Dow and Nasdaq Seek "9" Lives, December's High-Fliers, End of An Era for eBay 12/19/23

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Jim Cramer (0:30)

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 (0:37)

Good Tuesday 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. Dow, Nasdaq, Gunning for 9 straight gains.

Even as some Fed officials push back on the notion of multiple rate cuts next year, housing starts six-month high today, FedEx earnings tonight. Our roadmap begins with Records Watch. S&P sets open about a percent below its record close. And as we said, the Dow and the Nasdaq riding some eight-day wins.

David Faber (1:01)

Plus, we're keeping an eye on those Red Sea risks, given the increasing attacks on commercial ships, which are upending a vital global target.

And how about that corporate cyber challenge? We're not talking about a race here. We're talking about companies such as VF Corp and even Comcast Xfinity, for example, saying they have seen significant hacking that is disrupting parts of business, certainly in the case of VF.

Carl Quintanilla (1:27)

Let's begin with the markets this morning. A lot of push and pull here, Jim.

The Fed pivot, of course, has filled the tank, but that over positioning now, the idea that maybe we are severely overbought?

Jim Cramer (1:39)

Well, at least on the S&P oscillator I follow, it's still been plus five for ages. We are in that position where that's a very bullish thing, which is that we can't seem to give up the ghost. That said, when I looked at a lot of the charts that people call in on for mad money, almost every single one was at a high, and I was quite reluctant. I mean, David, when you have, you know, para block move over and over and over, for companies that are just okay, it makes you concerned that what's gonna take them further?

Animal spirits, a revaluation based on multiple expansion? We don't like that.

David Faber (2:21)

I guess we don't, but do you feel like it's moved into the realm of bubble territory in any way? I mean, it's not reminiscent yet of what we saw in 21, right?

Jim Cramer (2:30)

No, not at all. The companies that are going up are good companies.

Tend to be Russell companies that have been left behind.

David Faber (2:38)

But you're questioning what, the valuation at this point, given the growth rate?

Jim Cramer (2:42)

Yeah, I'm just questioning.

No, let me be more specific. When I see it, I say, maybe you ought to wait till 5% to 8% pullback, because it seems unsustainable to me. And that logic, Carl, is not welcome among the people who own these stocks.

Carl Quintanilla (3:04)

Well, maybe they're pointing to the almost $6 trillion in money markets.

Jim Cramer (3:10)

Right.

Carl Quintanilla (3:10)

And this idea that households are not going to sit back and watch stocks rally without making, FOMO is going to take place.

Jim Cramer (3:19)

Yes, and when you look at the companies that are being bought, I mean, they're all good companies. And they've all been left behind. But what I worry about is, let's say you come in in 2024, and David, you haven't taken profits because you didn't want to pay taxes. Well, as soon as we get to 2024, maybe that's when these people will say, okay, look, I know there's FOMO, but I also would like to take something off the table. I mean, it's not all craziness.

I think there are people who say, I have a good win, I'm going to take something.

David Faber (3:58)

And it is not as though there are not still risks out there that would potentially result in stock prices going down, even though it feels like it's been a little while since we saw that.

Jim Cramer (4:08)

We have a very big issuance of 10-year paper in the first quarter.

David Faber (4:11)

We do.

Jim Cramer (4:12)

We all seem to think that the only thing that matters is the Fed. And then we get gobsmacked by a lot of treasuries that I don't know where we're going to put them.

David Faber (4:21)

Don't forget, there's still geopolitical risk. Certainly hurricane downgraded to tropical storm, Jamie Dimon would tell you about that.