October and Q4 Markets, Powell's Rate Cut Message, Port Workers Go On Strike 10/1/24

Carl Quintanilla (0:00)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street. Good Tuesday 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. We kick off the month of October after four straight quarters higher for the S&P. Longest streak in three years. Plenty of macro to watch today and an East Coast port strike. Our roadmap begins with a new market month. The Dow and the S&P heading into October at record closing highs.

David Faber (0:31)

With that in mind, Fed Chair Powell indicates there could be gradual interest rate cuts by the end of this year. Also ahead, tens of thousands of dock workers are on strike at East and Gulf Coast ports. We are going to explore exactly what will be at stake for the economy.

Carl Quintanilla (0:48)

Markets are set to kick off a new month and quarter of trading at the open, S&P hitting its fourth positive quarter in a row and another record close. As investors look ahead to this last stretch of the year, the Fed share yesterday, spelling out the direction of rate cuts.

Jerome Powell (1:04)

This is not a committee that feels like it's in a hurry to cut rates quickly. If the economy performs as expected, that would mean two more cuts this year, a total of 50 more.

Carl Quintanilla (1:15)

He pointed out Jim, the tension between some of the growth data on GDP and income versus labor.

Jim Cramer (1:21)

Right. It just crushed the market. In the old market, the market that people seem to think we're in. That'd be it. But you then was working on an interview and came back, working from 3.3 to 4 I said, geez, what happened? Nothing. People just said, this is a buying opportunity. Larry Fink came out from BlackRock with some great comments about how let's get rid of the soft landing, hard landing. It's just doing exactly what we want, which is just slowing down. There's no inflation. David, when I look at the list of the companies that did the best in September, it's about as broad as I've ever seen.

Carl Quintanilla (1:55)

It's textbook.

Jim Cramer (1:56)

So unless, it's hard to find, it's no flies, no flies in the ointment.

David Faber (2:01)

So all good. Coast is clear.

Jim Cramer (2:05)

Yeah, well, I mean, you do that. That's not, that was not, it was more historical than it was a forward-looking statement. But I'm just saying when I look at it.

David Faber (2:13)

But things, all right, but your point is, I mean, A, Larry Fink saying things about the economy that are shared by others, which is basically, we're not having a landing, we're good. And to your point, there has been this broadening out that we have talked about as a sort of a necessary component of a stronger market.

Jim Cramer (2:31)

It's what we've always been saying. So then when you have Irie and Demedy, which I know you talked lovingly about yesterday, GE, Vernova, Palantir, that's a meme stock. Builders first.

David Faber (2:40)

Even I like when you say it's a meme stock. Some guy in the gym yesterday was like, Jim Cramer, this is a meme stock.

Jim Cramer (2:46)

I bumped into the CFO when I was out in San Francisco. And it basically implied that I've been not that complimentary. And I totally agree.

David Faber (2:56)

Is that a fair assessment?

Jim Cramer (2:58)

What am I supposed to know?

David Faber (2:59)

I don't want to stop us on Palantir, but is it really a meme stock?

Jim Cramer (3:02)

It is a meme stock. It's owned by a lot of individuals who are very excited by Alex Karp. I think Alex Karp is regarded as a bad boy.

David Faber (3:11)

Yes.

Jim Cramer (3:12)

Maybe the Pete Rose of this generation.

Carl Quintanilla (3:15)

Yeah, a lot of people thinking of Rose today.

David Faber (3:17)

I love Rose. I don't want to stop you from your broadening discussion. So if there's anything you think is salient that's worth resuming here, go ahead.

Jim Cramer (3:27)

So you have companies like DR Horton, home builder, and then you have 3M, you have Axon, which is body camera. I mean, look at these things. PayPal has been really terrific that you pointed out.

David Faber (3:37)

Talked about it yesterday.

Jim Cramer (3:38)

Jacob Solutions, they did that incredible split off, which everybody seems to like. Tesla, of course. BXP, a REIT, Iron Mountain, the REIT, Pulte Group, another home builder, Fair Isaac, just one of the best.