Powell and Nvidia Lead Big Market Week, China Trims Key Rate, Palo Alto Surges 8/21/23

SPEAKER_1 (0:00)

What do you see on the horizon? Uncertainty or opportunity? Whatever you see, at PGM, we can help you rise to the challenges of today, providing outlooks on the market with deep global and local expertise.

With over 1,400 investment professionals in pursuit of long-term returns, our investments shape tomorrow, today. Pursue your tomorrow with PGM, a leading global asset manager.

Jim Cramer (0:31)

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 (0:38)

Good Monday 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.

Bulls trying to keep Friday's modest gains going as we set the table for a very big week. Jackson Hole, Nvidia, retail earnings, housing data yields still a little spicy this morning, 10-year near 4.3. Our roadmap begins with the market's three-week pullback. S&P's on track for the worst month since December of 22

David Faber (1:01)

And as for mega tech, well, the Magnificent Seven are in correction territory, but Nvidia is getting a boost ahead of its earnings. They're due out middle of this week. We'll explain.

And we're gonna keep focused on those economic challenges in China. The country's central bank cutting a key interest rate by less, though, than many had been anticipating. Oh, yeah, who is many anymore slew of press over the weekend as well, the Journal, kind of a devastating headline. Is it over for 40 years?

Jim Cramer (1:29)

Yes, definitely, definitely over. Who can say this stuff?

Carl Quintanilla (1:32)

We were here. We were lucky enough to witness the fundamental change in the Chinese economy.

David Faber (1:37)

It happened over the weekend.

Carl Quintanilla (1:38)

Yeah, it happened over the weekend.

Jim Cramer (1:39)

They're trying to be a service economy. Donny, maybe he just, maybe President Xi has just said, you know what, every bankrupt artist, every ridiculous guy who built too much and every ridiculous person who tried to get extra yield, sorry, why not?

Why not clean up the excess?

David Faber (1:57)

Well, the question of course is contagion.

Oh, contagion. Yeah, some of the huge property companies that are not paying interest on certain amounts of their indebtedness, the enormous trusts that are relying on that and paying the high yield, the people who are no longer buying property as a result of the fact that it's gone down in value and it's their largest source of net worth.

Jim Cramer (2:24)

I know, are you talking about Gun Belt Savings and Glen Fed and Cal Fed? That's what he's talking about. You were talking about 1990 in America, right? I mean, Resolution Trust.

David Faber (2:33)

You weren't? No.

Resolution Trust Company?

Jim Cramer (2:35)

I had a piece this weekend for the club. He is the Herbert Hoover of China.

Carl Quintanilla (2:43)

That kind of rhymes with some of the stories on the tape this morning that he's running cold on purpose.

Jim Cramer (2:48)

Wasn't that a great article?

Carl Quintanilla (2:49)

Trying to break the dependence on empty calories.

Jim Cramer (2:52)

That bloomer piece, that was brilliant. And I read that and I said, that's a secret. I mean, he's just not cutting a break.

Well, he needs a Resolution Trust, but everybody who is a shoddy banker at Glen Fed and Cal Fed should read this. This is countrywide. It's countrywide. And by the way, they even have the same kind of names over there.

David Faber (3:15)

Well, country garden, yeah.

Jim Cramer (3:17)

Country garden, countrywide. I mean, what's the difference?

Tell me.

David Faber (3:20)

They have a very different system than we do.

There are certain benefits to capitalism. I like the fact, moving more quickly, perhaps.

Jim Cramer (3:30)

Well, is there a primary coming up for she? Is he going to Iowa?

David Faber (3:35)

No, you can't.

Jim Cramer (3:36)

No, she's not going anywhere.

Carl Quintanilla (3:37)

He knows Iowa. He does.

David Faber (3:39)

He's spent a time in Iowa.

Jim Cramer (3:42)

He had a bogus vaccine that he insisted on giving to people. I was with Dr. Porla, who was happy to give the Pfizer vaccine, which by the way, worked. I don't know if you had that. But no, he said no to the, talk to the hand, President Xi, what is he like, Einstein? Who is he? Louis Pasteur?

He says no to the, he gives him the bogus vaccine and he locks him up, which of course does nothing.

Meanwhile, didn't Trump say he invented the?

David Faber (4:10)

Where are you going, man?

Jim Cramer (4:11)