Nvidia Rally Effect, Inflation Watch, WBD's New Deal With Charter, Norfolk Southern Ousts CEO 9/12/24

David Faber (0:00)

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

Carl Quintanilla (0:05)

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. Pre-market is trying to build on Wednesday's big upside reversal. ECB cuts rates for the second time in three months. PPI prints in line. Claims are steady. Adobe tonight. Our roadmap begins with those Fed expectations though. Wholesale inflation slowing again last month. Keeps investor hopes alive. The Fed will start cutting rates next week.

David Faber (0:30)

Plus, the Nvidia effect is back. Shares bounced again ahead of the open. They're bouncing after helping fuel that big comeback yesterday. It was in fact the biggest we've seen for stocks in two years. Norfolk Southern fires its CEO, Alan Shaw, this after an alleged affair with the company's top ranking lawyer.

Carl Quintanilla (0:48)

Let's begin with the markets. PPI and of course, yesterday's volatile session. Jim, up more than 2 percent from the intraday lows.

Jim Cramer (0:55)

Yeah. Look, I think that when you time the 2 percent, yes indeed, it does have to do with Jensen Wong, CEO of Nvidia, talking about what the truth is versus what people thought it was after they reported that quarter. Really emphasizing demand to the point where you start realizing the level of demand is unprecedented. This is for the Blackwell supercomputer. David, not for the chip, he made that clear, no longer chip. It's an infrastructure. But what really made that stood out was without any name-calling, the collapse of Intel as a company, basically. I'm going to put it like that because he's saying, there's two components. There's the GPU with accelerated computing and then there's the wonderful generative AI. The accelerated computing business, Moore's Lawstead, that's Gordon Moore, who founded Intel with other people, and that it's time to recognize that if you have CPUs in your data center, you got to rip them all out and put in GPUs. So, it was to me...

David Faber (1:52)

It was not just talking about Nvidia, but it was also saying that what does this actually mean? Is the implication for the likes of Intel, which obviously has made its way into the data center for CPUs. Not to mention, of course, computers. Exactly. Laptops and everything.

Jim Cramer (2:04)

Now, there's a lot of knuckleheads, David, who come in early in the morning and take Nvidia up for no reason. It was up to $118.50 at one point today. And I want to know what those people do, and why don't they just go back to sleep?

David Faber (2:15)

The action yesterday was interesting, though, in that Jim, those comments, I mean, we had them, we featured them, they didn't seem to resonate in some way for quite some period of time, yeah. And I wonder whether really we are attributing properly the fact or we're just, who knows what it really was. Well, I like, most likely is anything, but who knows?

Jim Cramer (2:32)

I like Santoli, Mike Santoli's explanation.

David Faber (2:35)

Which was?

Jim Cramer (2:36)

Which was that rates started going up and that people actually like that now because they're worried about a recession. Now, we could also argue, it's pin the tail on whatever you want, Carl. We're all struggling to figure out why a market can turn into a day. But this is not unusual behavior ahead of a rate cut, where there's always people who doubt it and always people want more of a rate cut. And there's people who just don't know what they're doing. So they just trade like banshees and you shouldn't. Sit on your hands. Don't buy Nvidia 118.5 and then sell it at 116 Have some common sense. There's nothing really going on.

Carl Quintanilla (3:08)

Nvidia now have 13 for the week. Of course, it comes on the heels of the data center discussion over at Oracle. And we do have an analyst meeting with Oracle today.

Jim Cramer (3:17)

Well, this is where I expect them to raise numbers, perhaps substantially. The Oracle narrative of 162 data centers going into 1000 to 2000 was the beginning of this move to be able to return to a group of stocks that had been suddenly pariahs. We had someone on our air talk about the bear market in Nvidia. Bear market in Nvidia. It's up the most in the S&P this year, but holy cow, what a bear market.

David Faber (3:43)

Yeah, wow, rough, it's been rough.

Jim Cramer (3:45)

I mean, you're Jensen. Okay, you're Jensen Wong. And Jensen's sitting there saying, okay, on the one hand, people say I'm getting a letter. I've gotten a letter from the government, from the Justice Department. The Justice Department, which is like, by the way, when you get the letter from the Justice Department, not good. It's suboptimal when you get the Justice Department letter, then he didn't get the letter, but then it turns out if he didn't get the letter, then maybe he's not powerful. Well, if he's not powerful, maybe numbers are too high. I mean, who thinks of this stuff? People, I mean, you know, Carl, when you watch linear TV, I read the piece of Upgrading Roku, and no one watches linear TV. I withdraw my objection.