Record Highs Roll On, Day 2 of Powell on the Hill, "Comeback Stocks" 7/10/24

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. Five record closes in a row for the S&P. Futures suggest the Bulls will take aim at a sixth with Powell Day 2 on the Hill. More deflation out of China. Two-year yield lowest since March. Our roadmap begins with the records rolling on. S&P and Nasdaq extend to new highs. Tesla targeting its 11th straight daily gain.

And Apple tops $3.5 trillion. Let's begin that with tech continuing to fuel the market's record run, Jim. Lots of target increases for Meta today, Apple, Amazon. We knew these first couple weeks of July would be good.

Jim Cramer (0:41)

Yes, the first 10 days, as you said, the best days. I get up early, just Taiwan Semi has always been very exciting to me because it is the key. It's a trillion dollar company, by the way, and it was everything we thought it was gonna be with 33% sales up. Remember, they were poor in a couple weeks, so this is not the definitive earnings. But what you can read through here is you can read through NVIDIA, you can read through AMD, and then of course the reverberations of all these, the Supermicro, we can talk about Micron. David, there's a moment where I was watching another show and I was a guest, I don't mean to criticize, I was saying, listen, until it broadens out, and I'm just saying, it broadened out from NVIDIA to Supermicro, what do you need? What do you need? I mean, does it have to, I mean, does WareHauser have to run here? Is that what we're waiting for? Are we waiting for WK. Kellogg?

Are we waiting for you to finish texting someone and answering me?

Sorry, that was a little aggressive in the first two minutes.

David Faber (1:37)

I don't know if this mic is working. Is this mic working? You can hear me.

All right, we're good, because at the top of the show, I got some texts that said my mic wasn't working.

Jim Cramer (1:45)

Oh, okay, well that is, so anyway, Carl, we are in a cold drink. No, David, you know what I feel like.

David Faber (1:50)

I know you're talking about the broadening out, the broadening out is not, I mean, you're kidding, if I wait for, if I wait for, Supermicro, I'm trying to book them, you kidding me?

Jim Cramer (1:58)

If I wait for broadening out, I'm going to, what, do I need Huntington Bank shares to go up before I pull a trigger?

Carl Quintanilla (2:07)

You did tweet a few moments ago about this downgrade at Kellogg, as, is it B of A goes to underperform?

Jim Cramer (2:13)

That is the paradigm of what's not working. They raise price, the cardboard box, of course, is worth more than the cornflakes, everything is inflated, and that is what you have to stay away from. So, the reason why I keep thinking that you have to own certain stocks that are talked about every day is because they are winners, and typically in a Fed-induced, almost recession, you would buy Kellogg, but a lot of these companies raise price, raise price, raise price, and frankly, I don't want them.

Carl Quintanilla (2:44)

That's why you've said to be wary of Pepsi ConAgra tomorrow.

Jim Cramer (2:47)

I'm very worried about Pepsi, because I do think it's GOP-1. No one will ever admit to GOP-1, and yet I watch our network, and there's nothing but ads from companies I've never heard of who've got GOP-1. They can get them because of an FDA exception, because you can't get enough Lilly products. So I don't want those stocks.

I just don't want a company. I mean, I think ConAgra is a great company, and they did a lot of frozen food, and the Gen Zs, they love frozen food. Frozen food is when it's that cold aisle, you know, you see it's cold, you open it up, and it goes, and then you try to open up the second one, and it won't work.

Well, I mean, they double down.

David Faber (3:22)

I have actually have been to the supermarket, yes, I experienced that.

Jim Cramer (3:25)

Okay, well, they double down on an aisle, which was great, but the aisle that you need to be in, David, is the data center aisle, which is why I like the Honeywell deal this morning.

Carl Quintanilla (3:36)

Buying the LNG business from Air Products.