Markets Rally, Apple Beats, Jobs Jump and Regional Banks Rebound 5/5/23

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:07)

Good Friday 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 try to assemble some green arrows. Financial's getting a bounce, a key upgrade.

And then of course, April jobs comes in ahead of expectations, 253,000, with wage growth a bit hot. It's the 13th consecutive month of better than expected job growth. Our roadmap begins with the jobs number coming in, along with that surge in wage growth.

David Faber (0:31)

On the earnings front, well, we've got Apple's results and they did exceed what most of the analysts following the company had been forecasting. Find out what Tim Cook told CNBC about the quarter.

Plus, wrapping up another rough week for regional banks. This of course, emits worries about many of those banks. Health, the number of the beaten down names though, well, they look to recoup some of those losses. You probably saw it in the last few minutes. A lot of them up double digits.

Jim Cramer (0:57)

Yeah, I like that, comarica.

Carl Quintanilla (0:59)

We'll begin with the April jobs number though, as we said, 253 Street was looking for 180 The revisions though, Jim, kind of make the last couple months a wash.

Jim Cramer (1:09)

Yeah, I thought that was interesting because, well, first of all, we're all used to numbers being accurate. So it's, in any other business, we would think you run them through, if you had Salesforce, you had ServiceNow, you would never get this kind of thing. So you have to look at the revisions first, and then you realize, wait a second, so the economy may not be that hot. But then we come back to the same, these same areas keep dogging us. We don't have enough people working health care because so many were tired. So you're having people who are finally trained, they're coming, they're getting jobs. And then the thing that people just can't stop, they can't stop with leisure and hospitality. We're almost back to where we were in 2019 Until we get to that level, you're gonna keep seeing hiring. The ones that I find most shocking is financial activities. How the heck could there be real estate? I thought real estate was dead man walking.

Not all of it. And then mining. Wasn't mining supposed to go away?

Really, people said that mining was bad. I mean, you might wanna deal with the actual, like when you deal with the earth movers, mine has been weak. So you've got this, they're hiring them all over the place.

There's just a lot of hiring.

David Faber (2:19)

There seems to be. Unemployment stays at what, three, four, right Carl?

Carl Quintanilla (2:23)

That's right, yeah, three, four, one, two, three.

Jim Cramer (2:25)

I look at this and if it weren't for the fact that they're destroying the regional banks, which is wipe out, today, by the way, what Morgan Stanley makes a stand? Oh, JP Morgan. This piece is the most important piece. JP Morgan, US mid and small cap banks are making a stand. Otherwise, this just says, pal is dead right.

This is like, see?

David Faber (2:41)

So this says, maybe what, keep going? Yeah, this says keep going. Not the pause, necessarily.

Jim Cramer (2:48)

This says no pause.

David Faber (2:49)

And this says, be careful.

Jim Cramer (2:50)

Or else we're gonna wipe out most of the most of the smaller banks in the country.

And I don't think anyone disagrees with that. The action that we saw yesterday in the stocks that are pictured was basically, JP Morgan, here you come. Here's the next four that you're gonna buy. Next five, next six.

David Faber (3:06)

Unless we see a different approach from the government in the sense of a willingness to entertain that word that they don't want to hear, which is bailout, because it wouldn't necessarily be, but something that comes to the aid of these banks in a more significant way, perhaps even some sort of equity cushion. I don't know.

Jim Cramer (3:22)

But the country, I think that there's a group of people, the great middle of this country, who never forgave the bailout, never forgave it. And that's why no one ever uses the term bailout, because I think that that was the ultimate have-have-not period. The rich fat cats got to keep their jobs, and I lost my job.

David Faber (3:40)

It is a highly charged word, and one that I really feel, as I've reported, certainly on the fate of First Republic, but even the others is something the administration, along with Treasury Fed, just want to avoid entirely.