Markets After the Sell-off, DOJ Antitrust Chief Kanter on Landmark Google Ruling 8/6/24

Carl Quintanilla (0:00)

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 (0:09)

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 Quintanilla is in Paris, of course, at the Olympics. Let's give you a look at futures. We get started with trading one half hour from now. Very different picture this morning than it was 24 hours ago, but frankly, a bit of a muted rally at this point. Our roadmap does begin, of course, as you might expect with the markets after that major sell-off yesterday. Stocks are looking to bounce back after their worst day since September 2022 Caterpillar doing its part to aid the market rebound. Those shares are up sharply on earnings that came in above analyst consensus. Plus a federal judge rules Google broke antitrust law that it is an illegal monopoly when it talks about online search. The Justice Department's antitrust chief, Jonathan Kanter, is going to join us live in a first on CNBC just a few moments from now. But let's start with the markets, of course, after that global sell-off turned to Jim. Again, we are looking up. Japan came back dramatically, though not making up for all of the losses. And yet, there still is sort of a sense, I think, of unease, I think. What I'm hearing is, there's still a sense of unease amongst investors, as you might expect, given all the cross-currents we've been hearing lately.

Jim Cramer (1:29)

Absolutely. I mean, in favor of a bottom is the fact that I saw a lot of TV trucks out there. That tends to be the local news tends to get it wrong. Against it, and why I think things go lower, is that frankly, other than the so-called Japan carry trade, there seem to be a lot of hedge funds on the wrong side of things. And yet, the confusion comes from the fact that almost every quarter that's been reported in the last 24 hours is very strong. So because there's so much confusion, confusion does not breed buying. Confusion breeds selling. So I am therefore concerned that we either go back again, or that there is what I would say, a mistrust of certain stocks that have been loved. And a race to the sidelines. There's been a hype race to the sidelines.

David Faber (2:15)

Yeah, you think so? I mean, Megacap Tech came back during the session yesterday, of course, then powering sort of the broader market off of its lows. We still did end down more than 3% on the S&P. It's the worst day we've seen since 22

Jim Cramer (2:30)

Yeah, I mean, look, David Costin comes out and he says, look, he's Goldman Sachs, that if you buy historically, it does work. But also, you understand, we were, I was working with the people from, who drew my oscillator market edge, and it has not been up three days later, when you have this kind of, not that oversold and big decline. It has been down, in other words, we're not done, the sell off. And I could argue that even though the earnings were great for everything that's reported, I think that it's okay to believe that we haven't seen the bottom.

David Faber (3:01)

Yeah, well, we are gonna talk about some of those earnings, whether it be Palantir, Uber, Caterpillar, I mentioned. Those were three great earnings. All, all strong earnings.

Jim Cramer (3:09)

And then you could throw in Lumen, and you could actually say that Lucy got the Lifeline. Simon Properties was very good. There are so much that was good. But, David, this is not a micro sell-off. All those things mean nothing. This is just about S&P and NASDAQ. Big hedge funds that would never even know the difference between an Uber and Airbnb.

David Faber (3:31)

That's where we're stuck with. Although, again, just to come back, I said this numerous times yesterday in the midst of the worst of the sell-off. There's no issues in credit at all.

Equity was fine. Right. These are not the, you know, this is more of a typical kind of a swoon. And frankly, we've seen many, many times, even in this month.

Jim Cramer (3:52)

But everybody tends to look for recession. It's very tiresome, frankly. It's like, wow, we have a recession with seven great companies reporting last night all doing great things. I mean, Simon Property is the largest law company. Wouldn't they know something? Yes, here's what they know. Business is stronger than expected. I had a Tanger last night. That's the largest outlet mall. Business is stronger than expected. We may have some companies that are weak and expected, but I don't want to go against Caterpillar when Caterpillar is stronger.