Q2 Playbook, Stocks Extend Big Rally, Nike Tumbles 4/1/26

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David Faber (1:28)

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

Carl Quintanilla (1:40)

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. Bulls tried to build on Tuesday's quarter end rally, which got us back to roughly Thursday's levels last week. Yields are lower, but bounce a bit on some better than expected ADP and retail sales data. Oils back below 100, although retail gas continues its climb, now 406 a gallon per AAA. Our roadmap begins with optimism for an end to the Iran war, fueling this rebound, but Iran threatens attacks on Apple, NVIDIA and some other tech giants. President is set for a prime time address tonight.

David Faber (2:16)

Plus oil price is easing with the WTI, as Carl just said, hovering right around $100 a barrel after notching its biggest monthly gain since May 2020, its best first quarter ever. And we're keeping an eye on shares of both Nike and RH. They are both down rather sharply in the pre-market. That is after quarterly results, of course, that we got yesterday, a trio of downgrades and continued China softness for Nike, RH saying it's being weighed down by tariffs and bad weather.

Carl Quintanilla (2:46)

Let's begin with the markets on track to extend yesterday's rally as we get into Q2. The president just posted on Truth Social a few moments ago, quote, Iran's new regime president, much less radicalized and far more intelligent than his predecessors, has just asked the US for a ceasefire. We will consider when or moves straight is open, free and clear, Jim again will take this and market will try to digest it and process it as best it can.

Jim Cramer (3:12)

I think a lot of people think that this whole rally is based on short covering. People see nothing really important yesterday, the only thing important may have been the Marvell tie up. And you know, what does it matter anymore what Nvidia ties up? They give 2 billion, anybody walks in a room, this is all the rap I'm hearing David. The reality is that when you watch the oil stocks, they've been predicting that the war's over. And they've been the best predictor. And I think people want to look at different things, West Texas, whatever. But the oil stocks let us up and they're leading us down. And they are saying, it's not a short cover rally, it's the real deal.

David Faber (3:55)

Who am I to fight with the market, right?

Jim Cramer (3:57)

There you go.

David Faber (3:59)

I mean, it's very difficult to understand exactly what is happening. And so why not just take the signal and leave it at that?

Jim Cramer (4:05)

What you're saying, I wish people would do. Because the market is speaking very loudly, which is that the market is saying the president is going to end the war, and we don't want to be on the wrong side and belong a lot of Chevron, which was in 2013 when this started. And Carl, I don't want to outthink it either. I see lots of stocks that are going higher that shouldn't even be going higher. And what that says is that there is a genuine belief that unless you say something really horrible, your stock is going up. Now, I would say it's a new bull market if Nike were up. That's, I would say it's a boobble.