Oracle AI Boost, Apple iPhone 16 Launch Reaction, Southwest's Chairman to Step Down Amid Activist Pressure 9/10/24

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.

David Faber (0:08)

Good Tuesday morning. Welcome to Squawk on the Street. I'm David Faber with Jim Cramer. We're live from Postline at the New York Stock Exchange. Carl has the morning off. Let's give you a look at futures. We get started with trading 30 minutes from now. How we looking? Yeah, what do you think, Jim?

Jim Cramer (0:23)

Well, look, we were at 3.30. It looks like it's gonna be another really bad day.

David Faber (0:27)

There you go.

Jim Cramer (0:28)

How about that?

David Faber (0:28)

Turned around a bit. Our road map does start, as it often does, with stocks, as you just see right there. Looking to continue a rebound from, again, that bad week last week, worst week of the year, in fact. Oracle is helping to boost the NASDAQ. We're gonna spend some time talking about the earnings from that giant company. Speaking of giant companies, the biggest one, Apple, unveils its first iPhone designed for AI. Shares, though, under a bit of pressure, this after the EU's top court ruled that it has to pay billions in back taxes. And a big board shake up at Southwest. Chairman and former CEO Gary Kelly is set to step down. This, of course, omits the pressure from activist investor Elliott. Jim and I have been covering that one for a while. We'll also talk about, it's not just Kelly, it's six board members immediately. But let's get to the markets, Jim, and just sort of start there on this Tuesday after a rebound yesterday, given, again, what was a decidedly down week last week.

Jim Cramer (1:26)

Yeah, look, I think last week the tone was, all right, we've had this huge focus on AI and the build out, but perhaps we should be much more focused on the slowdown in the economy and therefore move toward owning the proctors, the Colgate's. By the way, like the General Mills' healthcare.

That was the zeitgeist of last week. Now, David, last night, Larry Ellison, and I know we're going to get to all, let me just go there now. As I was saying to you last night, Larry Ellison basically sought to redefine the whole area and basically said, okay, look, those who think that the data center and the build out are finished. He said, we have 162 data centers, but they're going to have between 1,000 and 2,000 data centers. So maybe we're not as far along in the build out as we thought. And I think that, I don't know Larry. I know Safra Katz, CEO, but I would say that in the annals of Betty against Larry at any venue, big mistake. So I'm with Larry.

David Faber (2:35)

You and I spent a lot of time during many shows talking about data centers. I want to do it there. I want to share with our viewers some of the sound from the call. We don't have that quite ready yet.

Jim Cramer (2:45)

No, no, definitely not ready. You kidding? We gotta go to other things.

David Faber (2:48)

We're working on it. We're working on it. We're feverishly working on that, getting that for people. But before we move into Oracle and get into the numbers themselves, obviously you can see what the stock is doing this morning. Any other thoughts in terms of the market? I mean, you've come to Oracle initially because why?

SPEAKER_4 (3:04)

It's a tell for the market overall?

Jim Cramer (3:06)

Well, because there's a big belief that what's going to happen eventually is that Metta is going to be finished building and Alphabet's going to be finished building and Amazon's going to be finished building. Microsoft, and what he says is you're never going to finish.

David Faber (3:18)

You're never going to finish building.

Jim Cramer (3:20)

And because he says you're never going to finish, suddenly you can put a different price to earnings multiple on the hyperscalers. And by the way, I haven't mentioned it yet, but you know it gets the biggest motor.

David Faber (3:32)

NVIDIA.

Jim Cramer (3:33)

Thank you. Thank you for that.

David Faber (3:35)

You're welcome.

Jim Cramer (3:35)

Larry Ellison basically endorsed the NVIDIA playbook. He talks about, look, I'll tell you something. I know we're really not ready yet to talk about Oracle.

David Faber (3:45)

You know what? I want to talk about Oracle. I don't care if we're ready or not. We're going to talk about it because you've made it clear why we need to talk about it.