Cramer's 2nd Half Playbook. China Slowdown Worries, Meta-Twitter Showdown Looms 7/5/23

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Jim Cramer (0:31)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:38)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post Night of the New York Stock Exchange. David Faber has the morning off. First full trading session of the second half, and futures are weak on some disappointing PMIs around the world, including China. A lot of data this week, and we will get FOMC minutes this afternoon. Aromat begins with a global macro, soft China data reviving some growth concerns. Futures are slipping. Investors are waiting some tea leaves from the Fed minutes. Plus, trouble for Twitter. Meta's Facebook prepping arrival app. Launch as soon as tomorrow.

And Goldman upgrading Netflix as the streaming giant regains some momentum in content creation.

Let's begin with the markets. What a treat it is to have you back, Jim, because this second half playbook is important.

Jim Cramer (1:24)

Well, thank you, and it's great to be back. I was able to go on vacation with my daughters in Iceland. I had a lot of time to think about the market. And what I realized is that this whole nonsense of that it was only just, well, there you go, one of my happiest moments. I summited it ahead of everybody else there.

This whole concept of what went up, I mean, give me a, it was a 50-pound stone that I couldn't lift. It tells you how strong you are.

Carl Quintanilla (1:50)

This looks like serious reflection time is what it seems.

Jim Cramer (1:53)

I mean, like you come back, ooh, the other was like looking for shipwrecks. These are some good ones.

And I came back and I thought one thing, which is that who the heck cares what went up? Stocks went up.

And that if you were just possessed by the Fed, you were a gas bag and you just simply could not make any money. If you were possessed by how China was coming back, you missed everything. If you thought about AI and if you thought about US dominance and what is dominating, you made it kill it. And I think we have to get away from those who don't look at stocks and don't look at AI. I mean, for instance, a ChatGPT, it took over in November and was a major reason why we had an incredible number of calls that went up.

And if we got to get more realistic about what's happening in the economy, which is that the inverted yield curve was possessed by people who turned out to be ill advised and of no value. Yes. And you know, you say that and they keep saying, well, then don't worry, we will be correct. But you know what? They lost. The game over. Game ended.

Carl Quintanilla (3:02)

Does the game end?

Jim Cramer (3:03)

Game ended. I mean, you either made money in the first half or you went home. I mean, you know, it was like a doubleheader and they were shut out twice, the first quarter, the second quarter, but they refused to admit it.

And their arrogance in refusing to admit it is surprising and suboptimal.

Carl Quintanilla (3:20)

You sound kind of like Renaissance Macro this morning, whose general take is the Bears are going to capitulate even if it's little by little. And those rising forecasts are going to create a bed for the second half.

Jim Cramer (3:31)

I don't think they can capitulate. They're so intellectually dishonest to begin with. They think they won.

They say, well, look, you know, the rally was concentrated in a few stocks. Well, these are trillion-dollar stocks. And so what? Their arrogance and insistence that they are going to be right. Well, you know what? That reminds me very much of 1987 There was a stock market crash and all the analysts got negative. And they kept saying, listen, we're going to be right. We're going to revisit 1400

And they were wrong. Now, the good news is they all got fired in the end and they went into other businesses. You know, I remember a lot of these guys. They came out and they were pumper loaf.

Pumper loaf.

Carl Quintanilla (4:10)

So, well, how do you how can you be so intransigent if the clients are obviously disappointed? Right. I mean, they're going to don't they turn on bears who've been wrong?