Post 9

Carl Quintanilla (1:52)

Let's get to some market reaction on CPI this morning ahead of next week's Fed decision, Jim. Wow, there's some growing controversy about whether or not we've stalled out at least on core goods disinflation.

Jim Cramer (2:03)

This darn shelter is just going the wrong way. And I saw a piece this morning Barclays downgrading the home builders. I mean, there's just no one's putting up the amount that we need nowhere near in shelter. And of course, that's rental. It's not home price because that was taken out of CPI.

Also, cars. I mean, we've got insiders all over the place, but we do not have any decline in used. And then going out to dinner. I mean, I come back and say, David, you still have to change your lifestyle. You still have to say, listen, I'm not going to go out. I can't buy a used car. I can't get any break on my rent. If you're a pal, you say, all right, so far it's not really. We did what we can so far. Let's see if we can't lean on it more. But the higher you put the mortgage rates, the fewer.

David Faber (2:49)

When you pointed out housing, as you always say, punches above its weight. You talked about Toll Brothers yesterday.

Jim Cramer (2:56)

That downgrade.

David Faber (2:56)

And the mortgage rates just not where they need to be there.

Carl Quintanilla (2:59)

Although we got the biggest jump in refis this week, Jim, since September of last year.

Jim Cramer (3:06)

Well, look, there's just a lot of irrational behavior when it comes to rent. And it's almost like we don't know what to do. We find ourselves paying more for things that really make us feel not great. We go out, it costs a lot of money. We travel, it costs a lot of money. But we're addicted to travel and we'll talk to Southwest Air. There's some variation in the grocery. Grocery is not a horrendous place. But it says, listen, you know, I've been saying this to the fed, not the daily. You got to go to Walmart and you got to go to Costco. You got to fly cheaply. You got to go to Bookings, find the cheap, best place, best fare.

You got to go to Carvana. You got to get the best used car prices. And I don't know where to go for housing. What are you going to move? You want to go to Salt Lake City? I don't know.