Cramer's 2025 Market Message, Pres. Biden Blocks U.S. Steel Deal, Tesla Rebounds 1/3/25

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

Sara Eisen (0:16)

Good Friday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Jim Cramer. At Post 9 of the New York Stock Exchange, Carl and David have the morning off. Taking a look at futures. We've had a losing streak. End of the year, beginning of the year. Let's see if it changes today. Dow futures up 122, S&P futures up 16, Nasdaq futures up 67 We started higher yesterday, faded all the way into the close. We'll see if it holds today. Our roadmap begins with stocks searching for direction after that December pullback. Why one strategist is warning this morning of a correction ahead. Plus shares of US. Steel falling as President Biden does block the $14 billion sale of the company to Japan's Nippon Steel on national security grounds.

And a cancer warning, shares of spirit makers under pressure, the US. Surgeon General calling for new labels, warning of significant health risks. We're going to hit it all but begin with the markets as stock looks to reverse their recent slide, Jim, which I know is a disappointing way to start the new year. We've now fallen for five straight sessions for the S&P and the Nasdaq, longest losing streak since April.

Jim Cramer (1:20)

Look, I think that in many ways people expect the things to be great. And then those last week, after we've been down, the market was oversold, it was a little surprising. So I kept hearing, well, maybe one or two large funds were taking profits. That's clearly not the case. Something bigger going on. And what I think is bigger going on is that when I look at the kind of things that you're seeing from a beautiful Bank of America piece this morning, about how strong the market has been, momentum growth and mega caps, people like to take profits on those. And I don't blame them.

I think that if you don't take profits after you're up huge, you're being too greedy. So I think there's some very common sense cool reasons.

Sara Eisen (2:00)

So you don't think it's anything fundamentally that's changed that would make you question the strength of the market?

Jim Cramer (2:06)

Well, look, I mean, as we get closer to the inauguration, I think there are people who are skittish, but no, I don't think so. I think things are pretty good.

Sara Eisen (2:15)

I saw your reasons for optimism. You gave 10 last night on that money.

Jim Cramer (2:19)

I mean, look, I think that all we ever hear is the reasons. I find there are many people come on air, and they have multiple reasons why we should not do well, including this, we've been up for two years, so therefore we can't be up for two years. None of these things really play a role because we've never had anything like the Magnificent Seven before. We never had stocks that are like one third of the market. We also had very few groups that were actually bad. It's kind of a halcyon time because I think we don't have enough equi... I think at another time, when we used to have much more bullish media commentary, really post 2000, people are afraid. But before that, I think we would have seen the dearth of equities. There's just not enough stock. And I think that the market is driven by supply and demand, as you know, and we don't have a lot of supply. We've got pretty good demand.

Sara Eisen (3:09)

Especially if we get more M&A, to your point yesterday. That would be a lot of excitement for us.

Jim Cramer (3:13)

Look, it's hard to kind of figure out exactly how much of the rally in Mag-7 was just S&P money coming in. Because we don't think of it as that. We think of these stocks as somehow separate. They're not. I do think that if we have M&A and we don't have a lot of big deals, then what happens? Well, then we're really going to be short equity. But it's such a bullish thesis. People are afraid to give it.

Sara Eisen (3:37)

All right, I'm not going to go first.

Jim Cramer (3:38)

If somebody couches, it's like, look, it could be good, but you know what?

SPEAKER_1 (3:40)

It could be bad.

Jim Cramer (3:41)

That's worthless.

Sara Eisen (3:42)

Because the market always has to climb the wall.

Jim Cramer (3:44)

Joe Burroughs may not be in the playoff. Well, it's good. It could be good. I mean, I don't want to do that.