Fed Decision Day, Nvidia Rebounds, Starbucks CEO's 100th Day on the Job 12/18/24

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Jim Cramer (1:01)

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

Carl Quintanilla (1:14)

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. Bulls do look to get some back after the Dow's worst day in a month. Dow's also trying to avoid a 10th consecutive loss. It's Fed Day, great decision at 2 p.m. Eastern Time. A roadmap begins with FedWatch. A third straight rate cut is expected, but investors are waiting the dot plot for some tea leaves in the 25

David Faber (1:36)

Plus that AI trade. Nvidia shares look to be set for a bounce. Salesforce launches an AI hiring spree. And energy regulators are warning about tech surging power demands. And Starbucks on the verge of a major barista strike, an early challenge, it would seem, for its new CEO, Brian Niccol.

Carl Quintanilla (1:55)

Let's begin, though, with the markets and decision day for the Fed. It's not just the rate decision, Jim. We'll see if they revise their growth forecast, if they signal fewer cuts next year.

Jim Cramer (2:04)

Yeah, look, I mean, there's just growing consensus not represented necessarily in these Fed Fund futures, which just says, why are they doing this? And I come back and say, well, why are they doing this? Look at the material stocks.

Look at anything related to industrial export. Look at the housing stocks. David, there are cohorts that are indeed rolling over. It isn't like everything is just super strong and everything's quantum computing and rocket lab.

David Faber (2:29)

Man, those small quantum computing companies, not the big one, not the one that's probably going to win if it ever comes to it with the Willow, but all these small guys who know, who knows. Hey, Sam, they're all, they're all taking off.

Jim Cramer (2:40)

These are all.

David Faber (2:40)

But to your point about what's not been working also, Jim, and I don't know if this goes to interest rate forecasts or the fact that we may not get as many cuts, but value stocks, 11 straight days down.

Jim Cramer (2:53)

It's incredible. Look, we've got a new record. These are mini bear markets.

David Faber (2:57)

You know, the index that's so-called sort of encapsulates the so-called value stocks.

Jim Cramer (3:03)

Did you see Dow Chemical? Jim Fiddle put a lot of stock. Because it yields 7 percent. There's no sign necessarily that it can't cover that yield. It certainly can.

David Faber (3:11)

Looks like a bit of a rebound today. But I mean, that's 11 straight days.

Jim Cramer (3:14)

In the morning, this is called the morning.

David Faber (3:16)

Yeah.

Jim Cramer (3:16)

But you're looking at stocks, oh, there's, by Cleveland Cliffs just went by. It's under $10. Ford Motor. I mean, you look at Ford Motor, you just say, wow, warranty problems, but also inventory problems. So I think that the talking heads, and boy, are there ever a lot of talking heads, have decided that, look, if you look at what we're seeing in some retailers, things are strong. By the way, in retail, it's not strong either if you count coal.

Carl Quintanilla (3:40)

Well, the headline beat yesterday was largely about dealers offering incentives to clear out inventory.

Jim Cramer (3:46)

Look, I don't know where these people get that things are strong. They look at the aggregate numbers. I look at the individual companies. I am trying to find companies that are strong. When you have General Mills having to get more promotional in order to be able to get its sales up, what does that say? It says that there are promotions all over the place. And I happen to think that I had Lowe's last week, Marvin Ellison, Lowe's big chain. You're talking about headwinds, headwinds, headwinds.