Markets Party Like It's 2021, WBD Tumbles, Waiting for Disney 11/8/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Carl Quintanilla (0:31)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC's Squawk on the Street.

Good Wednesday 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 steady here, the Dow up seven days in a row. Longest streak since July, another wave of earnings in FedSpeak today, including Fed Chair Powell this hour. Oil approaching 75, lowest since June. Our roadmap begins with stocks trying to build on this rally, S&P and Nasdaq are riding their longest daily windstreaks since 2021

David Faber (1:04)

Speaking of rallies, Microsoft shares closing at another record high that follows fresh optimism about growth from a key partner in its efforts in AI.

And we're continuing to keep an eye on the housing sector. Mortgage rates are retreating. In fact, they posted their biggest one week drop in over a year.

Carl Quintanilla (1:24)

Speaking of which, let's get to the markets extending their windstreak. Jim, a lot of that's going to circulate around a 30-year back to 7.6.

Jim Cramer (1:30)

Yeah, well, that allows you to be able to buy a lot of things. I mean, that's what happened yesterday. It was a data dog rally. Data dog actually said something that was really key, which is said the optimization is declining. Okay, that's all enterprise software speak, but basically said there was a lull in orders.

Orders are back. That reverberated service now to Salesforce, to Amazon, to Alphabet, and to Microsoft. You see, at this little data dog, in a $33 billion company, I know that used in the old days, David, that was big.

But what they're saying is there had been a problem, and we knew there was a problem with enterprise software, with DevSecOps, so to speak. That's not BlackOps, that's DevSecOps. That apparently is over, and that's allowing a lot of companies to breathe, because that had been the theme of the quarter until yesterday.

David Faber (2:25)

See, we can take that much of a narrative from data dogs?

Jim Cramer (2:28)

Okay, so that's really important. That's where the bonds come in.

If the bonds weren't going the way of the bulls, I think it would have been no pin action. We would knock the one pin and nothing else happened. But when you have the bonds going, people are willing to extrapolate all sorts of things. And that's what happened yesterday.

David Faber (2:47)

Right, so you have that momentum being created.

Jim Cramer (2:49)

Yeah, the bonds allow you to dream, you know?

David Faber (2:52)

Allow to dream.

Jim Cramer (2:53)

Some people dream dreams of just data dog. I dream dreams of bigger things.

David Faber (2:56)

You do, I know.

Jim Cramer (2:57)

Yes, I do. Data dog was downgraded by some sort of left wing criminal.

Carl Quintanilla (3:00)

Mizzouho today does cut to neutral. Yeah.

Jim Cramer (3:02)

Yeah, now when I look at what you're cutting to neutral a company, that is at the absolute heart of a lot of both security and observability is the word that people use of your dashboard. And there are a couple of companies that do that, obviously.

David, when we look at enterprise software, you and I both know that there's like a dozen companies ready to come public right now, including Databricks, which is 43 billion.

And these are all companies that do the same thing, which is they allow you to observe how AI is doing within your organization. And I don't think there's anything more important right now. Even Apple right now, front and center. Morgan Stanley's saying, don't worry about our AI. But when you look at Amazon Web Services, Google Cloud, which is trying to recover from a lot of big publicity, we don't know why. And when you look at Azure, it's all about observability. Are people really using it? And how's it be used? And it's very impressive.

David Faber (3:56)

Right. But the use of AI, the measurement tools that provides the data, these are what many of these enterprise software companies are focused on.

Jim Cramer (4:08)

Yes.

David Faber (4:08)

Or enabling you to respond even more quickly.

Jim Cramer (4:12)

Right.

David Faber (4:12)

Whether it's to your customers or to your employees, I guess.