Moody's Cuts China Credit Outlook, Apple Rallies, Starbucks' Cold Brew: An 11-Day Losing Streak 12/5/23

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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 Squawk on the Street.

Good Tuesday 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 are adding to losses after breaking that four-day win streak. Busy morning already with bank CEOs presenting at the Goldman Conference. Ten-year now below 42

That is a three-month low. Our roadmap begins with this rally pause. Stocks are coming off their worst day in a month. Futures are pointing to a lower open.

David Faber (1:01)

Plus, China is growing debt risks. Moody's cuts the country's credit outlook to negative, citing persistent lower growth and the overhang of a property sector crisis.

And CVS shares, they're rallying this morning. The company raised its revenue guidance for 2024, also upped its quarterly dividend by nearly 10%.

Carl Quintanilla (1:20)

Let's get to the markets. Poised to extend yesterday's losses here at the Open, Jim. You've been pretty vocal about the expected shop you think's coming this month.

Jim Cramer (1:28)

Look, I mean, I think that we've been down for a couple of days. We've got a couple of stocks that has some good news. J&J, big analyst meetings, everyone can see. CVS wasn't bad. I know that Eli Lilly, they've now announced a set bound is available for adults living with obesity in our country. I like a bunch of the research calls. I don't think it's, I think that this is just another day where interest rates are going down a little.

People wanna take some profits. I mean, I was working on Nvidia again last night, which I do every single night. I mean, they've got strong demand in Japan.

There was nothing new from Secretary of Commerce, Armando, nothing new at all, that was picked up as something new. And yet it's down again. And I'm starting to think, all right, getting interesting again, everyone. The hates Nvidia all of a sudden.

Look, China would be lucky if it got any chips, even if they were allowed to get chips.

Carl Quintanilla (2:16)

So you're not falling for this line, I think it was the MS desk yesterday, that even the H20 might not be compliant with, whatever additional rules commerce comes up with.

Jim Cramer (2:26)

Nvidia is saying point blank, there's nothing new. This zone, this green zone is not changed. David, there is a lot about China today.

And the narrative is, are they are enemy or they are a friend? If you're Nvidia, you're trying to figure out whether you want to sell them to Japan, want to sell them to America, does Amazon need some? Is it Google, does Oracle need them?

David Faber (2:51)

They all need them. Everybody needs them.

Jim Cramer (2:53)

Right, so why do we care so much about our friend in China?

David Faber (2:57)

I don't know. I mean, don't you think, Jim, listen, on Friday when you and I were together, you had talked about... I did too. You talked about a broadening out.

And you were kind of, you weren't negative on the Magnificent Seven, but you at least were sort of moving away from them. And frankly, yesterday, certainly, investors seemed to be moving away from them. Isn't Nvidia just part of that trade as well?

Jim Cramer (3:20)

Yeah. Look, I'm just saying that they're for sale, right?

Except for Apple. Apple's not for sale because of some revenue guidance today about App Store. But I just say they're for sale and they're getting interesting. That's all. They're getting interesting.

I mean, Meta, we made some sales for the club, some Meta and some Alphabet, and the stocks just dropped like a rock. And these are not bad stocks. These are good. Instead, look, what do they want to buy?

Bath and Body Works? You want to go there? It's time for VF Corp.

David Faber (3:50)

I know, but you were talking just the other day about it broadening out. I'm not. And you were saying how they're actually, you know, you were talking about from weird names I hadn't heard about.

Jim Cramer (3:58)

It went from broad to junk overnight. I mean, yesterday...

Carl Quintanilla (4:02)

You're not calling Bath and Body Works and VF junk.