Exclusive: Starbucks CEO on Quarterly Miss, Amazon and the Earnings Parade, Market Playbook for May 05/01/24

Carl Quintanilla (0:00)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla, on the opening bell hour of CNBC's Squawk on the Street.

Good Wednesday 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. We kick off May with Futures Red, Fed Day, and some high profile earnings misses or guide downs. Starbucks, CVS, Skyworks, Marriott. Yields are a bit lower as this Treasury refunding announcement was in line. Our roadmap begins with the Monster Day for earnings movers, Pfizer, Kraft, Depant, just a few of the other names crossing the tape.

David Faber (0:40)

Plus Amazon shares. They are up ahead of the open. Cloud sales growth accelerates. The company also aims for spending more on what else? AI. Yeah.

Shares of Starbucks are under pressure.

They're down after a decline in same store sales. It also slashed its forecast. We're going to be joined exclusively by Starbucks CEO. That's just a few minutes from now.

Carl Quintanilla (1:01)

Let's begin this new month for markets after ending a rough April with that sell off. Jim, worst day since January 31st, worst month since 23 September.

Jim Cramer (1:10)

Yeah. Look, some of it was because there's a belief that, really, this happened in the last few hours yesterday that if the Fed chief has asked the question, do you think that the next move should be increase in rates or decrease in rates, it puts him in a horrible bind.

What is he going to say? Now, this was literally the narrative I heard yesterday as interest rates ticked up.

And David, you know that people are going to try to trap the chairman, but he's not easily trapped.

David Faber (1:42)

No, he's not, although you're not necessarily in favor of the press conferences as I recall.

Jim Cramer (1:46)

No, because these people are teenagers. I mean, I've run press conferences and I've been in press conferences and I am not impressed with this Hollywood Squares group that they put together.

David Faber (1:57)

That said, we are going to hear from him. He's not easily trapped, as you say. We can keep an eye on the bonds, of course. Not really that much movement at this point.

I expect, of course, that generally Carl will not be much said that he didn't say what was in his last comments a week or two ago.

Carl Quintanilla (2:17)

I think it was Julian Emanuel of Evercore yesterday, Jim, on the tape, said exactly what you said, that that is the key to the markets in the near term, is what is his threshold for a hike?

Jim Cramer (2:28)

Right. And this is this narrative that I actually can't stand. We were two for three in terms of the brown shoots yesterday. Consumer confidence was very bad, but Chicago PMI was very bad. Instead, we had this index of suddenly people say that's the be all and end all, which is this wage index. And I just found that to be fatuous reasoning. There was so much fatuous and negative reasoning yesterday that, David, I found myself thinking, how many people want this market down already?

David Faber (2:52)

I don't know how many people, Jim.

Jim Cramer (2:53)

437

David Faber (2:54)

Is that the number?

Carl Quintanilla (2:55)

Come on, it's a pretty low question.

David Faber (2:56)

That's actually like the House of Representatives, basically, yeah.

Carl Quintanilla (3:01)

Jim, we do have, you know, 10 year on the Treasury News did come back a little bit closer to five. You got oil today, lowest since February, I think.

Jim Cramer (3:11)

I mean, the war premium, the war premium disappears at $5. War premium is not necessarily economic growth declining.

We do know, by the way, that there's a permanent shutdown of the largest pipe, thank you, Russia, Brazil, beginning first 10 days of June. And so that's when I expect the next spike. I was surprised at this one, other than the fact that maybe there is, once again, a hint of peace talks.

And this reminds me of the peace talks going into the first Iraq war, where we had peace talks every Friday and nothing materialized. But I think it's a notion that the war premium is going away. And I find that also a little offensive.

Carl Quintanilla (3:48)

Given some of the comments out of Netanyahu this morning, for example, that the RAFA operation, he looks to continue regardless of the pressure from Blinken today.

Jim Cramer (3:57)

Well, I mean, I think that this is very difficult to talk about. And I would say that the idea that that Israel can divorce itself from the United States historically has not been true, according to the late Henry Kissinger, according to the late Richard Nixon, who was a not a friend of Israel, but chose to resupply Israel during the Yom Kippur War and saved Israel from destruction.