Trade Tensions Effect, Meta's AI Power Play, Retail Earnings Rally 6/3/25

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Carl Quintanilla (0:59)

Market Moving Insight and Analysis joined 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 at post night of the New York Stock Exchange. David Faber has the morning off. Futures are off the morning lows, but still red, not getting a lot of help from lower yields as the OECD again. And Slash is its forecast for US economic growth. We'll get jolts at 10 a.m. Eastern time. Our roadmap begins with trade tensions. The White House reportedly pushing countries to provide their best offers by tomorrow. A lot of news on AI today. A new note from Morgan Stanley's Adam Jonas. This Meta power deal with Constellation Energy. Plus, why OpenAI Sam Altman predicts that AI agents will help discover new knowledge as early as 2026

Meantime, stocks are headed for a lower open on continued global trade tensions, Jim. We are waiting for some possible meetings in Paris tomorrow. Waiting for clarity on a potential call between the president and she.

Jim Cramer (1:58)

The president needs a deal. I know that the secretary of commerce, Lutnick, talked about any deal. Any deal at this point would be regarded as being incredibly positive and get some momentum going. I think that Europe, which is really familiar with the US judicial system, might just be saying let's wait it out. This China negotiator ready to play a horrible.

Carl Quintanilla (2:18)

Yes, the new one.

Jim Cramer (2:20)

I mean, he's deal no deal. I don't think he feels that we need a deal. Now, I think that they're playing with fire. I think there's a piece today by Rusty Brazil, who is my RBN, which is just the best when it comes to energy. Butane, ethane. We're going to embargo them. It's pretty close to doing that right now. Now, what people don't realize is that they do not have, the Chinese do not have butane and ethane. That comes from us. Yes, on May 29, the US Bureau of Industry and Security said to Enterprise Partners, which is a fantastic company, hey, look, slow walking. We're sole supplier and they're saying, you know what, maybe we don't give it to the Chinese as fast as we can.

Carl Quintanilla (3:17)

So we withhold some energy to them. They withhold some magnets to us. That doesn't sound market friendly.

Jim Cramer (3:23)

Well, I mean, I've got to tell you that people have been saying over and over again, we're the biggest of natural gas liquids. We're just number one. What do you do if you don't have any butane and ethane? What if you have no ethane and you need that to make plastic? What is China, what are some of the junk that they make? It's heavy blasting.

We still have Dollar General, we have a good quarter. But I think people are missing the point. They don't realize that we are not helpless. And I think if we're slow walking these licenses, it is to this gentleman in China, we have some cards. I mean, right now people think we don't have any cards. We have cards and the cards we have, we have natural gas liquids in NATO. We're sole supplier.

Carl Quintanilla (4:04)

Jim's referring to this piece in the Journal. It's a profile of the Chinese trade negotiator. It's a new one. Some comments from Chinese sources arguing that the old one was too nice.

Jim Cramer (4:14)

Yeah.

Carl Quintanilla (4:14)

And this one's more willing to play hardball.

Jim Cramer (4:16)

Well, look, if they tweeted, if they had social, I think what they would say is, no more Mr. Nice Guy.