Jobs Report Reaction, A Holiday Lulu, Amazon CEO on Dangers of AI, Honeywell CEO Exclusive 12/8/23

SPEAKER_1 (0:00)

What do you see on the horizon for financial markets?

From uncertainty to opportunity, PGM can help you rise to the challenges of today, when disciplined risk management is needed most. With $1.2 trillion in AUM and deep expertise across asset classes, our investments shape tomorrow, today. Pursue your tomorrow with PGM, a leading global asset manager.

Carl Quintanilla (0:31)

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 Friday 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. Final jobs number of the year, 199,000 for November, slightly above estimates. Unemployment, 3.7. That's a four-month low and the best participation rate since the pandemic. We'll get to it all. It's where our roadmap begins, that jobs report. Of course, November numbers topping estimates. Futures try to climb higher following initial drop.

David Faber (1:02)

Plus, Lululemon is the biggest laggard on the S&P this morning. That's following its tepid holiday outlook. We'll give you more details.

And Honeywell agrees to buy Carrier Security Business. The price tag is $5 billion. We're going to speak exclusively to Honeywell's CEO. That'll be later this hour.

Carl Quintanilla (1:20)

Let's get some reaction to the jobs number. As we mentioned some of the metrics here, Jim, lowest annual wage growth in a while.

Jim Cramer (1:27)

Right.

Carl Quintanilla (1:28)

And as we said, participation is encouraging.

Jim Cramer (1:30)

Major focus is exactly what you just said. And I want to say something that it's really bugging me.

There's so many people who are looking for a rate cut in this weird world that we're in, in finance. You look at what we've got here with these numbers, and if you're Jay Patterson, let's just play it out. Why do we have to start cutting? We have good numbers, let's be sure. Let's have six month worth of numbers like this. And David, it's only on Wall Street that they look at something, they have to make a decision. No one wants to say, hey, you know what?

There's no trader.

David Faber (2:05)

Right. They have to trade.

I guess they have to.

Jim Cramer (2:08)

They're Jones and for trading.

David Faber (2:09)

I guess they are. I was on the phone with somebody who typically would, and I said, you know what, don't do it. Just stay on the phone with me.

And they did. They stayed on the phone with me.

Jim Cramer (2:17)

They probably made a billion dollars.

David Faber (2:18)

And by the way, they ended up not losing because I bet you they would have gone short, and you saw what happened to the Futures right after. And now they've come more or less almost all the way back.

Jim Cramer (2:28)

David, with a series of great calls.

David Faber (2:30)

So I did save somebody, I think. This is an old friend of mine, and I know, you know, I do know that they tend to do that.

Jim Cramer (2:36)

Well, OK, so you're...

David Faber (2:37)

I was like, don't do it. Don't get off the phone.

Jim Cramer (2:40)

Well, I think that the bias toward action by them is very unrealistic for what, if I'm J-PAL. J-PAL says, look, I can keep rates up. We got a 3.7% unemployment rate.

Shouldn't I wait till it gets to like 4.5, if we really have to start cutting? Because right now, we're just beating inflation over the head. Let's keep beating it.

Carl Quintanilla (3:00)

Yeah, there are people starting to slice and dice, take away the UAW effect, take away SAG-AFTRA, take away government and take away health care.

Jim Cramer (3:08)

Health care?

Carl Quintanilla (3:09)

And some of these non-cyclical areas, Jim, you're looking at 26K for the month?

Jim Cramer (3:14)

Manufacturing is a little bit short. We're spending a trillion dollars from reshoring. You could create 28,000 jobs.

A lot of people are confused by that health care number because we just don't see it in the system when you look company to company. But this is a very strong report, and I think that those who keep looking for, you know, revision that's down, you know, you get a revision that goes the wrong way. But maybe we, I think good is good, is what I'm saying. I think that when you read some of these strategy notes we're starting to get, their biggest fear is a recession. They should wake up and smell the coffee.

They really should.

Carl Quintanilla (3:51)

Meanwhile, we got gasoline, futures two year low, oil's on pace for seven weeks down, haven't done that in several years. Meaning, does the tone of the meeting change next week?