Pullback After the Tech Rebound, More 737 MAX-9 Pressure On Boeing, CEOs Weigh In On Obesity Drugs 01/09/24

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David Faber (0:28)

Market Insight and Analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:34)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla at Post 9 of the New York Stock Exchange. Cramer's at the JP. Morgan Healthcare Conference in San Francisco. David Faber at HQ. Coming off a Monday snapback, S&P now once again, within 1% of all-time highs. Ten-year yield just north of 4 on a light day for data.

A roadmap begins with stocks as we said, S&P within striking distance of a new record coming off the best trading day since November.

David Faber (0:58)

Plus, Nvidia shares hitting a new all-time high and it is the outlier of the Magnuson 7 stocks this morning, pointing to further gains at the opening.

Boeing shares though, they continue to slide a bit. This as more loose parts are found on Max-9 jets.

Carl Quintanilla (1:14)

Guys, let's begin with the markets after yesterday's rebound, Jim, specifically the rebound in tech. A lot of discussion today about the renewed enthusiasm for AI, CES, semis, crypto and the like.

Jim Cramer (1:27)

Well, it looks like it was kind of a pincer move. They came in both with health care right out here and talked about all the work they're doing for really, I guess, for discovering new drugs and also for making a better colonoscopy. I know not necessarily something that we want, but yes, we have to have.

And then CES, it's very clear that they have the next generation that is ready for PCs. People didn't expect the PCs will be back. David, the democracy, the democratization of tech that Nvidia is offering now, it's not just the enterprise, it's individuals. Very exciting for people.

David Faber (2:04)

You know, Jim, when it comes to Nvidia as well, there's no shortage of other questions and or rumors and things of that nature. So let me throw one your way, which is would they ever consider setting up their own cloud infrastructure to compete with the likes of Amazon or Microsoft? Obviously, incredibly important customers for them.

But given they make all the chips that everybody wants, is that something that's been discussed?

Jim Cramer (2:29)

No, because Jensen Wong, there's some personal discussions I've had with him, has fantastic relationships with Mark Zuckerberg, with Amazon.

What he speaks of when he talks about them is, look, they're trying to make their own chips, but they are fantastic partners. That would surprise me, because Jensen Wong is someone who comes in pieces, he says, and is not about to upset the apple cart.

David Faber (2:54)

Interesting. Yeah, again, just something sort of out in the marketplace.

In no way, shape or form am I indicating that I think it's true, Jim. But those are the kind of things that are discussed, because how many of these businesses get into each other's business in some way becomes sort of a question.

Jim Cramer (3:11)

Well, look, when he spoke it, really there was an amazing discussion he had when he went to Snowflake.

And he discussed about how even though Snowflake thought about perhaps there was another way to be able to get really get invidious chips down in price. One of the things that Jensen said is, look, we spent years doing this. We are not about to just give in. And what it was like was he defended his turf. But he also said everybody else is pretty happy with what they can get except for the Chinese. And the Chinese obviously are upset they can't get the latest and greatest.

Carl Quintanilla (3:48)

Meantime, Jim Oppenheimer, Nvidia top pick. They do say that the semispace history suggests the group should be up 11 percent this year following the initial inflection last year. Ed Yardeni with a note last night looking at the forward PE of Nvidia, which has actually come down from the mid-80s to the mid-20s.

As he argues, the street has come around to what has been his longstanding productivity thesis.

Jim Cramer (4:14)

Well, when I first met the people at Nvidia, I thought the stock was selling at 80 times earnings. Turned out to be selling at 16 times earnings because they had so much in the pipe.

Do you know that Nvidia is the buzz out here at JP. Morgan? All people can talk about is they were never able to come up with genetic computations that would be quick enough. It might take months and months to be able to figure out what might be good. And now it's seconds, just seconds. So everybody is so excited. The Nvidia presentation yesterday jammed as people realized that it is really a healthcare company.