Record Highs for Stocks, China's $1.4T Stimulus Effect, Musk's Post-Election Windfall 11/08/24

Jim Cramer (0:00)

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 (0:07)

Good Friday 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. Futures, wrapping up an historic week and a prior day session that almost got us to S&P 6K. Nvidia and Sherwin-Williams joined the Dow this morning. China stimulus underwhelms again. Our roadmap begins with the big week for investors. Dow S&P eyeing their best week in a year. The Fed cuts again. The chair stands defiant in the face of possible pressure from Trump.

David Faber (0:34)

Plus, China unveils a new $1.4 trillion stimulus package. It is designed to help shore up its economy, particularly at the local level, but it may be short of many expectations. And Nvidia becomes the first company ever to hit a market cap of $3.6 trillion, closing at a record high, officially joining the Dow as well, along with Sherwin Williams this morning.

Carl Quintanilla (0:59)

Let's begin with this post-election rally in the China stimulus, Jim. $1.4 trillion in a debt swap. People are calling it more stabilization than stimulus.

Jim Cramer (1:08)

I think that's right. I think that one of the things we keep thinking is that you're gonna wake up one day and they will do something nuclear to get this thing going. And it's just not gonna be that. They'll keep doing things until it does go.

So those who are playing this game, you probably want to buy Alibaba because it's down, betting that there will be still one more. They'll keep stimulus going, Carl, until they win. And they have a command economy. And I think we keep thinking that, well, it's one and done. Now, David, they're in too much trouble to do one and done. You know that.

David Faber (1:43)

Yeah, but they're not doing what many had, I think, hoped when there was the initial pronouncements.

Jim Cramer (1:50)

Yes, you're right.

David Faber (1:50)

And, you know, you've referenced Tepper, of course, who was on our air that day.

Jim Cramer (1:54)

And then we saw that huge rally. Well, I'm familiar with this position.

David Faber (1:56)

But since then.

Jim Cramer (1:57)

No, I mean, since then there has... He's over in Munich, by the way.

Carl Quintanilla (2:00)

Oh, nice.

David Faber (2:01)

Nice.

Carl Quintanilla (2:01)

Getting ready for the Giants or what?

Jim Cramer (2:03)

Yeah, that's pretty interesting.

David Faber (2:04)

Since then, there hasn't been as much as might have been hoped based on the language, at least at the time. Now, this is designed to basically swap government bonds for some local debt and reducing the debt load, making it a lot easier and more transparent, clearer, and helping the balance sheets to some of these municipalities, which have gotten overloaded with debt that they took on to help their own economies when they were able to sell land to meet the interest cost for that debt. That has stopped. But in terms of getting money into the Chinese consumer's hands, they have not done that. We haven't done that yet. And I would reference Richemont today. And the luxury is going to be down again on this. And it's largely because apparently, at least from a couple of notes, I'm seeing the specialist watchmakers division at Richemont, and notably, of course, weakness in the greater China market.

Jim Cramer (2:59)

Well, look, Richemont was a way to be able to show you were wealthy since you're not allowed to show big house, to show big watch. And we see over and over again, Carl, all of the specialties, everything that costs a lot of money that the Chinese were using to show off, that's no longer flies. And I think they're not even, look, what happened to Estee Lauder? Estee Lauder was the, I'm going to use this because it's a big hack phrase, I like it, canary in the coal mine. That was the one that told you, well, you know what, the $30 Mac, they're not going for that. And if you look at Estee Lauder, the evisceration of a great company, where it finally cut its dividend, that may be where these companies go. I mean, I don't feel like anyone's going to get bailed out by the government.

Carl Quintanilla (3:42)

Interesting debate about US-China trade. On the one hand, they don't have a consumer economy, so they need to protect their exports, right? They are going to have to make up for those tariffs if they come. On the other hand, we also rely quite a bit on Chinese goods until we can make a lot of stuff on our own. So who's first to get self-reliant?