Earnings Parade: Market Reaction to Mag 7 Results, Caterpillar and Lilly Surge 4/30/26

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Carl Quintanilla (0:58)

Market moving insight and analysis. Join Jim Cramer, David Faber, and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street.

Good Thursday 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. Future surge on several blowout earnings from Alphabet, Caterpillar, Lilly as the S&P closes out the month of April, best month since November 2020 Q1 GDP meantime up 2 percent thanks to this AI capex boom. Oil has been all over the map, a $13 swing for Brent overnight, as reports suggest the president may be briefed on plans to potentially resume some military strikes on Iran. Roadmap begins with that deluge of big tech earnings in the AI boom, Alphabet, Amazon, Meta, Microsoft, all showing no signs that capex spending will slow anytime soon.

David Faber (1:46)

Plus, there is a slew of other earnings crossing the tape. We're going to get to them as well this morning. They include Caterpillar, Eli Lilly, Merck, Qualcomm to name just a few, and we're keeping a close eye on oil prices. They hit a new wartime high. The national gas price average, by the way, also hit $4.30. The standoff in Iran shows no sign of slowing down.

Carl Quintanilla (2:09)

Let's begin with the markets on track for a higher open. As you can see, after the release of those Mag 7 earnings late yesterday, Jim, you kind of ranked them last night in order of preference.

Jim Cramer (2:17)

First of all, can I just say they were, two of them were unbelievable, and maybe two of the best reports I've ever seen. People are going to say Cap was great today, but the Google Call, or Alphabet, was an extraordinary call, and I think with the stock at 370, it's going to go right to 400 It's headed to 400 It's galloping, it is Secretariat, it's going to win by, I don't know how many legs. Then next is Amazon, which was really amazing with a bunch of new stools. We have food as a stool, we have semiconductor stool. Then Microsoft, it was okay.

It's not clear after maybe they spend a little more on CapEx, maybe they're not. Their cloud Azure is growing at 39, not 36, but they did a lot of stuff that made me confused. They had a lot of SaaS too. Then Meta, I don't know.

Meta's got some thinking to do.

Obviously, they did have great growth in their regular business, but they just announced a bond. David, they just announced a bond, 25 billion, a bond. But they're like the treasury, you know? They have to finance every quarter.

David Faber (3:28)

Well, CapEx Guidance went to a higher range, 125 to 145 billion, it had been 115 to 135 So they raised the range by $10 billion higher. This is after, obviously, just continued raising of CapEx Guidance by all of these companies over the let's call it the last six months or so. Yeah, but they don't have a cloud, David. They don't have, right, when you look at Alphabet, you've got the model, you got Gemini, right? You got the large line, you got the chips, the TPUs, you got the cloud, you got it all.

Jim Cramer (3:57)

You get the whole thing. It does, it does have it all.

David Faber (3:59)

And that does seem to be attracting a lot of excitement in terms of what they can do.

Jim Cramer (4:04)

That's why 374 is ridiculous. That's just a way station on the way to 400

David Faber (4:08)

Whereas with Meta, there is that continued question. They don't have the cloud, do they really have the model? And they don't have, and they're making suggest, but they don't obviously, they don't, Amazon's got training and we'll talk about that because that is doing over 20 billion now.