December and the "New Market", Musk and Tesla Go Cybertruckin', Pfizer's Weight-Loss Drug Setback 12/1/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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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.

David Faber (0:38)

Good Friday morning. Welcome to Squawk on the Street.

He is Jim Cramer, and we are live from Post 9 at the New York Stock Exchange. Carl has the morning off. Let's give you a look at futures as we wrap up trading for this week. And of course, start a new month. And you can see perhaps on a bit of a lower note, particularly for the NASDAQ. Our roadmap does start with that big market surge we saw in November. Global stocks recorded the best month in three years. What is ahead, of course, as we begin December.

Plus, shares of Pfizer are falling rather sharply this morning. The company halted trials of an obesity drug. It's an oral obesity drug, but the side effects, a bit of a problem we'll discuss.

And Elon Musk says here he's back in the spotlight, but really is he ever out of the spotlight?

He's of course, hyping Tesla's new Cybertruck. Shares though down once again, at least in the pre-market. We'll talk a bit of Tesla. Let's start with the markets, though, as we kick off, of course, the month of December. Happy December 1st, my friend. I cannot believe another year is wrapping up. I know. But let's not dwell on that.

Jim Cramer (1:47)

No, don't. No, let's dwell on the Russell 1000 and people saying the Magnuson 7, done.

David Faber (1:53)

OK, let's dwell on that. Buy the Russell 1000 and get out of the Magnuson 7?

Jim Cramer (1:58)

I like the Russell 1000 here.

David Faber (1:59)

You do?

Jim Cramer (2:00)

Yes, very much.

David Faber (2:01)

Why?

Jim Cramer (2:01)

Because percentage gains are what we want.

And it's very hard to get a big percentage gain from any of the Mag 7 But you can find stocks like Affirm, DataDolls. These are what you want to be in.

David Faber (2:17)

So I'm curious, though. Is it your belief that the upside for the Magnificent 7, which of course powered the S&P, forget that, powered the S&P over the course of the last 11 months, is sort of going to lag a bit?

Jim Cramer (2:32)

Right now, yeah. And I think that there's going to be a broadening out, which I like, David. I like a broadening out. But it's going to be in these stocks that, frankly, are lower quality. Lower quality, all right? And I don't want to slam Ulta because they had a great quarter. But you know, when you can pick up 10%, just like that, that's what people want. They don't want incremental because their speculative juices are here.

Individuals coming back, they like what they see, they like what they use.

It's back to that right now.

David Faber (3:04)

Right now, you think it is back to that?

Jim Cramer (3:06)

Williams-Sonoma rings the bell.

David Faber (3:08)

Yes, here at the New York Stock Exchange.

Jim Cramer (3:10)

That's what people want, David. They go to the mall, the stores are crowded. They want to buy the stock.

You laugh, Olaplex. Mr. Olaplex, you laugh. I am finding the stocks that they want. You find the stocks they need.

David Faber (3:25)

I'm not in the business of finding any stocks at all.

Jim Cramer (3:28)

Oh, I was counting you for Paramount.

David Faber (3:30)

No, no, I'm just here to try to give some context and analysis and just be here for you, Jim.

But I am curious about this and how long this is going to hold. Because as we know, sometimes you change your mind a little. You think that this is going to be a theme, that this broadening out will continue for some time. And obviously, we saw November's gains, largely, many would say in part, because of the significant increase in bond prices, the sell-off, obviously, of yields that occurred, certainly during the last three weeks.

Jim Cramer (4:01)

But short squeezes too.

The smart money never caught up to what's happening. You know, David, a lot of people truly went with the hand that they've been given. And look, I'm not going to pick on Mike Wilson, where there are other people who have been negative. But when you can catch a Victoria's Secret, which had a very good Thanksgiving, PVH, three great days, actually PVH had a very good period, very good.