Morning After the Sell-off, FTC vs. Amazon, 30 Years of David Faber 9/27/23

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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 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. Bulls try to regroup here after Tuesday's sell-off. Yields are lower, but the 10-year still pinned to four and a half. Government shutdown and strikes remain in focus. We'll get Micron tonight. Our roadmap begins with Wall Street's worries, though. Futures rally after the Dow's worst day since March.

S&P's first drop below 4,300 this quarter.

David Faber (1:03)

Plus, retail's theft risk. Target is opting to close nine stores in major US cities. Costco, though, says it's not a, quote, major problem.

Jim Cramer (1:12)

No, it's not. It's a club.

It's like the Elks.

David Faber (1:16)

All right, all right. President Biden urges UAW workers to stick with the strike, while Elon Musk says the demands are a sure way to bankrupt the big three.

Carl Quintanilla (1:27)

We will get to Costco in a minute. Let's start, though, with the markets looking to rebound from yesterday's sell-off. Jim, you have said this morning, be careful, don't bite too soon.

Jim Cramer (1:37)

Yeah, thank you, because you come in. Now, I have to tell you that when I was watching Frank Holland this morning, it looked like we were about to have a breakout. Then we go back down. What I just want people to understand is that October is a good month. So I can understand you trying to position, but I also am more worried that interest rates, which did not go higher on the durable goods number, the interest rates could reverse. And David, I don't care what month we're going into. This market, as we've indicated, is really about interest rates. It's not about as much as people might want to say. It's not about earnings.

Actually, the earnings that we've had the last couple days is pretty good.

So if rates go the wrong way, then whatever we have there in the future is just a race.

David Faber (2:19)

What about if they just stay where they are for longer than we anticipated? I'd like that. As Kashkari indicated, he may see.

Jim Cramer (2:25)

Well, but that's the short end. I'm saying the long end.

If the long end, if we get...

David Faber (2:29)

So we're back to the 10-year, which we of course discussed yesterday or the 20

Jim Cramer (2:33)

I like the 20 because in the old days, the 20 was king.

And the 10-year was pawn. How did the 10-year become king and the 20 pawn?

Carl Quintanilla (2:41)

It is the benchmark yield, Jim.

Jim Cramer (2:43)

Look, I don't know. I try to get a mortgage in price of the 20

I got a mortgage last year for three and an eighth.

Carl Quintanilla (2:49)

Really?

Jim Cramer (2:49)

Yeah, now it's eight.

David Faber (2:50)

A year ago.

Carl Quintanilla (2:51)

Was that a jumbo?

Jim Cramer (2:53)

Yeah. I got something that was from a credit union.

It's credit unions. They were, took about a year to get it.

David Faber (2:58)

All right, so when do we stop having this conversation then? And when does the-

Jim Cramer (3:02)

When I say so.

David Faber (3:03)

Market move on. Not this conversation, a larger conversation.

Jim Cramer (3:07)

No, because I feel that we're headed for the end of the inverted yield curve. Cause everybody who claimed that things would be horrible with the inverted yield curve, right? Then they can start claiming it's gonna be horrible with the de-inverted yield curve. I actually am stuck with the facts. And the facts indicate that there's still a lot of good out there. It's just that you have to pick and choose. Retail tougher, industrial not bad.

Even though the stocks don't act well.

I think that you have to pick, look, obviously utility's bad. Some of the drug stock's good. I just, you know, health care. Now I'm just trying to present it as any other time. Look, you were around the 80s and 90s, I think.

David Faber (3:45)

Certainly was in the 90s. In fact, I was working here for much of the 90s.