Nvidia In Correction Territory, Playing the "Frugal Economy," the EU vs. Microsoft 6/25/24

Jim Cramer (0:00)

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 (0:07)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at post night of the New York Stock Exchange. Faber has the morning off. The story flips today as Nvidia looks to bounce after its worst three day drop in a year and a half. What does that mean for this recent rotation as we look ahead to FedEx tonight? Our roadmap begins with that Nvidia correction. Eye on the bounce after the tough three day slide. B of A adds it to best of breed today. The EU's new tech target accusing Microsoft of breaking some antitrust rules.

And we're watching the plane makers, Airbus cutting targets and Boeing reportedly in talks to buy back Spirit, mostly with stock.

Let's begin though with Nvidia looking to rebound after sliding into correction territory. Jim, even though since the close on the 14th, SMP's up a touch.

Jim Cramer (0:51)

Yes, but look, I don't like rallies that start in pre-opening. And the reason I don't is because then anybody who's in it yesterday who bought it, say, and it went 118, there was a lot of volume, 119, a lot of volume, there was some volume, 117 after the close, those people are gonna flip, they're gonna hit, they're gonna hit, they're gonna hit. That's gonna make other sellers come in. What you really wanna see is you wanna see it open down and then rally.

And this takes away the opportunity. So the people are not, I think, gonna be able to say, let's make it stand here unless Micron, they have Micron, they don't have Micron because they're not gonna report that tomorrow. So I look at the situation and I say, wait, wait. Look, I'm a own it, don't trade it. But I always wanna, apropos of our Thursday Investing Club Media, I never want people to get a bad entry point.

And I don't think up three is the right entry point.

Carl Quintanilla (1:42)

You don't think we're there yet?

Jim Cramer (1:43)

No, we haven't had any, we need Sanjay Marotra to say, look, the business is accelerating, he's Micron's CEO.

The business, the complex of data center. Right now we don't have any new data points that make me feel like, you know what, the street, there's someone who upgraded again.

It's all very lame. The defenses are lame because it's had such a big run. So I say, let's see if this early morning rally can hold. But my sense is, is that there'll be people who are saying, thank heavens, I thought I'd never see this price again. And those are the people that you're most afraid of as your fellow shareholders, your enemy here. They're your enemy.

Carl Quintanilla (2:23)

That's why we turn to you, Jim, for your gut, in a sense.

That said, yesterday, even with its decline, you had nine of 11 sectors green, 70% of S&P components green. Does that continue, that rotation?

Jim Cramer (2:38)

I spent a lot of time trying to figure out how much of a share donation can these big companies make. Microsoft wasn't down that much. Apple, that ain't donating a share, that's still accumulating money. Amazon did roll over, Alphabet had a really good session. There's not enough money in those stocks when they shed their gains that can go to the rest of the market and sustain it.

You need to see the big seven year auction on Thursday, I care more about that, 44 billion, than I care about what these stocks are doing. There's not enough money to go around. There's just not. There's a lot of safe money at five.

These, to get people to come in and buy something, you need FedEx today to say they see an acceleration.

There's a lot of chatter about the auto companies. Maybe they have to cut prices. You need to see somebody, some Fed official say, look, you know what, we're looking at the data and maybe we see some softness. We gotta see what the personal consumption is gonna be on Friday. Instead, we have a pop-off, Bowman. You know how I feel about these people. They are being grilled and grilled and grilled. And it's almost like when I interview a CEO and they come over and over again and say, look, it's my quiet period, I can't tell you. It's my quiet period, I can't tell you. And finally say, okay, whatever you said. That was like, whatever you say, yes, if it gets hot, we will raise. And then that gets to be the quote of the day. Oh, it's gonna get hot and they'll raise. So we need to see Fed shut up or Fed say, hey, listen, it's okay. Then we need to see some sector of the economy that's indicating that it's doing a little better.