Markets After Tech's Rough Week, Big Earnings Calendar, Tesla Price Cuts 4/22/24

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 Monday 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. Futures pretty solid as some Mideast tensions ease.

Oil falls below 83 The House passes some foreign aid and we get set for a third of S&P market cap to report earnings this week.

Our ROBAP is going to begin with stocks aiming to rebound following the S&P's worst week of the year. Investors gearing up for that flood of earnings. Headlined by Big Cap Tech.

David Faber (0:32)

Speaking of tech, Tesla is slashing the prices on several of its vehicles. That's of course hoping to boost sales. The stock is on pace for what would be its seventh straight day of losses. It's down 20% in this month alone.

And the House passing legislation over the weekend that could lead to a ban of TikTok in the United States.

Carl Quintanilla (0:52)

Let's begin with the markets after last week's tech sell-off. You now have 29 of the Nasdaq 100 components down 20% or more below their 52-week highs. More than three quarters of the NDX falling at least 10% from such highs. Jim, Friday, the equal weight S&P relative to the cap weight, best day in a few years.

Jim Cramer (1:11)

Yeah, you know, we saw something really interesting on Friday, which was the source, the Supermicro down 25%.

That is an analog to video and media has got much higher intellectual property. That's because the announcement is quarters coming in and this is for the first time. Seven out of eight quarters, they have said, hey, we're doing better than expected. They didn't do that. It's kind of very simple to what happened to Broadcom. Broadcom on March 8th said the same thing. They did not pre-announce. You go back to that period, David, the unemployment number that Friday, that's the first time the pal got it wrong, big wrong, and interest rates shot up. I think this move is largely interest rates have moved. It could be reversed by earnings, but only if the tenure stays at 4, 6, 4, 7, and I don't know if that's going to happen.

I mean, I think it's bonds. I think that we all think it's stopped, but the high multiple stuff is what's going down, and that's controlled by bonds.

David Faber (2:08)

Right, you just think as long as we, what's the level? As long as we say above 4.5, 4.6.

Jim Cramer (2:13)

We can't go above 4.7. If we go above 4.7, then every stock you see right there, no matter what the report is, is going to be hurt.

And that's, if you look at NVIDIA, that is obviously the poster board for the decline. And Carl, NVIDIA is the king of AI, so what this really is is revolt against AI, because the stocks, you know, Amazon's not being felt that badly, and Alphabet's not being felt that badly, and other users of NVIDIA, but NVIDIA is the metaphor for a company that got too high.

Carl Quintanilla (2:44)

Worst day on Friday since 2020, we talked about the Barron's cover, Jim, on Friday, and how they argue that competition's on the way.

Jim Cramer (2:52)

Yes, again, you go back to March 8th, that was the day where the stock opened up 5%, it was a gap up, and then finished down 5%, which is a terrible island reversal technically, but that was the top of NVIDIA. And the top came when PAL lost control of the narrative, because PAL had been saying, look, don't worry, employment's going to show some slowdown, instead we got an acceleration point, there's 100,000 added more that Friday. And that was the peak, if you look at that peak, it actually came a day before, because what happened is it didn't close there, and that's by closing prices. But that's been the story, it's interest rates.

I wish I could tell you that there's more to it, but interest rates are what's in control here.

Carl Quintanilla (3:33)

Although this UBS downgrade of what they're calling now the Big Six, in terms of, in Gollum's view, is about earnings.

Jim Cramer (3:41)

Well, that was hapless. I mean, thank you for nothing. These stocks have had a major decline, and what you have to try to do is figure out whether they bounce and go back down, or whether they just go back down. Now, if you looked at Nvidia, David, at 6 o'clock it was up 17 That would have been the kiss of death. You cannot have these stocks open up big. We haven't had the washout.