Morning After the Sell-off, Micron Tumbles, Trump: Abolish the Debt Ceiling 12/19/24

SPEAKER_1 (0:00)

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David Faber (0:20)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:25)

Good Thursday 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 are looking for this bounce to hold after the S&P's worst day since August, Russell's worst day in two years, and the Vicks' second highest single day surge ever. Ten-year yield 454, still a seven-month high this morning. A roadmap begins with the bounce back. Stocks looking for a higher open after yesterday's Fed-fueled sell-off.

David Faber (0:50)

Plus, shares of chip maker Micron and home builder Lennar are both tumbling pre-market. This on their quarterly results. Accentured Darden and Lamb Weston also across the tape. Lamb Weston also not looking so good. And we're also on shutdown watch. Elon Musk and the president-elect both force GOP lawmakers to scrap up bipartisan spending bill. That leaves Congress scrambling for Plan B. It does raise the odds of a government shutdown.

Carl Quintanilla (1:18)

Let's begin with the markets after yesterday's sell off. This is the comment from the Fed chair that did grab Wall Street's attention.

Jerome Powell (1:26)

I would say we are though in a new phase in the process, as I said. And that's just because we've reduced our policy rate by 100 basis points. We're significantly closer to neutral. We still think where we are is meaningfully restrictive. And I think from this point forward, you know, it's appropriate to move cautiously and look for progress on inflation.

Carl Quintanilla (1:51)

Like a dark room full of furniture, Jim.

Jim Cramer (1:53)

Yeah. Look, I think that they're data dependent, but they made a prediction and the prediction was not right. They should have just stayed data dependent. They could have looked at the long bond and realized, you know, wait a second, we're all on the wrong track here and singled that. And they didn't single it. I mean, they even have people, they single too, that they were getting more concerned. And I think that there were so many people positioned poorly that you got this. And now David, you know that had you been more thoughtful, you might, and you were going for say three, four, you had to pull back ahead of the meeting just because where the real bonds were, not where his stuff was.

David Faber (2:32)

He got it wrong.

Jim Cramer (2:34)

Now, what doesn't mean he can't get it right.

David Faber (2:35)

What did he get wrong when you say that?

Jim Cramer (2:37)

The messaging.

David Faber (2:38)

He got the messaging wrong.

Jim Cramer (2:39)

Because what happened is that he has been dated. It's an old suit. He had been dated at my investment club meeting today. We have a data dependent Fed, and they chose not to be data dependent, and that's what happened. So their message was off. They're not wrong. But all the people who thought that they were going to be kind and dovish, I mean, they were black dovish.

David Faber (3:10)

Don't like that show. It was a fairly orderly decline, is what people are saying.

Jim Cramer (3:16)

Yes, a orderly decline. What would an incisory decline look like?

David Faber (3:20)

It wasn't like that momentum crash of a few Mondays ago. It was in line. Factor moves were not crazy. The betas, you know, momentum growth value.

Jim Cramer (3:31)

The oversold position is the most since March of 2020 Well, we did have, there's a couple of times that things have not been that bad. But if you go back to 2023, we can find that there were other times that we were minus 7 This is what the S&P oscillator I have. And it was the time to buy. S&P moved up substantially if you bought today in September. And what I say, I say, listen, let's do a little buying.

David Faber (4:00)

Well, you've also been somewhat more cautious lately.

Jim Cramer (4:02)

Because I see this stuff, this junk.

David Faber (4:04)

I mean, we talk about multiples. We talked about Apple yesterday trading at 41 times earnings.

Jim Cramer (4:09)

I was trying to do my speech. And I said, listen, I can't tell you I want to buy it here. I do think that there's this nuclear, quantum. OK, these are-