Hassett on Jobs and Trump's Tech CEO Summit, Potential $1T for Musk, Broadcom Surges 9/5/25

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Market insight and analysis. You're listening to the opening bell of CNBC Squawk on the Street.

Carl Quintanilla (0:52)

Good Friday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. David Faber as the morning off. S&P futures trying to hold some gains here as yields drop on the back of August jobs. 22,000 is below estimates. Unemployment rate hits 4.3. That's the highest since 2021 And June jobs actually revised to negative. That would be the first month of job loss since December of 2020 Our roadmap begins with the last employment report before the Fed's next rate meeting. Jobs coming in weaker than expected. President Trump's top economic advisor, Kevin Hassett will join us this hour. Those tech titans dining at the White House last night, as the president says, he'll impose tariffs fairly shortly on chip imports from companies not shifting production to the US. And the trillion-dollar man Tesla's board proposing an unprecedented pay package for Elon Musk comes with some ambitious goals for the company. Let's begin, though, with market reaction to this morning's jobs number ahead of our interview with NEC Director Kevin Hassett. Jim, we were looking for 75 Some of the revisions not as dramatic as last month but still lower.

Jim Cramer (1:53)

No, look, this is an economy... I want to take something off the table. This is not a recessionary economy. Please don't say it would be really low. Really low unemployment. But where the jobs are... I think when you look at the juxtaposition of, say, billions being spent, maybe hundreds of billions, on data centers, right, to give the example, it doesn't show up in any of these numbers.

You don't see any manufacturing. You don't see any of the construction jobs. And then what you do see is that we realize we forget about those because we now think about him as a pay package guy again, not as what he was doing. But we finally are starting to really see those federal layoffs. There's so much more difficult to compute for people like us from the private sector because you lay off some of the private sector, and unless it's just got some sort of provision involving a union, they're off. So now we're starting to see Doge, and we're also not seeing the pickup in what I keep thinking will happen around that table with the president. Those people are committing, well, 600 billion or 600 billion. These are numbers that would mean that you should be hiring people left and right. But no one's really getting hired.

Carl Quintanilla (2:59)

Manufacturing lost 12, and year to date, Jim, we've lost 78,000 manufacturing jobs this year.

Jim Cramer (3:05)

It's astounding. I'm not being critical of the president, but we're not seeming to relate all these amounts, endless amounts of money that the tech's committed to anything that we're used to. We're not seeing what I would have thought would be just a gigantic resource explosion. Anything, by the way, we also see, we have some OPEC issues, but we're not seeing any pick up in oil and gas. Nothing is picking up. And you start thinking, okay, wait a second. Is there something out there that people are afraid to hire about? I mean, I've been with a lot of CEOs in the last two weeks, and they are all afraid that the other guy's not hiring because of AI, so maybe they shouldn't be hiring. It's just a great conundrum because we should just be like, I don't know, you would expect to see 100,000 manufacturing jobs created in the last three months. 100,000 easily.

Carl Quintanilla (4:03)

We do have 12% odds this morning of a 50 basis point rate cut. Do you think that conversation picks up from here?

Jim Cramer (4:10)

Yeah, I think it probably does because we're just not seeing the hiring that I would have thought. You know, I was with Ward and I the other day. He is the CEO of the largest rock company, aggregate company, Martin Marriott Materials, and they're doing a huge amount of business and they're putting it, they're laying it down for data centers. And then he starts, I said, well, how about infrastructure? He goes, we know that money's still coming. And I'm thinking, get the darn money out. We don't want to have manufacturing to be in decline in this country. That's something that nobody wants, Democrats or Republicans. And it's not working the way I thought it would have. And now we know White Collar, obviously White Collar. I was seeing to Nick Keshwerer last night from Palo Alto Networks. And, you know, there's just every single week, there's a new, better AI program that makes it so you don't want to hire. Not necessarily you want to be in this band. You just don't want to hire.