Inflation and Jobs Watch, Oracle After the Huge Rally, Remembering 9/11 9/11/25

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 Squawk on the Street. Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at Post 9 of the New York Stock Exchange. It's a somber morning on this 24th anniversary of the September 11th attacks. The New York Stock Exchange will have a moment of silence in a few minutes as the nation remembers. Markets meantime are reacting to the hottest pace of consumer inflation on an annual and a monthly basis since January and the highest rate of jobless claims since late 21 Ten-year yield briefly falls below 4% for the first time since April. Let's begin with some market reaction to CPI, Jim. Food at home, biggest increase in a few years.

Jim Cramer (0:44)

There are some things. Shelter went the wrong way. Energy is really kind of saving us. It is intriguing to see you put the mosaic together. It's not that hot, but these are intractable things that a lot of people feel.

You know, David, when you have these numbers, when it's shelter over Manhattan, by the way, Manhattan, you see that the numbers were down a little? Not in this, but when you have these numbers, it reminds me, not the jobless kids, but you have these. It reminds me, well, this is the high inflation number everyone's scared of, but the PPI was good. So maybe in the channel, you're going to have some good things.

David Faber (1:20)

Right. We've got to put this in the context of yesterday's number, which was well below or certainly below, at least, the expectations. What about this unemployment weekly claims number? Because it is the highest, I believe, Carl and my wrong since 21, is that right?

Carl Quintanilla (1:35)

October 21, yeah.

David Faber (1:37)

It's a pretty big number and an increase of 27,000 in a week and certainly something that is watched. And if you don't believe in the numbers being reported by the BLS or the survey, this is much what you might default to because this is a, you can prove this.

Jim Cramer (1:53)

Right. But I will tell you, congratulations, 30th year Squawk. Squawk, I talked to a lot of CEOs last night. This was it. This was the first time I heard. We don't need all the people anymore. We are really starting to figure out how to use this AI, and it turns out that it's very good for not having to hire people who write code.

David Faber (2:14)

Yes, that is.

Jim Cramer (2:15)

That was it. You heard it from, I'd say half the CEOs brought it up.

David Faber (2:20)

Well, we hear it here as well. In fact, we had the CEO Klarna with us yesterday as that company went public and they were the earliest, I would argue, to really embrace efficiency even before Meta. And he went from 7,400 employees at Klarna to what is now 3,000. And he didn't do it by wholesale firing.

Jim Cramer (2:39)

No.

David Faber (2:39)

He simply did it by not hiring and letting the 20% of employees who sort of fall off every year do that without being replaced.

Jim Cramer (2:48)

Yes. And I kept hearing things about, well, if it's a software as a service system that we have, that would be Adobe or Salesforce. We've been able to develop programs that are very similar. We don't need that anymore. And I was like, you're kind of stunned because you thought, you heard that was going to happen, but you never thought you'd expect a CEO to say, and you know what? These are not as indispensable as we thought.

David Faber (3:10)

No. I mean, we do have the CEO of Klarna yesterday who joined us here at Post 9 Of course, we'll also keep track of the stock after its initial public offering. But take a listen to what he had to say in terms of what Jim's talking about here, efficiencies related to AI and the lack of hiring as a result.

SPEAKER_5 (3:27)

Thanks to AI, we used to be 7,400. We're now 3,000 people working at Klarna. I mean, that means that we can offer our services at a better price, at a higher quality.

David Faber (3:38)

Can you go too far in terms of cutting or do you see continuing to lop off, as you said, the 20 percent that leave every year and not replace them?

SPEAKER_5 (3:46)

You can, and I think we may have over indexed on AI and efficiency, and now we are indexing more again on growth.