Rolling a "7" for Tech, Boeing's $19B Capital Raise, Trump Rally and Musk's $2T Message 10/28/24

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 Monday 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 are very solid as we kick off the busiest week of earnings season. Big week of macro data with the jobs number and the election eight days away. Oil's on pace for its biggest loss of the year. Our roadmap begins with the big week for big tech. Alphabet, Meta, Microsoft, Amazon, Apple, among the earnings headliners. Nearly a third of the S&P is set to report.

David Faber (0:32)

Plus, Boeing shares are slightly in the red ahead of the open. A big effort there to shore up the company's finances. It launches a stock offering and a convertible offering could raise as much as 19 billion or even perhaps a bit more. McDonald shares also on the move this morning, bringing back its quarter pounder burger following, of course, that fast food chain's recent E coli outbreak.

Carl Quintanilla (0:55)

Let's begin with this busy week for the markets and the Nasdaq. Which is in the midst of a seven week win streak. Jim, and I know you're watching some of these Mag 7 names this morning.

Jim Cramer (1:04)

Yeah, look, they're just ramping and there's not, I mean, I found One Piece, which is a Rosenblatt, Pete, which actually just says that Alphabet is just going to do okay. Just like Meta models the Amazon, you can't model Amazon. That's the whole point of Amazon, you can't be model. But there's this drift up and I'm beginning to think that if you get, this is counterintuitive, boy. If rates go lower, then these go higher. And yet they're the least sensitive to rates because they have nation state-like balance sheets.

David Faber (1:37)

But meanwhile, I mean, rates, the tenure is higher than it was after the last meeting, correct?

Jim Cramer (1:44)

Well, yeah. Oh no, I'm talking about overnight. Overnight, because-

David Faber (1:48)

You're talking on the, wait, what?

Jim Cramer (1:50)

Overnight interest rates have gone lower.

David Faber (1:52)

Right, you're talking about the short end.

Jim Cramer (1:53)

So the idea that these are related to interest rates is kind of fatuous. These are the companies that actually go up when rates go higher.

David Faber (2:01)

So maybe they're just running up into our earnings.

Jim Cramer (2:03)

Well, no, but I'm saying we need to have some spur. They don't just like wake up, the algos just don't wake up and say, hmm, the commanders won, let's just go buy Metta. I mean, there is some sense to it.

David Faber (2:16)

Well, there's something they're looking at. Maybe it's related to oil prices. I don't know what these things are connected to. I mean, you've got literal rocket scientists who write all these different algos, but all the firms that run Wall Street basically.

Jim Cramer (2:27)

But they're like Boeing rocket scientists. They're not like Musk rocket scientists. Really, why? Because they can't shoot straight. I don't know. This stuff is wrong. I don't want these stocks to run. My child was our size. We have almost all of them. I don't want them to run because when Amazon ran last time, we found that there was weakness over the inner forecast because President Trump had been the attempt at assassination. Meta, yes, I expect them to have a very, very good quarter. Apple is going to have a horrible quarter.

I'm just like, hey, right now, they sold a couple of phones. It's all set up. See, I'm trying to do that low base thing that the really phony analysts do.

Carl Quintanilla (3:07)

You don't like names that run into the print hot. You never have.

Jim Cramer (3:10)

No, because then you get a Honeywell, which was just so horrible that I hate it. I'm thinking all weekend, how much I hate maybe is the setup Honeywell, the new executive Honeywell, but that ran up big. And then take a look what happened. It got pancaked. It got dennyed. Yeah.

Carl Quintanilla (3:25)

And today, Wolf downgrades, increasing.

Jim Cramer (3:28)

Oh, it's just an insult to injury.

Carl Quintanilla (3:30)

Increasing risk of negative EPS revisions.

Jim Cramer (3:32)

It's just terrible. It was just terrible. It was cowboy-like.

Carl Quintanilla (3:36)

So then what is your best theory for some of this Mag 7 strength?

Jim Cramer (3:40)

I just think that people in the end gravitate to what's works. There were enough corporate, there were enough industrials that kind of didn't do a great job last week. People gravitate back to these stocks. But look, other than Meta, I don't have the level of conviction of any of these.