Tariffs and the Sell-Off, Chips Not So Marvell-ous, DOGE Effect: Layoffs Surge 03/06/25

SPEAKER_1 (0:00)

This is a message from sponsor Intuit TurboTax. Taxes was getting frustrated by your forms. Now Taxes is uploading your forms with a snap, and a TurboTax expert will do your taxes for you. One who's backed by the latest tech, which cross-checks millions of data points for absolute accuracy, all of which makes it easy for you to get the most money back guaranteed. Get an expert now on turbotax.com, only available with TurboTax Live full service. See guarantee details at turbotax.com/guarantees.

SPEAKER_2 (0:31)

Are you still quoting 30-year-old movies? Have you said cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back. Welcome to the now. It pays to Discover. Learn more at discover.com/creditcardbased on the February 2024 Nelson Report.

David Faber (0:59)

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

Carl Quintanilla (1:10)

And we're back. 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 a bit soft as these economic worries seep further into retail earnings like Macy's and the Challenger layoff data, a number we don't watch a lot, but it is the highest figure since July of 2020 Two-year yields dropped to 396 this morning. A robot begins with tariffs and this sell-off. Wall Street and corporate leaders are now digesting all the news that's coming out of the White House.

David Faber (1:40)

Plus, the Doge effect on the larger market. Carl just mentioned it. Challenger, Gray and Christmas, as US employers announced the largest number of monthly layoffs since 2020, with one-third attributed to Elon Musk's efforts to slash the federal workforce. And the AI trade is also in the spotlight. Marvell's down sharply. That's weighing on the chip sector, despite posting quarterly results above what will release the consensus of analysts.

Carl Quintanilla (2:05)

Let's get right to the markets. Back in sell-off mode after the rally yesterday, Jim, we've got claims, we've got productivity, the trade deficit, and we haven't even talked about Marvell yet.

Jim Cramer (2:15)

Right. And remember, there's weather. I think weather is really important. It was cold or snowy or rainy in all these months that we've had. And so therefore, the forecast for that, there's a saying among the tough guys, and they happen to do with the history of Frank Slootman, who was the guy who took service now where it went to. He was also a guy who took Snowflake, which is doing well where it went to. And I once argued with him, because the forecast was downbeat. And he said, Jim, the forecast is the forecast. That's what Marvell did last night. Forecast is the forecast. And David, people are taking these forecasts as gospel. They're saying everything's slowing down. The only forecast raised today, do you know what it is? I'm gonna give you a hint. You can get pie with cheese and vanilla ice cream on top. And it's damn great. When I was 210 pounds, I feasted on the answer is Cracker Barrel.

David Faber (3:10)

Cracker Barrel, I see.

Jim Cramer (3:11)

It's the only one with the guide up today. Only one.

David Faber (3:13)

Well, Burlington stores wasn't bad.

Jim Cramer (3:16)

Oh yeah, that's pipe rack close. I'm talking about just of the companies I look at that were startling. Burlington never misses. It's an amazing company.

David Faber (3:26)

We're looking at Marvell, which is getting slammed. What?

Jim Cramer (3:30)

I thought that was great stuff.

David Faber (3:32)

That was good. I'm just moving on from ice cream.

Jim Cramer (3:34)

I have a line from Marvell that dropped.

David Faber (3:36)

Tell me. Read it to me.

Jim Cramer (3:38)

So, Matt Murphy, who is so great, I've had him on multiple times. He basically is saying, how am I getting hit here? Because he sees the stock going down and he goes, all right, there were some AI assumptions that were made. And what he really was saying was, okay, imagine a world where the sequential growth is not enough. You've got 25% growth Q2 to Q3. You have 25% Q3 to Q4 and you have double-digit growth Q4 to Q1. The forecast is the forecast. He says, listen, I'm not going to do 20 I'll do better than 10 People reacted as if it was the end of the world. And this stock is now selling, instead of 48 times earnings, it's selling at 24 times earnings.