Jobs Report Rally, the "Magnificent Seven" and AI, Amazon Wireless Entry? 6/2/23

SPEAKER_1 (0:00)

Okay, text from the wedding planner. She's talking about a cake pop mural. Ah, exciting.

Ooh, it's $8,000. I don't know, we're trying to save for a house.

SPEAKER_2 (0:12)

Well, you only get married once or twice.

SPEAKER_3 (0:15)

The three time stops.

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David Faber (0:31)

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

Carl Quintanilla (0:37)

Good Friday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber, live at Post 9 of the New York Stock Exchange. Jobs number beats for the 14th straight month.

339,000, best since January, but unemployment does rise to about an eight month high. And while yields are up, futures are holding, markets still betting on a Fed pause later this month. Our roadmap begins with the macro picture and that blowout jobs report. Non-farm payrolls surging in May, and the Senate now moves to prevent the nation's first debt default.

David Faber (1:06)

Plus tax magnificent seven, a handful of big cap names such as NVIDIA, Apple, Tesla. They account for nearly 9% of all the S&P 500s gains year to date.

And Amazon perhaps in talks to offer mobile service to its prime members. The reporting of that possibility has shares of the big three carriers down sharply this morning. We'll discuss.

Carl Quintanilla (1:33)

Let's start with the market reaction to this morning's jobs number. Jim, we talked about whether or not this had been de-risked earlier in the week with that skip talk.

June odds now of a hike still below 50, maybe even the 30 range.

Jim Cramer (1:44)

It's so hard because when you see this number, initially you have to say, wow, right, they gotta tighten. And then people start looking for lines which say they don't have to tighten. And David, I call out, I don't wanna say they're silly, but you go to things like part-time for economic reasons, duration, all these different nitty gritties. But part-time for economic reasons is down 164,000 over last month. People coming back, people realize they're gonna have to go back to work because of student loans, I don't know. Snap, Snap was cited repeatedly in the Dollar General.

People don't get the food discounts.

I don't know, do people have to come back to work? I think that's why it's interest rates aren't soaring.

David Faber (2:24)

So that's the question you have, or you think you already got the answer to it.

Jim Cramer (2:28)

No, no, I'm not as that presumptuous, I'm early. It's only a half hour, I'm trying to parse it.

David Faber (2:34)

Right, what does that mean for your view though of wages and wage inflation and how everything plays into that and then hence into the-

Jim Cramer (2:41)

I continue to believe that Dollar General is the leader in this. The Dollar General says point blank that people have gotten much less.

Big deceleration in payments, having to go trading down, it's all happening.

David Faber (2:53)

And- So there is consumer weakness.

Jim Cramer (2:55)

Yes, because of inflation.

David Faber (2:56)

And every day I feel like, well, there's consumer weakness. Well, it's not that weak, it's kind of weak. Well, some are weak.

Jim Cramer (3:00)

Okay, I'm trying to justify-

David Faber (3:00)

And then Carl will chime in with delinquency numbers on credit cards, for example, which don't look great. Getting to what, the highest rate they've been in a long time?

Jim Cramer (3:07)

This is why I'm going for skip because things are just so in flux, come on. They're in flux.

Carl Quintanilla (3:12)

Well, you got the household survey too, minus 310K, which I'm sure Goldman will talk about later today. As for wages, Jim, 4-3 annual is equal to the lowest since June of 21

Jim Cramer (3:26)

It's going in their direction. Do they have to push it even further? Do they?

Let's say we're playing Jenga together, you and me. That's a game, put the things high. I know it. And it's like, I pull this one out, okay? Then you pull three out, Mester.

I never played Jenga with Mester, man, you have to get. She's, unless she really thinks she can not cause a recession and the whole thing won't fall, I don't believe it. She's off.

David Faber (3:50)

You think she's off, yeah.

Jim Cramer (3:51)

I think she knocked down the whole tower. I'm calling for prudence, not recklessness.