Powell Watch, Rotten Apple, OpenAI Fires Back at Elon Musk 3/6/24

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 Wednesday 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. Equity bull is looking for a bounce after the biggest pullback in three weeks. Powell's on the hill today.

We'll reiterate the cuts are likely sometime this year, but need more confidence on inflation, 10 year 412

Our roadmap begins with some Fed expectations. Futures do point to this bounce as investors seek new rate cut clues from the chair on Capitol Hill today.

David Faber (0:30)

Plus tech troubles, Apple is seeing what is its worst two day stretch since September.

And if you haven't paid attention, Tesla shares, they're down 10% this week alone. That's only two trading days.

Jim Cramer (0:42)

If they had gotten AI from, oh, we have to go into that.

David Faber (0:47)

Actually, we're gonna talk about that. A war of words, OpenAI.

Jim is firing back at Elon Musk.

Jim Cramer (0:52)

There's one percent chance we'll talk about that.

David Faber (0:54)

Publishing emails which appear to show the Tesla co-founder actually did support creating a for-profit entity.

Carl Quintanilla (1:01)

Let's begin with the markets and the testimony from the Fed chair today. Jim got some news on what he will say in terms of written words.

Jim Cramer (1:08)

Yeah, no, look, I kind of want, marches off the table. I think that this is obviously one of those made off the table, but I wanna get a little more expansive and I'm getting tired of the game of what month. And instead, what I see is a man who has said, listen, we're not gonna have a hard landing, we're not gonna have a soft landing. We've got a good strong economy and we're fine.

If it gets weaker, we'll cut.

It's kind of a great central bank essay about what you need to do in order to be able to get out of an inflationary period. David, I think that he's becoming more of a, let's just say, a true statesman of how to be able to do something that almost everybody thought he couldn't do, which is continue with good employment and not have a lot of inflation. I felt very bullish about this.

David Faber (1:53)

You do. Typically beyond that, I mean, the questioning is...

Jim Cramer (1:59)

Well, okay, you want to say that...

David Faber (2:00)

Most of the time, not particularly helpful.

Jim Cramer (2:02)

Look, if you want to say it's Greenspan-like, but I think Greenspan, the difference between this man and Greenspan is that I think Greenspan was deliberately trying not to really say anything substantive.

This man has a substantive viewpoint and he'll stick with it, which allows us to have a decent background, at least when it comes to the futures, versus the last couple of days, which have seen this level of topiness in tech. We haven't had a very long time.

David Faber (2:24)

It's true. Well, we've also seen rates, well, they've declined the last couple of days.

Jim Cramer (2:29)

Well, I mean, yes. And that's why mortgage applications are very big. I'm glad you mentioned that. Certainly revision what we thought.

You know, look, Carl, sometimes it's okay to say, look, things are really good, but did the market anticipate it? What I'm concerned about is, when I see the action in Apple, that we're gonna touch on, I see the action in Tesla, I see the action in Alphabet, versus the action that we're getting in the banks. And that could be because we're starting to see that the regulators are starting to let up on some of the regulation. It does seem like there's a shift going on out of the really, really high multiple and into a target which had a very low multiple going into yesterday's analyst meeting and into the Wells Fargo's, which frankly had been neglected that were selling at 1112 when they used to sell at 1415

Carl Quintanilla (3:10)

Yeah, upgrade two, upgrades a target, got an upgrade of Honeywell, you mentioned the banks, regulators, these reports, they're gonna ease up on some of the Basel end game cap requirements. I have to mention KRE, Jim, best day versus the market in 12 months yesterday.

Jim Cramer (3:23)

Yeah, look, there are things that are happening underneath that I find are not toppy, but are substantive in what we've wanted. David, look, this Mag-7 market that everybody hated, you get away from the Mag-7 market and the market, the money does not go over to the 5% crowd, it goes to industrials, it goes to banks, it goes to some healthcare.