Hot Inflation Data, Nvidia Reaches Amazon’s Market Cap, TV Ratings Record 2/13/24

David Faber (0:00)

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

Carl Quintanilla (0:06)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber at Post 9 of the New York Stock Exchange. Cramer joins us live today from Philadelphia.

Futures are tumbling on the hottest core CPI print since last April. 10 year pops above four and a quarter. That's a high for the year.

Add to that a rash of weak guidance from companies like Marriott and Hasbro. We'll get to all of it. Our roadmap begins though with the latest inflation print core CPI, hotter than expected. Big implications for Fed rate cut expectations.

David Faber (0:33)

Plus we'll talk chips and the AI frenzy Nvidia shares. They're at record highs and have overtaken Amazon when it comes to overall market value.

And it was a big ratings win for Sunday's big NFL game. Yeah, it was called the Super Bowl and it easily shattered viewership records.

Carl Quintanilla (0:52)

Let's get to this morning's CPI number. As we said, hotter than expected, Jim, everybody's talking about shelter six tents. That's two thirds of it right there.

Jim Cramer (0:59)

Right. I wonder how much the we tend to use the number eight million aliens, illegal aliens, legal aliens, immigrants, whatever you want to call it. But I think that they've been a major source of rent increase because we have to shelter everybody and the cost of sheltering is just going up because we've had a big burgeoning in population. We just don't talk about it.

But I think we should talk about it because it's something that is vital to make sure that we're a civilized country. And we right now have to put people in homes and we have to put people in apartments.

And we have no choice. And I think that's moving up shelter.

Carl Quintanilla (1:38)

Kind of ties in with what CBO said the other day about immigration, Jim, and that is that the economy is going to be $7 billion bigger because of the people we're letting into the country.

Jim Cramer (1:47)

Well, look, these are undocumented immigrants.

I think I do not share the negativity about this, by the way, because we have such a shortage of workers. And I think if we just adopt kind of a humane approach and also legislation in Washington, we will be able to make it so that everybody is productive. But in the interim, we have to we have to shelter people. And I think that this big influx of undocumented immigrants and documented has made it so that we have no choice but to have rents go up. I actually think home prices will not go up as much.

Again, I want to emphasize, I am not in the camp, which just says this is something that is bad. We have to take care of. I think it's just something that if we address, we can actually make it a positive, Carl. So I'm I'm not as negative as everybody else is about this because I think that number can come down.

Carl Quintanilla (2:33)

Meantime, David apparel got some help down 710s gasoline was a help.

Use cars. But then you get motor insurance, auto insurance, insurance was one of the biggest as well.

David Faber (2:44)

I think we all sort of experienced the sticker shock of that. Not to mention home insurance, which I'm not sure is a part of it, but which is going up dramatically across the board, Jim, you know, it's certainly seems to be diminishing the market's hopes for a rate cut anytime soon.

I think the chance is now for a rate cut in May. We don't even talk about March any longer, of course, when we came into this year that seemed to be still on the table, at least as far as the market was concerned. What are your thoughts, though, when it comes to potential rate cut? Not to mention our conversation from last week, which is not a hard landing, not a soft landing, but no landing.

Jim Cramer (3:22)

You almost said rate hike. You cut it at the last minute, you called it the rate cut, but look, the economy is really strong.

There's just a huge amount of money coming in from infrastructure. We're having a hard time finding workers in a lot of different businesses, whether it be engineering or construction. Housing is much stronger because mortgage rates drop.

The rent number is not good. The food at home number and the food away number, I'm finding it's hard to believe given the fact that Walmart and Costco have held the line on food. We had Coke cold this morning. That is a calm number. We had, wow, we had Molson. That is up.