The Big Tech Rebalance, Amazon Kicks off Prime Day, PGA Tour-LIV Golf Hearing 7/11/23

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David Faber (0:31)

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

Carl Quintanilla (0:37)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber, Post 9 of the New York Stock Exchange. Coming off that decent finish to Monday's trade, now some more whispers about a soft CPI tomorrow. Futures are solid, 10-year back below $4 at a two-month low. A road map this morning begins with a turbulence around Big Tech amid this rebalance in the Nasdaq 100 We'll talk about some winners and losers there. Amazon kicking off Prime Day. What's at stake for the company and what does the street say about the stock?

And the Senate holding a hearing on the PGA Live Golf merger just a day after former AT&T CEO Randall Stephenson resigned from the PGA Tour board over that deal.

Let's begin, though, with Big Tech a day after the Nasdaq said it would rebalance the NDX to address the benchmark's over concentration. Jim, today, Wells has some names that might benefit from some of this, Starbucks among them.

Jim Cramer (1:28)

Yeah, you know, look, I looked at that and I said, look, I actually like this because if you're going to take these things down from 55 percent, there are going to be some winners and Starbucks was a natural and that was up three yesterday. A lot of people felt that was up three because there's some positive news about the possibility of still one more Chinese, I don't know, infrastructure play. But I also know that I just it was like everyone was laying in wait for for Amazon.

They should not have now. Now we have prime and then you go on prime. I'll tell you what's David. You know, it's really the matter with prime coming. What you go to prime and it's a I swear to God, they like hell. How do we change everything that I've been thinking about and talking about? There it is for like half of what I thought. So, I mean, these notes about Amazon, which talks about how good things are going, including Amazon Web Services, I say, all right, the way to play this rebalancing is to go by Amazon.

Did you look?

David Faber (2:25)

Did I look at what?

Jim Cramer (2:26)

The Prime Day.

David Faber (2:28)

Oh, no.

Carl Quintanilla (2:29)

Some of the offers?

David Faber (2:29)

No, I haven't looked.

I don't need more stuff. You see, when I used to go to school, my life's allegiance to the flag.

Carl Quintanilla (2:36)

You have enough.

David Faber (2:37)

I got enough and like, you know, it's just too, it's enough.

Jim Cramer (2:41)

It's enough.

David Faber (2:42)

I want to cut back.

Jim Cramer (2:43)

Well, do you don't buy coffee or anything on Amazon?

David Faber (2:46)

Well, no, I mean, I buy coffee. Actually, I don't buy the coffee, but I don't buy it on Amazon. No.

Jim Cramer (2:53)

Okay. Well, all right. Well, let's just go back to this.

David Faber (2:55)

I wasn't talking about coffee.

Jim Cramer (2:57)

But there's a big thesis that's bubbling up that we had the decline in Amazon Web Services. Down, down, down, down, down. And the issue was, was 10 percent where we go down from 35 to 10

We are now getting these stories which says it hit eight and now it's back to 10

David Faber (3:12)

We're talking Amazon Web Services here. Which I would also point out interesting today, and the journal cites this as well, you know, Amazon designs its own chips, its own AI chips, which apparently are not just helping to fuel AWS and the computations that its clients may want, but also being sold to third parties is what they indicated in that story.

Jim Cramer (3:33)

Well, look, if you're doing that, you're up against 500 It goes to 550 key NVIDIA. I don't know if I want to be against the target or not. There's NVIDIA.

Carl Quintanilla (3:44)

You're talking about the key target. They go to 550 and Goldman goes to 495

Jim Cramer (3:48)

Yeah, well, you know, I was reading, I mean, one of the things about NVIDIA, I'm talking about the same show, is that you'll get some article about a blog, and I don't want to be too deviant here, but it's one of the stocks that obviously has to be cut back. And there's a blog and it says that right now, NVIDIA has a chip that goes 45,000 times faster than any chip when it comes to weather, and it can pinpoint which day is going to be the warmest day ever in Central West Africa.