Jobs Report Reaction, GameStop's "Roaring" Wild Ride, Street Views on Musk Pay Vote 6/7/24

David Faber (0:00)

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

Carl Quintanilla (0:05)

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. Too darn hot, jobs number for May 272,000 defies expectations of 185 Futures are lower, yields popped to the highest level since about Monday. Our roadmap begins with Fed expectations following today's hotter than expected number. We're gonna break down what it means for the rate policy outlook.

David Faber (0:28)

Plus, we continue to be on meme watch. GameStop shares are sinking pre-market. The company's selling a lot of stock. It also has falling revenue. Roaring Kitty, by the way, teases a YouTube stream today.

And Cathie Wood praises Tesla CEO. That's ahead of next week's shareholder vote why she says it would be unconscionable to renege on Elon Musk's payback.

Carl Quintanilla (0:49)

Let's begin with reaction to the jobs number. As we said, 272, minor revisions downward. Jim, household down 400 plus. So once again, we have these split signals.

Jim Cramer (0:58)

Right. I mean, look, I think that the public looks at the four and says we've had this incredible string of below four.

So things are starting to get a little softer.

But the actual number, if you look at the gains in service jobs and government jobs, I mean, it's really rather extraordinary. All those service PMIs that look like they were strong, they were strong. David, they're still hiring, the government's putting a lot of people up, but if you have hospitality, if you have anything involving service, anything travel, anything leisure, they're just not stopping. They're just continuing to spend. People keep hiring in those spots.

David Faber (1:34)

I think this number was a disappointment to many market participants. I would hope that any number of weak spots were showing that there was significant softening in the economy.

Jim Cramer (1:44)

Yeah, health care, wow.

David Faber (1:45)

And that is why we'd seen the tenure come down in yield over the course of this week.

And in recent days, and that's all reversing. And the hopes for a rate cut soon, so to speak, let's call it within the next three, four months, perhaps starting to dissipate on this number. Jim, it's hard to make sense of where we are right now.

Jim Cramer (2:12)

Well, would you agree? Is it really? We put through a huge amount of stimulus. Health care got set back by the pandemic, and now people are coming back for five medtronics. You can't believe how the nature of operations, how many operations are being held that have been held back because of COVID.

We know the travel leisure has been very strong. Now, all the other industries, by the way, manufacturing, wholesale trade, transportation, warehousing, information, financial activities, nothing, nothing, there's no gains there.

It's just the government with so much debt that they took down and paying people to do infrastructure and healthcare. Well, you know, look, you gotta catch up with all the operations that were delayed or deferred.

Carl Quintanilla (2:55)

We got a generation of boomers, Jim, who are getting older, need doctors, need medical facilities, elderly care, you name it.

Jim Cramer (3:02)

Look, this is about knees, it's about backs, it's about hip joints.

It's, when you talk to Medtronic, which is involved in pretty much everything in the operating room, business is really good. And that's what you're seeing when you see this number, healthcare added 68,000 jobs. I mean, look, we are doing, ambulatory healthcare services is the strongest part of this economy.

Carl Quintanilla (3:27)

That's a sad, sad. So, we got a generation of consumers who are either gonna travel or go to the hospital.

Jim Cramer (3:33)

Well, yeah, I mean, you can make that case, which is why there's just been this huge move in a lot of the hospitals. The hospitals are doing great.

That's not necessarily what you want out of your economy. You would like to, I mean, people keep talking about how the AI economy is, there's nothing.

AI means fewer jobs. The people in Silicon Valley are all at home and trying to figure out what to do.

But if you're in the hospitality industry, you gotta hire more people, because more people are traveling. This is still, I'm surprised, because people have been saying it's more overseas travel, but it looks like domestic. And it's a good economy. Can I say it's a good economy? Obviously the jobs aren't where we'd like them necessarily. But what do we care? I mean, if you want a job, you get one. Isn't that what it's about? You want a job, you get one.