Waiting for the Fed, Instacart's IPO Day and $9.9B Valuation, Disney's Double 9/19/23

SPEAKER_1 (0:00)

Who's up for Bora Bora?

SPEAKER_2 (0:03)

You know I want to, but I'd have to dip into my emergency fund, and you know how it goes.

Carl Quintanilla (0:08)

Come on, live a little.

SPEAKER_4 (0:10)

Self care is an emergency, so.

SPEAKER_2 (0:14)

Right.

SPEAKER_5 (0:16)

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Carl Quintanilla (0:31)

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 Tuesday 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 down small here as we brace for a very crowded news day. The Fed meeting begins, Instacart goes public, POTUS at the UN, the auto strike in day five, and corporate events at Intel, Disney and others.

Our roadmap begins with the Fed watch, though. The street betting the central bank will stay put on rates as it kicks off a two day policy meeting.

David Faber (1:04)

Plus oil is trading at 10 month highs, a hundred bucks perhaps in the cards.

And Instacart readying its Wall Street debut, pricing at 30, that's the first of five listings this week. And it is amongst the first of the tech unicorns the last few years to go public. That's almost two years in fact since we've seen one go public.

Carl Quintanilla (1:25)

Let's begin there with the markets and the Fed kicking off a two day policy meeting. Yield's got a little pop here, Jim, on Canada's CPI, re-accelerating for the second straight month.

Jim Cramer (1:34)

Yeah, what a bummer that Fed must find itself in. You get to these housing start numbers and we're just not building enough homes. So you default to what Lenar said last week. A lot of companies, a lot of brokerage houses has raised numbers, Lenar today, almost a reaction, but we just don't have enough homes. And we have this huge millennial bulge.

And there's just no doubt about it, they will not be deterred by these rates. That doesn't mean they won't be deterred by higher rates. But these rates, according to Stuart Miller, who's, I think, the dean of the group and the executive chairman of Lenar, aren't deterring anybody. So you have fewer homes.

You have the one thing that is up 40% since 2019, not in the CPI, because only rents from the CPI. Rents could come down. There's been overbuilding of apartments. But David, I got to tell you, if you're J-PAL, I don't think you're, I think you're ready to talk real tough, even if you don't raise rents.

David Faber (2:34)

Well, he'll keep talking tough, right? Well, he should keep saying 2% is the focus, 2% is where we're going to. We're going away from the dead. I do wonder, we don't talk as often about QT, but it continues at a fairly significant rate. I mean, we were taught what was a 9 trillion going to as low, we could go as low as what, 6, is that the?

Jim Cramer (2:53)

Yeah, look, it's.

David Faber (2:54)

And I do wonder about the impact over time there. Some would say it's worth as much as 25 to 30 basis points in tightening.

Jim Cramer (3:00)

Good point.

David Faber (3:04)

And on asset prices as well. And, you know, it's sort of 9 to 8, maybe doesn't have the same impact that once we get to 7 to 6 will.

Jim Cramer (3:12)

Where's it go?

David Faber (3:12)

For obvious reasons.

Jim Cramer (3:13)

Well, I mean, we used to think that you would look at these worldwide fund rates and you would say, wow, the money must be coming here at a 4.6 on the 20 year.

But the money seems more immobile than I thought. It just kind of stays where it is. But in the meantime, oil just goes higher. I mean, Carl, if you get embedded, if you get what Stuart Miller said, which is that the consensus among people in the country is that housing prices are going up, so you have to buy now. That's precisely the opposite of what Powell wants. Powell doesn't want any expectations of inflation, but we do have expectations. We have it at the supermarket, too. The prices at the supermarket are extraordinary. We're going to be talking about Instacart.

But look, I mean, not that I, you know, I don't want to be too anecdotal here. But if you go and you buy rice, a staple of this country, it's doubled.