Markets Brace for Jobs Friday, Nvidia and the DOJ, Mark Cuban: Harris is "Pro-business" 9/5/24

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. Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at post nine of the New York Stock Exchange. David Faber has the morning off. Pre-market's a bit soggy as the focus shifts to the macro. ADP with a big miss, first sub 100 print in nearly three years. Yields lower across the board as the odds of a half point Fed cut gets some more traction. A roadmap begins with stocks looking to stabilize following that rough start to September. Nvidia is under a bit of pressure again. The company denying reports that it received that subpoena from DOJ. The vice president proposing a 28% tax on long-term capital gains, lower than the president's 40 Mark Cuban calls in to Squawk today saying Harris is quote pro business. And the steel deal in danger. The Biden White House reportedly preparing to block Nippon Steel's deal for US Steel. First though, let's get to the markets this morning and ADP and productivity, Jim, and unit labor costs a lot today.

Jim Cramer (1:02)

I think that there's a whole new thesis that's going on in the market. It started actually with Nvidia's conference call, and it shouldn't have, which is that when we now see any weak numbers, we sell the semis and we sell tech. I have Caterpillar on tonight. Caterpillar actually holds up better than the semis. I saw Nvidia, I saw Broadcom, which reports tonight, dropped very quickly when we had that weak ADP. And how this is happening is beyond me because these companies trade on inventory. They don't trade on GDP. But it doesn't matter. Right now, if you have something negative about the economy, it goes right to the semis and to computing in general.

Carl Quintanilla (1:41)

But you've been writing and talking all week about buildouts in general and CapEx and infrastructure. And when you have Joltz show cycle lows for construction job openings, that says something, right?

Jim Cramer (1:54)

Oh, no. I mean, look, we're getting the right reasons to cut. If you're the Fed, I don't know about a double cut, about 50 I do think that there is a growing perception that Intel is doing so poorly. That is going to do. They spoke yesterday to Fireside Chat. They're cutting back. They're cutting back cap spinning. Maybe that's the reason why we're seeing ASML, besides just worry about China downgraded today from top picket Morgan Stanley. And of course, they place it with arm, which does the opposite. They're a taker, not a giver when it comes to some upside. And I do think that what's happened here is that people are beginning to recognize Intel is a giant problem for the economy and for the US government.

Carl Quintanilla (2:34)

So when you couple that and Dollar Tree earnings and this last BLS and the revisions and PMI and now today's data, why don't you think 50 is appropriate?

Jim Cramer (2:43)

Well, by the way, well, Salantis could piece the journal saying that Chrysler are doing so poorly. The only reason I don't see you do 50 is because Powell's a measured person. He can do 25 and 25 and 25 50 implies panic. 50 implies that you don't have any good news, which there's still some good news. And I think that 50 is just too much. It just says, you know what, we took it way too high. And that would be the narrative. Wow, they screwed up. They took it way too high. The only way to really win if you're Powell is to say, listen, we've got it under control. And 25 means, cut 25 means under control.

Carl Quintanilla (3:16)

But isn't that, we've got it under control, what got them into trouble when things were going the other way?

Jim Cramer (3:22)

Well, I think that they didn't be a culprit, which you gotta appreciate. I do think that the number we see tomorrow will make everything much easier. And anything you say today can obviously be countermanded, maybe by tomorrow. Maybe he comments on Nvidia. Just kidding. But it's become, as I said in my tweet this morning, I mean, like, well, how's Nvidia doing? I mean, Nvidia is now, I thought that yesterday would have peaked because it seemed like that for a moment we were focused on other things. But no, when you see it on the ticker in the morning and you see that it just trades down every piece of weak news, you realize that it's become memed, it's almost memed.

It's stocks like GameStop right now. She says it's undeserving. It's a real company, a billion dollar company.