Markets and Fed Decision Week, UAW Strike Day 4, Apple iPhone 15 Demand in China 9/18/23

SPEAKER_1 (0:00)

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David Faber (0:31)

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

Carl Quintanilla (0:36)

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. Stocks kicking off the week, mostly in the red with plenty to monitor. A Fed decision this week, the auto strike enters day four, IPO's on deck, oil near 92, another fresh year to date high. Our roadmap begins though with the big week ahead for investors, the Fed's next decision front and center. We're gonna talk to Treasury Secretary Yellen later this morning.

David Faber (1:01)

And auto strikes day four with both sides digging in the UAW, rejecting the latest wage hike proposals, while both Ford and GM announce temporary layoffs due to the ongoing walkout. Plus Apple reportedly seeing strong iPhone 15 demand in China and Tim Cook says, the Vision Pro remains on track.

Carl Quintanilla (1:22)

Let's begin with the markets as we do kick off a new week. Jim, we didn't get to check in with you on Friday.

Any degradation, do you think, in this idea of a soft landing? Even the Journal today sort of takes a look at how it gets a little tougher from here.

Jim Cramer (1:35)

Well, I do think that this auto strike is potential to be very disruptive. I think that oil clearly, to me, is headed to 100 before it goes lower. That's negative.

The higher interest rates are starting to bite. There was a really interesting call for Lennar, where Stuart Miller is the executive chairman last week. He was talking about the idea that the buyer is getting used to the idea that they have to pay more. That's the embedded inflation that J-PAL most fears. So I don't think it's such a great week so far.

Setting up is a bad week.

David Faber (2:13)

It is.

Yeah, it hasn't even begun yet. Well, are you getting a little ahead of yourself?

Jim Cramer (2:18)

Well, I think I was asked to project as opposed to reflect.

I don't think I was asked to talk about... I mean, yeah, I did.

David Faber (2:27)

Well, what do we need to be here for if you've already told us what's going to happen?

Jim Cramer (2:30)

Well, nobody says you have to be here. You can leave. I don't care.

David Faber (2:33)

Would you really not care?

Jim Cramer (2:35)

No, I would actually moan the difference. Oh, okay.

David Faber (2:38)

Let's see. That's a nice way to start the week.

Jim Cramer (2:40)

Yeah, I would.

David Faber (2:40)

I would moan the difference. A little love.

Jim Cramer (2:42)

Look, I just think that there's... I'm talking about a gauntlet that the Fed has to run, and the Fed may feel that it's terrific, and then I read through some of the things that the UAW wants, and I think, well, okay, that's a big part.

You know, a lot of employees.

David Faber (2:57)

Yes.

Jim Cramer (2:58)

And if you looked at what they're asking for, and you're J-PAL, you would say, okay, game over. I failed.

Because the hikes that he's talking about, that Sean Fame wants are radical.

David Faber (3:11)

Are they radical 40% over whatever time period that is is radical?

Jim Cramer (3:14)

You visited a plant, a Tesla plant. I did in Austin, Texas. Tesla in 2027, workers will be paid the labor cost per vehicle. That's really important. Yes. 1,625.

UAW proposal for right now is 3,219.

So how do you be competitive if you're twice expensive per vehicle?

David Faber (3:35)

It's not easy. It's not easy.

Jim Cramer (3:38)

It's not easy, Carl. There's a sage-like answer.

David Faber (3:41)

But it wasn't easy going in. I mean, we've talked about the fact that Tesla has a higher margin, something that Musk has been willing to sacrifice in terms of market share if he has to by cutting price because he has that ability to do it.

And this won't make it any easier for them to compete. No, no doubt. At what point does he have to start paying his workers more money, or is that not something that he has to worry about?