Oil Prices Plunge, The Ozempic Effect, Disney’s Dismal Run 10/5/23

SPEAKER_1 (0:00)

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Carl Quintanilla (0:31)

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 Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla, Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Pre-market mostly red here after the Dow did snap a three-day losing streak, got some cross currents at work, oil lowest since August, but long-term yields are higher after claims come in light, 207,005 Fed speakers today. Our roadmap begins with the drop in oil coming off their biggest one-day slide in 2023

David Faber (1:03)

Plus the Ozempic effect, Walmart saying it's seeing a slight pullback for certain food products because of those weight-loss drugs. And Disney's dismal run, the stock's back below 80 bucks a share, its lowest level since October 2014

Carl Quintanilla (1:21)

Let's begin with the drop in oil prices. WTI on pace for the worst week since March. Jim, we got down to 82.35 this morning.

Yesterday, biggest drop since May.

Jim Cramer (1:32)

The Department of Energy numbers were weak. The gasoline numbers were weak. The lowest, what, since 1996

When you speak to the chieftains of the oil companies, they just want to stand there and buy the shares because they don't think that this is the right market. They think that the higher price is the right market. David, I look at what's happened with oil, and I say, if you have retail weakness, if you have fewer people, obviously, people from student loans, which shows me a very big number, fewer people going places, obviously, there's going to be a backup of gasoline. But I think that this price is actually real.

I understand that the oil companies want to buy back stock, but the oil stocks never went up as much as the oil price.

David Faber (2:13)

No. But when you say this price is real, what do you mean?

Jim Cramer (2:16)

Well, I mean, I don't think the $94.95, they ran into resistance, and there were a lot of talk that that was a short squeeze when it got that high.

Carl Quintanilla (2:28)

Gas prices, meantime, lowest since the end of July. And if you look at the front month futures of our Bob, implies maybe another 12% down.

Jim Cramer (2:37)

I think it's possible. Look, when you got up to $6 in California, that's a really high price.

We keep getting this strapped consumer.

David Faber (2:45)

There's natural gas.

Jim Cramer (2:47)

Natural gas?

David Faber (2:47)

Also, in case you want to look at it.

Jim Cramer (2:49)

No, that's natural gas broke through three.

I tried to do a piece for the investing club saying why you should buy Cotera, which is natural gas company, with a dollar per dollar, so they make $2. Nobody cares. They're like, what? Do you think that these... There's linkage.

David Faber (3:02)

Right.

Jim Cramer (3:02)

But that's a real number. The back gas number is a real number.

David Faber (3:05)

And there's gas.

Jim Cramer (3:06)

What, our Bob?

SPEAKER_5 (3:07)

Yeah.

David Faber (3:10)

Our Bob? You call me our Bob?

Jim Cramer (3:13)

I say, look, I just think it's a very subjective thing. I think the oil companies would stand there and buy stock back, because their stocks are not expensive. David, Exxon put out some numbers yesterday. They were pretty good.

Nobody cares. No.

What?

David Faber (3:26)

Why don't they?

Jim Cramer (3:27)

Well, because this is a very binary market.

David Faber (3:30)

They refer to the earnings considerations we got from Exxon?

Jim Cramer (3:33)

Yeah. But I'm saying it's a binary market. You know, two weeks ago, Exxon would have gone through the roof. But now we, you know, this market has got mood problems, obviously. It's got a, it's not schizophrenia. It's not that strong. It's just got, it needs Xanax. It doesn't need, you know, Zyprexa.

David Faber (3:50)

To your point, the stocks turned around before the underlying commodity, didn't they?

Jim Cramer (3:55)

Well, the, what, in this last leg?

David Faber (3:57)

Yeah, just this last leg.

Jim Cramer (3:58)

Yes, they did.

They were forward looking. But they, look, Chevron never went back to where it was supposed to be at $95. $95, Chevron kind of languished. But I bet you Mike Wurst in there buying stock hand over fist today.