Surprise PPI, Musk on Pay Vote, Broadcom Soars and Sets 10-for-1 Stock Split 6/13/24

Carl Quintanilla (0:00)

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 Thursday 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 mixed, but off the early lows, as we did get this surprise drop in producer prices, down two tenths. Also jobless claims spiked to the highest level since August.

10 year drops to four and a quarter. That's the lowest since April 1 Our roadmap begins with inflation and Fed expectations, holding rates steady, projecting just one cut this year. And now this surprise on wholesale prices.

David Faber (0:34)

Plus, of course, we are monitoring the big vote on Elon Musk's pay package. He claims shareholders voted in favor of that, what would be around $46 billion right now pay package.

And Broadcom's big beat, the tech giant's surging, double digits in the pre-market. You just heard Frank Holland talking about it. Also announces that 10 for one stock split.

Carl Quintanilla (0:55)

Let's begin with this market reaction to the tamer than expected PPI number, Jim. That's with claims and CPI, three dovish prints in a couple of days.

Jim Cramer (1:03)

We're gonna hear a lot about mortgage rates coming down and what it will mean. I think it's actually difficult to figure out because there's just such demand for housing, doesn't matter what.

But obviously mortgage is a wee more abundant. Now, what I'm focused on is what I think that Powell is really saying. And this is the timorous rap. You know, it's not, yeah, sure we got surprised by the CPI, but that doesn't mean anything. We have to get surprised repeatedly. But I also think that there's another thing going on. I think Powell is acutely sensitive that America is, once everything rolled back to a 2019, 2020, they're not trying to get rolled back to 2022

Now, that's hard. I mean, even Walmart would tell you, listen, we can't get it rolled back that far. There's so many issues in this economy to make it so people still feel like that inflation is not beaten. It's not going to be one month, David. It's not one month, maybe one year before you really feel like inflation's beaten.

David Faber (1:54)

All right, but do you have to wait?

Jim Cramer (1:56)

No, but I don't like any of these things, which is, well, now it's going to be September, because every one of these has been wrong. At a certain point, I just say, you know what, these are wrong constantly, so I'm not going to buy.

How many times in life are we willing to be wrong and say, I mean, I remember the Eagles. We went one for six, okay, in the last. Every single one, we said, you know what, we're going to win, we're going to win, we're going to win. By the third one, I'm like, will you give me a break? I mean, how could, but in this, we allow people to be wrong constantly, and we still take them seriously. Nope, no, no Musk, no Musk.

Carl Quintanilla (2:27)

Since the pandemic, you're right, inflation is up 21%. Wages, Jim, are up 22%.

Jim Cramer (2:32)

Right.

Carl Quintanilla (2:33)

We're going to roll back wages too?

Jim Cramer (2:34)

Well, no, because the minimum wage snuck up, and I don't think we'll do that, but I do think that, look, America's, we're in an election this year.

Everyone keeps talking about inflation being the reason. We may act as if inflation doesn't feel big, but that's because, I'm going to say it, because we make a lot of money.

David Faber (2:54)

It's big for yourself there.

Jim Cramer (2:55)

Well, I knew you'd make light of that. What I'm saying is that we are two countries, and if you don't think we're two countries, then you really just haven't studied your Marxian thesis lately.

David Faber (3:05)

Well, yeah, not in the last couple of days.

Jim Cramer (3:07)

6% of the people make more than 100,000, which means that 94%...

David Faber (3:11)

There is no doubt.

Jim Cramer (3:12)

We're a 60% paycheck to paycheck.

David Faber (3:14)

Of course, there is no doubt that there is a broad... These people feel crushed. Right, and we've talked about that. We mentioned it yesterday, obviously, with that very strong number that sent the markets higher. I should say good number for the markets with CPI, but we talked about the fact that when you look back in 2019 and how much prices are up for the basics, but you pointed to a list of things that are all down. They're all the things you buy in a supermarket.