Inflation Cools in March, What Buffett Told CNBC, Emerson's $8.2B Deal 4/12/23

Carl Quintanilla (0:00)

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

David Faber (0:05)

Big day as March headline CPI comes in light up one-tenth, and year on year falls a full point to 5%. Yields are dropping, 10-year 336 Of course, Buffett on Squawk also lighting up the tape. Our roadmap this morning begins with some breathing room for the Fed. The latest key inflation numbers showing price pressures eased once again in March.

Carl Quintanilla (0:24)

Plus, Warren Buffett says, we are not through with bank failures, and energy continues to be a focus. Crude hit its highest level in nearly three months, and the White House is seeking to boost that transition to EV.

David Faber (0:39)

Let's begin with Mark, a reaction to CPI today. Obviously, a hugely anticipated number, Jim. Some of the internal shelter up six-tenths, but some relief in used cars and energy and electricity and food at home.

Jim Cramer (0:51)

Yes, food at home, by the way, they brought that up because ConAgra talked about that.

ConAgra had been one of the companies that had been considered overly raising all the prices and they said this time we're not raising because we're such a bargain versus going out. I thought that was really good. I often find, though, that some of these things, I just don't know where they pull them off.

Where did they get, the one that I thought was most confusing was, okay, so motor vehicle insurance. I wanted to ask Warren Buffett that one. That would have been a good one. Airline fares, absolutely.

Household furnishings. We see the pressure in the, you don't want to own a single stock in the household furnishing industry because the pressure is so phenomenal against them. And that comes out to be a problem. So I look at this and I say, well you know what? Other than shelter, which is still definitely an issue. David, if you're gonna raise rates because of this, you don't care about this. You're raising them because of something that you see that we don't.

Carl Quintanilla (1:54)

And what would that be?

Jim Cramer (1:56)

Well, I mean, maybe the possibility that we have really gotten over the banking crisis and people don't want to say, hey, it's over, but you're willing to make bets that people aren't gonna lose their posits. You feel a little too confident.

There's a renewed confidence post what happened.

Carl Quintanilla (2:13)

All right, so based on this CPI number, which essentially was in line in terms of year over year and the estimates, you think the Fed's done?

Jim Cramer (2:21)

No, I think Austin Goolsbee was very rational in saying, listen, maybe this is a weight, you got a weight number.

Now, I don't know, Carl, whether weighting is considered to be we are willing to have the status quo inflation, which we're clearly not, but they need more, the government needs more ammo than just housing because housing is proving to be intractable. You know, we had, I don't know if anyone saw the stocks yesterday, the housing stocks, they were on fire because mortgage rates are going lower.

David Faber (2:52)

They get five straight weeks lower.

Two month low now with the 30 year average 6.3, right? And that's why mortgage apps got a little nice tick up.

Jim Cramer (3:02)

So I mean, look, do you want to raise rates because you think that that could raise mortgages? It hasn't worked. David, the mortgage price is not, there's not, it's not going up, right?

Carl Quintanilla (3:13)

Mortgage rates aren't going up, right?

Jim Cramer (3:14)

So they can keep raising and what are they gonna do? I mean, unless you're getting a six month mortgage, which I don't know how you get.

This is encouraging my wife to go back in the housing business, David.

David Faber (3:26)

Yeah.

Jim Cramer (3:28)

You were supposed to say there isn't any level that would describe it.

David Faber (3:30)

I mean, it's like does she need an encouragement?

Carl Quintanilla (3:32)

I mean, how many homes can you own?

Jim Cramer (3:34)

Well, David, you know.

David Faber (3:35)

We're gonna find out.

Jim Cramer (3:36)

How many yachts can you ski?

Carl Quintanilla (3:38)

You're testing the limits or she's testing them.

Jim Cramer (3:40)

No, there's a, I don't know, which is because I'm trying to put a clause through with Congress that after you buy your 15th home, you get the 16th for free.

Carl Quintanilla (3:47)

It's a loyalty program. I was just thinking about all those mortgages though.

Jim Cramer (3:50)

It's buy one, get one.

Carl Quintanilla (3:51)