Markets’ Record Run “Too Far, Too Fast”?, AI Risks and Rules, Apple's Rotten Q1 3/27/24

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 Wednesday 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 has the morning off. Bulls will try again to snap this losing streak, now extended to three days. Tons of movers in pharma, autos, retail and media. Don't forget Fed Governor Waller after the bill tonight. A roadmap begins with stocks looking to bounce after that late day decline for the S&P and NASDAQ yesterday. China courting US business leaders, President Xi, telling the CEOs of Chubb, Blackstone, Qualcomm and others that China's economy has not peaked and its growth prospects remain bright.

And Apple's not so good year. JPM pointing to some rising concerns of an iPhone slowdown in China.

Let's begin though with the markets. The Delivering Alpha Investor Survey of leading institutional investors, strategists and CNBC contributors focuses on their outlooks and strategies for Q2 and beyond. 61% believe the market has run too far, too fast. I haven't really heard you say that yet, Jim.

Jim Cramer (1:07)

No, look, I do care about speculation and we've had a couple of speculative stocks. Just like him or like him, President Trump's stock is a little confusing to people, confusing, speculative.

Carl Quintanilla (1:20)

Today you said it's overvalued.

Jim Cramer (1:22)

Exactly, I can't find a way to value it. Reddit, that was a little too much reminiscent of GameStop, which did not have a good quarter. But I'm calling for broadening out. What I'm seeing is that it's not too far, too fast. It's now the banks. I mean, for instance, we see some downwards of banks because the stocks have moved too much. It's the industrials.

The rails are vulnerable because we'll see from CSX, because they've moved so much. I like, health care has been an extraordinary storm. Look at the way Merck burst out on what could be actually a boutique drug, but very, very important. So I don't see it like that. I think that what you're seeing is the mega caps are donors.

And donors to the point, and we'll talk about Apple, that says to me there wasn't a move too far, too fast, but the megas are distributed, and they're distributing right to the rest of the market, which I regard very bullish.

Carl Quintanilla (2:17)

Yeah, your point on Apple is well understood. We'll get to some of the negative commentary on Tesla today. Your, your, your, your, Apple will be a big point of discussion for your club meeting today, yeah?

Jim Cramer (2:27)

Yes. You know, look, I'm, I'm very concerned that people don't understand the trajectory of an Apple. It has something good, and then it has a decline. The decline can be precipitous, and then it has something good. I mean, if they came out and said, look, India and Brazil are gonna be very, very strong, they can offset the 500,000 phones that they didn't sell, or a million phones. Then I think people will get very excited.

We know that some of the mega caps have some good news. I see Salesforce making an enterprise, not a true mega cap, enterprise move that I think is very, very important.

I like what Amazon's doing, but I am going to speak to Jeff Marks, my partner, and say, if Google doesn't get that announcement with Apple that drove the stock up big, you gotta get out, and you have to get out because people are going to ChatGPT and Claude 3 to do what used to be elementary search. I don't use, I've cut the number of Google searches in half. Now that doesn't, that's anecdotal, but it's just so much easier to go to chat with Claude.

Carl Quintanilla (3:27)

Now you've been pretty clear this week, at least.

Jim Cramer (3:28)

Claude is really-

Carl Quintanilla (3:29)

That you're looking for excuses to get out.

Jim Cramer (3:32)

Well, if you Google Claude about me, it's hilarious. It's hilarious, and I'm like, wow, they nailed me. You can Google, I mean, Claude's fun. A lot of younger people just get a kick out of the way Claude responds to things. You don't get a kick out of the way Google search. You just have to go through a lot of ads.

Google is not an ascendant here.

Carl Quintanilla (3:53)

It's interesting, Axios has a report today, and they talk about the trough of disillusionment in AI, meaning every technology goes through this period where there's the big promise, then the early sort of reality gut check, and some companies are finding there aren't a lot of applications they can roll out to clients yet, for example.