Markets and the Sell-Off: Where to Put Your Money Now 3/11/25

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

Jim Cramer (1:05)

I would not jump back into the Magnificent 7, because as of tonight, there is no Magnificent 7 Came up with that name, scrapping it right now. No moniker fits the two or three that remain viable. And I'm not going to put, and there's nothing magnificent about Tesla or NVIDIA.

Carl Quintanilla (1:20)

That is Jim on Mad Money last night, talking about what he used to call the Magnificent 7

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. David Faber is on assignment. After the drubbing yesterday, futures slightly red here. Several big corporates lower their earnings guidance. Delta, Southwest, American, Verizon, Dick Sporting Goods. But let's get right to the markets today. After the sell off, the worst day for the S&P and the Dow since December, worst for the Nasdaq since 2022 S&P is now in a 9% drawdown. Jim, why did you choose last night to retire that phrase?

Jim Cramer (1:54)

Okay, well, first of all, I want to be constructive here because everybody's giving up. I noticed that the airlines that have said things are okay, like United are bouncing, Delta's not that bad. I think this is a very crucial day. And I just want to say what I was saying was historical and empirical, not hysterical and crazy. I was looking at the Magnificent 7 from when Michael Hartnett created it from Bank of America, and he did it in May of 2023 And what's happened is that we no longer have, the top seven were Magnificent 7 But now we have Apple, Microsoft, Nvidia, Amazon, and Alphabet, and then suddenly it's Berkshire Hathaway, it's Broadcom, it's Eli Lilly, and then it's Tesla. So how are we going to have this? And more importantly, these stocks were just about what was big market cap, and it was about what happened, I'm talking to Leslie Picker yesterday, this is the time of the banking crisis, two years ago. And that's when this group asserted itself, and they were responsible for all the gains. And that's over. It's hard to be Magnificent 7 when you're not in the top 7 We could call it the OK 10, and we could have Yule Brenner, Chris Adams, that could be Amazon, because the Amazon is strong. Vin Tanner, that could be Metta, that's Steve McQueen obviously, was a great charitable guy, covered his death when I was in LA. That Metta, they're reliant on advertising, but it's good. And then after that, I mean, Chico, I'm being very visceral about this, and not being joking, it was Magnificent 7, it was about the movie, and that's NVIDIA, because NVIDIA is doing well, but nobody seems to care. That was horse buckles. Then after that, Microsoft, they missed the quarter three times. Apple, they're leaning on it very, very badly, particularly because of the Siri stuff, that is negative.

Alphabet, I think, is going to miss the quarter, because I no longer think that Google is as effective, versus GROK, versus Chad GPT. GROK, by the way, awesome. And then Tesla, it's not even the time, Tesla's number 10 And by the way, Walmart, at one point, was flirting with number 10, knocking Tesla out. So how are we supposed to go, if we go back in time to how this was created, they were the top seven. There's just not enough juice. They had nothing to do with each other. That's been revealed.

Carl Quintanilla (4:08)

But Jim, yesterday was about a lot more than seven stocks. I mean, we had 160 S&P names down 4%.