Inflation Watch After the Rally, Trump and CEOs in Saudi Arabia, UNH Upheaval 5/13/25

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Jim Cramer (0:59)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:06)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at post nine of the New York Stock Exchange. Pre-markets adding to Monday's monster bounce. The presidents in Riyadh ahead of a big investment summit will have full coverage. And CPI comes in light. Gasoline and food prices fall 10 year right around 446 today. A roadmap begins with stocks looking to build on yesterday's massive rally. Nasdaq's back in bull market territory. Dow exits correction. And the S&P notches its highest level since early March.

David Faber (1:36)

Plus UnitedHealth shares their down sharply in the pre-market. The company announces it suspends its 2025 outlook. And perhaps as importantly, CEO Andrew Witte stepping down from his role. That's immediately President Trump in Saudi Arabia today. It's the first stop in a four-day trip to the Middle East, his first international trip of his second administration.

Carl Quintanilla (1:59)

Let's begin with the markets and CPI after yesterday's rally, looking through some of the categories. Jim, mining for any tariff impact, maybe some in furniture, living room and bedroom furniture.

Jim Cramer (2:10)

It seems that maybe a pull-through there, but I was impressed with food at home, which matters tremendously. It was a very, very good number. Used cars surprised me. I know I went over the Carvana call, and you could have argued, I would have said maybe used cars are going to have a little boost here because of how much new cars cost. It didn't. These are very good numbers. I know initially the bond market went nuts for it, and rates went down, and then they kind of come back up a little bit. They're down again. But I mean, I think that you could argue that there's room for Pal if you had a couple months of this. David, these are not numbers that signal stagflation, even as we have lots of people who come on air. By the way, a lot of commentary from the big strategists who say that the stagflation group of people really missed this round.

David Faber (2:57)

Yeah. I mean, I think it was yesterday, Austin Goolsbee also. Backing away a bit, I don't want to characterize it too much, but not saying that we're going to be getting great growth and still concerned on that front, obviously a member of the Fed.

Jim Cramer (3:09)

Right. I do think that Goolsbee is an honest broker, but one of the things that's amazing is like, look, I try so hard to know what, try to forecast the CPI, and would I have said that food would be good? Well, I don't know. A lot of our food sources from Mexico, because they're like our fresh vegetables, would I have said that used cars would be good? No. It just didn't. Gasoline, yes.

But some of these things are very sticky. Insurance is still bad. No one seems to want to come in underneath the insurers. That usually happens.

Carl Quintanilla (3:41)

Yeah. Auto insurance for the year, up 6-4.

Jim Cramer (3:44)

That's bad.

Carl Quintanilla (3:45)

Yeah. That does make some sense. Airfares, though, on the month, down a couple.

Jim Cramer (3:50)

Right.

Carl Quintanilla (3:50)

2.8, 2.4.

Jim Cramer (3:51)

I guess that year may be over. I wonder whether... I saw Marriott was up yesterday, and American Express is up, but I would say that if you want to go Airbnb, it's down. There's enough that's negative, that's going lower in the system, and Carl, I could argue, yes, tariffs are going to hurt, but the whole tariff as big tax theory, that may not have gravitas.