Jobs Report Sends Stocks to Record Highs, Trump "One Big Beautiful Bill" Vote, Chip Designers and China 7/3/25

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Carl Quintanilla (1:32)

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.

David Faber (1:47)

Good Thursday morning, welcome to Squawk on the Street. I'm David Faber. He is still Jim Cramer, and we are live from Postland at the New York Stock Exchange. Carl has the morning off. Let's give you a look at stocks, of course. We're closing early today, 1 p.m. close. That's ahead, of course, of the 4th of July holiday weekend. Bond markets will close an hour after that. And there you see, we are headed for a slightly higher open, of course, coming off of those jobs numbers. And that's where our roadmap begins this morning. Futures are getting a lift on better-than-expected June jobs, non-farm payrolls up 147,000, and the unemployment rate falling by 4.1%.

Plus, we are waiting for that final vote on President Trump's so-called big, beautiful bill expected to pass. That's right, pass sometime today. And we also have cooling trade tensions. The US is lifting chips software curves. That's a big deal. Design software specifically, talking synopsis, cadence design. We'll get into some of the names that are getting a boost in the early going year as a result of that. Let's start, though, with a marker reaction to this morning's jobs report, and your reaction to it.

Jim Cramer (2:56)

Well, look, I'm looking at the True Social last night. Too late should resign immediately. That's a reference to J-PAL.

David Faber (3:04)

You're talking about President Trump's most recent posts on social media, where he just continues his relentless assault on the Fed chairman, urging him to lower rates.

Jim Cramer (3:14)

True. But when you saw this, you might have thought, ooh, the president has insight about the number. And it turns out that he didn't, and this was a strong number. Now, people will turn to the fact that there was a lot of it was government hiring. The point is that it was a strong number. And I'm never one of those people who just says, look, I'm going to asterisk that. Strong number is a strong number. I don't mean to be like a wins a win, but you have to recognize that this is something that was surprising given the fact that the president seemed to be indicating that it would be a slowdown. And it calls into question, where are the layoffs other than Microsoft? Where are the AI layoffs? That's a very big issue.

David Faber (3:55)

Yeah, I want to talk about that a bit more because, as you know, I continue to be focused on that or storing the drill today. But specific to the market reaction to today's number, 147,000 as we said. And yes, I think 73,000 additions as a result of state and local governments. The federal government continues to lose employees. But overall, this is a good number, a better than expected number. The unemployment rate of 4.1%.

And generally, some of the other key-ish metrics that we follow, you know, not of concern, right? So, I mean, Andrew kept asking guests, he asked Roger Ferguson, so what is the conversation between, you know, I don't know what that looks like, but it doesn't look like we get a July rate cut, not that that was on the table. The question, I guess, is September. Although I know your admonition is coming about not talking about the Fed at all, because that's what you've been saying lately.