Stocks Slump on Strong Jobs Report, “Fedspeak” and Rate Hikes, the Future for Meta's "Threads" 7/6/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Carl Quintanilla (0:31)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. David Faber as the morning off. Pre-market is stumbling here as the job market data comes in extremely hot. ADP doubles expectations and yields are crossing some important lines. 10 year above 4, first time since March 2 year, a fresh 16 year high. A road map is going to begin with that macro outlook. ADP shatters expectations, futures falling on the news. The treasury secretary begins her China visit landing in Beijing early today, looking to calm some tensions and Meta, as you know, officially launching threads, millions join, but will it prove to be a Twitter killer?

Let's begin though with the markets here, Jim. You tweeted this morning that you didn't like the feel.

Jim Cramer (1:24)

Now, what does this data do? Well, the data is just really bad. I mean, if ADP is right, which is that almost a half million people got jobs. Now, there's been some geographic areas that aren't so strong. South, surprisingly, wasn't as strong, but I don't think anyone's set up yet, particularly if they trade treasuries for what remains a boom.

I mean, I've been saying it's not a hard landing, not a soft landing. It's a takeoff.

This is a takeoff. Now, no one expects that. It's not supposed to happen. There's a couple of recommendations that I told brothers in Pulte. And typically, like the new thing, I'm going to savage these people tonight. Not savage, I'm going to say that perhaps they're ill-advised. Are these people who have price targets for homebuilders, and the price target is like 40 points away, and they raise them by seven. They have to do that every day from now until you come.

So there is just $497 versus $220. There are very few people who are that off.

Carl Quintanilla (2:22)

ADP is a remarkable print. Now, granted, they've had issues with their model in the past, but a lot of it is leisure hospitality. That's 200K right there.

Jim Cramer (2:30)

There's no end to the long on money, short on time. Now, Paychex did say yesterday that they're seeing a moderation, and that's small to medium-sized business, and they are actually more concerned.

Because rates up has meant that people aren't being as adventurous, not go out there and try to come up with a new business.

Carl Quintanilla (2:53)

And maybe one thing, if it was just ADP this morning, but challenger layoffs month on month get cut in half, lowest since October. Claims, what, two-week high. I mean, but it all directionally says the same thing.

Jim Cramer (3:05)

Right, someone was trying to make a case that the more users being down four matters. No, that's ridiculous. I mean, there's just not enough homes.

The reason why that would be that's not the rates. It's just not enough homes to buy.

So, I mean, we got a nice strong economy here. It's not what they want to see, but it's strong. I think it's a shame that it's strong for the big companies and not the small medium size. But travel leisure, we're going to be back to 2019 But we have to be well in excess of 2019 because we travel now and we go places.

We were sedentary. And by the way, the people who work from home on Friday take three day trips to Iceland for all I know. I mean, honestly, I mean, I love people who work from home because that means you don't have to work and that's a sensation thing. I have to come to work so I can't hide. I can't come to work and not work.

Carl Quintanilla (3:59)

When you start doing the show from home on Fridays, we'll learn.

Jim Cramer (4:02)

I have a studio that's set up in my basement. I want to throw a grenade in there. What is the point of working from home? See, work means going to work. Now, I know this is old-fashioned and dates from my first job in 1977 But had I gone in to the Tallahassee Democrats and said, you know what, guys, Friday is out, they would have said, Cramer, you're out.