Stocks’ “Drive for Five,” Pfizer and Activism, Musk from the Robotaxi to Trump 10/7/24

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. Coming off an all-time high weekly close for the S&P, futures are mostly red here as we set the table for Q3 earnings beginning this week. Two's 10's re-invert as the market re-thinks Fed cuts after that jobs number. A roadmap begins with stocks. Goldman upping its target for the third time this year. And treasury yields do top 4% for the first time since August.

David Faber (0:34)

Plus oil prices are rising again as Middle East tensions continue to weigh heavily on that market. And Pfizer shares, they're rallying ahead of the open. Activist Starboard Value taking a roughly billion dollar stake in the drug maker. We'll have more on that.

Carl Quintanilla (0:50)

Let's begin with the markets though as we watch yields here. Jim, a couple calls over the weekend for maybe no more Fed cuts this year.

Jim Cramer (0:58)

Yeah, I mean, I was reading Ed Yardeni. I always love him and he's talking about, look, may not need it, but what is very interesting is it may not need it because we don't have a crisis. And Ed has been true north the whole way. Carl, I've got to tell you, oil with the maging move up and we had some good stuff this morning on Squawk Box talking about, you know, if it gets wider. And also on Frank's show, there was just a lot of good commentary. Good company means thoughtful. And so I understand that people could be worried about interest rates. But David, when you have a rate cut cycle, it doesn't stop after one. It just never does.

David Faber (1:33)

Right.

Jim Cramer (1:33)

It just extended. And the more extended this is, probably the better for the market.

David Faber (1:38)

You mean the longer period of time it goes on as opposed to it happening in a fairly shorter time frame? Yeah. Why is that?

Jim Cramer (1:45)

Well, because it means one, there's no crisis. And two, anytime you have the, you're not fighting the Fed, it's a house in time. So the number of downgrades today, I found actually somewhere in the urges. I saw so many. And, you know, I don't think you can get in, get out and in of Apple, get out and in Amazon. I mean, the market doesn't want you.

David Faber (2:05)

You cite both of those for a reason because there were two downgrades of both, one of each of those names. I think it was Jeffries and then Wells Fargo on Apple. Jeffries on, I think it was on Amazon or maybe I have them reversed. But let me let me check.

Jim Cramer (2:17)

But yeah, they both got both got Jeffries had Apple and it was quite a blow. But here, let's use the same analysis for the Jeffries. I just think you have an extended Apple scenario here. So you do okay this quarter, the next quarter better. So how do you get out and get back in? Is anybody really that good, David?

David Faber (2:36)

Anybody? You've typically said don't trade it, just own it when it comes to Apple. So you're, I guess I'll answer for you. No, fewer are good enough to do that.

Jim Cramer (2:46)

Thank you. That's really my feeling. I'm not trying to be, you know, well, Carl, I'm not trying to be vindictive. I'm just saying for most of the people at home, these calls are just too hard. Unless they're like algorithm traders or guys with, you know, huge amount of money at stake, just chill, chill on these.

Carl Quintanilla (3:05)

It's a great point, Jim. A lot of people making the point that given all the things we've had to worry about this year, wars, elections, inflation, the Fed, we're up 34% over 12 months.

Jim Cramer (3:16)

Yeah, that's really the story. And it comes a lot from, I mean, just a rotation of good. I mean, last week, Cosimo was talking about, I love them, he was on MidCap today, he says, listen, large cap, and it's Dave from Goldman. And I kind of agree with that. But look at Amazon. So Amazon, I don't want to get too micro, but Amazon reports a quarter that was allegedly bad, right? And the stock goes from, you know, just pure, 186 down to 161 pirouette. And then the next thing you know, it's right back. And, you know, what are you supposed to do? Did you get out and then get back in? No one's that good.