Inflation Report Lifts Stocks, Oracle's Record High and AI, Apple Downgraded 6/13/23

SPEAKER_1 (0:00)

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Carl Quintanilla (0:30)

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 Tuesday 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. Big day for macro as May CPI comes in a touch light on headline down to 4% year on year. That's the lowest in two years.

Futures are steady. Market now baking in no hike from the Fed tomorrow. A roadmap begins with inflation's downward path cut by more than half now since last year's peak, but still 4%. What are the implications for the Fed?

David Faber (1:05)

Plus cloud revenues giving Oracle a big boost. The shares were up yesterday in anticipation of the earnings. They're up again ahead of the open this morning.

UBS downgrades Apple saying it sees weaker demand ahead for iPhones.

Carl Quintanilla (1:19)

Let's begin with this market reaction to this morning's CPI data, Jim. I know you love to look at internals.

Jim Cramer (1:24)

Yes.

Carl Quintanilla (1:24)

Thank you, Energy, down 3.6. Used cars up 4.4.

Jim Cramer (1:28)

Okay, so used cars is not up to date. The last few weeks used cars, the margin used cars and news, and MSRP, by the way, is down 2.5. Has really gapped in that used cars have kind of really plummeted. Maybe 5%, which is not captured by this, but that's okay. You're looking forward.

That's a category that is a win for the Fed. The loss is housing, and we just don't have enough. And all I can say is, David, I don't know if you see some of the notes on student loans, but maybe people just won't be able to go anywhere and it won't bid up housing. But right now, Toll Brothers is a million dollars.

And by the way, it can go to 1.1%.

David Faber (2:13)

There is an expectation, though, that rents are gonna start a fairly significant decline.

Jim Cramer (2:17)

I know, but where's it coming from?

David Faber (2:21)

What do you mean when you say that? Where is it coming from?

Jim Cramer (2:23)

Well, I mean, we have whole regions in the country where there are people bidding wars for rents. It's true. It has to do with regions, right?

Yeah. The Cleveland region.

David Faber (2:33)

Yes, Cleveland.

Jim Cramer (2:34)

One of the four hottest regions.

David Faber (2:37)

It's apparently millennials, or yeah, people moving to Cleveland.

Jim Cramer (2:40)

No, I mean, this is.

David Faber (2:41)

Because it's cheap.

Jim Cramer (2:42)

It's a little anecdotal, but the fact is is that that I don't have an answer for. I don't have an answer for housing in general.

David Faber (2:49)

Right, well, you're talking about ownership. I'm talking about rentals, but rentals is bigger.

Jim Cramer (2:54)

Well, rental is CPI.

David Faber (2:55)

Yeah, rental is CPI. Exactly, that's what I'm asking.

Jim Cramer (2:58)

Well, I just, I mean, that's, I'm hoped for on that one. We need to see more building, but I just think that if that's the last one, that's not bad.

Carl Quintanilla (3:08)

As for yesterday's action, of course, first 52-week high for the S&P in a year.

Jim Cramer (3:14)

Right.

Carl Quintanilla (3:14)

Of the 360 trading days. And some reports on one of the fifth biggest short covering episodes in about four years, five years.

Jim Cramer (3:22)

Look, we'll probably have a quarter of the S&P that we'll be at its 52-week high for the last two months after today. And those who keep saying it's a head fake, when does a head fake turn into a profit center?

Like, what are we play here for? Are we here to theorize or are we here to make money? Because I gotta tell you, you make money by being long stocks right here. That's what happens, okay?

David Faber (3:53)

Is there a reason you're yelling at me?

Jim Cramer (3:56)

Yeah, I got my voice back.

David Faber (3:58)

It's 903, usually you don't start yelling at me till like 920

Jim Cramer (4:01)

Well, because like I was waiting for you to say, well, AI is gonna make it so that we're all, you know, the 14th Amendment and 13th Amendment repealed because of the machines. What I'm saying is that right now, people are making more money than I've seen in this market in maybe, I don't know, how about 12 years?