S&P Record Watch, AI Arms Race, Roaring Kitty Claws Back 5/13/24

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 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. Pre-market steady as we brace for a week that has something for everyone. Inflation data, CPI Wednesday, retail earnings, Google IO. Conference.

S&P is less than 1% from a record high. That's where our roadmap begins. Stocks look to build on this rally. Dow is coming off the best week of the year.

And as we said, S&P awfully close to some fresh records.

David Faber (0:29)

Plus, the AI arms race continues as a new report reveals British chip maker Arm Holdings is planning on launching AI chips next year. And remember this name? GameStop. It shares a surging in the pre-market after famed meme stock trader Roaring Kitty posted online for the first time in roughly three years.

Busy day, I guess, huh?

Carl Quintanilla (0:57)

Let's begin with the market set up. As we said, Dow is riding an eight day wind streak. Jim, a story in the journal today. Investors crowd into soft landing trade ahead of crucial inflation data.

Jim Cramer (1:08)

Well, okay, that makes it sound like if the data's bad, they'll crowd out.

I've been watching the stocks have been going up. Dave Costner with a very good piece today about it's not the ones that are unprofitable that are going up, they're actually going down. What's going up are the profitable companies and I think that we keep seeing that. But Dave, David, I do think that if GameStop is the leader today, that would signify perhaps a speculative peak and I didn't know that we were in a speculative hike.

David Faber (1:35)

Yeah, I'm not sure that we should draw too many conclusions from what may happen at GameStop, though it's kind of interesting and fun to look back at an old name that we talked a great deal about a number of years back.

Jim Cramer (1:48)

Well, I went to the pin, you know, when you go to Twitter, you get the pin piece and had the old piece there about 100% short and so I'm listening, I'm saying, wow, this sounds like a great situation and I realized it was what got it going the first time.

David Faber (2:01)

That's amazing that he can come roaring back like that.

Jim Cramer (2:04)

Well, David, if you post a picture of, let's say, a couple of Lazy Boy recliners.

David Faber (2:09)

I know.

Jim Cramer (2:09)

And Paramount, that thing goes to 22

David Faber (2:13)

Oh boy, Paramount, yeah. That's its own saga, isn't it?

It is.

Jim Cramer (2:18)

There it is, look at that.

David Faber (2:19)

Diamond hands.

Jim Cramer (2:21)

That is, is that buy to strong buy?

David Faber (2:24)

I don't know.

Jim Cramer (2:25)

I think that's what takes it higher.

Carl Quintanilla (2:27)

US one list.

Jim Cramer (2:28)

I mean, I'm looking at all this research and they all probably say, we're spending millions on this. All we have to do is put a chair up?

Carl Quintanilla (2:36)

Meantime, Jim, there is a bit of a nice game over the weekend looking at CPI coming our way midweek. Stiefel, next 500 points are down.

Jim Cramer (2:45)

You know, I have that note in front of me and mid-quarter correction, too many. They talk about sustained PCE inflation, the Fed seeks. They call it a pipe dream. A pipe dream. And meantime, I go over David's sections of the economy after section of the economy and everything's down a little bit.

And that does not say to me, pipe dream. It just says to me, steady as she goes.

Pipe dream implies that it's never gonna happen.

David Faber (3:16)

Yeah, that it's unlikely.

Jim Cramer (3:18)

I think that's a pipe dream. That's a pipe dream, that piece. I'm pipe dreaming that pipe dream piece.

David Faber (3:24)

We have been talking for weeks now about brown shoots, about signs in the economy of a weakening consumer in particular, mid to lower end, but even some signs above that.

Not as much in experiences. We've talked about it so often, but reflected in any number of earnings that we saw. Although, again, not all across the board, Jim.

Jim Cramer (3:48)

Right.

David Faber (3:48)

And so, I don't know what we get this week that sort of can help confirm or deny.

Jim Cramer (3:53)

I was doing a piece for the Investment Club and one of the things I saw that was daunting. I was looking at AutoNation and CarMax, then of course reading about the home builders. There's not enough used cars out there and there are not enough used homes out there.