Negative GDP, Starbucks CEO, White House's Navarro on Trade Talks 4/30/25

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Jim Cramer (1:02)

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.

Carl Quintanilla (1:10)

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. Final day of April. Futures do go red as Q1 GDP goes negative for the first time in three years, even as the price index runs hot. Short-term yields fall to a new year-to-date low. Our roadmap is going to begin with that raw data pointing to potential costs of this trade war. The economy contracting for the first quarter, raising some recession fears.

David Faber (1:34)

Plus policy uncertainty beginning to weigh on a number of businesses. We've got the latest reads from Starbucks, Caterpillar, Visa, Yum! and others. Macro headwinds and the consumer, of course, remain top concerns. Starbucks CEO Brian Niccol also will join us. That's just a few minutes from now.

And yesterday, Commerce Secretary Lutnick said one trade deal is done. The president says an India deal is near, but we're going to get the latest in White House trade advisor Peter Navarro. And that will also be this hour, Carl.

Carl Quintanilla (2:04)

Let's begin with some market reaction, though, to GDP as we get ready to wrap up this volatile trading month. There's a ton of data today, Jim. Haven't yet mentioned ADP was a miss. And the Treasury refunding stuff we got.

Jim Cramer (2:15)

Well, I think what's interesting is that we are always hoping that we get some softer data so that rates are cut and the 10 year looks like it's going to. And suddenly we get the softer data and we say, well, wait a second, we don't want softer data. We want better data. David, I leave it to you, when you look at the stories, it does seem to indicate that we were hoping to get through this period without a downturn. And that was, frankly, highly unrealistic.

David Faber (2:38)

Well, it appears that we already had one. The question is, how long? Sustained? Not? A quick blip? I mean, obviously, I don't know the answer. And I'm not sure a lot of business leaders know the answer at this point either. Certainly things can become a self-fulfilling prophecy when you pull back as a result of uncertainty.

Jim Cramer (2:59)

Right.

David Faber (2:59)

And therefore, you end up creating weakness that otherwise might not have been the case if you just followed along.

Jim Cramer (3:04)

Well, one thing you have said is not so much industrial as it is individual in service. We haven't seen any of the retailers. I mean, I don't know. I mean, that would be the beginning of when we start saying, now, this policy is supposed to do exactly what? And there will be, I mean, look, the Democrats have this. It's going to impoverish us. They, you know, not a shocker. If it's going to have any impact on the White House, it has to be a Republican of any repute who just is, look, the people in my district are getting crushed. What's the deal, partner? Because these numbers are not that good.

Carl Quintanilla (3:41)

Well, Page One of the Journal, right below the masthead, it is about retailers who say, look, we are trying to keep prices low, but that can only last so long as this inventory lasts.

Jim Cramer (3:52)

Well, last time I had a call from one of the retailers that is not the big three, not Costco, Walmart and Amazon. And I just said, why would I be interested in this? What kind of scale do they have? I mean, this is about scale. And David, Walmart has scale. You know Walmart very well. I can tell you Costco has scale.