Live from CNBC’s CEO Council Summit, Apple & Broadcom Chip Deal, EY CEO Carmine Di Sibio 5/23/23

SPEAKER_1 (0:00)

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Jim Cramer (0:31)

It's Jim Cramer here. You're listening to the opening bell of CNBC Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:38)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber. We are live at CNBC's inaugural CEO Council Summit in Santa Barbara, California. Take a look at futures here as the market juggles a bunch of pieces of news today.

These debt ceiling talks, a little more optimism, not a lot of news. Global PMI is rolling in. Yields definitely elevated that long bond back to four for the first time since March. Our roadmap begins with DC's race for that debt deal. Speaker McCarthy says talks were, quote, productive as Wall Street watches for any signs of negotiation progress.

David Faber (1:11)

Plus inflation headwinds, Lowe's joining Home Depot warning about waning demand for home improvement goods as consumers cut back on discretionary spending. And AI's labor and economic impact, CEO of EY is going to join us later this hour to discuss.

Carl Quintanilla (1:28)

As we mentioned, we're live from CNBC's first CEO Council Summit in California, where we're going to bring you exclusive interviews and insight from some of the country's biggest executives. They're going to tackle the debate over the nation's finances, AI, the revolution there, of course, the dangerous escalation in US-China tensions.

Got a nice little set here. We'll be moving around. Gorgeous view of the ocean.

Jim Cramer (1:48)

Well, look, I'll just tell you, I don't want to be a buzzkill, but everybody keeps saying we're waiting for when the consumer is going to get weaker.

Other than when it comes to airplane traffic, the consumer's weaker everywhere, everywhere. I mean, they're spending less on cars, they're spending less at Home Depot. Now, we know they're spending less on Lowe's. Yes, okay, so they spend equal amount at Dick's, but BJ's, they spend a lot less.

David, I'm not getting a picture of the consumer buying anything. Remember, they were buying clothes, they were buying software, they were buying hard, then soft. Now, yes, it's true, we had Kirby on United Air and the planes are full, but if that's it, what kind of economy are we going toward?

David Faber (2:29)

I would go back at you and say, well, Jim, what kind of economy are we going toward?

Jim Cramer (2:33)

Well, it was rhetorical, so thank you.

David Faber (2:34)

You're welcome.

Jim Cramer (2:35)

It's good to see that even though we're out here in somewhere, in Santa Barbara, he hasn't changed his ability to be...

David Faber (2:41)

No, nothing changes, except that we're even closer than usual. We're like literally rubbing elbows here.

Jim Cramer (2:47)

I'm very uncomfortable.

David Faber (2:48)

We may move to our other set that was set up and beautiful, but the ocean mist here apparently is quite heavy.

Jim Cramer (2:54)

I know the people at home really care about that.

David Faber (2:56)

I like to inform the viewers to everything that's going on. So, all right, continue and tell me what's going on with the economy going to look like with a consumer that's only spending on air travel.

Jim Cramer (3:04)

Okay, so you go to... You look at the lows quarter, and I think Marvin Ellison's doing a great job, and you say, okay, well, the do-it-yourselfers really not doing that well. Then you go to Home Depot and they say the do-it-yourselfers not doing that well. Both say the professionals not that strong, not that weak. And Carl, okay, so we know that they're not buying clothes. We know that they're not fixing up their houses. I think they're tapped out except for the fact that this is that long on money, short on time. They're still going places. Now, one of the things that we do know is that airplane tickets are up, and the Fed hates that. It's right in the CPI.

It's just such a sore point. That and rent, which is very hard to bring down because you can't build any more homes.

There's just only so many that are buying them. They're building them only if you want one. The old days, they put them up everywhere.