Morning After the Sell-off, Nvidia Rally Rolls On, Musk's EV Tariffs Switch 5/24/24

Carl Quintanilla (0:00)

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

Good Friday 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's on assignment. Bulls on the hunt for some signs of stability after the Dow's worst day in more than a year. Benchmark yield still a bit toasty near 449 Durables ran hot, although oil near a three month low. Our roadmap begins with the day after the sell off, the Dow dropping 600 points on pace to break a five week win streak. One name that is moving higher though is Nvidia, up again in the pre-market after adding more than 200 billion in valuation following that big earnings beat. And then Elon Musk reversing his stance on Chinese EV tariffs, now saying he opposes the US moves on those autos.

Let's begin with the markets after the sell off yesterday, Jim. A lot of things you could point to, PMIs, some concerns about commercial real estate.

Jim Cramer (0:55)

Well, I'm glad you pointed out the second one because what's happened is that we've got this feeling that the reason why the commercial real estate is worrisome is because they're not cutting.

And it's kind of a chicken and egg thing, but yesterday was jarring. Oh, jeez, here we go again. Durable's a little too strong. But I think if I were Jensen Wong, I would say darn it. I would have been up 100, not that he ever low. He's actually a pretty confident fellow, but that stock would have been up really huge and carried a lot of other stocks. But because the bonds, interest rates went up so much, everything reversed. And the only thing that was still up in semis was Nvidia. Look, yesterday was a bad day. It was a really bad day because we got oversold very quickly, by the way. Because we had no leadership, there was no follower to Nvidia. I mean, today we have no doubt on NXP and that's gonna have more pin action than what happened with Nvidia. But yesterday, Carl, we're getting this undercurrent about this Starwood S. Reed.

And I want to hear from Barry, obviously, because I think when we heard from Barry Sterling, when we heard from Blackstone on theirs, it was pretty calming.

We don't really talk about it much after. They did a good job.

Jonathan Gray did a good job and we kind of didn't want to make them. We never made a molehill into a mountain and I don't want to make a molehill into Mount Sterling. It's not fair. Barry's a good guy. STWD has been giving you a good return although it hasn't done much. But I'd like to hear from him about what he wants to do rather than just read the press reports.

Carl Quintanilla (2:29)

Yeah, Jim's referring to this limited redemption, buying back 1% of the value instead of five. Of course, Sternlich's been a consistent critic of rates and the impact they're at least having on his industry.

Jim Cramer (2:41)

But he did talk about how there'll be a bank that will fail every week and I think there are a lot of people who might be, not me because I like Barry, who might just say, oh, give me a break. Well, it might be one of the reasons why they fail is because you're defaulting on properties, you're doing these SPACs.

I say, let's hear from Barry because I know he doesn't want to sell into a low, but how do we know it's a low? I mean, he's been telling us, one of the things that Barry has done is he's, I don't like to ever be scared, but he has scared me. I would never, if you came to me, Carl, and said you had a real good deal on a commercial real estate property, I would say, did you ever hear of Barry Sternlich? He is telling me not to be in it. And then he's the one that is front and center for a problem.

Carl Quintanilla (3:20)

And then on top of that today, Jim, Goldman gives up the ghost on a July cut. They moved to September.

They do say by September, you'll have four more CPI prints. They think core PCE prints in the low 20s basis points. And by that point, they think the majority of the committee will be in favor.

Jim Cramer (3:37)

I think that's right. I thought yesterday was an outlier with services. We still know service economy is strong.

I come back again and again, I'm going to say it, it's employment. And we don't have mass bankruptcies. I mean, we do, we go over Red Lobster. And if we really think that the reason why it went down was unlimited shrimp scampi, well then I'm gonna take that out of the equation of what the Fed says. Ooh, that's a good one. We need, I never want a Rite Aid to go under. Cause I happen to have a good Rite Aid across the street from me. But when you go there, they have like some razors.