Mideast Tensions Effect, Tesla Falls On Deliveries, Nike Doesn't Do It 10/2/24

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.

Phil LeBeau (0:07)

Good Wednesday morning.

Carl Quintanilla (0:08)

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 are red, markets remain on edge. On alert as to how Israel will respond to our Tuesday's missile attack from Iran. Port strike is in day two. ADP stronger than expected, best print since June.

Our roadmap begins with these mid-east fears though. Geopolitical risks and the flight to safety. Traders bracing for some early October losses to continue with the open.

David Faber (0:34)

Plus Nike shares are sliding in the pre-market. The athletic gear giant pulling its full year guidance. That ahead of of course that big CEO change just a couple of weeks away. We're also keeping an eye on shares of Humana. They are down sharply. It all has to do with how many stars they're getting for their Medicare plans. That's a lot fewer big slump there in potential revenues as a result.

Carl Quintanilla (0:57)

Let's begin with futures falling, oil extending its gains in the wake of these Mideast tensions. WTI Jim, pressing on 72 almost this morning.

Jim Cramer (1:07)

Yeah, it's so strange because the Saudis came out, basically said, listen, go to 50 It's almost as if the Saudis, no friends of Iran, are saying, it doesn't really matter what happens. There's a glide. Now, the Saudis may be looking at the fact that Iran's pumping 4 million a day under President Trump. Thank you, Jeff Sonnenfeld, for this. They were pumping less than 100,000 a day. So it's almost like a Saudi saying, listen, don't worry about the price of oil, whatever you want to do against Iran.

David Faber (1:36)

You're kind of, you're not sure.

Jim Cramer (1:39)

Right, well, because I'm not privy to anything that anyone else is. I thought that with it, we're watching the world go up. The Saudis who know more about oil than pretty much anybody are saying it's going to go down $20.

David Faber (1:51)

And it had been going down. It was going down last week. It only reversed yesterday on this show as we, of course, started to outline the news from US intelligence sources that an attack by Iran was imminent. The attack occurred. It was well defended. It still remains very much unclear what the Israeli response will be. Obviously, there's a real concern about escalation in general in the region. That would seem to indicate that oil prices would remain, perhaps, a bit higher than they had been, but you throw in the Saudis talking thought. And it's kind of hard to figure, right?

Jim Cramer (2:25)

Well, look, if you're, what, maybe you're emboldened, if you're Israel, by looking at what the Saudis are saying. I don't know. There's obviously such confusion between those prices, which obviously don't reflect tremendous volume, and the Saudis, which reflect 12 million barrels a day. And I come back and say, I'm going with the Saudis, I'm not going with that price.

Carl Quintanilla (2:46)

Interesting. There is a piece, Bloomberg has got a look at the market and supply for next year. Javier Blas says if given the choice between 150 next year, he would err on the 50 side.

Jim Cramer (2:58)

Look, there is, we're not seeing, other than China, some degree, if you extrapolate the electric cars, any real demand pull here. One of the things, David, that I think is strange is that, Iran's obviously pumping 4 million a day.

David Faber (3:13)

And that's going largely to China? Where's that going, right?

Jim Cramer (3:16)

China, Russia pumping like mad.

David Faber (3:18)

Right.

Jim Cramer (3:19)

And you're going to China and Russia, and then the rest of the world is like.

David Faber (3:23)

And India too, to a certain extent.

Jim Cramer (3:24)

Oh yeah, I'm sorry, China, Russia going to India. And what I don't understand is, if there's all, away from those two countries, is there no demand? I mean, how would you have 50? What's that in the equation?

And it's certainly not the fact that there's some electric vehicles. We're going to get Ford soon. Electric vehicle is not so good. Unless people are really just saying China is making so many, that the demand for gasoline is going to plummet.

Carl Quintanilla (3:50)

We're going to watch that. The other, speaking of energy, transportation, the number we've been waiting for all week is Tesla deliveries. We might have it. Let's get to Phil LaBeau. Hey, Phil.