Market Reaction to CPI, Nvidia's China Challenge, Musk Threatens Apple 8/12/25

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Carl Quintanilla (0:47)

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. Tuesday 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. Stocks taking July CPI in stride as year on year headline comes in a 10th light. Year on year core is the highest since February at 3.1. We'll get to the internals as some of the short term rates drop. Roadmap begins with the chips and trade. China reportedly urging local companies not to use Nvidia's H20s despite the president extending tariffs on Chinese goods and the duration period on that reprieve another 90 days.

David Faber (1:28)

Also ahead, Elon Musk threatening to take legal action against Apple over its App Store, how its App Store ranks apps, particularly as you might imagine, Squawk. Plus, circles out with his first quarterly results as public company. That includes a revenue beat. Stock up now more than 450 percent. It just went public in June.

Carl Quintanilla (1:48)

Let's begin with our reaction to July CPI, Jim. Working through some of the numbers, apparel, footwear, airfare, some of the culprits this month.

Jim Cramer (1:56)

Right. I mean, I always read these and I think, okay, I've learned to question everything since the Labor Department. We got everything. It's jump ball and everything. And I just think that if you shop at the wrong place, you're going to pay more. I mean, like first is furniture up, Wayfair. Go to Wayfair, go to IKEA. Don't just eat the meatballs, David. Go to IKEA. You can do things to minimize this. And I think that this is why I keep saying it has to be outsourced. Because I don't think these people seem to know that if you go to the wrong place, it's expensive. If you go to the right place, it's not. But it doesn't seem to matter. And I think it's therefore somewhat of an irrelevant number. We all trade off it. But it doesn't really matter, David. I think that we all are starting to come around to the idea that all these numbers need to be rethought.

David Faber (2:41)

What do you mean when you say that? I mean, I would think this number was important. And obviously, the Fed continues to look for real impacts in terms of prices from tariffs, and it's not happening.

Jim Cramer (2:49)

It's from the Bureau of Labor Statistics. So I mean, like, hey, goodbye.

David Faber (2:55)

Because you're not going to believe them any longer as a result of the change in leadership there?

Jim Cramer (2:58)

No, I'm not. I'm not going to believe anything.

David Faber (3:00)

Well, that's not good. How are you supposed to navigate macroeconomics and the markets?

Jim Cramer (3:05)

I'm looking at companies. I'm not going to have people buy and sell based on that nonsense. No, buy and sell because the company is doing better or worse. Let's say I want to buy Starbucks, but I look at the BLS and it says, jeez, I don't know, food at home is off. Should I not buy Starbucks? That's the kind of thing that's happening to our audience. They're like saying, well, I guess they don't mean to buy Starbucks as a BLS.

David Faber (3:27)

Let's rewind for a second. So the fact that the president got rid of the person running the BLS mattered to you?

Jim Cramer (3:33)

Well, who's running it right now?

David Faber (3:36)

He's got somebody in mind now, right?

Carl Quintanilla (3:37)

We're going to talk about AJ and Tony, yes.

Jim Cramer (3:39)

Who's running it right now? Chachi Petey? Who's running it?