Stocks Stabilize Following Tech Rout, Boeing CEO on Recovery Plan 1/28/25

SPEAKER_1 (0:00)

For 140 years, MultiCare has been in Washington, prioritizing long-term solutions, partnering with local communities, and expanding access to care. Together, we're building a healthier future. Learn more at multicare.org.

SPEAKER_2 (0:16)

Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals, like business management, strategic planning and effective communication. And you can apply these skills right away. A different future is closer than you think. With Capella University.

Carl Quintanilla (0:47)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street. Good Tuesday 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. The Bulls are trying to assemble a day after that deep seek gut check and the NASDAQ's worst day in six weeks, but it is tentative so far as the market also wrestles with some fresh tariff warnings from the president and now Treasury Secretary Besant. A roadmap begins with the AI stock route. NVIDIA and other chip names look to rebound after that deep seek fueled sell-off.

David Faber (1:21)

Plus GM and Boeing are among the companies that have reported earnings this morning. We're going to be joined exclusively by the CEO of Boeing. That'll be in just a few minutes. The company is laying out its recovery plan, of course, following its largest annual loss since 2020 A new partnership to address one of the key concerns, at least it was until yesterday, surrounding the AI boom. And that's the rising demand for power and the drain, of course, on the electric grid. We're going to have the CEOs of Chevron and GE-Vernova. They're both going to join us exclusively in this hour.

Carl Quintanilla (1:56)

Let's get right to the markets, the day after the NASDAQ did drop by 3%, fueled by China's AI startup DeepSeq. Nvidia shares rebounding a bit this morning after wiping out almost 600 billion in market cap yesterday. Of course, that is the biggest one day market cap loss in US history, although the rotation, Jim, was to some areas of tech, too.

Jim Cramer (2:14)

Yes, indeed. And remember, the second worst was also Nvidia during the watch party period. The stock is up. What I would say is there will be heat seeking missiles coming after that stock up. And if you really want to buy it, wait till they send it down to three bucks because that's been the usual practice here. Look, it's no doubt about it that people just say they're the blast zone. I like Sembliss. I go to Sembliss The Law from JP Morgan. And he's saying, listen, before you just write this off, remember that there are real winners. There's winners and losers. And he's saying that Amazon's a winner. They benefit high quality. They can Amazon, Apple, Meta and some less understand Google winners. But Nvidia we point out is at David, one of the shoot first ask questions later. The PE based on forward earnings expectation declined toward the very low end of the range. And I was watching last night, a great video after CES with a chart. It's one of these on YouTube huge. And I just thought, you know what? We're now thinking, we went from thinking, it's great to thinking there's really no use to it. But I keep coming back to the next generation is about robots and it's about self driving. It's not about ChatGPT where it might hallucinate or not.

David Faber (3:32)

Right.

Jim Cramer (3:32)

Come on, let's get serious here.

David Faber (3:34)

Right. Well, I don't think that anybody is still I don't really think there's a great deal of questioning as to the long-term impact of AI, Jim. Right. What we had yesterday, of course, was a question as to whether or not there are going to be ways to do it more cheaply. That is going to require less compute and therefore less power perhaps. Right. Even though it was a broad sell off in some ways, it was very distinctive in terms of it was Nvidia, it was Broadcom, it was anybody really in the data center and or providing power to the data center. But the fact is Microsoft did not sell off that much. Alphabet did not sell off that much. Amazon.

Jim Cramer (4:15)

They're potential winners. Right.

David Faber (4:17)

Now, Alphabet, I don't know, maybe not as much.