Inflation Watch, Mars-Kellanova Deal, Google from DOJ to WFH 8/14/24

Jim Cramer (0:00)

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 (0:07)

Good Wednesday morning. welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post Night of the New York Stock Exchange. Futures are steady as CPI does come in light. Below 3% year on year. First time since 2021 That's two dovish prints this week as we await retail sales tomorrow. Our roadmap begins with the inflation picture. Consumer prices in line month on month as well. Likely keeping a rate cut on the table for September.

David Faber (0:30)

Plus it is the biggest deal of the year. Candy Giant Mars acquiring Kellanova. Equity value around $30 billion, $83.50 a share. We're going to break down the details around this snacking deal. And shares of Nvidia continue to rebound. Up double digits for the week already. That's about $400 billion in additional market value in just four days.

Carl Quintanilla (0:55)

Let's begin with this market reaction to CPI. Two-tenths month on month is in line, although Jim, unrounded 1549 is a kind of a dovish two-tenths.

Jim Cramer (1:04)

Yeah. Look, if it's all shelter, and we just saw some really good numbers, by the way, for mortgage and refi, then maybe that takes care of itself. I think what's happened is that housing has finally gotten the point where people are saying, wait a second, it's game of chicken. Maybe I should kind of let it go right now. And I think we all know people who've been saying, I can hold, I can hold you kind of like Braveheart. And now they realize, well, wait a second. If I wait a second longer, maybe it's going to fall. And then once it falls, David, it really falls.

David Faber (1:34)

It falls. Once it falls, it falls.

Jim Cramer (1:36)

Well, it falls like Niagara Falls, not Victoria Falls, but it falls.

David Faber (1:41)

So bigger falling.

Jim Cramer (1:42)

Bigger falling. Yeah, well, no, no, I mean, look, we are building a bit of an inventory. And in some parts of the country, the inventory is worse than others, particularly places that were very inflated, Florida, Arizona. So you're starting to see people say, you know what, maybe I ought to take it. Now, I get this because home people had some incredible stuff to say about the golden lockup from rates. You know, in other words, these rates were like so low that people got mortgages two and three, golden handcuffs. And now they're saying, you know what, people are starting to have families and they can't stay in these homes, even if they have... What are you doing? I'm talking to you.

David Faber (2:21)

I'm just futzing with my wire.

Jim Cramer (2:23)

You know, Carl, while he's futzing with his wire, I mean, there's a lot of people who are just saying, you know what, I have to have a bigger house. I can't really care all about a percent and a half mortgage.

Carl Quintanilla (2:33)

Even if you don't move, Jim, refi is today up 34 and a half percent. It's the best since May of 22

Jim Cramer (2:41)

And we're going to... By the way, Home Depot did finish shop after being down 15 And one of the things that you've been waiting for is home equity loans, because the amount of equity in people's homes since 2019 is extraordinary and it's being tapped into.

David Faber (2:59)

Which would mean what? Good for consumer spend in a way? It's going to be... We're talking about a weakening consumer. That's what we talk about every day now.

Jim Cramer (3:07)

Right. Remember, we're at the fulcrum where if you start cutting rates, people will then tap into the one, I think, the asset that they have that is appreciated. Yes. When you have an asset that's appreciated gigantically, as Home Depot said last night and yesterday morning. Well, I mean, you want to use it, but you don't want to use it if you're getting 8 percent on a HELOC. But if you can get a good price on that, then you can start doing things. You can remodel, you can renovate. That's very important right now. All people have been doing is painting, buying some grills. But you can remodel or you could maybe trade up.

Carl Quintanilla (3:40)

Airfares were down year on year. Use cars, insurance was still the wrinkle. They're flying, they're going up one.

Jim Cramer (3:47)

Starting to see some ads for cheaper insurance. And I'm quite aware of them. Some of them are on our network. So I see them. I watch our network.