The Streak Rolls On, Uber Misses, EV Makers' Demand Challenges 11/7/23

SPEAKER_1 (0:00)

What do you see on the horizon? Uncertainty or opportunity? Whatever you see, at PGM, we can help you rise to the challenges of today, providing outlooks on the market with deep global and local expertise.

With over 1,400 investment professionals in pursuit of long-term returns, our investments shape tomorrow, today. Pursue your tomorrow with PGM, a leading global asset manager.

David Faber (0:31)

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

Carl Quintanilla (0:36)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla, Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. The consolidation continues after last week's equity bounce. Futures mostly red, even with yields mostly lower.

Sevens fed speakers today and oil below 80 to a two-month low. Our roadmap begins with this rally pause.

S&P poised for a lower open after a six-day win streak.

David Faber (0:59)

Plus, DR. Horton delivers an earnings beat, the homebuilder, with an upbeat forecast. It is betting that housing demand will continue, despite, of course, what are those very high mortgage rates.

And, well, Fed expectations. What would a morning be without them? Austin Goolsbee telling CNBC, there is still a chance to get inflation down without causing a recession.

Carl Quintanilla (1:20)

Let's begin with the markets and this win streak that we've got going. Jim, interesting debate, actually. Taking shape between Kashkari and Goolsbee this morning.

Jim Cramer (1:28)

Yeah, look, I think that these guys are all kind of positioning themselves very much in the camp of, hey, if it gets better, if we start getting some, you know, continued weekend numbers, we're in good shape, but if we don't, all right, then maybe we have to do something in January. I keep coming back to the timeframe of where we are. We're in November. We're almost through earnings.

Earnings are, in retrospect, not as damning as we thought. Magnificent 7 can carry us through all of them up. And then, you know, I know this is a little too granular, but I see you, Neil Kashkari, and I raise you Datadog.

Because what happens is, at this point, when you have interest rates go down, people start salivating for these high multiple stocks. Datadog delivers a quarter, which then inspires Snowflake, which then inspires Twilio, which then inspires Oracle, which then will inspire Amazon, which then will move Meta, which then will allow Alphabet to go higher. And if anyone even for a second disputes this, go back to business school or law school, wherever you came from. Because that's what happens. David, we are in a market where there are just herd animals who want so much to buy enterprise software and then see enterprise software. I actually had, I had Databricks on last night.

David Faber (2:45)

Databricks, okay.

Jim Cramer (2:47)

David, $43 billion valuation last round, probably worth $70 billion. It is cloud with artificial intelligence where the lead investor is, yes, you're right, NVIDIA.

And I say to myself, okay, we're back. We're back to those companies again, like the companies that led us because we've had three good days in the bond market. People can't resist.

David Faber (3:08)

We also came off a reasonably decent earnings period too. Yes, but certainly for a number of those companies connected directly into that other than Alphabet.

Jim Cramer (3:18)

Right, Alphabet, I still think there are real questions about what happened with their cloud that were completely unanswered, totally unanswered. Like, why did they have a step down? And I'm gonna tell you the answer.

David Faber (3:30)

You're gonna tell us now?

Jim Cramer (3:31)

Yeah, Azure and Amazon Web Services took, I've been using your verbal, they pantsed them.

David Faber (3:38)

Well, I got that from you now.

Jim Cramer (3:39)

Well, things reverberate.

David Faber (3:42)

So you just think it was a battle for market share and they beat them.

Jim Cramer (3:45)

Yeah, sometimes it happens.

David Faber (3:48)

Sometimes the simplest explanation is the correct one.

Jim Cramer (3:51)

Yep, and that's what happened. But Alphabet's going up because people realize, despite what they seem to not know, is that YouTube is doing incredibly well.

David Faber (4:01)

Yeah, YouTube is a dominant platform.

Jim Cramer (4:02)

Right, and David, you know, Disney reports, why not bring up Disney immediately?

David Faber (4:05)

Sure, why not?

Jim Cramer (4:06)

Warner Brothers, these are companies that they should be looking back and just saying, Alphabet didn't even know how well YouTube's doing with the NFL. Can you imagine spending like billions and not even know?

David Faber (4:19)

Right, well, they didn't know.

Jim Cramer (4:21)

They were jammed.