House Passes Trump's Tax Bill, Long Bond Yield Jumps, Tesla Gets Leapfrogged 5/22/25

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David Faber (1:02)

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

Carl Quintanilla (1:08)

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 is stabilizing here after Wednesday's losses as the House narrowly approves the tax bill and the long bond yield hits an 18-year closing high, 515, 10-year yield highest since February. Our roadmap begins with stocks said to add a bit to Wednesday's losses as the GOP tax bill now goes to the Senate. Investors fear a worsening US deficit that 30-year hitting the highest level since October 23

David Faber (1:36)

Plus, we'll talk a bit about Tesla and some of its troubles that despite, of course, the recent rally in the stock, sales in Europe are falling. They're falling behind China's BYD for the first time, in fact, last month. And it's another potential blow to Apple, why OpenAI's deal with the iPhone designer, Jony I, should be, or maybe, a wake-up call.

Carl Quintanilla (1:58)

Let's begin with market reaction to this House approval of the President's Tax and Spending Cuts Bill after yesterday's sell-off. Jim, your general thesis has been once you push through this, stocks recover, even if yields stay at these levels.

Jim Cramer (2:10)

Look, first of all, all that has to happen is the Treasury Secretary Besson say, you know what, we're not going to fund long-end. We're going to fund short. Look, the guy was in the market for 35 years.

Carl Quintanilla (2:19)

The same thing he gave Yellen a hard time about.

Jim Cramer (2:21)

Yes, yes, but he was in 35 years. And David, you know, anyone who's been in the market 35 years knows that if you're going to hit the long-end, don't hit the 20 year, for heaven's sake. That was about as stupid as plywood. But you're going to be able to lower, if you decide to borrow short, then this overhang goes away. And by the way, at one point, we had a dramatic decline in bonds and of course higher interest at 720 when nothing had happened other than a ratification of something and we all knew what happened. So I'm just saying that you can't keep going down on the same news. It doesn't work like that.

David Faber (2:55)

So we should, all right, meaning what? We should be done. Yeah. Okay.

Jim Cramer (3:01)

We should be done.

David Faber (3:01)

Except that the tenure at 46 is a constant reminder that the bond market is.

Jim Cramer (3:07)

Well, why does it have to be constant? Now, David.

David Faber (3:09)

A little upset.

Jim Cramer (3:10)

David doesn't know. I did some work, David. From 1985 to 1993, we had a sustained rally with plus 5% on the 30 1994 to 96, we had a frequent. How about this? 1909, 2000 sustained rally. 2006, 2007 sustained. I mean, there have been some periods. People don't remember there have been some periods above five where you wanted to get long, the majority of time.

Carl Quintanilla (3:31)

Well, the average on the long bond yield is 483 over 10 years.

Jim Cramer (3:36)

Yeah, so let's stop freaking out. Look, I know people want to be able to say, we were hoping to take a trillion off. I mean, you know, there's a Nick Timmer's piece, a tweet today about one of the second, one of the, you know, endless people who talk, this time Governor Waller, saying, oh, look, we thought that there was going to be better. Who thought it was going to be better? It was a big, beautiful bill for heaven's sake.