Market Sell-Off, Trump Tariff Threat, Netflix Amends WBD Offer to All-Cash 1/20/26

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David Faber (0:57)

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

Good Tuesday morning, welcome to Squawk on the Street. I'm David Faber with Jim Cramer. We're live from Post 9 at the New York Stock Exchange. Carl has the morning off. Let's give you a look at futures as we get ready for the first trading day of a shortened week, of course. There you see, we are going to be down and down sharply. And no surprise, of course, that is where we will begin our roadmap this morning with those fears that the sell America trade is back on. This, as President Trump ratchets up the rhetoric involving Greenland threatening massive tariffs on Europe. Plus the battle for Warner Bros. Discovery. Once again, Netflix amends that offer as we knew it would. We've also got the preliminary proxy from Warner Bros. Discovery. We will get into it deeply. And a lot of the headlines as well, of course, coming out of Davos, Switzerland, where world leaders and top CEOs are all together. Plenty to talk about there. Let's talk about stocks right here with Jim Cramer, of course, as we look at futures that are going to be down sharply this morning. What are your thoughts?

Jim Cramer (2:12)

Well, I think that we're jarred because a lot of people felt that this part of the presidency was over. I think that there's a belief, David, that there's a bit of an erratic behavior that makes us feel that we want to maybe not be committed to more buying up of American stocks for the moment. Now, I want to point out, we can really overdo this.

David Faber (2:39)

We can overdo what? What does that mean?

Jim Cramer (2:40)

Okay, the press was really talking about this is the number one trade partner, and they also can pull their treasuries out.

David Faber (2:45)

Europe is the number one trade partner, yes.

Jim Cramer (2:46)

And my problem with that is that the market's overbought. We're up a lot. But in a few days, let's say the president comes on with Joe tomorrow and says, you know what? Look, you have to understand, I'm in a deal-making mode. Then everything you sold or everything you passed on is going to make you feel like it don't. And the president has been known to look at the averages and say, you know what? Maybe I overdid it, a la April. So the papers make you feel like you definitely wish that we were in Norway, perhaps, and just be at the center of it and take a real feel for it. Instead, we're in America, we read the papers, and we say, oh my god, oh my god, oh my god.

SPEAKER_2 (3:24)

No!

Jim Cramer (3:25)

No. Let's just say we're overbought, let it come in, and then look for opportunities. Because, David, it's no different from any other day, okay? And we all freaked out in April, and those who didn't come back in after a couple of days really missed out on opportunity.

David Faber (3:40)

And well, it's funny, because the Treasury Secretary is saying something not dissimilar in a way from Davos. Take a listen in terms of his views on escalation.

Scott Bessent (3:51)

What I do want to say is, same thing that I said after Liberation Day on April 2nd, everyone take a deep breath, do not escalate, do not escalate, and President Trump has a strategy here, hear him out, and then everything will be fine.

David Faber (4:10)

I mean, all right, hear him out and everything will be fine. There is obviously a real concern about the tariffs, 10% going to as much as 25% in June if we don't get Greenland.

Jim Cramer (4:22)

Right, Greenland is unclear exactly what getting it means. They just had gotten that Nobel Prize, David.

David Faber (4:28)